LADR - Blackstone Mortgage Trust: Red Flags For This 14% Yielder (Rating Downgrade)
2024-04-28 10:36:34 ET
Summary
- Blackstone Mortgage Trust's stock declined 4.6% after reporting a net loss in Q1 due to loan problems in the office category.
- An increase in the expected credit loss reserve affected the company's dividend coverage ratio, raising concerns about the sustainability of the dividend.
- The market is concerned about the credit quality of the trust's office loan portfolio, reflected in the 29% discount to book value.
The stock of Blackstone Mortgage Trust, Inc. ( BXMT ) did not react well to the mortgage trust’s first quarter earnings in which the company showed that it swung to a net loss amid loan problems in the office category: BXMT declined 4.6% on Thursday and may see additional selling pressure in the short term....
Blackstone Mortgage Trust: Red Flags For This 14% Yielder (Rating Downgrade)