Q4 2025 Blackstone Mortgage Trust Inc Earnings Call

February 11, 2026

<unk> fourth quarter and full year 2025 Investor call. Today's call is being recorded at this time all participants are in a listen only mode. If you require operator assistance at any time. Please press star zero, if you'd like to ask a question. Please signal by pressing star one on your telephone keypad, if you're using a speaker phone. Please make sure your mute function.

Operator: Good day, and welcome to the Blackstone Mortgage Trust Q4 and full year 2025 investor call. Today's call is being recorded. At this time, all participants are in a listen-only mode. If you require operator assistance at any time, please press star zero. If you'd like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. At this time, I'd like to turn the call over to Tim Hayes, Vice President, Shareholder Relations. Please go ahead.

Is turned off to allow your signal to reach our equipment at this time I'd like to turn the call over to Tim Hayes, Vice President shareholder Relations. Please go ahead.

Good morning, and welcome everyone to Blackstone mortgage trusts fourth quarter and full year 2025 earnings conference call I'm joined today by Tim Johnson, Chief Executive Officer, Tony Marone, Blackstone's Global head of real estate Finance, Austin, Pena, President and Martin <unk> incoming Chief Financial Officer.

Timothy Hayes: Good morning, and welcome everyone to Blackstone Mortgage Trust's Q4 and full year 2025 earnings conference call. I'm joined today by Tim Johnson, Chief Executive Officer, Tony Marone, Blackstone's Global Head of Real Estate Finance, Austin Peña, President, and Marcin Urbaszek, Incoming Chief Financial Officer. This morning, we filed our 10-K and issued a press release with a presentation of our results, which are available on our website and have been filed with the SEC. I'd like to remind everyone that today's call may include forward-looking statements which are subject to risks, uncertainties, and other factors outside of the company's control. Actual results may differ materially. For discussion of some of the risks that could affect results, please see the Risk Factors section of our most recent 10-K. We do not undertake any duty to update forward-looking statements.

This morning, we filed our 10-K and issued a press release with a presentation of our results which are available on our website and have been filed with the SEC.

Like to remind everyone that today's call may include forward looking statements, which are subject to risks uncertainties and other factors outside of the company's control.

Actual results may differ materially for.

For a discussion of some of the risks that could affect results. Please see the risk factors section of our most recent 10-K.

We do not undertake any duty to update forward looking statements.

We will also refer to certain non-GAAP measures on this call and for reconciliations you should refer to the press release and 10-K.

Timothy Hayes: We will also refer to certain non-GAAP measures on this call, and for reconciliations, you should refer to the press release and 10-K. This audiocast is copyrighted material of Blackstone Mortgage Trust and may not be duplicated without our consent. For the fourth quarter, we reported GAAP net income of $0.24 per share, while distributable earnings were -$2.07 per share, and distributable earnings prior to charge-offs were $0.51 per share. A few weeks ago, we paid a dividend of $0.47 per share with respect to the fourth quarter. With that, I will now turn the call over to Tim. Thank you, Tim. BXMT reported strong fourth quarter results, further building upon the positive momentum in earnings power and credit performance achieved throughout 2025.

This audiocast is copyrighted material of Blackstone mortgage trust may not be duplicated without our consent.

For the fourth quarter, we reported GAAP net income of 24 per share while distributable earnings were negative $2 seven per share and distributable earnings prior to charge offs were <unk> 51 per share a few weeks ago, we paid a dividend of <unk> 47 per share with respect to the fourth quarter with that I will now turn the call over to Tim.

Speaker #1: Thanks, which are available on our website and have been filed with the SEC. I'd like to remind everyone that today's call may include forward-looking statements which are subject to risks, uncertainties, and other factors outside of the company's control.

Thank you Tim.

<unk> reported strong fourth quarter results further building upon the positive momentum in earnings power and credit performance achieved throughout 2025.

Speaker #1: Actual results may differ materially. For discussion of some of the risks that could affect results, please see the risk factors section of our most recent 10-K.

We reported <unk> 51 per share of distributable earnings prior to charge offs in the fourth quarter, an increase of over 20% from Q1 and covering our dividend for the second consecutive quarter.

Timothy Hayes: We reported $0.51 per share of distributable earnings prior to charge-offs in Q4, an increase of over 20% from Q1 and covering our dividend for the second consecutive quarter. Our loan portfolio is now 99% performing, reflecting strong progress on loan resolutions in the quarter. We've actively rotated our portfolio, concentrating new investment in our highest conviction themes. We closed approximately $7 billion of investments in 2025, nearly 85% of which were in multifamily and industrial loans, our growing net lease strategy, and two bank loan portfolios we acquired at discounts. We've strategically broadened BXMT's scope to target these complementary investment channels, supporting capital deployment over the past year and reinforcing earnings power with greater diversification and duration.

Speaker #1: We do not undertake any duty to update forward-looking statements. We will also refer to certain non-GAAP measures on this call, and for reconciliations, you should refer to the press release and 10-K.

Our loan portfolio is now 99% performing reflecting strong progress on loan resolutions in the quarter and.

Speaker #1: This audio cast is copyrighted material of Blackstone Mortgage Trust and may not be duplicated without our consent. For the fourth quarter, we reported GAAP net income of 24 cents per share.

And we are actively rotated our portfolio concentrating new investment in our highest conviction themes.

Speaker #1: While distributable earnings were negative $2.07 per share, and distributable earnings prior to charge-offs were 51 cents per share. A few weeks ago, we paid a dividend of 47 cents per share with respect to the fourth quarter.

We closed approximately $7 billion of investments in 2025, nearly 85% of which were in multifamily and industrial loans are growing net lease strategy and to bank loan portfolios, we acquired at discounts.

Speaker #1: With that, I will now turn the call over to Tim.

Speaker #2: Thank you, Tim. The XMT reported strong fourth-quarter results, further building upon the positive momentum in earnings power and credit performance achieved throughout 2025. We reported 51 cents per share of distributable earnings prior to charge-offs in the fourth quarter.

We have strategically broadened <unk> scope to target these complementary investment channels supporting capital deployment over the past year, and reinforcing earnings power with greater diversification and duration.

Turning to markets the real estate credit market today is highly liquid and underpinned by solid real estate fundamentals with new construction still sharply lower from pre cycle levels and value steadily increasing.

Speaker #2: An increase of over 20% from Q1, and covering our dividend for the second consecutive quarter. Our loan portfolio is now 99% performing, reflecting strong progress on loan resolutions in the quarter.

Timothy Hayes: Turning to markets, the real estate credit market today is highly liquid and underpinned by solid real estate fundamentals, with new construction still sharply lower from pre-cycle levels and values steadily increasing. CMBS issuance accelerated in 2025 to its highest level since the GFC, up 40% year over year and demonstrating a significant increase in debt capital availability as performance in the sector has improved. As a result, we've seen the deal dam start to break, with more enthusiasm from investors to transact. We see this in our loan origination business, where new loan requests in January were up 50% from the prior year. Within this backdrop, the breadth and expertise of our global real estate debt platform, with over 170 professionals, is a differentiator. Providing BXMT access to a proprietary pipeline of diverse investments across the US, Europe, and Australia.

CMS issuance accelerated in 2025% to its highest level since the GSC up 40% year over year and demonstrating a significant increase in debt capital availability as performance in this sector has improved.

Speaker #2: And we've actively rotated our portfolio concentrating new investment in our highest conviction themes. We closed approximately $7 billion of investments in 2025, nearly 85% of which were in multifamily and industrial loans, our growing net lease strategy, and two bank loan portfolios we acquired at discounts.

As a result, we've seen the deal them start to break with more enthusiasm from investors to transact. We see this in our loan origination business, where new loan requests in January were up 50% from the prior year.

Speaker #2: We've strategically broadened BXMT's scope to target these complementary investment channels, supporting capital deployment over the past year and reinforcing earnings power with greater diversification and duration.

Within this backdrop, the breadth and expertise of our global real estate debt platform with over 170 professionals is a differentiator providing <unk> access to a proprietary pipeline of diverse investments across the U S Europe and Australia.

Speaker #2: Turning to markets, the real estate credit market today is highly liquid and underpinned by solid real estate fundamentals, with new construction still sharply lower from pre-cycle levels and values steadily increasing.

In 2025, our global platform closed over $20 billion of private loan originations and acquisitions and traded more than $15 billion of real estate securities.

Timothy Hayes: In 2025, our global platform closed over $20 billion of private loan originations and acquisitions and traded more than $15 billion of real estate securities. The robust data and insights gained from our private and publicly traded market activity guides our investment decisions and positions us well to source attractive opportunities across various markets. With such a wide funnel and a well-invested portfolio, we can pick and choose our spots and lean in where we see compelling relative value. Our activity also informs our balance sheet and capital market strategy, where BXMT has capitalized, executing over $5 billion of corporate and securitized debt transactions in the past twelve months, including $2.8 billion of corporate, corporate term loan repricings and extensions, which reduced our weighted average borrowing spread by nearly 90 basis points over the year-over-year.

Speaker #2: accelerated in 2025 to its CMBS issuance highest level since the GFC, up 40% year over year and demonstrating a significant increase in debt capital availability as performance in the sector has improved.

The robust data and insights gained from our private and publicly traded market activity guides, our investment decisions and positions us well to source attractive opportunities across various markets.

Speaker #2: As a result, we've seen the deal dam start to break. With more enthusiasm from investors to transact, we see this in our loan origination business where new loan requests in January were up 50% from the prior year.

With such a wide funnel and a well invested portfolio, we can pick and choose our spots and lean in where we see compelling relative value.

Our activity also informs our balance sheet and capital market strategy, where <unk> has capitalized executing over $5 billion of corporate and securitized debt transactions in the past 12 months, including $2 $8 billion of corporate corporate term loan re pricings and extensions, which reduced our weighted average.

Speaker #2: Within this backdrop, the breadth and expertise of our global real estate debt platform with over 170 professionals is a differentiator. Providing BXMT access to a proprietary pipeline of diverse investments across the US, Europe, and Australia.

Speaker #2: In 2025, our global platform closed over $20 billion of private loan originations and acquisitions, and traded more than $15 billion of real estate securities.

Borrowing spread by nearly 90 basis points over the year over year.

These transactions extended the duration of our liabilities drove funding costs, lower and further diversified and strengthened our capital structure.

Timothy Hayes: These transactions extended the duration of our liabilities, drove funding costs lower, and further diversified and strengthened our capital structure. Market tailwinds are also supporting performance within our portfolio, with no new impaired loans or watchlist additions in Q4. We expect to see opportunities to selectively exit our owned real estate properties, further supporting earnings as we more efficiently redeploy capital into our core investments. We will remain patient and disciplined with our approach and focused on maximizing long-term shareholder value. While we delivered an attractive 21% total return for shareholders in 2025, we see a strong case for additional upside in the stock. BXMT shares still trade below book value. Our current dividend yield of 9.5% implies a 540 basis point spread to the 10-year treasury.

Speaker #2: The robust data and insights gained from our private and publicly traded market activity guide our investment decisions and position us well to source attractive opportunities across various markets.

Market tailwind are also supporting performance within our portfolio with no new impaired loans or watch list additions in the fourth quarter.

Speaker #2: With such a wide funnel and a well-invested portfolio, we can pick and choose our spots and lean in where we see compelling relative value.

And we expect to see opportunities to selectively exited our owned real estate properties further supporting earnings as we more efficiently redeploy capital into our core investments.

Speaker #2: Our activity also informs our balance sheet and capital market strategy, where BXMT has capitalized. Executing over $5 billion of corporate and securitized debt transactions in the past 12 months.

We will remain patient and disciplined with our approach and focused on maximizing long term shareholder value.

While we delivered an attractive 21% total return for shareholders in 2025, we see a strong case for additional upside in the stock.

Speaker #2: Including $2.8 billion of corporate-term loan repricings and extensions, which reduced our weighted average borrowing spread by nearly 90 basis points over the year over year.

<unk> shares still trade below book value, our current dividend yield of nine 5% implies a 540 basis point spread to the 10 year Treasury.

Speaker #2: These transactions extended the duration of our liabilities, drove funding costs lower, and further diversified and strengthened our capital structure. Market tailwinds are also supporting performance within our portfolio, with no new impaired loans or watchlist additions in the fourth quarter.

That's approximately 40% above our tightest level, which was achieved when rates were much lower.

Timothy Hayes: That's approximately 40% above our tightest level, which was achieved when rates were much lower. In contrast, spreads in liquid real estate credit and the broader credit markets have tightened, with BBB CMBS spreads and high yield bond spreads within 10 to 20% of their all-time tights. This valuation gap is wide and emphasizes the highly compelling relative value proposition of BXMT stock today. We believe the credit trends in our portfolio and earnings power of the business should warrant further retracement to historical levels. A view we've expressed with another $60 million of share repurchases this quarter, and approximately $140 million since establishing our program in July 2024.

In contrast spreads in liquid real estate credit and the broader credit markets have tightened with triple BC MBS spreads and high yield bond spreads within 10% to 20% of their all time tights.

Speaker #2: And we expect to see opportunities to selectively exit our own real estate properties, further supporting earnings as we more efficiently redeploy capital into our core investments.

This valuation gap as wide and emphasizes the highly compelling relative value proposition of <unk> stock today.

Speaker #2: We will remain patient and disciplined with our approach, and focused on maximizing long-term shareholder value. While we delivered an attractive 21% total return for shareholders in 2025, we see a strong case for additional upside in the stock.

We believe the credit trends in our portfolio and earnings power of the business should warrant further retracement to historical levels.

We've expressed with another $60 million of share repurchases this quarter and approximately $140 million since establishing our program in July of 2024.

Timothy Hayes: which are available on our website and have been filed with the SEC. I'd like to remind everyone that today's call may include forward-looking statements which are subject to risks, uncertainties, and other factors outside of the company's control. Actual results may differ materially. For discussion of some of the risks that could affect results, please see the Risk Factors section of our most recent 10-K. We do not undertake any duty to update forward-looking statements. We will also refer to certain non-GAAP measures on this call, and for reconciliations, you should refer to the press release and 10-K. This audiocast is copyrighted material of Blackstone Mortgage Trust and may not be duplicated without our consent.

Speaker #2: BXMT shares still trade below book value. Our current dividend yield of 9.5% implies a 540 basis point spread to the 10-year treasury. That's approximately 40% above our tightest level which was achieved when rates were much lower.

Before turning it over to Austin to <unk> to discuss our fourth quarter investments and portfolio in more detail.

Timothy Hayes: Before turning it over to Austin to discuss our fourth quarter investments and portfolio in more detail, I want to thank Tony Marone, who will be stepping down as CFO of BXMT to focus on other responsibilities within Blackstone. Tony has been instrumental in BXMT's growth since inception, joining us through the Capital Trust acquisition in 2012. I'm grateful for his service to the company and our shareholders, and wish him all the best. I'd also like to congratulate Marcin Urbaszek, who will be stepping into the role of CFO, completing the transition started when he joined the company in 2024. With that, Austin, over to you.

I want to thank Tony Marone, who will be stepping down as CFO of <unk> to focus on other responsibilities within Blackstone.

Speaker #2: In contrast, spreads in liquid real estate credit and the broader credit markets have tightened, with BBBCMBS spreads and high-yield bond spreads within 10 to 20% of their all-time tights.

