bxmt-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2026


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM ______ TO ______

Commission File Number: 001-14788

Blackstone Mortgage Trust, Inc.

(Exact name of Registrant as specified in its charter)


Maryland	94-6181186
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

345 Park Avenue

New York, New York 10154

(Address of principal executive offices)(Zip Code)

(212) 655-0220

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.01 per share	BXMT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934

during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing

requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of

Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such

files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an

emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth

company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new

or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of the registrant’s shares of class A common stock, par value $0.01 per share, outstanding as of July 23, 2026 was 168,543,591

PART I.

ITEM 1. FINANCIAL STATEMENTS

Blackstone Mortgage Trust, Inc.

Consolidated Balance Sheets (Unaudited)

(in thousands, except share data)


	June 30, 2026	December 31, 2025
Assets
Cash and cash equivalents	$432,833	$452,526
Loans receivable	17,334,730	18,069,134
Current expected credit loss reserve	(397,835)	(284,440)
Loans receivable, net	16,936,895	17,784,694
Owned real estate, net	1,296,989	1,134,975
Investments in unconsolidated entities (includes $136,158 and $111,010 at fair value as of June 30, 2026 and December 31, 2025, respectively)	322,060	217,488
Other assets	415,265	413,263
Total Assets	$19,404,042	$20,002,946
Liabilities and Equity
Secured debt, net	$8,708,944	$10,117,292
Securitized debt obligations, net	2,732,964	2,139,719
Asset-specific debt, net	971,305	997,746
Term loans, net	1,878,562	1,808,000
Senior secured notes, net	1,217,499	784,876
Convertible notes, net	265,310	264,745
Other liabilities	364,871	386,178
Total Liabilities	16,139,455	16,498,556
Commitments and contingencies (Note 21)
Equity
Class A common stock, $0.01 par value, 400,000,000 shares authorized, 168,543,591 and 168,259,023 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	1,685	1,683
Additional paid-in capital	5,440,390	5,430,542
Accumulated other comprehensive income	11,234	12,113
Accumulated deficit	(2,191,769)	(1,945,428)
Total Blackstone Mortgage Trust, Inc. stockholders’ equity	3,261,540	3,498,910
Non-controlling interests	3,047	5,480
Total Equity	3,264,587	3,504,390
Total Liabilities and Equity	$19,404,042	$20,002,946

Note: The consolidated balance sheets as of June 30, 2026 and December 31, 2025 include assets of consolidated variable

interest entities, or VIEs, that can only be used to settle obligations of each respective VIE, and liabilities of consolidated

VIEs for which creditors do not have recourse to Blackstone Mortgage Trust, Inc. As of June 30, 2026 and December 31,

2025, assets of the consolidated VIEs totaled $3.9 billion and $3.3 billion, respectively, and liabilities of the consolidated

VIEs totaled $2.8 billion and $2.2 billion, respectively. Refer to Note 19 for further discussion of the VIEs.

See accompanying notes to consolidated financial statements.

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share data)


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Income from loans and other investments
Interest and related income	$309,748	$359,537	$615,305	$691,594
Less: Interest and related expenses	227,182	264,727	447,918	506,960
Income from loans and other investments, net	82,566	94,810	167,387	184,634
Revenue from owned real estate	75,497	38,812	150,091	75,845
Total net revenue	158,063	133,622	317,478	260,479
Expenses
Management and incentive fees	14,641	17,036	29,454	34,271
General and administrative expenses	14,918	13,526	28,899	26,190
Expenses from owned real estate	81,440	47,796	163,415	94,098
Total expenses	110,999	78,358	221,768	154,559
Increase in current expected credit loss reserve	(134,403)	(45,593)	(189,458)	(95,098)
Income (loss) from unconsolidated entities	8,570	(2,015)	9,953	(2,889)
Net loss on disposition of owned real estate	—	—	(160)	—
Other income, net	3	231	7	321
(Loss) income before income taxes	(78,766)	7,887	(83,948)	8,254
Income tax provision	2,501	903	3,659	1,621
Net (loss) income	(81,267)	6,984	(87,607)	6,633
Net loss (income) attributable to non-controlling interests	45	(15)	88	(21)
Net (loss) income attributable to Blackstone Mortgage Trust, Inc.	$(81,222)	$6,969	$(87,519)	$6,612
Net (loss) income per share of common stock, basic and diluted	$(0.48)	$0.04	$(0.52)	$0.04
Weighted-average shares of common stock outstanding, basic and diluted	168,964,515	171,893,905	169,021,130	171,949,090

See accompanying notes to consolidated financial statements.

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Changes in Equity (Unaudited)

(in thousands)


	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, 2025	$1,683	$5,430,542	$12,113	$(1,945,428)	$3,498,910	$5,480	$3,504,390
Repurchases of class A common stock	(1)	(801)	—	—	(802)	—	(802)
Restricted class A common stock earned	5	6,484	—	—	6,489	—	6,489
Dividends reinvested	—	160	—	—	160	—	160
Deferred directors’ compensation	—	198	—	—	198	—	198
Net (loss) income	—	—	—	(6,297)	(6,297)	(43)	(6,340)
Other comprehensive income	—	—	(4,256)	—	(4,256)	—	(4,256)
Dividends declared on common stock and deferred stock units, $0.47 per share	—	—	—	(79,442)	(79,442)	—	(79,442)
Distributions to non-controlling interests	—	—	—	—	—	(2,345)	(2,345)
Balance at March 31, 2026	$1,687	$5,436,583	$7,857	$(2,031,167)	$3,414,960	$3,092	$3,418,052
Repurchases of class A common stock	(2)	(3,032)	—	—	(3,034)	—	(3,034)
Restricted class A common stock earned	—	6,476	—	—	6,476	—	6,476
Dividends reinvested	—	164	—	—	164	—	164
Deferred directors’ compensation	—	199	—	—	199	—	199
Net loss	—	—	—	(81,222)	(81,222)	(45)	(81,267)
Other comprehensive income	—	—	3,377	—	3,377	—	3,377
Dividends declared on common stock and deferred stock units, $0.47 per share	—	—	—	(79,380)	(79,380)	—	(79,380)
Balance at June 30, 2026	$1,685	$5,440,390	$11,234	$(2,191,769)	$3,261,540	$3,047	$3,264,587

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Changes in Equity (Unaudited)

(in thousands)


	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, 2024	$1,728	$5,511,053	$8,268	$(1,733,741)	$3,787,308	$6,881	$3,794,189
Shares of class A common stock issued, net	1	(1)	—	—	—	—	—
Repurchases of class A common stock	(18)	(31,629)	—	—	(31,647)	—	(31,647)
Restricted class A common stock earned	5	6,787	—	—	6,792	—	6,792
Dividends reinvested	—	213	—	—	213	—	213
Deferred directors’ compensation	—	173	—	—	173	—	173
Net (loss) income	—	—	—	(357)	(357)	6	(351)
Other comprehensive income	—	—	323	—	323	—	323
Dividends declared on common stock and deferred stock units, $0.47 per share	—	—	—	(80,837)	(80,837)	—	(80,837)
Distributions to non-controlling interests	—	—	—	—	—	(137)	(137)
Balance at March 31, 2025	$1,716	$5,486,596	$8,591	$(1,814,935)	$3,681,968	$6,750	$3,688,718
Repurchases of class A common stock	—	(39)	—	—	(39)	—	(39)
Restricted class A common stock earned	—	7,131	—	—	7,131	—	7,131
Dividends reinvested	—	160	—	—	160	—	160
Deferred directors’ compensation	—	172	—	—	172	—	172
Net income	—	—	—	6,969	6,969	15	6,984
Other comprehensive income	—	—	1,207	—	1,207	—	1,207
Dividends declared on common stock and deferred stock units, $0.47 per share	—	—	—	(80,796)	(80,796)	—	(80,796)
Balance at June 30, 2025	$1,716	$5,494,020	$9,798	$(1,888,762)	$3,616,772	$6,765	$3,623,537

See accompanying notes to consolidated financial statements.

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)


	Six Months Ended June 30,
	2026	2025
Cash flows from operating activities
Net (loss) income	$(87,607)	$6,633
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Non-cash compensation expense	13,362	14,268
Amortization of deferred fees on loans	(34,353)	(26,838)
Amortization of deferred financing costs and premiums/discounts on debt obligations	18,347	18,962
Payment-in-kind interest, net of interest received	(9,049)	(8,450)
Increase in current expected credit loss reserve	189,458	95,098
Straight-line rental income	(4,036)	(1,716)
Depreciation and amortization of owned real estate	41,197	32,918
Net loss on disposition of owned real estate	160	—
(Income) loss from unconsolidated entities	(9,953)	2,889
Distributions of earnings from unconsolidated entities	16,078	—
Unrealized loss on derivative financial instruments, net	3,288	3,024
Realized gain on derivative financial instruments, net	(10,764)	(10,634)
Changes in assets and liabilities, net
Other assets	112,315	27,313
Other liabilities	(3,503)	4,282
Net cash provided by operating activities	234,940	157,749
Cash flows from investing activities
Principal fundings of loans receivable	(1,449,551)	(3,440,030)
Principal collections, sales proceeds, and cost-recovery proceeds from loans receivable	1,794,016	3,408,253
Origination and other fees received on loans receivable	22,058	30,475
Investment in debt securities	(66,650)	—
Payments under derivative financial instruments	(48,412)	(127,982)
Receipts under derivative financial instruments	25,859	94,364
Collateral deposited under derivative agreements	(135,830)	(343,500)
Return of collateral deposited under derivative agreements	157,850	261,890
Investment in unconsolidated entities	(136,041)	(107,712)
Return of capital from unconsolidated entities	26,534	—
Proceeds from disposition of owned real estate	15,148	—
Capital expenditures on owned real estate	(18,958)	(6,846)
Net cash provided by (used in) investing activities	186,023	(231,088)

continued…

See accompanying notes to consolidated financial statements.

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)


	Six Months Ended June 30,
	2026	2025
Cash flows from financing activities
Borrowings under secured debt	$1,434,395	$2,525,536
Repayments under secured debt	(2,781,133)	(2,072,147)
Proceeds from issuance of securitized debt obligations	880,000	831,250
Repayments of securitized debt obligations	(275,561)	(169,926)
Borrowings under asset-specific debt	26,322	230,699
Repayments under asset-specific debt	(48,000)	(936,274)
Repayments of loan participations	—	(54,028)
Net proceeds from term loan borrowings	72,117	—
Repayments and repurchases of term loans	(4,810)	(3,690)
Proceeds from issuance of senior secured notes	450,000	—
Payment of deferred financing costs	(27,416)	(28,541)
Distributions to non-controlling interests	(2,345)	(137)
Dividends paid on class A common stock	(158,363)	(161,856)
Repurchases of class A common stock	(3,836)	(31,686)
Net cash (used in) provided by financing activities	(438,630)	129,200
Net (decrease) increase in cash and cash equivalents	(17,667)	55,861
Cash and cash equivalents at beginning of period	452,526	323,483
Effects of currency translation on cash and cash equivalents	(2,026)	8,705
Cash and cash equivalents at end of period	$432,833	$388,049
Supplemental disclosure of cash flows information
Payments of interest	$(426,789)	$(483,544)
Payments of income taxes	$(5,308)	$(1,748)
Supplemental disclosure of non-cash investing and financing activities
Dividends declared, not paid	$(79,215)	$(80,649)
Loan principal payments held by servicer, net	$3,874	$91,996
Transfer of senior loans to owned real estate	$180,416	$34,721
Assumption of other assets and liabilities related to owned real estate	$10,572	$10,323
Accrued capital expenditures on owned real estate	$312	$—

See accompanying notes to consolidated financial statements.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (Unaudited)

1. ORGANIZATION

References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us” or “our” refer to Blackstone Mortgage Trust,

Inc., a Maryland corporation, and its subsidiaries unless the context specifically requires otherwise.

Blackstone Mortgage Trust is a real estate finance company that originates, acquires, and manages senior loans and other

debt or credit-oriented investments collateralized by or relating to commercial real estate in North America, Europe, and

Australia. Our portfolio is composed primarily of senior loans secured by high-quality, institutional assets located in major

markets, and sponsored by experienced, well-capitalized real estate investment owners and operators. We finance our

investments in a variety of ways, including borrowing under secured credit facilities, issuing collateralized loan obligations,

or CLOs, other securitization transactions, syndicating senior loans and/or participations, and other forms of asset-level

financing, depending on our view of the most prudent financing option available for each of our investments. We are

externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a

real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” Our

principal executive offices are located at 345 Park Avenue, New York, New York 10154.

We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal

income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders

and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an

exclusion from registration under the Investment Company Act of 1940, as amended. We are organized as a holding

company and conduct our business primarily through our various subsidiaries.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting

principles generally accepted in the United States of America, or GAAP, for interim financial information and the

instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated financial statements, including the notes

thereto, are unaudited and exclude some of the disclosures required in audited financial statements. We believe we have

made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are

presented fairly and that estimates made in preparing our consolidated financial statements are reasonable and prudent. The

operating results presented for interim periods are not necessarily indicative of the results that may be expected for any

other interim period or for the entire year. The accompanying unaudited consolidated interim financial statements should

be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for

the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission, or the SEC.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with GAAP, and include, on a

consolidated basis, our accounts, the accounts of our wholly-owned subsidiaries, majority-owned subsidiaries, and variable

interest entities, or VIEs, of which we are the primary beneficiary. All intercompany balances and transactions have been

eliminated in consolidation.

Certain prior period amounts have been reclassified to conform to the current period presentation, including changes to the

presentation of certain income and expense captions and loans receivable disclosures.

Principles of Consolidation

We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate

all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do

not have an interest with the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk

for the entity to finance its activities without additional subordinated financial support from other parties. The entity that

consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities

that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the

obligation to absorb losses of the VIE that could be significant to the VIE. Entities that do not qualify as VIEs are generally

considered voting interest entities, or VOEs, and are evaluated for consolidation under the voting interest model. VOEs are

consolidated when we control the entity through a majority voting interest or other means.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

For consolidated entities, the non-controlling partner’s share of the assets, liabilities, and operations of each joint venture is

included in non-controlling interests as a component of total equity. The non-controlling partner’s interest is generally

computed as the joint venture partner’s ownership percentage.

When the requirements for consolidation are not met and we have significant influence over the operations of the entity, the

investment is accounted for under the equity method of accounting. Investments in unconsolidated entities for which we

have not elected the fair value option, or FVO, are initially recorded at cost and subsequently adjusted for our pro rata share

of net income, contributions and distributions. When we elect the FVO, we record our share of the net asset value of the

entity and any related unrealized gains and losses.

We review our investments in unconsolidated entities for impairment each quarter or when there is an event or change in

circumstances that indicates a decrease in value. If there is a decrease in value due to a series of operating losses or other

factors, the investment is evaluated to determine if the loss in value is considered other than temporary. Although a current

fair value below the carrying value of the investment is an indicator of impairment, we will only recognize an impairment

if the loss in value is determined to be an other than temporary impairment. If an impairment is determined to be other than

temporary, we will record an impairment charge sufficient to reduce the investment’s carrying value to its fair value, which

would result in a new cost basis. This new cost basis will be used for future periods when recording subsequent income or

loss and cannot be written up to a higher value as a result of increases in fair value.

