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(1)Total loan exposure reflects our aggregate exposure to each loan investment. As of December 31, 2024, total loan exposure, includes (i) loans with an outstanding principal balance of $19.2 billion that are included in our consolidated financial statements, (ii) $817.5 million of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $100.1 million of junior loan interests that we have sold, but that remain included in our consolidated financial statements. We have retained an aggregate $228.1 million of subordinate mezzanine loans, as of December 31, 2024, related to non-consolidated senior interests that are included in our balance sheet portfolio.
(2)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. Excludes $208.7 million of unfunded loan commitments related to our non-consolidated senior interests, as these commitments will not require cash outlays from us.
(3)The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, and other indices as applicable to each investment. As of December 31, 2024, substantially all of our loans by total loan exposure earned a floating rate of interest, primarily indexed to SOFR. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any.
(4)Maximum maturity assumes all extension options are exercised by the borrower, however our loans and other investments may be repaid prior to such date. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any. As of December 31, 2024, 10% of our loans by total loan exposure were subject to yield maintenance or other prepayment restrictions and 90% were open to repayment by the borrower without penalty.
(5)Based on LTV as of the dates loans were originated or acquired by us, excluding any loans that are impaired and any junior participations sold.
The following table details the index rate floors for our loan portfolio based on total loan exposure as of December 31, 2024 ($ in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | | Total Loan Exposure(1) |
| Index Rate Floors | | USD | | Non-USD(2) | | Total |
| Fixed Rate | | $ | 61,750 | | | $ | — | | | $ | 61,750 | |
0.00% or no floor(3) | | 3,981,763 | | | 4,554,664 | | | 8,536,427 | |
| 0.01% to 1.00% floor | | 3,991,792 | | | 372,619 | | | 4,364,411 | |
| 1.01% to 2.00% floor | | 1,890,945 | | | 905,095 | | | 2,796,040 | |
| 2.01% to 3.00% floor | | 2,216,114 | | | 508,068 | | | 2,724,182 | |
| 3.01% or more floor | | 1,247,235 | | | 190,494 | | | 1,437,729 | |
Total(4) | | $ | 13,389,599 | | | $ | 6,530,940 | | | $ | 19,920,539 | |
(1)Total loan exposure reflects our aggregate exposure to each loan investment. As of December 31, 2024, total loan exposure, includes (i) loans with an outstanding principal balance of $19.2 billion that are included in our consolidated financial statements, (ii) $817.5 million of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $100.1 million of junior loan interests that we have sold, but that remain included in our consolidated financial statements. See Note 2 to our consolidated financial statements for further discussion of loan participations sold.
(2)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, and Swiss Franc currencies.
(3)Includes all impaired loans.
(4)As of December 31, 2024, the weighted-average index rate floor of our total loan exposure was 1.04%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 1.65%. As of December 31, 2023, the weighted-average index rate floor of our total loan exposure was 0.56%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 1.02%.
The following table details the floating benchmark rates for our loan portfolio based on total loan exposure as of December 31, 2024 (total loan exposure amounts in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan Count | | Currency | | Total Loan Exposure(1) | | Floating Rate Index(2) | | Cash Coupon(3) | | All-in Yield(3) |
| 100 | | $ | | $ | 13,389,599 | | | SOFR | | + 3.23% | | + 3.57% |
| 16 | | £ | | £ | 2,299,143 | | | SONIA | | + 3.85% | | + 4.23% |
| 10 | | € | | € | 2,183,395 | | | EURIBOR | | + 3.25% | | + 3.68% |
| 4 | | Various | | $ | 1,392,645 | | | Other(4) | | + 4.17% | | + 4.46% |
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| 130 | | | | $ | 19,920,539 | | | | | + 3.40% | | + 3.76% |
(1)Total loan exposure reflects our aggregate exposure to each loan investment. As of December 31, 2024, total loan exposure, includes (i) loans with an outstanding principal balance of $19.2 billion that are included in our consolidated financial statements, (ii) $817.5 million of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $100.1 million of junior loan interests that we have sold, but that remain included in our consolidated financial statements. See Note 2 to our consolidated financial statements for further discussion of loan participations sold.
(2)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.
(3)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.
(4)Includes floating rate loans indexed to STIBOR, BBSY, and SARON indices.
The charts below detail the geographic distribution and types of properties securing our loan portfolio, as of December 31, 2024:
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 December 31, 2024, which is our total loan exposure net of (i) $817.5 million of non-consolidated senior interests, (ii) $1.2 billion of asset-specific debt, (iii) $106.7 million of cost-recovery proceeds, and (iv) our total loans receivable CECL reserve of $733.9 million. Our non-consolidated senior interests, asset-specific debt, and loan participations sold are 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 December 31, 2024, 93% of our loans were performing with risk ratings of “1” through “4,” and the remaining 7% were impaired with a risk rating of “5.” Of the performing loans, 99.2%, based on net loan exposure, were in compliance with the applicable contractual terms. 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 December 31, 2024, we had an aggregate $580.7 million asset-specific CECL reserve related to
13 of our loans receivable, with an aggregate amortized cost basis of $1.8 billion, net of cost-recovery proceeds. This CECL reserve was recorded based on our estimation of the fair value of each of the loan's underlying collateral as of December 31, 2024.
Our portfolio monitoring and asset management operations benefit from the deep knowledge, experience, and information advantages derived from our position as part of Blackstone’s real estate platform. Blackstone’s real estate group is the largest owner of commercial real estate globally with over 12,500 commercial assets and a proven track record of successfully navigating market cycles and emerging stronger through periods of volatility. The market-leading real estate expertise derived from the strength of the Blackstone platform deeply informs our credit and underwriting process, and gives us the tools to expertly asset manage our portfolio and work with our borrowers throughout periods of economic stress and uncertainty.
As discussed in Note 2 to our consolidated financial statements, we perform a quarterly review of our loan portfolio, assesses the performance of each loan, and assigns it a risk rating between “1” and “5”, from less risk to greater risk. Our loan portfolio had a weighted-average risk rating of 3.0 as of both December 31, 2024 and December 31, 2023, respectively.
The following table allocates the net book value, total loan exposure, and net loan exposure balances based on our internal risk ratings ($ in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2024 |
| Risk Rating | | Number
of Loans | | Net Book Value | | Total Loan Exposure(1) | | Net Loan Exposure(2) |
| 1 | | 11 | | $ | 1,919,280 | | | $ | 1,921,416 | | | $ | 994,056 | |
| 2 | | 21 | | 3,346,881 | | | 3,354,857 | | | 3,349,347 | |
| 3 | | 65 | | 9,246,692 | | | 9,462,122 | | | 8,818,346 | |
| 4 | | 20 | | 2,707,104 | | | 3,245,102 | | | 2,622,877 | |
| 5 | | 13 | | 1,827,561 | | | 1,937,042 | | | 1,249,677 | |
| Loans receivable | | 130 | | $ | 19,047,518 | | | $ | 19,920,539 | | | $ | 17,034,303 | |
| CECL reserve | | | | (733,936) | | | | |
| Loans receivable, net | | | | $ | 18,313,582 | | | | | |
(1)Total loan exposure reflects our aggregate exposure to each loan investment. As of December 31, 2024, total loan exposure, includes (i) loans with an outstanding principal balance of $19.2 billion that are included in our consolidated financial statements, (ii) $817.5 million of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $100.1 million of junior loan interests that we have sold, but that remain included in our consolidated financial statements. See Note 2 to our consolidated financial statements for further discussion of loan participations sold.
(2)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31, 2024, which is our total loan exposure net of (i) $817.5 million of non-consolidated senior interests, (ii) $1.2 billion of asset-specific debt, (iii) $106.7 million of cost-recovery proceeds, and (iv) our total loans receivable CECL reserve of $733.9 million. Our non-consolidated senior interests, asset-specific debt, and loan participations sold are 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 year ended December 31, 2024, we recorded a net increase of $157.0 million in the CECL reserves against our loans receivable portfolio, due to a $541.6 million increase in CECL reserves, offset by charge-offs of our CECL reserves of $384.6 million, bringing our total loans receivable CECL reserve to $733.9 million as of December 31, 2024. The $384.6 million of charge-offs primarily related to the 13 previously impaired loans that were resolved during the year ended December 31, 2024.
The $541.6 million increase in CECL reserves primarily relates to six additional loans that were impaired but not resolved during the year ended December 31, 2024, all of which were secured by office buildings. The office sector is generally facing reduced tenant and capital markets demand in recent years. These 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. In addition, our general CECL reserves decreased primarily as a result of net loan repayments reducing the size of our portfolio during the year ended December 31, 2024.
During the three months ended December 31, 2024, we recorded a net decrease of $302.9 million in the asset-specific CECL reserve related to our impaired loans. The decrease was primarily driven by the resolution of eight impaired loans during the quarter, resulting in charge-offs of CECL reserves of $294.1 million. This was offset by one additional loan that was impaired during the three months ended December 31, 2024. As of December 31, 2024, the income accrual was suspended on this loan as the recovery of income and principal was doubtful. During the three months ended December 31, 2024, we recorded $3.0 million of interest income on this loan.
As of December 31, 2024, we had an aggregate $580.7 million asset-specific CECL reserve related to 13 of our loans receivable, with an aggregate amortized cost basis of $1.8 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 December 31, 2024. No income was recorded on our impaired loans subsequent to determining that they were impaired. During the year ended December 31, 2024, we received an aggregate $88.0 million of cash proceeds from such loans that were applied as a reduction to the amortized cost basis of each respective loan.
As of December 31, 2024, one of our performing loans with an amortized cost basis of $195.0 million, inclusive of a $50.0 million junior loan participation sold, was past its current maturity date, was less than 90 days past due on its interest payment, and had a risk rating of “3.” This loan was not impaired as of December 31, 2024 as the estimated fair value of the underlying collateral exceeded our basis in the loan. As of December 31, 2024, all other 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.
Multifamily Joint Venture
As of December 31, 2024, our multifamily joint venture held a $43.3 million loan, which is included in the loan disclosures above. As of December 31, 2024, our Multifamily Joint Venture also held a $32.4 million REO asset. Refer to Note 2 to our consolidated financial statements for additional 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 year ended December 31, 2024, we referred four loans to MTRCC that were originated and sold under the Fannie Mae and Freddie Mac programs, resulting in $1.1 million of revenue during the year ended December 31, 2024.
Portfolio Financing
Our portfolio financing consists of secured debt, securitizations, and asset-specific debt. The following table details our portfolio financing ($ in thousands):
| | | | | | | | | | | |
| | Portfolio Financing Outstanding Principal Balance |
| | December 31, 2024 | | December 31, 2023 |
| Secured debt | $ | 9,705,529 | | | $ | 12,697,058 | |
| Securitizations | 1,936,967 | | | 2,507,514 | |
| Asset-specific debt | 1,228,110 | | | 1,004,097 | |
| Total portfolio financing | $ | 12,870,606 | | | $ | 16,208,669 | |
Secured Debt
Secured Credit Facilities
The following table details our secured credit facilities by spread over the applicable base rates as of December 31, 2024 ($ in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2024 | | December 31, 2024 |
Spread(1) | | New Financings(2) | | 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 | | $ | 165,616 | | | $ | 3,976,192 | | | +1.53 | % | | | $ | 6,185,925 | | | +3.18 | % | | | +1.65 | % |
+ 1.51% to + 1.75% | | 74,118 | | | 2,238,376 | | | +1.78 | % | | | 3,140,937 | | | +3.52 | % | | | +1.74 | % |
+ 1.76% to + 2.00% | | — | | | 969,541 | | | +2.09 | % | | | 1,802,431 | | | +3.67 | % | | | +1.58 | % |
+ 2.01% or more | | 374,407 | | | 2,521,420 | | | +2.61 | % | | | 3,678,528 | | | +4.31 | % | | | +1.70 | % |
| Total | | $ | 614,141 | | | $ | 9,705,529 | | | +1.92 | % | | | $ | 14,807,821 | | | +3.58 | % | | | +1.66 | % |
(1)The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, and other indices as applicable.
(2)Represents the amount of new borrowings we closed during the year ended December 31, 2024.
(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 December 31, 2024 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.
Securitizations
We have financed certain pools of our loans through collateralized loan obligations, or CLOs. The following table details our securitized debt obligations and the underlying collateral assets that are financed by our CLOs ($ in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2024 |
| Securitized Debt Obligations | | Count | | Principal Balance | | Book Value(1) | | Wtd. Avg. Yield/Cost(2)(3) | | Term(4) |
| 2021 FL4 Collateralized Loan Obligation | | | | | | | | | | |
| Senior CLO Securities Outstanding | | 1 | | $ | 785,453 | | | $ | 785,442 | | | + 1.39 | % | | May 2038 |
| Underlying Collateral Assets | | 22 | | 952,764 | | | 952,764 | | | + 2.95 | % | | August 2026 |
| 2020 FL3 Collateralized Loan Obligation | | | | | | | | | | |
| Senior CLO Securities Outstanding | | 1 | | 552,664 | | | 552,663 | | | + 1.92 | % | | November 2037 |
| Underlying Collateral Assets | | 12 | | 743,914 | | | 743,914 | | | + 2.92 | % | | June 2026 |
| 2020 FL2 Collateralized Loan Obligation | | | | | | | | | | |
| Senior CLO Securities Outstanding | | 1 | | 598,850 | | | 598,851 | | | + 1.50 | % | | February 2038 |
| Underlying Collateral Assets | | 12 | | 855,725 | | | 855,725 | | | + 2.79 | % | | August 2026 |
| Total | | | | | | | | | | |
Senior CLO Securities Outstanding(5) | | 3 | | $ | 1,936,967 | | | $ | 1,936,956 | | | + 1.57 | % | | |
| Underlying Collateral Assets | | 46 | | $ | 2,552,403 | | | $ | 2,552,403 | | | + 2.98 | % | | |
(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 year ended December 31, 2024, we recorded $157.0 million of interest expense related to our securitized debt obligations.
Refer to Note 8 and Note 20 to our consolidated financial statements for additional details of our securitized debt obligations.
Asset-Specific Debt
The following table details our asset-specific debt ($ in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2024 |
| Asset-Specific Debt | | Count | | Principal Balance | | Book Value(1) | | Wtd. Avg. Yield/Cost(2) | | Wtd. Avg. Term(3) |
| Financing provided | | 2 | | $ | 1,228,110 | | | $ | 1,224,841 | | | + 3.20 | % | | June 2026 |
| Collateral assets | | 2 | | $ | 1,467,185 | | | $ | 1,459,864 | | | + 4.03 | % | | June 2026 |
(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 SOFR. 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 |
| | December 31, 2024 | | December 31, 2023 |
| Term loans | $ | 1,764,437 | | | $ | 2,135,221 | |
| Senior secured notes | 785,316 | | | 366,090 | |
| Convertible notes | 266,157 | | | 300,000 | |
| Total corporate financing | $ | 2,815,910 | | | $ | 2,801,311 | |
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 December 31, 2024 ($ in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Corporate Financing | | Face Value | | Interest Rate(1) | | All-in Cost(1)(2) | | Maturity |
| Term Loans | | | | | | | | |
| B-1 Term Loan | | $ | 309,268 | | | + 2.36 | % | | + 2.53 | % | | April 23, 2026 |
| |
| B-4 Term Loan | | 805,169 | | | + 3.50 | % | | + 4.11 | % | | May 9, 2029 |
B-5 Term Loan | | 650,000 | | | + 3.75 | % | | + 4.27 | % | | December 10, 2028 |
| Total term loans | | $ | 1,764,437 | | | | | | | |
| 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 | | $ | 2,815,910 | | | | | | | |
(1)The B-4 Term Loan and the B-5 Term Loan borrowings are subject to a 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 additional 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 December 31, 2024.