Tony has been instrumental in VX mt's growth since inception, joining us through the capital Trust acquisition in 2012.

I am grateful for his service to the company and our shareholders and wish him all the best I'd.

Speaker #2: This valuation gap is wide and emphasizes the highly compelling relative value proposition of BXMT's stock today. We believe the credit trends in our portfolio and earnings power of the business should warrant further retracement to historical levels.

I'd also like to congratulate Martin <unk>, who will be stepping into the role of CFO completing the transition started when he joined the company in 2024 with that Austin over to you.

Timothy Hayes: For Q4, we reported GAAP net income of $0.24 per share, while distributable earnings were -$2.07 per share, and distributable earnings prior to charge-offs were $0.51 per share. A few weeks ago, we paid a dividend of $0.47 per share with respect to Q4. With that, I will now turn the call over to Tim. Thank you, Tim. BXMT reported strong Q4 results, further building upon the positive momentum in earnings power and credit performance achieved throughout 2025. We reported $0.51 per share of distributable earnings prior to charge-offs in Q4, an increase of over 20% from Q1 and covering our dividend for the second consecutive quarter. Our loan portfolio is now 99% performing, reflecting strong progress on loan resolutions in the quarter.

Thanks, Tim.

Speaker #2: A view we've expressed with another $60 million of share repurchases this quarter, and approximately $140 million year-to-date through July of 2024. Before turning it over to Austin to discuss our fourth-quarter investments and portfolio in more detail, I want to thank Tony Marone, who will be stepping down as CFO of BXMT to focus on other responsibilities within Blackstone.

Starting with our investment activity, we closed $1 5 billion of investments in the fourth quarter, including $1 4 billion of new loan originations and approximately $100 million of net lease acquisitions at share.

Austin Peña: Thanks, Tim. Starting with our investment activity, we closed $1.5 billion of investments in Q4, including $1.4 billion of new loan originations and approximately $100 million of net lease acquisitions at Share. Consistent with our approach in recent quarters, our Q4 loan originations were 100% secured by multifamily and industrial assets, about 80% of which were diversified portfolios. This included a $419 million loan on a 94% leased 11-asset portfolio of high-quality industrial properties located across the US and owned by a top-tier sponsor. By leveraging the scale and sector expertise of our platform, our team was able to quickly underwrite this loan and provide certainty of execution, capturing an investment which we believe provides attractive relative value. We like lending on portfolios like this.

Timothy Hayes: Thank you, Tim. BXMT reported strong Q4 results, further building upon the positive momentum in earnings power and credit performance achieved throughout 2025. We reported $0.51 per share of distributable earnings prior to charge-offs in Q4, an increase of over 20% from Q1 and covering our dividend for the second consecutive quarter. Our loan portfolio is now 99% performing, reflecting strong progress on loan resolutions in the quarter.

Consistent with our approach in recent quarters, our <unk> loan originations were 100% secured by multifamily and industrial assets about 80% of which were diversified portfolios.

Speaker #2: Tony has been instrumental in BXMT's growth since inception, joining us through the Capital Trust Acquisition in 2012. I'm grateful for his service to the company, and our shareholders, and wish him all the best.

This included a $419 million loan on a 94% leased 11 asset portfolio of high quality industrial properties located across the U S and owned by a top tier sponsor.

Speaker #2: I'd also like to congratulate Marson, Urbasic, who will be stepping into the role of CFO, completing the transition started when he joined the company in 2024.

Timothy Hayes: We've actively rotated our portfolio, concentrating new investment in our highest conviction themes. We closed approximately $7 billion of investments in 2025, nearly 85% of which were in multifamily and industrial loans, our growing net lease strategy, and two bank loan portfolios we acquired at discounts. We've strategically broadened BXMT's scope to target these complementary investment channels, supporting capital deployment over the past year and reinforcing earnings power with greater diversification and duration. Turning to markets, the real estate credit market today is highly liquid and underpinned by solid real estate fundamentals, with new construction still sharply lower from pre-cycle levels and values steadily increasing. CMBS issuance accelerated in 2025 to its highest level since the GFC, up 40% year-over-year and demonstrating a significant increase in debt capital availability as performance in the sector has improved.

By leveraging the scale and sector expertise of our platform. Our team was able to quickly underwrite this loan and provide certainty of execution, capturing an investment, which we believe provides attractive relative value.

Speaker #2: With that, Austin, over to

Speaker #2: With that, Austin, over to you. Thanks, Tim.

Speaker #1: Starting with our investment activity, we closed $1.5 billion of investments in the fourth quarter, including $1.4 billion of new loan originations and approximately $100 million of net lease acquisitions at share.

We like lending on portfolios like this they diversify <unk> credit exposure across multiple markets and tenants limiting the impact of idiosyncratic risks via cross Collateralization.

Austin Peña: They diversify BXMT's credit exposure across multiple markets and tenants, limiting the impact of idiosyncratic risks via cross-collateralization. In addition to our new origination activity, we continue to be successful in harvesting opportunities from within our existing portfolio, proactively working with sponsors to retain high-quality investments that were likely candidates to refinance. Given our position as the existing lender, we are able to modify terms and extend duration while maintaining attractive economics relative to new deals in the market today. Our investment portfolio stands at $20 billion, up from $19.5 billion last quarter, and includes our $18 billion loan portfolio, $1.3 billion of owned real estate, and over $900 million of investments at Share held in our bank loan portfolio and net lease joint ventures.

Speaker #1: Consistent with our approach in recent quarters, our four-Q loan originations were 100% secured by multifamily and industrial assets. About 80% of which were diversified portfolios.

In addition to our new origination activity, we continue to be successful and harvesting opportunities from within our existing portfolio proactively working with sponsors to retain high quality investments that we are likely candidates to refinance.

Speaker #1: This included a $419 million loan on a 94% leased, 11-asset portfolio of high-quality industrial properties located across the U.S. and owned by a top-tier sponsor.

Given our position as the existing lender, we were able to modify terms and extend duration.

While maintaining attractive economics relative to new deals in the market today.

Speaker #1: By leveraging the scale and sector expertise of our platform, our team was able to quickly underwrite this loan and provide certainty of execution, capturing an investment which we believe provides attractive relative value.

Our investment portfolio stands at $20 billion.

Up from $19 5 billion last quarter and includes our $18 billion loan portfolio $1 3 billion of owned real estate.

Timothy Hayes: As a result, we've seen the deal dam start to break, with more enthusiasm from investors to transact. We see this in our loan origination business, where new loan requests in January were up 50% from the prior year. Within this backdrop, the breadth and expertise of our global real estate debt platform, with over 170 professionals, is a differentiator, providing BXMT access to a proprietary pipeline of diverse investments across the US, Europe, and Australia. In 2025, our global platform closed over $20 billion of private loan originations and acquisitions, and traded more than $15 billion of real estate securities. The robust data and insights gained from our private and publicly traded market activity guides our investment decisions and positions us well to source attractive opportunities across various markets.

Speaker #1: We like lending on portfolios like this. They diversify BXMT's credit exposure across multiple markets and tenants, limiting the impact of idiosyncratic risks via cross-collateralization.

And over $900 million of investments at share held in our bank loan portfolio and net lease joint ventures.

Today, the net lease assets and acquired bank loans now represent 5% of our portfolio up from zero at the beginning of 2025.

Speaker #1: In addition to our new origination activity, we continue to be successful in harvesting opportunities from within our existing portfolio. Proactively working with sponsors to retain high-quality investments that were likely candidates to refinance.

Austin Peña: Today, the net lease assets and acquired bank loans now represent 5% of our portfolio, up from 0 at the beginning of 2025. These strategies, which generate fixed or contractually increasing cash flow streams over time, naturally complement our floating-rate lending strategy and provide strong relative value in today's investment environment. Our loan portfolio ended the year at 99% performing. We resolved $575 million of impaired loans during the quarter, reducing our impaired loan balance to just under $90 million, most of which relates to a loan secured by a San Francisco hotel, which we expect to take ownership of in Q1. We upgraded 6 loans in Q4, including 1 impaired office loan and 1 watchlist office loan, both demonstrating leasing progress and cash flow growth.

These strategies, which generate fixed or contractually increasing cash flow streams over time naturally complement.

Our floating rate lending strategy and provides strong relative value in today's investment environment.

Speaker #1: Given our position as the existing lender, we are able to modify terms and expectations while maintaining attractive economics relative to new deals in the market today.

Our loan portfolio ended the year at 99% performing.

We resolved $575 million of impaired loans during the quarter, reducing our impaired loan balance to just under $90 million most of which relates to a loan secured by a San Francisco Hotel, which we expect to take ownership in the first quarter.

Speaker #1: Our investment portfolio stands at $20 billion. Up from $19.5 billion last quarter and includes our $18 billion loan portfolio, $1.3 billion of owned real estate, and over $900 million of investments at share held in our bank loan portfolio and net lease joint ventures.

Timothy Hayes: With such a wide funnel and a well-invested portfolio, we can pick and choose our spots and lean in where we see compelling relative value. Our activity also informs our balance sheet and capital market strategy, where BXMT has capitalized, executing over $5 billion of corporate and securitized debt transactions in the past 12 months, including $2.8 billion of corporate, corporate term loan repricings and extensions, which reduced our weighted average borrowing spread by nearly 90 basis points over the year-over-year. These transactions extended the duration of our liabilities, drove funding costs lower, and further diversified and strengthened our capital structure. Market tailwinds are also supporting performance within our portfolio, with no new impaired loans or watchlist additions in Q4.

We upgraded six loans in Q4, including one impaired office loan and one watch list office loan both demonstrating leasing progress on cash flow growth.

Speaker #1: Today, the net lease assets and acquired bank loans now represent 5% of our portfolio, up from zero at the beginning of 2025. These strategies, which generate fixed or contractually increasing cash flow streams over time, naturally complement our floating-rate lending strategy and provide strong relative value in today's investment environment.

As Tim mentioned, we did not impair or downgrade any new loans to the watch list this quarter and one of our watch list loans repaid in full.

Austin Peña: As Tim mentioned, we did not impair or downgrade any new loans to the watchlist this quarter, and one of our watchlist loans repaid in full. We continue to apply a rigorous approach to managing our remaining watchlist loans, of which nearly half have been restructured or modified with significant recent equity commitments, with several others in various stages of negotiation. Our loan portfolio is now 50% multifamily and industrial, while office exposure continues to decline, down approximately 50% since year-end 2021. And so far in Q1, we've collected over $300 million of additional office repayments, further reducing our exposure and driving turnover in the portfolio. Nearly half of our loans are located in international markets, with almost 40% in Europe, where over the past year, we originated approximately $2 billion of loans backed by industrial portfolios.

We continue to apply a rigorous approach to managing our remaining watch list loans of which nearly half have been restructured or modified with significant recent equity commitments with several others in various stages of negotiation.

Speaker #1: Our loan portfolio ended the year at 99% performing. We resolved $575 million of impaired loans during the quarter, reducing our impaired loan balance to just under $90 million.

Our loan portfolio is now, 50% multifamily and industrial while office exposure continues to decline.

Approximately 50% since year end 2021.

Speaker #1: Most of which relates to a loan secured by a San Francisco hotel, which we expect to take ownership of in the first quarter. We upgraded six loans in Q4, including one impaired office loan and one watchlist office loan.

And so far in Q1, we've collected over $300 million of additional office repayments further reducing our exposure in driving turnover in the portfolio.

Timothy Hayes: And we expect to see opportunities to selectively exit our owned real estate properties, further supporting earnings as we more efficiently redeploy capital into our core investments. We will remain patient and disciplined with our approach and focused on maximizing long-term shareholder value. While we delivered an attractive 21% total return for shareholders in 2025, we see a strong case for additional upside in the stock. BXMT shares still trade below book value. Our current dividend yield of 9.5% implies a 540 basis point spread to the 10-year treasury. That's approximately 40% above our tightest level, which was achieved when rates were much lower. In contrast, spreads in liquid real estate credit and the broader credit markets have tightened, with triple B CMBS spreads and high yield bond spreads within 10 to 20% of their all-time tights.

Nearly half of our loans are located in international markets with almost 40% in Europe.

Speaker #1: Both demonstrating leasing progress and cash flow growth. As Tim mentioned, we did not impair or downgrade any new loans to the watchlist this quarter.

Over the past year, we originated approximately 2 billion of loans backed by industrial portfolios.

Speaker #1: And one of our watchlist loans repaid in full. We continue to apply a rigorous approach to managing a remaining watchlist loans of which nearly half have been restructured or modified with significant recent equity commitments, with several others in various stages of negotiation.

These investments have a weighted average LTV of 68% strong in place cash flows.

Austin Peña: These investments have a weighted average LTV of 68%, strong in-place cash flows, and provide compelling relative value, with loan spreads nearly 100 basis points wide of comparable quality US transactions. Similar to the US, European industrial markets are benefiting from limited new supply and e-commerce tailwinds driving demand, resulting in positive net absorption and just mid-single-digit vacancy rates in our core markets. We continue to leverage the extensive resources of the Blackstone Real Estate platform to manage our own real estate and execute business plans to best position them for an eventual exit. Importantly, we carry these assets at a 50% discount to values at the time of loan origination, and half are located in New York and the San Francisco Bay Area, markets where we see broadly improving fundamentals and investor demand.

And provide compelling relative value with loan spreads nearly 100 basis points wide of comparable quality U S transactions.

And similar to the U S. European industrial markets are benefiting from limited new supply and ecommerce tailwind driving demand.

Speaker #1: Our loan portfolio is now 50% multifamily and industrial, while office exposure continues to decline—down approximately 50% since year-end 2021. And so far in Q1, we've collected over $300 million of additional office repayments, further reducing our exposure and driving turnover in the portfolio.

<unk> and positive net absorption and just mid single digit vacancy rates in our core markets.

We continue to leverage the extensive resources of the Blackstone real estate platform to manage our owned real estate and execute business plans to best position them for an eventual exit.

Timothy Hayes: This valuation gap is wide and emphasizes the highly compelling relative value proposition of BXMT's stock today. We believe the credit trends in our portfolio and earnings power of the business should warrant further retracement to historical levels, a view we've expressed with another $60 million of share repurchases this quarter and approximately $140 million since establishing our program in July 2024. Before turning it over to Austin to discuss our fourth quarter investments and portfolio in more detail, I want to thank Tony Marone, who will be stepping down as CFO of BXMT to focus on other responsibilities within Blackstone. Tony has been instrumental in BXMT's growth since inception, joining us through the Capital Trust acquisition in 2012.... I'm grateful for his service to the company and our shareholders, and wish him all the best.

Speaker #1: Nearly half of our loans are located in international markets, with almost 40% in Europe. Where over the past year, we originated approximately $2 billion of loans backed by industrial portfolios.

Importantly, we carry these assets at a 50% discount to values at the time of loan origination.

And half are located in New York, and the San Francisco Bay area markets, where we see broadly improving fundamentals and investor demand.

Speaker #1: These investments have a weighted average LTV of 68%, strong in-place cash flows, and provide compelling relative value, with loan spreads nearly 100 basis points wide of comparable quality U.S. transactions.

We currently have one multifamily property in Texas under contract to sell with several other assets well positioned for potential sale. This year.