In 2017, we entered into a joint venture with Walker & Dunlop Inc., or Walker & Dunlop, to originate, hold, and finance

multifamily bridge loans, which we refer to as our Multifamily Joint Venture. Pursuant to the terms of the agreements

governing the joint venture, Walker & Dunlop contributed 15% of the venture’s equity capital and we contributed 85%.

We consolidate our Multifamily Joint Venture as we have a controlling financial interest. The non-controlling interests

included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are owned

by Walker & Dunlop. A portion of our Multifamily Joint Venture’s consolidated equity and results of operations are

allocated to these non-controlling interests based on Walker & Dunlop’s pro rata ownership of our Multifamily Joint

Venture.

In 2024, we entered into a joint venture with a Blackstone-advised investment vehicle to invest in triple net lease

properties, which we refer to as our Net Lease Joint Venture. Our aggregate ownership interest in our Net Lease Joint

Venture was 75% as of June 30, 2026. We do not consolidate our Net Lease Joint Venture as we do not have a controlling

financial interest. Our investment in our Net Lease Joint Venture is accounted for under the equity method, and is recorded

in investments in unconsolidated entities on our consolidated balance sheets, and our pro rata share of income (loss) is

recorded in income (loss) from unconsolidated entities on our consolidated statements of operations.

In 2025, we entered into a joint venture with a Blackstone-advised investment vehicle to acquire portfolios of performing

commercial mortgage loans, which we refer to as our Bank Loan Portfolio Joint Venture. During 2025, our Bank Loan

Portfolio Joint Venture acquired two portfolios of performing commercial mortgage loans. Our aggregate ownership

interest in our Bank Loan Portfolio Joint Venture was 35% as of June 30, 2026. We do not consolidate our Bank Loan

Portfolio Joint Venture as we do not have a controlling financial interest. Our investment in our Bank Loan Portfolio Joint

Venture is accounted for using the FVO, and is recorded in investments in unconsolidated entities on our consolidated

balance sheets, and our pro rata share of any unrealized gains and losses is recorded in income (loss) from unconsolidated

entities on our consolidated statements of operations.

In the second quarter of 2026, we entered into a joint venture with an unaffiliated third-party, alongside a Blackstone-

advised investment vehicle, to acquire an initial $286.7 million portfolio of construction loans collateralized by single

family homes, and to continue to acquire and fund such loans in the future, which we refer to as our Homebuilder Finance

Joint Venture. Our aggregate ownership interest in our Homebuilder Finance Joint Venture was 45% as of June 30, 2026.

We do not consolidate our Homebuilder Finance Joint Venture as we do not have a controlling financial interest. Our

investment in our Homebuilder Finance Joint Venture is accounted for using the FVO, and is recorded in investments in

unconsolidated entities on our consolidated balance sheets, and our pro rata share of any unrealized gains and losses is

recorded in income (loss) from unconsolidated entities on our consolidated statements of operations.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and

assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of

the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting

period. Actual results may ultimately differ materially from those estimates.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Revenue Recognition

Interest income from our loans receivable portfolio is recognized over the life of each loan using the effective interest

method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these

investments is deferred and recorded over the term of the loan as an adjustment to yield. Income accrual is generally

suspended for loans at the earlier of the date at which payments become 90 days past due or when, in our opinion, recovery

of income and principal becomes doubtful. Interest received is then recorded as income or as a reduction in the amortized

cost basis, based on the specific facts and circumstances, until accrual is resumed when the loan becomes contractually

current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses

are deferred and recognized as a reduction to interest income; however, expenses related to loans we acquire are included

in general and administrative expenses as incurred.

The sources of revenue from our owned real estate assets, which is included in revenue from owned real estate on our

consolidated statements of operations, and the related revenue recognition policies are as follows:

Rental income primarily consists of base rent income arising from tenant leases at our office and multifamily properties.

We determine if an arrangement is a lease at contract inception, which is subject to the provisions of Financial Accounting

Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 842 “Leases.” Base rent is recognized on a

straight-line basis over the life of the lease, including any rent steps or abatement provisions. We begin to recognize

revenue upon the acquisition of the related property or when a tenant takes possession of the leased space.

Other operating income primarily consists of income from our hospitality properties and tenant reimbursement income.

Revenue from our hospitality properties consists primarily of room revenue and food and beverage revenue. Room revenue

is recognized when the related room is occupied and other hospitality revenue is recognized when the service is rendered.

Tenant reimbursement income primarily consists of amounts due from tenants for costs related to common area

maintenance, real estate taxes, and other recoverable costs included in lease agreements.

We evaluate the collectability of receivables related to rental revenue on an individual lease basis and exercise judgment in

assessing collectability considering the length of time a receivable has been outstanding, tenant credit-worthiness, payment

history, available information about the financial condition of the tenant, and current economic trends, among other factors.

Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue.

Cash and Cash Equivalents

Cash and cash equivalents represent cash held in banks and liquid investments with original maturities of three months or

less. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash

equivalents with high credit-quality institutions to minimize credit risk exposure. We have not experienced, and do not

expect, any losses on our cash or cash equivalents. As of both June 30, 2026 and December 31, 2025, we had no restricted

cash on our consolidated balance sheets.

Loans Receivable

We originate and purchase commercial real estate debt and related instruments generally to be held as long-term

investments at amortized cost.

Current Expected Credit Losses Reserve

The current expected credit loss, or CECL, reserve required under the ASC Topic 326 “Financial Instruments – Credit

Losses,” or ASC 326, reflects our current estimate of potential credit losses related to our loans and notes receivable

included in our consolidated balance sheets. Changes to the CECL reserves are recognized through net income on our

consolidated statements of operations. While ASC 326 does not require any particular method for determining the CECL

reserves, it does specify the reserves should be based on relevant information about past events, including historical loss

experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each

respective loan. In addition, other than a few narrow exceptions, ASC 326 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.

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 FASB Staff Q&A Topic 326, No. 1.

The WARM method requires us to reference historic loan loss data across a comparable data set and apply such loss rate to

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

each of our loans over their expected remaining term, taking into consideration expected economic conditions over the

relevant time frame. We apply the WARM method for the majority of our loan portfolio, which consists of loans that share

similar risk characteristics. In certain instances, for loans with unique risk characteristics, we may instead use a probability-

weighted model that considers the likelihood of default and expected loss given default for each such individual loan.

Application of the WARM method to estimate CECL reserves requires judgment, including (i) the appropriate historical

loan loss reference data, (ii) the expected timing and amount of future loan fundings and repayments, and (iii) the current

credit quality of our portfolio and our expectations of performance and market conditions over the relevant time period. 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 May 31, 2026. 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.

Our loans typically include commitments to fund incremental proceeds to our borrowers over the life of the loan. These

future funding commitments are also subject to the CECL model. The CECL reserve related to future loan fundings is

recorded as a component of other liabilities on our consolidated balance sheets. This CECL reserve is estimated using the

same process outlined above for our outstanding loan balances, and changes in this component of the CECL reserve will

similarly impact our consolidated net income. For both the funded and unfunded portions of our loans, we consider our

internal risk rating of each loan as the primary credit quality indicator underlying our assessment.

The CECL reserves are measured on a collective basis wherever similar risk characteristics exist within a pool of similar

assets. We have identified the following pools and measure the reserve for credit losses using the following methods:

•U.S. Loans: WARM method that incorporates a subset of historical loss data, expected weighted-average

remaining maturity of our loan pool, and an economic view.

•Non-U.S. Loans: WARM method that incorporates a subset of historical loss data, expected weighted-average

remaining maturity of our loan pool, and an economic view.

•Unique Loans: a probability of default and loss given default model, assessed on an individual basis. During the

three months ended June 30, 2026, we reassessed the pooling of certain loans previously classified within our

Unique Loans pool. Based on our reassessment, we determined that these loans share risk characteristics

materially similar to loans in our U.S. Loans and Non-U.S. Loans pools, as evaluated under our internal risk rating

framework. Accordingly, consistent with ASC 326, which requires assets with similar risk characteristics to be

evaluated on a collective basis wherever similar risk characteristics exist within a pool of similar assets, we have

reclassified these loans into our U.S. Loans and Non-U.S. Loans pools, as applicable based on the geographic

location of the underlying collateral. This reclassification did not have a material impact on our total CECL

reserves as of June 30, 2026.

•Impaired Loans: 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 to the book value of the respective loan. These valuations

require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing,

creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship,

actions of other lenders, and other factors deemed relevant by us. Actual losses, if any, could ultimately differ

materially from these estimates. We only expect to charge off the impairment losses in our consolidated financial

statements prepared in accordance with GAAP if and when such amounts are deemed non-recoverable. This is

generally at the time a loan is repaid or foreclosed, or the underlying collateral assets are otherwise consolidated.

However, non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts

due will not be collected.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Contractual Term and Unfunded Loan Commitments

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.

Credit Quality Indicator

Our risk rating is our primary credit quality indicator in assessing our current expected credit loss reserve. 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. Based on a 5-point

scale, our loans are rated “1” through “5,” from less risk to greater risk, relative to our loan portfolio in the aggregate,

which ratings are defined as follows:

1 -Very Low Risk

2 -Low Risk

3 -Medium Risk

4 -High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss.

5 -Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a

principal loss.

Estimation of Economic Conditions

In addition to the WARM method computations and probability-weighted models described above, our CECL reserves are

also 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 June 30, 2026.

Owned Real Estate

We may assume legal title, physical possession, or control of the collateral underlying a loan through a foreclosure, a deed-

in-lieu of foreclosure transaction, or a loan modification in which we receive an equity interest in and/or control over

decision-making at the property, resulting in us consolidating the real estate assets as VIEs. These real estate acquisitions

are classified as owned real estate, on our consolidated balance sheet and are initially recognized at fair value on the

acquisition date in accordance with the ASC Topic 805, “Business Combinations,” or ASC 805.

Upon acquisition of owned real estate assets, we assess the fair value of acquired tangible and intangible assets, which may

include land, buildings, tenant improvements, “above-market” and “below-market” leases, acquired in-place leases, other

identified intangible assets and assumed liabilities, as applicable, and allocate the fair value to the acquired assets and

assumed liabilities. We assess and consider fair value based on estimated cash flow projections that utilize discount and/or

capitalization rates that we deem appropriate, as well as other available market information. Estimates of future cash flows

are based on a number of factors, including the historical operating results, known and anticipated trends, and market and

economic conditions. We capitalize acquisition-related costs associated with asset acquisitions.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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, 15 years for land improvements, and 10 years for building and 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. Refer to Note 4

for further information.

Real estate assets are classified as held for sale in the period when they meet the criteria under the 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 June 30, 2026 and December 31, 2025, we had 14 and 12 owned real estate assets, respectively, that were all

classified as held for investment.

Agency Multifamily Lending Partnership

In 2024, we entered into an agreement with M&T Realty Capital Corporation, or MTRCC, a subsidiary of M&T Bank, that

allows our borrowers to access multifamily agency financing through MTRCC’s Fannie Mae DUS and Freddie Mac

Optigo lending platforms, or our Agency Multifamily Lending Partnership. 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.

Revenue Recognition

For loans that we refer to MTRCC for origination under both the Fannie Mae and Freddie Mac programs, we recognize our

allocable portion of origination, servicing, and other fees in other income when we have satisfied our performance

obligations in accordance with the ASC Topic 606, “Revenue from Contracts with Customers,” or ASC 606. Our

performance obligations are generally satisfied when the loan is referred by us to MTRCC and subsequently originated and

sold under the Fannie Mae and Freddie Mac programs. A portion of the fees recognized, such as servicing fees, are variable

and are reevaluated for collectibility on a recurring basis.

Loss-sharing Obligation

Pursuant to our agreement with MTRCC, we are subject to a loss-sharing obligation with respect to MTRCC’s obligation

to partially guarantee the performance of loans that they originate and sell under the Fannie Mae program. This loss-

sharing agreement requires us to fund a fixed amount of cash into a segregated account based on the amount MTRCC is

required to fund under the Fannie Mae program, with respect to loans we referred to MTRCC.

In addition, we will recognize a liability for these loss-sharing obligations. This liability will be initially recognized at fair

value with a corresponding expense at inception, and it will subsequently be amortized on a straight-line basis over the life

of the loss-sharing obligation. This liability is included within other liabilities in our consolidated balance sheets. As of

June 30, 2026, our maximum loss-sharing obligation associated with the loans referred by us to MTRCC under the Fannie

Mae program was $5.5 million, and we have recorded related liabilities of $32 thousand. There have been no losses

incurred as a result of the loss-sharing obligations.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Derivative Financial Instruments

We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets

at fair value.

On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign

operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received

or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair

value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all

derivatives other than those designated as non-designated hedges, we formally document our hedge relationships and

designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the

hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the

effectiveness of its hedged transaction.

On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected

to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. If it is determined

that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the

changes in fair value of the instrument are included in net income prospectively. Our net investment hedges are assessed

using a method based on changes in spot exchange rates. Gains and losses, representing hedge components excluded from

the assessment of effectiveness, are recognized in interest and related income on our consolidated statements of operations

over the contractual term of our net investment hedges on a systematic and rational basis, as documented at hedge inception

in accordance with our accounting policy election. All other changes in the fair value of our derivative instruments that

qualify as hedges are reported as a component of accumulated other comprehensive income (loss) on our consolidated

financial statements. Deferred gains and losses are reclassified out of accumulated other comprehensive income (loss) and

into net income in the same period or periods during which the hedged transaction affects earnings, and are presented in the

same line item as the earnings effect of the hedged item. For cash flow hedges, this is typically when the periodic swap

settlements are made, while for net investment hedges, this occurs when the hedged item is sold or substantially liquidated.

To the extent a derivative does not qualify for hedge accounting and is deemed a non-designated hedge, the changes in its

fair value are included in net income concurrently.

Proceeds or payments from periodic settlements of derivative instruments are classified on our consolidated statement of

cash flows in the same section as the underlying hedged item.

Debt Securities

We have elected the FVO for our debt securities, which are included in other assets on our consolidated balance sheets.

Refer to Note 6 for further information.

Secured Debt and Asset-Specific Debt

We record investments financed with secured debt or asset-specific debt as separate assets and the related borrowings

under any secured debt or asset-specific debt are recorded as separate liabilities on our consolidated balance sheets. Interest

income earned on the investments and interest expense incurred on the secured debt or asset-specific debt are reported

separately on our consolidated statements of operations.

Term Loans

We record our term loans as liabilities on our consolidated balance sheets. Where applicable, any issue discount or

transaction expenses are deferred and amortized through the maturity date of the term loans as additional non-cash interest

expense.

Senior Secured Notes

We record our senior secured notes as liabilities on our consolidated balance sheets. Where applicable, any issue discount

or transaction expenses are deferred and amortized through the maturity date of the senior secured notes as additional non-

cash interest expense.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Convertible Notes

Convertible note proceeds, unless issued with a substantial premium or an embedded conversion feature, are classified as

debt. Additionally, shares issuable under our convertible notes are included in diluted earnings per share in our

consolidated financial statements, if the effect is dilutive, using the if-converted method, regardless of settlement intent.

Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the

convertible notes as additional non-cash interest expense.

Deferred Financing Costs

The deferred financing costs that are included as a reduction in the net book value of the related liability on our

consolidated balance sheets include issuance and other costs related to our debt obligations. These costs are amortized as

interest expense using the effective interest method over the life of the related obligations.

Underwriting Commissions and Offering Costs

Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a

reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common

stock offering are expensed when incurred.

Fair Value Measurements

The ASC Topic 820, “Fair Value Measurements and Disclosures,” or ASC 820, defines fair value, establishes a framework

for measuring fair value, and requires certain disclosures about fair value measurements under GAAP. Specifically, this

guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer

of a liability in an orderly transaction between market participants at the measurement date.

ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in

measuring financial instruments. Market price observability is affected by a number of factors, including the type of

financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the

existence and transparency of transactions between market participants. Financial instruments with readily available quoted

prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment

used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs

used in the determination, as follows:

•Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical

financial instruments as of the reporting date.

•Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active

or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other

observable inputs, such as interest rates, yield curves, credit risks, and default rates.

•Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if

any, market activity for the financial instrument. These inputs require significant judgment or estimation by

management of third parties when determining fair value and generally represent anything that does not meet the

criteria of Levels 1 and 2.

Certain of our other assets are reported at fair value, as of quarter-end, either (i) on a recurring basis or (ii) on a

nonrecurring basis, as a result of impairment or other events. Our assets that are recorded at fair value are discussed further

in Note 18. We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on

assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from

third parties. For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our

estimation of the 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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

We have elected the FVO for two of our investments in unconsolidated entities, our Bank Loan Portfolio Joint Venture and

Homebuilder Finance Joint Venture, and therefore report these investments at fair value. Given the fair value of these

investments are not readily determinable, the net asset value of the entities are used as a practical expedient.

As of June 30, 2026, we had an aggregate $219.5 million asset-specific CECL reserve related to nine of our loans

receivable with an aggregate amortized cost basis of $695.2 million, net of cost-recovery proceeds. The CECL reserve was

recorded based on our estimation of the fair value of the loans' aggregate underlying collateral as of June 30, 2026. These

loans receivable are therefore measured at fair value on a nonrecurring basis using significant unobservable inputs, and are

classified as Level 3 assets in the fair value hierarchy. We estimated the fair value of the collateral underlying the loans

receivable by considering a variety of inputs including property performance, market data, and comparable sales, as

applicable. The significant unobservable inputs employed include the exit capitalization rate assumption used to forecast

the future sale price of the underlying real estate collateral, which ranged from 4.9% to 8.5%, and the unlevered discount

rate assumption, which ranged from 9.3% to 15.0%.

During the six months ended June 30, 2026, we acquired legal title to two owned real estate assets through foreclosure

transactions. At the time of each acquisition, we determined the fair value of the real estate assets based on a variety of

inputs, as applicable, including, but not limited to, estimated cash flow projections, leasing assumptions, required capital

expenditures, market data, and comparable sales. The owned real estate 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 employed include (i) the exit capitalization rate assumption used to forecast the future sale

price of the assets, which ranged from 5.8% to 6.5%, and (ii) the unlevered discount rate assumption, which ranged from

8.0% to 11.0%. Refer to Notes 4 and 18 for further 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 and other secured debt: The fair value of these instruments was estimated based on the rate at

which a similar credit facility would currently be priced. Other secured debt is included in other liabilities in our

consolidated balance sheets.

•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

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported

price.

•Convertible notes, net: Each series of the convertible notes is actively traded and their fair values were obtained

using quoted market prices.

Income Taxes

Our financial results generally do not reflect provisions for current or deferred income taxes on our REIT taxable income.

We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally

do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries. If we were

to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and

penalties. Refer to Note 16 for further information.

Stock-Based Compensation

Our stock-based compensation consists of awards issued to our Manager, certain individuals employed by an affiliate of

our Manager, and certain members of our board of directors that vest over the life of the awards, as well as deferred stock

units issued to certain members of our board of directors. Stock-based compensation expense is recognized for these

awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A

common stock. Refer to Note 17 for further information.

Earnings per Share

Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on (i) the net

earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units,

divided by (ii) the weighted-average number of shares of our class A common stock, including restricted class A common

stock and deferred stock units outstanding during the period. Our restricted class A common stock is considered a

participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these

restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or

losses.

Diluted earnings per share, or Diluted EPS, is determined using the if-converted method, and is based on (i) the net

earnings, adjusted for interest expense incurred on our convertible notes during the relevant period, net of incentive fees,

allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by (ii)

the weighted-average number of shares of our class A common stock, including restricted class A common stock, deferred

stock units, and shares of class A common stock issuable under our convertible notes. Refer to Note 14 for further

discussion of earnings per share.

Foreign Currency

In the normal course of business, we enter into transactions not denominated in United States, or U.S., dollars. Foreign

exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statements of

operations. In addition, we consolidate entities that have a non-U.S. dollar functional currency. Non-U.S. dollar-

denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and

income, expenses, gains, and losses are translated at the average exchange rate over the applicable period. Cumulative

translation adjustments arising from the translation of non-U.S. dollar-denominated subsidiaries are recorded in other

comprehensive income (loss).

Recent Accounting Pronouncements

In December 2025, the FASB issued Accounting Standards Update, or ASU, 2025-11, “Interim Reporting (Topic 270):

Narrow Scope Improvements,” which amends the guidance in ASC 270, Interim Reporting. The update enhances interim

disclosure requirements by clarifying the information that must be presented in quarterly periods, including improved

transparency regarding significant events, accounting policy updates, and material developments that occur between annual

reporting dates. ASU 2025-11 also aligns certain interim reporting requirements more closely with annual disclosure

objectives to promote consistency and comparability. The amendments are effective for interim periods beginning after

December 15, 2027, and early adoption is permitted. We have not early adopted ASU 2025-11 and do not expect the

adoption of ASU 2025-11 to have a material impact on our consolidated financial statements.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

In December 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting

Improvements,” which amends the guidance in ASC 815, Derivatives and Hedging. The update refines certain hedge

accounting requirements, including clarifications to the designation and documentation criteria for hedge relationships,

improvements to the assessment of hedge effectiveness, and enhanced disclosures intended to provide greater transparency

into an entity’s risk management activities involving derivatives. ASU 2025-09 is effective for annual periods beginning

after December 15, 2026, including interim periods within those annual periods, and early adoption is permitted. We have

not early adopted ASU 2025-09 and do not expect the adoption of ASU 2025-09 to have a material impact on our

consolidated financial statements.

In December 2025, the FASB issued ASU 2025-08, “Financial Instruments—Credit Losses (Topic 326): Purchased

Loans,” which clarifies the application of the CECL model to purchased loans, including purchased credit‑deteriorated

loans, and enhances related disclosure requirements. ASU 2025-08 is effective for annual reporting periods beginning after

December 15, 2026, including interim periods within those annual periods. Early adoption is permitted. We have not early

adopted ASU 2025-08 and do not expect the adoption of ASU 2025-08 to have a material impact on our consolidated

financial statements.

In July 2025, the FASB issued ASU 2025-05, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit

Losses for Accounts Receivable and Contract Assets,” which amends the guidance in ASC 326. This update provides a

practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract

assets that arise from transactions accounted for under ASC 606. The amendment notes that in developing reasonable and

supportable forecasts as part of estimating expected credit losses, all entities may elect a practical expedient that assumes

that current conditions as of the balance sheet date do not change for the remaining life of the asset. ASU 2025-05 is

effective for annual periods beginning after December 15, 2025, including interim periods within those annual periods, and

early adoption is permitted. We recognize revenue from our Agency Multifamily Lending Partnership and income from our

hospitality owned real estate assets pursuant to ASC 606. The adoption of ASU 2025-05 in 2026 did not have a material

impact on our consolidated financial statements.

In May 2025, the FASB issued ASU 2025-03, “Business Combinations (Topic 805) and Consolidation (Topic 810):

Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity,” which amends the guidance in ASC

805. This update clarifies the determination of the accounting acquirer in business combinations that are primarily effected

through the exchange of equity interests and involve the acquisition of a VIE. Specifically, entities are now required to

consider the factors outlined in ASC 805-10-55-12 through 55-15 when determining the accounting acquirer, rather than

defaulting to the primary beneficiary of the VIE as the accounting acquirer. ASU 2025-03 is effective for annual periods

beginning after December 15, 2026, including interim periods within those annual periods, and early adoption is permitted.

We have not early adopted ASU 2025-03 and do not expect the adoption of ASU 2025-03 to have a material impact on our

consolidated financial statements.

In November 2024, the FASB issued ASU 2024-04 “Debt with Conversion and Other Options (Subtopic 470-20): Induced

Conversions of Convertible Debt Instruments,” or ASU 2024-04. ASU 2024-04 clarifies the accounting treatment for

settlement of a convertible debt instrument as an induced conversion. ASU 2024-04 is effective on a prospective basis,

with the option for retrospective application, for fiscal years beginning after December 15, 2025. The adoption of ASU

2024-04 in 2026 did not have a material impact on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03 “Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses,” or ASU 2024-03. ASU 2024-03 requires disclosures in the notes to the

financial statements on specified information about certain costs and expenses for each interim and annual reporting period.

ASU 2024-03 is effective on either a prospective basis, with the option for retrospective application, for annual periods

beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027, and

early adoption is permitted. We have not early adopted ASU 2024-03 and do not expect the adoption of ASU 2024-03 to

have a material impact on our consolidated financial statements.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

3. LOANS RECEIVABLE, NET

The following table details overall statistics for our loans receivable portfolio ($ in thousands):


	June 30, 2026	December 31, 2025
Number of loans	133	131
Principal balance	$17,409,208	$18,154,768
Net book value	$16,936,895	$17,784,694
Unfunded loan commitments(1)	$1,107,729	$1,185,004
Weighted-average cash coupon(2)	+ 3.13%	+ 3.19%
Weighted-average all-in yield(2)	+ 3.35%	+ 3.39%
Weighted-average maximum maturity (years)(3)	2.8	2.5

(1)Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real

estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will

generally be funded over the term of each loan, subject in certain cases to an expiration date.

(2)The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark

rates, which include SOFR, SONIA, EURIBOR, CORRA, and other indices, as applicable to each loan. As of both

June 30, 2026 and December 31, 2025, 97% of our loans by principal balance earned a floating rate of interest,

primarily indexed to SOFR. The remaining 3% of our loans by principal balance earned a fixed rate of interest. In

addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan

origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes loans accounted for under the

cost-recovery and nonaccrual methods, if any.

(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

June 30, 2026, 47% of our loans by principal balance were subject to yield maintenance or other prepayment

restrictions and 53% were open to repayment by the borrower without penalty. As of December 31, 2025, 40% of

our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 60% were

open to repayment by the borrower without penalty.

The following table details the index rate floors for our loans receivable portfolio as of June 30, 2026 ($ in thousands):


	Loans Receivable Principal Balance
Index Rate Floors	USD	Non-USD(1)	Total
Fixed Rate	$398,405	$135,273	$533,678
0.00% or no floor(2)	1,060,787	3,701,597	4,762,384
0.01% to 1.00% floor	1,314,333	1,286,448	2,600,781
1.01% to 2.00% floor	856,529	1,651,960	2,508,489
2.01% to 3.00% floor	5,754,709	366,401	6,121,110
3.01% or more floor	608,673	274,093	882,766
Total(3)	$9,993,436	$7,415,772	$17,409,208

(1)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, and Canadian Dollar currencies.

(2)Includes all impaired loans.

(3)As of June 30, 2026, the weighted-average index rate floor of our floating-rate loans receivable principal balance

was 1.53%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was

2.11%.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The tables below detail the property type and geographic distribution of the properties securing the loans in our loans

receivable portfolio ($ in thousands):


June 30, 2026
Property Type	Number of Loans	Net Book Value	Net Loan Exposure(1)	Net Loan Exposure Percentage of Portfolio
Industrial	24	$4,503,186	$4,195,901	26%
Multifamily	46	4,161,897	3,994,054	25
Office	34	4,461,290	3,967,961	25
Hospitality	10	1,743,045	1,656,740	10
Retail	8	822,936	744,291	5
Self-storage	3	642,244	479,964	3
Life Sciences / Studio	4	284,772	266,408	2
Other	4	715,360	713,113	4
Total loans receivable	133	$17,334,730	$16,018,432	100%
CECL reserve		(397,835)
Loans receivable, net		$16,936,895

Geographic Location	Number of Loans	Net Book Value	Net Loan Exposure(1)	Net Loan Exposure Percentage of Portfolio
United States
Sunbelt	47	$4,771,723	$3,980,482	25%
Northeast	19	2,132,423	2,028,575	13
West	23	1,858,650	1,774,545	11
Midwest	6	637,152	506,250	3
Northwest	3	476,987	472,722	3
Subtotal	98	9,876,935	8,762,574	55
International
United Kingdom	16	2,680,430	2,667,644	17
Australia	4	1,181,561	1,175,243	7
Ireland	3	1,000,931	990,480	6
Spain	2	657,798	654,260	4
Sweden	1	477,022	475,327	3
Canada	1	440,265	278,678	2
Other Europe	7	958,513	953,482	6
Other International	1	61,275	60,744	—
Subtotal	35	7,457,795	7,255,858	45
Total loans receivable	133	$17,334,730	$16,018,432	100%
CECL reserve		(397,835)
Loans receivable, net		$16,936,895

(1)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of June 30, 2026,

which is our principal balance net of (i) $972.6 million of asset-specific debt, (ii) $20.3 million of cost-recovery

proceeds, and (iii) our total loans receivable CECL reserve of $397.8 million. Our asset-specific debt is structurally

non-recourse and term-matched to the corresponding collateral loans.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)


December 31, 2025
Property Type	Number of Loans	Net Book Value	Net Loan Exposure(1)	Net Loan Exposure Percentage of Portfolio
Office	37	$4,879,422	$4,556,980	27%
Multifamily	46	4,457,767	4,305,534	26
Industrial	21	4,458,487	4,114,141	24
Hospitality	12	1,940,693	1,827,133	11
Retail	6	674,612	596,204	3
Self-storage	3	659,515	492,376	3
Life Sciences/Studio	4	284,079	277,373	2
Other	2	714,559	676,293	4
Total loans receivable	131	$18,069,134	$16,846,034	100%
CECL reserve		(284,440)
Loans receivable, net		$17,784,694

Geographic Location	Number of Loans	Net Book Value	Net Loan Exposure(1)	Net Loan Exposure Percentage of Portfolio
United States
Sunbelt	45	$4,715,039	$3,918,928	23%
West	23	1,963,032	1,872,531	11
Northeast	17	1,893,877	1,800,387	11
Midwest	6	619,726	609,433	4
Northwest	3	457,215	454,507	3
Subtotal	94	9,648,889	8,655,786	52
International
United Kingdom	19	3,595,424	3,582,983	21
Ireland	3	1,141,770	1,135,749	7
Australia	4	1,104,765	1,110,648	7
Spain	2	684,109	638,112	4
Sweden	1	502,124	500,917	3
Canada	1	455,407	288,504	2
Other Europe	6	875,579	872,527	4
Other International	1	61,067	60,808	—
Subtotal	37	8,420,245	8,190,248	48
Total loans receivable	131	$18,069,134	$16,846,034	100%
CECL reserve		(284,440)
Loans receivable, net		$17,784,694

(1)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31,

2025, which is our principal balance net of (i) $999.8 million of asset-specific debt, (ii) $24.5 million of cost-

recovery proceeds, and (iii) our total loans receivable CECL reserve of $284.4 million. See Note 2 for further

discussion of loan participations sold. Our asset-specific debt is structurally non-recourse and term-matched to the

corresponding collateral loans.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Loan Risk Ratings

As further described in Note 2, we evaluate our loan portfolio on a quarterly basis. In conjunction with our quarterly loan

portfolio review, we assess the risk factors of each loan, and assign a risk rating based on several factors. Factors

considered in the assessment include, but are not limited to, risk of loss, origination LTV, debt yield, collateral

performance, structure, exit plan, and sponsorship. Loans are rated “1” (less risk) through “5” (greater risk), which ratings

are defined in Note 2.