During the year ended December 31, 2024, we repurchased an aggregate principal amount of $2.3 million of the B-1 Term Loan at a weighted-average price of 99%, an aggregate principal amount of $30.8 million of the Senior Secured Notes at a weighted-average price of 88%, and an aggregate principal amount of $33.8 million of the Convertible Notes at a weighted-average price of 93%. This resulted in gains on extinguishment of debt of $25,000, $3.3 million, and $2.0 million, respectively, during the year ended December 31, 2024.
Refer to Note 2, Note 11, Note 12, and Note 13 to our consolidated financial statements for additional discussion of our Term Loans, Senior Secured Notes, and Convertible Notes.
Floating Rate 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 December 31, 2024, substantially all of our loans by total loan exposure earned a floating rate of interest 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.
The following table details our investment portfolio’s exposure to interest rates by currency as of December 31, 2024 (amounts in thousands):
| | | | | | | | | | | | | | | | | | | | | | | |
| | USD | | GBP | | EUR | | All Other(1) |
Floating rate loans(2)(3)(4)(5) | $ | 10,713,948 | | | £ | 2,186,793 | | | € | 2,183,395 | | | $ | 1,392,645 | |
Floating rate portfolio financings(2)(4)(6) | (7,961,934) | | | (1,727,371) | | | (1,596,841) | | | (1,093,324) | |
Floating rate corporate financings(7) | (2,214,437) | | | — | | | — | | | — | |
| Net floating rate exposure | $ | 537,577 | | | £ | 459,422 | | | € | 586,554 | | | $ | 299,321 | |
Net floating rate exposure in USD(8) | $ | 537,577 | | | $ | 575,012 | | | $ | 607,317 | | | $ | 299,321 | |
(1)Includes Australian Dollar, Swedish Krona, and Swiss Franc 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 $1.9 billion of floating rate impaired loans.
(4)Excludes $817.5 million of non-consolidated senior interests and $100.1 million of loan participations sold, as of December 31, 2024. Our non-consolidated senior interests and loan participations sold are structurally non-recourse and term-matched to the corresponding loans, and have no impact on our net floating rate exposure.
(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)Includes amounts outstanding under secured debt, securitizations, and asset-specific debt.
(7)Includes amounts outstanding under Term Loans and the senior secured notes due 2029. In connection with the issuance of the senior secured notes due 2029, 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 December 31, 2024.
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 December 31, 2024, 92% of our performing loans have interest rate caps, with a weighted-average strike price of 3.5%, or interest guarantees. During the year ended December 31, 2024, interest rate caps on $16.0 billion of performing loans, with a 3.4% weighted-average strike price, expired and 95% were replaced with new interest rate caps, with a weighted-average strike price of 3.7%, or interest guarantees.
III. Our Results of Operations
Operating Results
The following table sets forth information regarding our consolidated results of operations for the years ended December 31, 2024, 2023 and 2022 ($ in thousands, except per share data):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, | | 2024 vs 2023 | | Year Ended December 31, | | 2023 vs 2022 |
| | 2024 | | 2023 | | $ | | 2023 | | 2022 | | $ |
| Income from loans and other investments | | | | | | | | | | | |
| Interest and related income | $ | 1,769,043 | | | $ | 2,037,621 | | | $ | (268,578) | | | $ | 2,037,621 | | | $ | 1,338,954 | | | $ | 698,667 | |
| Less: Interest and related expenses | 1,289,972 | | | 1,366,956 | | | (76,984) | | | 1,366,956 | | 710,904 | | 656,052 |
| Income from loans and other investments, net | 479,071 | | | 670,665 | | | (191,594) | | | 670,665 | | 628,050 | | 42,615 |
| Revenue from real estate owned | 13,040 | | | — | | | 13,040 | | — | | | — | | | — | |
| Other income | 1,064 | | | — | | | 1,064 | | — | | | — | | | — | |
| Gain on extinguishment of debt | 5,352 | | | 4,616 | | | 736 | | 4,616 | | | — | | | 4,616 |
| Total net revenues | 498,527 | | 675,281 | | (176,754) | | 675,281 | | 628,050 | | 47,231 |
Expenses | | | | | | | | | | | |
| Management and incentive fees | 74,792 | | 119,089 | | (44,297) | | 119,089 | | 110,292 | | 8,797 |
| General and administrative expenses | 53,922 | | 51,143 | | 2,779 | | 51,143 | | 52,193 | | (1,050) |
| Expenses from real estate owned | 22,060 | | — | | 22,060 | | — | | — | | — |
Other expenses | 5,663 | | — | | 5,663 | | — | | — | | — |
Total expenses | 156,437 | | 170,232 | | (13,795) | | 170,232 | | 162,485 | | 7,747 |
| Increase in current expected credit loss reserve | (538,801) | | (249,790) | | (289,011) | | (249,790) | | (211,505) | | (38,285) |
Loss from unconsolidated entities | (2,748) | | — | | (2,748) | | — | | — | | — |
| (Loss) income before income taxes | (199,459) | | 255,259 | | (454,718) | | 255,259 | | 254,060 | | 1,199 |
| Income tax provision | 2,374 | | 5,362 | | (2,988) | | 5,362 | | 3,003 | | 2,359 |
| Net (loss) income | (201,833) | | 249,897 | | (451,730) | | 249,897 | | 251,057 | | (1,160) |
| Net income attributable to non-controlling interests | (2,255) | | (3,342) | | 1,087 | | (3,342) | | (2,415) | | (927) |
| Net (loss) income attributable to Blackstone Mortgage Trust, Inc. | $ | (204,088) | | | $ | 246,555 | | | $ | (450,643) | | | $ | 246,555 | | | $ | 248,642 | | | $ | (2,087) | |
| | | | |
| Net (loss) income per share of common stock, basic and diluted | $ | (1.17) | | | $ | 1.43 | | | $ | (2.60) | | | $ | 1.43 | | | $ | 1.46 | | | $ | (0.03) | |
| | | | |
| | | | |
Weighted-average shares of common stock outstanding, basic and diluted | 173,782,523 | | 172,672,038 | | 1,110,485 | | 172,672,038 | | 170,631,410 | | 2,040,628 |
| | | | |
| | | | |
| Dividends declared per share | $ | 2.18 | | | $ | 2.48 | | | $ | (0.30) | | | $ | 2.48 | | | $ | 2.48 | | | $ | — | |
Income from loans and other investments, net
Income from loans and other investments, net decreased $191.6 million during the year ended December 31, 2024 compared to the year ended December 31, 2023. The decrease was primarily due to a decline in interest income related to additional loans accounted for under the cost-recovery method during the year ended December 31, 2024, as well as a decrease in the weighted-average principal balance of our loan portfolio by $2.1 billion during the year ended
December 31, 2024 compared to the year ended December 31, 2023. This was offset by a decrease in the weighted-average principal balance of our outstanding financing arrangements by $2.0 billion for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Income from loans and other investments, net increased $42.6 million during the year ended December 31, 2023 compared to the year ended December 31, 2022. The increase was primarily due to (i) an increase in floating rate indices during the year ended December 31, 2023 compared to the year ended December 31, 2022 and (ii) an increase in the weighted average principal balance of our loan portfolio by $401.8 million for the year ended December 31, 2023, as compared to the year ended December 31, 2022. This was offset by (i) an increase in the weighted-average principal balance of our outstanding financing arrangements by $357.5 million for the year ended December 31, 2023, as compared to the year ended December 31, 2022 and (ii) a decline in interest income related to additional loans accounted for under the cost-recovery method for all or a portion of the year ended December 31, 2023.
Revenue from real estate owned
Revenue from REO increased by $13.0 million during the year ended December 31, 2024 compared to the year ended December 31, 2023 due to seven REO assets being acquired during the year. There was no revenue from REO during the years ended December 31, 2023 and 2022.
Other income
Other income relates to origination, servicing, and other fees recognized in connection with our Agency Multifamily Lending Partnership. Other income increased by $1.1 million during the year ended December 31, 2024 as a result of the referral of four loans pursuant to the Agency Multifamily Lending Partnership that were originated and sold by MTRCC. There was no other income recognized during the years ended December 31, 2023 and 2022.
Gain on extinguishment of debt
Gain on extinguishment of debt increased by $736,000 during the year ended December 31, 2024 compared to the year ended December 31, 2023. During the year ended December 31, 2024, we recognized an aggregate 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 due 2027, or the October 2021 senior secured notes, and B-1 Term Loan, respectively.
During the year ended December 31, 2023, we recognized a gain on extinguishment of debt of $4.6 million related to the repurchase of an aggregate principal amount of $33.9 million of our Senior Secured Notes. There was no repurchase activity or gain on extinguishment of debt in the year ended December 31, 2022.
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 $13.8 million during the year ended December 31, 2024 compared to the year ended December 31, 2023 primarily due to a decrease of $44.3 million of incentive fees payable to our Manager, driven primarily by charge-offs of CECL reserves. This was offset by $22.1 million of expenses of real estate owned, which relates to REO operations. We did not incur any expenses from REO during the year ended December 31, 2023. Additionally, other expenses increased by $5.7 million, which represents a contingent liability related to the sale of a loan. Lastly, general and administrative expenses increased by $2.8 million primarily due to (i) a $1.9 million increase in professional expenses, and (ii) a $1.2 million increase in non-cash restricted stock amortization related to shares awarded under our long-term incentive plans.
Other expenses increased by $7.7 million during the year ended December 31, 2023 compared to the year ended December 31, 2022 due to an increase of (i) $6.9 million of incentive fees payable to our Manager, due to an increase in Distributable Earnings, (ii) $1.9 million of management fees payable to our Manager, primarily as a result of an increase in our Equity, and (iii) $1.7 million of other operating expenses. This was offset by a reduction in non-cash restricted stock amortization of $2.7 million related to awards under our long-term incentive plans.
Changes in current expected credit loss reserve
During the year ended December 31, 2024, we recorded a $538.8 million increase in our CECL reserves, as compared to a $249.8 million increase during the year ended December 31, 2023. These incremental CECL reserves primarily reflect a
$163.0 million increase in the specific reserves related to certain impaired loans in our portfolio, most of which were secured by office buildings. The office sector is generally facing reduced tenant and capital markets demand in recent years. These 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. In addition, our general CECL reserves decreased primarily as a result of loan repayments reducing the size of our portfolio during the year ended December 31, 2024.
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 December 31, 2024.
During the year ended December 31, 2023, we recorded a $249.8 million increase in our CECL reserves, as compared to a
$211.5 million increase during the year ended December 31, 2022. These CECL reserves reflect certain impaired loans in
our portfolio, as well as an additional increase in our CECL reserves due to macroeconomic conditions.
Loss from unconsolidated entities
Loss from unconsolidated entities of $2.7 million represents our share of the start-up costs that were incurred related to our Net Lease Joint Venture. There was no income or loss from unconsolidated entities during the years ended December 31, 2023 or 2022.
Income tax provision
The income tax provision decreased by $3.0 million during the year ended December 31, 2024 as compared to the year ended December 31, 2023, due to a decrease in the income tax provisions related to our taxable REIT subsidiaries.
The income tax provision increased by $2.4 million during the year ended December 31, 2023 as compared to the year ended December 31, 2022, due to an increase in the income tax provisions related to our taxable REIT subsidiaries.
Dividends per share
During the year ended December 31, 2024, we declared dividends of $2.18 per share, or $377.8 million in aggregate. During the year ended December 31, 2023, we declared dividends of $2.48 per share, or $427.9 million in aggregate. During the year ended December 31, 2022, we declared dividends of $2.48 per share, or $423.6 million in aggregate.
The following table sets forth information regarding our consolidated results of operations for the three months ended December 31, 2024 and September 30, 2024 ($ in thousands, except per share data):
| | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Change |
| | December 31, 2024 | | September 30, 2024 | | $ |
| Income from loans and other investments | | | | | |
| Interest and related income | $ | 386,676 | | | $ | 430,092 | | | $ | (43,416) | |
| Less: Interest and related expenses | 285,118 | | | 321,744 | | | (36,626) | |
| Income from loans and other investments, net | 101,558 | | | 108,348 | | | (6,790) | |
| Revenue from real estate owned | 11,826 | | | 1,214 | | | 10,612 | |
| Other income | 1,064 | | — | | 1,064 | |
| Gain on extinguishment of debt | — | | | 2,389 | | | (2,389) | |
| Total net revenues | 114,448 | | 111,951 | | 2,497 |
Expenses | | | | | |
| Management and incentive fees | 18,534 | | | 18,605 | | | (71) | |
| General and administrative expenses | 13,111 | | | 13,423 | | | (312) | |
| Expenses from real estate owned | 18,413 | | | 2,684 | | | 15,729 | |
Other expenses | 5,663 | | | — | | | 5,663 | |
Total expenses | 55,721 | | | 34,712 | | | 21,009 | |
| Increase in current expected credit loss reserve | (19,055) | | | (132,470) | | | 113,415 | |
Loss from unconsolidated entities | (2,748) | | | — | | | (2,748) | |
| Income (loss) before income taxes | 36,924 | | | (55,231) | | | 92,155 | |
| Income tax (benefit) provision | (458) | | | 613 | | | (1,071) | |
| Net income (loss) | 37,382 | | | (55,844) | | | 93,226 | |
| Net income attributable to non-controlling interests | (192) | | | (540) | | | 348 | |
| Net income (loss) attributable to Blackstone Mortgage Trust, Inc. | $ | 37,190 | | | $ | (56,384) | | | $ | 93,574 | |
| Net income (loss) per share of common stock, basic and diluted | $ | 0.21 | | | $ | (0.32) | | | $ | 0.53 | |
|
|
|
|
| | | | | |
| Weighted-average shares of common stock outstanding, basic and diluted | 173,488,888 | | 173,637,101 | | (148,213) |
|
|
|
|
| For the years ended December 31, |
| | 2024 | | 2023 | | 2022 |
| Cash flows provided by operating activities | $ | 366,453 | | | $ | 458,841 | | | $ | 396,825 | |
| Cash flows provided by investing activities | 3,497,089 | | | 1,444,077 | | | (3,253,535) |
| Cash flows used in financing activities | (3,882,684) | | | (1,847,943) | | | 2,607,224 |
| Net (decrease) increase in cash and cash equivalents | $ | (19,142) | | | $ | 54,975 | | | $ | (249,486) | |
We experienced a net decrease in cash and cash equivalents of $19.1 million for the year ended December 31, 2024, compared to a net increase of $55.0 million for the year ended December 31, 2023. During the year ended December 31, 2024, we (i) received $5.2 billion from loan principal collections and sales proceeds, of which $4.8 billion is reflected in our consolidated statement of cash flows prepared in accordance with GAAP, excluding $512.1 million of additional repayments or reduction of loan exposure under related non-consolidated senior interests, (ii) received $646.8 million of net proceeds from the issuance of the B-5 term loan, and (iii) received $450.0 million of net proceeds from the issuance of Senior Secured Notes. Also, during the year ended December 31, 2024, we (i) repaid a net $2.7 billion of secured debt borrowings, (ii) funded $1.4 billion of loans, (iii) repaid $1.0 billion of secured term loans, (iv) repaid $666.0 million of securitized debt obligations, and (v) paid $404.0 million of dividends on our class A common stock.
We experienced a net increase in cash and cash equivalents of $55.0 million for the year ended December 31, 2023, compared to a net decrease of $249.5 million for the year ended December 31, 2022. During the year ended December 31, 2023, we received $3.8 billion from loan principal collections and sales proceeds, of which $2.8 billion is reflected in our consolidated statement of cash flows prepared in accordance with GAAP, excluding (i) $795.8 million of additional repayments or reduction of loan exposure under related non-consolidated senior interests, (ii) $152.4 million of loan portfolio payments held by servicer, and (iii) $100.7 million of sales of junior loan interests which did not qualify for sale accounting under GAAP. Also, during the year ended December 31, 2023, we (i) funded $1.3 billion of loans, (ii) repaid a net $1.1 billion of secured debt borrowings, (iii) paid $426.9 million of dividends on our class A common stock, (iv) repaid $220.0 million of convertible notes, and (v) repaid $166.0 million of securitized debt obligations.