Austin Peña: We currently have one multifamily property in Texas under contract to sell, with several other assets well positioned for potential sale this year. Meanwhile, our net lease portfolio continues to scale, ending the year at over $300 million at share, with another $200 million in closing. Our strategy remains focused on essential use retail with attractive credit characteristics. The portfolio our team has constructed to date generates over 3 times rent coverage, with 2% built-in annual rent escalators and lease terms extending over 15 years on average. And importantly, we continue to acquire these assets at discounts to replacement costs. In 2025, we acquired two portfolios of granular, low-leverage performing loans from regional banks at discounts to par. Today, these portfolios represent approximately $600 million of principal balance at BXMT share.

Speaker #1: And, similar to the US, European industrial markets are benefiting from limited new supply and e-commerce tailwinds driving demand, resulting in positive net absorption and just mid-single-digit vacancy rates in our core markets.

Meanwhile, our net lease portfolio continues to scale ending the year at over $300 million at chair with another $200 million in closing.

Our strategy remains focused on essential use retail with attractive credit characteristics.

Speaker #1: We continue to leverage the extensive resources of the Blackstone Real Estate platform to manage our owned real estate and execute business plans to best position them for an eventual exit.

The portfolio our team has constructed to date generates over three times rent coverage with 2% built in annual rent escalators and lease terms extending over 15 years on average.

Timothy Hayes: I'd also like to congratulate Marcin Urbaszek, who will be stepping into the role of CFO, completing the transition started when he joined the company in 2024. With that, Austin, over to you.

Speaker #1: Importantly, we carry these assets at a 50% discount to values at the time of loan origination. And half are located in New York and the San Francisco Bay Area.

And importantly, we continue to acquire these assets at discounts to replacement cost.

Austin Peña: Thanks, Tim. Starting with our investment activity, we closed $1.5 billion of investments in Q4, including $1.4 billion of new loan originations and approximately $100 million of net lease acquisitions at Share. Consistent with our approach in recent quarters, our Q4 loan originations were 100% secured by multifamily and industrial assets, about 80% of which were diversified portfolios. This included a $419 million loan on a 94%-leased 11-asset portfolio of high-quality industrial properties located across the US and owned by a top-tier sponsor. By leveraging the scale and sector expertise of our platform, our team was able to quickly underwrite this loan and provide certainty of execution, capturing an investment which we believe provides attractive relative value. We like lending on portfolios like this.

In 2025, we acquired two portfolios of granular low leverage performing loans from regional banks at discounts to par.

Speaker #1: Markets where we see broadly improving fundamentals and investor demand. We currently have one multifamily property in Texas under contract to sell with several other assets well positioned for potential sale this year.

Today these portfolios represent approximately $600 million of principal balance at <unk> share.

And our thesis is playing out as expected with strong credit performance and improving real estate fundamentals and capital markets driving $80 million of repayments since acquisition enhancing returns for <unk> as.

Speaker #1: Meanwhile, our net lease portfolio continues to scale, ending the year at over $300 million at share, with another $200 million in closing. Our strategy remains focused on essential-use retail with attractive credit characteristics.

Austin Peña: Our thesis is playing out as expected, with strong credit performance, improving real estate fundamentals, and capital markets, driving $80 million of repayments since acquisition, enhancing returns for BXMT as loans purchased at discounts repay at par. We expect a ripe environment for bank consolidation to bring additional opportunities like this to market. Our platform is an established leader in the space, having acquired $23 billion of loan portfolios from banks since December 2023, positioning us well for future transactions as a reliable and trusted counterparty. Overall, we are pleased with the strong investment and asset management results our company achieved in 2025, and our team is excited about the opportunities we see ahead in the coming year. With that, I will pass it over to Tony to unpack our financial results.

As loans purchased at discounts repay at par.

Speaker #1: The portfolio our team has constructed to date generates over three times rent coverage, with 2% built-in annual rent escalators and lease terms extending over 15 years on average.

We expect a ripe environment for bank consolidation to bring additional opportunities like this to market.

Our platform is an established leader in this space, having acquired 23 billion of loan portfolios from banks since December 2023, positioning us well for future transactions as a reliable and trusted counterparty.

Speaker #1: And importantly, we continue to acquire these assets at discounts to replace cost. In 2025, we acquired two portfolios of granular, low-leverage performing loans from regional banks at discounts to par.

Overall, we are pleased with the strong investment and asset management results. Our company achieved in 2025 and our team is excited about the opportunities. We see ahead in the coming year.

Speaker #1: Today, these portfolios represent approximately $600 million of principal balance at BXMT's share. And our thesis is playing out as expected. With strong credit performance and improving real estate fundamentals and capital markets, driving $80 million of repayments since acquisition.

And with that I will pass it over to Tony to unpack our financial results.

Thank you Austin and good morning, everyone.

Starting with our fourth quarter results <unk> reported GAAP net income of 24 per share and distributable earnings or de of negative $2 seven per share.

Tony Marone: Thank you, Austin, and good morning, everyone. Starting with our Q4 results, BXMT reported GAAP net income of $0.24 per share and distributable earnings, or DE, of -$2.07 per share. DE included $434 million of reserve charge-offs, largely related to the resolution of 5 impaired loans, as well as the write-off of 3 subordinate loans, which collectively drove performance of our loan portfolio to its highest level in 3 years. These subordinate loans were previously impaired, effectively carried 0, and as part of our regular quarterly assessment, were deemed unrecoverable in Q4. Excluding these items, DE, prior to charge-offs, was $0.51 per share, up 3 cents from the prior quarter and 9 cents from Q1 of the year.

Anthony F. Marone, Jr: Thank you, Austin, and good morning, everyone. Starting with our Q4 results, BXMT reported GAAP net income of $0.24 per share and distributable earnings, or DE, of -$2.07 per share. DE included $434 million of reserve charge-offs, largely related to the resolution of 5 impaired loans, as well as the write-off of 3 subordinate loans, which collectively drove performance of our loan portfolio to its highest level in 3 years. These subordinate loans were previously impaired, effectively carried 0, and as part of our regular quarterly assessment, were deemed unrecoverable in Q4. Excluding these items, DE, prior to charge-offs, was $0.51 per share, up 3 cents from the prior quarter and 9 cents from Q1 of the year.

Speaker #1: Enhancing returns for BXMT as loans purchased at discounts repay at par. We expect a ripe environment for bank consolidation to bring additional opportunities like this to market.

They included $434 million of reserve charge offs largely related to the resolution of five impaired loans as well as the write off of three subordinate loans, which collectively drove performance of our loan portfolio to its highest level in three years.

Speaker #1: Our platform is an established leader in the space, having acquired 23 billion of loan portfolios from banks since December 2023, positioning us well for future transactions as a reliable and trusted counterparty.

These subordinate loans were previously impaired effectively carried a zero and as part of our regular quarterly assessment were deemed unrecoverable in the fourth quarter.

Speaker #1: Overall, we are pleased with the strong investment and asset management results our company achieved in 2025, and our team is excited about the opportunities we see ahead in the coming year.

Excluding these items the prior to charge offs was <unk> 51 per share up <unk> <unk> from the prior quarter and <unk> from the first quarter of the year.

Speaker #1: And with that, I will pass it over to Tony to unpack our financials.

And for the second consecutive quarter day prior to charge offs covered our quarterly dividend of <unk> 47 per share.

Austin Peña: Today, the net lease assets and acquired bank loans now represent 5% of our portfolio, up from 0 at the beginning of 2025. These strategies, which generate fixed or contractually increasing cash flow streams over time, naturally complement our floating-rate lending strategy and provide strong relative value in today's investment environment. Our loan portfolio ended the year at 99% performing. We resolved $575 million of impaired loans during the quarter, reducing our impaired loan balance to just under $90 million, most of which relates to a loan secured by a San Francisco hotel, which we expect to take ownership of in the first quarter. We upgraded 6 loans in Q4, including one impaired office loan and one watchlist office loan, both demonstrating leasing progress and cash flow growth.

Speaker #1: results. Thank you, Austin.

Tony Marone: For the second consecutive quarter, DE, prior to charge-offs, covered our quarterly dividend of $0.47 per share as we continue to drive earnings power through loan resolutions, capital deployment, and accretive corporate debt for financings and stock buybacks. Notably, DE benefited from $18 million of NOI from owned real estate in Q4, up from $6 million in the prior quarter, as we recognized a full quarter impact from properties taken under the balance sheet in Q3. Our hotels represent 1/3 of our owned real estate portfolio, which ended the quarter at $1.3 billion across 12 properties. We anticipate cash flows from owned real estate to decline in Q1, which typically experiences seasonal softening relative to other calendar quarters.

Anthony F. Marone, Jr: For the second consecutive quarter, DE, prior to charge-offs, covered our quarterly dividend of $0.47 per share as we continue to drive earnings power through loan resolutions, capital deployment, and accretive corporate debt for financings and stock buybacks. Notably, DE benefited from $18 million of NOI from owned real estate in Q4, up from $6 million in the prior quarter, as we recognized a full quarter impact from properties taken under the balance sheet in Q3. Our hotels represent 1/3 of our owned real estate portfolio, which ended the quarter at $1.3 billion across 12 properties. We anticipate cash flows from owned real estate to decline in Q1, which typically experiences seasonal softening relative to other calendar quarters.

Speaker #2: And good morning, everyone. Starting with our fourth quarter results, BXMT reported gap net income of 24 cents per share and distributable earnings, or DE, of negative $2.07 per share.

As we continue to drive earnings power through loan resolutions capital deployment and accretive corporate debt refinancings and stock buybacks.

Notably D benefited from $18 million of NOI from owned real estate in Q4 up from $6 million in the prior quarter as we recognized a full quarter impact from properties taken onto the balance sheet in Q3.

Speaker #2: DE included $434 million of reserve charge-offs, largely related to the resolution of five impaired loans as well as the write-off of three subordinate loans, which collectively drove performance of our loan portfolio to its highest level in three years.

Our hotels represent one third of our own real estate portfolio, which ended the quarter at $1 $3 billion across 12 properties.

Speaker #2: These

Speaker #1: Loans were subordinate, previously impaired, effectively carried at zero, and, as part of our regular quarterly assessment, were deemed unrecoverable in the fourth quarter.

We anticipate cash flows from owned real estate to decline in <unk>, which typically experiences seasonal softening relative to other calendar quarters.

Speaker #1: Excluding these items , were deemed unrecoverable in the fourth quarter . Excluding these items , D prior to charge offs was $0.51 per share , up $0.03 from the prior quarter and $0.09 from the first quarter of the year .

However, we expect the portfolio to consistently generate positive D and provide further balance to earnings and dividend coverage over time as we eventually exit these assets and repatriate capital into new investments at target returns.

Tony Marone: However, we expect the portfolio to consistently generate positive DE and provide further ballast to earnings and dividend coverage over time as we eventually exit these assets and repatriate capital into new investments at target returns. We also recognized $21 million of depreciation and amortization, or DNA, related to our own real estate in Q4, which is included in GAAP earnings, but excluded from DE. Accumulated DNA is also reflected in our book value, which ended the year at $20.75 per share. In total, book value includes $0.47 per share of accumulated DNA and $1.76 per share of total CECL reserves, of which $1.24 is attributable to the general reserve and $0.52 to asset-specific reserves.

Anthony F. Marone, Jr: However, we expect the portfolio to consistently generate positive DE and provide further ballast to earnings and dividend coverage over time as we eventually exit these assets and repatriate capital into new investments at target returns. We also recognized $21 million of depreciation and amortization, or DNA, related to our own real estate in Q4, which is included in GAAP earnings, but excluded from DE. Accumulated DNA is also reflected in our book value, which ended the year at $20.75 per share. In total, book value includes $0.47 per share of accumulated DNA and $1.76 per share of total CECL reserves, of which $1.24 is attributable to the general reserve and $0.52 to asset-specific reserves.

Speaker #1: And for the second consecutive quarter prior , d to charge offs covered our quarterly dividend of $0.47 per share . As we continue to drive earnings power through loan resolutions , capital deployment and accretive corporate debt financings and stock buybacks , notably , D benefited from $18 million of NOI from owned real estate in Q4 , up from 6 million in the prior quarter .

Austin Peña: As Tim mentioned, we did not impair or downgrade any new loans to the watchlist this quarter, and one of our watchlist loans repaid in full. We continue to apply a rigorous approach to managing our remaining watchlist loans, of which nearly half have been restructured or modified with significant recent equity commitments, with several others in various stages of negotiation. Our loan portfolio is now 50% multifamily and industrial, while office exposure continues to decline, down approximately 50% since year-end 2021. So far in Q1, we've collected over $300 million of additional office repayments, further reducing our exposure and driving turnover in the portfolio. Nearly half of our loans are located in international markets, with almost 40% in Europe, where over the past year, we originated approximately $2 billion of loans backed by industrial portfolios.

We also recognized $21 million of depreciation and amortization or DNA related to our owned real estate in the fourth quarter, which is included in GAAP earnings but excluded from D.

Accumulated DNA is also reflected in our book value, which ended the year at $20 75 per share.

Okay.

In total book value includes <unk> 47 per share of accumulated DNA and $1 70 76 per share of total seasonal reserves.

Speaker #1: As we recognized a full quarter impact from properties taken under the balance sheet in Q3 . Our hotels represent one third of our real estate portfolio , which ended the quarter at $1.3 billion across 12 properties .

It's $1 24 is attributable to the general reserve and 52 to asset specific reserves.

Speaker #1: We anticipate cash flows from owned real estate to decline in one Q , which typically experiences seasonal softening relative to other calendar quarters .

Our total <unk> reserve declined nearly 60% quarter over quarter as a result of the reserve charge offs I mentioned earlier.

Tony Marone: Our total CECL reserve declined nearly 60% quarter-over-quarter as a result of the reserve charge-offs I mentioned earlier. Importantly, these charge-offs had a de minimis impact on book value, executed largely in line with carrying values. Looking back over the course of 2025, book value benefited from a net $33 million CECL recovery from resolutions executed above carrying values. This, alongside stock buybacks, added $0.30 per share to book value this year. Earnings from our unconsolidated joint ventures also continued to grow, generating $7 million of DE in Q4 versus $3 million in the prior quarter. This was driven by income and repayments in our bank loan portfolios, which accelerate their unamortized purchase discount, and the continued growth in our net lease portfolio Austin mentioned earlier.

Anthony F. Marone, Jr: Our total CECL reserve declined nearly 60% quarter-over-quarter as a result of the reserve charge-offs I mentioned earlier. Importantly, these charge-offs had a de minimis impact on book value, executed largely in line with carrying values. Looking back over the course of 2025, book value benefited from a net $33 million CECL recovery from resolutions executed above carrying values. This, alongside stock buybacks, added $0.30 per share to book value this year. Earnings from our unconsolidated joint ventures also continued to grow, generating $7 million of DE in Q4 versus $3 million in the prior quarter. This was driven by income and repayments in our bank loan portfolios, which accelerate their unamortized purchase discount, and the continued growth in our net lease portfolio Austin mentioned earlier.

Speaker #1: However , we expect the portfolio to consistently generate positive D and provide further ballast to earnings and dividend coverage over time . As we eventually exit these assets and repatriate capital into new investments at target returns .

And importantly, these charge offs had a de minimus impact on book value executed largely inline with carrying values.

Looking back over the course of 2025 book value benefited from a net $33 million seasonal recovery from resolutions executed above carrying values.