The following tables allocate the net book value and net loan exposure balances based on our internal risk ratings ($ in

thousands):


	June 30, 2026
Risk Rating	Number of Loans	Net Book Value	Net Loan Exposure(1)
1	1	$60,896	$61,025
2	21	2,884,735	2,715,318
3	85	11,667,474	10,798,610
4	17	2,026,473	1,969,169
5	9	695,152	474,310
Total loans receivable	133	$17,334,730	$16,018,432
CECL reserve		(397,835)
Loans receivable, net		$16,936,895

	December 31, 2025
Risk Rating	Number of Loans	Net Book Value	Net Loan Exposure(1)
1	3	$303,971	$302,564
2	20	2,875,870	2,704,222
3	85	11,907,947	11,045,913
4	17	2,806,758	2,705,706
5	6	174,588	87,629
Total loans receivable	131	$18,069,134	$16,846,034
CECL reserve		(284,440)
Loans receivable, net		$17,784,694

(1)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of June 30, 2026,

which is our principal balance net of (i) $972.6 million of asset-specific debt, (ii) $20.3 million of cost-recovery

proceeds, and (iii) our total loans receivable CECL reserve of $397.8 million. Our net loan exposure as of

December 31, 2025 is our principal balance net of (i) $999.8 million of asset-specific debt, (ii) $24.5 million of cost-

recovery proceeds, and (iii) our total loans receivable CECL reserve of $284.4 million. Our asset-specific debt is

structurally non-recourse and term-matched to the corresponding collateral loans.

Our loan portfolio had a weighted-average risk rating of 3.0, based on net loan exposure, as of both June 30, 2026 and

December 31, 2025.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Current Expected Credit Loss Reserve

The CECL reserves required under GAAP reflect our current estimate of potential credit losses related to the loans included

in our consolidated balance sheets. Refer to Note 2 for further discussion of our CECL reserves. The following table

presents the activity in our loans receivable CECL reserve by investment pool for the three months ended June 30, 2026

and 2025 ($ in thousands):


	U.S. Loans(1)	Non-U.S. Loans	Unique Loans	Impaired Loans	Total
Loans Receivable, Net
CECL reserves as of December 31, 2025	$101,180	$45,470	$50,465	$87,325	$284,440
Increase (decrease) in CECL reserves	15,673	(6,305)	182	44,051	53,601
Charge-offs of CECL reserves	—	—	—	(46,451)	(46,451)
CECL reserves as of March 31, 2026	$116,853	$39,165	$50,647	$84,925	$291,590
Increase (decrease) in CECL reserves	980	21,358	(50,647)	163,174	134,865
Charge-offs of CECL reserves	—	—	—	(28,620)	(28,620)
CECL reserves as of June 30, 2026	$117,833	$60,523	$—	$219,479	$397,835

CECL reserves as of December 31, 2024	$80,057	$26,141	$47,087	$580,651	$733,936
Increase in CECL reserves	17,604	13,796	1,477	16,552	49,429
Charge-offs of CECL reserves	—	—	—	(41,824)	(41,824)
CECL reserves as of March 31, 2025	$97,661	$39,937	$48,564	$555,379	$741,541
(Decrease) increase in CECL reserves	(6,759)	(1,568)	4,249	48,445	44,367
Charge-offs of CECL reserves	—	—	—	(45,057)	(45,057)
CECL reserves as of June 30, 2025	$90,902	$38,369	$52,813	$558,767	$740,851

(1)Includes one U.S. dollar-denominated loan that is located in Bermuda.

During the three months ended June 30, 2026, we recorded a net increase of $106.2 million in the CECL reserves against

our loans receivable portfolio, primarily driven by a $134.6 million increase in our asset-specific CECL reserve, partially

offset by a $28.3 million decrease in our general CECL reserve, bringing our total loans receivable CECL reserves to

$397.8 million as of June 30, 2026. The increase in our asset-specific reserve was driven by three additional loans with an

aggregate amortized cost basis of $502.0 million that were impaired during the three months ended June 30, 2026, of which

two are secured by office properties, and the other is secured by an office/mixed-use asset. The office sector recovery in

certain markets has continued to lag other commercial real estate sectors, which has, in certain cases, extended business

plans on transitional properties and impacted their performance, affecting some borrowers’ willingness and ability to

continue to support their assets. Impairments are determined individually as a result of changes in specific credit quality

factors for such loans. These factors include, among others, (i) the performance of the underlying property collateral, (ii)

discussions with the borrower, (iii) borrower events of default, and (iv) other facts and circumstances affecting the

borrower’s willingness and ability to satisfy its contractual obligations under the terms of the loan. During the three months

ended June 30, 2026, we recorded $7.1 million of interest income on these loans. Upon determining that the three loans

were impaired, the income accrual was suspended, as the recovery of interest income and principal was doubtful. The

increase in our asset-specific reserve was partially offset by charge-offs of $28.6 million primarily related to the resolution

of one previously impaired loan as a result of our acquisition of title through a foreclosure of a multifamily collateral

property located in Dallas, TX, which is now included on our consolidated balance sheet as an owned real estate asset. The

decrease in our general CECL reserve was primarily driven by changes in risk ratings, and a decrease in our loans

receivable balance, partially offset by new loan originations and an increase in the historical loss rate used in reserve

calculations related to the additional CECL reserve charge-offs.

As of June 30, 2026, we had an aggregate $219.5 million asset-specific CECL reserve related to nine of our loans

receivable, with a total amortized cost basis of $695.2 million, net of cost-recovery proceeds. Impairments are each

determined individually as a result of changes in the specific credit quality factors for each such loan. 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 asset-specific CECL reserve was recorded based on our estimation of the fair value of each loan’s underlying

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

collateral as of June 30, 2026.

No income was recorded on our impaired loans subsequent to determining that such loans were impaired. During the three

months ended June 30, 2026, we did not receive any cash proceeds from such loans that would have been applied as a

reduction to the amortized cost basis of each respective loan.

As of June 30, 2026, one of our performing loans with an amortized cost basis of $148.8 million was in payment default,

was less than 90 days past due on its interest payment, and had a risk rating of “4.” This loan was not impaired as of June

30, 2026 as we expect to fully recover all contractual principal and interest amounts due under the loan agreement. 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.

Our primary credit quality indicator is our risk ratings, which are further discussed above. The following tables present the

net book value of our loan portfolio as of June 30, 2026 and December 31, 2025, respectively, by year of origination and

risk rating ($ in thousands):


	Net Book Value of Loans Receivable by Year of Origination(1)
	As of June 30, 2026
Risk Rating	2026	2025	2024	2023	2022	Prior	Total
1	$—	$60,896	$—	$—	$—	$—	$60,896
2	—	909,370	61,275	—	238,535	1,675,555	2,884,735
3	1,241,733	4,058,785	276,302	—	2,452,411	3,638,243	11,667,474
4	—	148,775	—	—	151,863	1,725,835	2,026,473
5	—	—	—	—	92,116	603,036	695,152
Total loans receivable	$1,241,733	$5,177,826	$337,577	$—	$2,934,925	$7,642,669	$17,334,730
CECL reserve							(397,835)
Loans receivable, net							$16,936,895

Gross charge-offs(2)	—	—	—	—	(29,380)	(45,691)	$(75,071)


	Net Book Value of Loans Receivable by Year of Origination(1)
	As of December 31, 2025
Risk Rating	2025	2024	2023	2022	2021	Prior	Total
1	$—	$—	$—	$151,674	$98,329	$53,968	$303,971
2	792,802	61,068	—	586,066	1,265,922	170,012	2,875,870
3	4,335,677	$274,866	—	2,592,446	2,869,787	1,835,171	11,907,947
4	—	—	—	367,804	582,317	1,856,637	2,806,758
5	—	—	—	—	31,700	142,888	174,588
Total loans receivable	$5,128,479	$335,934	$—	$3,697,990	$4,848,055	$4,058,676	$18,069,134
CECL reserve							(284,440)
Loans receivable, net							$17,784,694

Gross charge-offs(2)	—	—	—	(54,404)	(214,796)	(286,916)	$(556,116)

(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 six months ended June 30, 2026 and year ended

December 31, 2025, respectively.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Loan Modifications Pursuant to ASC 326

During the twelve months ended June 30, 2026, we entered into one loan modification that requires disclosure pursuant to

ASC 326. This loan was collateralized by a life sciences/studio asset.

The loan modification included a term extension of 4.3 years, the interest rate decreased by 3.56%, and the loan was

bifurcated into a separate senior loan and subordinate loan. We are accruing all of the interest on the senior loan that is

paying current, and deferring interest on the subordinate loan, which is paid-in-kind. As of June 30, 2026, the aggregate

amortized cost basis of these loans was $122.3 million, or 0.7% of our aggregate loans receivable portfolio, with an

aggregate $34.7 million of unfunded commitments. These loans were in compliance with their modified contractual terms

as of June 30, 2026.

This loan had a risk rating of “5” at the time of modification. The modification resulted in the bifurcation of the loan into

separate senior and subordinate loans, or two loans in aggregate. As of June 30, 2026, the newly bifurcated senior loan had

a risk rating of “4,” and the newly bifurcated subordinate loan had a risk rating of “5,” as collection of amounts due under

the loan terms was doubtful.

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” are evaluated individually for 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 June 30, 2026, no income was recorded on our loans

subsequent to determining that such loans were impaired and risk rated “5.”

4. OWNED REAL ESTATE, NET

As of June 30, 2026 and December 31, 2025, we had 14 and 12 owned real estate assets, respectively. During the six

months ended June 30, 2026, we acquired two owned real estate assets through foreclosure transactions with an aggregate

acquisition price of $191.0 million. We allocated $128.8 million to building and building improvements, $51.6 million to

land and land improvements, $4.8 million to acquired intangible assets, and $5.8 million to other components of the

purchase price, including cash held in reserves at the time of acquisition. In aggregate, we charged off $76.2 million of

CECL reserves relating to the loans that had previously been secured by these assets, as the loans’ aggregate carrying value

of $267.2 million at the time of the acquisitions exceeded the acquisition date fair value noted above. See Note 2 for further

discussion of owned real estate assets.

Acquisitions

The acquisition of two owned real estate assets during the six months ended June 30, 2026 were accounted for as asset

acquisitions under ASC 805, and we recognized the properties as owned real estate assets held for investment. The

following table presents the owned real estate assets that were acquired during the six months ended June 30, 2026 ($ in

thousands):


Acquisition Date	Location	Property Type	Acquisition Date Fair Value
March 2026	San Francisco, CA	Hospitality	$41,082
June 2026	Dallas, TX	Multifamily	149,906
			$190,988

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Dispositions

During the six months ended June 30, 2026, we completed a partial sale of one owned real estate asset, a multifamily

property located in San Antonio, TX. The carrying value of the asset at the time of disposition was $15.3 million, and we

received net cash proceeds of $15.1 million, resulting in a net loss of $0.2 million, which is included in net loss on

disposition of owned real estate on our consolidated statements of operations.

The following table presents the assets and liabilities related to owned real estate held for investment included in our

consolidated balance sheets ($ in thousands):


	June 30, 2026	December 31, 2025
Assets
Building and building improvements	$844,474	$708,097
Land and land improvements	507,719	461,585
Total	$1,352,193	$1,169,682
Less: accumulated depreciation	(55,204)	(34,707)
Owned real estate, net	$1,296,989	$1,134,975

Intangible real estate assets	$163,108	$161,690
Less: accumulated amortization	(62,191)	(44,601)
Intangible real estate assets, net(1)	$100,917	$117,089

Liabilities
Intangible real estate liabilities	$3,985	$3,985
Less: accumulated amortization	(1,072)	(570)
Intangible real estate liabilities, net(2)	$2,913	$3,415

(1)Included within other assets on our consolidated balance sheets. Refer to Note 6 for further information.

(2)Included within other liabilities on our consolidated balance sheets. Refer to Note 6 for further information.

Revenue and expenses from owned real estate consisted of the following ($ in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Rental revenue	$24,024	$16,207	$48,198	$30,541
Hospitality revenue	42,802	16,643	87,263	33,679
Other operating revenue	8,671	5,962	14,630	11,625
Revenue from owned real estate	$75,497	$38,812	$150,091	$75,845

Operating expense	$61,128	$31,089	$122,218	$61,177
Depreciation and amortization expense	20,312	16,707	41,197	32,921
Total expenses from owned real estate	$81,440	$47,796	$163,415	$94,098

Loss from owned real estate	$(5,943)	$(8,984)	$(13,324)	$(18,253)

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

5. INVESTMENTS IN UNCONSOLIDATED ENTITIES

As of June 30, 2026, we hold certain investments in unconsolidated entities that are accounted for under the equity method

of accounting or the FVO, as our ownership interest in each entity does not meet the requirements for consolidation. Refer

to Note 2 for further details.

The following tables detail our investments in unconsolidated entities ($ in thousands):


	June 30, 2026
Investments in Unconsolidated Entities	Number of Assets	Ownership Interest	Book Value
Unconsolidated entities carried at historical cost
Net Lease Joint Venture	306(1)	75%	$185,902
Total unconsolidated entities carried at historical cost	306		185,902
Unconsolidated entities carried at fair value
Bank Loan Portfolio Joint Venture	457(2)	35%(3)	99,834
Homebuilder Finance Joint Venture	33(2)	45%	36,324
Total unconsolidated entities carried at fair value	490		136,158
Total	796		$322,060


	December 31, 2025
Investments in Unconsolidated Entities	Number of Assets	Ownership Interest	Book Value
Unconsolidated entities carried at historical cost
Net Lease Joint Venture	178(1)	75%	$106,478
Total unconsolidated entities carried at historical cost	178		106,478
Unconsolidated entities carried at fair value:
Bank Loan Portfolio Joint Venture	533(2)	35%(3)	111,010
Total unconsolidated entities carried at fair value:	533		111,010
Total	711		$217,488

(1)The number of assets represents the number of commercial real estate properties.

(2)The number of assets represents the number of commercial mortgage loans held by each entity.

(3)Represents our aggregate ownership interest in our Bank Loan Portfolio Joint Venture, which owns an initial

portfolio of commercial mortgage loans acquired during the three months ended June 30, 2025, in which we hold a

29% interest, and an additional portfolio acquired during the three months ended September 30, 2025, in which we

hold a 50% interest.