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 additional 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 December 31, 2024 and December 31, 2023, 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 additional 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 our Manager 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. During 2024, our Manager reviewed and evaluated our critical accounting policies and believes them to be appropriate. The following is a summary of our significant accounting policies that we believe are the most affected by our Manager’s judgments, estimates, and assumptions:
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 November 30, 2024. 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 December 31, 2024.
•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. However, non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected.
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 year ended December 31, 2024, our CECL reserves increased by $154.2 million, bringing our total reserves to $746.5 million as of December 31, 2024. 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 investment 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.
Real Estate Owned
We may assume legal title or physical possession of the collateral underlying a loan through a foreclosure or the execution of a deed-in-lieu of foreclosure. These real estate acquisitions are classified as 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.”
Upon acquisition of REO, 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.
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 December 31, 2024, we had seven REO assets which were all classified as held for investment.
VI. Loan Portfolio Details
The following table provides details of our loan portfolio, on a loan-by-loan basis, as of December 31, 2024 ($ in millions):
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| | Loan Type(1) | | Origination Date(2) | | Total Loan(3)(4) | | Principal Balance(4) | | Net Book
Value | | Cash Coupon(5) | | | All-in Yield(5) | | | Maximum Maturity(6) | | Location | | Property Type | | Loan Per
SQFT / Unit / Key | | Origination LTV(2) | | Risk
Rating |
| 1 | | Senior Loan | | 4/9/2018 | | $ | 1,487 | | | $ | 1,330 | | | $ | 1,328 | | | +4.17 | | % | | +4.43 | | % | | 6/9/2025 | | New York | | Office | | $468 / sqft | | 48 | % | | 1 |
| 2 | | Senior Loan | | 8/14/2019 | | 930 | | 860 | | 856 | | +3.20 | | % | | +3.95 | | % | | 1/29/2027 | | Dublin, IE | | Mixed-Use | | $251 / sqft | | 74 | % | | 3 |
| 3 | | Senior Loan | | 6/24/2022 | | 819 | | 819 | | 814 | | +4.75 | | % | | +5.07 | | % | | 6/21/2029 | | Diversified, AU | | Hospitality | | $373 / sqft | | 59 | % | | 3 |
| 4 | | Senior Loan | | 3/22/2018 | | 526 | | 526 | | 526 | | +3.25 | | % | | +3.31 | | % | | 3/15/2026 | | Diversified, Spain | | Mixed-Use | | n / a | | 71 | % | | 4 |
| 5 | | Senior Loan | | 7/23/2021 | | 480 | | 475 | | 474 | | +3.60 | | % | | +4.04 | | % | | 8/9/2027 | | New York | | Multi | | $637,813 / unit | | 58 | % | | 2 |
| 6 | | Senior Loan | | 3/30/2021 | | 430 | | 430 | | 429 | | +3.20 | | % | | +3.41 | | % | | 5/15/2026 | | Diversified, SE | | Industrial | | $82 / sqft | | 76 | % | | 2 |
| 7 | | Senior Loan(4) | | 11/22/2019 | | 486 | | 424 | | 104 | | +4.75 | | % | | +4.89 | | % | | 12/9/2027 | | Los Angeles | | Office | | $777 / sqft | | 69 | % | | 4 |
| 8 | | Senior Loan | | 6/28/2022 | | 675 | | 380 | | 374 | | +4.60 | | % | | +5.06 | | % | | 7/9/2029 | | Austin | | Mixed-Use | | $316 / sqft | | 53 | % | | 3 |
| 9 | | Senior Loan | | 12/9/2021 | | 385 | | 379 | | 379 | | +2.76 | | % | | +3.00 | | % | | 12/9/2026 | | New York | | Mixed-Use | | $130 / sqft | | 50 | % | | 2 |
| 10 | | Senior Loan | | 4/11/2018 | | 345 | | 345 | | 334 | | +2.25 | | % | | +2.25 | | % | | 5/1/2025 | | New York | | Office | | $437 / sqft | | n/m | | 5 |
| 11 | | Senior Loan | | 7/15/2021 | | 305 | | 305 | | 304 | | +4.25 | | % | | +4.76 | | % | | 7/16/2026 | | Diversified, EUR | | Hospitality | | $232,778 / key | | 53 | % | | 3 |
| 12 | | Senior Loan | | 12/11/2018 | | 356 | | 302 | | 304 | | +1.75 | | % | | +1.76 | | % | | 12/9/2026 | | Chicago | | Office | | $253 / sqft | | 78 | % | | 4 |
| 13 | | Senior Loan | | 5/6/2022 | | 288 | | 288 | | 287 | | +3.50 | | % | | +3.79 | | % | | 5/6/2027 | | Diversified, UK | | Industrial | | $91 / sqft | | 53 | % | | 2 |
| 14 | | Senior Loan | | 9/29/2021 | | 293 | | 288 | | 287 | | +2.81 | | % | | +3.03 | | % | | 10/9/2026 | | Washington, DC | | Office | | $375 / sqft | | 66 | % | | 2 |
| 15 | | Senior Loan | | 11/30/2018 | | 286 | | 286 | | 251 | | +2.43 | | % | | +2.43 | | % | | 8/9/2025 | | New York | | Hospitality | | $306,870 / key | | n/m | | 5 |
| 16 | | Senior Loan | | 12/23/2021 | | 323 | | 278 | | 273 | | +4.25 | | % | | +4.96 | | % | | 6/24/2028 | | London, UK | | Multi | | $306,990 / unit | | 59 | % | | 3 |
| 17 | | Senior Loan | | 9/30/2021 | | 277 | | 277 | | 277 | | +2.61 | | % | | +2.88 | | % | | 9/30/2026 | | Dallas | | Multi | | $146,437 / unit | | 74 | % | | 3 |
| 18 | | Senior Loan(4) | | 11/10/2021 | | 362 | | 272 | | 54 | | +4.21 | | % | | +4.75 | | % | | 12/9/2026 | | San Francisco | | Life Sciences | | $505 / sqft | | 66 | % | | 4 |
| 19 | | Senior Loan | | 2/27/2020 | | 273 | | 267 | | 267 | | +2.70 | | % | | +2.83 | | % | | 1/9/2027 | | New York | | Multi | | $702,969 / unit | | 59 | % | | 3 |
| 20 | | Senior Loan | | 1/11/2019 | | 266 | | 266 | | 266 | | +5.11 | | % | | +5.06 | | % | | 6/14/2028 | | Diversified, UK | | Other | | $263 / sqft | | 74 | % | | 3 |
| 21 | | Senior Loan | | 9/14/2021 | | 255 | | 255 | | 255 | | +2.61 | | % | | +2.86 | | % | | 9/14/2026 | | Dallas | | Multi | | $206,610 / unit | | 72 | % | | 3 |
| 22 | | Senior Loan | | 1/26/2022 | | 338 | | 239 | | 237 | | +4.10 | | % | | +4.72 | | % | | 2/9/2027 | | Seattle | | Office | | $501 / sqft | | 56 | % | | 3 |
| 23 | | Senior Loan | | 9/30/2021 | | 235 | | 235 | | 235 | | +7.11 | | % | | +7.11 | | % | | 10/9/2028 | | Chicago | | Office | | $260 / sqft | | n/m | | 5 |
| 24 | | Senior Loan | | 2/23/2022 | | 245 | | 234 | | 234 | | +2.60 | | % | | +2.84 | | % | | 3/9/2027 | | Reno | | Multi | | $217,602 / unit | | 74 | % | | 3 |
| 25 | | Senior Loan | | 12/22/2016 | | 252 | | 222 | | 216 | | +10.50 | | % | | +10.50 | | % | | 6/9/2028 | | New York | | Mixed-Use | | $313 / sqft | | n/m | | 5 |
| 26 | | Senior Loan | | 7/16/2021 | | 229 | | 218 | | 218 | | +3.25 | | % | | +3.51 | | % | | 2/15/2027 | | London, UK | | Multi | | $224,094 / unit | | 69 | % | | 2 |
| 27 | | Senior Loan(4) | | 3/29/2022 | | 235 | | 208 | | 41 | | +3.70 | | % | | +4.22 | | % | | 4/9/2027 | | Miami | | Multi | | $354,245 / unit | | 72 | % | | 3 |
| 28 | | Senior Loan | | 6/28/2019 | | 205 | | 205 | | 205 | | +4.00 | | % | | +4.74 | | % | | 6/26/2026 | | London, UK | | Office | | $494 / sqft | | 71 | % | | 3 |
| 29 | | Senior Loan | | 6/27/2019 | | 199 | | 199 | | 198 | | +2.80 | | % | | +2.93 | | % | | 8/15/2026 | | Berlin, DEU | | Office | | $417 / sqft | | 62 | % | | 4 |
| 30 | | Senior Loan(4) | | 3/17/2022 | | 222 | | 197 | | 247 | | +2.82 | | % | | +2.97 | | % | | 6/30/2025 | | London, UK | | Office | | $768 / sqft | | 50 | % | | 3 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Loan Type(1) | | Origination Date(2) | | Total Loan(3)(4) | | Principal Balance(4) | | Net Book
Value | | Cash Coupon(5) | | | All-in Yield(5) | | | Maximum Maturity(6) | | Location | | Property Type | | Loan Per
SQFT / Unit / Key | | Origination LTV(2) | | Risk
Rating |
| 31 | | Senior Loan | | 7/29/2022 | | $ | 199 | | | $ | 191 | | | $ | 189 | | | +4.60 | | % | | +5.60 | | % | | 7/27/2027 | | London, UK | | Industrial | | $251 / sqft | | 52 | % | | 3 |
| 32 | | Senior Loan(7) | | 7/23/2021 | | 244 | | 184 | | 183 | | -1.30 | | % | | -0.92 | | % | | 8/9/2028 | | New York | | Office | | $596 / sqft | | 53 | % | | 4 |
| 33 | | Senior Loan | | 2/15/2022 | | 191 | | 181 | | 170 | | +2.90 | | % | | +2.90 | | % | | 3/9/2027 | | Denver | | Office | | $361 / sqft | | n/m | | 5 |
| 34 | | Senior Loan | | 5/13/2021 | | 199 | | 179 | | 179 | | +3.66 | | % | | +3.92 | | % | | 6/9/2026 | | Boston | | Life Sciences | | $910 / sqft | | 64 | % | | 4 |
| 35 | | Senior Loan | | 1/27/2022 | | 178 | | 177 | | 177 | | +3.10 | | % | | +3.40 | | % | | 2/9/2027 | | Dallas | | Multi | | $115,681 / unit | | 71 | % | | 3 |
| 36 | | Senior Loan | | 3/9/2022 | | 169 | | 169 | | 168 | | +2.95 | | % | | +3.17 | | % | | 8/15/2027 | | Diversified, UK | | Retail | | $144 / sqft | | 55 | % | | 2 |
| 37 | | Senior Loan | | 5/27/2021 | | 184 | | 162 | | 162 | | +2.31 | | % | | +2.57 | | % | | 6/9/2026 | | Atlanta | | Office | | $136 / sqft | | 66 | % | | 4 |
| 38 | | Senior Loan | | 9/30/2021 | | 178 | | 159 | | 158 | | +4.00 | | % | | +4.67 | | % | | 9/30/2026 | | Diversified, Spain | | Hospitality | | $136,941 / key | | 60 | % | | 3 |
| 39 | | Senior Loan | | 1/17/2020 | | 203 | | 157 | | 157 | | +3.12 | | % | | +3.39 | | % | | 2/9/2025 | | New York | | Mixed-Use | | $130 / sqft | | 43 | % | | 3 |
| 40 | | Senior Loan | | 3/7/2022 | | 156 | | 156 | | 156 | | +3.45 | | % | | +3.63 | | % | | 6/9/2026 | | Los Angeles | | Hospitality | | $624,000 / key | | 64 | % | | 3 |
| 41 | | Senior Loan | | 12/21/2021 | | 155 | | 155 | | 155 | | +2.83 | | % | | +3.15 | | % | | 4/29/2027 | | London, UK | | Industrial | | $313 / sqft | | 67 | % | | 3 |
| 42 | | Senior Loan | | 6/4/2018 | | 153 | | 153 | | 153 | | +4.00 | | % | | +4.24 | | % | | 6/9/2025 | | New York | | Hospitality | | $251,647 / key | | 52 | % | | 3 |
| 43 | | Senior Loan | | 1/7/2022 | | 155 | | 152 | | 152 | | +3.70 | | % | | +3.97 | | % | | 1/9/2027 | | Fort Lauderdale | | Office | | $392 / sqft | | 55 | % | | 1 |
| 44 | | Senior Loan | | 2/20/2019 | | 152 | | 148 | | 148 | | +4.62 | | % | | +4.91 | | % | | 2/19/2025 | | London, UK | | Office | | $597 / sqft | | 61 | % | | 3 |
| 45 | | Senior Loan(4) | | 9/30/2021 | | 145 | | 145 | | 195 | | +7.96 | | % | | +7.96 | | % | | 10/9/2026 | | Boca Raton | | Multi | | $396,175 / unit | | 58 | % | | 3 |
| 46 | | Senior Loan(4) | | 12/30/2021 | | 228 | | 142 | | 28 | | +4.00 | | % | | +4.91 | | % | | 1/9/2028 | | Los Angeles | | Multi | | $406,702 / unit | | 50 | % | | 3 |
| 47 | | Senior Loan | | 11/18/2021 | | 141 | | 141 | | 141 | | +3.25 | | % | | +3.51 | | % | | 11/18/2026 | | London, UK | | Other | | $178 / sqft | | 65 | % | | 2 |
| 48 | | Senior Loan | | 12/20/2019 | | 141 | | 141 | | 141 | | +3.22 | | % | | +3.22 | | % | | 1/20/2025 | | London, UK | | Office | | $713 / sqft | | n/m | | 5 |
| 49 | | Senior Loan | | 8/24/2021 | | 156 | | 133 | | 133 | | +2.71 | | % | | +2.98 | | % | | 9/9/2026 | | San Jose | | Office | | $317 / sqft | | 65 | % | | 4 |
| 50 | | Senior Loan | | 12/15/2021 | | 130 | | 128 | | 128 | | +2.75 | | % | | +3.00 | | % | | 12/9/2026 | | Dublin, IE | | Multi | | $321,083 / unit | | 79 | % | | 3 |
| 51 | | Senior Loan | | 9/14/2021 | | 128 | | 127 | | 126 | | +2.81 | | % | | +3.05 | | % | | 10/9/2026 | | San Bernardino | | Multi | | $255,362 / unit | | 75 | % | | 3 |
| 52 | | Senior Loan | | 5/20/2021 | | 150 | | 126 | | 112 | | +8.76 | | % | | +8.76 | | % | | 4/9/2025 | | San Jose | | Office | | $323 / sqft | | n/m | | 5 |
| 53 | | Senior Loan | | 11/23/2018 | | 125 | | 125 | | 124 | | +3.50 | | % | | +3.74 | | % | | 11/15/2029 | | Diversified, UK | | Office | | $922 / sqft | | 50 | % | | 3 |
| 54 | | Senior Loan | | 3/28/2022 | | 130 | | 125 | | 125 | | +2.55 | | % | | +2.80 | | % | | 4/9/2027 | | Miami | | Office | | $330 / sqft | | 69 | % | | 3 |
| 55 | | Senior Loan | | 11/27/2024 | | 125 | | 125 | | 124 | | +2.80 | | % | | +3.17 | | % | | 12/9/2029 | | Miami | | Multi | | $260,417 / unit | | 71 | % | | 3 |
| 56 | | Senior Loan | | 8/27/2021 | | 122 | | 121 | | 121 | | +3.11 | | % | | +3.35 | | % | | 9/9/2026 | | San Diego | | Retail | | $458 / sqft | | 58 | % | | 3 |
| 57 | | Senior Loan | | 6/1/2021 | | 120 | | 120 | | 120 | | +2.96 | | % | | +3.11 | | % | | 6/9/2026 | | Miami | | Multi | | $298,507 / unit | | 61 | % | | 2 |
| 58 | | Senior Loan | | 12/10/2021 | | 135 | | 120 | | 120 | | +3.11 | | % | | +3.42 | | % | | 1/9/2027 | | Miami | | Office | | $400 / sqft | | 49 | % | | 2 |
| 59 | | Senior Loan | | 12/21/2021 | | 120 | | 119 | | 119 | | +2.70 | | % | | +3.00 | | % | | 1/9/2027 | | Washington, DC | | Office | | $408 / sqft | | 68 | % | | 4 |
| 60 | | Senior Loan | | 4/29/2022 | | 118 | | 118 | | 118 | | +3.50 | | % | | +3.77 | | % | | 2/18/2027 | | Napa Valley | | Hospitality | | $1,240,799 / key | | 66 | % | | 3 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Loan Type(1) | | Origination Date(2) | | Total Loan(3)(4) | | Principal Balance(4) | | Net Book