Speaker #1: We also recognized $21 million of depreciation and amortization , or DNA , related to our owned real estate , in the fourth quarter , which is included in GAAP earnings but excluded from D .

This alongside stock buybacks at a <unk> 30 per share to book value This year.

Earnings from our unconsolidated joint ventures also continued to grow generating $7 million a day in <unk> versus $3 million in the prior quarter.

Speaker #1: Accumulated DNA is also reflected in our book value , which ended the year at $20.75 per share . total , In book value includes $0.47 per share of accumulated DNA and $1.70 $0.76 per share of total .

This was driven by income and repayments in our bank loan portfolios, which accelerated unamortized purchase discount and the continued growth in our net lease portfolio Austin mentioned earlier.

Speaker #1: Seasonal reserves , of which $1.24 is attributable to the General Reserve and $0.52 to asset specific reserves . Our total Cecil declined Reserve nearly 60% quarter over quarter as a result of the reserve charge offs I mentioned earlier , and importantly , these charge offs had a minimal impact on book value , executed largely in line with carrying values .

As a reminder, our balance sheet reflects our $217 million net equity investment in the net lease in bank loan portfolio joint ventures.

Tony Marone: As a reminder, our balance sheet reflects our $217 million net equity investment in the net lease and bank loan portfolio joint ventures. But as Austin noted, on a gross basis, our share of the investments in these strategies totaled $940 million and are a growing component of our increasingly diverse investment portfolio. Turning to BXMT's capitalization, our balance sheet remains in excellent shape. We ended the year with $1 billion of liquidity, debt to equity within our target range, and weighted average corporate debt maturities of 4.3 years, with no maturities until 2027. As Tim mentioned, we've been active in securitized debt markets, positioning our balance sheet for further resilience.

Anthony F. Marone, Jr: As a reminder, our balance sheet reflects our $217 million net equity investment in the net lease and bank loan portfolio joint ventures. But as Austin noted, on a gross basis, our share of the investments in these strategies totaled $940 million and are a growing component of our increasingly diverse investment portfolio. Turning to BXMT's capitalization, our balance sheet remains in excellent shape. We ended the year with $1 billion of liquidity, debt to equity within our target range, and weighted average corporate debt maturities of 4.3 years, with no maturities until 2027. As Tim mentioned, we've been active in securitized debt markets, positioning our balance sheet for further resilience.

But it is also noted on a gross basis our share of the investments in these strategies totaled $940 million and our growing component of our increasingly diverse investment portfolio.

Speaker #1: Looking back over the course of 2025 , book value benefited from a net $33 million Cecl recovery from resolutions executed above , carrying values .

Turning to <unk> capitalization, our balance sheet remains in excellent shape.

We ended the year with $1 billion of liquidity debt to equity within our target range and weighted average corporate debt maturities are for three years with no maturities until 2027.

Speaker #1: This, alongside stock buybacks, added $0.30 per share to book value this year. Earnings from our unconsolidated joint ventures also continued to grow.

Austin Peña: We currently have one multifamily property in Texas under contract to sell, with several other assets well positioned for potential sale this year. Meanwhile, our net lease portfolio continues to scale, ending the year at over $300 million at Share, with another $200 million in closing. Our strategy remains focused on essential use retail with attractive credit characteristics. The portfolio our team has constructed to date generates over 3 times rent coverage, with 2% built-in annual rent escalators, and lease terms extending over 15 years on average. Importantly, we continue to acquire these assets at discounts to replacement costs. In 2025, we acquired two portfolios of granular, low-leverage performing loans from regional banks at discounts to par. Today, these portfolios represent approximately $600 million of principal balance at BXMT Share.

As Tim mentioned, we have been active in the securitized debt markets positioning our balance sheet for further resilience.

Speaker #1: Generating $7 million of D in four Q versus 3 million in the prior quarter . This was driven by income and repayments in our bank loan portfolios , which accelerate their unamortized purchase discount .

We priced a $1 billion CLO in January our six CLO transaction and completed our inaugural European see MBS issuance in December which as yet another tool to our toolkit and demonstrates the constant innovation of our financing strategies by our capital markets team.

Anthony F. Marone, Jr: We priced a $1 billion CLO in January, our sixth CLO transaction, and completed our inaugural European CMBS issuance in December, which adds yet another tool to our toolkit and demonstrates the constant innovation of our financing strategies by our capital markets team. We ended the year with 15 bank counterparties, providing $19 billion of total borrowing capacity. We added one new counterparty in 2025 and another just recently in February.

Speaker #1: And the continued growth in our net lease portfolio. Austin mentioned earlier, as a reminder, our balance sheet reflects our $217 million net equity investment in the net lease and bank loan portfolio.

Okay.

We ended the year with 15 bank Counterparties, providing $19 billion of total borrowing capacity.

Speaker #1: Joint ventures , but is also noted on a gross basis . Our share of investments in these the strategies totaled $940 million , and are a growing component of our increasingly diverse investment portfolio .

We added one new counterparty in 2025 and another just recently in February.

And given our strong track record as a borrower and a deep relationships with these lenders across Blackstone.

Austin Peña: ... and given our strong track record as a borrower and the deep relationships with these lenders across Blackstone, we have successfully added or converted nearly $6 billion of credit facilities to a Non-Mark-to-Market construct, driving total Non-Mark-to-Market borrowings from 67% at the beginning of the year to nearly 85% today. As my tenure as CFO comes to an end, I can confidently say that all aspects of BXMT's business are in great shape, and the company is on strong footing to capitalize on opportunities as real estate and capital markets continue to recover. I'm thrilled for Marcin to take the CFO role at an exciting time for the company, and look forward to watching him and the rest of the team continue delivering strong results for BXMT shareholders. I will now ask the operator to open the call to questions.

Anthony F. Marone, Jr: ... and given our strong track record as a borrower and the deep relationships with these lenders across Blackstone, we have successfully added or converted nearly $6 billion of credit facilities to a Non-Mark-to-Market construct, driving total Non-Mark-to-Market borrowings from 67% at the beginning of the year to nearly 85% today. As my tenure as CFO comes to an end, I can confidently say that all aspects of BXMT's business are in great shape, and the company is on strong footing to capitalize on opportunities as real estate and capital markets continue to recover. I'm thrilled for Marcin to take the CFO role at an exciting time for the company, and look forward to watching him and the rest of the team continue delivering strong results for BXMT shareholders. I will now ask the operator to open the call to questions.

Speaker #1: Turning to capitalization . Our balance sheet remains in excellent shape . We ended the year with $1 billion of liquidity , debt to equity within our target range , and weighted average corporate debt maturities of 4.3 years , with no maturities until 2027 .

We have successfully added or converted nearly $6 billion of credit facilities to a non mark to market construct driving total non mark to market borrowings from 67% at the beginning of the year to nearly 85% today.

Austin Peña: Our thesis is playing out as expected, with strong credit performance, improving real estate fundamentals, and capital markets driving $80 million of repayments since acquisition, enhancing returns for BXMT as loans purchased at discounts repay at par. We expect a ripe environment for bank consolidation to bring additional opportunities like this to market. Our platform is an established leader in this space, having acquired $23 billion of loan portfolios from banks since December 2023, positioning us well for future transactions as a reliable and trusted counterparty. Overall, we are pleased with the strong investment and asset management results our company achieved in 2025, and our team is excited about the opportunities we see ahead in the coming year. With that, I will pass it over to Tony to unpack our financial results.

As my tenure as CFO come to an end I can confidently say that all aspects of <unk> business are in great shape and the company is on strong footing to capitalize on opportunities as real estate and capital markets continue to recover.

Speaker #1: As Tim mentioned, we have been active in securitized debt markets, positioning our balance sheet for further resilience. We priced a $1 billion CLO in January.

Speaker #1: Our sixth CLO transaction , and completed our inaugural European CMBS issuance in December , which adds yet another tool to our toolkit and demonstrates the constant innovation of our financing strategies by our capital markets team .

I am thrilled for Martin to take the CFO role at an exciting time for the company and look forward to watching him and the rest of the team continue delivering strong results for <unk> shareholders.

I'll now ask the operator to open the call to questions.

Speaker #1: We ended the with year 15 bank counterparties , providing $19 billion of total borrowing capacity . We added one new counterparty in 2025 and another just recently in February .

Thank you as a reminder, please press star one to ask a question.

Operator: Thank you. As a reminder, please press star one to ask a question. We ask you limit yourself to one question and one follow-up question to allow as many callers to join the queue as possible. We will take our first question from Doug Harter with UBS.

We ask you limit yourself to one question and one follow up question to allow as many callers to join the queue as possible we.

Speaker #1: And given our strong track record as a borrower and the deep across relationships with these lenders Blackstone , we have successfully added or converted nearly $6 billion of credit facilities to a non mark to market construct driving total , non mark to market borrowings from 67% at the beginning of the year to nearly 85% today .

We will take our first question from Doug Harter with UBS.

Thanks.

Obviously, you've been kind of showing your support for the stock through share repurchase.

[Analyst] (UBS): Thanks. You know, obviously, you've been kind of, you know, showing your support for the stock through share repurchase. And I'm sure you saw what the actions of one of your competitors earlier this month. You know, just thoughts on other ways you might look to kind of validate or support the value of the loans in the portfolio.

Tony Marone: Thank you, Austin, and good morning, everyone. Starting with our Q4 results, BXMT reported GAAP net income of $0.24 per share and distributable earnings, or DE, of -$2.07 per share. DE included $434 million of reserve charge-offs, largely related to the resolution of 5 impaired loans, as well as the write-off of 3 subordinate loans, which collectively drove performance of our loan portfolio to its highest level in 3 years. These subordinate loans were previously impaired, effectively carried at zero, and as part of our regular quarterly assessment, were deemed unrecoverable in the fourth quarter. Excluding these items, DE prior to charge-offs was $0.51 per share, up 3 cents from the prior quarter and 9 cents from Q1 of the year.

Anthony Marone: Thank you, Austin, and good morning, everyone. Starting with our Q4 results, BXMT reported GAAP net income of $0.24 per share and distributable earnings, or DE, of -$2.07 per share. DE included $434 million of reserve charge-offs, largely related to the resolution of 5 impaired loans, as well as the write-off of 3 subordinate loans, which collectively drove performance of our loan portfolio to its highest level in 3 years. These subordinate loans were previously impaired, effectively carried at zero, and as part of our regular quarterly assessment, were deemed unrecoverable in the fourth quarter. Excluding these items, DE prior to charge-offs was $0.51 per share, up 3 cents from the prior quarter and 9 cents from Q1 of the year.

Sure you saw what the actions of one of your competitors.

Speaker #1: As my tenure as CFO comes to an end, I can confidently say that all aspects of the business are in great shape and the company is on strong footing to capitalize on opportunities as real estate and capital markets continue to recover.

Earlier this month.

Just thoughts on other ways, you might look to kind of validate or support the value of the loans in the portfolio.

Speaker #1: I am thrilled for Marcin to take the CFO role at an exciting time for the company , and look forward to watching him and the rest of the team continue delivering strong results for shareholders .

Thanks, Doug.

Tim I think that.

We certainly take a look at all opportunities to maximize shareholder value in the market and I think we feel really good about the direction of the stock to date given the performance in 2025, and where we stand we still have a discount to book value to make up but a relatively modest one so we'll continue to look at all.

Austin Peña: Thanks, Doug. This is Tim. You know, I think that, you know, we certainly, you know, take a look at all opportunities to maximize shareholder value in the market, and I think we feel really good about the direction of the stock, to date, given the performance in 2025. And where we stand, you know, we still have a discount to book value to make up, but, a relatively modest one. So we'll continue to look at, you know, all options. During the quarter, as you mentioned, a really good tool in the toolkit was, was definitely in stock buybacks. And we analyzed, you know, everything that we have, you know, in terms of optionality in the markets, but we feel really good about where we stand today.

Speaker #1: I will now ask the operator to open the call to questions .

Speaker #2: you . As Thank a reminder , please press Star One to ask a question . We ask you limit yourself to one question and one follow up question to allow as many callers to join the queue as possible .

Speaker #2: We will take our first question from Doug Harter with UBS .

<unk> during the quarter as you mentioned a really good tool in the tool kit was definitely in stock buybacks and we analyzed.

Tony Marone: For the second consecutive quarter, DE, prior to charge-offs, covered our quarterly dividend of $0.47 per share as we continue to drive earnings power through loan resolutions, capital deployment, and accretive corporate debt refinancings and stock buybacks. Notably, DE benefited from $18 million of NOI from owned real estate in Q4, up from $6 million in the prior quarter, as we recognized a full quarter impact from properties taken onto the balance sheet in Q3. Our hotels represent 1/3 of our owned real estate portfolio, which ended the quarter at $1.3 billion across 12 properties. We anticipate cash flows from owned real estate to decline in Q1, which typically experiences seasonal softening relative to other calendar quarters.

Anthony Marone: For the second consecutive quarter, DE, prior to charge-offs, covered our quarterly dividend of $0.47 per share as we continue to drive earnings power through loan resolutions, capital deployment, and accretive corporate debt refinancings and stock buybacks. Notably, DE benefited from $18 million of NOI from owned real estate in Q4, up from $6 million in the prior quarter, as we recognized a full quarter impact from properties taken onto the balance sheet in Q3. Our hotels represent 1/3 of our owned real estate portfolio, which ended the quarter at $1.3 billion across 12 properties. We anticipate cash flows from owned real estate to decline in Q1, which typically experiences seasonal softening relative to other calendar quarters.

Speaker #3: Thanks . You know , obviously you've been kind of your showing support for the stock through share repurchase . I'm sure you saw the actions of one of your competitors earlier this month .

That we have.

In terms of Optionality in the markets, but we feel really good about where we stand today.

Alright, I appreciate that thank you.

Speaker #3: just Just thoughts on you other ways might look to to kind of validate or support the value of the loans in the portfolio .

Thank you we'll take our next question from Jade Rahmani with <unk>.

[Analyst] (UBS): Great. I appreciate that. Thank you.

Operator: Thank you. We'll take our next question from Jade Rahmani with KBW.

Thank you very much could you provide your views.

Oreo portfolio.

Speaker #4: Thanks , Doug . This is Tim . You know , I think that , you know , we certainly , you know , take a look at all opportunities to maximize shareholder value in the market .

Jade Rahmani: Thank you very much. Could you provide your views on the REO portfolio? Do you see upside in key assets? And can you also discuss the New York office REO that took place in December 2025, based on the disclosure? It looks like, you know, an attractive basis, so I wanted to get your thoughts there.

Do you see upside in key assets and can you also discuss the New York Office Oreo that took place in December 2025 based on the disclosure.

Speaker #4: And I think we feel really good about the direction of the stock to date , given the performance in 2025 and where we stand .

It looks like.

An attractive basis.

Speaker #4: You know , we still have a discount to book value to make up , but a relatively modest one . So we'll continue to look at all options .

So wanted to get your thoughts there.

Tony Marone: However, we expect the portfolio to consistently generate positive DE and provide further ballast to earnings and dividend coverage over time as we eventually exit these assets and repatriate capital into new investments at target returns. We also recognized $21 million of depreciation and amortization, or D&A, related to our owned real estate in the fourth quarter, which is included in GAAP earnings but excluded from DE. Accumulated D&A is also reflected in our book value, which ended the year at $20.75 per share. In total, book value includes $0.47 per share of accumulated D&A and $1.76 per share of total CECL reserves, of which $1.24 is attributable to the general reserve and $0.52 to asset-specific reserves.

