# Blackstone Mortgage Trust, Inc.: Form 10-Q for the period ended Sep 30, 2025 - Company: [Blackstone Mortgage Trust, Inc.](/companies/bxmt.md) (CIK 1061630) - Form: 10-Q - Filed: 2025-10-29 - Accepted by EDGAR: Oct 29, 2025, 06:48 ET - Period: 2025-09-30 - Accession: 0001061630-25-000128 - Inline XBRL: yes - Main document: https://www.sec.gov/Archives/edgar/data/1061630/000106163025000128/bxmt-20250930.htm - All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1061630/000106163025000128/ ## Figures reported in this filing Standardized XBRL line items for the period ended 2025-09-30. | Line item | Period | Value | XBRL concept | | --- | --- | ---: | --- | | Income tax | 3 months, 2025-07-01 to 2025-09-30 | $1.5m | us-gaap:IncomeTaxExpenseBenefit | | Income tax | 9 months, 2025-01-01 to 2025-09-30 | $3.1m | us-gaap:IncomeTaxExpenseBenefit | | Net income | 3 months, 2025-07-01 to 2025-09-30 | $63.4m | us-gaap:NetIncomeLoss | | Net income | 9 months, 2025-01-01 to 2025-09-30 | $70.0m | us-gaap:NetIncomeLoss | | Diluted EPS | 3 months, 2025-07-01 to 2025-09-30 | $0.37 | us-gaap:EarningsPerShareDiluted | | Diluted EPS | 9 months, 2025-01-01 to 2025-09-30 | $0.41 | us-gaap:EarningsPerShareDiluted | | Basic EPS | 3 months, 2025-07-01 to 2025-09-30 | $0.37 | us-gaap:EarningsPerShareBasic | | Basic EPS | 9 months, 2025-01-01 to 2025-09-30 | $0.41 | us-gaap:EarningsPerShareBasic | | Diluted shares (weighted) | 3 months, 2025-07-01 to 2025-09-30 | 171,812,685 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding | | Diluted shares (weighted) | 9 months, 2025-01-01 to 2025-09-30 | 171,903,127 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding | | Operating cash flow | 9 months, 2025-01-01 to 2025-09-30 | $139.6m | us-gaap:NetCashProvidedByUsedInOperatingActivities | | Dividends paid | 9 months, 2025-01-01 to 2025-09-30 | $242.5m | us-gaap:PaymentsOfDividendsCommonStock | | Share repurchases | 9 months, 2025-01-01 to 2025-09-30 | $47.8m | us-gaap:PaymentsForRepurchaseOfCommonStock | | Cash and equivalents | at 2025-09-30 | $377.9m | us-gaap:CashAndCashEquivalentsAtCarryingValue | | Total assets | at 2025-09-30 | $19.70bn | us-gaap:Assets | | Total liabilities | at 2025-09-30 | $16.10bn | us-gaap:Liabilities | | Shareholders' equity | at 2025-09-30 | $3.59bn | us-gaap:StockholdersEquity | ## Management's discussion and analysis As filed, 115,017 characters. ### RESULTS OF OPERATIONS #### References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us,” or “our” refer to Blackstone Mortgage *Trust, Inc. and its subsidiaries unless the context specifically requires otherwise.* #### The following discussion and analysis of our financial condition and results of operations should be read in conjunction #### with the unaudited consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on #### Form 10-Q and with our Annual Report on Form 10-K for the year ended December 31, 2024. In addition to historical #### data, this discussion and analysis contains forward-looking statements within the meaning of Section 27A of the Securities #### Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the #### Exchange Act, which reflect our current views with respect to, among other things, our business, operations and financial #### performance. You can identify these forward-looking statements by the use of words such as “intend,” “goal,” “estimate,” #### “expect,” “project,” “projections,” “plans,” “seeks,” “anticipates,” “should,” “could,” “may,” “designed to,” #### “foreseeable future,” “believe,” “scheduled,” and similar expressions. Such forward- looking statements are subject to #### various risks, uncertainties and assumptions. Our actual results or outcomes may differ materially from those in this #### discussion and analysis as a result of various factors, including but not limited to those discussed in Item 1A. Risk Factors #### in our Annual Report on Form 10-K for the year ended December 31, 2024 and elsewhere in this Quarterly Report on #### Form 10-Q. ### Introduction Blackstone Mortgage Trust is a real estate finance company that originates, acquires, and manages senior loans and other debt or credit-oriented investments collateralized by or relating to commercial real estate in North America, Europe, and Australia. Our portfolio is composed primarily of senior loans secured by high-quality, institutional assets located in major markets, and sponsored by experienced, well-capitalized real estate investment owners and operators. We finance our investments in a variety of ways, including borrowing under our credit facilities, issuing collateralized loan obligations, or CLOs, or single-asset securitizations, asset-specific financings, syndicating senior loan participations, and corporate financing, depending on our view of the most prudent financing option available for each of our investments. We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” We benefit from the deep knowledge, experience and information advantages of our Manager, which is a part of Blackstone Real Estate. Blackstone Real Estate is the largest owner of commercial real estate globally with over 12,500 commercial assets and a proven track record of successfully navigating market cycles and emerging stronger through periods of volatility. The market-leading real estate expertise derived from the strength of the Blackstone platform deeply informs our credit and underwriting process, and we believe gives us the tools to expertly manage the assets in our portfolio and work with our borrowers throughout periods of economic stress and uncertainty. We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended. We are organized as a holding company and conduct our business primarily through our various subsidiaries. ### Macroeconomic Environment During the third quarter, real estate transaction activity continued to strengthen as the recovery of commercial real estate from its cyclical downturn continued, further supported by the decline in construction starts and continuing low supply (including in sectors in which our portfolio is concentrated, such as multifamily), as well as continuing improvement in the cost and availability of debt. The Federal Reserve lowered interest rates in September 2025, and interest rates are likely to continue to decline. Continued deceleration in inflation should also encourage further lowering of interest rates, which would be constructive for real estate values. Nevertheless, the timing, direction and extent of any future interest rate changes remain uncertain. Earlier this year, tariff announcements in the U.S. and ongoing global trade negotiations contributed to significant uncertainty and volatility of debt and equity markets. More recently, there has been greater clarity in the U.S. policy environment and lower market volatility. Nevertheless, a resurfacing of policy-driven uncertainty or market volatility could adversely affect us, our borrowers, their tenants and the value of the real estate assets related to our investments. 58 ### I. Key Financial Measures and Indicators As a real estate finance company, we believe the key financial measures and indicators for our business are earnings per share, dividends declared, Distributable Earnings, Distributable Earnings prior to charge-offs, and book value per share. For the three months ended September 30, 2025, we recorded basic net earnings per share of $0.37, declared a dividend of $0.47 per share, reported $0.24 per share of Distributable Earnings, and reported $0.48 per share of Distributable Earnings prior to charge-offs. In addition, our book value as of September 30, 2025 was $20.99 per share, which is net of cumulative CECL reserves of $4.16 per share. As further described below, Distributable Earnings and Distributable Earnings prior to charge-offs are measures that are not prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. Distributable Earnings and Distributable Earnings prior to charge-offs helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations. In addition, Distributable Earnings and Distributable Earnings prior to charge-offs are performance metrics we consider when declaring our dividends. ### Earnings Per Share and Dividends Declared The following table sets forth the calculation of basic net income (loss) per share and dividends declared per share ($ in thousands, except per share data): | | Three Months Ended September 30, 2025 | June 30, 2025 | | --- | ---: | ---: | | Net income(1) | $63,397 | $6,969 | | Weighted-average shares outstanding, basic | 171,812,685 | 171,893,905 | | Net income per share, basic | $0.37 | $0.04 | (1) Represents net income attributable to Blackstone Mortgage Trust. Refer to Note 15 to our consolidated financial statements for the calculation of diluted net (loss) income per share. ### Distributable Earnings and Distributable Earnings Prior to Charge-Offs Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves are non-GAAP measures. We define Distributable Earnings as GAAP net income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), and (iv) certain non-cash items. Distributable Earnings may also be adjusted from time to time to exclude one-time events pursuant to changes in GAAP and certain other non-cash charges as determined by our Manager, subject to approval by a majority of our independent directors. Distributable Earnings mirrors the terms of our management agreement between our Manager and us, or our Management Agreement, for purposes of calculating our incentive fee expense. Therefore, Distributable Earnings prior to charge-offs of CECL reserves is calculated net of the incentive fee expense that would have been recognized if such charge-offs had not occurred. Our CECL reserves have been excluded from Distributable Earnings consistent with other unrealized gains (losses) pursuant to our existing policy for reporting Distributable Earnings. We expect to only recognize such potential credit losses in Distributable Earnings if and when such amounts are realized and deemed non-recoverable upon a realization event. This is generally at the time a loan is repaid, or in the case of foreclosure, when the underlying asset is sold, but realization and non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected. The timing of any such credit loss realization in our Distributable Earnings may differ materially from the timing of CECL reserves or charge-offs in our consolidated financial statements prepared in accordance with GAAP. The realized loss amount reflected in Distributable Earnings will equal the difference between the cash received, or expected to be received, and the book value of the asset, and is reflective of our economic experience as it relates to the ultimate realization of the loan. We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss) and cash flow from operating activities determined in accordance with GAAP. We believe Distributable Earnings is a useful financial metric for existing and potential future holders of our class A common stock as historically, over time, Distributable Earnings has been a strong indicator of our dividends per share. As a REIT, we generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments, and therefore we believe our dividends are one of the principal reasons stockholders may invest in our class A common stock. Refer to Note 17 to our consolidated 59 financial statements for further discussion of our distribution requirements as a REIT. Further, Distributable Earnings helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations, and is a performance metric we consider when declaring our dividends. Furthermore, we believe it is useful to present Distributable Earnings prior to charge-offs of CECL reserves to reflect our direct operating results and help existing and potential future holders of our class A common stock assess the performance of our business excluding such charge-offs. We utilize Distributable Earnings prior to charge-offs of CECL reserves as an additional performance metric to consider when declaring our dividends. Distributable Earnings mirrors the terms of our Management Agreement for purposes of calculating our incentive fee expense. Therefore, Distributable Earnings prior to charge-offs of CECL reserves is calculated net of the incentive fee expense that would have been recognized if such charge-offs had not occurred. Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves do not represent net income (loss) or cash generated from operating activities and should not be considered as alternatives to GAAP net income (loss), or indicators of our GAAP cash flows from operations, measures of our liquidity, or indicators of funds available for our cash needs. In addition, our methodology for calculating Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves may not be comparable to similar metrics reported by other companies. 60 The following table provides a reconciliation of Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves to GAAP net income (loss) ($ in thousands, except per share data): | | Three Months Ended September 30, 2025 | June 30, 2025 | | --- | ---: | ---: | | Net income(1) | $63,397 | $6,969 | | Charge-offs of CECL reserves(2) | (42,111) | (45,057) | | (Decrease) increase in CECL reserves | (987) | 45,593 | | Depreciation and amortization of real estate owned(3) | 15,388 | 17,046 | | Non-cash compensation expense | 7,302 | 7,303 | | Realized hedging and foreign currency loss, net(4) | (1,511) | (703) | | Allocable share of adjustments related to unconsolidated entities(5) | (990) | 1,665 | | Cash (non-cash) income from Agency Multifamily Lending Partnership, net(6) | 35 | (127) | | Adjustments attributable to non-controlling interests, net | (41) | (52) | | Other items | (46) | (11) | | Distributable Earnings | $40,436 | $32,626 | | Charge-offs of CECL reserves(2) | 42,111 | 45,057 | | Distributable Earnings prior to charge-offs of CECL reserves | $82,547 | $77,683 | | Weighted-average shares outstanding, basic(7) | 171,812,685 | 171,893,905 | | Distributable Earnings per share, basic | $0.24 | $0.19 | | Distributable Earnings per share, basic, prior to charge-offs of CECL reserves | $0.48 | $0.45 | (1) Represents net income attributable to Blackstone Mortgage Trust. (2) Represents realized losses related to loan principal amounts deemed non-recoverable. (3) Represents depreciation of REO assets and amortization of intangible real estate assets and liabilities. (4) Represents realized losses on the repatriation of unhedged foreign currency. These amounts were not included in GAAP net income, but rather as a component of other comprehensive income in our consolidated financial statements. (5) Allocable share of adjustments related to unconsolidated entities reflects our share of non-cash items such as (i) $(2.3) million of unrealized gains recorded by such unconsolidated entities, (ii) $1.3 million of depreciation and amortization, and (iii) related adjustments for realized gains, if any. (6) Represents (i) the non-cash income recognized under GAAP related to our Agency Multifamily Lending Partnership, in which we receive a portion of origination, servicing, and other fees for loans we refer to MTRCC for origination, offset by the related loss-sharing obligation accruals and (ii) the cash received related to such income previously recognized under GAAP. Refer to Note 2 to our consolidated financial statements for further information on our Agency Multifamily Lending Partnership. (7) The weighted-average shares outstanding, basic, exclude shares issuable from a potential conversion of our Convertible Notes then outstanding. Consistent with the treatment of other unrealized adjustments to Distributable Earnings, these potentially issuable shares are excluded until a conversion occurs. Refer to Note 15 to our consolidated financial statements for the calculation of diluted net income per share. 