Blackstone Mortgage Trust ( NYSE: BXMT ) shares are rising 1.5% in Wednesday morning trading after its Q2 earnings exceed the Wall Street consensus and as the Federal Reserve is poised to raise its key interest rate this afternoon.
Q2 distributable EPS of $0.67, topping the $0.63 consensus, rose from $0.62 in Q1 2022.
"Amidst more challenging market conditions, we produced both earnings and portfolio growth, underpinned by continued credit performance and prudent balance sheet management," said CEO Katie Keenan. "Given the earnings power of our floating rate portfolio and our strong liquidity position, we are well-positioned for the period ahead."
Its 99.9% floating rate portfolio is positioned "to create inflation-protected earnings stream positively correlated to rising rates," the company said. A 100 basis point increase in base rates from the Q2 average would generate $0.15 per share of incremental earnings annually from the current portfolio.
Q2 originations of $3.0B compared with $3.4B in Q1.
Loan fundings of $2.8B drove a net $1.4B increase in investments outstanding. That compares with loan fundings of $3.0B in Q1 2022.
Portfolio increased to $26.5B slipped from $26.6B at the end of Q1 and increased from $19.2B at June 30, 2021.
Book value of $27.17 per share at June 30, 2022 fell slightly from $27.21 at March 31, 2022.
Earlier, Blackstone Mortgage Trust ( BXMT ) non-GAAP EPS of $0.67 beats by $0.04, revenue of $147.07M beats by $10.83M
For further details see:
Blackstone Mortgage Trust Q2 earnings beat, sees rising rates helping growth