2024-04-11 15:21:18 ET
Summary
- Blackstone Mortgage Trust is one of the largest mortgage REITs in the world, with a diverse portfolio of commercial loans across asset classes.
- BXMT is trading at a discount to book value, offering value for optimistic shareholders who believe the commercial real estate sector will improve.
- In 2023, BXMT's dividend coverage was 123%, providing ample protection from ongoing systemic issues including weakness in the office market.
We are going to stray from our typical analysis of equity REITs and peer over the fence to the debt side of the equation. Historically, equity REITs have outperformed mortgage REITs, or mREITs, due to the appreciation of the real estate they own. This tailwind and a variety of others are the foundation of why equity REITs are generally preferable, in my opinion. Simply put, I would generally rather own than loan....
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Blackstone Mortgage Trust: Ample Dividend Coverage Helps Protect From Ongoing Issues