Blackstone Mortgage Trust, Inc. (BXMT) reported significant financial changes in its Q3 2024 10-Q filing, reflecting a challenging market environment. As of September 30, 2024, total assets decreased to $21.4 billion from $24.0 billion at the end of 2023, primarily due to a reduction in loans receivable, which fell from $23.2 billion to $20.6 billion. Cash and cash equivalents also declined from $350.0 million to $322.1 million.
The company experienced a notable drop in revenue, with interest and related income for Q3 2024 at $430.1 million, down from $519.3 million in Q3 2023. For the nine months ended September 30, 2024, total net revenues decreased to $384.1 million from $521.4 million in the same period last year. This decline was attributed to lower income from loans and other investments, which fell to $108.3 million in Q3 2024 from $165.4 million in Q3 2023.
Profitability was adversely affected, resulting in a net loss of $55.8 million for Q3 2024, compared to a net income of $30.6 million in Q3 2023. The nine-month net loss reached $239.2 million, a stark contrast to a net income of $251.6 million in the prior year. The net loss per share for Q3 2024 was $(0.32), down from $0.17 in Q3 2023.
The company’s total liabilities decreased from $19.6 billion to $17.6 billion, while total stockholders’ equity fell from $4.4 billion to $3.9 billion. The Current Expected Credit Loss (CECL) reserves increased significantly, reflecting a proactive approach to managing credit risk, with total reserves reaching $1.0 billion as of September 30, 2024.
Strategically, BXMT made several acquisitions, including an office property in Mountain View, CA, valued at $60.2 million, and a multifamily property in San Antonio, TX, valued at $33.6 million. The company also consolidated an office property in Burlington, MA, with a fair value of $64.6 million. These acquisitions were part of a broader strategy to enhance its real estate portfolio.
In terms of capital management, the board authorized a share repurchase program of up to $150 million in July 2024. During Q3 2024, BXMT repurchased 628,884 shares at an average price of $17.49, totaling $11.0 million, with $139.0 million remaining available for future repurchases.
Overall, Blackstone Mortgage Trust, Inc. is navigating a complex financial landscape, marked by reduced revenues and increased credit loss reserves, while strategically positioning itself through targeted acquisitions and share repurchase initiatives.
About BLACKSTONE MORTGAGE TRUST, INC.
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