61 ### Book Value Per Share The following table calculates our book value per share ($ in thousands, except per share data): | | September 30, 2025 | June 30, 2025 | | --- | ---: | ---: | | Stockholders’ equity | $3,590,702 | $3,616,772 | | Shares | | | | Class A common stock | 170,720,119 | 171,593,590 | | Deferred stock units | 331,611 | 323,877 | | Total outstanding | 171,051,730 | 171,917,467 | | Book value per share(1) | $20.99 | $21.04 | (1) The book value per share excludes shares issuable from a potential conversion of our Convertible Notes then outstanding. Refer to Note 15 to our consolidated financial statements for the calculation of diluted net income per share. ### II. Investments ### Loan Originations During the three months ended September 30, 2025, we originated or acquired $945.1 million of loans, including our share of a loan portfolio acquired by our Bank Loan Portfolio Joint Venture. The following table details our loan origination activity ($ in thousands): | | Three Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | | --- | ---: | ---: | | Loan originations(1) | $642,063 | $4,376,757 | | Loan portfolio acquisitions(2) | 303,001 | 719,410 | | Total originations | $945,064 | $5,096,167 | (1) Includes new loan originations and acquisitions, and additional commitments made under existing loans. (2) Represents our share of loans that were acquired by our Bank Loan Portfolio Joint Venture. This reflects our aggregate 35% ownership interest in the joint venture, which is included in investments in unconsolidated entities on our consolidated balance sheets. ### Loan Portfolio #### Loan Portfolio Activity During the three months ended September 30, 2025, loan fundings totaled $496.8 million and loan repayments and sales totaled $1.6 billion. During the three months ended September 30, 2025, we generated interest income of $346.0 million and incurred interest expense of $247.1 million, which resulted in $98.9 million of net interest income. The following table details our loan portfolio activity ($ in thousands): | | Three Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | | --- | ---: | ---: | | Loan fundings(1) | $496,791 | $3,945,271 | | Loan repayments and sales(1) | (1,641,950) | (5,047,271) | | Total net repayments | $(1,145,159) | $(1,102,000) | (1) Excludes amounts held by our Bank Loan Portfolio Joint Venture, which is included in investments in unconsolidated entities on our consolidated balance sheets. 62 The following table details overall statistics for our loans receivable portfolio ($ in thousands): | | September 30, 2025 | | --- | ---: | | Number of loans | 137 | | Principal balance | $18,188,534 | | Net book value | $17,371,200 | | Unfunded loan commitments(1) | $1,532,429 | | Weighted-average cash coupon(2) | + 3.24% | | Weighted-average all-in yield(2) | + 3.46% | | Weighted-average maximum maturity (years)(3) | 2.4 | | Origination loan-to-value (LTV)(4) | 64.0% | (1) Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date. (2) The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, CORRA, and other indices as applicable to each investment. As of September 30, 2025, 98% of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR. The remaining 2% of our loans by principal balance earned a fixed rate of interest. (3) Maximum maturity assumes all extension options are exercised by the borrower, however our loans and other investments may be repaid prior to such date. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any. As of September 30, 2025, 31% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 69% were open to repayment by the borrower without penalty. (4) Based on LTV as of the dates loans were originated or acquired by us, excluding any loans that are impaired. The following table details the index rate floors for our loans receivable portfolio as of September 30, 2025 ($ in thousands): | Index Rate Floors | Loans Receivable Principal Balance USD | Non-USD(1) | Total | | --- | ---: | ---: | ---: | | Fixed Rate | $180,857 | $137,149 | $318,006 | | 0.00% or no floor(2) | 1,796,816 | 4,966,038 | 6,762,854 | | 0.01% to 1.00% floor | 2,628,392 | 972,584 | 3,600,976 | | 1.01% to 2.00% floor | 676,479 | 1,371,685 | 2,048,164 | | 2.01% to 3.00% floor | 3,791,304 | 139,838 | 3,931,142 | | 3.01% or more floor | 1,313,773 | 213,619 | 1,527,392 | | Total(3) | $10,387,621 | $7,800,913 | $18,188,534 | (1) Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, and Canadian Dollar currencies. (2) Includes all impaired loans. (3) As of September 30, 2025, the weighted-average index rate floor of our floating-rate loans receivable principal balance was 1.25%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 1.90%. 63 The following table details the floating benchmark rates for our loans receivable portfolio as of September 30, 2025 (loans receivable principal balance amounts in thousands): | Loan Count | Currency Loans Receivable Principal Balance | Floating Rate Index(1) | Cash Coupon(2) | All-in Yield(2) | | ---: | ---: | --- | --- | --- | | 103 | $$10,387,621 | SOFR | + 3.11% | + 3.32% | | 17 | ££2,336,656 | SONIA | + 3.38% | + 3.46% | | 10 | €€2,205,311 | EURIBOR | + 2.93% | + 3.33% | | 7 | Various $2,071,333 | Other(3) | + 4.02% | + 4.24% | | 137 | $18,188,534 | | + 3.24% | + 3.46% | (1) We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S. dollar. We earn forward points on our forward contracts that reflect the interest rate differentials between the applicable base rate for our foreign currency investments and prevailing U.S. interest rates. These forward contracts effectively convert the foreign currency rate exposure for such investments to USD- equivalent interest rates. (2) In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any. (3) Includes floating rate loans indexed to STIBOR, CORRA, and BBSY indices. 64 The charts below detail the geographic distribution and types of properties securing our loan portfolio, as of September 30, 2025: Geographic Diversification (Net Loan Exposure)(1) Collateral Diversification (Net Loan Exposure)(1)(2) (1) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of September 30, 2025, which is our principal balance net of (i) $629.9 million of asset-specific debt, (ii) $69.2 million of cost- recovery proceeds, and (iii) our total loans receivable CECL reserve of $695.7 million. Our asset-specific debt is structurally non-recourse and term-matched to the corresponding collateral loans. Geographic locations that represent less than 1% of net loan exposure are excluded from the chart. (2) Assets with multiple components are proportioned into the relevant collateral types based on the allocated value of each collateral type. Refer to section VI of this Item 2 for details of our loan portfolio, on a loan-by-loan basis. #### Portfolio Management As of September 30, 2025, 96% of our loans were performing with risk ratings of “1” through “4,” and the remaining 4% were impaired with a risk rating of “5.” As of September 30, 2025, all borrowers under performing loans were in compliance with the applicable contractual terms of each respective loan, including any required payment of interest. We believe this demonstrates the overall strength of our loan portfolio and the commitment and financial wherewithal of our borrowers generally, which are primarily affiliated with large real estate private equity funds and other strong, well- capitalized, and experienced sponsors. We maintain a robust asset management relationship with our borrowers and utilize these relationships to maximize the performance of our portfolio, including during periods of volatility. We believe that we benefit from these relationships and from our long-standing core business model of originating senior loans collateralized by large assets in major markets with experienced, well-capitalized institutional sponsors. While we believe the principal amounts of our loans are generally adequately protected by underlying collateral value, there is a risk that we will not realize the entire principal value of certain investments. As of September 30, 2025, we had an aggregate $505.4 million asset-specific CECL reserve related to 65 12 of our loans receivable, with an aggregate amortized cost basis of $1.2 billion, net of cost-recovery proceeds. This CECL reserve was recorded based on our estimation of the fair value of each of the loan's underlying collateral as of September 30, 2025. Our portfolio monitoring and asset management operations benefit from the deep knowledge, experience, and information advantages derived from our position as part of Blackstone Real Estate’s real estate platform. Blackstone Real Estate is the largest owner of commercial real estate globally with over 12,500 commercial assets and a proven track record of successfully navigating market cycles and emerging stronger through periods of volatility. The market-leading real estate expertise derived from the strength of the Blackstone platform deeply informs our credit and underwriting process, and gives us the tools to expertly asset manage our portfolio and work with our borrowers throughout periods of economic stress and uncertainty. As discussed in Note 2 to our consolidated financial statements, we perform a quarterly review of our loan portfolio, assess the performance of each loan, and assign it a risk rating between “1” and “5”, from less risk to greater risk. Our loan portfolio had a weighted-average risk rating of 3.0 as of both September 30, 2025 and December 31, 2024. The following table allocates the net book value and net loan exposure balances based on our internal risk ratings ($ in thousands): | Risk Rating | September 30, 2025 Number of Loans | Net Book Value | Net Loan Exposure(1) | | ---: | ---: | ---: | ---: | | 1 | 6 | $409,199 | $408,355 | | 2 | 22 | 3,173,245 | 3,007,691 | | 3 | 80 | 10,578,120 | 10,087,715 | | 4 | 17 | 2,732,203 | 2,619,771 | | 5 | 12 | 1,174,152 | 670,206 | | Loans receivable | 137 | $18,066,919 | $16,793,738 | | CECL reserve | | (695,719) | | | Loans receivable, net | | $17,371,200 | | (1) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of September 30, 2025, which is our principal balance net of (i) $629.9 million of asset-specific debt, (ii) $69.2 million of cost- recovery proceeds, and (iii) our total loans receivable CECL reserve of $695.7 million. Our asset-specific debt is structurally non-recourse and term-matched to the corresponding collateral loans. #### Current Expected Credit Loss Reserve The CECL reserves required by GAAP reflect our current estimate of potential credit losses related to our loans and notes receivable included in our consolidated balance sheets. Other than a few narrow exceptions, GAAP requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the principle underlying the CECL model that all loans and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors. During the three months ended September 30, 2025, we recorded a net decrease of $45.1 million in the CECL reserves against our loans receivable portfolio, primarily driven by a $53.4 million decrease in our asset-specific CECL reserves, including charge-offs of our CECL reserves of $42.1 million. This was offset by an $8.2 million increase in our general CECL reserves, bringing our total loans receivable CECL reserve to $695.7 million as of September 30, 2025. The increase in our general CECL reserves was primarily as a result of an increase in the historical loss rate used in reserve calculations as a result of additional CECL charge-offs. The charge-offs primarily related to two previously impaired loans secured by a hospitality asset in New York, NY and an office asset in Atlanta, GA, that were resolved and transferred to REO during the three months ended September 30, 2025 pursuant to loan modifications that resulted in us consolidating the collateral assets. Refer to Notes 4 and 20 for further information. As of September 30, 2025, we had an aggregate $505.4 million asset-specific CECL reserve related to 12 of our loans 66 receivable, with an aggregate amortized cost basis of $1.2 billion, net of cost-recovery proceeds, and a concentration in the office sector with $382.2 million of reserves, generally driven by reduced tenant and capital markets demand in the office sector in recent years. Impairments are each determined individually as a result of changes in the specific credit quality factors for such loans. These factors included, among others, (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan. This CECL reserve was recorded based on our estimation of the fair value of each of the loan's underlying collateral as of September 30, 2025. No income was recorded on our impaired loans subsequent to determining that they were impaired. During the three and nine months ended September 30, 2025, we received an aggregate $9.7 million and $39.4 million, respectively, of cash proceeds from such loans that were applied as a reduction to the amortized cost basis of each respective loan. As of September 30, 2025, all borrowers under performing loans were in compliance with the applicable contractual terms of each respective loan, including any required payment of interest. Refer to Note 2 to our consolidated financial statements for further discussion of our policies on revenue recognition and our CECL reserves. ### Real Estate Owned As part of our portfolio management strategy to maximize economic outcomes, we may hold certain real estate owned, or REO, assets resulting from transactions in which we assume legal title, physical possession, or control of the collateral underlying a loan through a foreclosure, a deed-in-lieu of foreclosure transaction, or a loan modification in which we receive an equity interest in and/or control over decision-making at the property. As of September 30, 2025, we had 10 REO assets with an aggregate