Value | | Cash Coupon(5) | | | All-in Yield(5) | | | Maximum Maturity(6) | | Location | | Property Type | | Loan Per
SQFT / Unit / Key | | Origination LTV(2) | | Risk
Rating |
| 61 | | Senior Loan | | 7/15/2019 | | $ | 136 | | | $ | 116 | | | $ | 115 | | | +3.01 | | % | | +3.22 | | % | | 8/9/2028 | | Houston | | Office | | $209 / sqft | | 58 | % | | 4 |
| 62 | | Senior Loan | | 12/29/2021 | | 110 | | 110 | | 110 | | +2.85 | | % | | +3.02 | | % | | 1/9/2027 | | Phoenix | | Multi | | $189,003 / unit | | 64 | % | | 3 |
| 63 | | Senior Loan | | 3/29/2021 | | 110 | | 110 | | 110 | | +4.02 | | % | | +4.28 | | % | | 3/29/2026 | | Diversified, UK | | Multi | | $48,124 / unit | | 61 | % | | 3 |
| 64 | | Senior Loan | | 6/28/2019 | | 109 | | 109 | | 109 | | +3.75 | | % | | +4.01 | | % | | 2/1/2026 | | Los Angeles | | Studio | | $551 / sqft | | 48 | % | | 3 |
| 65 | | Senior Loan | | 3/10/2020 | | 109 | | 109 | | 109 | | +3.00 | | % | | +3.00 | | % | | 7/11/2029 | | New York | | Mixed-Use | | $665 / sqft | | 53 | % | | 3 |
| 66 | | Senior Loan | | 3/13/2018 | | 108 | | 108 | | 108 | | +3.11 | | % | | +3.36 | | % | | 4/9/2027 | | Honolulu | | Hospitality | | $166,803 / key | | 50 | % | | 3 |
| 67 | | Senior Loan | | 2/15/2022 | | 106 | | 105 | | 105 | | +2.85 | | % | | +3.19 | | % | | 3/9/2027 | | Tampa | | Multi | | $241,437 / unit | | 73 | % | | 2 |
| 68 | | Senior Loan | | 8/31/2017 | | 105 | | 105 | | 105 | | +2.62 | | % | | +2.62 | | % | | 9/9/2026 | | Orange County | | Office | | $162 / sqft | | 58 | % | | 4 |
| 69 | | Senior Loan | | 9/23/2019 | | 108 | | 102 | | 102 | | +3.50 | | % | | +3.65 | | % | | 8/16/2027 | | Diversified, Spain | | Hospitality | | $118,796 / key | | 62 | % | | 2 |
| 70 | | Senior Loan | | 11/27/2019 | | 104 | | 102 | | 100 | | +7.86 | | % | | +7.86 | | % | | 7/9/2025 | | Minneapolis | | Office | | $93 / sqft | | n/m | | 5 |
| 71 | | Senior Loan | | 1/30/2020 | | 99 | | 99 | | 99 | | +3.50 | | % | | +3.68 | | % | | 2/9/2027 | | Honolulu | | Hospitality | | $268,794 / key | | 63 | % | | 3 |
| 72 | | Senior Loan | | 6/18/2021 | | 99 | | 99 | | 98 | | +2.71 | | % | | +2.95 | | % | | 7/9/2026 | | New York | | Industrial | | $51 / sqft | | 55 | % | | 1 |
| 73 | | Senior Loan | | 3/29/2022 | | 97 | | 97 | | 98 | | +1.80 | | % | | +2.69 | | % | | 4/9/2027 | | Miami | | Multi | | $271,118 / unit | | 75 | % | | 4 |
| 74 | | Senior Loan | | 10/1/2021 | | 96 | | 96 | | 97 | | +1.86 | | % | | +2.79 | | % | | 10/1/2026 | | Phoenix | | Multi | | $223,242 / unit | | 77 | % | | 4 |
| 75 | | Senior Loan | | 10/28/2021 | | 96 | | 96 | | 95 | | +3.00 | | % | | +3.24 | | % | | 11/9/2026 | | Philadelphia | | Multi | | $352,399 / unit | | 79 | % | | 3 |
| 76 | | Senior Loan | | 12/21/2018 | | 95 | | 95 | | 87 | | +2.71 | | % | | +2.71 | | % | | 12/9/2024 | | Chicago | | Office | | $185 / sqft | | n/m | | 5 |
| 77 | | Senior Loan | | 10/27/2021 | | 93 | | 93 | | 93 | | +2.61 | | % | | +2.81 | | % | | 11/9/2026 | | Orlando | | Multi | | $155,612 / unit | | 75 | % | | 3 |
| 78 | | Senior Loan | | 9/13/2024 | | 94 | | 93 | | 92 | | +3.25 | | % | | +4.11 | | % | | 11/9/2027 | | Seattle | | Multi | | $500,796 / unit | | 68 | % | | 3 |
| 79 | | Senior Loan | | 3/3/2022 | | 92 | | 92 | | 92 | | +3.45 | | % | | +3.76 | | % | | 3/9/2027 | | Boston | | Hospitality | | $418,182 / key | | 64 | % | | 2 |
| 80 | | Senior Loan | | 10/16/2018 | | 88 | | 88 | | 88 | | +7.36 | | % | | +7.36 | | % | | 5/9/2025 | | San Francisco | | Hospitality | | $191,807 / key | | n/m | | 5 |
| 81 | | Senior Loan | | 6/14/2022 | | 106 | | 88 | | 88 | | +2.95 | | % | | +3.84 | | % | | 7/9/2027 | | San Francisco | | Mixed-Use | | $182 / sqft | | 76 | % | | 4 |
| 82 | | Senior Loan | | 3/25/2020 | | 88 | | 88 | | 88 | | +2.40 | | % | | +2.66 | | % | | 3/31/2025 | | Diversified, NL | | Multi | | $105,769 / unit | | 65 | % | | 2 |
| 83 | | Senior Loan | | 6/25/2021 | | 85 | | 85 | | 86 | | +2.86 | | % | | +3.10 | | % | | 7/1/2026 | | St. Louis | | Multi | | $80,339 / unit | | 70 | % | | 2 |
| 84 | | Senior Loan | | 7/29/2021 | | 82 | | 82 | | 82 | | +2.76 | | % | | +3.01 | | % | | 8/9/2026 | | Charlotte | | Multi | | $223,735 / unit | | 78 | % | | 3 |
| 85 | | Senior Loan | | 12/15/2021 | | 80 | | 80 | | 80 | | +3.25 | | % | | +3.54 | | % | | 12/15/2026 | | Melbourne, AU | | Multi | | $58,890 / unit | | 38 | % | | 1 |
| 86 | | Senior Loan | | 8/27/2021 | | 79 | | 78 | | 78 | | +4.35 | | % | | +4.59 | | % | | 9/9/2026 | | Diversified - US | | Hospitality | | $116,168 / key | | 67 | % | | 3 |
| 87 | | Senior Loan | | 12/21/2021 | | 74 | | 72 | | 72 | | +2.70 | | % | | +3.06 | | % | | 1/9/2027 | | Tampa | | Multi | | $212,924 / unit | | 77 | % | | 3 |
| 88 | | Senior Loan | | 10/28/2021 | | 69 | | 69 | | 69 | | +2.66 | | % | | +2.86 | | % | | 11/9/2026 | | Tacoma | | Multi | | $209,864 / unit | | 70 | % | | 3 |
| 89 | | Senior Loan | | 8/17/2022 | | 74 | | 67 | | 67 | | +3.35 | | % | | +3.83 | | % | | 8/17/2027 | | Dublin, IE | | Industrial | | $104 / sqft | | 72 | % | | 3 |
| 90 | | Senior Loan | | 8/16/2022 | | 66 | | 66 | | 66 | | +4.75 | | % | | +5.19 | | % | | 8/16/2027 | | London, UK | | Hospitality | | $491,369 / key | | 64 | % | | 3 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Loan Type(1) | | Origination Date(2) | | Total Loan(3)(4) | | Principal Balance(4) | | Net Book
Value | | Cash Coupon(5) | | | All-in Yield(5) | | | Maximum Maturity(6) | | Location | | Property Type | | Loan Per
SQFT / Unit / Key | | Origination LTV(2) | | Risk
Rating |
| 91 | | Senior Loan | | 3/31/2022 | | $ | 70 | | | $ | 65 | | | $ | 65 | | | +2.80 | | % | | +3.14 | | % | | 4/9/2027 | | Las Vegas | | Multi | | $143,130 / unit | | 71 | % | | 3 |
| 92 | | Senior Loan | | 12/17/2021 | | 65 | | 65 | | 65 | | +4.35 | | % | | +4.59 | | % | | 1/9/2026 | | Diversified - US | | Other | | $4,886 / unit | | 37 | % | | 1 |
| 93 | | Senior Loan | | 7/30/2021 | | 62 | | 62 | | 62 | | +2.86 | | % | | +3.06 | | % | | 8/9/2026 | | Salt Lake City | | Multi | | $224,185 / unit | | 73 | % | | 3 |
| 94 | | Senior Loan | | 4/6/2021 | | 62 | | 62 | | 62 | | 6.00 | % | % | | 6.00 | % | % | | 1/9/2030 | | Los Angeles | | Office | | $254 / sqft | | 65 | % | | 3 |
| 95 | | Senior Loan | | 6/30/2021 | | 65 | | 61 | | 61 | | +2.95 | | % | | +3.20 | | % | | 7/9/2026 | | Nashville | | Office | | $252 / sqft | | 71 | % | | 4 |
| 96 | | Senior Loan | | 4/26/2024 | | 69 | | 61 | | 61 | | +4.95 | | % | | +5.62 | | % | | 5/9/2029 | | Bermuda | | Hospitality | | $693,780 / key | | 39 | % | | 2 |
| 97 | | Senior Loan | | 12/10/2020 | | 61 | | 60 | | 60 | | +3.30 | | % | | +3.55 | | % | | 1/9/2026 | | Fort Lauderdale | | Office | | $207 / sqft | | 68 | % | | 3 |
| 98 | | Senior Loan | | 12/17/2021 | | 58 | | 58 | | 58 | | +2.65 | | % | | +2.85 | | % | | 1/9/2027 | | Phoenix | | Multi | | $209,601 / unit | | 69 | % | | 3 |
| 99 | | Senior Loan | | 6/14/2021 | | 58 | | 58 | | 58 | | +2.30 | | % | | +2.30 | | % | | 3/9/2027 | | Miami | | Office | | $122 / sqft | | 65 | % | | 3 |
| 100 | | Mezzanine Loan(8) | | 8/31/2017 | | 64 | | 56 | | 39 | | +2.82 | | % | | +2.82 | | % | | 9/9/2026 | | Orange County | | Office | | $249 / sqft | | n/m | | 5 |
| 101 | | Senior Loan | | 8/5/2021 | | 56 | | 54 | | 54 | | +2.96 | | % | | +3.21 | | % | | 8/9/2026 | | Denver | | Office | | $205 / sqft | | 70 | % | | 3 |
| 102 | | Senior Loan | | 12/14/2018 | | 54 | | 54 | | 54 | | +3.01 | | % | | +3.28 | | % | | 1/9/2025 | | Diversified - US | | Industrial | | $40 / sqft | | 57 | % | | 1 |
| 103 | | Senior Loan | | 7/28/2021 | | 53 | | 53 | | 53 | | +2.75 | | % | | +2.99 | | % | | 8/9/2026 | | Los Angeles | | Multi | | $303,097 / unit | | 71 | % | | 3 |
| 104 | | Senior Loan | | 12/12/2024 | | 61 | | 53 | | 53 | | +2.85 | | % | | +3.23 | | % | | 1/9/2030 | | Minneapolis | | Industrial | | $75 / sqft | | 59 | % | | 3 |
| 105 | | Senior Loan | | 8/22/2019 | | 53 | | 53 | | 53 | | +2.66 | | % | | +2.66 | | % | | 3/9/2025 | | Los Angeles | | Office | | $307 / sqft | | 63 | % | | 4 |
| 106 | | Senior Loan | | 4/7/2022 | | 57 | | 52 | | 52 | | +3.25 | | % | | +3.48 | | % | | 4/9/2027 | | Denver | | Office | | $152 / sqft | | 59 | % | | 4 |
| 107 | | Senior Loan | | 7/20/2021 | | 48 | | 48 | | 48 | | +2.86 | | % | | +3.11 | | % | | 8/9/2026 | | Los Angeles | | Multi | | $366,412 / unit | | 60 | % | | 3 |
| 108 | | Senior Loan | | 11/30/2016 | | 55 | | 46 | | 46 | | +3.33 | | % | | +3.82 | | % | | 12/9/2025 | | Chicago | | Retail | | $804 / sqft | | 54 | % | | 4 |
| 109 | | Senior Loan | | 10/21/2022 | | 45 | | 45 | | 45 | | +4.14 | | % | | +4.51 | | % | | 10/18/2027 | | Diversified, DEU | | Industrial | | $62 / sqft | | 74 | % | | 2 |
| 110 | | Senior Loan | | 12/8/2021 | | 48 | | 44 | | 44 | | +2.75 | | % | | +2.96 | | % | | 12/9/2026 | | Columbus | | Multi | | $143,150 / unit | | 69 | % | | 2 |
| 111 | | Senior Loan | | 12/29/2021 | | 43 | | 43 | | 43 | | +2.85 | | % | | +2.96 | | % | | 1/1/2027 | | Dallas | | Multi | | $144,167 / unit | | 73 | % | | 3 |
| 112 | | Senior Loan | | 7/29/2021 | | 42 | | 42 | | 42 | | +2.86 | | % | | +3.06 | | % | | 8/9/2026 | | Las Vegas | | Multi | | $167,113 / unit | | 72 | % | | 2 |
| 113 | | Senior Loan | | 3/31/2022 | | 42 | | 38 | | 38 | | +2.80 | | % | | +3.15 | | % | | 4/9/2027 | | Las Vegas | | Multi | | $149,146 / unit | | 72 | % | | 3 |
| 114 | | Senior Loan | | 2/26/2021 | | 36 | | 36 | | 36 | | +3.50 | | % | | +3.74 | | % | | 3/9/2026 | | Austin | | Multi | | $196,228 / unit | | 64 | % | | 1 |
| 115 | | Senior Loan | | 12/23/2021 | | 35 | | 35 | | 35 | | +1.71 | | % | | +2.61 | | % | | 11/15/2025 | | New York | | Multi | | $173,053 / unit | | 68 | % | | 2 |
| 116 | | Mezzanine Loan | | 3/10/2020 | | 35 | | 35 | | 34 | | +3.00 | | % | | +3.00 | | % | | 7/11/2029 | | New York | | Mixed-Use | | $665 / sqft | | n/m | | 5 |
| 117 | | Senior Loan | | 12/23/2021 | | 35 | | 35 | | 35 | | +2.90 | | % | | +3.19 | | % | | 1/1/2025 | | Jersey City | | Multi | | $110,472 / unit | | 46 | % | | 3 |
| 118 | | Senior Loan | | 3/1/2022 | | 35 | | 35 | | 35 | | +3.00 | | % | | +3.34 | | % | | 3/9/2027 | | Los Angeles | | Multi | | $372,340 / unit | | 72 | % | | 3 |
| 119 | | Senior Loan | | 12/23/2021 | | 35 | | 35 | | 35 | | +2.76 | | % | | +2.96 | | % | | 4/26/2025 | | Corvallis | | Multi | | $96,713 / unit | | 71 | % | | 1 |
| 120 | | Senior Loan | | 12/23/2021 | | 35 | | 35 | | 35 | | +3.11 | | % | | +3.33 | | % | | 2/1/2026 | | New York | | Office | | $247 / sqft | | 30 | % | | 3 |
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| | Loan Type(1) | | Origination Date(2) | | Total Loan(3)(4) | | Principal Balance(4) | | Net Book
Value | | Cash Coupon(5) | | | All-in Yield(5) | | | Maximum Maturity(6) | | Location | | Property Type | | Loan Per
SQFT / Unit / Key | | Origination LTV(2) | | Risk
Rating |
| 121 | | Senior Loan | | 11/19/2020 | | $ | 38 | | | $ | 32 | | | $ | 32 | | | +3.50 | | % | | +3.76 | | % | | 12/9/2025 | | Chicago | | Multi | | $184,388 / unit | | 53 | % | | 1 |
| 122 | | Senior Loan | | 11/3/2021 | | 32 | | 32 | | 32 | | +2.71 | | % | | +2.96 | | % | | 11/9/2026 | | Atlanta | | Multi | | $182,093 / unit | | 53 | % | | 3 |
| 123 | | Senior Loan | | 4/15/2021 | | 36 | | 31 | | 31 | | +3.06 | | % | | +3.06 | | % | | 12/9/2029 | | Austin | | Office | | $153 / sqft | | 73 | % | | 4 |
| 124 | | Senior Loan | | 11/19/2020 | | 28 | | 28 | | 28 | | +3.50 | | % | | +3.74 | | % | | 12/9/2025 | | Charlotte | | Multi | | $178,019 / unit | | 61 | % | | 1 |
| 125 | | Senior Loan | | 11/3/2021 | | 27 | | 27 | | 27 | | +2.71 | | % | | +2.96 | | % | | 11/9/2026 | | Dallas | | Multi | | $160,023 / unit | | 57 | % | | 2 |
| 126 | | Senior Loan | | 8/26/2022 | | 26 | | 26 | | 26 | | +4.50 | | % | | +4.94 | | % | | 6/23/2029 | | Melbourne, AU | | Multi | | $276,485 / unit | | 68 | % | | 3 |
| 127 | | Mezzanine Loan | | 4/15/2021 | | 24 | | 24 | | 20 | | +5.00 | | % | | +5.00 | | % | | 12/9/2029 | | Austin | | Office | | $153 / sqft | | n/m | | 5 |
| 128 | | Senior Loan | | 10/1/2019 | | 23 | | 23 | | 23 | | +3.80 | | % | | +4.03 | | % | | 10/9/2025 | | Atlanta | | Hospitality | | $129,442 / key | | 74 | % | | 3 |
| 129 | | Senior Loan | | 8/4/2021 | | 22 | | 22 | | 22 | | +2.86 | | % | | +3.13 | | % | | 8/9/2026 | | Las Vegas | | Multi | | $180,000 / unit | | 73 | % | | 3 |
| 130 | | Senior Loan | | 6/25/2021 | | 12 | | 12 | | 12 | | +2.86 | | % | | +3.10 | | % | | 7/1/2026 | | St. Louis | | Multi | | $21,273 / unit | | 63 | % | | 1 |
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(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 $1.9 billion of floating rate impaired loans.
