Blackstone Mortgage Trust, Inc. Q1 FY2026 earnings call

· BXMT's first quarter results demonstrate the breadth of its platform and ability to execute on both sides of the balance sheet amidst real estate recovery. · Leveraged scale and proprietary sourcing channels to capture attractive investments across sectors, markets, and strategies. · Closed first data center loan and invested in diversified UK bank loan portfolio. · Real estate fundamentals recovering, with REITs outperforming S&P 500. · Portfolio performance: received over $600 million of repayments, resolved impaired hospitality loan, sold multifamily property. · Investments generated levered returns of 900 basis points over base rates. · Actively in capital markets: accretively refinanced $700 million of corporate debt, issued $1.3 billion of securitized debt, added non-mark-to-market credit facility. · Net lease portfolio scaling, reaching $516 million at quarter end with $120 million in closing

For the first quarter, GAAP net loss was $0.04 per share, distributable earnings were $0.21 per share, and distributable earnings prior to realize gains and losses were 49 cents per share. The loan portfolio ended the quarter at $16.4 billion across 130 loans, with more than 50% in multifamily and industrial, and was 98% performing. The net lease portfolio reached $516 million at quarter end, up from $66 million the previous year, with $120 million in closing. The own real estate portfolio generated $14 million of NOI this quarter, with an annualized asset yield on carrying value of approximately 3.5%

Q: Tom Catherwood with BTIG asked about Q1 loan origination activity impact, net lease pipeline and platform advantage.

A: Austin said Q1 origination activity was regular with syndications, net lease pipeline target to grow, and platform has excellent team, experienced individuals, granular investment profile complementing floating rate lending business.

Q: Rick Shane with JPMorgan asked about loan maturities strategy and CECL reserve rate.

A: Marcin said they take active approach with borrowers, general reserve around 100 - 120 basis points, not expecting dramatic change soon.

Q: Chris Muller with Citizens Capital Market asked about bank loan portfolio acquisitions drivers and 10-year impact on borrower sentiment.

A: Tim said bank loan portfolio acquisitions driven by M&A activity, 10-year impact sees capital markets active, CMBS issuance up, credit availability good.

Q: Jade Romani with KBW asked about CECL provision drive and REO portfolio resolution timeline.

A: Marcin said CECL provision had general and specific components, Austin added loans were idiosyncratic, Jade was told patient approach to REO portfolio resolution.

Q: Harsh Hemnani with Green Street asked about SRT transaction collateral geography and data center loan underwriting.

A: Austin said SRT transaction was UK-focused, data center loan underwriting is thoughtful for credit and return.

Q: Don Fandetti with Wells Fargo asked about office market thoughts.

A: Said office market fundamentals improving, leasing activity picking up, capital markets activity solid