Anthony Marone: However, we expect the portfolio to consistently generate positive DE and provide further ballast to earnings and dividend coverage over time as we eventually exit these assets and repatriate capital into new investments at target returns. We also recognized $21 million of depreciation and amortization, or D&A, related to our owned real estate in the fourth quarter, which is included in GAAP earnings but excluded from DE. Accumulated D&A is also reflected in our book value, which ended the year at $20.75 per share. In total, book value includes $0.47 per share of accumulated D&A and $1.76 per share of total CECL reserves, of which $1.24 is attributable to the general reserve and $0.52 to asset-specific reserves.

Yes, Jade Hey, it's Austin.

Speaker #4: During the quarter , as you mentioned , a really good tool in the toolkit was was definitely stock buybacks . And we analyzed , you know , everything that we have , you know , in optionality in the terms of markets .

I would say with respect to Oreo I think the way we look at that as we've discussed before and it's really a go forward return analysis in terms of our decision making there.

Austin Peña: Yeah, Jade. Hey, it's Austin. You know, I would say with respect to REO, I think the way we look at that, you know, as we've discussed before, is it's really a go-forward return analysis in terms of our decision-making there. And, you know, these are really investment decisions that we think are really well informed due to the really unique data and information that we have access to. You know, I think, specifically, you know, we are seeing some improved fundamentals and investor demand in places like New York. With respect to that asset, you know, as you, as you mentioned, it is, you know, an asset in New York that we, that we hold at a very low basis, you know, a significant discount to the value, when the loan was originated.

Speaker #4: But we feel really good about where we stand today .

And these are really investment decisions that we think are really well informed due to the really unique data and information that we have access to.

Speaker #3: Great . I appreciate that . Thank you .

Speaker #2: Thank you. We'll take our next question from Jade Rahmani with KBW.

I think specifically we are seeing some improved fundamentals in investor demand in places like New York with respect to that asset.

Speaker #5: Thank you very much. Could you provide your views on the Rio portfolio? Do you see upside in key assets, and can you also discuss the New York?

As you mentioned it is an.

Asset in New York.

Hold on a very low basis, a significant discount to the value.

Speaker #5: Office ? Rio that took place December 2025 , in based on the disclosure , it looks like , you know , attractive an wanted .

When the loan was originated.

And we are seeing improvement in markets like that and so as we think about sort of the.

Anthony Marone: Our total CECL reserve declined nearly 60% quarter-over-quarter as a result of the reserve charge-offs I mentioned earlier. Importantly, these charge-offs had a de minimis impact on book value, executed largely in line with carrying values. Looking back over the course of 2025, book value benefited from a net $33 million CECL recovery from resolutions executed above carrying values. This, alongside stock buybacks, added $0.30 per share to book value this year. Earnings from our unconsolidated joint ventures also continued to grow, generating $7 million of DE in Q4 versus $3 million in the prior quarter. This was driven by income and repayments in our bank loan portfolios, which accelerate their unamortized purchase discount, and the continued growth in our net lease portfolio Austin mentioned earlier.

Austin Peña: You know, we are seeing improvement in markets like that. And so as we think about sort of the potential to exit these assets, you know, over time, as I mentioned in my earlier remarks, you know, we do think several assets are well positioned to look to exit over the course of the year. You know, we'll be very thoughtful and strategic about that. You know, we are selling one asset in Texas. You know, we're also seeing positive trends in San Francisco. And so, you know, as we go through the rest of the year, you know, I think we'll start to look at those sale opportunities, you know, as the market opportunities sort of present themselves.

Potential to exit these assets over time as I mentioned in my earlier remarks.

Speaker #5: to get your basis So there .

Speaker #4: Yeah . Jade . Hey , it's Austin . know , I You would say with respect to Rio , I think the way we look at that , you know , as we've discussed before , it's forward really a go return analysis in terms of our decision making .

We do think several assets are well positioned to to look to exit over the course of the year.

It will be very thoughtful and strategic about that.

Speaker #4: There . And you are really know , these investment decisions that we think are really well informed due to the really unique data and information that we have access to .

We are selling one asset in Texas, We're also seeing positive trends in San Francisco.

So as we as we go through the rest of the year I think we'll start to look at look at those sale opportunities.

Speaker #4: You know , I think specifically , you know , we are seeing some improved fundamentals and investor places like New York with respect to that asset .

As.

As the market opportunities present themselves.

Speaker #4: you as you You know , as mentioned , it is , you know , an asset in New York that we that we hold at a very low basis .

Thank you and just a follow up on the New York Rio could you give any color as to origination vintage current percent occupancy rates and also.

Speaker #4: You know , significant discount to the value when the loan was originated . And , you know , we are seeing improvement in in markets like that .

Jade Rahmani: Thank you. And just a follow-up on the New York REO. Could you give any color as to origination, vintage, current percent occupancy rate, and also dollar amount of CapEx you anticipate spending on the asset?

Tony Marone: As a reminder, our balance sheet reflects our $217 million net equity investment in the net lease and bank loan portfolio joint ventures. But as Austin noted, on a gross basis, our share of the investments in these strategies totaled $940 million and are a growing component of our increasingly diverse investment portfolio. Turning to BXMT's capitalization, our balance sheet remains in excellent shape. We ended the year with $1 billion of liquidity, debt to equity within our target range, and a weighted average corporate debt maturities of 4.3 years, with no maturities until 2027. As Tim mentioned, we've been active in securitized debt markets, positioning our balance sheet for further resilience.

Anthony Marone: As a reminder, our balance sheet reflects our $217 million net equity investment in the net lease and bank loan portfolio joint ventures. But as Austin noted, on a gross basis, our share of the investments in these strategies totaled $940 million and are a growing component of our increasingly diverse investment portfolio. Turning to BXMT's capitalization, our balance sheet remains in excellent shape. We ended the year with $1 billion of liquidity, debt to equity within our target range, and a weighted average corporate debt maturities of 4.3 years, with no maturities until 2027. As Tim mentioned, we've been active in securitized debt markets, positioning our balance sheet for further resilience.

Miller amount of Capex, you anticipate spending on the asset.

Speaker #4: And so as we think about sort of the potential to exit these assets , you know , over time , as I mentioned in my earlier remarks , you know , we do think several assets are well positioned to to look to exit over the course of the year .

Yes.

Was a loan that we originated for Covid.

Austin Peña: Yeah, you know, this was a loan that we originated before COVID. You know, as I mentioned, we hold it at a very significant discount to, you know, the prior, the prior value at origination. You know, the asset is pretty well leased today. There's been strong leasing demand. And to the extent, you know, further leasing were to appear, you know, were to materialize, you know, I think we'd look at that and analyze that, whether that would be accretive for us to, to, to invest the capital to capture those leasing opportunities. That's really how we look at all investment in our REO assets. You know, I'd, I'd say to the extent, you, you look at our prior disclosures, this loan was impaired and, and, you know, we had a significant reserve against it.

As I mentioned, we all have it at a very significant discount to the prior.

Our value at origination.

Speaker #4: You be very know , we'll thoughtful and strategic about that . You know , we are selling one asset in Texas . You know , we're also seeing positive trends in San Francisco .

The asset is pretty well leased today theres been strong leasing demand.

And to the extent further leasing were to appear were to materialize I think we'd look at that and analyze that whether that would be accretive for us to.

Speaker #4: And so , you know , as we we go as through the rest of the year , you know , I think we'll start to look at , you know , look at those sale opportunities , you know , as , market opportunities present themselves .

The capital to capture those leasing opportunities and Thats really how we look at all investment in our Oreo assets.

Tony Marone: We priced a $1 billion CLO in January, our sixth CLO transaction, and completed our inaugural European CMBS issuance in December, which adds yet another tool to our toolkit and demonstrates the constant innovation of our financing strategies by our capital markets team. We ended the year with 15 bank counterparties, providing $19 billion of total borrowing capacity. We added 1 new counterparty in 2025 and another just recently in February. And given our strong track record as a borrower and the deep relationships with these lenders across Blackstone, we have successfully added or converted nearly $6 billion of credit facilities to a non-mark-to-market construct, driving total non-mark-to-market borrowings from 67% at the beginning of the year to nearly 85% today.

Anthony Marone: We priced a $1 billion CLO in January, our sixth CLO transaction, and completed our inaugural European CMBS issuance in December, which adds yet another tool to our toolkit and demonstrates the constant innovation of our financing strategies by our capital markets team. We ended the year with 15 bank counterparties, providing $19 billion of total borrowing capacity. We added 1 new counterparty in 2025 and another just recently in February. And given our strong track record as a borrower and the deep relationships with these lenders across Blackstone, we have successfully added or converted nearly $6 billion of credit facilities to a non-mark-to-market construct, driving total non-mark-to-market borrowings from 67% at the beginning of the year to nearly 85% today.

I'd say to the extent.

Speaker #5: Thank you . And just a follow up on the New York Rio , could you give any color as to origination vintage , current percent occupancy rate and also dollar amount of CapEx ?

You look at our prior disclosures this loan was impaired and we had a significant reserve against it.

And so when we think about the go forward opportunity in terms of eggs.

Speaker #5: You anticipate spending on the asset ?

Austin Peña: And so, you know, when we think about the go-forward opportunity, in terms of exiting the asset, I think that, you know, we do see the opportunity to, you know, capture additional upside potentially on that asset and others over time.

Exiting the asset I think that.

Speaker #4: You know , Yeah . this was a loan that we originated before Covid . You know , as I mentioned , we hold it at a very significant discount to , you know , the prior , the prior at value origination , you know , the asset is pretty well leased today .

We do see the opportunity to capture additional upside potentially on that asset and others over time.

Thank you very much.

Okay.

We will take our next question from Chris smaller with citizens capital markets.

Jade Rahmani: Thank you very much.

Speaker #4: There's been strong leasing demand . And to the extent , you know , further leasing were to appear , you know , where to materialize .

Operator: We'll take our next question from Chris Mueller with Citizens Capital Markets.

Hey, guys. Thanks for taking the questions and congrats on a really solid progress on low mark outs in the quarter.

[Analyst] (Citizens JMP): Hey, guys. Thanks for taking the questions, and congrats on a really solid progress on loan workouts in the quarter. I see in the 10-K that you guys made a $75 million investment in the Blackstone BREDS Fund. Can you just talk about the type of investments that will go into that fund, and if there's any overlap on, what you guys are already doing?

Speaker #4: I think we'd look at that and analyze that . Whether that would be accretive for us to , to to invest the capital to capture opportunities .

Tony Marone: As my tenure as CFO comes to an end, I can confidently say that all aspects of BXMT's business are in great shape, and the company is on strong footing to capitalize on opportunities as real estate and capital markets continue to recover. I'm thrilled for Marcin to take the CFO role at an exciting time for the company and look forward to watching him and the rest of the team continue delivering strong results for BXMT shareholders. I will now ask the operator to open the call to questions.

Anthony Marone: As my tenure as CFO comes to an end, I can confidently say that all aspects of BXMT's business are in great shape, and the company is on strong footing to capitalize on opportunities as real estate and capital markets continue to recover. I'm thrilled for Marcin to take the CFO role at an exciting time for the company and look forward to watching him and the rest of the team continue delivering strong results for BXMT shareholders. I will now ask the operator to open the call to questions.

I'd say in the 10-K that you guys made a $75 million investment in the Blackstone Breads Fund can you just talk about the type of investments that will go into that fund and if theres any overlap.

Speaker #4: That's really how we look at all investment in our Rio assets . You know , I'd say to the extent , you know , you look at our prior disclosures , this loan was impaired and , you know , we had a significant reserve against it .

Guys already doing.

Yes. This is often I can take that.

As you mentioned, we did make an investment.

Austin Peña: ... Yeah, this is Austin. I can take that. You know, as you mentioned, we did make an investment in a new Blackstone-managed real estate credit fund. That fund will be focused on, you know, high quality core plus real estate in the US and Canada. We really think it's a great example of BXMT's ability to sort of deliver unique and compelling investments for our investors due to our scale of our platform and our affiliation with the Blackstone Real Estate Credit business. I should note that, you know, BXMT pays no fees for this fund commitment. The investments will be sourced and underwritten and managed by our team. You know, ultimately, we do think that having- adding some exposure to this profile investment to BXMT is a good risk-adjusted return.

And our new Blackstone managed real estate credit fund that fund will be focused on high quality core plus real estate in the U S and Canada, we really think it's a great example of <unk>.

Speaker #4: So , you know , when we think about the go forward opportunity in terms of exiting the asset , I think that , you know , we do see the the opportunity to , you know , capture additional upside potentially on that asset .

Austin Peña: Thank you. As a reminder, please press star one to ask a question. We ask you to limit yourself to one question and one follow-up question to allow as many callers to join the queue as possible.

Operator: Thank you. As a reminder, please press star one to ask a question. We ask you to limit yourself to one question and one follow-up question to allow as many callers to join the queue as possible.

<unk> ability to sort of deliver unique and compelling investment for our investors due to our scale of our platform and our affiliation with the Blackstone real estate credit business.

Speaker #4: others And over time .

Operator: ... We will take our first question from Doug Carter with UBS.

Speaker #5: Thank you much very .

I should note that <unk> pays no fees fitness fitness fund commitment the investments will be sourced and underwritten and managed by our team ultimately, we do think that having adding some exposure to this profile of investment to <unk> is a good risk adjusted return and so adding investments and a diversified.

Speaker #2: Next, we'll take our question from Chris Mueller with Citizens Capital Markets.

Doug Harter: Thanks. You know, obviously you've been kind of, you know, showing your support for the stock through share repurchase. And I'm sure you saw the actions of one of your competitors earlier this month. You know, just thoughts on other ways you might look to kind of validate or support the value of the loans in the portfolio.

Douglas Harter: Thanks. You know, obviously you've been kind of, you know, showing your support for the stock through share repurchase. And I'm sure you saw the actions of one of your competitors earlier this month. You know, just thoughts on other ways you might look to kind of validate or support the value of the loans in the portfolio.

Speaker #6: Hey guys . Thanks for taking the And questions . congrats on a really solid progress on loan markets in the quarter . I see in the .

Speaker #6: 10-K that you guys made $75 million investment in the Blackstone Breads fund . Can talk about you just the type that will go of fund ?

<unk> way with this type of profile, we think is quite attractive for RPX empty.

Austin Peña: So adding investments in a diversified way with this type of profile, we think is quite attractive for BXMT.

Speaker #6: And if there's any overlap on what you guys are already doing ?

Austin Peña: Thanks, Doug. This is Tim. You know, I think that, you know, we certainly, you know, take a look at all opportunities to maximize shareholder value in the market, and I think we feel really good about the direction of the stock, to date, given the performance in 2025. And where we stand, you know, we still have a discount to book value to make up, but a relatively modest one. So we'll continue to look at, you know, all options. During the quarter, as you mentioned, a really good tool in the toolkit was definitely in stock buybacks. And we analyzed, you know, everything that we have, you know, in terms of optionality in the markets, but we feel really good about where we stand today.