carrying value of $1.0 billion. ### Multifamily Joint Venture As of September 30, 2025, our Multifamily Joint Venture held a $43.3 million loan, which is included in the loan disclosures above. As of September 30, 2025, our Multifamily Joint Venture also held a $32.1 million REO asset. Refer to Note 2 to our consolidated financial statements for further discussion of our multifamily joint venture. ### Agency Multifamily Lending Partnership In the second quarter of 2024, we entered into our Agency Multifamily Lending Partnership that allows our borrowers to access multifamily agency financing through MTRCC’s Fannie Mae DUS and Freddie Mac Optigo lending platforms. We will receive a portion of origination, servicing, and other fees for loans that we refer to MTRCC for origination under both the Fannie Mae and Freddie Mac programs. Additionally, we will share in losses with MTRCC and Fannie Mae on loans that we refer to MTRCC for origination under the Fannie Mae program. During the nine months ended September 30, 2025, we referred one loan to MTRCC. ### Net Lease Joint Venture In the fourth quarter of 2024, we entered into our Net Lease Joint Venture with a Blackstone-advised investment vehicle to invest in triple net lease properties. Our investment in the joint venture is recorded on our consolidated balance sheets as an investment in unconsolidated entities. As of September 30, 2025, our investment in unconsolidated entities related to the joint venture totaled $77.7 million. During the nine months ended September 30, 2025 we contributed $76.4 million to the joint venture, did not receive any distributions, and recorded a $1.6 million loss from unconsolidated entities in our consolidated statements of operations. ### Bank Loan Portfolio Joint Venture In the second quarter of 2025, we entered into our Bank Loan Portfolio Joint Venture with a Blackstone-advised investment vehicle. In the second quarter of 2025, the Bank Loan Portfolio Joint Venture acquired a $1.4 billion portfolio of 171 performing senior commercial real estate loans from a regional bank. The loans are secured primarily by retail and multifamily properties located across various markets in the Mid-Atlantic region, are primarily fixed rate, and were acquired at a discount to par. In the third quarter of 2025, the Bank Loan Portfolio Joint Venture acquired a $606.0 million portfolio of 425 performing senior commercial real estate loans from a regional bank. The loans are secured primarily by net lease retail assets located throughout the United States, are fixed rate, and were acquired at a discount to par. We have an aggregate 35% ownership interest in the joint venture as of September 30, 2025. 67 Our Bank Loan Portfolio Joint Venture is recorded on our consolidated balance sheets as an investment in unconsolidated entities. As of September 30, 2025, our investment in the joint venture totaled $104.9 million. During the nine months ended September 30, 2025, we contributed $102.3 million to the joint venture, did not receive any distributions, and recorded $2.6 million of income from unconsolidated entities in our consolidated statements of operations. ### Loan Portfolio Financing Our loan portfolio financing consists of secured debt, securitizations, and asset-specific debt. The following table details our portfolio financing ($ in thousands): | | Portfolio Financing Outstanding Principal Balance September 30, 2025 | December 31, 2024 | | --- | ---: | ---: | | Secured debt | $9,548,332 | $9,705,529 | | Securitizations | 2,479,417 | 1,936,967 | | Asset-specific debt | 629,890 | 1,228,110 | | Total loan portfolio financing | $12,657,639 | $12,870,606 | ### Secured Debt The following table details our secured credit facilities by spread over the applicable base rates as of September 30, 2025 ($ in thousands): | Spread(1) | Nine Months Ended September 30, 2025 New Financings(2) | September 30, 2025 Total Borrowings | Wtd. Avg. All-in Cost(1)(3)(4) | Collateral(5) | Wtd. Avg. All-in Yield(1)(3) | Net Interest Margin(6) | | --- | ---: | ---: | --- | ---: | --- | --- | | + 1.50% or less | $1,385,800 | $4,547,118 | +1.54% | $6,600,493 | +2.99% | +1.45% | | + 1.51% to + 1.75% | 555,478 | 2,564,711 | +1.75% | 3,375,095 | +3.48% | +1.73% | | + 1.76% to + 2.00% | 104,841 | 935,067 | +2.10% | 1,766,876 | +3.28% | +1.18% | | + 2.01% or more | 137,147 | 1,501,436 | +2.63% | 2,340,713 | +4.24% | +1.61% | | Total | $2,183,266 | $9,548,332 | +1.82% | $14,083,177 | +3.35% | +1.53% | (1) The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, CORRA, and other indices as applicable. (2) Represents the amount of new borrowings we closed during the nine months ended September 30, 2025. (3) In addition to spread, the cost includes the associated deferred fees and expenses related to the respective borrowings. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any, and REO assets. (4) Represents the weighted-average all-in cost as of September 30, 2025 and is not necessarily indicative of the spread applicable to recent or future borrowings. (5) Represents the principal balance of the collateral loan assets and the book value of the collateral REO assets. (6) Represents the difference between the weighted-average all-in yield and weighted-average all-in cost. 68 ### Securitizations We have financed certain pools of our loans through CLOs. The following table details our securitized debt obligations and the underlying collateral assets that are financed by our CLOs ($ in thousands): | Securitized Debt Obligations 2025 FL5 Collateralized Loan Obligation | September 30, 2025 Count | Principal Balance | Book Value(1) | Wtd. Avg. Yield/Cost(2)(3) | Term(4) | | --- | ---: | ---: | ---: | --- | --- | | Senior CLO Securities Outstanding | 1 | $831,250 | $821,900 | + 2.15% | October 2042 | | Underlying Collateral Assets | 17 | 898,950 | 898,950 | + 3.50% | September 2028 | | 2021 FL4 Collateralized Loan Obligation | | | | | | | Senior CLO Securities Outstanding | 1 | 609,741 | 609,741 | + 1.45% | May 2038 | | Underlying Collateral Assets | 18 | 759,956 | 759,956 | + 2.66% | March 2027 | | 2020 FL3 Collateralized Loan Obligation | | | | | | | Senior CLO Securities Outstanding | 1 | 457,129 | 457,129 | + 2.51% | November 2037 | | Underlying Collateral Assets | 12 | 625,580 | 625,580 | + 2.78% | February 2027 | | 2020 FL2 Collateralized Loan Obligation | | | | | | | Senior CLO Securities Outstanding | 1 | 581,297 | 581,297 | + 1.76% | February 2038 | | Underlying Collateral Assets | 12 | 813,742 | 813,742 | + 2.71% | March 2027 | | Total | | | | | | | Senior CLO Securities Outstanding(5) | 4 | $2,479,417 | $2,470,067 | + 1.95% | | | Underlying Collateral Assets | 59 | $3,098,228 | $3,098,228 | + 3.15% | | (1) The book value of underlying collateral assets excludes any applicable CECL reserves. (2) In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees. (3) The weighted-average all-in yield and cost are expressed as a spread over SOFR. All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any, and REO assets. (4) Underlying Collateral Assets term represents the weighted-average final maturity of such loans, assuming all extension options are exercised by the borrower, and excludes REO assets. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations. (5) During the three and nine months ended September 30, 2025, we recorded $40.0 million and $107.8 million, respectively, of interest expense related to our securitized debt obligations. Refer to Note 8 and Note 20 to our consolidated financial statements for additional details of our securitized debt obligations. 69 ### Asset-Specific Debt The following table details our asset-specific debt ($ in thousands): | Asset-Specific Debt | September 30, 2025 Count | Principal Balance | Book Value(1) | Wtd. Avg. Yield/Cost(2) | Wtd. Avg. Term(3) | | --- | ---: | ---: | ---: | --- | --- | | Financing provided | 3 | $629,890 | $627,916 | + 3.18% | October 2029 | | Collateral assets | 3 | $781,189 | $775,248 | + 4.52% | October 2029 | (1) The book value of underlying collateral assets excludes any applicable CECL reserves. (2) The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates, which include SOFR and CORRA, as applicable. These floating rate loans and related liabilities are currency and index-matched to the applicable benchmark rate relevant in each arrangement. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees and financing costs. (3) The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrower. Our non-recourse, asset-specific debt is term-matched in each case to the corresponding collateral loans. ### Corporate Financing The following table details our outstanding corporate financing ($ in thousands): | | Corporate Financing Outstanding Principal Balance September 30, 2025 | December 31, 2024 | | --- | ---: | ---: | | Term loans | $1,808,127 | $1,764,437 | | Senior secured notes | 785,316 | 785,316 | | Convertible notes | 266,157 | 266,157 | | Total corporate financing | $2,859,600 | $2,815,910 | 70 The following table details our outstanding senior term loan facilities, or Term Loans, our outstanding Senior Secured Notes, or Senior Secured Notes, and convertible senior notes, or Convertible Notes, as of September 30, 2025 ($ in thousands): | Corporate Financing Term Loans | Face Value | Interest Rate(1) | | All-in Cost(1)(2) | Maturity | | --- | ---: | ---: | ---: | ---: | --- | | B-1 Term Loan | $309,268 | + 2.36% | | + 2.53% | April 23, 2026 | | B-6 Term Loan | 1,045,754 | + 3.00% | | + 3.55% | December 10, 2030 | | B-7 Term Loan | 453,105 | + 2.50% | | + 3.05% | May 9, 2029 | | Total term loans | $1,808,127 | | | | | | Senior Secured Notes | | | | | | | October 2021 | $335,316 | 3.75% | | 4.06% | January 15, 2027 | | December 2024 | 450,000 | 7.75% | (3) | 8.14% | December 1, 2029 | | Total senior secured notes | $785,316 | | | | | | Convertible Notes | | | | | | | Convertible Notes(4) | $266,157 | 5.50% | | 5.79% | March 15, 2027 | | Total corporate financings | $2,859,600 | | | | | (1) The B-6 Term Loan and the B-7 Term Loan borrowings are subject to a benchmark interest rate floor of 0.50%. The Term Loans are indexed to one-month SOFR. (2) Includes issue discounts, transaction expenses, and/or issuance costs, as applicable, that are amortized through interest expense over the life of each respective financing. (3) Represents the stated coupon rate of the notes. We have entered into an interest rate swap that effectively converts our fixed rate exposure to a SOFR + 3.95% floating rate exposure. Refer to Note 12 to our consolidated financial statements for further information. (4) The conversion price of the Convertible Notes is $36.27, which represents the price of class A common stock per share based on a conversion rate of 27.5702. The conversion rate represents the number of shares of class A common stock issuable per $1,000 principal amount of Convertible Notes. The cumulative dividend threshold has not been exceeded as of September 30, 2025. Refer to Note 2, Note 11, Note 12, and Note 13 to our consolidated financial statements for further discussion of our Term Loans, Senior Secured Notes, and Convertible Notes. ### Floating Rate Loan Portfolio Generally, our business model is such that rising interest rates will increase our net income, while declining interest rates will decrease net income. As of September 30, 2025, 98% of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR, and were financed with liabilities that pay interest at floating rates, which resulted in an amount of net equity that is positively correlated to rising interest rates, subject to the impact of interest rate floors on certain of our floating rate loans. Our liabilities are generally currency and index-matched to each collateral asset, resulting in a net exposure to movements in benchmark rates that varies by currency silo based on the relative proportion of floating rate assets and liabilities. 71 The following table details our investment portfolio’s exposure to interest rates by currency as of September 30, 2025 (amounts in thousands): | | USD | GBP | EUR | All Other(1) | | --- | ---: | ---: | ---: | ---: | | Floating rate loans(2)(3)(4)(5) | $8,975,881 | £2,224,306 | €2,205,311 | $2,071,333 | | Floating rate portfolio financings(2)(5)(6) | (6,900,576) | (1,685,131) | (1,564,506) | (1,655,445) | | Floating rate corporate financings(7) | (2,258,126) | — | — | — | | Net floating rate exposure | $(182,821) | £539,175 | €640,805 | $415,888 | | Net floating rate exposure in USD(8) | $(182,821) | $724,974 | $751,920 | $415,888 | (1) Includes Australian Dollar, Canadian Dollar, and Swedish Krona currencies. (2) Our floating rate loans and related liabilities are currency and index-matched to the applicable benchmark rate relevant in each arrangement. (3) Excludes $1.2 billion of floating rate impaired loans. (4) Our loan agreements generally require our borrowers to purchase interest rate caps, which mitigates our borrowers’ exposure to an increase in interest rates. (5) Excludes amounts related to our investments in unconsolidated entities. (6) Includes amounts outstanding under secured debt, securitizations, and asset-specific debt. Excludes amounts related to the indebtedness of our unconsolidated entities. (7) Includes amounts outstanding under Term Loans and the December 2024 Senior Secured Notes. In connection with the issuance of the December 2024 Senior Secured Notes, we entered into an interest rate swap with a notional amount of $450.0 million to effectively convert our fixed rate exposure to floating rate exposure for such notes. (8) Represents the U.S. dollar equivalent as of September 30, 2025. In addition to the risks related to fluctuations in cash flows and asset values associated with movements in interest rates, there is also the risk of non-performance on floating rate assets. In the case of a significant increase in interest rates, the cash flows of the collateral real estate assets may not be sufficient to pay debt service due under our loans, which may contribute to non-performance or, in severe cases, default. This risk is partially mitigated by our consideration of rising rate stress-testing during our underwriting process, which generally includes a requirement for our borrower to purchase an interest rate cap contract with an unaffiliated third party, provide an interest reserve deposit, and/or provide interest guarantees or other structural protections. During the nine months ended September 30, 2025, interest rate caps on $6.5 billion of performing loans, with a 3.7% weighted-average strike price, expired and 93% were replaced with new interest rate caps, with a weighted-average strike price of 3.8%, or interest guarantees. 72 ### III. Our Results of Operations ### Operating Results The following table sets forth information regarding our consolidated results of operations for the three months ended September 30, 2025 and June 30, 2025 ($ in thousands, except per share data): | Income from loans and other investments | Three Months Ended September 30, 2025 | June 30, 2025 | Change $ | | --- | ---: | ---: | ---: | | Interest and related income | $345,959 | $359,537 | $(13,578) | | Less: Interest and related expenses | 247,055 | 264,727 | (17,672) | | **Income from loans and other investments, net** | 98,904 | 94,810 | 4,094 | | Revenue from real estate owned | 33,733 | 38,812 | (5,079) | | Other income | 74 | 231 | (157) | | **Total net revenues** | 132,711 | 133,853 | (1,142) | | **Expenses** | | | | | Management and incentive fees | 16,849 | 17,036 | (187) | | General and administrative expenses | 12,747 | 13,526 | (779) | | Expenses from real estate owned | 43,100 | 47,796 | (4,696) | | Other expenses | 6 | — | 6 | | **Total expenses** | 72,702 | 78,358 | (5,656) | | Decrease (increase) in current expected credit loss reserve | 987 | (45,593) | 46,580 | | Income (loss) from unconsolidated entities | 3,924 | (2,015) | 5,939 | | **Income before income taxes** | 64,920 | 7,887 | 57,033 | | Income tax provision | 1,512 | 903 | 609 | | **Net income** | 63,408 | 6,984 | 56,424 | | Net income attributable to non-controlling interests | (11) | (15) | 4 | | **Net income attributable to Blackstone Mortgage Trust, Inc.** | $63,397 | $6,969 | $56,428 | | **Net income per share of common stock, basic and diluted** | $0.37 | $0.04 | $0.33 | | **Weighted-average shares of common stock outstanding, basic and diluted** | 171,812,685 | 171,893,905 | (81) | | **Dividends declared per share** | $0.47 | $0.47 | $— | #### Income from loans and other investments, net Income from loans and other investments, net increased $4.1 million during the three months ended September 30, 2025 compared to the three months ended June 30, 2025. The increase was primarily driven by (i) a $555.4 million decrease in the weighted-average principal balance of our outstanding financing arrangements during the three months ended September 30, 2025 compared to the three months ended June 30, 2025, and (ii) a $3.8 million increase as a result of the receipt of unaccrued default interest upon repayment of a loan that was previously in maturity default during the three months ended September 30, 2025. This was offset by a decrease in the weighted-average principal balance of our loan portfolio by $681.2 million during the three months ended September 30, 2025. #### Revenue from real estate owned Revenue from REO decreased by $5.1 million during the three months ended September 30, 2025 compared to the three months ended June 30, 2025. The decrease was primarily due to seasonality of the operations at our hospitality assets. 73 #### Other income Other income relates to origination, servicing, and other fees recognized in connection with our Agency Multifamily Lending Partnership. Other income decreased by $157,000 during the three months ended September 30, 2025 compared to the three months ended June 30, 2025, as a result of no loan referrals pursuant to the Agency Multifamily Lending Partnership during the three months ended September 30, 2025 that were originated and sold by MTRCC, compared to one corresponding loan referral during the three months ended June 30, 2025. #### Expenses Expenses include management and incentive fees payable to our Manager, general and administrative expenses, expenses from real estate owned, and other expenses. Expenses decreased by $5.7 million during the three months ended September 30, 2025 compared to the three months ended June 30, 2025 primarily due to (i) a decrease in expenses from real estate owned primarily due to lower operating expenses at certain of our REO assets, and (ii) a decrease in general and administrative expenses, primarily due to lower professional services expenses. #### Changes in current expected credit loss reserve During the three months ended September 30, 2025, we recorded a $1.0 million decrease in our CECL reserves, as compared to a $45.6 million increase during the three months ended June 30, 2025. The decrease during the three months ended September 30, 2025 is primarily due to a $53.4 million decrease in our asset-specific CECL reserves, primarily as a result of the resolution of two previously impaired loans. The charge-offs primarily related to two previously impaired loans secured by a hospitality asset in New York, NY and an office asset in Atlanta, GA, that were resolved and transferred to REO during the three months ended September 30, 2025 pursuant to loan modifications that resulted in us consolidating the collateral assets. This decrease was partially offset by an $8.2 million increase in our general CECL reserves driven by an increase in the historical loss rate used in reserve calculations as a result of additional CECL charge-offs. We may be required to record further increases to our CECL reserves in the future, depending on the performance of our portfolio and broader market conditions, and there may be volatility in the level of our CECL reserves. In particular, our loans secured by office buildings have experienced higher levels of CECL reserves and may continue to do so if market conditions relevant to office buildings do not improve. Any such reserve increases are difficult to predict, but are expected to be primarily the result of incremental loan impairments resulting from changes in the specific credit quality factors of such loans and to be concentrated in our loans receivable with a risk rating of “4” as of September 30, 2025. #### Income (loss) from unconsolidated entities During the three months ended September 30, 2025, we recorded income from unconsolidated entities of $3.9 million compared to a loss of $2.0 million during the three months ended June 30, 2025. This increase was primarily due to our share of income from our Bank Loan Portfolio Joint Venture as the three months ended September 30, 2025 reflected a full quarter of income recognition related to the portfolio our Bank Loan Portfolio Joint Venture acquired in June. #### Income tax provision The income tax provision increased by $609,000 during the three months ended September 30, 2025 compared to the three months ended June 30, 2025 primarily due to an increase in the income tax provisions related to our taxable REIT subsidiaries. #### Dividends per share During the three months ended September 30, 2025, we declared dividends of $0.47 per share, or $80.2 million in aggregate. During the three months ended June 30, 2025, we declared dividends of $0.47 per share, or $80.6 million in aggregate. 74 The following table sets forth information regarding our consolidated results of operations for the nine months ended September 30, 2025 and 2024 ($ in thousands, except per share data): | Income from loans and other investments | Nine Months Ended September 30, 2025 | 2024 | Change $ | | --- | ---: | ---: | ---: | | Interest and related income | $1,037,553 | $1,382,367 | $(344,814) | | Less: Interest and related expenses | 754,015 | 1,004,854 | (250,839) | | **Income from loans and other investments, net** | 283,538 | 377,513 | (93,975) | | Revenue from real estate owned | 109,578 | 1,214 | 108,364 | | Other income | 395 | — | 395 | | Gain on extinguishment of debt | — | 5,352 | (5,352) | | **Total net revenues** | 393,511 | 384,079 | 9,432 | | **Expenses** | | | | | Management and incentive fees | 51,120 | 56,258 | (5,138) | | General and administrative expenses | 38,937 | 40,811 | (1,874) | | Expenses from real estate owned | 137,198 | 3,647 | 133,551 | | Other expenses | 6 | — | 6 | | **Total expenses** | 227,261 | 100,716 | 126,545 | | Increase in current expected credit loss reserve | (94,111) | (519,747) | 425,636 | | Income from unconsolidated entities | 1,035 | — | 1,035 | | **Income (loss) before income taxes** | 73,174 | (236,384) | 309,558 | | Income tax provision | 3,133 | 2,832 | 301 | | **Net income (loss)** | 70,041 | (239,216) | 309,257 | | Net income attributable to non-controlling interests | (32) | (2,063) | 2,031 | | **Net income (loss) attributable to Blackstone Mortgage Trust, Inc.** | $70,009 | $(241,279) | $311,288 | | **Net income (loss) per share of common stock, basic and diluted** | $0.41 | $(1.39) | $1.80 | | **Weighted-average shares of common stock outstanding, basic and diluted** | 171,903,127 | 173,881,116 | (1,978) | | **Dividends declared per share** | $1.41 | $1.71 | $(0.30) | #### Income from loans and other investments, net Income from loans and other investments, net decreased $94.0 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease was primarily due to (i) a decrease in average floating rate indices during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, (ii) a $3.9 billion decrease in the weighted-average principal balance of our loan portfolio during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, and (iii) a decline in interest income related to additional loans accounted for under the cost-recovery method or loans that are now accounted for as REO assets during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This was offset by a $2.6 billion decrease in the weighted-average principal balance of our outstanding financing arrangements during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. #### Revenue from real estate owned Revenue from REO increased by $108.4 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to the acquisition of seven additional REO assets. 75 #### Gain on extinguishment of debt Gain on extinguishment of debt decreased by $5.4 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. There was no debt repurchase activity during the nine months ended September 30, 2025. During the nine months ended September 30, 2024 we recognized a gain on extinguishment of debt of $5.4 million related to the repurchase of an aggregate principal amount of $33.8 million, $30.8 million, and $2.3 million, of our Convertible Notes, Senior Secured Notes, and B-1 Term Loan, respectively. #### Expenses Expenses include management and incentive fees payable to our Manager, general and administrative expenses, expenses from real estate owned, and other expenses. Expenses increased by $126.5 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to a $133.6 million increase in expenses from real estate owned due to the acquisition of seven additional REO assets. This was partially offset by (i) a $5.1 million decrease in management fees payable to our Manager, driven primarily by lower Distributable Earnings, and (ii) a $1.9 million decrease in general and administrative expenses primarily due to a $2.3 million decrease in non-cash restricted stock amortization related to shares awarded under our long-term incentive plans. #### Changes in current expected credit loss reserve During the nine months ended September 30, 2025, we recorded a $94.1 million increase in our CECL reserves, as compared to a $519.7 million increase during the nine months ended September 30, 2024. The increase during the nine months ended September 30, 2025 is primarily due to an increase in our asset-specific CECL reserves, primarily as a result of three additional loans that were impaired during the nine months ended September 30, 2025. Two of the loans that were impaired during the nine months ended September 30, 2025 were secured by office assets, and one was secured by a life sciences / studio asset. The office sector has generally faced reduced tenant and capital markets demand in recent years. Impairments are each determined individually as a result of changes in the specific credit quality factors for such loans. These factors included, among others, (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan. Additionally, we recorded an increase in our general CECL reserves as a result of changes in the historical loss rate. We may be required to record further increases to our CECL reserves in the future, depending on the performance of our portfolio and broader market conditions, and there may be volatility in the level of our CECL reserves. In particular, our loans secured by office buildings have experienced higher levels of CECL reserves and may continue to do so if market conditions relevant to office buildings do not improve. Any such reserve increases are difficult to predict, but are expected to be primarily the result of incremental loan impairments resulting from changes in the specific credit quality factors of such loans and to be concentrated in our loans receivable with a risk rating of “4” as of September 30, 2025. #### Income from unconsolidated entities Income from unconsolidated entities of $1.0 million primarily represents our share of income from our Bank Loan Portfolio Joint Venture, offset by the acquisition costs incurred by our Bank Loan Portfolio Joint Venture in acquiring two portfolios of commercial mortgage loans during the nine months ended September 30, 2025. Additionally, this represents our share of the loss incurred by the Net Lease Joint Venture during the nine months ended September 30, 2025, driven by depreciation of the underlying real estate assets owned by the Net Lease Joint Venture. There was no income or loss from unconsolidated entities during the nine months ended September 30, 2024. #### Income tax provision The income tax provision increased by $301,000 during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, due to an increase in the income tax provisions related to our taxable REIT subsidiaries. #### Dividends per share During the nine months ended September 30, 2025, we declared dividends of $1.41 per share, or $241.5 million in aggregate. During the nine months ended September 30, 2024, we declared dividends of $1.71 per share, or $296.6 million in aggregate. 76 ### IV. Liquidity and Capital Resources ### Capitalization We have capitalized our business to date primarily through the issuance and sale of shares of our class A common stock, corporate debt, and asset-level financings. As of September 30, 2025, our capitalization structure included $3.6 billion of common equity, $2.9 billion of corporate debt, and $12.7 billion of asset-level financings. Our $2.9 billion of corporate debt includes $1.8 billion of Term Loan borrowings, $785.3 million of Senior Secured Notes, and $266.2 million of Convertible Notes. Our $12.7 billion of asset-level financings includes $9.5 billion of secured debt, $2.5 billion of securitizations, and $629.9 million of asset-specific debt, all of which are structured to produce term, currency, and index matched funding with no margin call provisions based upon capital markets events. As of September 30, 2025, we had $1.3 billion of liquidity that can be used to satisfy our short-term cash requirements and as working capital for our business. See Notes 7, 8, 9, 11, 12, and 13 to our consolidated financial statements for additional details regarding our secured debt, securitized debt obligations, asset-specific debt, Term Loans, Senior Secured Notes, and Convertible Notes, respectively. ### Debt-to-Equity Ratio and Total Leverage Ratio The following table presents our debt-to-equity ratio and total leverage ratio: | Debt-to-equity ratios(1) | September 30, 2025 | December 31, 2024 | | --- | ---: | ---: | | Debt-to-equity ratio(2) | 3.5x | 3.5x | | Adjusted debt-to-equity ratio(3) | 2.9x | 3.0x | | Total leverage ratios(1) | | | | Total leverage ratio(4) | 4.2x | 4.0x | | Adjusted total leverage ratio(5) | 3.5x | 3.4x | (1) The debt and leverage amounts included in the calculations above use gross outstanding principal balances, excluding any unamortized deferred financing costs and discounts. (2) Represents, in each case at period end, the ratio of (i) total outstanding secured debt, asset-specific debt, Term Loans, Senior Secured Notes, and convertible notes, less cash, to (ii) total equity. (3) Represents, in each case at period end, the ratio of (i) total outstanding secured debt, asset-specific debt, Term Loans, Senior Secured Notes, and convertible notes, less cash, to (ii) Adjusted Equity. Adjusted Equity is a non- GAAP financial measure. Refer to “Adjusted Debt-to-Equity Ratio and Adjusted Total Leverage Ratio” below for the definition of Adjusted Equity and a reconciliation to total equity. (4) Represents, in each case at period end, the ratio of (i) total outstanding secured debt, securitizations, asset-specific debt, Term Loans, Senior Secured Notes, and convertible notes, less cash, to (ii) total equity. (5) Represents, in each case at period end, the ratio of (i) total outstanding secured debt, securitizations, asset-specific debt, Term Loans, Senior Secured Notes, and convertible notes, less cash, to (ii) Adjusted Equity. Adjusted Equity is a non-GAAP financial measure. Refer to “Adjusted Debt-to-Equity Ratio and Adjusted Total Leverage Ratio” below for the definition of Adjusted Equity and a reconciliation to total equity. #### Adjusted Debt-to-Equity Ratio and Adjusted Total Leverage Ratio Our adjusted debt-to-equity and total leverage ratios are measures that are not prepared in accordance with GAAP, as they are calculated using Adjusted Equity, which we define as our total equity, excluding the aggregate CECL reserves on our loans receivable and unfunded loan commitments. We believe that Adjusted Equity provides meaningful information to consider in addition to our total equity determined in accordance with GAAP in the context of assessing our debt-to-equity and total leverage ratios. The adjusted debt-to-equity and total leverage ratios are metrics we use, in addition to our unadjusted debt-to-equity and total leverage ratios, when evaluating our capitalization structure, as Adjusted Equity excludes the unrealized impact of our CECL reserves, which may vary from quarter-to-quarter as our loan portfolio changes and market and economic conditions evolve. We believe these ratios, and therefore our Adjusted Equity, are useful financial metrics for existing and potential future holders of our 77 class A common stock to consider when evaluating how our business is capitalized and the relative amount of leverage in our business. Adjusted Equity does not represent our total equity and should not be considered as an alternate to GAAP total equity. In addition, our methodology for calculating Adjusted Equity may differ from methodologies employed by other companies to calculate the same or similar supplemental measures, and accordingly, our reported Adjusted Equity may not be comparable to the Adjusted Equity reported by other companies. The following table provides a reconciliation of Adjusted Equity to our GAAP total equity ($ in thousands): | | September 30, 2025 | December 31, 2024 | | --- | ---: | ---: | | Total equity | $3,597,403 | $3,794,189 | | Add back: aggregate CECL reserves | 711,608 | 746,495 | | Adjusted Equity | $4,309,011 | $4,540,684 | ### Sources of Liquidity Our primary sources of liquidity include cash and cash equivalents, available borrowings under our secured debt facilities, and net receivables from servicers related to loan repayments, which are set forth in the following table ($ in thousands): | | September 30, 2025 | December 31, 2024 | | --- | ---: | ---: | | Cash and cash equivalents | $377,921 | $323,483 | | Available borrowings under secured debt | 844,070 | 1,111,206 | | Loan principal payments held by servicer, net(1) | 94,315 | 74,313 | | | $1,316,306 | $1,509,002 | (1) Represents loan principal payments held by our third-party servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle, net of the related secured debt balance. During the nine months ended September 30, 2025, we generated cash flow from operating activities of $139.6 million and received $4.8 billion from loan principal collections, sales proceeds, and cost-recovery proceeds. Furthermore, we are able to generate incremental liquidity through provisions of certain of our CLOs, which allow us to effectively replace a repaid loan in the CLO by replenishment, increasing the principal amount of existing CLO collateral assets, or reinvestment, purchasing an equal amount of new eligible CLO collateral, to maintain the aggregate amount of collateral assets in the CLO, and the related financing outstanding. We have access to further liquidity through public and private offerings of equity and debt securities, syndicated term loans, and similar transactions. To facilitate public offerings, in July 2025, we filed a shelf registration statement with the SEC that is effective for a term of three years and expires in July 2028. The amount of securities to be issued pursuant to this shelf registration statement was not specified when it was filed and there is no specific dollar limit on the amount of securities we may issue. The securities covered by this registration statement include: (i) class A common stock; (ii) preferred stock; (iii) depositary shares representing preferred stock; (iv) debt securities; (v) warrants; (vi) subscription rights; (vii) purchase contracts; and (viii) units consisting of one or more of such securities or any combination of these securities. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering materials, at the time of any offering. We may also access liquidity through our dividend reinvestment plan and direct stock purchase plan, under which 9,966,682 shares of class A common stock were available for issuance as of September 30, 2025, and our “at the market” stock offering program, pursuant to which we may sell, from time to time, up to $480.9 million of additional shares of our class A common stock as of September 30, 2025. Refer to Note 15 to our consolidated financial statements for additional details. 78 ### Uses of Liquidity In addition to funding our lending and other investment activity and our general operating expenses, our primary uses of liquidity include interest and principal payments with respect to our $9.5 billion of outstanding borrowings under secured debt, our asset-specific debt, our Term Loans, our Senior Secured Notes, and our Convertible Notes. In July 2024, our board of directors authorized the repurchase of up to $150.0 million of our class A common stock. Under the repurchase program, repurchases may be made from time to time in open market transactions, in privately negotiated transactions, in agreements and arrangements structured in a manner consistent with Rules 10b-18 and 10b5-1 under the Exchange Act or otherwise. The timing and the actual amounts repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be changed, suspended or discontinued at any time and does not have a specified expiration date. During the nine months ended September 30, 2025, we repurchased 2,653,583 shares of class A common stock at a weighted-average price per share of $17.97, for a total cost of $47.7 million. As of September 30, 2025, the amount remaining available for repurchases under the program was $73.1 million. In October 2025, we repurchased an additional 3,336,416 shares of class A common stock at a weighted-average price per share of $18.38, for a total cost of $61.3 million, such that the amount remaining available for repurchases under the program was $11.6 million. Following these repurchases, our board of directors amended the program, such that, as of the date of this filing, we are authorized to repurchase up to $150.0 million of our class A common stock under the program, as amended. From time to time we have repurchased and may continue to repurchase our outstanding debt or shares of our class A common stock. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions, and other factors. The amounts involved in any such purchase transactions, individually or in the aggregate, may be material. As of September 30, 2025, we had unfunded commitments of $1.5 billion related to 57 loans receivable and $800.1 million of committed or identified financing for those commitments resulting in net unfunded commitments of $732.3 million. The unfunded loan commitments comprise funding for capital expenditures and construction, leasing costs, and interest and carry costs. Loan funding commitments are generally subject to certain conditions, including, without limitation, the progress of capital projects, leasing, and cash flows at the properties securing our loans. Therefore, the exact timing and amounts of such future loan fundings are uncertain and will depend on the current and future performance of the underlying collateral assets. We expect to fund our loan commitments over the remaining term of the related loans, which have a weighted-average future funding period of 2.1 years. 79 ### Contractual Obligations and Commitments Our contractual obligations and commitments as of September 30, 2025 were as follows ($ in thousands): | | Total Obligation | Payment Timing Less Than 1 Year(1) | 1 to 3 Years | 3 to 5 Years | More Than 5 Years | | --- | ---: | ---: | ---: | ---: | ---: | | Unfunded loan commitments(2) | $1,532,429 | $430,678 | $739,088 | $352,038 | $10,625 | | Principal repayments under secured debt(3) | 9,548,332 | 1,586,786 | 5,013,671 | 2,947,875 | — | | Principal repayments under asset-specific debt(3) | 629,890 | — | 76,548 | 553,342 | — | | Principal repayments of term loans(4) | 1,808,127 | 324,282 | 30,030 | 460,479 | 993,336 | | Principal repayments of senior secured notes | 785,316 | — | 335,316 | 450,000 | — | | Principal repayments of convertible notes(5) | 266,157 | — | 266,157 | — | — | | Interest payments(3)(6) | 2,074,860 | 732,584 | 876,018 | 450,229 | 16,029 | | Total(7) | $16,645,111 | $3,074,330 | $7,336,828 | $5,213,963 | $1,019,990 | (1) Represents known and estimated short-term cash requirements related to our contractual obligations and commitments. Refer to “Sources of Liquidity” above for information about our sources of funds to satisfy our short- term cash requirements. (2) The allocation of our unfunded loan commitments is based on the earlier of the commitment expiration date or the final loan maturity date, however we may be obligated to fund these commitments earlier than such date. (3) Our secured debt and asset-specific debt agreements are generally term-matched to their underlying collateral. Therefore, the allocation of both principal and interest payments under such agreements is generally allocated based on the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. In limited instances, the maturity date of the respective debt agreement is used. (4) The Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the initial principal balance due in quarterly installments. Refer to Note 11 to our consolidated financial statements for further details on our Term Loans. (5) Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer to Note 13 to our consolidated financial statements for further details on our Convertible Notes. (6) Represents interest payments on our secured debt, asset-specific debt, Term Loans, Senior Secured Notes, and convertible notes. Future interest payment obligations are estimated assuming the interest rates in effect as of September 30, 2025 will remain constant into the future. This is only an estimate as actual amounts borrowed and interest rates will vary over time. (7) Total does not include $2.5 billion of consolidated securitized debt obligations, as the satisfaction of these liabilities will not require cash outlays from us. We are also required to settle our foreign exchange and interest rate derivatives with our derivative counterparties upon maturity which, depending on foreign currency exchange and interest rate movements, may result in cash received from or due to such counterparties. The table above does not include these amounts as they are not fixed and determinable. Refer to Note 14 to our consolidated financial statements for details regarding our derivative contracts. We are required to pay our Manager a base management fee, an incentive fee, and reimbursements for certain expenses pursuant to our Management Agreement. The table above does not include the amounts payable to our Manager under our Management Agreement as they are not fixed and determinable. Refer to Note 16 to our consolidated financial statements for additional terms and details of the fees payable under our Management Agreement. As a REIT, we generally must distribute substantially all of our net taxable income to stockholders in the form of dividends to comply with the REIT provisions of the Internal Revenue Code. Our taxable income does not necessarily equal our net income as calculated in accordance with GAAP, or our Distributable Earnings as described above. 80 ### Cash Flows The following table provides a breakdown of the net change in our cash and cash equivalents ($ in thousands): | | Nine Months Ended September 30, 2025 | 2024 | | --- | ---: | ---: | | Cash flows provided by operating activities | $139,565 | $281,908 | | Cash flows provided by investing activities | 601,564 | 2,150,500 | | Cash flows used in financing activities | (694,160) | (2,458,947) | | Net increase (decrease) in cash and cash equivalents | $46,969 | $(26,539) | We experienced a net increase in cash and cash equivalents of $47.0 million for the nine months ended September 30, 2025, compared to a net decrease of $26.5 million for the nine months ended September 30, 2024. During the nine months ended September 30, 2025, we (i) received $4.8 billion from loan principal collections and sales proceeds, (ii) received $831.3 million of net proceeds from the issuance of a securitized debt obligation, and (iii) received a net $50.0 million under our secured term loan borrowings. Also, during the nine months ended September 30, 2025, we (i) funded $3.9 billion of loans, (ii) repaid a net $601.8 million of asset-specific financings, (iii) repaid a net $342.9 million under our secured debt borrowings, (iv) paid $242.5 million of dividends on our class A common stock, (v) repaid $193.3 million of securitized debt obligations, (vi) invested $178.7 million in unconsolidated entities, and (vii) paid $47.8 million to repurchase shares of our class A common stock. Refer to Note 3 to our consolidated financial statements for further discussion of our loan activity. Refer to Notes 7, 8, and 15 to our consolidated financial statements for further discussion of our secured debt, securitized debt obligations, and equity, respectively. ### V. Other Items ### Income Taxes We have elected to be taxed as a REIT under the Internal Revenue Code for U.S. federal income tax purposes. We generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings. To the extent that we satisfy this distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws. Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Internal Revenue Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to the nature of our assets and the sources of our income. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full taxable years. As of September 30, 2025 and December 31, 2024, we were in compliance with all REIT requirements. Furthermore, our taxable REIT subsidiaries are subject to federal, state, and local income tax on their net taxable income. Refer to Note 17 to our consolidated financial statements for further discussion of our income taxes. ### Critical Accounting Policies Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. We evaluated our critical accounting policies and believe them to be appropriate. The following is a summary of our significant accounting policies that we believe are the most affected by our judgments, estimates, and assumptions: 81 #### Current Expected Credit Losses The current expected credit loss, or CECL, reserve required under the FASB Accounting Standards Codification, or ASC, Topic 326 “Financial Instruments – Credit Losses,” or ASC 326, reflects our current estimate of potential credit losses related to our portfolio. We estimate our CECL reserves primarily using the Weighted-Average Remaining Maturity, or WARM method, which has been identified as an acceptable loss-rate method for estimating CECL reserves in the Financial Accounting Standards Board Staff Q&A Topic 326, No. 1. Estimating the CECL reserve requires judgment, including the following assumptions: - Historical loan loss reference data: To estimate the historic loan losses relevant to our portfolio, we have augmented our historical loan performance with market loan loss data licensed from Trepp LLC. This database includes commercial mortgage-backed securities, or CMBS, issued since January 1, 1999 through August 31, 2025\. Within this database, we focused our historical loss reference calculations on the most relevant subset of available CMBS data, which we determined based on loan metrics that are most comparable to our loan portfolio including asset type, geography, and origination loan-to-value, or LTV. We believe this CMBS data, which includes month-over-month loan and property performance, is the most relevant, available, and comparable dataset to our portfolio. - Expected timing and amount of future loan fundings and repayments: Expected credit losses are estimated over the contractual term of each loan, adjusted for expected repayments. As part of our quarterly review of our loan portfolio, we assess the expected repayment date of each loan, which is used to determine the contractual term for purposes of computing our CECL reserves. Additionally, the expected credit losses over the contractual period of our loans are subject to the obligation to extend credit through our unfunded loan commitments. The CECL reserve for unfunded loan commitments is adjusted quarterly, as we consider the expected timing of future funding obligations over the estimated life of the loan. The considerations in estimating our CECL reserve for unfunded loan commitments are similar to those used for the related outstanding loans receivable. - Current credit quality of our portfolio: Our risk rating is our primary credit quality indicator in assessing our CECL reserves. We perform a quarterly risk review of our portfolio of loans and assign each loan a risk rating based on a variety of factors, including, without limitation, origination LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. - Expectations of performance and market conditions: Our CECL reserves are adjusted to reflect our estimation of the current and future economic conditions that impact the performance of the commercial real estate assets securing our loans. These estimations include unemployment rates, interest rates, expectations of inflation and/or recession, and other macroeconomic factors impacting the likelihood and magnitude of potential credit losses for our loans during their anticipated term. In addition to the CMBS data we have licensed from Trepp LLC, we have also licensed certain macroeconomic financial forecasts to inform our view of the potential future impact that broader economic conditions may have on our loan portfolio’s performance. We generally also incorporate information from other sources, including information and opinions available to our Manager, to further inform these estimations. This process requires significant judgments about future events that, while based on the information available to us as of the balance sheet date, are ultimately indeterminate and the actual economic condition impacting our portfolio could vary significantly from the estimates we made as of September 30, 2025. - Impairment: impairment is indicated when it is deemed probable that we will not be able to collect all amounts due to us pursuant to the contractual terms of the loan. Determining that a loan is impaired requires significant judgment from management and is based on several factors including (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan. If a loan is determined to be impaired, we record the impairment as a component of our CECL reserves by applying the practical expedient for collateral dependent loans. The CECL reserves are assessed on an individual basis for these loans by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed relevant by us. Actual losses, if any, could ultimately differ materially from these estimates. We only expect to charge off the impairment losses in our consolidated financial statements prepared in accordance with GAAP if and when such amounts are deemed non- recoverable. This is generally at the time a loan is repaid or foreclosed, or the underlying collateral assets are otherwise consolidated. However, non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected. 82 These assumptions vary from quarter-to-quarter as our loan portfolio changes and market and economic conditions evolve. The sensitivity of each assumption and its impact on the CECL reserves may change over time and from period to period. During the nine months ended September 30, 2025, our CECL reserves decreased by $34.9 million, bringing our total reserves to $711.6 million as of September 30, 2025. See Notes 2 and 3 to our consolidated financial statements for further discussion of our CECL reserves. #### Revenue Recognition Interest income from our loans receivable portfolio is recognized over the life of each loan using the effective interest method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these investments is deferred and recorded over the term of the loan as an adjustment to yield. Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in our opinion, recovery of income and principal becomes doubtful. Interest received is then recorded as income or as a reduction in the amortized cost basis, based on the specific facts and circumstances, until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses are deferred and recognized as a reduction to interest income, however expenses related to loans we acquire are included in general and administrative expenses as incurred. The sources of revenue from our REO assets, which is included in revenue from real estate owned on our consolidated statements of operations, and the related revenue recognition policies are as follows: Rental income primarily consists of base rent income arising from tenant leases at our office and multifamily properties. Base rent is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. We begin to recognize revenue upon the acquisition of the related property or when a tenant takes possession of the leased space. Other operating income primarily consists of income from our hospitality properties and tenant reimbursement income. Revenue from our hospitality properties consists primarily of room revenue and food and beverage revenue. Room revenue is recognized when the related room is occupied and other hospitality revenue is recognized when the service is rendered. Tenant reimbursement income primarily consists of amounts due from tenants for costs related to common area maintenance, real estate taxes, and other recoverable costs included in lease agreements. We evaluate the collectibility of receivables related to rental revenue on an individual lease basis and exercise judgment in assessing collectability considering the length of time a receivable has been outstanding, tenant credit-worthiness, payment history, available information about the financial condition of the tenant, and current economic trends, among other factors. Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue. #### Real Estate Owned We may assume legal title, physical possession, or control of the collateral underlying a loan through a foreclosure, a deed- in-lieu of foreclosure transaction, or a loan modification in which we receive an equity interest in and/or control over decision-making at the property, resulting in us consolidating the real estate assets as VIEs. These real estate acquisitions are classified as real estate owned, or REO, on our consolidated balance sheet and are initially recognized at fair value on the acquisition date in accordance with the ASC Topic 805, “Business Combinations,” or ASC 805. Upon acquisition of REO assets, we assess the fair value of acquired tangible and intangible assets, which may include land, buildings, tenant improvements, “above-market” and “below-market” leases, acquired in-place leases, other identified intangible assets and assumed liabilities, as applicable, and allocate the fair value to the acquired assets and assumed liabilities. We assess and consider fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that we deem appropriate, as well as other available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends, and market and economic conditions. We capitalize acquisition-related costs associated with asset acquisitions. Real estate assets held for investment, except for land, are depreciated using the straight-line method over the assets’ estimated useful lives of up to 40 years for buildings and 10 years for tenant improvements. Renovations and/or replacements that improve or extend the life of the asset are capitalized and depreciated over their estimated useful lives. Lease intangibles are amortized over the remaining term of applicable leases on a straight-line basis. The cost of ordinary repairs and maintenance are expensed as incurred. 83 Real estate assets held for investment are assessed for impairment on a quarterly basis. If the depreciated cost basis of the asset exceeds the undiscounted cash flows over the remaining holding period, the asset is considered for impairment. The impairment loss is recognized when the carrying value of the real estate assets exceed their fair value. The evaluation of anticipated future cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates, capital requirements and anticipated holding periods that could differ materially from actual results. Real estate assets are classified as held for sale in the period when they meet the criteria under ASC Topic 360 “Property, Plant, and Equipment.” Once a real estate asset is classified as held for sale, depreciation is suspended and the asset is reported at the lower of its carrying value or fair value less cost to sell. If circumstances arise and we decide not to sell a real estate asset previously classified as held for sale, the real estate asset is reclassified as held for investment. Upon reclassification, the real estate asset is measured at the lower of (i) its carrying amount prior to classification as held for sale, adjusted for depreciation expense that would have been recognized had the real estate been classified as held for investment, and (ii) its estimated fair value at the time of reclassification. As of September 30, 2025, we had 10 REO assets that were all classified as held for investment. 84 ### VI. Loan Portfolio Details The following table provides details of our loan portfolio, on a loan-by-loan basis, as of September 30, 2025 ($ in millions): *Senior Loan Portfolio(1)* | | Property Type | Location | Origination Date(2) | Total Commitment(3) | Principal Balance | Net Book Value(4) | Cash Coupon(5) | | All-in Yield(5) | Maximum Maturity(6) | Loan Per SQFT / Unit / Key | Origination LTV(2) | Risk Rating | | ---: | --- | --- | --- | ---: | ---: | ---: | --- | ---: | --- | --- | --- | ---: | ---: | | 1 | Mixed-Use | Dublin, IE | 8/14/2019 | $1,018 | $970 | $969 | +3.20% | | +3.95% | 1/29/2027 | $280 / sqft | 74% | 3 | | 2 | Hospitality | Diversified, AU | 6/24/2022 | 875 | 875 | 869 | +4.75% | | +4.93% | 6/21/2030 | $398 / sqft | 59% | 3 | | 3 | Mixed-Use | Diversified, Spain | 3/22/2018 | 548 | 548 | 548 | +3.25% | | +3.31% | 3/15/2026 | n / a | 71% | 4 | | 4 | Industrial | Diversified, SE | 3/30/2021 | 506 | 506 | 505 | +3.20% | | +3.41% | 5/15/2026 | $92 / sqft | 76% | 2 | | 5 | Mixed-Use | Austin | 6/28/2022 | 675 | 488 | 483 | +4.60% | | +5.08% | 7/9/2029 | $405 / sqft | 53% | 3 | | 6 | Self-Storage | Diversified, CAN | 2/20/2025 | 449 | 449 | 449 | +3.50% | | +3.50% | 2/9/2030 | $157 / sqft | 58% | 2 | | 7 | Mixed-Use | New York | 12/9/2021 | 385 | 382 | 382 | +2.76% | | +3.00% | 12/9/2026 | $131 / sqft | 50% | 3 | | 8 | Industrial | Diversified, UK | 4/7/2025 | 350 | 350 | 348 | +2.55% | | +2.88% | 4/7/2030 | $347 / sqft | 67% | 3 | | 9 | Multifamily | London, UK | 12/23/2021 | 347 | 347 | 343 | +4.25% | | +4.95% | 6/24/2028 | $383,322 / unit | 59% | 3 | | 10 | Office | Chicago | 12/11/2018 | 356 | 337 | 339 | +1.75% | | +1.75% | 12/9/2026 | $282 / sqft | 78% | 4 | | 11 | Industrial | Diversified, UK | 5/15/2025 | 304 | 304 | 303 | +2.70% | | +2.89% | 5/15/2028 | $144 / sqft | 69% | 3 | | 12 | Industrial | Diversified, UK | 5/6/2022 | 301 | 301 | 301 | +3.50% | | +3.71% | 5/6/2027 | $95 / sqft | 53% | 2 | | 13 | Other | Diversified, UK | 1/11/2019 | 291 | 291 | 291 | +5.17% | | +5.06% | 6/14/2028 | $231 / sqft | 74% | 3 | | 14 | Office | Washington, DC | 9/29/2021 | 293 | 288 | 287 | +2.81% | | +3.07% | 10/9/2026 | $375 / sqft | 66% | 2 | | 15 | Office | Seattle | 1/26/2022 | 338 | 286 | 285 | +4.10% | | +4.77% | 2/9/2027 | $598 / sqft | 56% | 3 | | 16 | Multifamily | New York | 2/27/2020 | 273 | 273 | 273 | +2.70% | | +2.83% | 1/9/2027 | $600,280 / unit | 59% | 3 | | 17 | Industrial | Diversified, EUR | 6/5/2025 | 249 | 249 | 246 | +2.70% | | +2.97% | 7/19/2030 | $67 / sqft | 70% | 3 | | 18 | Office | New York | 4/11/2018 | 243 | 243 | 242 | +2.25% | | +2.62% | 3/7/2028 | $307 / sqft | 52% | 4 | | 19 | Multifamily | London, UK | 7/16/2021 | 246 | 237 | 237 | +3.25% | | +3.51% | 2/15/2027 | $243,585 / unit | 69% | 3 | | 20 | Multifamily | Reno | 2/23/2022 | 240 | 230 | 230 | +2.60% | | +3.07% | 3/9/2027 | $213,925 / unit | 74% | 3 | | 21 | Office | Berlin, DEU | 6/27/2019 | 260 | 227 | 227 | +1.00% | | +1.13% | 6/6/2030 | $475 / sqft | 62% | 4 | | 22 | Mixed-Use | New York | 12/22/2016 | 252 | 222 | 216 | +10.50% | | +10.50% | 6/9/2028 | $313 / sqft | n/m | 5 | | 23 | Industrial | Diversified, US | 2/13/2025 | 227 | 210 | 208 | +3.10% | | +3.49% | 3/9/2030 | $716,919 / acre | 62% | 3 | | 24 | Industrial | Diversified, UK | 3/28/2025 | 206 | 206 | 204 | +2.45% | | +2.74% | 3/28/2030 | $129 / sqft | 69% | 3 | | 25 | Industrial | Diversified, UK | 4/11/2025 | 202 | 202 | 200 | +2.40% | | +2.77% | 4/11/2030 | $115 / sqft | 69% | 3 | | 26 | Office | Denver | 2/15/2022 | 191 | 185 | 169 | +2.90% | | +2.90% | 3/9/2027 | $367 / sqft | n/m | 5 | | 27 | Office | New York | 7/23/2021 | 244 | 184 | 184 | -1.30% | (7) | -1.03% | 8/9/2028 | $596 / sqft | 53% | 4 | | 28 | Retail | Diversified, UK | 3/9/2022 | 182 | 182 | 181 | +2.75% | | +2.88% | 8/15/2028 | $154 / sqft | 55% | 2 | | 29 | Life Sciences | Boston | 5/13/2021 | 199 | 179 | 179 | +3.66% | | +3.66% | 6/9/2026 | $897 / sqft | n/m | 5 | | 30 | Multifamily | Dallas | 1/27/2022 | 178 | 178 | 179 | +3.10% | | +3.24% | 2/9/2027 | $116,020 / unit | 71% | 4 | 85 *Senior Loan Portfolio(1)* | | Property Type | Location | Origination Date(2) | Total Commitment(3) | Principal Balance | Net Book Value(4) | Cash Coupon(5) | All-in Yield(5) | Maximum Maturity(6) | Loan Per SQFT / Unit / Key | Origination LTV(2) | Risk Rating | | ---: | --- | --- | --- | ---: | ---: | ---: | --- | --- | --- | --- | ---: | ---: | | 31 | Hospitality | Los Angeles | 3/7/2022 | $156 | $156 | $156 | +3.45% | +3.66% | 6/9/2026 | $624,000 / key | 64% | 3 | | 32 | Hospitality | New York | 6/4/2018 | 153 | 153 | 153 | +4.00% | +4.40% | 11/9/2025 | $251,647 / key | 52% | 2 | | 33 | Self-Storage | London, UK | 11/18/2021 | 152 | 152 | 152 | +3.25% | +3.51% | 11/18/2026 | $194 / sqft | 65% | 2 | | 34 | Office | Fort Lauderdale | 1/7/2022 | 155 | 152 | 152 | +3.70% | +3.94% | 1/9/2027 | $392 / sqft | 55% | 1 | | 35 | Multifamily | Dublin, IE | 12/15/2021 | 147 | 145 | 145 | +2.75% | +3.00% | 12/9/2026 | $363,877 / unit | 79% | 3 | | 36 | Multifamily | San Jose | 4/2/2025 | 182 | 145 | 143 | +2.35% | +2.76% | 4/9/2030 | $308,851 / unit | 67% | 3 | | 37 | Multifamily | Diversified, AU | 1/10/2025 | 142 | 142 | 141 | +3.85% | +4.52% | 1/10/2028 | $428,252 / unit | 76% | 3 | | 38 | Multifamily | Manchester, UK | 6/30/2025 | 140 | 140 | 139 | +2.30% | +2.65% | 6/30/2029 | $300,082 / unit | 63% | 3 | | 39 | Mixed-Use | New York | 1/17/2020 | 183 | 139 | 138 | +3.12% | +3.44% | 2/9/2028 | $109 / sqft | 43% | 3 | | 40 | Office | London, UK | 12/20/2019 | 137 | 137 | 137 | 4.00% | 4.00% | 3/31/2029 | $696 / sqft | 68% | 4 | | 41 | Office | Miami | 12/10/2021 | 135 | 135 | 135 | +3.11% | +3.36% | 1/9/2027 | $452 / sqft | 49% | 2 | | 42 | Office | Diversified, UK | 11/23/2018 | 134 | 134 | 133 | +3.50% | +3.74% | 11/15/2029 | $969 / sqft | 50% | 3 | | 43 | Office | Miami | 3/28/2022 | 130 | 128 | 128 | +2.55% | +2.79% | 4/9/2027 | $338 / sqft | 69% | 3 | | 44 | Multifamily | San Bernardino | 9/14/2021 | 128 | 127 | 127 | +2.81% | +3.05% | 10/9/2026 | $255,906 / unit | 75% | 3 | | 45 | Office | San Jose | 8/24/2021 | 156 | 126 | 124 | +2.71% | +2.71% | 9/9/2028 | $297 / sqft | n/m | 5 | | 46 | Multifamily | Miami | 11/27/2024 | 125 | 125 | 124 | +2.80% | +3.17% | 12/9/2029 | $260,417 / unit | 71% | 3 | | 47 | Retail | San Diego | 8/27/2021 | 122 | 122 | 122 | +3.11% | +3.36% | 9/9/2026 | $464 / sqft | 58% | 3 | | 48 | Multifamily | Miami | 6/1/2021 | 120 | 120 | 120 | +2.96% | +3.32% | 6/9/2026 | $298,507 / unit | 61% | 2 | | 49 | Office | Houston | 7/15/2019 | 136 | 117 | 117 | +3.01% | +3.22% | 8/9/2028 | $212 / sqft | 58% | 4 | | 50 | Multifamily | Diversified, UK | 3/29/2021 | 116 | 116 | 116 | +4.02% | +4.28% | 3/29/2026 | $50,955 / unit | 61% | 3 | | 51 | Multifamily | Phoenix | 12/29/2021 | 110 | 110 | 110 | +2.85% | +3.02% | 1/9/2027 | $189,003 / unit | 64% | 3 | | 52 | Mixed-Use | New York | 3/10/2020 | 109 | 109 | 109 | +3.00% | +3.00% | 7/11/2029 | $668 / sqft | 48% | 2 | | 53 | Hospitality | Napa Valley | 4/29/2022 | 106 | 106 | 106 | +3.50% | +3.85% | 2/18/2027 | $1,116,719 / key | 66% | 3 | | 54 | Studio | Los Angeles | 6/28/2019 | 106 | 106 | 105 | +3.75% | +4.03% | 2/1/2026 | $531 / sqft | 48% | 4 | | 55 | Multifamily | Tampa | 2/15/2022 | 106 | 106 | 105 | +2.85% | +3.11% | 3/9/2027 | $241,972 / unit | 73% | 2 | | 56 | Office | Orange County | 8/31/2017 | 105 | 105 | 105 | +2.62% | +2.62% | 9/9/2026 | $162 / sqft | 58% | 4 | | 57 | Office | Chicago | 9/30/2021 | 102 | 102 | 102 | 5.00% | 5.00% | 10/9/2029 | $113 / sqft | 43% | 3 | | 58 | Office | Minneapolis | 11/27/2019 | 104 | 102 | 94 | +7.86% | +7.86% | 10/31/2025 | $93 / sqft | n/m | 5 | | 59 | Multifamily | Diversified, NL | 3/27/2025 | 100 | 100 | 100 | +2.70% | +2.97% | 3/31/2028 | $121,020 / unit | 62% | 2 | | 60 | Hospitality | Honolulu | 1/30/2020 | 99 | 99 | 99 | +3.50% | +3.66% | 2/9/2027 | $270,109 / key | 63% | 3 | 86 *Senior Loan Portfolio(1)* | | Property Type | Location | Origination Date(2) | Total Commitment(3) | Principal Balance | Net Book Value(4) | Cash Coupon(5) | All-in Yield(5) | Maximum Maturity(6) | Loan Per SQFT / Unit / Key | Origination LTV(2) | Risk Rating | | ---: | --- | --- | --- | ---: | ---: | ---: | --- | --- | --- | --- | ---: | ---: | | 61 | Industrial | New York | 6/18/2021 | $99 | $99 | $98 | +2.71% | +2.96% | 7/9/2026 | $51 / sqft | 55% | 1 | | 62 | Hospitality | Honolulu | 3/13/2018 | 98 | 98 | 98 | +3.11% | +3.36% | 4/9/2027 | $152,536 / key | 50% | 3 | | 63 | Industrial | Diversified, US | 5/22/2025 | 115 | 98 | 97 | +3.00% | +3.41% | 6/9/2030 | $830,987 / acre | 56% | 3 | | 64 | Industrial | Diversified, BE | 3/7/2025 | 111 | 97 | 97 | +2.75% | +3.32% | 3/7/2030 | $41 / sqft | 57% | 2 | | 65 | Multifamily | Miami | 3/29/2022 | 97 | 97 | 98 | +1.80% | +2.21% | 4/9/2027 | $271,118 / unit | 75% | 4 | | 66 | Multifamily | San Antonio | 3/20/2025 | 97 | 97 | 96 | +2.80% | +3.16% | 4/9/2030 | $449,074 / unit | 72% | 3 | | 67 | Multifamily | Phoenix | 10/1/2021 | 97 | 97 | 98 | +1.87% | +2.79% | 10/1/2026 | $224,302 / unit | 77% | 4 | | 68 | Retail | New York | 9/24/2025 | 121 | 96 | 95 | +3.35% | +3.76% | 10/9/2030 | $139 / sqft | 56% | 3 | | 69 | Multifamily | Philadelphia | 10/28/2021 | 96 | 96 | 96 | +3.00% | +3.24% | 11/9/2026 | $352,399 / unit | 79% | 3 | | 70 | Hospitality | Diversified, Spain | 9/30/2021 | 101 | 95 | 95 | +4.00% | +4.31% | 9/30/2026 | $148,637 / key | 60% | 3 | | 71 | Office | Washington, DC | 12/21/2021 | 103 | 94 | 94 | +2.70% | +2.94% | 1/9/2027 | $324 / sqft | 68% | 3 | | 72 | Multifamily | Orlando | 10/27/2021 | 93 | 93 | 93 | +2.61% | +2.81% | 11/9/2026 | $155,612 / unit | 75% | 3 | | 73 | Multifamily | Seattle | 9/13/2024 | 94 | 93 | 93 | +3.25% | +4.11% | 11/9/2027 | $500,796 / unit | 68% | 3 | | 74 | Hospitality | Boston | 3/3/2022 | 92 | 92 | 92 | +2.75% | +2.99% | 3/9/2027 | $418,182 / key | 64% | 2 | | 75 | Mixed-Use | San Francisco | 6/14/2022 | 106 | 90 | 90 | +2.95% | +3.20% | 7/9/2027 | $187 / sqft | 76% | 4 | | 76 | Hospitality | San Francisco | 10/16/2018 | 88 | 88 | 88 | +7.36% | +7.36% | 5/9/2025 | $191,807 / key | n/m | 5 | | 77 | Industrial | Dublin, IE | 8/17/2022 | 83 | 83 | 83 | +3.35% | +3.50% | 8/17/2027 | $133 / sqft | 72% | 2 | | 78 | Multifamily | Charlotte | 7/29/2021 | 82 | 82 | 82 | +2.76% | +3.25% | 8/9/2026 | $223,735 / unit | 78% | 3 | | 79 | Hospitality | Diversified, US | 8/27/2021 | 79 | 79 | 78 | +4.60% | +4.84% | 9/9/2026 | $116,598 / key | 67% | 3 | | 80 | Multifamily | Tampa | 12/21/2021 | 74 | 74 | 74 | +2.70% | +2.94% | 1/9/2027 | $217,353 / unit | 77% | 3 | | 81 | Retail | Utrecht, NL | 5/30/2025 | 73 | 73 | 73 | +2.80% | +3.16% | 5/30/2030 | $173 / sqft | 62% | 3 | | 82 | Multifamily | Las Vegas | 3/31/2022 | 68 | 68 | 68 | +2.80% | +3.04% | 4/9/2027 | $149,295 / unit | 71% | 3 | | 83 | Multifamily | Miami | 7/31/2025 | 68 | 68 | 67 | +2.60% | +2.96% | 8/9/2030 | $229,730 / unit | 72% | 3 | | 84 | Office | Los Angeles | 4/6/2021 | 62 | 62 | 62 | 6.00% | 6.00% | 1/9/2030 | $254 / sqft | 65% | 2 | | 85 | Office | Nashville | 6/30/2021 | 65 | 61 | 61 | +2.95% | +3.20% | 7/9/2026 | $252 / sqft | 71% | 3 | | 86 | Hospitality | Bermuda | 4/26/2024 | 69 | 61 | 61 | +4.95% | +5.62% | 5/9/2029 | $693,780 / key | 39% | 2 | | 87 | Office | Fort Lauderdale | 12/10/2020 | 61 | 60 | 60 | +3.30% | +3.54% | 1/9/2026 | $209 / sqft | 68% | 3 | | 88 | Multifamily | Tacoma | 10/28/2021 | 60 | 60 | 60 | +2.66% | +3.18% | 11/9/2027 | $182,591 / unit | 70% | 3 | | 89 | Multifamily | Salt Lake City | 7/30/2021 | 59 | 59 | 58 | +2.95% | +3.22% | 8/9/2027 | $212,618 / unit | 73% | 3 | | 90 | Multifamily | Phoenix | 12/17/2021 | 58 | 58 | 58 | +2.65% | +2.85% | 1/9/2027 | $209,601 / unit | 69% | 3 | 87 *Senior Loan Portfolio(1)* | Property Type Location Origination Date(2) | Total Commitment(3) | Principal Balance | Net Book Value(4) | Cash Coupon(5) | All-in Yield(5) | Maximum Maturity(6) | Loan Per SQFT / Unit / Key | Origination LTV(2) | Risk Rating | | ---: | ---: | ---: | ---: | --- | --- | --- | --- | ---: | ---: | | 91 Office Miami 6/14/2021 | $58 | $58 | $58 | +2.30% | +2.30% | 3/9/2027 | $122 / sqft | 65% | 2 | | 92 Industrial Minneapolis 12/12/2024 | 61 | 57 | 56 | +2.85% | +3.23% | 1/9/2030 | $80 / sqft | 59% | 3 | | 93 Office New York 5/28/2025 | 68 | 56 | 56 | +3.25% | +3.66% | 6/9/2030 | $367 / sqft | 60% | 3 | | 94 Multifamily Atlanta 3/6/2025 | 55 | 55 | 55 | +2.75% | +3.11% | 3/9/2030 | $187,075 / unit | 66% | 3 | | 95 Office Denver 8/5/2021 | 56 | 54 | 54 | +2.96% | +3.21% | 8/9/2026 | $205 / sqft | 70% | 3 | | 96 Office Denver 4/7/2022 | 57 | 54 | 54 | +3.25% | +3.50% | 4/9/2027 | $159 / sqft | 59% | 3 | | 97 Industrial Diversified, US 12/14/2018 | 54 | 54 | 54 | +3.01% | +3.41% | 1/9/2026 | $40 / sqft | 57% | 1 | | 98 Multifamily Los Angeles 7/28/2021 | 53 | 53 | 53 | +2.75% | +3.12% | 8/9/2026 | $299,448 / unit | 71% | 3 | | 99 Self-Storage Diversified, US 2/18/2025 | 53 | 53 | 52 | +3.10% | +3.47% | 3/9/2030 | $90 / sqft | 67% | 3 | | 100 Office Los Angeles 8/22/2019 | 52 | 52 | 52 | +2.66% | +2.91% | 3/9/2027 | $303 / sqft | 63% | 4 | | 101 Multifamily Denver 3/19/2025 | 51 | 51 | 51 | +2.60% | +2.92% | 5/9/2030 | $221,739 / unit | 64% | 3 | | 102 Hospitality Waimea 2/27/2025 | 50 | 50 | 50 | +2.80% | +2.92% | 2/9/2030 | $823,353 / key | 52% | 3 | | 103 Multifamily Los Angeles 7/20/2021 | 48 | 48 | 48 | +2.86% | +3.11% | 8/9/2026 | $366,412 / unit | 60% | 3 | | 104 Retail Chicago 11/30/2016 | 55 | 46 | 46 | +3.33% | +3.82% | 12/9/2025 | $764 / sqft | 54% | 4 | | 105 Multifamily Columbus 12/8/2021 | 48 | 44 | 44 | +2.75% | +2.96% | 12/9/2026 | $143,150 / unit | 69% | 2 | | 106 Multifamily Dallas 12/29/2021 | 43 | 43 | 43 | +3.05% | +3.24% | 1/1/2027 | $144,167 / unit | 73% | 3 | | 107 Mixed-Use New York 6/25/2025 | 221 | 42 | 40 | +3.75% | +4.38% | 12/25/2028 | $74,138 / unit | 44% | 3 | | 108 Multifamily Las Vegas 3/31/2022 | 39 | 39 | 39 | +2.80% | +3.04% | 4/9/2027 | $155,163 / unit | 72% | 3 | | 109 Multifamily Melbourne, AU 6/13/2025 | 241 | 36 | 34 | +4.75% | +7.19% | 8/8/2029 | $76,522 / unit | 76% | 3 | | 110 Multifamily Austin 2/26/2021 | 36 | 36 | 36 | +3.50% | +3.74% | 3/9/2026 | $196,228 / unit | 64% | 1 | | 111 Multifamily Los Angeles 3/1/2022 | 35 | 35 | 35 | +3.00% | +3.24% | 3/9/2027 | $376,344 / unit | 72% | 3 | | 112 Office Diversified, AU 5/8/2025 | 35 | 35 | 35 | +3.80% | +3.98% | 5/8/2028 | $398 / sqft | 75% | 3 | | 113 Multifamily New York 12/23/2021 | 35 | 35 | 35 | +1.71% | +2.61% | 11/15/2025 | $170,355 / unit | 68% | 1 | | 114 Office New York 12/23/2021 | 35 | 35 | 35 | +3.11% | +3.33% | 2/1/2026 | $247 / sqft | 30% | 1 | | 115 Office Atlanta 5/27/2025 | 41 | 34 | 33 | +3.65% | +4.00% | 6/9/2030 | $115 / sqft | 39% | 2 | | 116 Multifamily Atlanta 11/3/2021 | 32 | 32 | 32 | +2.71% | +2.96% | 11/9/2026 | $182,093 / unit | 53% | 3 | | 117 Multifamily Melbourne, AU 8/26/2022 | 28 | 28 | 28 | +4.50% | +4.94% | 6/23/2029 | $295,474 / unit | 68% | 2 | | 118 Mixed-Use New York 2/21/2025 | 24 | 24 | 24 | +3.25% | +3.52% | 3/9/2030 | $775 / sqft | 59% | 3 | | 119 Hospitality Atlanta 10/1/2019 | 23 | 23 | 23 | +3.80% | +4.03% | 10/9/2025 | $129,442 / key | 74% | 3 | | 120 Multifamily Las Vegas 8/4/2021 | 22 | 22 | 22 | +2.86% | +3.11% | 8/9/2026 | $180,000 / unit | 73% | 3 | | 121 Multifamily Atlanta 5/9/2025 | 21 | 21 | 21 | +2.85% | +2.94% | 5/9/2030 | $205,882 / unit | 65% | 3 | | 122 Office Austin 4/15/2021 | 24 | 20 | 20 | +3.06% | +3.14% | 12/9/2029 | $139 / sqft | 40% | 2 | | 123 Industrial Diversified, UK 8/15/2025 | 265 | 0 | 0 | +2.65% | +3.17% | 8/15/2030 | $0 / sqft | 70% | 3 | | Subtotal: Senior loan portfolio | $18,909 | $17,473 | $17,391 | +3.17 | +3.47 | 2.4 yrs | | 64% | 3.0 | 88 *Subordinate Loan Portfolio(8)* | Property Type Location Origination Date(2) | Total Commitment(3) | Principal Balance | Net Book Value(4) | Cash Coupon(5) | All-in Yield(5) | Maximum Maturity(6) | Loan Per SQFT / Unit / Key | Origination LTV(2) | Risk Rating | | ---: | ---: | ---: | ---: | --- | --- | --- | --- | ---: | ---: | | 124 Office Chicago 9/30/2021 | 143 | 110 | 110 | n/m (9) | n/m | 10/9/2029 | $264 / sqft | n/m | 5 | | 125 Office Los Angeles 11/22/2019 | 125 | 109 | 109 | +2.50% | +2.50% | 12/9/2027 | $790 / sqft | 69% | 4 | | 126 Office New York 5/1/2018 | 102 | 102 | 86 | n/m (9) | n/m | 3/7/2028 | $464 / sqft | n/m | 5 | | 127 Industrial Diversified, US 3/10/2025 | 60 | 60 | 60 | +5.00% | +5.12% | 3/9/2030 | $112 / sqft | 70% | 3 | | 128 Office Orange County 8/31/2017 | 64 | 58 | 41 | n/m (9) | n/m | 9/9/2026 | $330 / sqft | n/m | 5 | | 129 Life Sciences/ San Francisco 11/10/2021 | 72 | 57 | 57 | +8.71% | +8.93% | 12/9/2026 | $529 / sqft | 66% | 4 | | 130 Multifamily Miami 3/29/2022 | 47 | 46 | 46 | +8.70% | +8.92% | 4/9/2027 | $394,414 / unit | 72% | 3 | | 131 Multifamily Los Angeles 12/30/2021 | 46 | 37 | 36 | +8.80% | +9.90% | 1/9/2028 | $523,896 / unit | 50% | 3 | | 132 Mixed-Use New York 3/10/2020 | 35 | 35 | 34 | n/m (9) | n/m | 7/11/2029 | $1,057 / sqft | n/m | 5 | | 133 Multifamily London, UK 7/18/2025 | 29 | 29 | 29 | +8.98% | +9.38% | 7/5/2030 | $752,013 / unit | 69% | 3 | | 134 Office Austin 4/15/2021 | 24 | 24 | 20 | n/m (9) | n/m | 12/9/2029 | $361 / sqft | n/m | 5 | | 135 Hospitality Miami 5/2/2025 | 23 | 17 | 17 | +9.50% | +10.33% | 5/9/2030 | $776,974 / key | 53% | 3 | | 136 Mixed-Use New York 5/20/2025 | 28 | 17 | 17 | 10.00% | 10.06% | 10/1/2034 | $1,038 / sqft | 59% | 3 | | 137 Office London, UK 12/20/2019 | 14 | 14 | 13 | n/m (9) | n/m | 3/31/2029 | $843 / sqft | n/m | 5 | | Subtotal: subordinate loan portfolio | $812 | $716 | $676 | +6.42 | +6.68 | 3.0 yrs | | 66% | 4.1 | | Subtotal: loans receivable portfolio | $19,721 | $18,189 | $18,067 | | | | | | | | Total CECL reserve | | | (696) | | | | | | | | Total loans receivable portfolio | $19,721 | $18,189 | $17,371 | +3.24% | +3.46% | 2.4 yrs | | 64% | 3.0 | (1) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. (2) Date loan was originated or acquired by us, and the LTV as of such date, excluding any loans that are impaired. (3) Total commitment reflects outstanding principal balance as well as any related unfunded loan commitment. (4) Net book value represents outstanding principal balance, net of purchase and sale discounts or premiums, exit fees, deferred origination expenses, and cost-recovery proceeds. (5) The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, CORRA, and other indices as applicable to each loan. As of September 30, 2025, 98% of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR. The remaining 2% of our loans by principal balance earned a fixed rate of interest. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes loans accounted for under the cost- recovery and nonaccrual methods, if any. (6) Maximum maturity assumes all extension options are exercised; however, our loans may be repaid prior to such date. Excludes loans accounted for under the cost- recovery and nonaccrual methods, if any. (7) This loan has an interest rate of SOFR minus 1.30% with a SOFR floor of 3.50%, for an all-in rate of 3.02% as of September 30, 2025. (8) Subordinate loans include: (i) loans in which we have previously originated a whole loan and sold a senior mortgage interest to a third party, resulting in these subordinate interests in mortgages, (ii) mezzanine loans, and (iii) the subordinate portion of loans that have been modified that have resulted in a restructured senior loan and subordinate loan. (9) These subordinate loans are the result of a loan modification which resulted in a restructured senior loan and a subordinate loan. All of the subordinate loans are accounted for under the cost-recovery method. 89 ### VII. REO Asset Details The following table provides details of our REO asset as of September 30, 2025 ($ in thousands): | | Acquisition Date | Location | Property Type | Acquisition Date Fair Value | SQFT / Units / Keys | | ---: | --- | --- | --- | ---: | --- | | 1 | March 2024 | Mountain View, CA | Office | $60,203 | 150,507 sqft | | 2 | July 2024 | San Antonio, TX | Multifamily | 33,607 | 388 units | | 3 | September 2024 | Burlington, MA | Office | 64,628 | 379,018 sqft | | 4 | October 2024 | Washington, DC | Office | 107,016 | 892,480 sqft | | 5 | December 2024 | San Francisco, CA | Hospitality | 201,530 | 686 keys | | 6 | December 2024 | El Segundo, CA | Office | 145,363 | 494,532 sqft | | 7 | December 2024 | Denver, CO | Office | 33,337 | 170,304 sqft | | 8 | February 2025 | Chicago, IL | Office | 45,045 | 517,115 sqft | | 9 | September 2025 | Atlanta, GA | Office | 132,974 | 1,184,916 sqft | | 10 | September 2025 | New York, NY | Hospitality | 228,253 | 933 keys | | | | | | $1,051,956 | | 90 ## Market risk As filed, 10,163 characters. ### Interest Rate Risk #### Investment Portfolio Net Interest Income Generally, our business model is such that rising interest rates will increase our net income, while declining interest rates will decrease net income. As of September 30, 2025, 98% of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR, and were financed with liabilities that pay interest at floating rates, which resulted in an amount of net equity that is positively correlated to changing interest rates, subject to the impact of interest rate floors on certain of our floating rate loans. The following table projects the earnings impact on our interest income and expense, presented net of implied changes in incentive fees, for the twelve-month period following September 30, 2025, of an increase in the various floating-rate indices referenced by our portfolio, assuming no change in credit spreads, portfolio composition, or asset performance, relative to the average indices during the three months ended September 30, 2025 ($ in thousands): | | Assets (Liabilities) Sensitive to Changes in Interest Rates(1) Increase in Rates 50 Basis Points | Interest Rate Sensitivity as of September 30, 2025(2)(3) 100 Basis Points | Decrease in Rates 50 Basis Points | 100 Basis Points | | | --- | ---: | ---: | ---: | ---: | ---: | | Floating rate assets(4)(5)(6) | $16,625,727 | $66,331 | $132,834 | $(65,964) | $(125,093) | | Floating rate liabilities(5)(6)(7) | (14,915,766) | (59,663) | (119,326) | 59,663 | 119,326 | | Net exposure | $1,709,961 | $6,668 | $13,508 | $(6,301) | $(5,767) | (1) Reflects the USD equivalent value of floating rate assets and liabilities denominated in foreign currencies. (2) Increases (decreases) in interest income and expense are presented net of theoretical impact of incentive fees. Refer to Note 16 to our consolidated financial statements for additional details of our incentive fee calculation. (3) Excludes income from loans accounted for under the cost-recovery method. (4) Excludes $1.2 billion of floating rate impaired loans. (5) Our loan agreements generally require our borrowers to purchase interest rate caps, which mitigates our borrowers’ exposure to an increase in interest rates. (6) Excludes amounts related to our investments in unconsolidated entities. (7) Includes amounts outstanding under our secured debt, securitizations, asset-specific debt, Term Loans, and Senior Secured Notes due 2029, for which we entered into an interest rate swap with a notional amount of $450.0 million that effectively converts our fixed rate exposure to floating rate exposure for such notes. Excludes amounts related to the indebtedness of our unconsolidated entities. #### Investment Portfolio Value As of September 30, 2025, 98% of our loans by principal balance earned a floating rate of interest, so the value of such investments is generally not impacted by changes in market interest rates. Additionally, we generally hold all of our loans to maturity and so do not expect to realize gains or losses resulting from any mark to market valuation adjustments on our loan portfolio. #### Risk of Non-Performance In addition to the risks related to fluctuations in cash flows and asset values associated with movements in interest rates, there is also the risk of non-performance on floating rate assets. In the case of a significant increase in interest rates, the cash flows of the collateral real estate assets may not be sufficient to pay debt service due under our loans, which may contribute to non-performance or, in severe cases, default. This risk is partially mitigated by our consideration of rising rate stress-testing during our underwriting process, which generally includes a requirement for our borrower to purchase an interest rate cap contract with an unaffiliated third party, provide an interest reserve deposit, and/or provide interest guarantees or other structural protections. As of September 30, 2025, 92% of our performing loans had interest rate caps, with a weighted-average strike price of 3.7%, or interest guarantees. During the nine months ended September 30, 2025, interest rate caps on $6.5 billion of performing loans, with a 3.7% weighted-average strike price, expired and 93% were replaced with new interest rate caps, with a weighted-average strike price of 3.8%, or interest guarantees. 91 ### Credit Risks Our loans are subject to credit risk, including the risk of default. The performance and value of our loans depend upon the borrowers’ ability to operate the properties that serve as our collateral so that they produce cash flows adequate to pay interest and principal due to us. To monitor this risk, our asset management team reviews our loan portfolios and, in certain instances, is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. In addition, we are exposed to the risks generally associated with the commercial real estate market, including changes in occupancy rates, capitalization rates, absorption rates, and other macroeconomic factors beyond our control. We seek to manage these risks through our underwriting and asset management processes. We maintain a robust asset management relationship with our borrowers and utilize these relationships to maximize the performance of our portfolio, including during periods of volatility. We believe that we benefit from these relationships and from our long-standing core business model of originating senior loans collateralized by large assets in major markets with experienced, well-capitalized institutional sponsors. While we believe the principal amounts of our loans are generally adequately protected by underlying collateral value, there is a risk that we will not realize the entire principal value of certain loans. As of September 30, 2025, we had an aggregate $505.4 million asset-specific CECL reserve related to 12 of our loans receivable, with an aggregate amortized cost basis of $1.2 billion, net of cost-recovery proceeds, and a concentration in the office sector with $382.2 million of reserves. This CECL reserve was recorded based on our estimation of the fair value of each of the loan’s underlying collateral as of September 30, 2025. Our portfolio monitoring and asset management operations benefit from the deep knowledge, experience, and information advantages derived from our position as part of Blackstone’s real estate platform. Blackstone has built the world's preeminent global real estate business, with a proven track record of successfully navigating market cycles and emerging stronger through periods of volatility. The market-leading real estate expertise derived from the strength of the Blackstone platform deeply informs our credit and underwriting process, and we believe gives us the tools to expertly asset manage our portfolio and work with our borrowers throughout periods of economic stress and uncertainty. ### Capital Market Risks We are exposed to risks related to the equity capital markets, and our related ability to raise capital through the issuance of our class A common stock or other equity instruments. We are also exposed to risks related to the debt capital markets, and our related ability to finance our business through borrowings under credit facilities or other debt instruments. As a REIT, we are required to distribute a significant portion of our taxable income annually, which constrains our ability to accumulate operating cash flow and therefore requires us to utilize debt or equity capital to finance our business. We seek to mitigate these risks by monitoring the debt and equity capital markets to inform our decisions on the amount, timing, and terms of capital we raise. Margin call provisions under our credit facilities do not permit valuation adjustments based on capital markets events, and are limited to collateral-specific credit marks generally determined on a commercially reasonable basis. ### Counterparty Risk The nature of our business requires us to hold our cash and cash equivalents and obtain financing from various financial institutions. This exposes us to the risk that these financial institutions may not fulfill their obligations to us under these various contractual arrangements. We mitigate this exposure by depositing our cash and cash equivalents and entering into financing agreements with high credit-quality institutions. The nature of our loans also exposes us to the risk that our counterparties do not make required interest and principal payments on scheduled due dates. We seek to manage this risk through a comprehensive credit analysis prior to making a loan and active monitoring of the asset portfolios that serve as our collateral, as further discussed above. ### Currency Risk Our loans that are denominated in a foreign currency are also subject to risks related to fluctuations in currency rates. We generally mitigate this exposure by matching the currency of our assets to the currency of the financing for our assets. As a result, we substantially reduce our exposure to changes in portfolio value related to changes in foreign currency rates. In 92 addition, substantially all of our net asset exposure to foreign currencies has been hedged with foreign currency forward contracts as of September 30, 2025. The following tables outline our assets and liabilities that are denominated in a foreign currency (amounts in thousands): | | September 30, 2025 GBP | EUR | All Other(1) | | --- | ---: | ---: | ---: | | Foreign currency assets | £2,402,400 | €2,236,903 | $2,115,143 | | Foreign currency liabilities | (1,696,528) | (1,572,806) | (1,663,414) | | Foreign currency contracts – notional | (700,195) | (657,309) | (443,607) | | Net exposure to exchange rate fluctuations | £5,677 | €6,788 | $8,122 | | Net exposure to exchange rate fluctuations in USD(2) | $7,633 | $7,966 | $8,122 | (1) Includes Swedish Krona, Australian Dollar, and Canadian Dollar currencies. (2) Represents the U.S. Dollar equivalent as of September 30, 2025. ## Controls and procedures As filed, 2,254 characters. ### Evaluation of Disclosure Controls and Procedures The company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in the company’s reports under the Exchange Act is recorded, processed, and summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q was made under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer. Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (a) are effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. ### Changes in Internal Control Over Financial Reporting There have been no changes in our “internal control over financial reporting” (as defined in Rule 13a–15(f) of the Exchange Act) that occurred during our most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 93 ## Risk factors As filed, 191 characters. There have been no material changes to the risk factors previously disclosed under “Part I, Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024. 94 Filed Oct 29, 2025. Source: SEC EDGAR, the filing index for accession 0001061630-25-000128. Last ingested by Listed: Nov 5, 2026, 21:21 ET. No prices; not investment advice.