Blackstone Mortgage Trust Reports Q2 2025 Financial Results with $6.9M Net Income

Blackstone Mortgage Trust, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $6.9 million, or $0.04 per share, compared to a net loss of $61.1 million in the same period last year. The company’s total revenues for the quarter reached $133.9 million, a slight increase from $126.8 million in the previous quarter, driven by a rise in interest income from loans and other investments, which amounted to $359.5 million. However, this figure represents a decline from $466.2 million in the prior year, primarily due to a decrease in the weighted-average principal balance of the loan portfolio.

The company’s total assets increased to $20.6 billion as of June 30, 2025, up from $19.8 billion at the end of 2024. This growth was largely attributed to an increase in loans receivable, which rose to $19.7 billion from $19.0 billion. The current expected credit loss (CECL) reserve stood at $740.9 million, reflecting a modest increase from $733.9 million at the end of 2024. The company noted that the increase in CECL reserves was primarily due to impairments on two loans, one secured by a life sciences property and the other by an office asset, highlighting ongoing challenges in the office sector.

In terms of operational developments, Blackstone Mortgage Trust has been active in expanding its portfolio, originating or acquiring $2.6 billion in loans during the quarter. The company also reported a significant increase in revenue from real estate owned (REO), totaling $38.8 million, attributed to the acquisition of additional REO assets. The firm’s total equity decreased to $3.6 billion from $3.8 billion, influenced by share repurchases totaling $31.6 million during the first half of 2025.

Looking ahead, Blackstone Mortgage Trust remains focused on maintaining its position in the commercial real estate finance market, leveraging its relationship with Blackstone Inc. to navigate market conditions. The company anticipates that continued low supply in the real estate market and potential improvements in macroeconomic conditions could support a recovery in commercial real estate values. However, it also acknowledged the risks associated with market volatility and the performance of its loan portfolio, particularly in the office sector. The firm plans to continue monitoring its portfolio closely and adjusting its strategies as necessary to mitigate risks and capitalize on opportunities.