Blackstone Mortgage Trust Inc - Class A

Blackstone Mortgage Trust delivered a sharply mixed fourth quarter, posting GAAP EPS of $0.24 against a consensus estimate of $0.41, a miss of 41.46%, even as revenue of $159.32 million cleared expectations by 38.37% and rose 39.2% year over year. The headline earnings shortfall was driven by $433.92 million in CECL reserve charge-offs tied to loan principal deemed non-recoverable, which pushed distributable EPS including charge-offs to a deeply negative $2.07 for the quarter; stripping those out, distributable EPS prior to charge-offs reached $0.51, covering the $0.47 quarterly dividend and signaling underlying earnings power that management argues is improving. Credit quality told a more encouraging story, with the loan portfolio reaching 99% performing status by year-end and impaired loan balances shrinking 96% from their Q3 2024 peak to just $100 million. Some analysts have flagged that dividend sustainability remains sensitive to ongoing credit losses, a risk that lingered even as management pointed to robust capital deployment, balance sheet optimization, and diversified originations across multifamily and industrial assets as drivers of continued positive momentum heading into 2026.