(5)Excludes $817.5 million of non-consolidated senior interests and $100.1 million of loan participations sold, as of December 31, 2024. Our non-consolidated senior interests and loan participations sold are structurally non-recourse and term-matched to the corresponding loans, and have no impact on our net floating rate exposure.
(6)Our loan agreements generally require our borrowers to purchase interest rate caps, which mitigates our borrowers’ exposure to an increase in interest rates.
(7)Includes amounts outstanding under secured debt, securitizations, asset-specific debt, Term Loans, and the 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.
Investment Portfolio Value
As of December 31, 2024, substantially all of our portfolio 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 December 31, 2024, 92% of our performing loans have interest rate caps, with a weighted-average strike price of 3.5%, or interest guarantees. During the year ended December 31, 2024, interest
rate caps on $16.0 billion of performing loans, with a 3.4% weighted-average strike price, expired and 95% were replaced with new interest rate caps, with a weighted-average strike price of 3.7%, or interest guarantees.
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 December 31, 2024, we had an aggregate $580.7 million asset-specific CECL reserve related to 13 of our loans receivable, with an aggregate amortized cost basis of $1.8 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 December 31, 2024.
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 addition, substantially all of our net asset exposure to foreign currencies has been hedged with foreign currency forward contracts as of December 31, 2024.
The following tables outline our assets and liabilities that are denominated in a foreign currency (amounts in thousands):
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| | December 31, 2024 |
| GBP | | EUR | | All Other(1) |
| Foreign currency assets | £ | 2,395,743 | | | € | 2,217,058 | | | $ | 1,422,240 | |
| Foreign currency liabilities | (1,784,029) | | (1,604,452) | | (1,101,233) |
| Foreign currency contracts – notional | (604,739) | | (603,910) | | (315,272) |
| Net exposure to exchange rate fluctuations | £ | 6,975 | | | € | 8,696 | | | $ | 5,735 | |
Net exposure to exchange rate fluctuations in USD(2) | $ | 8,730 | | | $ | 9,004 | | | $ | 5,735 | |
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See accompanying notes to consolidated financial statements.
Blackstone Mortgage Trust, Inc.
Consolidated Statements of Changes in Equity (in thousands)
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| | Blackstone Mortgage Trust, Inc. | | | | |
| | Class A
Common
Stock | | Additional Paid- In Capital | | Accumulated Other Comprehensive Income (Loss) | | Accumulated Deficit | | Stockholders’ Equity | | Non-Controlling Interests | | Total Equity |
Balance at December 31, 2021 | $ | | | | $ | | | | $ | | | | $ | () | | | $ | | | | $ | | | | $ | | |
| Adoption of ASU 2020-06 | — | | () | | — | | | | () | | — | | () |
| Shares of class A common stock issued, net | | | | | — | | — | | | | — | | |
| Restricted class A common stock earned | | | | | — | | — | | | | — | | |
| Dividends reinvested | — | | | | — | | — | | | | — | | |
| Deferred directors’ compensation | — | | | | — | | — | | | | — | | |
| Net income | — | | — | | — | | | | | | | | |
| Other comprehensive income | — | | — | | | | — | | | | — | | |
Dividends declared on common stock and deferred stock units, $ per share | — | | — | | — | | () | | () | | — | | () |
| Contributions from non-controlling interests | — | | — | | — | | — | | — | | | | |
| Distributions to non-controlling interests | — | | — | | — | | — | | — | | () | | () |
Balance at December 31, 2022 | $ | | | | $ | | | | $ | | | | $ | () | | | $ | | | | $ | | | | $ | | |
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| Deferred directors’ compensation | — | | | | — | | — | | | | — | | |
| Net income | — | | — | | — | | | | | | | | |
| Other comprehensive loss | — | | — | | () | | | | () | | — | | () |
Dividends declared on common stock and deferred stock units, $ per share | — | | — | | — | | () | | () | | — | | () |
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Balance at December 31, 2023 | $ | | | | $ | | | | $ | | | | $ | () | | | $ | | | | $ | | | | $ | | |
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See accompanying notes to consolidated financial statements.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements
1.
2.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
restricted cash on our consolidated balance sheets.Through our subsidiaries, we have oversight of certain servicing accounts held with third-party servicers, or Servicing Accounts, which relate to borrower escrows and other cash balances aggregating $ million and $ million as of December 31, 2024 and 2023, respectively. This cash is maintained in segregated bank accounts, and these amounts are not included in the assets and liabilities presented in our consolidated balance sheets. Cash in these Servicing Accounts will be transferred by the respective third-party servicer to the borrower or us under the terms of the applicable loan agreement upon occurrence of certain future events. We do not generate any revenue or incur any expenses as a result of these Servicing Accounts.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
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 December 31, 2024, we had REO assets which were all classified as held for investment.
Our maximum loss-sharing obligation associated with the loans referred by us to MTRCC under the Fannie Mae program was $ million as of December 31, 2024, and we have recorded a related liability of $ as of December 31, 2024. We had loss-sharing obligations or related liabilities as of December 31, 2023. There have been no losses incurred as a result of the loss-sharing obligations.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
million asset-specific CECL reserve related to of our loans receivable with an aggregate amortized cost basis of $ billion, net of cost-recovery proceeds. The CECL reserve was
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
In the year ended December 31, 2024, we acquired legal title or otherwise consolidated REO assets. At the time of each acquisition or consolidation, we determined the fair value of each real estate asset based on a variety of inputs including, but not limited to, estimated cash flow projections, leasing assumptions, required capital expenditures, market data, and comparable sales. The REO assets were measured at fair value on a nonrecurring basis using significant unobservable inputs and are classified as Level 3 assets in the fair value hierarchy. The significant unobservable inputs used include the exit capitalization rate assumptions used to forecast the future sale price of the assets, which ranged from % to %, as well as the discount rate, which ranged from % to %. Refer to Note 4 and Note 19 for additional information.
We are also required by GAAP to disclose fair value information about financial instruments, which are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments.
The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value:
•Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates fair value.
•Loans receivable, net: The fair values of these loans were estimated using a discounted cash flow methodology, taking into consideration various factors including capitalization rates, discount rates, leasing, credit worthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors.
•Derivative financial instruments: The fair value of our foreign currency and interest rate contracts was estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads.
•Secured debt, net: The fair value of these instruments was estimated based on the rate at which a similar credit facility would currently be priced.
•Securitized debt obligations, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price.
•Asset-specific debt, net: The fair value of these instruments was estimated based on the rate at which a similar agreement would currently be priced.
•Loan participations sold, net: The fair value of these instruments was estimated based on the value of the related loan receivable asset.
•Term loans, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price.
•Senior secured notes, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
See Note 23 for the required disclosures.
3.
| | | | | Principal balance | $ | | | | $ | | |
| Net book value | $ | | | | $ | | |
Unfunded loan commitments(1) | $ | | | | $ | | |
Weighted-average cash coupon(2) | + | % | | + | % |
Weighted-average all-in yield(2) | + | % | | + | % |
Weighted-average maximum maturity (years)(3) | | | |
(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, and other indices, as applicable to each loan. As of December 31, 2024, substantially all of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR. As of December 31, 2023, % of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR and the remaining % of our loans earned a fixed rate of interest. Floating rate exposure as of December 31, 2023 includes an interest rate swap we entered into with a notional amount of $ million that effectively converted certain of our fixed rate loan exposure to floating rate exposure. 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)Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any. As of December 31, 2024, % of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and % were open to repayment by the borrower without penalty. As of December 31, 2023, % of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and % were open to repayment by the borrower without penalty.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
| | $ | | | | $ | | | 0.00% or no floor(2) | | | | | | |
| 0.01% to 1.00% floor | | | | | | |
| 1.01% to 2.00% floor | | | | | | |
| 2.01% to 3.00% floor | | | | | | |
| 3.01% or more floor | | | | | | |
Total(3) | | $ | | | | $ | | | | $ | | |
(1)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, and Swiss Franc currencies.
(2)Includes all impaired loans.
(3)As of December 31, 2024, the weighted-average index rate floor of our loans receivable principal balance was %. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was %.
| | $ | () | | | $ | | | | Loan fundings | | | — | | |
| Loan repayments, sales, and cost-recovery proceeds | () | | () | | () |
| Payment-in-kind interest, net of interest received | | | — | | |
|
| Unrealized gain (loss) on foreign currency translation | | | () | | |
| Deferred fees and other items | — | | () | | () |
| Amortization of fees and other items | — | | | | |
Loans Receivable, as of December 31, 2023 | $ | | | | $ | () | | | $ | | |
|
|
| Loan fundings | | | — | | |
| Loan repayments, sales, and cost-recovery proceeds | () | | () | | () |
| Charge-offs | () | | | | () |
| Transfer to real estate owned | () | | — | | () |
Transfer to other assets, net(2) | () | | — | | () |
| Payment-in-kind interest, net of interest received | | | — | | |
| Unrealized (loss) gain on foreign currency translation | () | | | | () |
| Deferred fees and other items | — | | () | | () |
| Amortization of fees and other items | — | | | | |
Loans Receivable, as of December 31, 2024 | $ | | | | $ | () | | | $ | | |
| CECL reserve | | | | | () |
Loans Receivable, net, as of December 31, 2024 | | | | | $ | | |
(1)Other items primarily consist of purchase and sale discounts or premiums, exit fees, deferred origination expenses, and cost-recovery proceeds.
(2)This amount relates to: (i) intangible and other assets recorded in connection with loans that were transferred to REO, net of any liabilities recorded upon acquisition, if any; (ii) a loan that was partially satisfied through the issuance of a note receivable; and (iii) proceeds from loan repayments that are held in escrow, all of which are included within other assets in our consolidated balance sheets. See Note 6 for further information.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
| $ | | | | $ | | | | $ | | | | % | | Multifamily | | | | | | | | | | |
| Hospitality | | | | | | | | | | |
| Industrial | | | | | | | | | | |
| Retail | | | | | | | | | | |
| Life Sciences / Studio | | | | | | | | | | |
| Other | | | | | | | | | | |
| Total loans receivable | | | | $ | | | | $ | | | | $ | | | | % |
| CECL reserve | | | | () | | | | | | | |
| Loans receivable, net | | | | $ | | | | | | | | |
| | | | | | | | | | |
| Geographic Location | | Number of Loans | | Net Book Value | | Total Loan Exposure(1) | | Net Loan Exposure(2) | | Net Loan Exposure Percentage of
Portfolio |
| United States | | | | | | | | | | |
| Sunbelt | | | | $ | | | | $ | | | | $ | | | | % |
| Northeast | | | | | | | | | | |
| West | | | | | | | | | | |
| Midwest | | | | | | | | | | |
| Northwest | | | | | | | | | | |
| Subtotal | | | | | | | | | | |
| International | | | | | | | | | | |
| United Kingdom | | | | | | | | | | |
| Ireland | | | | | | | | | | |
| Australia | | | | | | | | | | |
| Spain | | | | | | | | | | |
| Sweden | | | | | | | | | | |
| | | |
| Other Europe | | | | | | | | | | |
| Other International | | | | | | | | | | |
| Subtotal | | | | | | | | | | |
| Total loans receivable | | | | $ | | | | $ | | | | $ | | | | % |
| CECL reserve | | | | () | | | | | | | |
| Loans receivable, net | | | | $ | | | | | | | | |
(1)Total loan exposure reflects our aggregate exposure to each loan investment. As of December 31, 2024, total loan exposure, includes (i) loans with an outstanding principal balance of $ billion that are included in our consolidated financial statements, (ii) $ million of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $ million of junior loan interests that we have sold, but that remain included in our consolidated financial statements. See Note 2 for further discussion of loan participations sold.