The following table details the activity related to our investments in unconsolidated entities during the six months ended

June 30, 2026 ($ in thousands):


	Net Lease Joint Venture	Bank Loan Portfolio Joint Venture		Homebuilder Finance Joint Venture	Total
Balance as of December 31, 2025	$106,478	$111,010		$—	$217,488
Contributions	99,998	—	—	36,043	136,041
Distributions	(22,413)	(20,199)		—	(42,612)
Income from unconsolidated entities(1)	649	9,023		281	9,953
Accumulated other comprehensive income	1,190	—		—	1,190
Balance as of June 30, 2026	$185,902	$99,834		$36,324	$322,060

(1)Includes our share of non-cash items such as (i) depreciation and amortization, and (ii) unrealized gains or losses

recorded by unconsolidated entities.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Our Net Lease Joint Venture and Bank Loan Portfolio Joint Venture have each entered into and may continue to enter into

derivative agreements where we would be required to make payment for periodic or final settlement of derivative contracts

if either our Net Lease Joint Venture or Bank Loan Portfolio Joint Venture, as applicable, is unable to fulfill its respective

obligations.

6. OTHER ASSETS AND LIABILITIES

Other Assets

The following table details the components of our other assets ($ in thousands):


	June 30, 2026	December 31, 2025
Accrued interest receivable	$136,161	$132,975
Real estate intangible assets, net	100,917	117,089
Debt securities, at fair value(1)	66,310	—
Other real estate assets	51,890	42,153
Derivative assets	47,908	10,492
Accounts receivable and other assets(2)	5,883	56,848
Collateral deposited under derivative agreements	3,280	25,300
Loan portfolio payments held by servicer(3)	2,288	27,374
Prepaid expenses	628	1,032
Total	$415,265	$413,263

(1)Represents an investment in a significant risk transfer, or SRT, transaction with a UK financial institution structured

as a credit-linked note, or the UK Bank Loan Portfolio SRT. The investment constitutes the first-loss tranche of a

reference portfolio comprising a diversified, granular portfolio of low-leverage commercial real estate loans held by

the UK financial institution. The SRT investment earns a floating-rate cash coupon of SONIA + 7.00%, which is

recognized in interest and related income in our consolidated statements of operations. The investment is recorded at

fair value, with changes in fair value recognized in other income, net in our consolidated statements of operations.

As of June 30, 2026, no realized credit losses have been incurred with respect to the underlying reference loan

portfolio.

(2)Includes $3.6 million and $55.5 million as of June 30, 2026 and December 31, 2025, respectively, of cash collateral

held by our CLOs that was subsequently remitted by the trustee to repay a portion of the outstanding senior CLO

securities, or that was subsequently reinvested by purchasing additional collateral into our CLOs.

(3)Primarily represents loan principal repayments held by our third-party loan servicers as of the balance sheet date that

were remitted to us during the subsequent remittance cycle.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Other Liabilities

The following table details the components of our other liabilities ($ in thousands):


	June 30, 2026	December 31, 2025
Other real estate liabilities	$133,697	$127,703
Accrued dividends payable	79,215	79,081
Accrued interest payable	60,100	58,871
Other secured debt(1)	38,386	39,475
Accrued management fees payable	14,641	16,434
Accounts payable and other liabilities	13,889	14,653
Current expected credit loss reserves for unfunded loan commitments(2)	12,610	11,617
Derivative liabilities	10,351	26,596
Debt repayments pending servicer remittance(3)	1,982	11,748
Total	$364,871	$386,178

(1)Represents financing on our retained investment in the European Loan Securitization. Refer to Note 8 for further

information.

(2)Represents the CECL reserve related to our unfunded loan commitments.

(3)Represents pending transfers from our third-party loan servicer that were remitted to our banking counterparties

during the subsequent remittance cycle.

Current Expected Credit Loss Reserves for Unfunded Loan Commitments

As of June 30, 2026, we had aggregate unfunded commitments of $1.1 billion related to 53 loans. The expected credit

losses over the contractual period of our loans are impacted by our obligations 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 21 for further discussion of our unfunded loan commitments. During the three months ended

June 30, 2026, we recorded a decrease in the CECL reserves related to our unfunded loan commitments of $0.5 million,

and during the six months ended June 30, 2026, we recorded an increase in the CECL reserves related to our unfunded loan

commitments of $1.0 million, bringing our total unfunded loan commitments CECL reserve to $12.6 million as of June 30,

2026. During the three and six months ended June 30, 2025, we recorded increases in the CECL reserves related to our

unfunded loan commitments of $1.2 million and $1.3 million, respectively, bringing our total unfunded loan commitments

CECL reserve to $11.7 million as of June 30, 2025.

7. SECURED DEBT, NET

Our secured debt represents borrowings under our secured credit facilities. During the six months ended June 30, 2026, we

closed $1.0 billion of new borrowings against $1.5 billion of collateral assets.

The following table details our secured debt ($ in thousands):


	Secured Debt Borrowings Outstanding
	June 30, 2026	December 31, 2025
Secured credit facilities	$8,717,351	$10,125,839
Deferred financing costs(1)	(8,407)	(8,547)
Net book value of secured debt	$8,708,944	$10,117,292

(1)Costs incurred in connection with our secured debt are recorded on our consolidated balance sheets when incurred

and recognized as a component of interest expense over the life of each related facility.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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 generally structured

to provide currency, index, and term-matched financing without capital markets-based mark-to-market provisions. Our

credit facilities are diversified across 16 counterparties, primarily consisting of top global financial institutions to minimize

our counterparty risk exposure.

The following table details our secured credit facilities as of June 30, 2026 ($ in thousands):


								Recourse Limitation
Currency	Lenders(1)	Borrowings	Wtd. Avg. Maturity(2)	Wtd. Avg. All-in Cost(3)(4)(5)	Loan Count	Collateral(6)	Wtd. Avg. All-in Yield(3)(4)	Wtd. Avg.	Range
USD	14	$3,668,157	May 2028	+1.74%	78	$6,042,859	+2.76%	36%	25% - 100%
GBP	6	1,906,500	Mar 2029	+1.68%	14	2,647,180	+3.17%	25%	25%
EUR	6	1,618,548	Feb 2030	+1.64%	13	2,380,828	+2.99%	37%	15% - 100%
Others(7)	4	1,524,146	May 2029	+2.21%	6	1,910,983	+4.34%	25%	25%
Total	16	$8,717,351	Jan 2029	+1.79%	111	$12,981,850	+3.16%	32%	25% - 100%

(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)The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include

SOFR, SONIA, EURIBOR, CORRA, and other indices as applicable.

(4)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 owned real estate assets.

(5)Represents the weighted-average all-in cost as of June 30, 2026 and is not necessarily indicative of the spread

applicable to recent or future borrowings.

(6)Represents the principal balance of the collateral loan assets and the carrying value of the collateral owned real

estate assets.

(7)Includes Australian Dollar, Canadian Dollar, and Swedish Krona 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.

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 June 30, 2026, there was an

aggregate $807.5 million available to be drawn at our discretion under our credit facilities.

Financial Covenants

As of June 30, 2026, we are subject to the following financial covenants related to our secured debt and secured debt of our

unconsolidated entities: (i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to fixed

charges, as defined in the agreements, shall be not less than 1.3 to 1.0; (ii) our tangible net worth, as defined in the

agreements, shall not be less than $2.8 billion as of each measurement date plus 75% to 85% of the net cash proceeds of

future equity issuances subsequent to June 30, 2026; (iii) cash liquidity shall not be less than the greater of (x) $10.0

million or (y) no more than 5% of our recourse indebtedness; and (iv) our indebtedness shall not exceed 83.33% of our

total assets. As of June 30, 2026 and December 31, 2025, we were in compliance with these covenants.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

8. SECURITIZED DEBT OBLIGATIONS, NET

We have financed certain pools of our loans through CLOs and have also financed one of our loans through a securitization

vehicle, or the European Loan Securitization. The CLOs and the European Loan Securitization are consolidated in our

financial statements and have issued securitized debt obligations that are non-recourse to us. Refer to Note 19 for further

discussion of our CLOs and the European Loan Securitization. The following tables detail our securitized debt obligations

and the underlying collateral assets that are financed by our CLOs and the European Loan Securitization ($ in thousands):


	June 30, 2026
Securitized Debt Obligations		Count	Principal Balance	Book Value(1)	Wtd. Avg. Yield/Cost(2)	Term(3)
CLOs
2026 FL6 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	$880,000	$872,474	+ 1.84%	August 2043
Underlying Collateral Assets		19	998,448	998,448	+ 3.04%	September 2029
2025 FL5 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	831,250	823,296	+ 2.15%	October 2042
Underlying Collateral Assets		19	997,984	997,984	+ 3.44%	February 2029
2021 FL4 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	421,346	421,346	+ 1.83%	May 2038
Underlying Collateral Assets		13	551,661	551,661	+ 4.17%	July 2027
2020 FL2 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	428,673	428,673	+ 1.93%	February 2038
Underlying Collateral Assets		9	595,239	595,239	+ 3.04%	February 2027
Total CLOs
Senior CLO Securities Outstanding		4	$2,561,269	$2,545,789	+ 1.95%
Underlying Collateral Assets		60	3,143,332	3,143,332	+ 3.35%
European Loan Securitization
Financing Provided		1	$189,541	$187,175	+ 1.71%	July 2030
Underlying Collateral Assets(4)		1	244,367	241,995	+ 2.97%	July 2030
Total
Senior CLO Securities Outstanding / Financing Provided(5)		5	$2,750,810	$2,732,964	+ 1.93%
Underlying Collateral Assets		61	3,387,699	3,385,327	+ 3.35%

(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, while all-in cost includes the amortization of deferred

origination fees and financing costs. The weighted-average all-in yield and cost are expressed as a spread over the

relevant floating benchmark rates, which is SOFR for the CLOs and EURIBOR for the European Loan

Securitization. All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any,

owned real estate assets, and cash from repayment proceeds held in certain of our CLOs that may be used to add

new eligible collateral assets.

(3)Underlying collateral assets term represents the weighted-average final maturity of such loans, assuming all

extension options are exercised by the borrower, and excludes owned real estate 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.

(4)We financed our $55.8 million retained interests in the securitization under a repurchase agreement structured

without capital markets-based mark-to-market provisions. The amount of the financing is included in other liabilities

on our consolidated balance sheets.

(5)During the three and six months ended June 30, 2026, we recorded $40.1 million and $74.8 million, respectively, of

interest expense related to our securitized debt obligations.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)


	December 31, 2025
Securitized Debt Obligations		Count	Principal Balance	Book Value(1)	Wtd. Avg. Yield/Cost(2)(3)	Term(4)
CLOs
2025 FL5 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	$831,250	$822,243	+ 2.15%	October 2042
Underlying Collateral Assets		18	944,537	944,537	+ 3.49%	October 2028
2021 FL4 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	605,613	605,613	+ 1.45%	May 2038
Underlying Collateral Assets		16	736,360	736,360	+ 3.18%	February 2027
2020 FL2 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	519,967	519,967	+ 1.82%	February 2038
Underlying Collateral Assets		11	691,964	691,964	+ 2.84%	January 2027
Total CLOs
Senior CLO Securities Outstanding		3	$1,956,830	$1,947,823	+ 1.84%
Underlying Collateral Assets		45	2,372,861	2,372,861	+ 3.22%
European Loan Securitization
Financing Provided		1	$192,666	$191,896	+ 1.53%	July 2030
Underlying Collateral Assets(5)		1	249,160	246,421	+ 2.97%	July 2030
Total
Senior CLO Securities Outstanding / Financing Provided(6)		4	$2,149,496	$2,139,719	+ 1.82%
Underlying Collateral Assets		46	2,622,021	2,619,282	+ 3.22%

(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 the relevant floating benchmark rates,

which is SOFR for the CLOs and EURIBOR for the European Loan Securitization. All-in yield excludes loans

accounted for under the cost-recovery and nonaccrual methods, if any, owned real estate assets, and cash from

repayment proceeds held in certain of our CLOs that may be used to add new eligible collateral assets.

(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)We financed our $55.8 million retained interests in the securitization under a repurchase agreement structured

without capital markets-based mark-to-market provisions. The amount of the financing is included in other liabilities

on our consolidated balance sheets.

(6)During the year ended December 31, 2025, we recorded $140.0 million of interest expense related to our securitized

debt obligations.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

9. ASSET-SPECIFIC DEBT, NET

The following tables detail our asset-specific debt ($ in thousands):


	June 30, 2026
Asset-Specific Debt		Count	Principal Balance	Book Value(1)	Wtd. Avg. Yield/Cost(2)	Wtd. Avg. Term(3)
Financing provided		4	$972,635	$971,305	+ 2.73%	February 2030
Collateral assets		4	$1,209,740	$1,202,445	+ 4.10%	February 2030

	December 31, 2025
Asset-Specific Debt		Count	Principal Balance	Book Value(1)	Wtd. Avg. Yield/Cost(2)	Wtd. Avg. Term(3)
Financing provided		4	$999,810	$997,746	+ 2.66%	February 2030
Collateral assets		4	$1,243,500	$1,234,205	+ 4.02%	February 2030

(1)The book value of underlying collateral assets excludes any applicable CECL reserves.

(2)The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates,

which include SOFR and CORRA, as applicable. These floating rate loans and related liabilities are currency and

index-matched to the applicable benchmark rate relevant in each arrangement. In addition to cash coupon, yield/cost

includes the amortization of deferred origination fees and financing costs.

(3)The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all

extension options are exercised by the borrower. Our non-recourse, asset-specific debt is term-matched in each case

to the corresponding collateral loans.

10. TERM LOANS, NET

During the six months ended June 30, 2026, we borrowed an additional $770.8 million under a B-9 Term Loan, the

proceeds of which were used, among other things, to repay all $695.8 million in principal outstanding under the B-6 Term

Loan.

The following table details the net book value of each of our senior term loan facilities, or Term Loans, on our consolidated

balance sheets ($ in thousands):


	Face Value
Term Loans	June 30, 2026	December 31, 2025	Interest Rate(1)	All-in Cost(1)(2)	Maturity
B-6 Term Loan	—	695,754	+ 3.00%	+ 3.61%	December 10, 2030
B-7 Term Loan	449,706	451,972	+ 2.50%	+ 3.11%	May 9, 2029
B-8 Term Loan	696,500	700,000	+ 2.50%	+ 2.95%	December 19, 2032
B-9 Term Loan	768,827	—	+ 2.50%	+ 2.95%	December 10, 2030
Total face value	$1,915,033	$1,847,726
Deferred financing costs and unamortized discounts	(36,471)	(39,726)
Net book value	$1,878,562	$1,808,000

(1)The B-7 Term Loan and B-9 Term Loan borrowings are subject to a benchmark interest rate floor of 0.50%. The

Term loans are indexed to one-month SOFR.

(2)Includes issue discount and transaction expenses that are amortized through interest expense over the life of the

applicable Term Loans.

The Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the aggregate initial principal

balance due in quarterly installments.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table details our interest expense related to the Term Loans ($ in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Cash coupon	$29,825	$34,096	$59,506	$68,144
Discount and issuance cost amortization	2,023	1,886	4,472	4,068
Total interest expense	$31,848	$35,982	$63,978	$72,212

The Term Loans contain the financial covenant that our indebtedness shall not exceed 83.33% of our total assets. As of

June 30, 2026 and December 31, 2025, we were in compliance with this covenant. Refer to Note 2 for further discussion of

our accounting policies for the Term Loans.

11. SENIOR SECURED NOTES, NET

During the six months ended June 30, 2026, we issued an additional $450.0 million principal amount of senior secured

notes, or Senior Secured Notes, the proceeds of which were used, among other things, to repay existing secured debt.

The following table details the net book value of our Senior Secured Notes on our consolidated balance sheets ($ in

thousands):


	Face Value
Senior Secured Notes Issuance	June 30, 2026	December 31, 2025	Interest Rate	Swapped Rate(1)	All-in Cost(2)	Maturity
October 2021	$335,316	$335,316	3.75%	n/a	4.06%	January 15, 2027
December 2024	450,000	450,000	7.75%	+ 3.95%	8.14%	December 1, 2029
May 2026	450,000	—	6.25%	+ 2.50%	6.68%	June 1, 2031
Total face value	$1,235,316	$785,316
Deferred financing costs and unamortized discounts	(13,111)	(7,280)
Hedging adjustments(3)	(4,706)	6,840
Net book value	$1,217,499	$784,876

(1)For certain of the Senior Secured Notes, we have entered into interest rate swaps that effectively convert our fixed

rate exposure to floating rate exposure. The interest rate swaps are indexed to one-month SOFR. Refer to Note 13

for further discussion.

(2)Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes.

(3)Represents the aggregate fair value of interest rate swaps that we entered into to convert the fixed rate exposure of

both the December 2024 and May 2026 Senior Secured Notes into floating rate. Refer to Note 13 for further

discussion.

The following table details our interest expense related to the Senior Secured Notes ($ in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Cash coupon	$15,222	$11,862	$27,084	$23,725
Discount and issuance cost amortization	818	651	1,459	1,349
Total interest expense	$16,040	$12,513	$28,543	$25,074

The Senior Secured Notes contain the financial covenant that our indebtedness shall not exceed 83.33% of our total assets.

As of June 30, 2026 and December 31, 2025, 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 1.20 or greater. This covenant is not

currently in effect as the collateral securing our Senior Secured Notes has not been released.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

12. CONVERTIBLE NOTES, NET

The following table details the net book value of our convertible senior notes, or Convertible Notes, on our consolidated

balance sheets ($ in thousands):


	Face Value
Convertible Notes	June 30, 2026	December 31, 2025	Interest Rate	All-in Cost(1)	Conversion Price(2)	Maturity
Face value	$266,157	$266,157	5.50%	5.79%	$36.27	March 15, 2027
Deferred financing costs and unamortized discount	(847)	(1,412)
Net book value	$265,310	$264,745

(1)Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the

effective interest method.

(2)Represents the price of class A common stock per share based on a conversion rate of 27.5702 for the Convertible

Notes. 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 June 30, 2026.

Other than as provided by the optional redemption provisions with respect to our Convertible Notes, we may not redeem

the Convertible Notes prior to maturity. The Convertible Notes are convertible at the holders’ option into shares of our

class A common stock, only under specific circumstances, prior to the close of business on December 14, 2026 at the

applicable conversion rate in effect on the conversion date. Thereafter, the Convertible Notes are convertible at the option

of the holder at any time until the second scheduled trading day immediately preceding the maturity date. The last reported

sale price of our class A common stock of $16.95 on June 30, 2026, the last trading day in the six months ended June 30,

2026, was less than the per share conversion price of the Convertible Notes.

The following table details our interest expense related to the Convertible Notes ($ in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Cash coupon	$3,660	$3,660	$7,319	$7,319
Discount and issuance cost amortization	282	282	565	565
Total interest expense	$3,942	$3,942	$7,884	$7,884

Accrued interest payable for the Convertible Notes was $4.3 million as of both June 30, 2026 and December 31, 2025.

Refer to Note 2 for further discussion of our accounting policies for the Convertible Notes.

13. DERIVATIVE FINANCIAL INSTRUMENTS

The objective of our use of derivative financial instruments is to minimize the risks and/or costs associated with our

investments and/or financing transactions. These derivatives may or may not qualify as net investment, cash flow, or fair

value hedges under the hedge accounting requirements of the ASC Topic 815, “Derivatives and Hedging.” Derivatives not

designated as hedges are not speculative and are used to manage our exposure to interest rate movements and other

identified risks. Refer to Note 2 for further discussion of the accounting for designated and non-designated hedges.

The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these

contractual arrangements do not perform as agreed. To mitigate this risk, we only enter into derivative financial

instruments with counterparties that have appropriate credit ratings and are major financial institutions with which we and

our affiliates also have other financial relationships.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Net Investment Hedges of Foreign Currency Risk

Certain of our international investments expose us to fluctuations in foreign interest rates and currency exchange rates.

These fluctuations may impact the value of our cash receipts and payments in terms of our functional currency, the U.S.

dollar. 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.

Designated Hedges of Foreign Currency Risk

The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of

foreign currency risk (notional amounts in thousands):


June 30, 2026			December 31, 2025
Foreign Currency Derivatives	Number of Instruments	Notional Amount	Foreign Currency Derivatives	Number of Instruments	Notional Amount
Buy USD / Sell SEK Forward	3	kr 940,679	Buy USD / Sell SEK Forward	2	kr 970,417
Buy USD / Sell EUR Forward	12	€695,360	Buy USD / Sell GBP Forward	6	£739,956
Buy USD / Sell GBP Forward	5	£684,764	Buy USD / Sell EUR Forward	10	€689,868
Buy USD / Sell AUD Forward	9	A$389,995	Buy USD / Sell AUD Forward	7	A$371,141
Buy USD / Sell CAD Forward	3	C$120,799	Buy USD / Sell CAD Forward	3	C$120,557
Buy USD / Sell CHF Forward	1	CHF52	Buy USD / Sell CHF Forward	1	CHF52

Non-designated Hedges of Foreign Currency Risk

The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign

currency risk (notional amounts in thousands):


June 30, 2026			December 31, 2025
Non-designated Hedges	Number of Instruments	Notional Amount	Non-designated Hedges	Number of Instruments	Notional Amount
Buy EUR / Sell USD Forward	2	€119,100	Buy GBP / Sell USD Forward	2	£86,800
Buy USD / Sell EUR Forward	2	€119,100	Buy USD / Sell GBP Forward	2	£86,800
Buy GBP / Sell USD Forward	4	£111,100	Buy EUR / Sell USD Forward	3	€44,700
Buy USD / Sell GBP Forward	4	£111,100	Buy USD / Sell EUR Forward	3	€44,700
Buy AUD / Sell USD Forward	2	A$15,500	Buy AUD / Sell USD Forward	2	A$10,200
Buy USD / Sell AUD Forward	2	A$15,500	Buy USD / Sell AUD Forward	2	A$10,200

Cash Flow Hedges of Interest Rate Risk

Certain of our financing transactions expose us to a fixed versus floating rate mismatch between our assets and liabilities.

We use derivative financial instruments, which include interest rate swaps (and may also include interest rate caps, interest

rate options, floors, and other interest rate derivative contracts) to hedge interest rate risk associated with our borrowings

where there is potential for an index mismatch.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate

risk (notional amounts in thousands):


June 30, 2026
Interest Rate Derivatives	Number of Instruments	Notional Amount	Fixed Rate	Index	Maturity (Years)
Interest Rate Swaps	1	$35,600	3.51%	SOFR	4.5


December 31, 2025
Interest Rate Derivatives	Number of Instruments	Notional Amount	Fixed Rate	Index	Maturity (Years)
Interest Rate Swaps	1	$35,600	3.51%	SOFR	5.0

Fair Value Hedges of Interest Rate Risk

Certain of our corporate financings expose us to fluctuations in the fair value of our outstanding fixed rate debt. We use

derivative financial instruments, which include interest rate swaps, to hedge interest rate risk associated with changes in the

fair value of our fixed rate debt. The changes in the value of the interest rate swap is recognized in earnings and offset the

corresponding changes in the fair value of the debt.

Designated Hedges of Interest Rate Risk

The following tables detail our outstanding interest rate derivatives that were designated as fair value hedges of interest rate

risk (notional amount in thousands):


June 30, 2026
Interest Rate Derivatives	Number of Instruments	Aggregate Notional Amount	Fixed Rate	Index	Maturity (Years)
Interest Rate Swaps	2	$900,000	3.75% - 3.81%	SOFR	3.4 - 4.9


December 31, 2025
Interest Rate Derivatives	Number of Instruments	Notional Amount	Fixed Rate	Index	Maturity (Years)
Interest Rate Swaps	1	$450,000	3.81%	SOFR	3.9

The following tables detail the carrying amount and cumulative basis adjustments on hedged items designated as fair value

hedges ($ in thousands):


June 30, 2026
Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included	Carrying Amount of the Hedged Assets/ Liabilities	Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount
Senior secured notes, net	$882,722	$(4,706)


December 31, 2025
Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included	Carrying Amount of the Hedged Assets/ Liabilities	Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount
Senior secured notes, net	$450,597	$6,840

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Financial Statement Impact of Hedges of Foreign Currency and Interest Rate Risks

The following table presents the effect of our derivative financial instruments on our consolidated statements of operations

($ in thousands):


		Increase (Decrease) to Net Interest Income Recognized from Derivatives
		Three Months Ended June 30,		Six Months Ended June 30,
Derivatives in Hedging Relationships	Location of Income (Expense) Recognized	2026	2025	2026	2025
Designated Hedges	Interest Income(1)	$3,504	$4,694	$7,464	$7,645
Designated Hedges	Interest Expense(2)	260	(625)	421	(1,210)
Non-Designated Hedges	Interest Income(1)	(7)	(50)	(12)	(50)
Non-Designated Hedges	Interest Expense(3)	17	(1,931)	24	(1,928)
Total		$3,774	$2,088	$7,897	$4,457

(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 U.S. 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 and related expenses in our consolidated statements of operations. The amounts in the three

and six months ended June 30, 2025 also include a realized loss on an interest rate swap related to our Bank Loan

Portfolio Joint Venture that was entered into during the three months ended June 30, 2025 and subsequently

terminated.

Fair Value Hedges

The following table presents the net gains (losses) on derivatives and the related hedged items in fair value hedging

relationships ($ in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Total interest and related expenses presented in the consolidated statements of operations	$227,182	$264,727	$447,918	$506,960
Gains (losses) on fair value hedging relationships
Total (loss) gain on derivative instruments	$(8,159)	$9,124	$(11,453)	$12,288
Fair value basis adjustment on hedged items	8,245	(4,231)	11,546	(7,340)
Derivative settlements and accruals	175	624	328	1,442
Net gain on fair value hedging relationships(1)	$261	$5,517	$421	$6,390

(1)Included within interest and related expenses presented in the consolidated statements of operations.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table presents the effect of our derivative financial instruments on our consolidated statements of

comprehensive income and operations ($ in thousands):


Derivatives in Hedging Relationships	Amount of Gain (Loss) Recognized in OCI on Derivatives		Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
Derivatives in Hedging Relationships	Three Months Ended June 30, 2026	Six Months Ended June 30, 2026		Three Months Ended June 30, 2026	Six Months Ended June 30, 2026
Net Investment Hedges
Foreign exchange contracts(1)	$13,705	$41,895	Interest Expense	$3,504	$7,464
Cash Flow Hedges
Interest rate derivatives(2)	427	684	Interest Expense(3)	13	28
Total	$14,132	$42,579		$3,517	$7,492

(1)During the three and six months ended June 30, 2026, we paid net cash settlements of $4.6 million and

$22.6 million, respectively, on our foreign currency forward contracts. Those amounts are included as a component

of accumulated other comprehensive income on our consolidated balance sheets.

(2)During the three and six months ended June 30, 2026, we received net cash settlements of $0.1 million and

$0.2 million, respectively, on our interest rate swaps. Those amounts are included within interest and related

expenses in the consolidated statements of operations.

(3)During the three and six months ended June 30, 2026, we recorded total interest and related expenses of

$227.2 million and $447.9 million, which was reduced by $13 thousand and $28 thousand, respectively, related to

income generated by our cash flow hedges.

There were no cash flow hedges outstanding during the three and six months ended June 30, 2025.

Credit–Risk Related Contingent Features

We have entered into agreements with certain of our derivative counterparties that contain provisions where if we were to

default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the

lender, we may also be declared in default on our derivative obligations. In addition, certain of our agreements with our

derivative counterparties require that we post collateral to secure net liability positions. As of June 30, 2026, we were in a

net asset position with our two counterparties related to our foreign exchange hedges and had no collateral posted with such

counterparties. As of June 30, 2026, we were in a net liability position with our two counterparties related to our interest

rate swaps and had $3.3 million collateral posted with such counterparties. As of December 31, 2025, we were in a net

asset position with one of our counterparties and in a net liability position with our other two counterparties related to our

foreign exchange hedges and had $25.3 million of collateral posted with such counterparties.

14. EQUITY

Stock and Stock Equivalents

Authorized Capital

As of June 30, 2026 we had the authority to issue up to 500,000,000 shares of stock, consisting of 400,000,000 shares of

class A common stock and 100,000,000 shares of preferred stock. Subject to applicable NYSE listing requirements, our

board of directors is authorized to cause us to issue additional shares of authorized stock without stockholder approval. In

addition, to the extent not issued, currently authorized stock may be reclassified between class A common stock and

preferred stock. As of both June 30, 2026 and December 31, 2025, we did not have any shares of preferred stock issued and

outstanding.

Share Repurchase Program

In October 2025, our board of directors authorized the repurchase of up to $150.0 million of shares of our class A common

stock under our repurchase program. Repurchases may be made from time to time in open market transactions, in privately

negotiated transactions, in agreements and arrangements structured in a manner consistent with Rules 10b-18 and 10b5-1

under the Exchange Act or otherwise. The timing and the actual amounts repurchased will depend on a variety of factors,

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

including legal requirements, price and economic and market conditions. The repurchase program may be changed,

suspended or discontinued at any time and does not have a specified expiration date.

During the six months ended June 30, 2026, we repurchased 212,875 shares of class A common stock at a weighted-

average price per share of $17.99, for a total cost of $3.8 million. During the six months ended June 30, 2025, we

repurchased 1,794,936 shares of class A common stock at a weighted-average price per share of $17.63, for a total cost of

$31.6 million. As of June 30, 2026, the amount remaining available for repurchases under the program was $145.8 million.

Class A Common Stock and Deferred Stock Units

Holders of shares of our class A common stock are entitled to vote on all matters submitted to a vote of stockholders and

are entitled to receive dividends authorized by our board of directors and declared by us, in all cases subject to the rights of

the holders of shares of outstanding preferred stock, if any.

We also issue restricted class A common stock under our stock-based incentive plans. Refer to Note 17 for further

discussion of these long-term incentive plans. In addition to our class A common stock, we also issue deferred stock units

to certain members of our board of directors for services rendered. These deferred stock units are non-voting, but carry the

right to receive dividends in the form of additional deferred stock units in an amount equivalent to the cash dividends paid

to holders of shares of class A common stock. Each vested deferred stock unit is settled by delivery of one share of class A

common stock upon the non-employee director’s separation from service.

