Blackstone Mortgage Trust (NYSE:BXMT – Get Free Report) issued its quarterly earnings data on Thursday. The real estate investment trust reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.14, FiscalAI reports. The firm had revenue of $141.90 million for the quarter, compared to the consensus estimate of $148.60 million. Blackstone Mortgage Trust had a net margin of 1.57% and a return on equity of 7.72%.
Here are the key takeaways from Blackstone Mortgage Trust’s conference call:
- Book value fell 12% to $17.06 per share, driven primarily by $1.59 per share of higher CECL reserves, impairments to owned real estate, and valuation adjustments on loans held for sale. The company reported a GAAP loss of $1.95 per share.
- Management reduced the quarterly dividend from $0.47 to $0.30 per share, citing expected earnings pressure from portfolio runoff, impaired loans, and lower-yielding owned real estate, although it expects to cover the new dividend through 2027.
- BXMT sold nearly $1 billion of loans at an average price of approximately $0.93 on the dollar and collected $2.3 billion of repayments, reducing its watchlist by nearly 60% to the lowest level since 2019. Management believes most legacy office-related credit deterioration is now reflected in book value.
- The company reported $1.3 billion of liquidity, with 89% of debt represented by non-mark-to-market borrowings and no corporate debt maturities after largely pre-funding its 2027 obligations until 2029. It also has $110 million of remaining share-repurchase authorization and bought back $36 million of stock during the quarter.
- BXMT is increasing portfolio diversification, with post-2023 loans and newer net lease, bank loan, and homebuilder finance strategies representing a larger share of investments. These newer strategies now comprise nearly 10% of the portfolio, while average investment size has declined to $18 million from more than $130 million several years ago.
Blackstone Mortgage Trust Trading Up 2.9%
Shares of Blackstone Mortgage Trust stock traded up $0.30 on Thursday, reaching $10.86. 6,123,459 shares of the company were exchanged, compared to its average volume of 1,919,812. Blackstone Mortgage Trust has a fifty-two week low of $10.11 and a fifty-two week high of $20.67. The firm has a market capitalization of $1.83 billion, a price-to-earnings ratio of 120.71, a price-to-earnings-growth ratio of 0.25 and a beta of 0.92. The stock has a fifty day moving average price of $12.38 and a 200-day moving average price of $16.79.
Blackstone Mortgage Trust Announces Dividend
The business also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were given a dividend of $0.47 per share. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 17.3%. Blackstone Mortgage Trust’s payout ratio is 2,088.89%.
Analysts Set New Price Targets
A number of research analysts recently commented on the stock. JPMorgan Chase & Co. lowered their price objective on shares of Blackstone Mortgage Trust from $19.00 to $18.00 and set an “overweight” rating on the stock in a research note on Friday, July 31st. Wall Street Zen downgraded Blackstone Mortgage Trust from a “hold” rating to a “sell” rating in a research note on Saturday, August 1st. Weiss Ratings lowered Blackstone Mortgage Trust from a “sell (d+)” rating to a “sell (d)” rating in a report on Friday, July 31st. Wells Fargo & Company decreased their target price on Blackstone Mortgage Trust from $22.00 to $18.00 and set an “overweight” rating for the company in a research note on Monday, August 3rd. Finally, Keefe, Bruyette & Woods decreased their target price on Blackstone Mortgage Trust from $16.00 to $13.00 and set a “market perform” rating for the company in a research note on Friday, October 9th. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $18.60.
View Our Latest Analysis on BXMT
Insider Buying and Selling at Blackstone Mortgage Trust
In related news, Director Henry Nassau purchased 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The shares were purchased at an average price of $14.34 per share, with a total value of $143,400.00. Following the purchase, the director owned 218,523 shares of the company’s stock, valued at $3,133,619.82. This trade represents a 4.80% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. In the last three months, insiders sold 3,716 shares of company stock valued at $46,815. Company insiders own 1.18% of the company’s stock.
Blackstone Mortgage Trust Company Profile
Blackstone Mortgage Trust, Inc is a real estate investment trust that originates and manages senior loans secured by commercial properties. The company primarily provides floating-rate mortgage financing to owners and sponsors of institutional-quality real estate, earning income from interest and other fees associated with its lending activities.
Its loan portfolio has historically included properties across sectors such as office, multifamily, hotel, industrial, retail and life sciences.
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