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Blackstone Mortgage Trust posts $81.2 million Q2 net loss
The mortgage REIT reported a 48 cents per share distributable result that beat analyst expectations, citing impairments including a $29 million Dallas multifamily loan.
Blackstone Mortgage Trust (BXMT) reported a net loss of $81.2 million in the second quarter of 2026, according to Commercial Observer. The mortgage REIT also posted a second quarter loss of 48 cents per share with distributable earnings per share of 48 cents, which still beat analysts' estimates of 38 cents per share.
BXMT executives said short term impacts from several loan impairments drove the earnings decline, including the resolution of a $29 million impaired multifamily loan in Dallas. The company also pointed to substantial repayment volume during the quarter and said the impairments may continue to affect results into the third quarter.
During its Thursday morning earnings call, BXMT's chief financial officer said it would likely take a couple of quarters for the firm to fully deploy capital it receives from repayments. The CEO added that the REIT is looking to take advantage of a reasonably liquid market to sell loans, as part of a strategy to diversify its portfolio.
BXMT said it could include the sale of a Hyatt hotel in San Francisco and most of its office loan portfolio, and that the loan sale process is at an early stage. The company said it is aiming to rotate its $20 billion total investment portfolio over the coming years, including its $17 billion loan portfolio, into sectors it views as having better fundamentals and risk adjusted returns.