(2)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31, 2024, which is our total loan exposure net of (i) $ million of non-consolidated senior interests, (ii) $ billion of asset-specific debt, (iii) $ million of cost-recovery proceeds, and (iv) our total loans receivable CECL reserve of $ million. Our non-consolidated senior interests, asset-specific debt, and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
| $ | | | | $ | | | | $ | | | | % | | Multifamily | | | | | | | | | | |
| Hospitality | | | | | | | | | | |
| Industrial | | | | | | | | | | |
| Retail | | | | | | | | | | |
| Life Sciences/Studio | | | | | | | | | | |
| Other | | | | | | | | | | |
| Total loans receivable | | | | $ | | | | $ | | | | $ | | | | % |
| CECL reserve | | | | () | | | | | | | |
| Loans receivable, net | | | | $ | | | | | | | | |
| | | | | | | | | | |
| Geographic Location | | Number of
Loans | | Net
Book Value | | Total Loan Exposure(1) | | Net Loan Exposure(2) | | Net Loan Exposure Percentage of
Portfolio |
| United States | | | | | | | | | | |
| Sunbelt | | | | $ | | | | $ | | | | $ | | | | % |
| Northeast | | | | | | | | | | |
| West | | | | | | | | | | |
| Midwest | | | | | | | | | | |
| Northwest | | | | | | | | | | |
| Subtotal | | | | | | | | | | |
| International | | | | | | | | | | |
| United Kingdom | | | | | | | | | | |
| Australia | | | | | | | | | | |
| Ireland | | | | | | | | | | |
| Spain | | | | | | | | | | |
| Sweden | | | | | | | | | | |
| | | |
| Other Europe | | | | | | | | | | |
| Subtotal | | | | | | | | | | |
| Total loans receivable | | | | $ | | | | $ | | | | $ | | | | % |
| CECL reserve | | | | () | | | | | | |
| Loans receivable, net | | | | $ | | | | | | | | |
(1)Total loan exposure reflects our aggregate exposure to each loan investment. As of December 31, 2023, total loan exposure, includes (i) loans with an outstanding principal balance of $ billion that are included in our consolidated financial statements, (ii) $ billion of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $ million of junior loan interests that we have sold, but that remain included in our consolidated financial statements. See Note 2 for further discussion of loan participations sold.
(2)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31, 2023, which is our total loan exposure net of (i) $ billion of non-consolidated senior interests, (ii) $ billion of asset-specific debt, (iii) $ million of senior loan participations sold, (iv) $ million of cost-recovery proceeds, and (v) our total loans receivable CECL reserve of $ million. Our non-consolidated senior interests, asset-specific debt, and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
| $ | | | | $ | | | | $ | | | | 2 | | | | | | | | |
| 3 | | | | | | | | |
| 4 | | | | | | | | |
| 5 | | | | | | | | |
| Total loans receivable | | | | $ | | | | $ | | | | $ | | |
| CECL reserve | | | | () | | | | |
| Loans receivable, net | | | | $ | | | | | | |
| | | | | | | | |
| | December 31, 2023 |
Risk Rating | | Number of Loans | | Net Book Value | | Total Loan Exposure(1) | | Net Loan Exposure(2) |
| 1 | | | | $ | | | | $ | | | | $ | | |
| 2 | | | | | | | | |
| 3 | | | | | | | | |
| 4 | | | | | | | | |
| 5 | | | | | | | | |
| Total loans receivable | | | | $ | | | | $ | | | | $ | | |
| CECL reserve | | | | () | | | | |
| Loans receivable, net | | | | $ | | | | | | |
(1)Total loan exposure reflects our aggregate exposure to each loan investment. As of December 31, 2024, total loan exposure, includes (i) loans with an outstanding principal balance of $ billion that are included in our consolidated financial statements, (ii) $ million of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $ million of junior loan interests that we have sold, but that remain included in our consolidated financial statements. As of December 31, 2023, total loan exposure, includes (i) loans with an outstanding principal balance of $ billion that are included in our consolidated financial statements (ii) $ billion of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $ million of junior loan interests that we have sold, but that remain included in our consolidated financial statements. See Note 2 for further discussion of loan participations sold.
(2)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31, 2024, which is our total loan exposure net of (i) $ million of non-consolidated senior interests, (ii) $ billion of asset-specific debt, (iii) $ million of cost-recovery proceeds, and (iv) our total loans receivable CECL reserve of $ million. Our net loan exposure as of December 31, 2023 is our total loan exposure net of (i) $ billion of non-consolidated senior interests, (ii) $ billion of asset-specific debt, (iii) $ million of senior loan participations sold, and (iv) $ million of cost-recovery proceeds, and (v) our total loans receivable CECL reserve of $ million. Our non-consolidated senior interests, asset-specific debt, and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans.
Our loan portfolio had a weighted-average risk rating of as of both December 31, 2024 and 2023, respectively.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
| | $ | | | | $ | | | | $ | | | | $ | | | | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Increase (decrease) in CECL reserves | | | () | | () | | | | | |
| Charge-offs of CECL reserves | | | | | | | () | | () | |
CECL reserves as of December 31, 2024 | | | | | | | | | |
| | | | | | | | | |
CECL reserves as of December 31, 2022 | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Increase in CECL reserves | | | | | | | | | | | | | | |
| | |
CECL reserves as of December 31, 2023 | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
During the year ended December 31, 2024, we recorded a net increase of $ million in the CECL reserves against our loans receivable portfolio, due to a $ million increase in CECL reserves, offset by charge-offs of our CECL reserves of $ million, bringing our total loans receivable CECL reserve to $ million as of December 31, 2024. This increase primarily relates to additional loans that were impaired but not resolved during the year ended December 31, 2024, all of which were secured by office buildings. The office sector is generally facing reduced tenant and capital markets demand in recent years. These 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 increase in the CECL reserves were partially offset by the resolution and charge-off of the CECL reserves on impaired loans during the year ended December 31, 2024. Additionally, the income accrual was suspended on additional loan that was impaired during the three months ended December 31, 2024, as the recovery of income and principal was doubtful. During the three months ended December 31, 2024, we recorded $ million of interest income on this loan. In addition, our general CECL reserves decreased primarily as a result of loan repayments reducing the size of our portfolio during the year ended December 31, 2024. The $ million of charge-offs primarily related to the previously impaired loans that were resolved during the year ended December 31, 2024.
As of December 31, 2024, we had an aggregate $ million asset-specific CECL reserve related to of our loans receivable, with an aggregate amortized cost basis of $ 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 December 31, 2024. No income was recorded on our impaired loans subsequent to determining that they were impaired. During the year ended December 31, 2024, we received an aggregate $ million of cash proceeds from such loans that were applied as a reduction to the amortized cost basis of each respective loan.
As of December 31, 2024, of our performing loans with an amortized cost basis of $ million, inclusive of a $ million junior loan participation sold, was past its current maturity date, was less than 90 days past due on its interest payment, and had a risk rating of “3.” This loan was not impaired as of December 31, 2024 as the estimated fair value of the underlying collateral exceeded our basis in the loan. As of December 31, 2024, all other 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 for further discussion of our policies on revenue recognition and our CECL reserves.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
| | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | 2 | | | | | | | | | | | | | | |
| 3 | | | | | | | | | | | | | | |
| 4 | | | | | | | | | | | | | | |
| 5 | | | | | | | | | | | | | | |
| Total U.S. loans | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Non-U.S. loans | | | | | | | | | | | | | | |
| 1 | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| 2 | | | | | | | | | | | | | | |
| 3 | | | | | | | | | | | | | | |
| 4 | | | | | | | | | | | | | | |
| 5 | | | | | | | | | | | | | | | |
| Total Non-U.S. loans | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Unique loans | | | | | | | | | | | | | | |
| 1 | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| 2 | | | | | | | | | | | | | | |
| 3 | | | | | | | | | | | | | | | |
| 4 | | | | | | | | | | | | | | |
| 5 | | | | | | | | | | | | | | |
| Total unique loans | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Impaired loans | | | | | | | | | | | | | | |
| 1 | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| 2 | | | | | | | | | | | | | | |
| 3 | | | | | | | | | | | | | | |
| 4 | | | | | | | | | | | | | | |
| 5 | | | | | | | | | | | | | | |
| Total impaired loans | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Total loans receivable | | | | | | | | | | | | | | |
| 1 | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| 2 | | | | | | | | | | | | | | |
| 3 | | | | | | | | | | | | | | |
| 4 | | | | | | | | | | | | | | |
| 5 | | | | | | | | | | | | | | |
| Total loans receivable | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| CECL reserve | | | | | | | | | | | | | | () |
| Loans receivable, net | | | | | | | | | | | | | | $ | | |
| | | | | | | | | | | | | | |
Gross charge-offs(2) | | | | | | () | | () | | | | () | | $ | () | |
(1)Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications.
(2)Represents charge-offs by year of origination during the year ended December 31, 2024.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
| | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | 2 | | | | | | | | | | | | | | |
| 3 | | | | | | | | | | | | | | |
| 4 | | | | | | | | | | | | | | |
| 5 | | | | | | | | | | | | | | |
| Total U.S. loans | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Non-U.S. loans | | | | | | | | | | | | | | |
| 1 | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| 2 | | | | | | | | | | | | | | |
| 3 | | | | | | | | | | | | | | |
| 4 | | | | | | | | | | | | | | |
| 5 | | | | | | | | | | | | | | |
| Total Non-U.S. loans | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Unique loans | | | | | | | | | | | | | | |
| 1 | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| 2 | | | | | | | | | | | | | | |
| 3 | | | | | | | | | | | | | | |
| 4 | | | | | | | | | | | | | | |
| 5 | | | | | | | | | | | | | | |
| Total unique loans | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Impaired loans | | | | | | | | | | | | | | |
| 1 | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| 2 | | | | | | | | | | | | | | |
| 3 | | | | | | | | | | | | | | |
| 4 | | | | | | | | | | | | | | |
| 5 | | | | | | | | | | | | | | |
| Total impaired loans | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Total loans receivable | | | | | | | | | | | | | | |
| 1 | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| 2 | | | | | | | | | | | | | | |
| 3 | | | | | | | | | | | | | | |
| 4 | | | | | | | | | | | | | | |
| 5 | | | | | | | | | | | | | | |
| Total loans receivable | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
| CECL reserve | | | | | | | | | | | | | | () |
| Loans receivable, net | | | | | | | | | | | | | | $ | | |
| | | | | | | |
| | | | | | | | (1)Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Loans with a risk rating of “3” and “4” are included in the determination of our general CECL reserve and loans with a risk rating of “5” have an asset-specific CECL reserve. Loan modifications that allow the option to pay interest in-kind increase our potential economics and the size of our secured claim, as interest is capitalized and added to the outstanding principal balance for applicable loans. As of December 31, 2024, no income was recorded on our loans subsequent to determining that they were impaired and risk rated “5.”
of the loan modifications included term extensions. For one of the loans, the modification included a term extension of months. The other modification included a term extension of nine months. As of December 31, 2024, the aggregate amortized cost basis of these loans was $ million, or % of our aggregate loans receivable portfolio, with an aggregate $ million of unfunded commitments. These loans were performing pursuant to their modified contractual terms as of December 31, 2024, had risk ratings of “5” as of December 31, 2024, and have asset-specific CECL reserves.
The other loan modifications included term extensions combined with other-than-insignificant payment delays and/or interest rate reductions. The first loan modification included a term extension of years, and the loan was bifurcated into a separate senior loan and mezzanine loan. The senior loan is paying interest current while the mezzanine loan is paying interest in-kind. The second modification included a term extension of , an additional % exit fee and the interest rate increased by %. The third modification included a term extension of , a $ million increase in our total loan commitment, and was converted to a fixed coupon rate of % with interest paid in-kind, inclusive of a senior portion of our loan that accrues interest at a floating rate of SOFR + %. We are accruing interest on the senior portion of the loan, and deferring interest income recognition on the remaining portion. The fourth loan modification included a term extension of , the borrower repaid $ million of principal, and the loan was bifurcated into a separate senior loan and mezzanine loan. We are accruing interest on the senior loan, which is paying interest current, and deferring interest on the mezzanine loan that is paying interest in-kind. The fifth loan had a term extension of years, the interest rate decreased by %, and the loan was bifurcated into a separate senior loan and mezzanine loan. The senior loan is paying interest partially current, and partially in-kind, while the mezzanine loan is paying interest in-kind. We are accruing interest on the portion of the senior loan that is paying current and a portion that is paid in-kind, and deferring interest income recognition on the remaining portion, including the entire mezzanine loan. As of December 31, 2024, the aggregate amortized cost basis of these loans was $ million, or % of our aggregate loans receivable portfolio, with an aggregate $ million of unfunded commitments. The loans were performing pursuant to their contractual terms as of December 31, 2024. As of December 31, 2024, of these existing loans had a risk rating of “5,” and of these existing loans had a risk rating of “4.” Of the newly bifurcated senior loans, loans had a risk rating of “4,” and loan had a risk rating of “3.” The newly bifurcated mezzanine loans all had a risk rating of “5.”
Multifamily Joint Venture
million and $ million of loans, respectively, which are included in the loan disclosures above. As of December 31, 2024, our Multifamily Joint Venture also held a $ million REO asset, which is included in the REO disclosures in Note 4. As of December 31, 2023, our Multifamily Joint Venture did hold any REO assets. Refer to Note 2 for additional discussion of our Multifamily Joint Venture.
4.
REO assets through foreclosure or consolidation, for a total acquisition price of $ million. We allocated $ million to building and building improvements, $ million to land and land improvements, $ million to acquired intangible assets, and $ million to other components of the purchase price. In aggregate, we charged off $ million of CECL reserves relating to these loans, as the loans’ carrying value of $ million at the time of acquisition exceeded the acquisition date fair value noted above. See Note 2 for additional discussion of REO.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
| | | |
| July 2024 | | San Antonio, TX | | Multifamily | | | | | | |
| September 2024 | | Burlington, MA | | Office | | | | | | |
| October 2024 | | Washington, DC | | Office | | | | | | |
| December 2024 | | San Francisco, CA | | Hospitality | | | | | | |
| December 2024 | | El Segundo, CA | | Office | | | | | | |
| December 2024 | | Denver, CO | | Office | | | | | | |
| Total | | | | | | | | | | | We recognized revenue from real estate owned of $ million during the year ended December 31, 2024, which is included in revenues from real estate owned in our consolidated statements of operations.
We recognized expenses from real estate owned of $ million during the year ended December 31, 2024. These expenses consisted of $ million of depreciation and amortization expense, and $ million of other operating expenses. These expenses are included in expenses from real estate owned in our consolidated statements of operations. There was income or expense recognized related to REO assets during the years ended December 31, 2023 and 2022.
As of December 31, 2023, we did have any REO assets or liabilities.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
|
| 2026 | | |
| 2027 | | |
| 2028 | | |
| 2029 | | |
Thereafter | | |
Total | $ | | |
| | | | | |
) | | |
| | | (1)Included within expenses of real estate owned on our consolidated statements of operations.
| | $ | | | | $ | () | |
| 2026 | | | | | | | () | |
| 2027 | | | | | | | () | |
| 2028 | | | | | | | () | |
| 2029 | | | | | | | () | |
Thereafter | | | | | | | () | |
Total | $ | | | | $ | | | | $ | () | |
5.
million to the joint venture, did receive any distributions, and recorded a $ million loss from unconsolidated entities in our consolidated statements of operations, which represents our share of start-up costs incurred. As of December 31, 2024, our investment in unconsolidated entities totaled $ million. As of December 31, 2023, we had investments in unconsolidated entities. There was income or loss from unconsolidated entities for the years ended December 31, 2023 and 2022.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
6.
| | $ | | | Accounts receivable and other assets(1) | | | | | |
Loan portfolio payments held by servicer(2) | | | | | |
| Real estate intangible assets, net | | | | | |
| Derivative assets | | | | | |
Other real estate assets | | | | | |
| Collateral deposited under derivative agreements | | | | | |
| Prepaid expenses | | | | | |
| |
| |
| |
| |
| |
| |
| |
| Total | $ | | | | $ | | |
(1)Includes $ million of cash collateral held by our CLOs that will be subsequently remitted by the trustee to repay a portion of the outstanding senior CLO securities.
Other Liabilities
| | $ | | | | Accrued interest payable | | | | | |
Other real estate liabilities | | | | | |
| Accrued management and incentive fees payable | | | | | |
| Accounts payable and other liabilities | | | | | |
Current expected credit loss reserves for unfunded loan commitments(1) | | | | | |
| Derivative liabilities | | | | | |
Secured debt repayments pending servicer remittance(2) | | | | | |
| |
| Total | $ | | | | $ | | |
(1)Represents the CECL reserve related to our unfunded loan commitments. See Note 2 for further discussion of the CECL reserves.
Current Expected Credit Loss Reserves for Unfunded Loan Commitments
billion related to loans receivable. The expected credit losses over the contractual period of our loans are impacted by our obligation to extend further credit through our unfunded loan commitments. See Note 2 for further discussion of the CECL reserves related to our unfunded loan commitments, and Note 22 for further discussion of our unfunded loan commitments. During the year ended December 31, 2024, we recorded a decrease in the CECL reserves related to our unfunded loan commitments of $ million, bringing our total unfunded loan commitments CECL reserve to $ million as of December 31, 2024. During the year ended December 31, 2023, we recorded a decrease in the CECL reserves related to our unfunded loan commitments of $ million, bringing our total unfunded loan commitments CECL reserve to $ million as of December 31, 2023.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
7.
million of new borrowings against $ million of collateral assets. | | $ | | | | |
| |
Deferred financing costs(1) | () | | () |
| Net book value of secured debt | $ | | | | $ | | |
Secured Credit Facilities
Our secured credit facilities are bilateral agreements we use to finance diversified pools of senior loan collateral with sufficient flexibility to accommodate our investment and asset management strategy. The facilities are uniformly structured to provide currency, index, and term-matched financing without capital markets based mark-to-market provisions. Our credit facilities are diversified across counterparties, primarily consisting of top global financial institutions to minimize our counterparty risk exposure.
| $ | | | | November 2026 | | | | | $ | | | | December 2026 | | | % | | % - % | | GBP | | | | | | | February 2027 | | | | | | | | February 2027 | | | % | | % - % |
| EUR | | | | | | | October 2026 | | | | | | | | October 2026 | | | % | | % - % |
Others(5) | | | | | | | April 2028 | | | | | | | | April 2028 | | | % | | % |
| Total | | | | $ | | | | January 2027 | | | | | $ | | | | February 2027 | | | % | | % - % |
(1)Represents the number of lenders with fundings advanced in each respective currency, as well as the total number of facility lenders.
(2)Our secured debt agreements are generally term-matched to their underlying collateral. Therefore, the weighted-average maturity 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 secured credit facility is used.
(3)Represents the principal balance of the collateral loan assets and the book value of the collateral REO assets.
(4)Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date.
(5)Includes Australian Dollar, Swedish Krona, and Swiss Franc currencies.
The availability of funding under our secured credit facilities is based on the amount of approved collateral, which collateral is proposed by us in our discretion and approved by the respective counterparty in its discretion, resulting in a mutually agreed collateral portfolio construction. Certain structural elements of our secured credit facilities, including the limitation on recourse to us and facility economics, are influenced by the specific collateral portfolio construction of each facility, and therefore vary within and among the facilities.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
| | $ | | | | + | % | | | $ | | | | + | % | | | + | % | | + 1.51% to + 1.75% | | | | | | | | + | % | | | | | | + | % | | | + | % |
| + 1.76% to + 2.00% | | | | | | | | + | % | | | | | | + | % | | | + | % |
| + 2.01% or more | | | | | | | + | % | | | | | | + | % | | | + | % |
| Total | | $ | | | | $ | | | | + | % | | | $ | | | | + | % | | | + | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, 2023 | | December 31, 2023 |
Spread(1) | | New Financings(2) | | 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 | | $ | | | | $ | | | | + | % | | | $ | | | | + | % | | | + | % |
| + 1.51% to + 1.75% | | | | | | | | + | % | | | | | | + | % | | | + | % |
| + 1.76% to + 2.00% | | | | | | | + | % | | | | | | + | % | | | + | % |
| + 2.01% or more | | | | | | | + | % | | | | | | + | % | | | + | % |
| Total | | $ | | | | $ | | | | + | % | | | $ | | | | + | % | | | + | % |
(1)The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, and other indices as applicable.
(2)Represents the amount of new borrowings we closed during the years ended December 31, 2024 and 2023, respectively.
(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 December 31, 2024 and 2023, respectively, 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.
Our secured credit facilities generally permit us to increase or decrease the amount advanced against the pledged collateral in our discretion within certain maximum/minimum amounts and frequency limitations. As of December 31, 2024, there was an aggregate $ billion available to be drawn at our discretion under our credit facilities.
Acquisition Facility
We previously had a $ million full recourse secured credit facility that was designed to finance eligible first mortgage originations for up to nine months as a bridge to term financing without obtaining discretionary lender approval. The cost of borrowing under the facility was variable, dependent on the type of loan collateral. This facility matured on April 3, 2024.
During the years ended December 31, 2024 and 2023, we had borrowings under the acquisition facility, and we recorded interest expense of $ and $, respectively, including $ and $, respectively of amortization of deferred fees and expenses.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
During the year ended December 31, 2024, the financial covenant under each applicable secured debt agreement related to the ratio of our EBITDA to fixed charges, as noted above, was amended so that the ratio shall be not less than to 1.0 with respect to each of the four fiscal quarters beginning with the quarter ended September 30, 2024, and shall be not less than to 1.0 thereafter.
8.
| $ | | | | $ | | | | + | % | | May 2038 | | Underlying Collateral Assets | | | | | | | | | | + | % | | August 2026 |
| 2020 FL3 Collateralized Loan Obligation | | | | | | | | | | |
| Senior CLO Securities Outstanding | | | | | | | | | | + | % | | November 2037 |
| Underlying Collateral Assets | | | | | | | | | | + | % | | June 2026 |
| 2020 FL2 Collateralized Loan Obligation | | | | | | | | | | |
| Senior CLO Securities Outstanding | | | | | | | | | | + | % | | February 2038 |
| Underlying Collateral Assets | | | | | | | | | | + | % | | August 2026 |
| Total | | | | | | | | | | |
Senior CLO Securities Outstanding(5) | | | | $ | | | | $ | | | | + | % | | |
| Underlying Collateral Assets | | | | $ | | | | $ | | | | + | % | | |
(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 year ended December 31, 2024, we recorded $ million of interest expense related to our securitized debt obligations.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
| $ | | | | $ | | | | + | % | | May 2038 | | Underlying Collateral Assets | | | | | | | | | | + | % | | December 2025 |
| 2020 FL3 Collateralized Loan Obligation | | | | | | | | | | |
| Senior CLO Securities Outstanding | | | | | | | | | | + | % | | November 2037 |
| Underlying Collateral Assets | | | | | | | | | | + | % | | September 2025 |
| 2020 FL2 Collateralized Loan Obligation | | | | | | | | | | |
| Senior CLO Securities Outstanding | | | | | | | | | | + | % | | February 2038 |
| Underlying Collateral Assets | | | | | | | | | | + | % | | October 2025 |
| Total | | | | | | | | | | |
Senior CLO Securities Outstanding(5) | | | | $ | | | | $ | | | | + | % | | |
| Underlying Collateral Assets | | | | $ | | | | $ | | | | + | % | | |
(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.
(4)Underlying Collateral Assets term represents the weighted-average final maturity of such loans, assuming all extension options are exercised by the borrower. 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 year ended December 31, 2023, we recorded $ million of interest expense related to our securitized debt obligations.
9.
| $ | | | | $ | | | | + | % | | June 2026 | | Collateral assets | | | | $ | | | | $ | | | | + | % | | June 2026 |
| | |
| | December 31, 2023 |
| Asset-Specific Debt | | Count | | Principal Balance | | Book Value(1) | | Wtd. Avg. Yield/Cost(2) | | Wtd. Avg. Term(3) |
| Financing provided | | | | $ | | | | $ | | | | + | % | | March 2026 |
| Collateral assets | | | | $ | | | | $ | | | | + | % | | March 2026 |
(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 SOFR. 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.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
10.
| $ | | | | $ | | | | + | % | | February 2026 | Total Loan | | | | | | | | | | + | % | | February 2026 |
| | | |
| | | |
| | | |
| | |
| | | | | | | | | | |
| | December 31, 2023 |
| Loan Participations Sold | | Count | | Principal
Balance | | Book Value(1) | | Wtd. Avg. Yield/Cost(2) | | Term(3) |
Senior Participations | | | | | | | | | | |
Loan Participation | | | | $ | | | | $ | | | | + | % | | March 2027 |
| Total Loan | | | | | | | | | | + | % | | March 2027 |
Junior Participations | | | | | | | | | | |
Loan Participation | | | | $ | | | | $ | | | | + | % | | February 2026 |
Total Loan | | | | | | | | | | + | % | | February 2026 |
Total | | | | | | | | | | |
Loan Participation(4) | | | | $ | | | | $ | | | | | | |
Total Loan | | | | $ | | | | $ | | | | | | |
(1)The book value of underlying collateral assets excludes any applicable CECL reserves.
(2)The weighted-average all-in yield and cost are expressed over the relevant floating benchmark rates, which include SOFR and SONIA, as applicable. This non-debt participation sold structure is inherently matched in terms of currency and interest rate. In addition to cash coupon, yield/cost includes the amortization of deferred fees and financing costs.
(3)The term is determined based on the maximum maturity of the loan, assuming all extension options are exercised by the borrower. Our loan participations sold are inherently non-recourse and term-matched to the corresponding loan.
(4)During the years ended December 31, 2024 and 2023, we recorded $ million and $ million, respectively, of interest expense related to our loan participations sold.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
11.
million under one of our senior term loan facilities, or the B-5 Term Loan. The B-5 Term Loan bears interest at SOFR plus % and matures in December 2028. The proceeds of the B-5 Term Loan were used to repay in full the $ million outstanding on the B-3 Term Loan and $ million of the B-1 Term Loan. Additionally, we repaid an incremental $ million of the B-1 Term Loan using proceeds from the issuance of the % senior secured notes due 2029, or the senior secured notes due 2029.
| | + | % | | + | % | | April 23, 2026 | | |
| B-4 Term Loan | | | | | + | % | | + | % | | May 9, 2029 |
B-5 Term Loan | | | | | + | % | | + | % | | December 10, 2028 |
| Total face value | | $ | | | | | | | | |
(1)The B-4 Term Loan and the B-5 Term Loan borrowings are subject to a floor of %. The Term Loans are indexed to one-month SOFR.
(2)Includes issue discount and transaction expenses that are amortized through interest expense over the life of the Term Loans.
The Term Loans are partially amortizing, with an amount equal to % per annum of the aggregate initial principal balance due in quarterly installments. The issue discount and transaction expenses on the B-1 Term Loan were $ million and $ million, respectively. The issue discount and transaction expenses of the B-4 Term Loan were $ million and $ million, respectively. The issue discount and transaction expenses of the B-5 Term loan were $ million and $ million, respectively. These discounts and expenses are amortized into interest expense over the life of each Term Loan. During the year ended December 31, 2024, we recorded $ million of interest expense related to our Term Loans, including $ million of amortization of deferred fees and expenses.
During the year ended December 31, 2024, we repurchased an aggregate principal amount of $ million of the B-1 Term Loan at a weighted-average price of %. This resulted in a gain on extinguishment of debt of $ during the year ended December 31, 2024. There was repurchase activity during the year ended December 31, 2023.
| | $ | | | | Deferred financing costs and unamortized discount | () | | () |
| Net book value | $ | | | | $ | | |
The Term Loans contain the financial covenant that our indebtedness shall not exceed % of our total assets. As of December 31, 2024 and 2023, we were in compliance with this covenant. Refer to Note 2 for additional discussion of our accounting policies for the Term Loans.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
12.
million aggregate principal amount of the senior secured notes due 2029.
| | | % | | | % | | January 15, 2027 | December 2024 | | | | | | % | (2) | | % | | December 1, 2029 |
(1)Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes.
(2)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.
The transaction expenses on the senior secured notes due 2027, or the October 2021 senior secured notes, were $ million, which are amortized into interest expense over the life of the October 2021 senior secured notes. The transaction expenses on the senior secured notes due 2029 were $ million, which are amortized into interest expense over the life of the senior secured notes due 2029. During the year ended December 31, 2024, we recorded $ million of interest expense related to our Senior Secured Notes, including $ million of amortization of deferred fees and expenses.
During the year ended December 31, 2024, we repurchased an aggregate principal amount of $ million of the October 2021 senior secured notes at a weighted-average price of %. This resulted in a gain on extinguishment of debt of $ million during the year ended December 31, 2024. During the year ended December 31, 2023, we repurchased an aggregate principal amount of $ million of the October 2021 senior secured notes at a weighted-average price of %. This resulted in a gain on extinguishment of debt of $ million during the year ended December 31, 2023.
| | $ | | | | Deferred financing costs | () | | () |
Hedging adjustments(1) | () | | | | |
| Net book value | $ | | | | $ | | |
The Senior Secured Notes contain the financial covenant that our indebtedness shall not exceed % of our total assets. As of December 31, 2024 and 2023, we were in compliance with this covenant. Under certain circumstances, we may, at our option, release all of the collateral securing our Senior Secured Notes, in which case we would also be required to maintain a total unencumbered assets to total unsecured indebtedness ratio of or greater. This covenant is not currently in effect as the collateral securing our Senior Secured Notes has not been released.
13.
| | $ | | | | $ | | | million and $ million
14.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
| kr | | | | Buy USD / Sell SEK Forward | | | | kr | | | | Buy USD / Sell GBP Forward | | | | £ | | | | Buy USD / Sell GBP Forward | | | | £ | | |
| Buy USD / Sell EUR Forward | | | | € | | | | Buy USD / Sell EUR Forward | | | | € | | |
| Buy USD / Sell AUD Forward | | | | A$ | | | | Buy USD / Sell AUD Forward | | | | A$ | | |
| Buy USD / Sell CHF Forward | | | | CHF | | | | Buy USD / Sell DKK Forward | | | | kr. | | |
| | | | | | Buy USD / Sell CHF Forward | | | | CHF | | |
| | | |
Non-designated Hedges of Foreign Currency Risk
| £ | | | | Buy SEK / Sell USD Forward | | | | kr | | |
| Buy USD / Sell GBP Forward | | | | £ | | | | Buy USD / Sell SEK Forward | | | | kr | | |
| | | | | | Buy GBP / Sell USD Forward | | | | £ | | |
| | | | | | Buy USD / Sell GBP Forward | | | | £ | | |
| | | | | | Buy AUD / Sell USD Forward | | | | A$ | | |
| | | | | | Buy USD / Sell AUD Forward | | | | A$ | | |
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| December 31, 2024 |
Interest Rate Derivatives | | Number of Instruments | | Notional Amount | | Fixed Rate | | Index | | Maturity (Years) |
| Interest Rate Swaps | | | | $ | | | | % | | SOFR | | |
| | | | | | $ | | | | $ | | |
(1)Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and prevailing US interest rates. These forward contracts effectively convert the foreign currency rate exposure for such investments to USD-equivalent interest rates.
(2)Represents the financial statement impact of proceeds (payments) from periodic settlements related to our interest rate swap.
(3)Represents the spot rate movement in our non-designated foreign currency hedges, which are marked-to-market and recognized in interest expense.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
| | Gains (losses) on fair value hedging relationships: | |
|
Total gain (loss) on derivative instruments | $ | () | |
Fair value basis adjustment on hedged items | |
Derivative settlements and accruals | () |
Net Gains (Losses) on Fair Value Hedging Relationships(1) | $ | () | |
(1)Included within interest and related expenses presented in the consolidated statement of operations.