Timothy Hayes: Thanks, Doug. This is Tim. You know, I think that, you know, we certainly, you know, take a look at all opportunities to maximize shareholder value in the market, and I think we feel really good about the direction of the stock, to date, given the performance in 2025. And where we stand, you know, we still have a discount to book value to make up, but a relatively modest one. So we'll continue to look at, you know, all options. During the quarter, as you mentioned, a really good tool in the toolkit was definitely in stock buybacks. And we analyzed, you know, everything that we have, you know, in terms of optionality in the markets, but we feel really good about where we stand today.

Got it and that's a good segue into my follow up so I guess you guys have made some small relative to your size investments over the last year or so the agency multi family lending JV. The net lease the <unk> investment in the bank loan JV.

Speaker #4: Yeah , this is Austin . I can take that . You know , as you mentioned , we did make an investment in a , in a , in a new Blackstone managed real estate credit fund .

Richard Shane: Got it, and that's a good segue into my follow-up. So I guess you guys have made some small, relative to your size, investments over the last year or so: the agency multifamily lending JV, the net lease, the BREDS investment, and then the bank loan JV. So I guess my question would be is: What do you guys expect BXMT to look like over the coming years? And I guess, how does the bridge business fit into that? Is it gonna stay the primary focus, or will those other businesses kind of grow over time?

Speaker #4: That fund will be focused on high-quality core plus real estate in the US and Canada. We really think it's a great example of VCs' ability to sort of deliver unique and compelling investments for our investors due to the scale of our platform and our affiliation with the Blackstone Real Estate Credit business.

So my question would be is what do you guys expect <unk> to look like over the coming years and I guess, how does the bridge business fit into that is it going to stay the primary focus.

Or will those other businesses kind of grow overtime.

Yes, I think as you as you noted I think you have seen an intentional effort for us to diversify.

Speaker #4: I should note that , you know , Vcmp pays no fees for this for this fund commitment , the investments will be sourced and underwritten and managed by our team .

Austin Peña: Yeah, I think, you know, as you, as you noted, I think you have seen a, an intentional effort for us to diversify the, the portfolio. You know, I don't think we're gonna always be a, a, large lender in a sort of our core lending strategy. That isn't going away. But when you look at the profile of the investments that we've been making, adding net lease, adding the granular bank loan portfolios, you know, these other ways to sort of further diversify the earnings composition and profile of the investments that we have within the company, that is definitely intentional. And so over time, we would expect to continue to sort of pursue that strategy.

The portfolio I don't think were going to be we're going to always be a.

Speaker #4: You know , ultimately , we do think that having adding some exposure to this profile investment to Vcmp is a good risk adjusted return .

Doug Harter: Great. I appreciate that. Thank you.

Douglas Harter: Great. I appreciate that. Thank you.

A large lender in our sort of our core lending strategy that isn't going away, but when you look at the profile of the investments that we've been making adding net lease adding the granular bank loan portfolios.

Operator: Thank you. We'll take our next question from Jade Rahmani with KBW.

Speaker #4: And so adding investments in a diversified way with this type of profile , we think is quite attractive for for Vcmp

Other ways to sort of further diversify the earnings composition and profile of the investments that we have within the company that is definitely intentional.

Speaker #6: good segue into my Got it . And follow up . So I guess you guys have small made some relative to your size investments over the last year or so .

So over time, we would expect to continue to pursue that strategy.

Speaker #6: agency The multifamily lending JV , the net lease , the investment , and then the bank loan JV . So I guess my question would be is what do you guys expect Vcmp to look like over the coming years ?

In any way if there's any way for us to.

Really just diversify our credit exposures and risks.

Austin Peña: You know, in any way, if there's any way for us to really just diversify our credit exposures and risks, and generate the risk-adjusted returns that we believe are compelling for the company, you know, we're going to continue to pursue that.

And generate the risk adjusted returns that we believe are compelling for for the company, we're going to continue to pursue that.

Speaker #6: And I guess how does the bridge business fit into that ? Is it going to stay the primary focus , or will those other businesses kind of grow over time ?

Austin Peña: Yeah, Jade, hey, it's Austin. You know, I would say with respect to REO, I think the way we look at that, you know, as we've discussed before, is it's really a go-forward return analysis in terms of our decision-making there. And, you know, these are really investment decisions that we think are really well informed due to the really unique data and information that we have access to. You know, I think, specifically, you know, we are seeing some improved fundamentals and investor demand in places like New York. With respect to that asset, you know, as you mentioned, it is, you know, an asset in New York that we hold at a very low basis, you know, a significant discount to the value when the loan was originated.

Got it it makes a lot of sense I. Appreciate you guys, taking the questions today.

Speaker #4: Yeah , I think , you know , as you as you noted , I think you have seen an intentional effort for us to diversify the portfolio .

Richard Shane: Got it. Makes a lot of sense. Appreciate you guys taking the questions today.

We will take our next question from Gabe <unk> with Raymond James.

Operator: We'll take our next question from Gabe Poggi, with Raymond James.

Hey, good morning, Thanks for taking the questions you guys provided some detail on the new origination front as it pertains to industrial can you put any color around what you guys are doing in multifamily and then the second question I'll just give it to you now is how are you thinking about total leverage.

Speaker #4: You know , I don't think we're be we're going to going to always be a large lender in a sort of our core lending strategy that isn't going away .

[Analyst] (Raymond James): Hey, good morning. Thanks for taking the questions. You guys provided some detail on the new origination front as it pertains to industrial. Can you put any color around what you guys are doing in multifamily? And then a second question, I'll just give it to you now, is: How are you thinking about total leverage? You're almost 3.9 times right now. How do you think about that going forward? Thanks.

Speaker #4: But when you look at the profile of the investments that we've been making , adding net lease , adding the granular bank loan portfolios , you know , these ways to other diversify further sort of the earnings composition and investments profile of the that we have within the company .

Almost three nine times right now how do you think about that going forward. Thanks.

Yeah, Hey, it's Austin, Thanks, Gabe I'll take the first part of that question then I'll pass it over to Martin for the second point.

Speaker #4: That is definitely intentional . And so over time , we would expect to continue to sort of pursue that strategy . You know , in any way , if there's any way for us to really just diversify our credit exposures and risks and generate the risk adjusted returns that we that we believe are compelling for , for the company , you know , we're going to continue to pursue that .

Austin Peña: And, you know, we are seeing improvement in markets like that. So as we think about sort of the potential to exit these assets, you know, over time, as I mentioned in my earlier remarks, you know, we do think several assets are well positioned to look to exit over the course of the year. You know, we'll be very thoughtful and strategic about that. You know, we are selling one asset in Texas. You know, we're also seeing positive trends in San Francisco. So, you know, as we go through the rest of the year, you know, I think we'll start to look at those sale opportunities, you know, as the market opportunities sort of present themselves.

Austin Peña: Yeah. Hey, it's Austin. Thanks, Gabe. I'll take the first part of that question, then I'll pass it over to Marcin for the second point. You know, I think in terms of multifamily, you know, we really like the opportunity we see in multifamily today. You know, with respect to the performance that we've seen in our portfolio, you know, our multifamily is 100% performing. And, you know, when we think about the opportunity set in that space, you know, we really just like the setup for multifamily and rental housing in general. You know, it's a structurally undersupplied. New construction starts are down 60% from peak, and it's a really highly liquid and granular asset class. And so that's why you see us lending in that space.

I think in terms of multifamily we really like.

The opportunity we see in multifamily today.

With respect to the performance that we've seen in our portfolio our multifamily.

It's 100% performing.

And.

Speaker #6: Got it makes a lot of sense . Appreciate you guys taking the questions today .

When we think about.

The opportunity set in that space, we really just like the setup for multifamily rental housing in general.

Speaker #2: We'll take our next question from Gabe Poggi with Raymond James.

It's a structurally under supplied new construction starts are down 60% from peak.

Speaker #6: Hey good morning . Thanks for taking the questions . You provided some detail on the new origination front as it pertains to industrial .

And it's a really highly liquid and granular asset class and so that's why you see us.

Speaker #6: Can you put any color around what you guys are doing in multifamily? And then a second question, I'll just give it to you now, is how are you thinking about total leverage?

Lending in that space.

I think that.

Again, when you look at the performance in our portfolio I think that's been that's been demonstrated.

Austin Peña: You know, I, I think that, you know, again, when you look at the performance in our portfolio, I think that's been, that's been demonstrated. And so that's, that's the profile, I'd say, and the reason we're, we're active in that area. Maybe Marcin, if you wanna handle the second part of the question.

Speaker #6: You're almost 3.9 times right now . How do you think about that going forward ? Thanks .

And so that's the profile I would say and the reason where we're active in that area.

Speaker #4: Yeah . Hey , it's Austin . Thanks , I'll take the first part of that I'll pass it question , Gabe . then over to Marcin for the second point .

Martin do you want to handle the second part of that sure happy to.

Look I think our leverage we think of it.

Speaker #4: You know , I in multifamily , you know , we really like the opportunity we see in multifamily today . You know , with respect to the performance that we've seen in our portfolio , you know , our multifamily is 100% performing .

Marcin Urbaszek: Sure, happy to. Look, I think our leverage, we think of it, excuse me, in terms of where it is within our targets, as Tony mentioned, it is within our target where we are. It's a function also of what type of leverage we have. As Tony mentioned, a lot of our financing is non-mark-to-market. We have been active in addressing different maturities within our corporate debt profile, as well as reducing costs on both the asset financing and corporate financing. So it's a function of investment opportunities where the balance sheet is, what's available to us from a financing perspective in the market. So we're very thoughtful about it, but again, it's within our targets, and we will maintain where it is.

Excuse me in terms of.

Austin Peña: Yeah, you know, this was a loan that we originated before COVID. You know, as I mentioned, we hold it at a very significant discount to, you know, the prior, the prior value at origination. You know, the asset is pretty well leased today. There's been strong leasing demand. And to the extent, you know, further leasing were to appear, you know, were to materialize, you know, I think we'd look at that and analyze that, whether that would be accretive for us to invest the capital to capture those leasing opportunities. That's really how we look at all investment in our REO assets. You know, I'd say to the extent, you know, you look at our prior disclosures, this loan was impaired and, you know, we had a significant reserve against it.

Where it is within our target and as Tony mentioned as it is within our targeted where we were.

We are.

It's a function also of what type of leverage we have assignments and a lot of our financing is non mark to market.

We have been active in <unk>.

Speaker #4: And , you know , when we think about the opportunity set in that space , you know , we really just like the setup for multifamily rental housing and in general .

Yes.

Different maturities within our within our corporate debt profile as well as reducing costs on both the asset finance and corporate financing so.

Speaker #4: You know , it's a structurally under-supplied new construction starts are down 60% from peak . And it's a really highly liquid and granular asset class .

It's a function of investment opportunities, where the balance sheet is.

Whats available to us from a financing perspective in the market. So we're very thoughtful about it but again its within our targets and we will maintain Wednesday awareness.

Speaker #4: And so that's why you see us lending in that space . You know , I think that , you know , again , when you look at the performance in our portfolio , I think that's been that's been demonstrated .

Okay.

Speaker #4: And so that's that's the profile , I'd say . And the reason we're , we're active in that area , maybe margin if you want to second part of that .

Thank you we'll take our next question from Rick Shane with J P. Morgan.

Austin Peña: And so, you know, when we think about the go-forward opportunity, in terms of exiting the asset, I think that, you know, we do see the, the opportunity to, you know, capture additional upside potentially on that asset and, and others over time.

Thank you guys for taking my questions.

Operator: Thank you. We'll take our next question from Rick Shane with JP Morgan.

Speaker #4: handle the

Speaker #7: . Look Sure . our to Happy leverage I think we think of it excuse me in terms of where it is within our targets , as Tony mentioned , is it is within our target where we where we are .

Tony Thank you for all your help over the years in marson, congratulations on the new gig.

Richard Shane: Thank you, guys, for taking my questions. And Tony, thank you for all your help over the years, and Marcin, congratulations on the new gig. Most of my questions have been asked and answered at this point, but you know, as we sort of look forward to 2026, it feels like the expectation is, given where you are in leverage, and unless there's additional equity capital available at some point, portfolio will be roughly flat in size, maybe modest growth. I'm curious, sort of the timeline as you resolve loans and redeploy capital, potentially from REO resolutions, what you think the path back to normalized ROE might look like?

Most of my questions have been asked and answered at this point, but.

As we sort of look forward to 2026.

Speaker #7: It's a function also of what type of leverage we have . As Tony mentioned , a lot of our financing is not mark to market .

Jade Rahmani: Thank you very much.

Operator: We'll take our next question from Chris Mueller with Citizens Capital Markets.

It feels like the expectation is.

Speaker #7: We have been active in addressing different maturities within our within our corporate debt profile , as well as reducing costs both the on asset finance and corporate financing .

Doug Harter: Hey, guys. Thanks for taking the questions, and congrats on a really solid progress on loan markouts in the quarter. I see in the 10-K that you guys made a $75 million investment in the Blackstone BREDS Fund. Can you just talk about the type of investments that will go into that fund, and if there's any overlap on what you guys are already doing?

Christopher Muller: Hey, guys. Thanks for taking the questions, and congrats on a really solid progress on loan markouts in the quarter. I see in the 10-K that you guys made a $75 million investment in the Blackstone BREDS Fund. Can you just talk about the type of investments that will go into that fund, and if there's any overlap on what you guys are already doing?

Given where you are on leverage.

And unless there is additional equity capital available at some point portfolio.

Speaker #7: So it's a it's a it's a it's a function of investment opportunities where the balance sheet is what's available to us from a financing perspective in the market .

We will be roughly flat in size, maybe modest growth.

I'm curious sort of the timeline as you resolve loans and redeploy capital potentially from Oreo resolutions, what do you think the path back to normalized ROE might look like.

Speaker #7: So we're very thoughtful about it . But again , it's within our targets . And we we will maintain we're maintain where it is .

Austin Peña: Yeah, this is Austin. I can take that. You know, as you mentioned, we did make an investment in a new Blackstone-managed real estate credit fund. That fund will be focused on, you know, high quality core plus real estate in the US and Canada. We really think it's a great example of BXMT's ability to sort of deliver unique and compelling investments for our investors due to our scale of our platform and our affiliation with the Blackstone Real Estate Credit business. I should note that, you know, BXMT pays no fees for this fund commitment. The investments will be sourced and underwritten and managed by our team. You know, ultimately, we do think that adding some exposure to this profile investment to BXMT is a good risk-adjusted return.

Speaker #2: Thank you . We'll take our next question from Rick Shane with J.P. Morgan .

Yes, Rick Hey, it's Austin I can I can take that.

Speaker #6: Thank you guys for taking my questions . And Tony , thank you for all your help over the years . And Marcin , congratulations on the new gig .

As Martin mentioned, our portfolio is we think we're pretty well invested.

Austin Peña: Yeah, Rick. Hey, it's Austin. I can take that. You know, as Marcin mentioned, you know, the portfolio is, we think we're pretty well invested. You know, I do think that, you know, there's, we have capacity, we have liquidity, you know, of $1 billion today. You know, but we think that's actually a good position to be in. You know, we have a very broad pipeline. There's a lot of opportunities, but given the position we're in, we can be pretty selective... you know, across that pipeline.

And I do think that there is.

