Blackstone Mortgage Trust Posts $1.95 Per-Share Loss in Third Quarter
Key Facts
Blackstone Mortgage Trust reported a basic and diluted loss of $1.95 per share in the third quarter of 2026, while distributable earnings were $0.38 per share. In its earnings release, the company said distributable earnings before realized gains and losses were $0.42 per share. Distributable earnings are a non-GAAP measure, while the per-share loss is a GAAP measure. Net revenue was $141.903 million, compared with $132.637 million in the third quarter of 2025. In that quarter, the company reported net income attributable to it of $63.4 million, earnings per share of $0.37 and distributable earnings of $0.24 per share.
Chief Executive Tim Johnson said higher interest rates and the slow recovery in the office sector affected the company's provisions and book value. Book value per share fell to $17.06 on September 30, 2026, from $19.31 on June 30. The company said its investment portfolio totaled $17.0 billion at the end of the quarter, with $1.3 billion in liquidity. Among portfolio indicators, loans on the watchlist fell to $0.9 billion, down 56% from the second quarter. The company said that balance was the lowest since the fourth quarter of 2019.
The company collected $2.3 billion from loan repayments in the third quarter, including $251 million from sales. It said it sold about $1.0 billion in loans during the third quarter and the fourth quarter to date, at about 0.93 of their book value. The sales included $0.5 billion in office loans and $0.2 billion in multifamily loans, among them loans on the watchlist. Commenting on the company's direction, Johnson said it is focused on "balancing current yield with the ability to generate long-term earnings through disciplined capital allocation." These figures place loan repayments and sales alongside the decline in the watchlist balance as portfolio developments during the period.
The company cut its declared fourth-quarter dividend to $0.30 per share, compared with $0.47 per share in the third quarter. The dividend will be paid on January 15, 2027, to shareholders of record on December 31, 2026. Johnson said the board reviews the dividend each quarter and that the company believes the fourth-quarter dividend "can be sustained across a range of interest-rate and credit environments." The company's shares closed at $10.56 on October 28, 2026, according to daily closing data provided by EL7. The company scheduled an investor call to discuss the results for October 29, 2026, at 9:00 a.m. Eastern time.