Valuation and Other Comprehensive Income
| | $ | | | | $ | | | | $ | | | | Interest rate derivatives | | | | | | | | | | | | |
| Total derivatives designated as hedging instruments | | $ | | | | $ | | | | $ | | | | $ | | |
| Derivatives not designated as hedging instruments: |
| Foreign exchange contracts | | $ | | | | $ | | | | $ | | | | $ | | |
| Interest rate derivatives | | | | | | | | | | | | |
| Total derivatives not designated as hedging instruments | | $ | | | | $ | | | | $ | | | | $ | | |
| Total Derivatives | | $ | | | | $ | | | | $ | | | | $ | | |
(1)Included in other assets in our consolidated balance sheets
(2)Included in other liabilities in our consolidated balance sheets.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
| | $ | | | | $ | | | | | | | | |
(2) | | | | | () | |
| $ | | | | $ | | | | $ | () | |
|
/
|
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|
| 2023 | | 2022 |
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| () | | | $ | | | | $ | | |
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|
| | | | $ | | | | $ | | |
(1)During the years ended December 31, 2024, 2023, and 2022, we recognized an aggregate $, $ million, and $ million, respectively, of expenses related to our Multifamily Joint Venture.
17.
million, $ million, and $ million, respectively, primarily related to activities of our U.S. and foreign taxable subsidiaries and various state and local taxes. We did not have any deferred tax assets or liabilities as of December 31, 2024 or December 31, 2023. We have net operating losses, or NOLs, generated by our predecessor business that may be carried forward and utilized in current or future periods. As a result of our issuance of shares of class A common stock in May 2013, the availability of our NOLs is generally limited to $ million per annum by change of control provisions promulgated by the Internal Revenue Service with respect to the ownership of Blackstone Mortgage Trust. As of December 31, 2024, we had
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
18.
current stock incentive plans, a maximum of shares of our class A common stock may be issued to our Manager, our directors and officers, and certain employees of affiliates of our Manager. As of December 31, 2024, there were shares available under our current stock incentive plans. Prior to the adoption and shareholder approval of our new stock incentive plans in June 2022, we had stock-based incentive awards outstanding under stock incentive plans. In connection with the adoption of our new stock incentive plans, we consolidated all outstanding deferred stock units, or DSUs, under the new plans and retired the remaining historical plans. As such, no new awards may be issued under these expired plans, although our 2018 plans will continue to govern outstanding awards, other than DSUs, previously issued thereunder until such awards become vested or expire. | $ | | | | Granted | | | |
| Vested | () | | |
| Forfeited | () | | |
Balance as of December 31, 2023 | | | $ | | |
| Granted | | | |
| Vested | () | | |
| Forfeited | () | | |
Balance as of December 31, 2024 | | | $ | | |
These shares generally vest in installments over a period of , pursuant to the terms of the respective award agreements and the terms of our current benefit plans. The shares of restricted class A common stock outstanding as of December 31, 2024 will vest as follows: shares will vest in 2025; shares will vest in 2026; and shares will vest in 2027. As of December 31, 2024, total unrecognized compensation cost relating to unvested share-based compensation arrangements was $ million based on the grant date fair value of shares granted. This cost is expected to be recognized over a weighted-average period of years from December 31, 2024.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
19.
| | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | Liabilities | | | | | | | | | | | | | | | |
| Derivatives | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
Refer to Note 2 for further discussion regarding fair value measurement.
Fair Value of Financial Instruments
As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized at fair value in the statement of financial position, for which it is practicable to estimate that value.
| | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | Loans receivable, net | | | | | | | | | | | | | | | | | |
| | | | |
|
|
| Asset class |
|
| | | — | | $ | | | | $ | | |
(1)Affiliates of our Manager own an interest in the controlling entity of BTIG, LLC, or BTIG. BTIG was utilized as a broker to engage third-parties to facilitate our repurchase of our Senior Secured Notes and Convertible Notes. During the years ended December 31, 2024 and 2023, we repurchased $ million and $ of our Senior Secured Notes and Convertible Notes, respectively, utilizing BTIG as a broker. During the year ended 2022, we did not utilize BTIG as a broker. Additionally, we engaged BTIG as a sales agent to sell shares of our class A common stock under our ATM Agreements. During the year ended December 31, 2022, BTIG sold shares under our ATM agreements. During the years ended December 31, 2024 and 2023, we did not sell any shares under our ATM agreements. These engagements were on terms equivalent to those of third parties under similar arrangements.
(2)In the first quarter of 2024, in order to provide insurance for our REO assets, we became a member of Gryphon Mutual Property Americas IC, or Gryphon, a captive insurance company owned by us and other Blackstone-advised investment vehicles. A Blackstone affiliate provides oversight and advisory services to Gryphon and receives fees based on a percentage of premiums paid for such policies. The fees and expenses of Gryphon, including insurance premiums and fees paid to its manager, are paid annually and borne by us and the other Blackstone-advised investment vehicles that are members of Gryphon pro rata based on insurance premiums paid for each party’s respective properties. During the year ended December 31, 2024, we paid $ to Gryphon for insurance costs, inclusive of premiums, capital surplus contributions, taxes, and our pro rata share of other expenses. Of this amount, $ was attributable to the fee paid to a Blackstone affiliate to provide oversight and management services to Gryphon. The amounts included in the table above reflect the amortization of the insurance expense over the period of the respective policies.
(3)CT Investment Management Co., LLC is the special servicer of the CLOs. As of December 31, 2024, of our assets were in special servicing under the CLOs. CTIMCO has waived any fees that would be payable to a special servicer pursuant to the applicable servicing agreements, and no such fees have been paid or will become payable to CTIMCO.
(4)Lexington National Land Services, or LNLS, a title agent company owned by Blackstone, acts as an agent for one or more underwriters in issuing title policies and/or providing support services in connection with investments by us, Blackstone and their affiliates and related parties, and third-parties. LNLS focuses on transactions in rate-regulated states where the cost of title insurance is non-negotiable. LNLS will not perform services in non-regulated states for us, unless (i) in the context of a portfolio transaction that includes properties in rate-regulated states, (ii) as part of a syndicate of title insurance companies where the rate is negotiated by other insurers or their agents, (iii) when a third-party is paying all or a material portion of the premium or (iv) when providing only support services to the underwriter. LNLS earns fees, which would have otherwise been paid to third parties, by providing title agency services and facilitating placement of title insurance with underwriters. Blackstone receives distributions from LNLS in connection with investments by us based on its equity interest in LNLS. In each case, there will be no related expense offset to us. The costs included above were capitalized into REO assets on our consolidated balance sheet.
(5)In the fourth quarter of 2024, Blackstone Securities Partners L.P., or BSP, an affiliate of our Manager, was engaged as a member of the syndicate for our B-5 Term Loan and our 2024 Senior Secured Notes. These engagements were on terms equivalent to those of unaffiliated parties.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
In the fourth quarter of 2024, as part of broad syndications led by a third party, Blackstone-advised investment vehicles acquired (i) an aggregate $ million participation in our $ million B-5 Term Loan, and (ii) an aggregate $ million of our $ million senior secured notes due 2029. In the second and fourth quarter of 2022, a Blackstone-advised investment vehicle acquired an aggregate $ million participation, or %, of the aggregate B-4 Term Loan as a part of a broad syndication lead-arranged by a third-party. All of these transactions were on terms equivalent to those of unaffiliated parties. BSP was engaged as a member of the syndicate for both transactions. See “—Affiliates of our Manager” for more information.
In the fourth quarter of 2024, in connection with the modification of one of our senior loans, a Blackstone-advised investment vehicle purchased a pari passu participation in the loan from a third party at a discount to par.
In the fourth quarter of 2024, the senior lenders negotiated a discounted payoff of a senior loan in which we held an interest. As part of the discounted payoff, a Blackstone-advised investment vehicle’s mezzanine loan, which had been part of the total financing, received a small repayment.
In the third quarter of 2024, we acquired $ million of a total $ million senior loan to an unaffiliated third party. One Blackstone-advised investment vehicle holds a portion of the senior loan and another holds a mezzanine loan. We will forgo all non-economic rights under our loan, including voting rights, so long as any Blackstone-advised investment vehicle controls the mezzanine loan. The intercreditor agreement between the senior loan lender and the mezzanine lender was negotiated on market terms by a third party without our involvement, and our % interest in the senior loan was made on such market terms.
In 2019 and 2021, we acquired an aggregate participation of € million of a senior loan to a borrower that is partially owned by a Blackstone-advised investment vehicle. We forgo all non-economic rights under the loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower. The loan was negotiated by third parties on market terms without our involvement, and our interest in the senior loan was subject to such market terms. In the third quarter of 2024, the borrower under a senior loan to the same borrower in which we held a minority position completed a refinancing transaction involving new lenders and the existing lenders. We elected to sell € million of our then remaining € million loan position to the new lenders at par and extend the remainder on modified terms. The terms of the modification (which included, among other changes, an extension of the maturity date, and increase in the interest rate, and additional guarantees) were negotiated by our third-party co-lender.
In the fourth quarter of 2018, we originated £ million of a total £ million senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle. The loan terms were negotiated by our third-party co-lender, and we will forgo all non-economic rights under the loan, including voting rights, so long as a Blackstone-advised investment vehicle controls the borrower. In the third quarter of 2024, we agreed to a refinancing transaction pursuant to which £ million of our £ million participation in an existing £ million loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle was repaid, and we received a £ million participation in a new loan made to the same borrower that continues to be controlled by a Blackstone-advised investment vehicle, and the terms of the loan were modified to include, among other changes, an expanded collateral pool, an extension of the maturity date and an increase in the interest rate. The transaction, including the terms of the modification, was negotiated by our third-party co-lender.
In the second quarter of 2024, a Blackstone-advised investment vehicle acquired a portfolio of assets from an unaffiliated third-party borrower. The proceeds of this transaction repaid a £ million performing junior loan owned by us, and a £ million performing senior loan owned by an unaffiliated third-party, both of which were included in our consolidated balance sheets, with the senior loan also recorded as a loan participation sold liability. The transaction was initiated by the third-party borrower with the sale pricing on market terms and the repayment completed in accordance with the loan agreements between the lenders and the unaffiliated third-party borrower.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
In the first quarter of 2019, we originated £ million of a total £ million senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle. The loan terms were negotiated by our third-party co-lender, and we forgo all non-economic rights under the loan, including voting rights, so long as a Blackstone-advised investment vehicle controls the borrower. In the second quarter of 2023, the loan was modified to include, among other changes, an extension of the loan's maturity date, an additional borrower equity contribution and partial repayment, and an increase in the loan’s contractual interest rate (a portion of which is paid-in-kind). The terms of the modification were negotiated by our third-party co-lender, and we agreed to the modification on such terms.
22.
billion across loans receivable, and $ million of committed or identified financings for those commitments, resulting in net unfunded commitments of $ 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 years.
Principal Debt Repayments
| | | | | | | | | | | | | | | | | 2026 | | | | | | | | | | | | | | | | | | |
| 2027 | | | | | | | | | | | | | | | | | | |
| 2028 | | | | | | | | | | | | | | | | | | |
| 2029 | | | | | | | | | | | | | | | | | | |
| Thereafter | | | | | | | | | | | | | | | | | | |
| Total obligation | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | | | $ | | |
(1)Our secured debt and asset-specific debt agreements are generally term-matched to their underlying collateral. Therefore, the allocation of 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.
(2)The Term Loans are partially amortizing, with an amount equal to % per annum of the initial principal balance due in quarterly installments. Refer to Note 11 for further details on our Term Loans.
(3)Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer to Note 13 for further details on our Convertible Notes.
billion of consolidated securitized debt obligations, $ million of non-consolidated senior interests, and $ million of loan participations sold, as the satisfaction of these liabilities will not require cash outlays from us.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Litigation
23.
reportable segment based on how the CODM reviews and manages the business, which originates and acquires commercial mortgage loans and related investments. Our CODM reviews, among other things, consolidated net income (loss) that is reported on the Consolidated Statements of Operations to make decisions, allocate resources and assess performance and does not evaluate the net income (loss) from any separate geography or product line. The measure of segment assets is reported on the Consolidated Balance Sheets as total consolidated assets.
Blackstone Mortgage Trust, Inc.
Schedule IV – Mortgage Loans on Real Estate
As of December 31, 2024
(in thousands)
| 2027 | | I/O | | $ | | | | $ | | | | $ | | | | $ | | | | Borrower B | | Mixed-Use / Dublin, IE | | + % | | 2025 | | I/O | | | | | | | | |
| Borrower C | | Hospitality / Australia | | + % | | 2029 | | I/O | | | | | | | | |
| Senior loans less than 3% of the carrying amount of total loans | | |
| Senior Mortgage Loans | | Office / Diversified | | -% – % Fixed % | | 2024 – 2030 | | I/O | | | | | | | | |
| Senior Mortgage Loans | | Multifamily / Diversified | | +% – % | | 2025 – 2029 | | I/O & P/I | | | | | | | | |
| Senior Mortgage Loans | | Hospitality / Diversified | | +% – % | | 2025 – 2029 | | I/O & P/I | | | | | | | | |
| Senior Mortgage Loans | | Mixed-Use / Diversified | | +% – % | | 2025 – 2029 | | I/O | | | | | | | | |
| Senior Mortgage Loans | | Industrial / Diversified | | +% – % | | 2025 – 2030 | | I/O & P/I | | | | | | | | |
| Senior Mortgage Loans | | Other / Diversified | | +% – % | | 2026 – 2028 | | I/O | | | | | | | | |
| Senior Mortgage Loans | | Retail / Diversified | | +% – % | | 2025 – 2027 | | I/O & P/I | | | | | | | | |
| Senior Mortgage Loans | | Life Sciences/Studio / Diversified | | +% – % | | 2026 – 2026 | | I/O | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Total senior mortgage loans | | | | | | | | $ | | | | $ | | | | $ | | | | $ | | |
| | | | | | | | | | | | | | | | |
Subordinate Loans(8) | | | | | | | | | | | | | | |
| Subordinate loans less than 3% of the carrying amount of total loans | | |
| Subordinate loans | | Various / Diversified | | +% – % | | 2025 – 2028 | | I/O | | | | | | | | |
| Total subordinate loans | | | | | | | | $ | | | | $ | | | | $ | | | | $ | | |
| Total loans | | | | | | | | $ | | | | $ | | | | $ | | | | $ | | |
CECL reserve(8) | | | | | | | | | | | | | | () | | | |
| Total loans, net | | | | | | | | | | | | | | $ | | | | | (1)Includes senior mortgages and similar credit quality loans, including related contiguous subordinate loans, and pari passu participations in senior mortgage loans.
(2)The interest payment rates are expressed as a spread over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, and other indices, as applicable to each loan. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any.
(3)Maximum maturity date assumes all extension options are exercised.
(4)I/O = interest only, P/I = principal and interest.
(5)Represents only third party liens.
(6)The tax basis of the loans included above is $ billion as of December 31, 2024.
(7)Such loans are generally risk rated “5” with asset-specific CECL reserves, other than one loan that was risk rated “3” and not impaired as of December 31, 2024, as the estimated fair value of the underlying collateral exceeded our basis in the loan.
(8)Includes 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, and mezzanine loans.
(9)As of December 31, 2024, we had a total loans receivable CECL reserve of $ million, of which $ million is specifically related to of our loans receivable with an aggregate amortized cost basis of $ billion as of December 31, 2024. Refer to Note 3 for additional information on our CECL reserves.
Blackstone Mortgage Trust, Inc.
Notes to Schedule IV
As of December 31, 2024
(in thousands)
1.
| | $ | | | | $ | | |
| Additions during period: | | | | | |
| Loan fundings | | | | | |
| Payment-in-kind interest, net of interest received | | | | | |
| Amortization of fees and other items | | | | | |
| Deductions during period: | | | | | |
| Loan repayments, sales, and cost-recovery proceeds | () | | () | | () |
Charge-offs | () | | | | |
Transfer to real estate owned | () | | | | |
Transfer to other assets, net | () | | | | |
| Unrealized gain (loss) on foreign currency translation | () | | | | () |
| Deferred fees and other items | () | | () | | () |
| Balance at December 31, | $ | | | | $ | | | | $ | | |
| CECL reserve | () | | () | | () |
| Net balance at December 31, | $ | | | | $ | | | | $ | | |
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