Speaker #6: Most of my questions have been asked and answered at this point , but , you know , as we sort of look forward to 2026 , it feels like the expectation is given where you are in leverage , unless there's additional equity capital available at some point , portfolio will be roughly flat in size , maybe modest growth .

We have capacity, we have liquidity of $1 billion today.

But we think that's actually a good position to be and we have a very broad pipeline, there's a lot of opportunities, but given the position. We're in we can be pretty selective.

That pipeline.

In terms of the.

Oreo timeline and sort of exiting those assets as I mentioned earlier I think some of those assets are pretty well positioned for us to look at.

Austin Peña: You know, in terms of, you know, the REO timeline and sort of exiting those assets, as I mentioned earlier, you know, I think some of those assets are pretty well positioned for us to look at, you know, exiting over the course of this year. You know, some others may take longer. You know, but we do think that, you know, those loans, or those assets are, you know, generating a below-target ROE. And so as we, exit those positions and redeploy that capital at our target returns, you know, that should be supportive of earnings over time.

Austin Peña: And so adding investments in a diversified way with this type of profile, we think is quite attractive for BXMT.

Exiting over the course of this year, some others may take longer.

Speaker #6: I'm curious, sort of the timeline as you resolve loans and redeploy capital, potentially from Rio resolutions, what you think the path back to normalized ROE might look like?

But we do think that those loans are those assets are earning.

Earning generating a below target Roe.

Marcin Urbaszek: ... Got it, and that's a good segue into my follow-up. So I guess you guys have made some small relative to your size, investments over the last year or so, the agency multifamily lending JV, the net lease, the BREDS investment, and then the bank loan JV. So I guess my question would be is: What do you guys expect the BXMT to look like over the coming years? And I guess, how does the bridge business fit into that? Is it gonna stay the primary focus, or will those other businesses kind of grow over time?

Christopher Muller: ... Got it, and that's a good segue into my follow-up. So I guess you guys have made some small relative to your size, investments over the last year or so, the agency multifamily lending JV, the net lease, the BREDS investment, and then the bank loan JV. So I guess my question would be is: What do you guys expect the BXMT to look like over the coming years? And I guess, how does the bridge business fit into that? Is it gonna stay the primary focus, or will those other businesses kind of grow over time?

And so as we exit those positions and redeploy that capital at our target returns.

Speaker #4: Yeah . Rick . Hey , it's Austin , I can I can take that . You know , as mentioned , you know the the portfolio is we think we're invested .

That should be supportive of earnings overtime.

Got it Okay. That's helpful. And then just one other question.

As you continue to.

Harsh Hemnani: Got it. Okay, that's helpful. And then just one other question. As you continue to... or as you've substantially exited your non-accruing assets and assets with specific reserves and starting to deploy a little bit more capital, what should we think about as an initial general reserve on new loans? Sort of ballpark range, so we can start to sort of dial in what our overall reserves will look like.

Speaker #4: And , you know , I do you know , that , think we have there's capacity . We have liquidity , you know , of $1 billion today .

Substantially exited your.

Non occurring.

Assets and assets with specific reserves and starting to deploy a little bit more capital what should we think about as an initial general reserve.

Speaker #4: You know , but we think that's actually a good position to be in . You know , we have a very broad pipeline .

Speaker #4: There's a lot of opportunities . But given the position we're in , we can be pretty selective . You know , across that pipeline , you know , in terms of , you know , the Rio timeline and sort of exiting those assets , as I mentioned earlier , I think some of those assets are pretty well positioned for us to look at , you know , exiting over the course of this year .

Austin Peña: Yeah, I think, you know, as you, as you noted, I think you have seen an intentional effort for us to diversify the portfolio. You know, I don't think we're gonna always be a large lender in a sort of our core lending strategy. That isn't going away. But when you look at the profile of the investments that we've been making, adding net lease, adding the granular bank loan portfolios, you know, these other ways to sort of further diversify the earnings composition and profile of the investments that we have within the company, that is definitely intentional. And so over time, we would expect to continue to sort of pursue that strategy.

On new loans sort of ballpark range. So we can start to sort of dial in.

But our overall reserves will look like.

Yes, I think if you just look at the General reserve today, I think that's a pretty good proxy.

Speaker #4: You know , some others may take longer . You know , but we do think that , you know , those loans or those assets are are , you know , earning , generating a below target ROE .

Austin Peña: Yeah, you know, I think if you just look at the general reserve today, I think that's a pretty good proxy, you know, for where we see, you know, the reserve for the vast majority of the portfolio as being appropriate. And so, you know, as we grow the portfolio or shrink the portfolio, I think that's a pretty good place to look.

For for where we see the.

The reserve for the vast majority of the portfolio.

As being appropriate and so as we as we grow the portfolio or shrink the portfolio I think I think that's a pretty good place to look.

Speaker #4: And so as we exit those positions and redeploy that capital at our target returns , you know , that should that should be supportive of earnings over time .

Great.

Austin Peña: You know, in any way, if there's any way for us to really just diversify our credit exposures and risks, and generate the risk-adjusted returns that we, that we believe are compelling for, for the company, you know, we're going to continue to pursue that.

You guys so much.

Speaker #6: Got it . Okay . That's helpful . And then just one other question . As you continue to or as you've substantially exited your non accruing assets assets with in specific reserves and starting to deploy a little bit more capital , what should we think about as an initial general reserve on new loans .

We'll take our next question from John Nicole Dermis with BTG.

Harsh Hemnani: Great. Thank you guys so much.

Operator: We'll take our next question from John Nickodemus with BTIG.

Thank you and good morning.

See we were encouraged to see the significant headway made on your impaired loan balance during the quarter was that more a matter of strategy and timing on your teams under for the specific assets or was there a notable shift in the broader market as a whole that made these resolutions more achievable.

Thomas Catherwood: Thank you, and good morning. Obviously, we were encouraged to see the significant headway made on your impaired loan balance during the quarter. Was that more a matter of strategy and timing on your team's end or for the specific assets? Or was there a notable shift in the broader market as a whole that made these resolutions more achievable? Thanks.

Marcin Urbaszek: Got it. Makes a lot of sense. Appreciate you guys taking the questions today.

Christopher Muller: Got it. Makes a lot of sense. Appreciate you guys taking the questions today.

Operator: We'll take our next question from Gabe Poggi, with Raymond James.

Stephen Laws: Hey, good morning. Thanks for taking the questions. You guys provided some detail on the new origination front as it pertains to industrial. Can you put any color around what you guys are doing in multifamily? And then a second question, I'll just give it to you now, is: How are you thinking about total leverage? You're almost 3.9 times right now. How do you think about that going forward? Thanks.

Gabriel Poggi: Hey, good morning. Thanks for taking the questions. You guys provided some detail on the new origination front as it pertains to industrial. Can you put any color around what you guys are doing in multifamily? And then a second question, I'll just give it to you now, is: How are you thinking about total leverage? You're almost 3.9 times right now. How do you think about that going forward? Thanks.

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Speaker #6: Sort of ballpark range so we can start to sort of dial in what our overall reserves will look like ?

Thanks, Sean This is Tim I'd say, it's reflective of a couple of things one just the strength of our asset management team and their ability to work through.

Austin Peña: Thanks, John. This is Tim. I'd say it's reflective of a couple of things. One, just the strength of our asset management team, and their ability to work through, you know, challenges pretty swiftly. We have a large-scale team. It's one of the benefits of our platform. That's certainly part of it. I think market liquidity does help as well. Just, there's more transparency in the market in terms of valuations today that makes decision-making a little quicker for both owners and lenders to figure out, you know, which direction to go in. And I think that that's, you know, that just is reflective of a stabilized real estate market, where we sit today with valuations, you know, steadily, you know, stable and increasing. That's just a better backdrop for quicker resolutions in general.

Speaker #4: Yeah, you know, I think if you just look at the general reserve today, I think that's a pretty good proxy.

Challenges pretty swiftly we have a large scale team. It's one of the benefits of our platform that certainly and part of it I think market liquidity does help as well.

Speaker #4: You know , for , for where we see , you know , the , the reserve for the vast majority of the portfolio as being appropriate .

More transparency.

Austin Peña: Yeah. Hey, it's Austin. Thanks, Gabe. I'll take the first part of that question, then I'll pass it over to Marcin for the second point. You know, I think in terms of multifamily, you know, we really like the opportunity we see in multifamily today. You know, with respect to the performance that we've seen in our portfolio, you know, our multifamily is 100% performing. And you know, when we think about the opportunity set in that space, you know, we really just like the setup for multifamily and rental housing in general. You know, it's a structurally undersupplied. New construction starts are down 60% from peak, and it's a really highly liquid and granular asset class, and so that's why you see us lending in that space.

Speaker #4: And so , you know , as we as we grow the portfolio or shrink the portfolio , I think , I think that's a pretty good place to look .

And the market in terms of valuations today that made decision, making a little quicker for both.

Owners and lenders to figure out which direction to go in.

Speaker #6: Great . Thank you guys so much .

Speaker #2: We'll take our next question from John Nicodemus with Btig .

And I think that Thats that just is reflective of a stabilized real estate market, where we sit today with valuations steadily stable and increasing that's just a better backdrop for quicker resolutions in general.

Speaker #8: Thank you . And good morning . Obviously , we were encouraged to see the significant headway made on your impaired loan balance during the quarter .

Speaker #8: Was that more a strategy and matter of timing on your team's end , specific or was there assets , a notable shift in the broader market as a whole that made these resolutions more achievable ?

Great. Thanks, Tim really helpful.

And then the other one from me your loan portfolio mix now sits at half a collateralized by multifamily or industrial properties.

Thomas Catherwood: Great. Thanks, Tim. Really helpful. And then the other one from me, your loan portfolio mix now sits at half, collateralized by multifamily or industrial properties. Obviously, these are high conviction sectors for BXMT, but what are you thinking for the target allocation for your portfolio between those two asset classes going forward? Thanks.

Speaker #8: Thanks .

Speaker #6: Thanks , John . This is Tim .

Obviously these are high conviction sectors for <unk>, but what are you thinking for the target allocation for your portfolio between those two asset classes going forward. Thanks.

Speaker #1: I'd say it's reflective of a couple of things . One , just the strength of our asset management team and their ability to work through , you know , challenges .

Austin Peña: You know, I think that, you know, again, when you look at the performance in our portfolio, I think that's been, that's been demonstrated. And so that's, that's the profile, I'd say, and the reason we're, we're active in that area. Maybe Marcin, if you want to handle the second part of the question.

Speaker #1: Pretty swiftly . We have a large scale team . It's one of the benefits of our platform . That's certainly part of it .

Thanks, John.

Often.

I would say first and foremost our top priority in terms of capital allocation is really finding the right investments with the best friends of risk adjusted returns.

Speaker #1: I think market liquidity does help as well . Just there's there's a more transparency in the market in terms of valuations today that makes decision making a little quicker for both owners and lenders to figure out , you know , which direction to go in .

Austin Peña: Thanks, John. This is Austin. You know, I would say, first and foremost, our top priority in terms of capital allocation is really, you know, finding the right investments with the best risk-adjusted returns. You know, that allocation will obviously depend on where we see those opportunities, over time. And, you know, as we said earlier, we're very focused on diversifying our portfolio, across sectors and geographies. You see that in the sector selection, you see it in the geographic concentration of the company. And you've seen us further diversify, you know, into things like the net lease and the bank loan portfolios that we've acquired. You've also seen us allocate capital towards buying back stock.

Marcin Urbaszek: Sure, happy to. Look, I think our leverage, we think of it, excuse me, in terms of where it is within our targets, as Tony mentioned, is, it is within our target where we are. It's a function also of what type of leverage we have. As Tony mentioned, a lot of our financing is non-mark-to-market. We have been active in addressing different maturities within our corporate debt profile, as well as reducing costs on both the asset financing and corporate financing. So it's a function of investment opportunities where the balance sheet is, what's available to us from a financing perspective in the market. So we're very thoughtful about it, but again, it's within our targets, and we will maintain where it is.

That allocation will obviously depend on where we see those opportunities over time and as we said earlier, we're very focused on diversifying our portfolio.

Speaker #1: And I think that that's, you know, that just is reflective of a stabilized real estate market where we sit today, with valuations steadily stable and increasing.

Across sectors and geographies you see that in the sector selection and you see it in the geographic concentration of the company and.

Speaker #1: That's just a better backdrop for quicker resolutions in general.

Speaker #8: Thanks , Tim . Great . Really helpful . And then the other one for me , your loan portfolio mix now sits at half collateralized by multifamily or industrial properties .

And you've seen us further diversify into things like the net lease in the bank loan portfolios and we've acquired <unk>.

<unk> also seen us allocate capital towards buying back stock.

Speaker #8: Obviously these are high conviction sectors for bsmt . But what are you thinking for the target allocation for your portfolio between those two asset classes going forward ?

As Tim mentioned $140 million since inception.

And of that program, where we thought that offer a compelling risk adjusted return.

Austin Peña: You know, as Tim mentioned, $140 million since inception of that program, where we thought that offered a compelling risk-adjusted return. And so, you know, ultimately, what really matters to us is performance. So, you know, really just trying to set up our company, to deliver for investors over the long term.

And so ultimately what really matters to us is performance. So really just trying to set up our company to.

Speaker #8: Thanks .

Speaker #4: Thanks , John . This is Austin . You know , I would say first and foremost , our top priority in terms of capital allocation is really , you know , finding the right investments with the best risk adjusted returns .

Operator: Thank you. We'll take our next question from Rich Shane, with JP Morgan.

To deliver for investors over the long term.

Rick Shane: Thank you, guys, for taking my questions. And Tony, thank you for all your help over the years, and Marcin, congratulations on the new gig. Most of my questions have been asked and answered at this point, but, you know, as we sort of look forward to 2026, it feels like the expectation is, given where you are on leverage, and unless there's additional equity capital available at some point, portfolio will be roughly flat in size, maybe modest growth. I'm curious sort of the timeline as you resolve loans and redeploy capital, potentially from REO resolutions, what you think the path back to normalized ROE might look like?

Richard Shane: Thank you, guys, for taking my questions. And Tony, thank you for all your help over the years, and Marcin, congratulations on the new gig. Most of my questions have been asked and answered at this point, but, you know, as we sort of look forward to 2026, it feels like the expectation is, given where you are on leverage, and unless there's additional equity capital available at some point, portfolio will be roughly flat in size, maybe modest growth. I'm curious sort of the timeline as you resolve loans and redeploy capital, potentially from REO resolutions, what you think the path back to normalized ROE might look like?

Thanks, Austin I appreciate the time.

Speaker #4: You know , that that allocation will obviously depend on where we see those opportunities over time . And , you know , as we said earlier , we're very focused on diversifying our portfolio sectors .

Thank you, we'll take our final question from harsh <unk> with Green Street.

Thomas Catherwood: Thanks, Austin. Appreciate the time.

Operator: Thank you. We'll take our final question from Harsh Hemnani with Green Street.

Thank you.

So you mentioned the transaction market in the U S is becoming more and more liquid.

Harsh Hemnani: Thank you. So you mentioned the transaction market in the US is becoming more transparent, more liquid. Does that sort of start to pivot some of the deal volume that's been more levered towards Europe over the last years? Does that start to shift a little bit more to the US? And then maybe how do you weigh the pros and cons between a more liquid transaction market, more visibility into values, but also somewhat lower spreads that are available today versus a year ago?