The following table details the movement in our outstanding shares of class A common stock, including restricted class A

common stock and deferred stock units:


	Six Months Ended June 30,
Common Stock Outstanding(1)	2026	2025
Beginning balance	168,599,052	173,204,190
Issuance of class A common stock(2)	—	1,778
Repurchase of class A common stock	(212,875)	(1,794,936)
Issuance of restricted class A common stock, net(3)(4)	497,443	482,004
Issuance of deferred stock units	29,519	24,431
Ending balance	168,913,139	171,917,467

(1)Includes 369,548 and 323,877 deferred stock units held by members of our board of directors as of June 30, 2026

and 2025, respectively.

(2)Represents shares issued under our dividend reinvestment program during the six months ended June 30, 2025.

(3)Includes 32,985 and 29,140 shares of restricted class A common stock issued to our board of directors during the six

months ended June 30, 2026 and 2025, respectively.

(4)Net of 26,145 and 29,008 shares of restricted class A common stock forfeited under our stock-based incentive plans

during the six months ended June 30, 2026 and 2025, respectively.

Dividend Reinvestment and Direct Stock Purchase Plan

We have adopted a dividend reinvestment and direct stock purchase plan under which an aggregate of 10,000,000 shares of

class A common stock are available for sale. Under the dividend reinvestment component of the plan, our class A common

stockholders can designate all or a portion of their cash dividends to be reinvested in additional shares of class A common

stock. Such shares may, at our option, be newly issued shares from us, shares purchased by the plan administrator on the

open market, or a combination thereof. The direct stock purchase component of the plan allows stockholders and new

investors, subject to our approval, to purchase shares of class A common stock directly from us. During the six months

ended June 30, 2026, 16,497 shares of class A common stock were purchased on the open market by the plan administrator

under the dividend reinvestment component of the plan. During the six months ended June 30, 2025, we issued 1,778

shares of class A common stock under the dividend reinvestment component of the plan. As of June 30, 2026, a total of

9,948,628 shares of class A common stock remained available under the dividend reinvestment and direct stock purchase

plan.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

At the Market Stock Offering Program

As of June 30, 2026, we are party to seven equity distribution agreements, or ATM Agreements, pursuant to which we may

sell, from time to time, up to an aggregate sales price of $699.1 million of our class A common stock. Sales of class A

common stock made pursuant to our ATM Agreements may be made in negotiated transactions or transactions that are

deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Actual sales

depend on a variety of factors including market conditions, the trading price of our class A common stock, our capital

needs, and our determination of the appropriate sources of funding to meet such needs. During the six months ended

June 30, 2026 or June 30, 2025, we did not issue any shares of our class A common stock under ATM Agreements. As of

June 30, 2026, shares of our class A common stock with an aggregate sales price of $480.9 million remained available for

issuance and sale under our ATM Agreements.

Dividends

We generally intend to distribute substantially all of our taxable income, which does not necessarily equal net income as

calculated in accordance with GAAP, to our stockholders each year to comply with the REIT provisions of the Internal

Revenue Code of 1986, as amended, or the Internal Revenue Code. Our dividend policy remains subject to revision at the

discretion of our board of directors. All distributions will be made at the discretion of our board of directors and will

depend upon our taxable income, our financial condition, our maintenance of REIT status, applicable law, and other factors

as our board of directors deems relevant.

On June 15, 2026, we declared a dividend of $0.47 per share, or $79.2 million in aggregate, that was paid on July 15, 2026

to stockholders of record as of June 30, 2026.

The following table details our dividend activity ($ in thousands, except per share data):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Dividends declared per share of common stock	$0.47	$0.47	$0.94	$0.94
Class A common stock dividends declared	$79,215	$80,649	$158,498	$161,293
Deferred stock unit dividends declared	165	147	324	340
Total dividends declared	$79,380	$80,796	$158,822	$161,633

Earnings Per Share

We calculate our basic and diluted earnings per share using the two-class method for all periods presented as the unvested

shares of our restricted class A common stock qualify as participating securities, as defined by GAAP. These restricted

shares have the same rights as our other shares of class A common stock, including participating in any dividends, and

therefore have been included in our basic and diluted net income per share calculation. The shares issuable under our

Convertible Notes are included in dilutive earnings per share using the if-converted method when the effect is not

antidilutive.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table sets forth the calculation of basic and diluted net income per share of class A common stock based on

the weighted-average of both restricted and unrestricted class A common stock outstanding ($ in thousands, except per

share data):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Basic and Diluted Earnings
Net (loss) income(1)	$(81,222)	$6,969	$(87,519)	$6,612
Weighted-average shares outstanding, basic and diluted(2)	168,964,515	171,893,905	169,021,130	171,949,090
Per share amount, basic and diluted	$(0.48)	$0.04	$(0.52)	$0.04

(1)Represents net (loss) income attributable to Blackstone Mortgage Trust, Inc.

(2)For both the three and six months ended June 30, 2026 and 2025, our Convertible Notes were not included in the

calculation of diluted earnings per share, as the impact is antidilutive. Refer to Note 12 for further discussion of our

convertible notes.

Other Balance Sheet Items

Accumulated Other Comprehensive Income

As of June 30, 2026, total accumulated other comprehensive income was $11.2 million, representing $121.6 million of net

realized and unrealized gains related to changes in the fair value of derivative instruments and $0.3 million of unrealized

gains related to the changes in the fair value of derivative instruments held by unconsolidated entities, offset by

$110.7 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign

currencies. As of December 31, 2025, total accumulated other comprehensive income was $12.1 million, primarily

representing $86.6 million of net realized and unrealized gains related to changes in the fair value of derivative instruments

offset by $73.6 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in

foreign currencies and $0.8 million of unrealized losses related to the changes in the fair value of derivative instruments

held by unconsolidated entities.

Non-Controlling Interests

The non-controlling interests included on our consolidated balance sheets represent the equity interests in our Multifamily

Joint Venture that are not owned by us. A portion of our Multifamily Joint Venture’s consolidated equity and results of

operations are allocated to these non-controlling interests based on their pro rata ownership of our Multifamily Joint

Venture. As of June 30, 2026, our Multifamily Joint Venture’s total equity was $20.3 million, of which $17.3 million was

owned by us, and $3.0 million was allocated to non-controlling interests. As of December 31, 2025, our Multifamily Joint

Venture’s total equity was $36.5 million, of which $31.0 million was owned by us, and $5.5 million was allocated to non-

controlling interests.

15. OTHER EXPENSES

Our other expenses consist of the management and incentive fees we pay to our Manager and our general and

administrative expenses.

Management and Incentive Fees

Pursuant to a management agreement between our Manager and us, or our Management Agreement, our Manager earns a

base management fee in an amount equal to 1.50% per annum multiplied by our Equity, as defined in the Management

Agreement. In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i) 20% and (ii) the

excess of (a) our Core Earnings (as defined in our Management Agreement) for the previous 12-month period over (b) an

amount equal to 7.00% per annum multiplied by our Equity, provided that our Core Earnings over the prior three-year

period is greater than zero. Core Earnings, as defined in our Management Agreement, is generally equal to our GAAP net

income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and

excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), (iv)

net income (loss) attributable to our legacy portfolio, (v) certain non-cash items, and (vi) incentive management fees.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

During the three and six months ended June 30, 2026, we incurred $14.6 million and $29.5 million, respectively, of

management fees payable to our Manager compared with $17.0 million and $34.3 million, respectively, during the same

periods in 2025. During the three and six months ended June 30, 2026 and 2025, we did not incur any incentive fees

payable to our Manager.

As of June 30, 2026 and December 31, 2025, we had accrued management fees payable to our Manager of $14.6 million

and $16.4 million, respectively.

General and Administrative Expenses

General and administrative expenses consisted of the following ($ in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Professional services	$4,861	$4,281	$9,992	$8,192
Operating and other costs	3,382	1,942	5,545	3,730
Subtotal	8,243	6,223	15,537	11,922
Non-cash compensation expenses
Restricted class A common stock earned	6,476	7,131	12,965	13,923
Director stock-based compensation	199	172	397	345
Subtotal	6,675	7,303	13,362	14,268
Total general and administrative expenses	$14,918	$13,526	$28,899	$26,190

16. 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 June 30, 2026 and December 31, 2025, we were in compliance with all REIT requirements.

Securitization transactions could result in the creation of taxable mortgage pools for federal income tax purposes. As a

REIT, so long as we own 100% of the equity interests in a taxable mortgage pool, we generally would not be adversely

affected by the characterization of the securitization as a taxable mortgage pool. Certain categories of stockholders,

however, such as foreign stockholders eligible for treaty or other benefits, stockholders with net operating losses, and

certain tax-exempt stockholders that are subject to unrelated business income tax, or UBTI, could be subject to increased

taxes on a portion of their dividend income from us that is attributable to the taxable mortgage pool. We have not made

UBTI distributions to our common stockholders and do not intend to make such UBTI distributions in the future.

During the three and six months ended June 30, 2026, we recorded a current income tax provision of $2.5 million and

$3.7 million, respectively, compared with $0.9 million and $1.6 million, respectively, during the same periods of 2025, all

of which 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 June 30, 2026 or December 31, 2025.

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 25,875,000 shares of class A common stock in May 2013, the

availability of our NOLs is generally limited to $2.0 million per annum by change of control provisions promulgated by the

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Internal Revenue Service with respect to the ownership of Blackstone Mortgage Trust. As of June 30, 2026, we had

estimated NOLs of $159.0 million that will expire in 2029, unless they are utilized by us prior to expiration. Previously, we

recorded a full valuation allowance against such NOLs as we expected that they would expire unutilized. However,

although uncertain, we may utilize a portion of NOLs prior to expiration. We do not expect the utilization of NOLs to have

a material impact on our consolidated financial statements. We have recorded a full valuation allowance against such NOLs

as it is probable that they will expire unutilized.

As of June 30, 2026, tax years 2022 through 2025 remain subject to examination by taxing authorities.

17. STOCK-BASED INCENTIVE PLANS

We are externally managed by our Manager and do not currently have any employees. However, as of June 30, 2026, our

Manager, certain individuals employed by an affiliate of our Manager, and certain members of our board of directors were

compensated, in part, through our issuance of stock-based instruments.

Under our two current stock incentive plans, a maximum of 10,400,000 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 June 30, 2026, there

were 4,548,925 shares available under our current stock incentive plans.

The following table details the movement in our outstanding shares of restricted class A common stock and the weighted-

average grant date fair value per share:


	Restricted Class A Common Stock	Weighted-Average Grant Date Fair Value Per Share
Balance as of December 31, 2025	2,174,931	$20.14
Granted	523,588	19.35
Vested	(670,742)	20.31
Forfeited	(26,145)	19.47
Balance as of June 30, 2026	2,001,632	$19.89

These shares generally vest in installments over a period of three years, pursuant to the terms of the respective award

agreements and the terms of our current stock incentive plans. The 2,001,632 shares of restricted class A common stock

outstanding as of June 30, 2026 will vest as follows: 670,126 shares will vest in 2026; 869,012 shares will vest in 2027;

and 462,494 shares will vest in 2028. As of June 30, 2026, total unrecognized compensation cost relating to unvested

share-based compensation arrangements was $38.3 million based on the grant date fair value of shares granted. This cost is

expected to be recognized over a weighted-average period of 1.1 years from June 30, 2026.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

18. FAIR VALUES

Assets and Liabilities Measured at Fair Value

The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands):


	June 30, 2026				December 31, 2025
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Assets
Derivatives	$—	$47,908	$—	$47,908	$—	$10,492	$—	$10,492
Debt securities	—	—	66,310	66,310	—	—	—	—
Total	$—	$47,908	$66,310	$114,218	$—	$10,492	$—	$10,492
Liabilities
Derivatives	$—	$10,351	$—	$10,351	$—	$26,596	$—	$26,596

This table excludes $136.2 million and $111.0 million of investments in unconsolidated entities that are measured at fair

value using net asset value as a practical expedient and not classified in the fair value hierarchy as of June 30, 2026 and

December 31, 2025, respectively. Refer to Note 5 for further information.

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.

The following table details the book value, face amount, and fair value of the financial instruments described in Note 2

($ in thousands):


	June 30, 2026			December 31, 2025
	Book Value	Face Amount	Fair Value	Book Value	Face Amount	Fair Value
Financial assets
Cash and cash equivalents	$432,833	$432,833	$432,833	$452,526	$452,526	$452,526
Loans receivable, net	16,936,895	17,409,208	16,912,904	17,784,694	18,154,768	17,856,303
Financial liabilities
Secured debt, net	8,708,944	8,717,351	8,648,332	10,117,292	10,125,839	10,029,890
Other secured debt(1)	38,386	38,386	38,386	39,475	39,475	39,475
Securitized debt obligations, net	2,732,964	2,750,810	2,743,355	2,139,719	2,149,496	2,132,667
Asset-specific debt, net	971,305	972,635	972,635	997,746	999,810	996,308
Secured term loans, net	1,878,562	1,915,033	1,906,096	1,808,000	1,847,726	1,850,327
Senior secured notes, net	1,217,499	1,235,316	1,232,033	784,876	785,316	810,608
Convertible notes, net	265,310	266,157	265,508	264,745	266,157	264,286

(1)Included within other liabilities on our consolidated balance sheets. See Note 6 for further information.

Estimates of fair value for cash and cash equivalents and convertible notes are measured using observable, quoted market

prices, or Level 1 inputs. Estimates of fair value for securitized debt obligations, the Term Loans, and the Senior Secured

Notes are measured using observable, quoted market prices, in inactive markets, or Level 2 inputs. All other fair value

significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding

fair value measurement of certain of our assets and liabilities.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

19. VARIABLE INTEREST ENTITIES

We have financed a portion of our loans through the CLOs and the European Loan Securitization, all of which are VIEs.

We are the primary beneficiary of, and therefore consolidate, the CLOs and the European Loan Securitization on our

balance sheet as we (i) control the relevant interests of the CLOs and the European Loan Securitization that give us power

to direct the activities that most significantly affect the CLOs and the European Loan Securitization, and (ii) have the right

to receive benefits and obligation to absorb losses of the CLOs and the European Loan Securitization through the

subordinate interests we own.

During 2025, we modified three loans that included, among other changes, control over decision making at the respective

properties. Similarly, during 2024, we modified two other loans that included, among other changes, an equity interest in

and/or control over decision-making at the property. As a result of these modifications, our investments in these loans are

VIEs. As of June 30, 2026, we are the primary beneficiary of, and therefore consolidated the assets of these VIEs on our

balance sheet as we (i) have the power to direct the activities that most significantly affect the property, and (ii) have the

right to receive excess sale proceeds upon exit.

The following table details the assets and liabilities of our consolidated VIEs ($ in thousands):


	June 30, 2026	December 31, 2025
Assets
Cash and cash equivalents	$48,974	$58,663
Loans receivable	3,194,645	2,422,505
Current expected credit loss reserve	(92,867)	(23,609)
Loans receivable, net	3,101,778	2,398,896
Owned real estate, net	602,877	603,130
Other assets	140,395	196,840
Total assets	$3,894,024	$3,257,529
Liabilities
Securitized debt obligations, net	$2,732,964	$2,139,719
Other liabilities	54,697	47,645
Total liabilities	$2,787,661	$2,187,364

Assets held by these VIEs are restricted and can be used only to settle obligations of the VIEs, including the subordinate

interests of the securitized debt obligations owned by us. The liabilities of these VIEs are non-recourse to us and can only

be satisfied from the assets of the VIEs. The consolidation of these VIEs results in an increase in our gross assets,

liabilities, revenues and expenses; however, it does not affect our stockholders’ equity or net income. We are not obligated

to provide, have not provided, and do not intend to provide material financial support to these consolidated VIEs.

20. TRANSACTIONS WITH RELATED PARTIES

Our Manager

We are managed by our Manager pursuant to the Management Agreement. The current term of the Management

Agreement expires on December 19, 2026, and it will be automatically renewed for a one-year term upon such date and

each anniversary thereafter unless earlier terminated.

As of June 30, 2026 and December 31, 2025, our consolidated balance sheets included $14.6 million and $16.4 million,

respectively, of accrued management fees payable to our Manager. During the three and six months ended June 30, 2026,

we paid management fees of $14.8 million and $31.2 million, respectively, to our Manager, compared to $17.2 million and

$35.8 million, respectively, during the same periods in 2025. We did not pay any incentive fees to our Manager during the

three and six months ended June 30, 2026 and 2025. In addition, during the three and six months ended June 30, 2026, we

incurred expenses of $0.4 million and $0.8 million, respectively, that were paid by our Manager and have been or will be

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

reimbursed by us, compared to $0.2 million and $0.4 million, respectively, of such expenses during the same periods in

2025.

As of June 30, 2026, our Manager held 1,008,941 shares of unvested restricted class A common stock, which had an

aggregate grant date fair value of $20.5 million. These shares vest in installments over three years from the date of

issuance. During the three and six months ended June 30, 2026, we recorded non-cash expenses related to shares held by

our Manager of $3.5 million and $7.0 million, respectively, compared to $3.6 million and $7.2 million, respectively, during

the same periods in 2025. Refer to Note 17 for further details on our restricted class A common stock.

As of June 30, 2026, our Manager, its affiliates (including Blackstone and Blackstone-advised investment vehicles),

Blackstone employees, and our directors held an aggregate 13,764,005 shares, or 8.2%, of our class A common stock, of

which 8,916,412 shares, or 5.3%, were held by Blackstone and its subsidiaries. Additionally, our directors held 369,548 of

deferred stock units as of June 30, 2026. Certain of the parties listed above have in the past purchased or sold shares of our

class A common stock in open market transactions, and such parties may in the future purchase or sell additional shares of

our class A common stock and/or engage in derivatives transactions related to our class A common stock. Any such

transactions would be made in the sole discretion of the relevant party based on market conditions and other considerations

relevant to such parties.

Affiliate Services

We have engaged certain portfolio companies owned by Blackstone-advised investment vehicles to provide, as applicable,

management, corporate support, and transaction support services. The following table details the costs incurred (refunded)

for these services ($ in thousands):


		Three Months Ended June 30,		Six Months Ended June 30,
	Primary Asset Class	2026	2025	2026	2025
Perform Properties, LLC	Office	$1,466	$319	$3,432	$894
Brio Real Estate Services, LLC, Brio Real Estate (UK) Ltd., and Brio Real Estate (AUS) Pty Ltd.	n/a	1,672	1,101	3,377	1,101
BRE Hotels & Resorts, LLC	Hospitality	282	380	793	869
Revantage Corporate Services, LLC and Revantage Global Services Europe S.à r.l.	n/a	337	381	664	343
LivCor, LLC	Multifamily	45	117	140	276
LendingOne, LLC(1)	Multifamily	—	158	—	158
Total		$3,802	$2,456	$8,406	$3,641

(1)Provides loan origination services related to certain of our investments.

During the six months ended June 30, 2026, we entered into an agreement with another Blackstone-advised investment

vehicle to fund our pro rata share of any payments required under a guaranty agreement with a lending institution. The

guaranty relates to a revolving credit facility with a portfolio company owned by Blackstone-advised investment vehicles

that provides services to us, and our participation reflects our share of the associated costs based on services rendered. As

of June 30, 2026, our maximum potential obligation under the arrangement was $0.9 million. No events through the date of

these consolidated financial statements required performance under the guaranty, and no liability was recorded as of

June 30, 2026.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

We have engaged other affiliates of our Manager to provide various services. The following table details the costs incurred

for these services ($ in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Gryphon Mutual Property Americas IC(1)	$916	$601	$1,699	$1,148
Blackstone Securities Partners L.P.(2)	422	79	422	79
Lexington National Land Services(3)	37	46	134	46
Blackstone internal audit services	—	(111)	—	—
Total	$1,375	$615	$2,255	$1,273

(1)In order to provide insurance for our owned real estate 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 management 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 borne by us and the other Blackstone-advised investment vehicles that are members

of Gryphon pro rata based on insurance premiums paid for each member’s respective properties. During the six

months ended June 30, 2026 and June 30, 2025, we paid $0.3 million and $0.8 million, respectively, to Gryphon for

insurance costs, inclusive of premiums, capital surplus contributions, taxes, and our pro rata share of other expenses.

Of these amounts, $5 thousand and $31 thousand, respectively, were attributable to the fees 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 relevant periods of the respective policies.

(2)During the six months ended June 30, 2026, Blackstone Securities Partners L.P., or BSP, an affiliate of our

Manager, was engaged as a member of the syndicate for our May 2026 Senior Secured Notes. During the six months

ended June 30, 2025, BSP was also engaged as a member of the syndicate for our B-6 Term Loan. These

engagements were on terms equivalent to those of unaffiliated third parties.

(3)Lexington National Land Services, or LNLS, is a Blackstone affiliate that (i) acts as a title agent in facilitating and

issuing title insurance, (ii) provides title support services for title insurance underwriters, (iii) in certain

circumstances, provides courtesy title settlement services and (iv) acts as escrow agent in connection with certain

investments by Blackstone-advised vehicles, including us, Blackstone-advised investment vehicles and portfolio

companies owned by Blackstone-advised investment vehicles, affiliates and related parties, and third parties,

including, in certain cases, Blackstone’s borrowers. In exchange for such services, LNLS earns fees which would

have otherwise been paid to third parties. Blackstone receives distributions from LNLS in connection with

investments made by us based on its equity interest in LNLS. In each case, there will be no related expense offset to

us.

CT Investment Management Co., LLC, or CTIMCO, serves as the special servicer of all of our CLOs, and the Manager

serves as the collateral manager and benchmark agent for our FL6 and FL5 CLOs issued in the first quarter of 2026 and

2025, respectively. As of June 30, 2026, three of our assets were in special servicing under CLOs. CTIMCO and our

Manager have waived any fees that would be payable to a third party serving in such roles pursuant to the applicable

agreements, and no such fees have been paid or will become payable to CTIMCO or our Manager.

Other Transactions

During the six months ended June 30, 2026, we invested $494.2 million in four senior loans, $32.3 million in two

mezzanine loans to unaffiliated third parties, and $66.7 million in a new issuance of a debt security (see Note 6 for further

discussion) in which Blackstone-advised investment vehicles also invested at the same level of the capital structure on a

pari passu basis.

In the first quarter of 2026, Blackstone-advised investment vehicles acquired an aggregate $71.4 million participation in

our $770.8 million B-9 Term Loan. In the fourth quarter of 2025, Blackstone-advised investment vehicles acquired an

aggregate $63.0 million participation in our $700.0 million B-8 Term Loan. In the third quarter of 2025, Blackstone-

advised investment vehicles acquired an aggregate $33.0 million participation in our $453.1 million B-7 Term Loan. In the

second quarter of 2025, Blackstone-advised investment vehicles acquired an aggregate $83.9 million participation in our

$1.0 billion B-6 Term Loan, which has subsequently been repaid in full. All of these transactions were part of broad

syndications led by third-party banks, and were on terms equivalent to those of unaffiliated third parties. BSP was engaged

as a member of the syndicate for these transactions. Our engagements of BSP are on terms equivalent to those of

unaffiliated third parties. See “—Affiliate Services” for further information.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

As part of broad syndications led by third-party banks, Blackstone-advised investment vehicles acquired an aggregate

$11.0 million of notes in our $1.0 billion FL6 CLO offering in the first quarter of 2026, and $75.0 million of notes in our

$1.0 billion FL5 CLO offering in the first quarter of 2025. Both of these transactions were on terms equivalent to those of

unaffiliated third parties.

In the second quarter of 2026, we entered into our Homebuilder Finance Joint Venture with an unaffiliated third-party,

alongside a Blackstone-advised investment vehicle, that concurrently acquired a $286.7 million portfolio of single family

construction loans in which we made an equity investment of $28.5 million representing our aggregate ownership interest

of 45%.

In the fourth quarter of 2025, we made a $75.0 million capital commitment at the initial closing of a fund managed by

Blackstone Real Estate Debt Strategies, or BREDS, the BREDS-advised private fund, formed to invest in Core+ real estate

debt investments in the U.S. and Canada. Blackstone affiliates, including us, do not pay management fees or carried

interest with respect to their investments in the BREDS-advised private fund. Our capital commitment represented a

minority of the total capital commitments the BREDS-advised private fund had received as of June 30, 2026. As of

June 30, 2026, the BREDS-advised private fund had not called any capital. To fund its investments, the BREDS-advised

private fund will draw down on capital commitments made by its investors, including us, on a pro rata basis.

In the second quarter of 2025, we entered into our Bank Loan Portfolio Joint Venture with a Blackstone-advised

investment vehicle that concurrently acquired a $1.4 billion portfolio of performing commercial mortgage loans in which

we made an equity investment of $57.6 million and our ownership interest was 29%. In the third quarter of 2025, our Bank

Loan Portfolio Joint Venture acquired a $606.0 million portfolio of performing commercial mortgage loans in which we

made an equity investment of $44.7 million and our ownership interest was 50%. In the fourth quarter of 2024, we entered

into our Net Lease Joint Venture with a Blackstone-advised investment vehicle to invest in triple net lease properties.

We do not consolidate our Bank Loan Portfolio Joint Venture, our Net Lease Joint Venture, or the BREDS-advised private

fund, as we do not have a controlling financial interest. As of June 30, 2026, the aggregate value of our equity investment

in our Bank Loan Portfolio Joint Venture was $99.8 million and our ownership interest was 35%, and the aggregate value

of our equity investment in our Net Lease Joint Venture was $185.9 million and our ownership interest was 75%. As of

June 30, 2026, we had not made an equity investment in the BREDS-advised private fund. We, these joint ventures, these

Blackstone-advised investment vehicles, and other Blackstone affiliates have engaged and may in the future engage in

certain investment, financing, derivative and/or hedging arrangements related to these unconsolidated entities.

In the second quarter of 2026, one of our senior loans to a borrower controlled by Blackstone-advised investment vehicles

was modified. The terms of the modification (including, among other changes, an extension of the maturity date, a

reduction in the contractual interest rate, and a meaningful additional commitment and credit support from the borrower)

were negotiated by our third-party co-lenders. We continue to forgo all non-economic rights under the loan, including

voting rights, so long as the Blackstone-advised investment vehicles control the borrower.

21. COMMITMENTS AND CONTINGENCIES

Unfunded Commitments Under Loans Receivable

As of June 30, 2026, we had aggregate unfunded commitments of $1.1 billion across 53 loans receivable, and

$680.3 million of committed or identified financings for those commitments, resulting in net unfunded commitments of

$427.4 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 1.7 years.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Principal Debt Repayments

Our contractual principal debt repayments as of June 30, 2026 were as follows ($ in thousands):


Year	Secured Debt(1)	Asset-Specific Debt(1)	Term Loans(2)	Senior Secured Notes	Convertible Notes(3)	Other Secured Debt(4)	Total(5)
2026 (remaining)	$1,168,763	$—	$9,619	$—	$—	$—	$1,178,382
2027	2,235,081	367,814	19,239	335,316	266,157	—	3,223,607
2028	1,337,203	—	19,239	—	—	—	1,356,442
2029	993,380	445,005	453,085	450,000	—	—	2,341,470
2030	2,062,897	159,816	748,851	—	—	38,386	3,009,950
Thereafter	920,027	—	665,000	450,000	—	—	2,035,027
Total obligation	$8,717,351	$972,635	$1,915,033	$1,235,316	$266,157	$38,386	$13,144,878

(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 1.0% per annum of the initial principal balance

due in quarterly installments. Refer to Note 10 for further details on our Term Loans.

(3)Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer

to Note 12 for further details on our Convertible Notes.

(4)Amounts are included in other liabilities on our consolidated balance sheets.

(5)Total does not include $2.7 billion of consolidated securitized debt obligations, as the satisfaction of these liabilities

will not require cash outlays from us.

Board of Directors’ Compensation

As of June 30, 2026, our seven non-employee directors are entitled to annual compensation of $210,000 each, of which

$95,000 is paid in cash and $115,000 is paid in the form of deferred stock units or, at their election, shares of restricted

common stock. As of June 30, 2026, the other two board members are employees of affiliates of our Manager who also

serve as executive officers and they are not compensated by us for their service as directors. In addition, (i) the lead

independent director receives additional annual cash compensation of $30,000, (ii) the chairs of our audit, compensation,

and corporate governance committees receive additional annual cash compensation of $20,000, $15,000, and $10,000,

respectively, and (iii) the members of our audit and investment risk management committees receive additional annual cash

compensation of $10,000 and $7,500, respectively.

Litigation

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of

June 30, 2026, we were not involved in any material legal proceedings.

22. SEGMENT REPORTING

Operating segments are defined as components of a business that can earn revenues and incur expenses for which discrete

financial information is available that is evaluated on a regular basis by the chief operating decision maker, or CODM. Our

CODM is, collectively, our Chief Executive Officer and Chief Financial Officer, who decide how to allocate resources and

assess performance. A single management team reports to the CODM, who manages the entire business.

We have determined that we have one 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.

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us,” or “our” refer to Blackstone Mortgage

Trust, Inc. and its subsidiaries unless the context specifically requires otherwise.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction

with the unaudited consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on

Form 10-Q and with our Annual Report on Form 10-K for the year ended December 31, 2025. In addition to historical

data, this discussion and analysis contains forward-looking statements within the meaning of Section 27A of the Securities

Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the

Exchange Act, which reflect our current views with respect to, among other things, our business, operations and financial

performance. You can identify these forward-looking statements by the use of words such as “intend,” “goal,” “estimate,”

“expect,” “project,” “projections,” “plans,” “seeks,” “anticipates,” “should,” “could,” “may,” “designed to,”

“foreseeable future,” “believe,” “scheduled,” and similar expressions. Such forward-looking statements are subject to

various risks, uncertainties and assumptions. Our actual results or outcomes may differ materially from those in this

discussion and analysis as a result of various factors, including but not limited to those discussed in Item 1A. Risk Factors

in our Annual Report on Form 10-K for the year ended December 31, 2025 and elsewhere in this Quarterly Report on

Form 10-Q.

Introduction