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BXMT NYSE· Blackstone Mortgage Trust Inc.
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BXMT NYSE· Blackstone Mortgage Trust Inc.
Earnings report Q3 2023

BXMT Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

BXMT reported total income from loans and other investments of $519.3 million for the three months ended September 30, 2023, compared to $358.6 million in the same period last year. This represents a significant increase of 44.7% year-over-year. For the nine months ended September 30, 2023, total income from loans and other investments was $1.53 billion, compared to $876.7 million in the same period last year, reflecting a robust growth of 74.7%.

Strengths

BXMT's strong revenue growth in the latest quarter can be attributed to the increase in interest and related income from loans and other investments. The company's prudent financing options, such as issuing CLOs or single-asset securitizations, and syndicating senior loan participations, have contributed to the growth in interest income. BXMT's external management by BXMT Advisors L.L.C., a subsidiary of Blackstone Inc., provides the company with deep knowledge, experience, and information advantages, which have positively influenced its credit and underwriting process.

Challenges

Despite the strong revenue growth, BXMT faced challenges in the form of an increase in the current expected credit loss reserve. The company recorded a reserve increase of $96.9 million for the three months ended September 30, 2023, compared to a reserve increase of $12.2 million in the same period last year. This increase in credit loss reserve indicates potential risks associated with the company's loan portfolio.

Noteworthy

BXMT reported a gain on extinguishment of debt amounting to $4.5 million in the latest quarter. This gain represents a positive impact on the company's overall financial performance.

Summary

BXMT delivered a strong performance in the latest quarter, with a significant increase in revenue from loans and other investments. The company's prudent financing options and external management by BXMT Advisors L.L.C., a subsidiary of Blackstone Inc., have contributed to its revenue growth. However, BXMT faced challenges in the form of an increase in the current expected credit loss reserve, indicating potential risks associated with its loan portfolio. Overall, BXMT's strong revenue growth reflects its ability to navigate market cycles and leverage the expertise of its management.

Source documents

Form 10-Q  filed on Oct 25, 2023
75 pages scanned

Reference data

Company financials Q3 revenue 38.5M
Analyst estimates Q3 EPS missed by -0.17%
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