Speaker #4: across And geographies . You see that in the in the sector selection . You see it in the geographic concentration of the company .

Is that sort of start to pivot.

Deal volume.

That's been more levered towards Europe over the last year or does that start to shift a little bit more to the U S. And then maybe how do you be the pros and cons between a more a more liquid transaction market more visibility into values, but also somewhat lower spreads.

Speaker #4: And you've seen us further diversify into things like the bank loan lease and the net portfolios that we've acquired . You've also seen us allocate capital towards buying back stock .

Speaker #4: You know , as Tim mentioned , $140 million since inception of that program where we've thought that offered a compelling risk adjusted return .

That are available today versus a year ago.

Speaker #4: And so , you know , ultimately , what really matters to us is performance . So , you know , really just trying to set up our company to deliver for investors over the long term .

Yes, it's a great question I think I think you are right you are seeing more liquidity in the U S. You certainly have seen that.

Austin Peña: Yeah, it's a great question. I think, I think you're right. You are seeing more liquidity in the US. You certainly have seen that in 2025 in our CMBS market and early in 2026, with much more liquidity. I think that's overall a positive for the business. It just means there's more velocity to the portfolio. You know, and you see that in the loan repayment activity, and you see that in loan repayments of loans that have been, you know, pre-rate hike cycle and pre-COVID repaying. So I think that generally is helpful. We're in, I'd say, you know, a liquid but more normalized market today, which is a good operating environment for us.

2025, and our <unk> market in early in 2026 with much more liquidity I think that's overall a positive for the business. It just means there is more velocity to the portfolio.

Austin Peña: Yeah, Rick. Hey, it's Austin. I can take that. You know, as Marcin mentioned, you know, the portfolio is we think we're pretty well invested. And, you know, I do think that, you know, there's capacity, we have liquidity, you know, of $1 billion today. You know, but we think that's actually a good position to be in. You know, we have a very broad pipeline. There's a lot of opportunities, but given the position we're in, we can be pretty selective, you know, across that pipeline.

Speaker #8: Thanks , Austin . Appreciate the time .

Speaker #2: Thank We'll take our final question from harsh Hemnani with Green Street .

You see that in the loan repayment activity and you see that in loan repayments of loans that have been pre rate hike cycle in pre COVID-19 repaying. So I think that generally is helpful. We're in I'd say, a liquid but more normalized market today, which is a good operating environment for us and as we said.

Speaker #3: Thank you .

Speaker #9: So you mentioned the transaction market in the US is becoming more transparent, more liquid. Does that sort of start to pivot some of the deal volume that's been more leveled towards Europe over the years?

At the beginning having the scale of our platform the different styles of investment capabilities. We have the global reach we can really look across the full set of opportunities and pick and choose what we ought to do Austin referenced it before we're pretty well invested today. So we have the luxury of looking for the best relative value out there in the market. So.

Austin Peña: You know, in terms of the REO timeline and sort of exiting those assets, as I mentioned earlier, you know, I think some of those assets are pretty well positioned for us to look at, you know, exiting over the course of this year. You know, some others may take longer. You know, but we do think that, you know, those loans or those assets are, you know, earning, generating a below-target ROE. And so as we exit those positions and redeploy that capital at our target returns, you know, that should be supportive of earnings over time.

Austin Peña: As we said at the beginning, having the scale of our platform, the different styles of investment capabilities we have, the global reach, we can really look across the, you know, the full set of opportunities and pick and choose what we want to do. Austin referenced it before. We're pretty well invested today, so we have the luxury of looking for the best relative value out there in the market. So even though spreads have tightened, back leverage has tightened as well, so that's offset a bunch of that spread tightening. But the opportunities set today still feels compelling and deal activity is increasing, so that's a pretty good setup for us overall.

Speaker #9: Does that start to shift a little bit more to the U.S.? And then maybe, how do you weigh the pros and cons between a more liquid transaction market and more visibility into values?

Speaker #9: But also somewhat lower spreads than that are available today versus a year ago?

Even though spreads have tightened.

Back Leverages tightened as well, so thats offset a bunch of that spread tightening, but the opportunity set today still feels compelling and deal activity is increasing so that's a pretty good setup for us overall.

Speaker #1: Yeah , it's a great question . I think I think you're right . You are seeing more liquidity in the US . You're certainly have seen that in 2025 .

Speaker #1: In our CMBS market . And early in 2026 with much more liquidity . I think that's overall a positive for the business . It just means there's more velocity to the portfolio , you know , and you see that in the loan repayment activity and you see that in loan repayments of of loans that have been , you know , pre rate hike cycle and pre-COVID repaying .

Rick Shane: Got it. Okay, that's helpful. And then, just one other question. As you continue to... or as, as you've substantially exited your non-accruing assets and assets with specific reserves and starting to deploy a little bit more capital, what should we think about as an initial general reserve on new loans, sort of ballpark range, so we can start to sort of dial in what our overall reserves will look like?

Richard Shane: Got it. Okay, that's helpful. And then, just one other question. As you continue to... or as, as you've substantially exited your non-accruing assets and assets with specific reserves and starting to deploy a little bit more capital, what should we think about as an initial general reserve on new loans, sort of ballpark range, so we can start to sort of dial in what our overall reserves will look like?

Got it.

And then maybe on you mentioned backlog this is taking us.

Harsh Hemnani: ... Got it. And then maybe you mentioned bid levels has tightened as well. And it feels like the CLO market has opened up. Of course, you guys issued a CLO in January. How are you sort of weighing the cost of capital between CLOs and bank facilities today? And how should we expect that financing mix to shift over the course of the year?

And it feels like the CLO market has opened up of course, you guys issued a CLO.

Speaker #1: So I think that generally is helpful . We're in I'd say you know a liquid but more normalized market today which is a good operating environment for us .

Generally how would you sort of being the cost of gap between CLO and bank facilities did in how should be.

Speaker #1: And as we said at the beginning , having the scale of our platform , the different styles of investment capabilities we have , the global reach we can really look across the , you know , the full set of opportunities and pick and choose what we want to do .

We expect that financing mix.

Cisco, where the course of the year.

Orange County, its Austin I can take that.

I think what you what you saw us really do over the course of 2025 was really a.

Austin Peña: Yeah, Harsh, hey, it's Austin. I can take that. You know, I think what you, what you saw us really do over the course of 2025 was really a broad approach across all the different capital markets that we're active in, and a very proactive one. You know, as we mentioned earlier, we accessed about $5 billion of transaction across term loan, CLO, markets. And as we think about the CLO market versus where we can finance our assets on facilities, you know, it's obviously price is important. Structure is also important. And you know, really our goal is to build a well-structured, well-diversified balance sheet and really have a healthy mix across all those markets so that we can be nimble, when the market opportunities presents ourselves.

Austin Peña: ... Yeah, I, you know, I think if you just look at the general reserve today, I think that's a pretty good proxy, you know, for where we see, you know, the reserve for the vast majority of the portfolio as being appropriate. And so, you know, as we grow the portfolio or shrink the portfolio, I think that's a pretty good place to look.

Speaker #1: Austin referenced it before. We're pretty well invested today, so we have the luxury of looking for the best relative value out there in the market.

Our broad approach across all the different capital markets that we're active in a very proactive one as we mentioned earlier, we we accessed about $5 billion of transaction across her bone.

Speaker #1: So even though spreads have tightened , back leverage has tightened as well . So that's offset a bunch of that spread tightening . But the opportunity set today still feels compelling .

CLO.

Speaker #1: And deal activity is increasing. So that's a pretty good setup for us overall.

<unk> markets and as we think about the CLO market versus where we were we can finance our assets on facilities. It's obviously price is important structure is also important.

Harsh Hemnani: Great. Thank you guys so much.

Richard Shane: Great. Thank you guys so much.

Speaker #9: Cody . And then maybe on you mentioned back as well . And it feels like the market has opened up . Of course you guys issued a yellow and January .

Operator: We'll take our next question from John Nicodemis with BTIG.

John Nickodemus: Thank you, and good morning. Obviously, we were encouraged to see the significant headway made on your impaired loan balance during the quarter. Was that more a matter of strategy and timing on your team's end or for the specific assets? Or was there a notable shift in the broader market as a whole that made these resolutions more achievable? Thanks.

And and really our goal is to build a well structured well diversified balance sheet and really have a healthy mix across all those markets. So that we can be nimble when the market opportunities present ourselves as we mentioned earlier, we reduced our corporate term loan borrowing spread by about 90 basis points over the course of the year, that's very significant.

Speaker #9: How are you sort of weighing the cost of capital between Clos and Bank facilities today ? And how should we expect that financing mix to shift over the course of the year ?

Austin Peña: You know, as we mentioned earlier, we reduced our corporate term loan borrowing spread by about 90 basis points over the course of the year. That's very significant. And we've been adding more credit facility counterparties, you know, 15 different counterparties today, which, you know, really allows us to drive down the cost of that capital. And so, you know, when we think about having all these different options available to us, you know, we think that ultimately benefits the company. And so, yeah, I think you'll continue to see really a mix of activity across all those different channels.

Speaker #4: Yeah . Harsh . Hey , it's Austin , I can take that . You know , I think what you what you saw is over the really do course of 20 , 25 was really a a broad approach across all the different capital markets that we're active in , in a very proactive one .

Austin Peña: Thanks, John. This is Tim. I'd say it's reflective of a couple of things. One, just the strength of our asset management team, and their ability to work through, you know, challenges pretty swiftly. We have a large-scale team. It's one of the benefits of our platform. That's certainly part of it. I think market liquidity does help as well. Just there's a more transparency in the market in terms of valuations today that makes decision-making a little quicker for both owners and lenders to figure out, you know, which direction to go in. And I think that that's, you know, that just is reflective of a stabilized real estate market, where we sit today with valuations, you know, steadily, you know, stable and increasing. That's just a better backdrop for quicker resolutions in general.

Timothy Hayes: Thanks, John. This is Tim. I'd say it's reflective of a couple of things. One, just the strength of our asset management team, and their ability to work through, you know, challenges pretty swiftly. We have a large-scale team. It's one of the benefits of our platform. That's certainly part of it. I think market liquidity does help as well. Just there's a more transparency in the market in terms of valuations today that makes decision-making a little quicker for both owners and lenders to figure out, you know, which direction to go in. And I think that that's, you know, that just is reflective of a stabilized real estate market, where we sit today with valuations, you know, steadily, you know, stable and increasing. That's just a better backdrop for quicker resolutions in general.

And as we and we've been adding more credit facility Counterparties 15 different counterparties today, which really allows us to drive down the cost of that capital.

And so when we think about having all of these different options available to us we think that ultimately benefits the company and.

Speaker #4: You know , as we mentioned earlier , we we accessed about $5 billion of transaction across term loan CLO you know , markets .

So I think youll continue to see really a mix.

Activity across all those different channels.

Speaker #4: And as we think about the CLO market versus where we where we can finance our assets on facilities , you know , it's obviously price is is important .

Got it thank you.

That will conclude our question and answer session. At this time I would like to turn the call back over to Tim Hayes for any additional or closing remarks.

Harsh Hemnani: Got it. Thank you.

Speaker #4: is also Structure important . And and you know , really our goal is to build a well structured , well-diversified balance sheet and really have a healthy mix across all those markets so that we can be nimble when the market opportunities presents mentioned ourselves .

Operator: That will conclude our question and answer session. At this time, I'd like to turn the call back over to Tim Hayes for any additional or closing remarks.

Thanks, Katie and to everyone joining today's call. Please reach out with any questions.

Austin Peña: Thanks, Katie, and to everyone joining today's call. Please reach out with any questions.

John Nickodemus: Great. Thanks, Tim. Really helpful. And then the other one from me, your loan portfolio mix now sits at half, collateralized by multifamily or industrial properties. Obviously, these are high conviction sectors for BXMT, but what are you thinking for the target allocation for your portfolio between those two asset classes going forward? Thanks.

Speaker #4: You know , earlier , we reduced our corporate term loan spread by about 90 basis points over the course of the year . That's very significant .

Speaker #4: we as and And we've been adding more credit facility counterparties , you know , 15 different counterparties today , which , really allows us to drive down the cost of that capital think .

Austin Peña: Thanks, John. This is Austin. You know, I would say first and foremost, our top priority in terms of capital allocation is really, you know, finding the right investments with the best risk-adjusted returns. You know, that allocation will obviously depend on where we see those opportunities over time. And, you know, as we said earlier, we're very focused on diversifying our portfolio across sectors and geographies. You see that in the sector selection. You see it in the geographic concentration of the company. And you've seen us further diversify, you know, into things like the net lease and the bank loan portfolios that we've acquired. You've also seen us allocate capital towards buying back stock.

Speaker #4: know , when we so , you And about having all these different options available to us , you know , we think that ultimately benefits the company .

Speaker #4: And so I think you'll continue to see really a mix of activity across all those different channels.

Speaker #9: Gordon . Thank you .

Speaker #2: That will conclude our question and answer session . At this time , I'd like to turn the call back over to Tim Hayes for any additional or closing remarks .

Speaker #4: Katie , and to Thanks , everyone joining today's call . Please reach out with any questions .

Austin Peña: You know, as Tim mentioned, $140 million since inception of that program, where we've thought that offered a compelling risk-adjusted return. And so, you know, ultimately, what really matters to us is performance. You know, really just trying to set up our company to deliver for investors over the long term.

Thomas Catherwood: Thanks, Austin. Appreciate the time.

John Nickodemus: Thanks, Austin. Appreciate the time.

Operator: Thank you. We'll take our final question from Harsh Hemnani with Green Street.

Harsh Hemnani: Got it. And then maybe on... you mentioned back leverage has tightened as well, and it feels like the CLO market has opened up. Of course, you guys issued a CLO in January. How are you sort of weighing the cost of capital between CLOs and bank facilities today, and how should we expect that financing mix to shift over the course of the year?

Austin Peña: Yeah. Harsh, hey, it's Austin. I can take that. You know, I think what you saw us really do over the course of 2025 was really a broad approach across all the different capital markets that we're active in, and a very proactive one. You know, as we mentioned earlier, we accessed about $5 billion of transaction across term loan, CLO, you know, markets. And as we think about the CLO market versus where we can finance our assets on facilities, you know, it's obviously price is important, structure is also important. And you know, really our goal is to build a well-structured, well-diversified balance sheet and really have a healthy mix across all those markets so that we can be nimble, when the market opportunities presents ourselves.

Austin Peña: You know, as we mentioned earlier, we reduced our corporate term loan borrowing spread by about 90 basis points over the course of the year. That's very significant. And we've been adding more credit facility counterparties, you know, 15 different counterparties today, which, you know, really allows us to drive down the cost of that capital. And so, you know, when we think about having all these different options available to us, you know, we think that ultimately benefits the company. And so yeah, I think you'll continue to see really a mix of activity across all those different channels.

Harsh Hemnani: Got it. Thank you.

Operator: That will conclude our question and answer session. At this time, I'd like to turn the call back over to Tim Hayes for any additional or closing remarks.

Austin Peña: Thanks, Katie, and to everyone joining today's call. Please reach out with any questions.

Thomas Catherwood: Goodbye.

Operator: Goodbye.

Q4 2025 Blackstone Mortgage Trust Inc Earnings Call

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