Blackstone Mortgage Trust Reports Q3 2026 Net Loss Amid Increased CECL Reserves
Blackstone Mortgage Trust (BXMT) reported a GAAP net loss of $1.95 per share for the third quarter of 2026, primarily driven by a significant $1.59 per share increase in Current Expected Credit Losses (CECL) reserves. The company is actively working to reduce its exposure to legacy office and multifamily assets through loan sales and repayments, resulting in a watchlist reduction of 56% compared to the previous quarter. Despite the net loss, adjusted distributable earnings stood at $0.42 per share. Management noted that elevated interest rates continue to act as a headwind for real estate values. To manage risk, BXMT is pivoting toward newer originations in sectors like industrial and homebuilder finance, while simultaneously managing a portfolio where impaired loans and owned real estate account for 14% of total assets.
Tickers: $BXMT
Topics: CECL reserves dividend reduction loan sales net loss portfolio restructuring
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Part of the story Citizens Financial Services Reports Growth in Net Income and Interest Income for Q3 2026 (63 articles)