BXMT Q2 Loss Widens to $81M on $106M CECL Reserve Build; Distributable EPS $0.31
BXMT is trading near its 52-week low of $16.32 (1.0% below the low).
Summary
Blackstone Mortgage Trust reported a Q2 2026 GAAP net loss of $81.2 million, driven by a $106 million increase in CECL reserves, while distributable earnings of $0.31 per share barely covered the $0.47 dividend. The stock trades near its 52-week low as credit stress in the office portfolio intensifies.
Key Events · Earnings and Guidance · BXMT
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Q2 GAAP Loss of $81.2M
Net loss attributable to Blackstone Mortgage Trust was $81.2 million, or $0.48 per share, compared to a $6.3 million loss in Q1 2026. The loss was driven by a $134.4 million increase in the current expected credit loss reserve.
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CECL Reserve Surges to $410M
CECL reserves increased by $106 million quarter-over-quarter to $410 million, including $219 million of asset-specific reserves. The increase reflects new loan impairments, primarily in office properties.
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Distributable EPS of $0.31 vs. $0.47 Dividend
Distributable earnings were $0.31 per share, down from $0.21 in Q1, and below the $0.47 quarterly dividend. Distributable EPS prior to realized gains and losses was $0.48, indicating the core earnings power still covers the dividend before credit costs.
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Book Value Declines to $19.31
Book value per share fell to $19.31 from $20.20 at March 31, 2026, reflecting the net loss and CECL reserve build. The stock trades at a 16% discount to book value.
Analysis · BXMT · Real Estate & Construction
Blackstone Mortgage Trust swung to a larger-than-expected Q2 loss as credit concerns forced a $106 million increase in loan loss reserves, pushing the total CECL reserve to $410 million. The GAAP loss of $0.48 per share masks a distributable earnings figure of $0.31, which still covers the $0.47 dividend but leaves little margin for error. The stock is already trading near its 52-week low, and the reserve build — concentrated in office loans — signals that management sees rising stress in the portfolio. On the positive side, the company deployed $1.4 billion into new investments, primarily in residential and industrial assets, and collected $1.2 billion in repayments, showing active portfolio rotation. The balance sheet remains liquid with $1.2 billion in cash and 88% non-mark-to-market debt, but the rising credit costs and book value decline to $19.31 per share will test investor confidence.
At the time of this filing, BXMT was trading at $16.16 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $2.8B. The 52-week trading range was $16.32 to $20.67. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.