Blackstone Mortgage (079A) Q3 2026 Earnings Report
CH:079A Q3 2026 EPS Results
- Actual EPS
- CHF 0.31
- Consensus EPS
- CHF 0.20
- Beat/Miss
- Beat by +CHF 0.11
- One Year Ago EPS
- CHF 0.20
CH:079A Q3 2026 Revenue Results
- Actual Revenue
- CHF 291.12M
- Expected Revenue
- CHF 121.96M
- Beat/Miss
- Beat by +CHF 169.16M
- YoY Revenue Growth
- -4.89%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
CH:079A Upcoming Earnings
Blackstone Mortgage's next earnings date is estimated for February 10, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
CH:079A Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presented meaningful progress in reducing legacy exposure, lowering the watchlist, collecting repayments, diversifying the portfolio, and maintaining strong liquidity. However, these positives were offset by a 12% decline in book value, a $1.95 per-share GAAP loss, substantial loan and real estate impairments, lower distributable earnings, expected future earnings pressure, and a reduced dividend. Overall, the discussion was balanced, with management expressing confidence in the repositioned portfolio while acknowledging significant legacy asset and rate-related challenges.
Company Guidance
Management expects to meet or potentially exceed the 40% year-end reduction in both office and legacy loans, cover the $0.30 per share dividend next quarter and in full year 2027 despite near term earnings pressure from impaired loans and lower yielding owned real estate assets, and sustain the dividend through a range of credit and rate environments; leverage was 3.9 times debt to equity and management wants to remain within the range, but probably somewhere in the middle of the range, with some modest portfolio runoff in the coming quarter or two, while go forward ROEs on investments are expected to be probably pretty consistent with what has been generated historically.
- Dividend Coverage and Capital Allocation FlexibilityThe board declared a fourth-quarter dividend of $0.30 per share, payable January 15, 2027. Management expects to cover the dividend in the fourth quarter and in full-year 2027, despite near-term earnings pressure, and believes it can be sustained through a range of credit and rate environments.
- Strong Loan Sale and Repayment ActivityBXMT sold nearly $1 billion of loans at a weighted average price of $0.93 on the dollar, including six legacy office loans totaling nearly $500 million and two legacy multifamily loans totaling approximately $200 million. The company received $2.3 billion of repayments, its highest level since the fourth quarter of 2021, with nearly 90% consisting of legacy loans.
- Watchlist ReductionThe watchlist declined by nearly 60% quarter-over-quarter, or 56% according to portfolio reporting, reaching its lowest level since 2019 and since before COVID. Management stated that the reduction was driven in part by loan sales and repayments.
- Progress Toward Legacy Portfolio ReductionIncluding activity through October, management said BXMT is well on its way to meeting or potentially exceeding the targeted 40% year-end reduction in both office and legacy loans.
- Improved Portfolio Mix and DiversificationAt quarter end, BXMT had a $17 billion portfolio, with approximately 50% consisting of post-2023 loan originations rated one through three and recent net lease bank loan portfolio and homebuilder finance investments, up from less than one-third at the beginning of the year.
- Legacy Office Liquidity and PositioningBXMT had $2 billion of legacy office loans rated three or better. During the fourth quarter, $340 million had repaid and another $500 million was in the market for refinancing, representing nearly half of the pool in aggregate. The remaining $1.2 billion had an average in-place debt yield of 12%.
- Multifamily Portfolio ProgressLegacy multifamily loans rated three or better totaled $1.4 billion, down almost 50% from the beginning of the year through $1.1 billion of repayments, including $500 million across five loans in the quarter. Only $200 million, or two loans, had in-place debt yields below 6%, while the rest had a weighted average in-place debt yield of 6.6%.
- Positive Real Estate FundamentalsManagement cited positive fundamentals across several sectors: U.S. office net absorption was positive for the fifth consecutive quarter, new office supply was down nearly 75% from peak, multifamily new supply was down nearly 60% from peak, and national multifamily year-to-date net absorption was at its highest level since 2021.
- Hospitality and Other Legacy Asset Cash FlowThe $1.3 billion legacy hospitality portfolio rated three or better had an average in-place debt yield above 9%. Management also described the remaining legacy loans, including industrial, storage, retail, and a $450 million Spanish mixed-use loan, as primarily cash-flowing assets with continued liquidity.
- New Investment ActivityBXMT closed approximately $500 million of new investments in the third quarter, including $300 million of loan originations focused on newer-vintage multifamily and industrial assets and approximately $150 million across net lease and homebuilder finance strategies.
- Growth in Diversified StrategiesNet lease, homebuilder finance, and bank loan portfolio investments represented nearly 10% of the portfolio, up from zero at the beginning of last year. The average investment size across the total portfolio declined to $18 million from more than $130 million a few years ago.
- Joint Venture Investment GrowthEquity invested in unconsolidated joint ventures increased to $371 million from $322 million in the second quarter and $217 million at year-end, representing a 70% increase year to date. The JVs contributed more than $12 million to distributable earnings in the quarter and more than $29 million since the beginning of the year.
- Liquidity and Debt StructureBXMT ended the quarter with $1.3 billion of liquidity and a debt-to-equity ratio of 3.9 times, unchanged quarter-over-quarter. Upcoming first-quarter 2027 corporate debt maturities have been largely pre-funded, and after repayment BXMT expects nearly four years of weighted average remaining corporate debt term with no maturities until 2029. Non-mark-to-market borrowings represented approximately 89% of total debt.
- Share Repurchases and Valuation OpportunityBXMT repurchased $36 million of stock during the third quarter and had $110 million of remaining authorization. Management said the shares were trading at an additional $1 billion discount to book value and represented an 11% current yield.
- Homebuilder Finance StructureManagement said the homebuilder finance loans were less than 65% loan-to-value on average and generally secured by cross-collateralized portfolios with corporate recourse in most cases. The company views the strategy as a source of diversification and granularity.
- Stable Capital Deployment OpportunityManagement said it continues to see a broad pipeline of opportunities and expects future investment activity to remain focused on diversification, selective deployment, buybacks, and relative value. Expected levered returns on equity were described as fairly consistent with historical levels.
CH:079A Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 10, 2027 | 2026 (Q4) | 0.21- | -1.7 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 0.200.31 | 0.2 | 58.33% (+0.11) | |
| Jul 30, 2026 | 2026 (Q2) | 0.340.25 | 0.16 | 63.16% (+0.10) | |
| Apr 29, 2026 | 2026 (Q1) | 0.310.17 | 0.14 | 23.53% (+0.03) | |
| Feb 11, 2026 | 2025 (Q4) | 0.32-1.70 | -1.03 | -65.60% (-0.67) | |
| Oct 29, 2025 | 2025 (Q3) | 0.300.20 | 0.32 | -38.46% (-0.12) | |
| Jul 30, 2025 | 2025 (Q2) | 0.310.16 | 0.4 | -61.22% (-0.25) | |
| Apr 30, 2025 | 2025 (Q1) | 0.210.14 | 0.27 | -48.48% (-0.13) | |
| Feb 12, 2025 | 2024 (Q4) | -0.85-1.03 | 0.57 | -281.16% (-1.59) | |
| Oct 23, 2024 | 2024 (Q3) | 0.270.32 | 0.64 | -50.00% (-0.32) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed