Blackstone Mortgage Trust: Portfolio Shift, Growth, Cheap (Rating Upgrade)

2026-02-22 22:50:50 ET

Blackstone Mortgage Trust ( BXMT ) has worked diligently in the last two years in reducing the size of its office loan portfolio which has weighed on the REIT's financial performance. BXMT's impaired loans in turn dragged down the mortgage REIT's distributable earnings and dividend coverage which necessitated a 24% dividend cut in 2024. Since then, however, the mortgage REIT has seen a consistent improvement in its dividend coverage trend which as of the end of the fourth-quarter stood at 109%. Blackstone Mortgage Trust now published two consecutive quarters of more than 100% dividend coverage, drastically reducing the odds of another dividend cut. This, in combination with the second-largest discount to book value in the CRE finance REIT industry group, justifies a rating up-grade to buy, in my opinion....

Read the full article on Seeking Alpha

For further details see: