BXMT 10-Q Quarterly Report June 30, 2025

BLACKSTONE MORTGAGE TRUST, INC.

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bxmt-20250630

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, 2025


☐	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 , 24th Floor

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, 2025 was 171,578,766 .

TABLE OF CONTENTS


		Page
PART I.	FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	3
	Consolidated Financial Statements (Unaudited):
	Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024	3
	Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024	4
	Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2025 and 2024	5
	Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2025 and 2024 and June 30, 2025 and 2024	6
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024	8
	Notes to Consolidated Financial Statements	10
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	58
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	91
ITEM 4.	CONTROLS AND PROCEDURES	93
PART II.	OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	94
ITEM 1A.	RISK FACTORS	94
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	95
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	96
ITEM 4.	MINE SAFETY DISCLOSURES	96
ITEM 5.	OTHER INFORMATION	96
ITEM 6.	EXHIBITS	97
SIGNATURES		98

TABLE OF CONTENTS

Website Disclosure

We use our website (www.blackstonemortgagetrust.com) as a channel of distribution of company information. The

information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in

addition to following our press releases, Securities and Exchange Commission, or SEC, filings and public conference calls,

and webcasts. In addition, you may automatically receive email alerts and other information about Blackstone Mortgage

Trust when you enroll your email address by visiting the “Contact Us and Email Alerts” section of our website at http://

ir.blackstonemortgagetrust.com. The contents of our website and any alerts are not, however, a part of this report.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Blackstone Mortgage Trust, Inc.

Consolidated Balance Sheets (Unaudited)

(in thousands, except share data)


	June 30, 2025	December 31, 2024
Assets
Cash and cash equivalents	$ 388,049	$ 323,483
Loans receivable	19,706,105	19,047,518
Current expected credit loss reserve	( 740,851 )	( 733,936 )
Loans receivable, net	18,965,254	18,313,582
Real estate owned, net	615,217	588,185
Investments in unconsolidated entities (includes $ 55,906 and $ 0 at fair value as of June 30, 2025 and December 31, 2024 , respectively)	108,087	4,452
Other assets	507,834	572,253
Total Assets	$ 20,584,441	$ 19,801,955
Liabilities and Equity
Secured debt, net	$ 10,683,320	$ 9,696,334
Securitized debt obligations, net	2,493,011	1,936,956
Asset-specific debt, net	528,224	1,224,841
Loan participations sold, net	50,000	100,064
Term loans, net	1,726,444	1,732,073
Senior secured notes, net	784,066	771,035
Convertible notes, net	264,181	263,616
Other liabilities	431,658	282,847
Total Liabilities	16,960,904	16,007,766
Commitments and contingencies ( Note 22 )
Equity
Class A common stock, $ 0.01 par value, 400,000,000 shares authorized, 171,593,590 and 172,792,094 shares issued and outstanding as of June 30, 2025 and December 31, 2024 , respectively	1,716	1,728
Additional paid-in capital	5,494,020	5,511,053
Accumulated other comprehensive income	9,798	8,268
Accumulated deficit	( 1,888,762 )	( 1,733,741 )
Total Blackstone Mortgage Trust, Inc. stockholders’ equity	3,616,772	3,787,308
Non-controlling interests	6,765	6,881
Total Equity	3,623,537	3,794,189
Total Liabilities and Equity	$ 20,584,441	$ 19,801,955

Note: The consolidated balance sheets as of June 30, 2025 and December 31, 2024 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, 2025 and December 31,

2024 , assets of the consolidated VIEs totaled $ 3.3 billion and $ 2.4 billion , respectively, and liabilities of the consolidated

VIEs totaled $ 2.5 billion and $ 2.0 billion , respectively. Refer to Note 20 for additional 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,
	2025	2024	2025	2024
Income from loans and other investments
Interest and related income	$ 359,537	$ 466,152	$ 691,594	$ 952,275
Less: Interest and related expenses	264,727	339,380	506,960	683,110
Income from loans and other investments, net	94,810	126,772	184,634	269,165
Revenue from real estate owned	38,812	—	75,845	—
Gain on extinguishment of debt	—	—	—	2,963
Other income	231	—	321	—
Total net revenues	133,853	126,772	260,800	272,128
Expenses
Management and incentive fees	17,036	18,726	34,271	37,653
General and administrative expenses	13,526	13,660	26,190	27,388
Expenses from real estate owned	47,796	963	94,098	963
Total expenses	78,358	33,349	154,559	66,004
Increase in current expected credit loss reserve	( 45,593 )	( 152,408 )	( 95,098 )	( 387,277 )
Loss from unconsolidated entities	( 2,015 )	—	( 2,889 )	—
Income (loss) before income taxes	7,887	( 58,985 )	8,254	( 181,153 )
Income tax provision	903	1,217	1,621	2,219
Net income (loss)	6,984	( 60,202 )	6,633	( 183,372 )
Net income attributable to non-controlling interests	( 15 )	( 855 )	( 21 )	( 1,523 )
Net income (loss) attributable to Blackstone Mortgage Trust, Inc.	$ 6,969	$ ( 61,057 )	$ 6,612	$ ( 184,895 )
Net income (loss) per share of common stock, basic and diluted	$ 0.04	$ ( 0.35 )	$ 0.04	$ ( 1.06 )
Weighted-average shares of common stock outstanding, basic and diluted	171,893,905	173,967,340	171,949,090	174,004,464

See accompanying notes to consolidated financial statements.

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Net income (loss)	$ 6,984	$ ( 60,202 )	$ 6,633	$ ( 183,372 )
Other comprehensive income
Unrealized gain (loss) on foreign currency translation	145,481	3,668	206,382	( 42,064 )
Realized and unrealized (loss) gain on derivative financial instruments	( 143,268 )	( 3,210 )	( 203,663 )	42,938
Unrealized loss on derivative financial instruments from unconsolidated entities	( 1,006 )	—	( 1,189 )	—
Other comprehensive income	1,207	458	1,530	874
Comprehensive income (loss)	8,191	( 59,744 )	8,163	( 182,498 )
Comprehensive income attributable to non- controlling interests	( 15 )	( 855 )	( 21 )	( 1,523 )
Comprehensive income (loss) attributable to Blackstone Mortgage Trust, Inc.	$ 8,176	$ ( 60,599 )	$ 8,142	$ ( 184,021 )

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, 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 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, 2023	$ 1,732	$ 5,507,459	$ 9,454	$ ( 1,150,934 )	$ 4,367,711	$ 19,793	$ 4,387,504
Restricted class A common stock earned	4	7,907	—	—	7,911	—	7,911
Dividends reinvested	—	253	—	—	253	—	253
Deferred directors’ compensation	—	201	—	—	201	—	201
Net (loss) income	—	—	—	( 123,838 )	( 123,838 )	668	( 123,170 )
Other comprehensive income	—	—	416	—	416	—	416
Dividends declared on common stock and deferred stock units, $ 0.62 per share	—	—	—	( 107,901 )	( 107,901 )	—	( 107,901 )
Distributions to non-controlling interests	—	—	—	—	—	( 627 )	( 627 )
Balance at March 31, 2024	$ 1,736	$ 5,515,820	$ 9,870	$ ( 1,382,673 )	$ 4,144,753	$ 19,834	$ 4,164,587
Restricted class A common stock earned	—	7,761	—	—	7,761	—	7,761
Dividends reinvested	—	261	—	—	261	—	261
Deferred directors’ compensation	—	201	—	—	201	—	201
Net (loss) income	—	—	—	( 61,057 )	( 61,057 )	855	( 60,202 )
Other comprehensive income	—	—	458	—	458	—	458
Dividends declared on common stock and deferred stock units, $ 0.62 per share	—	—	—	( 107,873 )	( 107,873 )	—	( 107,873 )
Contributions from non- controlling interests	—	—	—	—	—	1,245	1,245
Distributions to non-controlling interests	—	—	—	—	—	( 1,840 )	( 1,840 )
Balance at June 30, 2024	$ 1,736	$ 5,524,043	$ 10,328	$ ( 1,551,603 )	$ 3,984,504	$ 20,094	$ 4,004,598

See accompanying notes to consolidated financial statements.

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)


	Six Months Ended June 30,
	2025	2024
Cash flows from operating activities
Net income (loss)	$ 6,633	$ ( 183,372 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Non-cash compensation expense	14,268	16,074
Amortization of deferred fees on loans	( 26,838 )	( 33,700 )
Amortization of deferred financing costs and premiums/discounts on debt obligations	18,962	21,494
Payment-in-kind interest	( 8,450 )	( 6,164 )
Increase in current expected credit loss reserve	95,098	387,277
Straight-line rental income	1,716	—
Gain on extinguishment of debt	—	( 2,963 )
Depreciation and amortization of real estate owned	32,918	185
Loss from unconsolidated entities	2,889	—
Unrealized loss on derivative financial instruments, net	3,024	291
Realized gain on derivative financial instruments, net	( 10,634 )	( 9,155 )
Changes in assets and liabilities, net
Other assets	23,881	20,257
Other liabilities	4,282	( 15,431 )
Net cash provided by operating activities	157,749	194,793
Cash flows from investing activities
Principal fundings of loans receivable	( 3,440,030 )	( 626,746 )
Principal collections, sales proceeds, and cost-recovery proceeds from loans receivable	3,408,253	1,413,348
Origination and other fees received on loans receivable	30,475	11,774
Payments under derivative financial instruments	( 127,982 )	( 77,368 )
Receipts under derivative financial instruments	94,364	55,760
Collateral deposited under derivative agreements	( 343,500 )	( 63,110 )
Return of collateral deposited under derivative agreements	261,890	150,710
Investment in unconsolidated entities	( 107,712 )	—
Capital expenditures on real estate owned	( 6,846 )	—
Net cash (used in) provided by investing activities	( 231,088 )	864,368

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,
	2025	2024
Cash flows from financing activities
Borrowings under secured debt	$ 2,525,536	$ 658,123
Repayments under secured debt	( 2,072,147 )	( 1,133,669 )
Proceeds from issuance of securitized debt obligations	831,250	—
Repayments of securitized debt obligations	( 169,926 )	( 179,023 )
Borrowings under asset-specific debt	230,699	121,757
Repayments under asset-specific debt	( 936,274 )	—
Repayments of loan participations	( 54,028 )	( 235,960 )
Repayments and repurchases of term loans	( 3,690 )	( 10,998 )
Repurchases of senior secured notes	—	( 22,984 )
Payment of deferred financing costs	( 28,541 )	( 13,734 )
Contributions from non-controlling interests	—	1,245
Distributions to non-controlling interests	( 137 )	( 2,467 )
Dividends paid on class A common stock	( 161,856 )	( 215,068 )
Repurchases of class A common stock	( 31,686 )	—
Net cash provided by (used in) financing activities	129,200	( 1,032,778 )
Net increase in cash and cash equivalents	55,861	26,383
Cash and cash equivalents at beginning of period	323,483	350,014
Effects of currency translation on cash and cash equivalents	8,705	( 2,521 )
Cash and cash equivalents at end of period	$ 388,049	$ 373,876
Supplemental disclosure of cash flows information
Payments of interest	$ ( 483,544 )	$ ( 667,527 )
Payments of income taxes	$ ( 1,748 )	$ ( 2,020 )
Supplemental disclosure of non-cash investing and financing activities
Dividends declared, not paid	$ ( 80,649 )	$ ( 107,664 )
Loan principal payments held by servicer, net	$ 91,996	$ —
Transfer of senior loan to real estate owned	$ 34,721	$ 60,203
Assumption of other assets and liabilities related to real estate owned	$ 10,323	$ —

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 our credit facilities, issuing collateralized loan obligations, or

CLOs, or single-asset securitizations, asset-specific financings, syndicating senior loan participations, and corporate

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, 24th Floor, 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, 2024 filed with the Securities and Exchange Commission, or the SEC.

Basis of Presentation

The accompanying consolidated financial statements 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.

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.

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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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 curren t

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 . 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 investment 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 the second quarter of 2025, we entered into a joint venture with a Blackstone-advised investment vehicle that acquired a

portfolio of performing commercial mortgage loans, which we refer to as our Bank Loan Portfolio Joint Venture . 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 as an investment 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.

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 REO assets, which is included in revenue from real estate owned on our consolidated

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

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Notes to Consolidated Financial Statements (continued) (Unaudited)

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

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 collectibility 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, 2025 and December 31, 2024 , 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 Financial Accounting Standards Board, or FASB,

Accounting Standards Codification, or 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

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, 2025 . 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,

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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.

• 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, 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 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. However, non-recoverability may also be

concluded if, in our determination, it is nearly certain that all amounts due will not be collected.

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

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

scale, our loans are rated “l” 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, 2025 .

Real Estate Owned

We may assume legal title or physical possession 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. Th ese real estate acquisitions are

classified as real estate owned, or REO, 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.”

Upon acquisition of REO, 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.

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 and 10 years for 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.

Real estate assets are classified as held for sale in the period when they meet the criteria under 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

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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, 2025 , we had eight REO assets which were all classified as held for investment .

Agency Multifamily Lending Partnership

In the second quarter of 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 the 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 “Revenue from Contracts with Customers” Topic of the FASB, 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 will be reevaluated for collectability 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

both June 30, 2025 and December 31, 2024 , our maximum loss-sharing obligation associated with the loans referred by us

to MTRCC under the Fannie Mae program was $ 3.5 million , and we have recorded a related liability of $ 19,000 . There

have been no losses incurred as a result of the loss-sharing obligations.

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 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

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Notes to Consolidated Financial Statements (continued) (Unaudited)

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.

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.

Loan Participations Sold

In certain instances, we have executed a syndication of a non-recourse loan interest to a third party. Depending on the

particular structure of the syndication, the loan interest may remain on our GAAP balance sheet or, in other cases, the sale

will be recognized and the loan interest will no longer be included in our consolidated financial statements. When these

sales are not recognized under GAAP we reflect the transaction by recording a loan participation sold liability on our

consolidated balance sheet, however this gross presentation does not impact stockholders’ equity or net income. When the

sales are recognized, our balance sheet only includes our remaining loan interest, and excludes the interest in the loan that

we sold.

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.

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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

Fair Value Measurements

The “Fair Value Measurements and Disclosures” Topic o f the FASB, 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 19 . 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.

We have elected the FVO for one of our investments in an unconsolidated entity, our Bank Loan Portfolio Joint Venture ,

and therefore report this investment at fair value. Given the fair value of this investment is not readily determinable, the net

asset value of the entity is used as a practical expedient.

As of June 30, 2025 , we had an aggregate $ 558.8 million asset-specific CECL reserve related to 14 of our loans receivable

with an aggregate amortized cost basis of $ 1.6 billion , 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, 2025 . 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 6.00 % to 8.00 % , and the unlevered discount

rate assumption, which ranged from 7.00 % to 15.00 % .

During the six months ended June 30, 2025 , we acquired legal title to one REO asset through a deed-in-lieu of foreclosure

transaction. At the time of acquisition, we determined the fair value of the real estate asset based on a variety of inputs

including, but not limited to, estimated cash flow projections, leasing assumptions, required capital expenditures, market

data, and comparable sales. The REO asset was measured at fair value on a nonrecurring basis using significant

unobservable inputs and is classified as a Level 3 asset in the fair value hierarchy. The significant unobservable inputs

employed include (i) the exit capitalization rate assumption of 8.55 % used to forecast the future sale price of the asset, and

(ii) the unlevered discount rate assumption of 10.55 % . Refer to Note 4 and Note 19 for additional information.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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: The fair value of these instruments was estimated based on the rate at which a similar credit

facility would currently be priced.

• 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

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 17 for additional 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 18 for additional information.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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 15 for additional

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 May 2025, the FASB issued Accounting Standards Update, or ASU, 2025-03, which amends the guidance in ASC 805,

Business Combinations. 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. We have not early

adopted ASU 2024-04 and do not expect the adoption of ASU 2024-04 to 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.

In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax

Disclosures,” or ASU 2023-09. ASU 2023-09 requires additional disaggregated disclosures on an entity’s effective tax rate

reconciliation and additional details on income taxes paid. ASU 2023-09 is effective on a prospective basis, with the option

for retrospective application, for annual periods beginning after December 15, 2024 and early adoption is permitted. We

have not early adopted ASU 2023-09 and do not expect the adoption of ASU 2023-09 to have a material impact on our

consolidated financial statements.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

3. LOANS RECEIVABLE, NET

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


	June 30, 2025	December 31, 2024
Number of loans	144	130
Principal balance	$ 19,874,340	$ 19,203,126
Net book value	$ 18,965,254	$ 18,313,582
Unfunded loan commitments (1)	$ 1,412,084	$ 1,263,068
Weighted-average cash coupon (2)	+ 3.30 %	+ 3.46 %
Weighted-average all-in yield (2)	+ 3.57 %	+ 3.78 %
Weighted-average maximum maturity (years) (3)	2.4	2.1

(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

June 30, 2025 , 98 % of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR .

The remaining 2 % of our loans by principal balance earned a fixed rate of interest. As of December 31, 2024 ,

substantially all of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR. 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, 2025 , 26 % of our loans by principal balance were subject to yield maintenance or other prepayment

restrictions and 74 % were open to repayment by the borrower without penalty. As of December 31, 2024 , 10 % of

our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 90 % 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, 2025 ($ in thousands):


	Loans Receivable Principal Balance
Index Rate Floors	USD	Non-USD (1)	Total
Fixed Rate	$ 179,821	$ 140,066	$ 319,887
0.00% or no floor (2)	2,286,822	5,412,057	7,698,879
0.01% to 1.00% floor	3,787,560	990,685	4,778,245
1.01% to 2.00% floor	640,370	1,384,033	2,024,403
2.01% to 3.00% floor	3,209,355	367,621	3,576,976
3.01% or more floor	1,299,612	176,338	1,475,950
Total (3)	$ 11,403,540	$ 8,470,800	$ 19,874,340

(1) Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, Canadian Dollar, and Swiss Franc

currencies.

(2) Includes all impaired loans.

(3) As of June 30, 2025 , the weighted-average index rate floor of our floating-rate loans receivable principal balance

was 1.11 % . Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was

1.70 % .

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

Activity relating to our loans receivable portfolio was as follows ($ in thousands):


	Principal Balance	Deferred Fees / Other Items (1)	Net Book Value
Loans Receivable, as of December 31, 2024	$ 19,203,126	$ ( 155,608 )	$ 19,047,518
Loan fundings	3,440,030	—	3,440,030
Loan repayments, sales, and cost-recovery proceeds	( 3,406,174 )	( 29,778 )	( 3,435,952 )
Charge-offs	( 114,678 )	27,797	( 86,881 )
Transfer to real estate owned	( 34,721 )	—	( 34,721 )
Transfer to other assets, net (2)	( 11,298 )	—	( 11,298 )
Payment-in-kind interest	8,450	—	8,450
Unrealized gain (loss) on foreign currency translation	789,605	( 2,610 )	786,995
Deferred fees and other items	—	( 34,874 )	( 34,874 )
Amortization of fees and other items	—	26,838	26,838
Loans Receivable, as of June 30, 2025	$ 19,874,340	$ ( 168,235 )	$ 19,706,105
CECL reserve			( 740,851 )
Loans Receivable, net, as of June 30, 2025			$ 18,965,254

(1) Other items primarily consist of purchase and sale discounts or premiums, exit fees, deferred origination expenses,

and cost-recovery proceeds .

(2) This amount relates to intangible and other assets recorded in connection with loans that were transferred to REO,

net of liabilities recorded upon acquisition, if any, and proceeds from loan repayments that are held in escrow, all of

which are included within other assets in our consolidated balance sheets. See Note 6 for further information.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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

($ in thousands):


June 30, 2025
Property Type	Number of Loans	Net Book Value	Net Loan Exposure (1)	Net Loan Exposure Percentage of Portfolio
Office	44	$ 5,855,637	$ 5,195,591	28 %
Multifamily	52	5,139,630	4,958,946	27
Industrial	17	3,425,450	3,392,611	18
Hospitality	17	2,842,904	2,731,203	15
Retail	7	698,410	673,021	4
Self-storage	3	666,400	498,771	3
Life Sciences / Studio	3	341,511	297,484	1
Other	1	736,163	696,789	4
Total loans receivable	144	$ 19,706,105	$ 18,444,416	100 %
CECL reserve		( 740,851 )
Loans receivable, net		$ 18,965,254

Geographic Location	Number of Loans	Net Book Value	Net Loan Exposure (1)	Net Loan Exposure Percentage of Portfolio
United States
Sunbelt	49	$ 5,008,396	$ 4,485,034	24 %
Northeast	23	2,900,363	2,630,050	14
West	23	1,953,102	1,861,649	10
Midwest	9	866,624	723,593	4
Northwest	4	478,745	477,570	3
Subtotal	108	11,207,230	10,177,896	55
International
United Kingdom	18	3,658,916	3,642,741	20
Ireland	3	1,232,664	1,228,094	7
Australia	5	1,064,406	1,072,552	6
Spain	2	747,836	699,814	4
Sweden	1	502,790	502,836	3
Canada	1	459,289	291,680	2
Other Europe	5	772,115	767,881	3
Other International	1	60,859	60,922	—
Subtotal	36	8,498,875	8,266,520	45
Total loans receivable	144	$ 19,706,105	$ 18,444,416	100 %
CECL reserve		( 740,851 )
Loans receivable, net		$ 18,965,254

(1) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of June 30, 2025 ,

which is our principal balance net of (i) $ 529.9 million of asset-specific debt, (ii) $ 109.2 million of cost-recovery

proceeds, (iii) our total loans receivable CECL reserve of $ 740.9 million , and (iv) $ 50.0 million of junior loan

interests that we have sold, but that remain included in our consolidated financial statements . See Note 2 for further

discussion of loan participations sold. Our asset-specific debt and loan participations sold are structurally non-

recourse and term-matched to the corresponding collateral loans.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)


December 31, 2024
Property Type	Number of Loans	Net Book Value	Net Loan Exposure (1)	Net Loan Exposure Percentage of Portfolio
Office	41	$ 7,386,333	$ 5,729,418	33 %
Multifamily	50	5,091,767	4,934,364	29
Hospitality	16	2,768,374	2,663,349	16
Industrial	11	2,030,627	2,000,831	12
Retail	5	555,553	532,069	3
Life Sciences/Studio	3	342,817	337,687	2
Other	4	872,047	836,585	5
Total loans receivable	130	$ 19,047,518	$ 17,034,303	100 %
CECL reserve		( 733,936 )
Loans receivable, net		$ 18,313,582

Geographic Location	Number of Loans	Net Book Value	Net Loan Exposure (1)	Net Loan Exposure Percentage of Portfolio
United States
Sunbelt	44	$ 4,520,632	$ 4,084,242	24 %
Northeast	21	4,614,582	3,452,961	20
West	21	1,865,382	1,746,309	10
Midwest	10	997,156	820,858	5
Northwest	4	432,644	432,794	3
Subtotal	100	12,430,396	10,537,164	62
International
United Kingdom	16	2,916,145	2,839,096	17
Ireland	3	1,050,276	1,048,329	6
Australia	3	920,182	923,507	5
Spain	3	785,368	744,287	4
Sweden	1	429,084	429,724	2
Other Europe	3	455,417	451,245	4
Other International	1	60,650	60,951	—
Subtotal	30	6,617,122	6,497,139	38
Total loans receivable	130	$ 19,047,518	$ 17,034,303	100 %
CECL reserve		( 733,936 )
Loans receivable, net		$ 18,313,582

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

2024 , which is our principal balance net of (i) $ 1.2 billion of asset-specific debt, (ii) $ 106.7 million of cost-recovery

p roceeds, (iii) our total loans receivable CECL reserve of $ 733.9 million , and (iv) $ 100.1 million of junior loan

interests that we have sold, but that remain included in our consolidated financial statements . See Note 2 for further

discussion of loan participations sold. Our asset-specific debt and loan participations sold are structurally non-

recourse and term-matched to the corresponding collateral loans.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

Loan Risk Ratings

As further described in Note 2 , we evaluate our loan portfoli o 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 table allocates the net book value and net loan exposure balances based on our internal risk ratings ($ in

thousands):


	June 30, 2025
Risk Rating	Number of Loans	Net Book Value	Net Loan Exposure (1)
1	8	$ 476,141	$ 475,273
2	17	2,942,069	2,773,722
3	87	11,908,048	11,477,440
4	18	2,788,227	2,682,712
5	14	1,591,620	1,035,269
Total loans receivable	144	$ 19,706,105	$ 18,444,416
CECL reserve		( 740,851 )
Loans receivable, net		$ 18,965,254

	December 31, 2024
Risk Rating	Number of Loans	Net Book Value	Net Loan Exposure (1)
1	11	$ 1,919,280	$ 994,056
2	21	3,346,881	3,349,347
3	65	9,246,692	8,818,346
4	20	2,707,104	2,622,877
5	13	1,827,561	1,249,677
Total loans receivable	130	$ 19,047,518	$ 17,034,303
CECL reserve		( 733,936 )
Loans receivable, net		$ 18,313,582

(1) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of June 30, 2025 ,

which is our principal balance net of (i) $ 529.9 million of asset-specific debt, (ii) $ 109.2 million of cost-recovery

proceeds, (iii) our total loans receivable CECL reserve of $ 740.9 million , and (iv) $ 50.0 million of junior loan

interests that we have sold, but that remain included in our consolidated financial statements . Our net loan exposure

as of December 31, 2024 is our principal balance net of (i) $ 1.2 billion of asset-specific debt, (ii) $ 106.7 million of

cost-recovery proceeds, (iii) our total loans receivable CECL reserve of $ 733.9 million , and (iv) $ 100.1 million of

junior loan interests that we have sold, but that remain included in our consolidated financial statements . Our asset-

specific debt and loan participations sold are structurally non-recourse and term-matched to the corresponding

collateral loans.

Our loan portfolio had a weighted-average risk rating of 3.1 and 3.0 as of June 30, 2025 and December 31, 2024 ,

respectively .

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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 and six months ended June 30,

2025 and 2024 ($ in thousands):


	U.S. Loans (1)	Non-U.S. Loans	Unique Loans	Impaired Loans	Total
Loans Receivable, Net
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

CECL reserves as of December 31, 2023	$ 78,335	$ 31,560	$ 49,371	$ 417,670	$ 576,936
(Decrease) increase in CECL reserves	( 3,807 )	( 770 )	( 5,918 )	245,942	235,447
Charge-offs of CECL reserves	—	—	—	( 61,013 )	( 61,013 )
CECL reserves as of March 31, 2024	$ 74,528	$ 30,790	$ 43,453	$ 602,599	$ 751,370
(Decrease) increase in CECL reserves	( 11,997 )	( 2,639 )	423	169,318	155,105
Charge-offs of CECL reserves	—	—	—	( 12,537 )	( 12,537 )
CECL reserves as of June 30, 2024	$ 62,531	$ 28,151	$ 43,876	$ 759,380	$ 893,938

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

During the three months ended June 30, 2025 , we recorded a net decrease of $ 690,000 in the CECL reserves against our

loans receivable portfolio, primarily driven by a $ 48.4 million increase in our asset-specific CECL reserves, offset by a

$ 4.1 million decrease in our general CECL reserves and charge-offs of our CECL reserves of $ 45.1 million , bringing our

total loans receivable CECL reserve to $ 740.9 million as of June 30, 2025 . The increase in our asset-specific CECL

reserves was primarily as a result of two additional loans that were impaired during the three months ended June 30, 2025 ,

of which one is secured by a life sciences / studio property and the other is secured by an office asset . The office sector is

generally facing reduced tenant and capital markets demand in recent years. Impairments are each determined individually

as a result of changes in the specific credit quality factors for such loans. 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. The income accrual was

suspended on the two loans that were impaired during the three months ended June 30, 2025 , as the recovery of income and

principal was doubtful. During the three months ended June 30, 2025 , we recorded $ 5.3 million of interest income on these

loans. The charge-off of the CECL reserves was a result of a resolution of one previously impaired loan that was repaid

with proceeds from the sale of an office asset in San Jose, CA securing the loan. The decrease in our general CECL

reserves was primarily as a result of a continued improvement in the credit quality of our current portfolio as well as

macroeconomic conditions.

As of June 30, 2025 , we had an aggregate $ 558.8 million asset-specific CECL reserve related to 14 of our loans receivable,

with a total amortized cost basis of $ 1.6 billion , net of cost-recovery proceeds. This CECL reserve was recorded based on

our estimation of the fair value of each loan’s underlying collateral as of June 30, 2025 . No income was recorded on our

impaired loans subsequent to determining that they were impaired. During the three months ended June 30, 2025 , we

received an aggregate $ 10.8 million of cash proceeds from such loans that were applied as a reduction to the amortized cost

basis of each respective loan.

As of June 30, 2025 , one of our performing loans with an amortized cost basis of $ 195.0 million , inclusive of a

$ 50.0 million junior loan participation sold, was past its current maturity date, was greater than 90 days past due on its

interest payment, and had a risk rating of “3.” This loan was not impaired as of June 30, 2025 as the estimated fair value of

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

the underlying collateral exceeded our basis in the loan. Subsequent to June 30, 2025, this loan was repaid in full, including

the junior loan participation sold, with proceeds from a sale of the collateral securing the loan. As of June 30, 2025, 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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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, 2025 and December 31, 2024 , respectively, by year of origination,

investment pool, and risk rating ($ in thousands):


	Net Book Value of Loans Receivable by Year of Origination (1)
	As of June 30, 2025
Risk Rating	2025	2024	2023	2022	2021	Prior	Total
U.S. loans
1	$ —	$ —	$ —	$ 151,479	$ 238,468	$ 86,194	$ 476,141
2	—	60,858	—	197,143	627,773	261,824	1,147,598
3	954,362	271,344	—	1,585,986	2,601,349	794,940	6,207,981
4	—	—	—	364,634	500,100	994,108	1,858,842
5	—	—	—	—	—	—	—
Total U.S. loans	$ 954,362	$ 332,202	$ —	$ 2,299,242	$ 3,967,690	$ 2,137,066	$ 9,690,562
Non-U.S. loans
1	$ —	$ —	$ —	$ —	$ —	$ —	$ —
2	559,630	—	—	577,028	657,813	—	1,794,471
3	1,694,846	—	—	99,853	1,379,437	1,365,949	4,540,085
4	—	—	—	—	—	366,125	366,125
5	—	—	—	—	—	—	—
Total Non-U.S. loans	$ 2,254,476	$ —	$ —	$ 676,881	$ 2,037,250	$ 1,732,074	$ 6,700,681
Unique loans
1	$ —	$ —	$ —	$ —	$ —	$ —	$ —
2	—	—	—	—	—	—	—
3	—	—	—	864,675	—	295,307	1,159,982
4	—	—	—	—	—	563,260	563,260
5	—	—	—	—	—	—	—
Total unique loans	$ —	$ —	$ —	$ 864,675	$ —	$ 858,567	$ 1,723,242
Impaired loans
1	$ —	$ —	$ —	$ —	$ —	$ —	$ —
2	—	—	—	—	—	—	—
3	—	—	—	—	—	—	—
4	—	—	—	—	—	—	—
5	—	—	—	166,893	604,448	820,279	1,591,620
Total impaired loans	$ —	$ —	$ —	$ 166,893	$ 604,448	$ 820,279	$ 1,591,620
Total loans receivable
1	$ —	$ —	$ —	$ 151,479	$ 238,468	$ 86,194	$ 476,141
2	559,630	60,858	—	774,171	1,285,586	261,824	2,942,069
3	2,649,208	271,344	—	2,550,514	3,980,786	2,456,196	11,908,048
4	—	—	—	364,634	500,100	1,923,493	2,788,227
5	—	—	—	166,893	604,448	820,279	1,591,620
Total loans receivable	$ 3,208,838	$ 332,202	$ —	$ 4,007,691	$ 6,609,388	$ 5,547,986	$ 19,706,105
CECL reserve							( 740,851 )
Loans receivable, net							$ 18,965,254

Gross charge-offs (2)	—	—	—	( 166 )	( 44,891 )	( 41,824 )	$ ( 86,881 )

(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, 2025 .

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)


	Net Book Value of Loans Receivable by Year of Origination (1)
	As of December 31, 2024
Risk Rating	2024	2023	2022	2021	2020	Prior	Total
U.S. loans
1	$ —	$ —	$ 151,674	$ 245,289	$ 60,240	$ 1,381,858	$ 1,839,061
2	60,651	—	197,153	1,611,856	—	—	1,869,660
3	268,408	—	1,599,604	2,160,837	691,097	392,470	5,112,416
4	—	—	236,780	1,019,672	—	726,513	1,982,965
5	—	—	—	—	—	—	—
Total U.S. loans	$ 329,059	$ —	$ 2,185,211	$ 5,037,654	$ 751,337	$ 2,500,841	$ 10,804,102
Non-U.S. loans
1	$ —	$ —	$ —	$ 80,219	$ —	$ —	$ 80,219
2	—	—	500,104	787,660	87,629	101,828	1,477,221
3	—	—	594,740	1,126,698	—	1,332,805	3,054,243
4	—	—	—	—	—	198,389	198,389
5	—	—	—	—	—	—	—
Total Non-U.S. loans	$ —	$ —	$ 1,094,844	$ 1,994,577	$ 87,629	$ 1,633,022	$ 4,810,072
Unique loans
1	$ —	$ —	$ —	$ —	$ —	$ —	$ —
2	—	—	—	—	—	—	—
3	—	—	814,225	—	—	265,808	1,080,033
4	—	—	—	—	—	525,750	525,750
5	—	—	—	—	—	—	—
Total unique loans	$ —	$ —	$ 814,225	$ —	$ —	$ 791,558	$ 1,605,783
Impaired loans
1	$ —	$ —	$ —	$ —	$ —	$ —	$ —
2	—	—	—	—	—	—	—
3	—	—	—	—	—	—	—
4	—	—	—	—	—	—	—
5	—	—	170,388	367,030	34,214	1,255,929	1,827,561
Total impaired loans	$ —	$ —	$ 170,388	$ 367,030	$ 34,214	$ 1,255,929	$ 1,827,561
Total loans receivable
1	$ —	$ —	$ 151,674	$ 325,508	$ 60,240	$ 1,381,858	$ 1,919,280
2	60,651	—	697,257	2,399,516	87,629	101,828	3,346,881
3	268,408	$ —	3,008,569	3,287,535	691,097	1,991,083	9,246,692
4	—	—	236,780	1,019,672	—	1,450,652	2,707,104
5	—	—	170,388	367,030	34,214	1,255,929	1,827,561
Total loans receivable	$ 329,059	$ —	$ 4,264,668	$ 7,399,261	$ 873,180	$ 6,181,350	$ 19,047,518
CECL reserve							( 733,936 )
Loans receivable, net							$ 18,313,582

Gross charge-offs (2)	—	—	( 52,045 )	( 255,005 )	—	( 77,553 )	$ ( 384,603 )

(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 year ended December 31, 2024 .

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

Loan Modifications Pursuant to ASC 326

During the twelve months ended June 30, 2025 , we entered into five loan modifications that require disclosure pursuant to

ASC 326. Four of these loans were collateralized by office assets and one was collateralized by a mixed-use asset.

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” have 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, 2025 , no income was recorded on our loans subsequent to determining that

they were impaired and risk rated “ 5 .”

Two of the loan modifications included term extensions combined with other-than-insignificant payment delays. The first

loan modification included a term extension of five years , the borrower repaid $ 6.0 million of principal, and the loan was

bifurcated into a separate senior loan and subordinate loan. We are accruing interest on the senior loan, which is paying

interest current, and deferring interest on the subordinate loan that is paying interest in-kind. The second loan modification

had a term extension of 3.8 years , the loan was bifurcated into a separate senior loan and subordinate loan, and the

borrower paid a $ 1.7 million fee upon closing of the modification . We are accruing interest on the senior loan, which is

paying interest current, and deferring interest on the subordinate loan that is paying interest in-kind. As of June 30, 2025 ,

the aggregate amortized cost basis of these loans was $ 379.1 million , or 1.9 % of our aggregate loans receivable portfolio,

with an aggregate $ 4.7 million of unfunded commitments. These loans were in compliance with their modified contractual

terms as of June 30, 2025 .

The other three loan modifications included term extensions combined with other-than-insignificant payment delays and

interest rate reductions. The first loan modification included a term extension of 4.8 years , the interest rate decreased by

0.10 % , and the loan was bifurcated into a separate senior loan and subordinate loan. The senior loan is paying interest

partially current, and partially in-kind, while the subordinate loan is paying interest in-kind. We are accruing interest on the

portion of the senior loan that is paying current and a portion that is paid in-kind, and deferring interest income recognition

on the remaining portion, including the entire subordinate loan. The second loan modification included a term extension of

one year , the interest rate on the senior loan decreased by 2.43 % , the borrower repaid $ 25.0 million upon closing of the

modification, and the loan was bifurcated into a separate senior loan and subordinate loan. The senior loan is paying

interest partially current, and partially in-kind, while the subordinate loan is paying interest in-kind. We are accruing all of

the interest on the senior loan that is paying partially current and partially in-kind, and deferring interest on the subordinate

loan that is paying interest in-kind. The third 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 income on the subordinate loan, which is paid-

in-kind. As of June 30, 2025 , the aggregate amortized cost basis of these loans was $ 508.5 million , or 2.6 % of our

aggregate loans receivable portfolio, with an aggregate $ 32.7 million of unfunded commitments. These loans were in

compliance with their modified contractual terms as of June 30, 2025 .

All five of these loans had a risk rating of “ 5 ” at the time of modification. In aggregate, these modifications resulted in the

bifurcation of all five loans into separate senior and subordinate loans, or ten loans in aggregate. As of June 30, 2025 , of

the five newly bifurcated senior loans, three loans had a risk rating of “4,” one loan had a risk rating of “3,” and one loan

had a risk rating of “2.” The five newly bifurcated subordinate loans all had a risk rating of “5.”

Multifamily Joint Venture

As discussed in Note 2 , we entered into our Multifamily Joint Venture in April 2017. As of both June 30, 2025 and

December 31, 2024 , our Multifamily Joint Venture held a $ 43.3 million loan, which is included in the loan disclosures

above. As of June 30, 2025 and December 31, 2024 , our Multifamily Joint Venture also held an REO asset with a carrying

value of $ 32.2 million and $ 32.4 million , respectively, which is included in the REO disclosures in Note 4 . Refer to Note 2

for additional discussion of our Multifamily Joint Venture.

4. REAL ESTATE OWNED, NET

As of June 30, 2025 and December 31, 2024 , we had eight and seven REO assets, respectively. During the six months

ended June 30, 2025 , we acquired one REO asset through a deed-in-lieu of foreclosure transaction, with an acquisition

price of $ 45.0 million . We allocated $ 19.7 million to building and building improvements, $ 15.0 million to land and land

improvements, $ 14.5 million to acquired intangible assets, and $( 4.2 ) million to other components of the purchase price.

We charged off $ 41.8 million of CECL reserves relating to the loan that had previously been secured by this asset, as the

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

loan’s carrying value of $ 86.9 million at the time of REO acquisition exceeded the acquisition date fair value noted above.

See Note 2 for additional discussion of REO.

The acquisition of one REO asset during the six months ended June 30, 2025 was accounted for as an asset acquisition

under ASC Topic 805 “Business Combinations,” and we recognized this property as an REO asset held for investment. The

following table presents the REO asset that was acquired during the six months ended June 30, 2025 ($ in thousands):


Acquisition Date	Location	Property Type	Acquisition Date Fair Value
February 2025	Chicago, IL	Office	$ 45,045

The following table presents the REO assets and liabilities included in our consolidated balance sheets ($ in thousands):


	June 30, 2025	December 31, 2024
Assets
Building and building improvements	$ 431,825	$ 410,546
Land and land improvements	200,931	181,083
Total	$ 632,756	$ 591,629
Less: accumulated depreciation	( 17,539 )	( 3,444 )
Real estate owned, net	$ 615,217	$ 588,185

Intangible real estate assets	$ 95,568	$ 83,253
Less: accumulated amortization	( 24,444 )	( 5,964 )
Intangible real estate assets, net (1)	$ 71,124	$ 77,289

Liabilities
Intangible real estate liabilities	$ 1,479	$ 1,422
Less: accumulated amortization	( 233 )	( 1 )
Intangible real estate liabilities, net (2)	$ 1,246	$ 1,421

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

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

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


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Rental income	$ 16,207	$ —	$ 30,541	$ —
Other operating income	22,605	—	45,304	—
Revenue from real estate owned	$ 38,812	$ —	$ 75,845	$ —

Operating expense	$ 31,089	$ 778	$ 61,177	$ 778
Depreciation and amortization expense	16,707	185	32,921	185
Total expenses from real estate owned	$ 47,796	$ 963	$ 94,098	$ 963

Net loss from real estate owned	$ ( 8,984 )	$ ( 963 )	$ ( 18,253 )	$ ( 963 )

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

The following table presents the undiscounted future minimum rents we expect to receive for our office properties as of

June 30, 2025 . Leases at our multifamily assets are short term, generally 12 months or less, and are therefore not included

($ in thousands) :


	Future Minimum Rents
2025 (remaining)	$ 29,993
2026	43,290
2027	31,627
2028	24,867
2029	21,009
Thereafter	40,400
Total	$ 191,186

The following table presents the amortization of lease intangibles for each of the succeeding fiscal years ($ in thousands):


	In-place lease intangibles	Above-market lease intangibles	Below-market lease intangibles
2025 (remaining)	$ 14,621	$ 2,666	$ ( 159 )
2026	17,156	3,447	( 281 )
2027	8,969	2,445	( 253 )
2028	5,788	1,933	( 114 )
2029	4,343	1,304	( 138 )
Thereafter	6,202	2,250	( 301 )
Total	$ 57,079	$ 14,045	$ ( 1,246 )

5. INVESTMENTS IN UNCONSOLIDATED ENTITIES

As of June 30, 2025 , 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 additional details.

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


	June 30, 2025
Investments in Unconsolidated Entities	Number of Assets	Ownership Interest	Book Value
Unconsolidated entities carried at historical cost
Net Lease Joint Venture (1)	53	75 %	$ 52,181
Total unconsolidated entities carried at historical cost	53		52,181
Unconsolidated entities carried at fair value
Bank Loan Portfolio Joint Venture (2)	171	29 %	55,906
Total unconsolidated entities carried at fair value	171		55,906
Total	224		$ 108,087

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

(2) The number of assets represents the number of commercial mortgage loans.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)


	December 31, 2024
Investments in Unconsolidated Entities		Number of Assets	Ownership Interest	Book Value
Unconsolidated entities carried at historical cost
Net Lease Joint Venture		–	75 %	$ 4,452
Total unconsolidated entities carried at historical cost		–		4,452
Total		–		$ 4,452

During the three months ended June 30, 2025 , we contributed $ 24.5 million to our Net Lease Joint Venture , did not receive

any distributions, recorded a $ 318,000 loss from unconsolidated entities in our consolidated statem ents of operations, and

recorded an unrealized loss of $ 1.0 million as a component of accumulated other comprehensive income on our

consolidated balance sheets. During the six months ended June 30, 2025 , we contributed $ 50.1 million to our Net Lease

Joint Venture , did not receive any distributions, recorded a $ 1.2 million loss from unconsolidated entities in our

consolidated statements of operations, and recorded an unrealized loss of $ 1.2 million as a component of accumulated other

comprehensive income on our consolidated balance sheets.

During the three and six months ended June 30, 2025 , we contributed $ 57.6 million to the Bank Loan Portfolio Joint

Venture , did not receive any distributions, and recorded a $ 1.7 million loss from unconsolidated entities in our consolidated

statements of operations, primarily resulting from transaction costs related to the portfolio acquisition in June 2025.

There was no income or loss from unconsolidated entities for the three and six months ended June 30, 2024 .

During the six months ended June 30, 2025 , our Net Lease Joint Venture and Bank Loan Portfolio Joint Venture each

entered 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, 2025	December 31, 2024
Accrued interest receivable	$ 169,849	$ 160,131
Loan portfolio payments held by servicer (1)	94,322	113,199
Collateral deposited under derivative agreements	86,420	4,810
Real estate intangible assets, net	71,124	77,289
Accounts receivable and other assets (2)	57,725	134,030
Other real estate assets	15,492	9,338
Derivative assets	12,267	72,454
Prepaid expenses	635	1,002
Total	$ 507,834	$ 572,253

(1) 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.

(2) Includes $ 46.6 million and $ 95.5 million as of June 30, 2025 and December 31, 2024 , 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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

Other Liabilities

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


	June 30, 2025	December 31, 2024
Derivative liabilities	$ 95,700	$ 5,238
Other real estate liabilities	80,818	72,018
Accrued dividends payable	80,649	81,214
Accrued interest payable	80,024	77,855
Debt repayments pending servicer remittance (1)	48,902	3,742
Accrued management and incentive fees payable	17,036	18,534
Accounts payable and other liabilities	16,816	13,834
Current expected credit loss reserves for unfunded loan commitments (2)	11,713	10,412
Total	$ 431,658	$ 282,847

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

CLO trustee during the subsequent remittance cycle.

(2) Represents the CECL reserve related to our unfunded loan commitments. See Note 2 for further discussion of the

CECL reserves.

Current Expected Credit Loss Reserves for Unfunded Loan Commitments

As of June 30, 2025 , we had aggregate unfunded commitments of $ 1.4 billion related to 58 loans receivable. 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 22 for further discussion of our unfunded loan commitments. 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 . D uring the three and six months ended June 30, 2024 , we recorded decreases in the CECL reserves

related to our unfunded loan commitments of $ 2.7 million and $ 5.4 million , respectively, bringing our total unfunded loan

commitments CECL reserve to $ 9.9 million as of June 30, 2024 .

7. SECURED DEBT, NET

Our secured debt represents borrowings under our secured credit facilities. During the six months ended June 30, 2025 , we

c losed $ 2.0 billion of new borrowings against $ 2.5 billion of collateral assets.

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


	Secured Debt Borrowings Outstanding
	June 30, 2025	December 31, 2024
Secured credit facilities	$ 10,693,596	$ 9,705,529
Deferred financing costs (1)	( 10,276 )	( 9,195 )
Net book value of secured debt	$ 10,683,320	$ 9,696,334

(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.

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 uniformly structured

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

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

credit facilities are diversified across 14 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, 2025 ($ in thousands):


June 30, 2025
							Recourse Limitation
Currency	Lenders (1)	Borrowings	Wtd. Avg. Maturity (2)	Loan Count	Collateral (3)	Wtd. Avg. Maturity (4)	Wtd. Avg.	Range
USD	13	$ 4,451,693	February 2027	87	$ 7,205,566	March 2027	33 %	25 % - 100 %
GBP	6	2,802,902	April 2028	17	3,659,704	May 2028	25 %	25 %
EUR	7	1,936,500	July 2027	11	2,716,669	July 2027	42 %	25 % - 100 %
Others (5)	4	1,502,501	December 2028	7	1,878,126	December 2028	25 %	25 %
Total	14	$ 10,693,596	October 2027	122	$ 15,460,065	October 2027	31 %	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) Represents the principal balance of the collateral loan assets and the book value of the collateral REO assets.

(4) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid

prior to such date.

(5) Includes Australian Dollar, Canadian Dollar, Swedish Krona, and Swiss Franc 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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

The following tables detail the spread of our secured credit facilities as of June 30, 2025 and December 31, 2024 ($ in

thousands):

Six Months Ended

June 30, 2025

Spread (1)

New Financings (2)

Total

Borrowings

Wtd. Avg.

All-in

Cost (1)(3)(4)

Collateral (5)

Wtd. Avg.

All-in

Yield (1)(3)

Net Interest

Margin (6)

+ 1.50% or less

$ 1,330,750

$ 4,676,347

+ 1.54 %

$ 6,862,828

+ 3.06 %

+ 1.52 %

+ 1.51% to + 1.75%

462,809

2,541,857

+ 1.75 %

3,303,560

+ 3.51 %

+ 1.76 %

+ 1.76% to + 2.00%

99,002

1,138,331

+ 2.09 %

1,963,534

+ 3.28 %

+ 1.19 %

+ 2.01% or more

110,597

2,337,061

+ 2.59 %

3,330,143

+ 4.23 %

+ 1.64 %

Total

$ 2,003,158

$ 10,693,596

+ 1.88 %

$ 15,460,065

+ 3.44 %

+ 1.56 %

Year Ended

December 31, 2024

Spread (1)

New Financings (2)

Total

Borrowings

Wtd. Avg.

All-in

Cost (1)(3)(4)

Collateral (5)

Wtd. Avg.

All-in

Yield (1)(3)

Net Interest

Margin (6)

+ 1.50% or less

$ 165,616

$ 3,976,192

+ 1.53 %

$ 6,185,925

+ 3.18 %

+ 1.65 %

+ 1.51% to + 1.75%

74,118

2,238,376

+ 1.78 %

3,140,937

+ 3.52 %

+ 1.74 %

+ 1.76% to + 2.00%

—

969,541

+ 2.09 %

1,802,431

+ 3.67 %

+ 1.58 %

+ 2.01% or more

374,407

2,521,420

+ 2.61 %

3,678,528

+ 4.31 %

+ 1.70 %

Total

$ 614,141

$ 9,705,529

+ 1.92 %

$ 14,807,821

+ 3.58 %

+ 1.66 %

(1) 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.

(2) Represents the amount of new borrowings we closed during the six months ended June 30, 2025 and year ended

December 31, 2024 , respectively.

(3) 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 REO assets.

(4) Represents the weighted-average all-in cost as of June 30, 2025 and December 31, 2024 , respectively, and is not

necessarily indicative of the spread applicable to recent or future borrowings.

(5) Represents the principal balance of the collateral loan assets and the book value of the collateral REO assets.

(6) Represents the difference between the weighted-average all-in yield and weighted-average all-in cost.

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, 2025 , there was an

aggregate $ 697.9 million available to be drawn at our discretion under our credit facilities.

Financial Covenants

As of June 30, 2025 , we are subject to the following financial covenants related to our secured debt: (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 1.25 to 1.0; (ii) our tangible net worth, as defined in the agreements, shall not be less than $ 3.6 billion

as of each measurement date plus 75 % to 85 % of the net cash proceeds of future equity issuances subsequent to June 30,

2025 ; (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, 2025 and December 31,

2024 , we were in compliance with these covenants.

During 2024 , the financial covenant under each applicable secured debt agreement related to the ratio of our EBITDA to

fixed charges, as noted above, was amended so that the ratio shall be not less than 1.25 to 1.0 with respect to each of the

four fiscal quarters beginning with the quarter ended September 30, 2024 , and shall be not less than 1.3 to 1.0 thereafter.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

8. SECURITIZED DEBT OBLIGATIONS, NET

We have financed certain pools of our loans through collateralized loan obligations, or CLOs. The CLOs are consolidated

in our financial statements and have issued securitized debt obligations that are non-recourse to us. Refer to Note 20 for

further discussion of our CLOs. The following tables detail our securitized debt obligations and the underlying collateral

assets that are financed by our CLOs ($ in thousands):


	June 30, 2025
Securitized Debt Obligations		Count	Principal Balance	Book Value (1)	Wtd. Avg. Yield/Cost (2)(3)	Term (4)
2025 FL5 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	$ 831,250	$ 821,427	+ 2.15 %	October 2042
Underlying Collateral Assets		19	997,805	997,805	+ 3.44 %	July 2028
2021 FL4 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	621,149	621,149	+ 1.44 %	May 2038
Underlying Collateral Assets		19	768,996	768,996	+ 2.86 %	December 2026
2020 FL3 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	464,258	464,258	+ 2.50 %	November 2037
Underlying Collateral Assets		12	624,917	624,917	+ 2.79 %	February 2027
2020 FL2 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	586,177	586,177	+ 1.76 %	February 2038
Underlying Collateral Assets		12	813,168	813,168	+ 2.72 %	February 2027
Total
Senior CLO Securities Outstanding (5)		4	$ 2,502,834	$ 2,493,011	+ 1.95 %
Underlying Collateral Assets		62	$ 3,204,886	$ 3,204,886	+ 3.15 %

(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 SOFR . All-in yield excludes loans

accounted for under the cost-recovery and nonaccrual methods, if any, and REO assets.

(4) Underlying Collateral Assets term represents the weighted-average final maturity of such loans, assuming all

extension options are exercised by the borrower, and excludes REO 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.

(5) During the three and six months ended June 30, 2025 , we recorded $ 40.3 million and $ 67.9 million , respectively, of

interest expense related to our securitized debt obligations.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)


	December 31, 2024
Securitized Debt Obligations		Count	Principal Balance	Book Value (1)	Wtd. Avg. Yield/Cost (2)(3)	Term (4)
2021 FL4 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	$ 785,453	$ 785,442	+ 1.39 %	May 2038
Underlying Collateral Assets		22	952,764	952,764	+ 2.95 %	August 2026
2020 FL3 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	552,664	552,663	+ 1.92 %	November 2037
Underlying Collateral Assets		12	743,914	743,914	+ 2.92 %	June 2026
2020 FL2 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1	598,850	598,851	+ 1.50 %	February 2038
Underlying Collateral Assets		12	855,725	855,725	+ 2.79 %	August 2026
Total
Senior CLO Securities Outstanding (5)		3	$ 1,936,967	$ 1,936,956	+ 1.57 %
Underlying Collateral Assets		46	$ 2,552,403	$ 2,552,403	+ 2.98 %

(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 SOFR . All-in yield excludes loans

accounted for under the cost-recovery and nonaccrual methods, if any.

(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) During the three and six months ended June 30, 2024 , we recorded $ 40.2 million and $ 81.7 million , respectively, of

interest expense related to our securitized debt obligations.

9. ASSET-SPECIFIC DEBT, NET

The following table details our asset-specific debt ($ in thousands):


	June 30, 2025
Asset-Specific Debt		Count	Principal Balance	Book Value (1)	Wtd. Avg. Yield/Cost (2)	Wtd. Avg. Term (3)
Financing provided		2	$ 529,867	$ 528,224	+ 3.36 %	September 2029
Collateral assets		2	$ 656,019	$ 650,846	+ 4.58 %	September 2029

	December 31, 2024
Asset-Specific Debt		Count	Principal Balance	Book Value (1)	Wtd. Avg. Yield/Cost (2)	Wtd. Avg. Term (3)
Financing provided		2	$ 1,228,110	$ 1,224,841	+ 3.20 %	June 2026
Collateral assets		2	$ 1,467,185	$ 1,459,864	+ 4.03 %	June 2026

(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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

10. LOAN PARTICIPATIONS SOLD, NET

The sale of a non-recourse interest in a loan through a participation agreement generally does not qualify for sale

accounting under GAAP. For such transactions, we therefore present the whole loan as an asset and the loan participation

sold as a liability on our consolidated balance sheet until the loan is repaid. We generally have no obligation to pay

principal and interest under these liabilities, and the gross presentation of loan participations sold does not impact our

stockholders’ equity or net income.

The following table details our loan participations sold ($ in thousands):


	June 30, 2025
Loan Participations Sold		Count	Principal Balance	Book Value (1)	Wtd. Avg. Yield/Cost (2)	Term (3)
Junior Participations
Loan Participation (4)		1	$ 50,000	$ 50,000	+ 6.50 %	October 2026
Total Loan		1	195,000	195,000	+ 8.86 %	October 2026


	December 31, 2024
Loan Participations Sold		Count	Principal Balance	Book Value (1)	Wtd. Avg. Yield/Cost (2)	Term (3)
Junior Participations
Loan Participation (4)		2	$ 100,064	$ 100,064	+ 9.75 %	February 2026
Total Loan		2	442,142	442,008	+ 6.14 %	February 2026

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

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

SOFR and SONIA, as applicable. This non-debt participation sold structure is inherently matched in terms of

currency and interest rate. In addition to cash coupon, yield/cost includes the amortization of deferred fees and

financing costs.

(3) The term is determined based on the maximum maturity of the loan, assuming all extension options are exercised by

the borrower. Our loan participations sold are inherently non-recourse and term-matched to the corresponding loan.

(4) During the three and six months ended June 30, 2025 , we recorded $ 2.4 million and $ 5.4 million , respectively, of

interest expense related to our loan participations sold. During the year ended December 31, 2024 , we recorded

$ 22.6 million of interest expense related to our loan participations sold .

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

11. TERM LOANS, NET

During the three months ended June 30, 2025 , we borrowed an additional $ 1.0 billion under the B-6 Term Loan. The B-6

Term Loan bears interest at SOFR plus 3.00 % and matures in December 2030 . The proceeds from the B-6 Term Loan were

used to repay $ 400.0 million of the outstanding B-4 Term Loan and all $ 648.4 million in principal outstanding under the

B-5 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, 2025	December 31, 2024	Interest Rate (1)	All-in Cost (1)(2)	Maturity
B-1 Term Loan	$ 309,268	$ 309,268	+ 2.36 %	+ 2.53 %	April 23, 2026
B-4 Term Loan	403,105	805,169	+ 3.50 %	+ 3.99 %	May 9, 2029
B-5 Term Loan	—	650,000	+ 3.75 %	+ 4.27 %	December 10, 2028
B-6 Term Loan	1,048,375	—	+ 3.00 %	+ 3.55 %	December 10, 2030
Total face value	$ 1,760,748	$ 1,764,437
Deferred financing costs and unamortized discounts	( 34,304 )	( 32,364 )
Net book value	$ 1,726,444	$ 1,732,073

(1) The B-4 Term Loan and the B-6 Term Loan borrowings are subject to a 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

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 .

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


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Cash coupon	$ 34,096	$ 44,242	$ 68,144	$ 88,666
Discount and issuance cost amortization	1,886	2,283	4,068	4,565
Total interest expense	$ 35,982	$ 46,525	$ 72,212	$ 93,231

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

June 30, 2025 and December 31, 2024 , we were in compliance with this covenant. Refer to Note 2 for additional discussion

of our accounting policies for the Term Loans.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

12. SENIOR SECURED NOTES, NET

The following table details the net book value of our senior secured notes, or Senior Secured Notes, on our consolidated

balance sheets ($ in thousands):


	Face Value
Senior Secured Notes Issuance	June 30, 2025	December 31, 2024	Interest Rate		All-in Cost (1)	Maturity
October 2021	$ 335,316	$ 335,316	3.75 %		4.06 %	January 15, 2027
December 2024	450,000	450,000	7.75 %	(2)	8.14 %	December 1, 2029
Total face value	$ 785,316	$ 785,316
Deferred financing costs and unamortized discounts	( 8,590 )	( 9,857 )
Hedging adjustments (3)	7,340	( 4,424 )
Net book value	$ 784,066	$ 771,035

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

(2) Represents the stated coupon rate of the notes. We have entered into an interest rate swap that effectively converts

our fixed rate exposure to a SOFR + 3.95% floating rate exposure.

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

December 2024 Senior Secured Notes into floating rate. Refer to Note 14 for additional 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,
	2025	2024	2025	2024
Cash coupon	$ 11,862	$ 3,187	$ 23,725	$ 6,541
Discount and issuance cost amortization	651	254	1,349	521
Total interest expense	$ 12,513	$ 3,441	$ 25,074	$ 7,062

There was no repurchase activity or gain on debt extinguishment during the six months ended June 30, 2025 . During the

six months ended June 30, 2024 , we repurchased an aggregate principal amount of $ 26.2 million of the October 2021

Senior Secured Notes at a weighted-average price of 88 % of par. This resulted in a gain on extinguishment of debt of

$ 3.0 million during the six months ended June 30, 2024 .

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

As of June 30, 2025 and December 31, 2024 , 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) (Unaudited)

13. 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, 2025	December 31, 2024	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	( 1,976 )	( 2,541 )
Net book value	$ 264,181	$ 263,616

(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, 2025 .

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 $ 19.25 on June 30, 2025 , the last trading day in the six months ended June 30,

2025 , 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,
	2025	2024	2025	2024
Cash coupon	$ 3,660	$ 4,125	$ 7,319	$ 8,250
Discount and issuance cost amortization	282	319	565	639
Total interest expense	$ 3,942	$ 4,444	$ 7,884	$ 8,889

Accrued interest payable for the Convertible Notes was $ 4.3 million as of both June 30, 2025 and December 31, 2024 .

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

14. 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 ASC 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 additional 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.

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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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, 2025			December 31, 2024
Foreign Currency Derivatives	Number of Instruments	Notional Amount	Foreign Currency Derivatives	Number of Instruments	Notional Amount
Buy USD / Sell SEK Forward	3	kr 990,635	Buy USD / Sell SEK Forward	2	kr 971,180
Buy USD / Sell GBP Forward	13	£ 655,443	Buy USD / Sell GBP Forward	5	£ 604,739
Buy USD / Sell EUR Forward	10	€ 677,316	Buy USD / Sell EUR Forward	8	€ 603,910
Buy USD / Sell AUD Forward	4	A$ 349,343	Buy USD / Sell AUD Forward	6	A$ 355,703
Buy USD / Sell CAD Forward	3	C$ 121,887	Buy USD / Sell CHF Forward	1	CHF 6,752
Buy USD / Sell CHF Forward	1	CHF 6,752

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, 2025			December 31, 2024
Non-designated Hedges	Number of Instruments	Notional Amount	Non-designated Hedges	Number of Instruments	Notional Amount
Buy GBP / Sell USD Forward	4	£ 139,800	Buy GBP / Sell USD Forward	3	£ 54,400
Buy USD / Sell GBP Forward	4	£ 139,800	Buy USD / Sell GBP Forward	3	£ 54,400
Buy EUR / Sell USD Forward	3	€ 22,800
Buy USD / Sell EUR Forward	3	€ 22,800
Buy AUD / Sell USD Forward	1	A$ 26,000
Buy USD / Sell AUD Forward	1	A$ 26,000

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, 2025
Interest Rate Derivatives	Number of Instruments	Notional Amount	Fixed Rate	Index	Maturity (Years)
Interest Rate Swaps	1	$ 450,000	3.81 %	SOFR	4.4

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)


December 31, 2024
Interest Rate Derivatives	Number of Instruments	Notional Amount	Fixed Rate	Index	Maturity (Years)
Interest Rate Swaps	1	$ 450,000	3.81 %	SOFR	4.9

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

hedges ($ in thousands):


June 30, 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	$ 450,292	$ 7,340


December 31, 2024
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	$ 437,759	$ ( 4,424 )

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

The following table presents th e 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	2025	2024	2025	2024
Designated Hedges	Interest Income (1)	$ 4,694	$ 4,455	$ 7,645	$ 8,867
Designated Hedges	Interest Expense (2)	( 625 )	420	( 1,210 )	845
Non-Designated Hedges	Interest Income (1)	( 50 )	( 4 )	( 50 )	( 10 )
Non-Designated Hedges	Interest Expense (3)	( 1,931 )	—	( 1,928 )	7
Total		$ 2,088	$ 4,871	$ 4,457	$ 9,709

(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 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, and the spot rate movement

in our non-designated foreign currency hedges, which are marked to market and recognized in interest expense.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

Fair Value Hedges

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

relationships fo r the three and six months ended June 30, 2025 ( $ in thousands):


	Three Months Ended June 30, 2025	Six Months Ended June 30, 2025
Total interest and related expenses presented in the consolidated statements of operations	$ 264,727	$ 506,960
Gains (losses) on fair value hedging relationships
Total gain on derivative instruments	$ 9,124	$ 12,288
Fair value basis adjustment on hedged items	( 4,231 )	( 7,340 )
Derivative settlements and accruals	624	1,442
Net Gain on Fair Value Hedging Relationships (1)	$ 5,517	$ 6,390

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

There were no fair value hedges outstanding during the six months ended June 30, 2024 .

Valuation and Other Comprehensive Income

The following table summarizes the fair value of our derivative financial instruments ($ in thousands):


	Fair Value of Derivatives in an Asset Position (1) as of		Fair Value of Derivatives in a Liability Position (2) as of
	June 30, 2025	December 31, 2024	June 30, 2025	December 31, 2024
Derivatives designated as hedging instruments
Foreign exchange contracts	$ 11	$ 69,433	$ 84,352	$ —
Interest rate derivatives	7,398	—	—	4,386
Total derivatives designated as hedging instruments	$ 7,409	$ 69,433	$ 84,352	$ 4,386
Derivatives not designated as hedging instruments
Foreign exchange contracts	$ 4,858	$ 3,021	$ 11,348	$ 852
Interest rate derivatives	—	—	—	—
Total derivatives not designated as hedging instruments	$ 4,858	$ 3,021	$ 11,348	$ 852
Total Derivatives	$ 12,267	$ 72,454	$ 95,700	$ 5,238

(1) Included in other assets in our consolidated balance sheets.

(2) Included in other liabilities in our consolidated balance sheets.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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, 2025	Six Months Ended June 30, 2025		Three Months Ended June 30, 2025	Six Months Ended June 30, 2025
Net Investment Hedges
Foreign exchange contracts (1)	$ ( 143,268 )	$ ( 203,663 )	Interest Expense	$ —	$ —
Total	$ ( 143,268 )	$ ( 203,663 )		$ —	$ —

(1) During the three months ended June 30, 2025 , we paid net cash settlements of $ 114.1 million on our foreign

currency forward contracts. During the six months ended June 30, 2025 , we paid net cash settlements of

$ 33.6 million on our foreign currency forward contracts. Those amounts are included as a component of

accumulated other comprehensive income on our consolidated balance sheets.

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, 2025 , we were in a

net liability position with our counterparties related to our foreign exchange hedges and had $ 86.4 million of collateral

posted with two counterparties. As of December 31, 2024 , we were in a net asset position with our counterparties related to

our foreign exchange hedges and had $ 4.8 million of collateral posted with one counterparty related to our interest rate

swap.

15. EQUITY

Stock and Stock Equivalents

Authorized Capital

As of June 30, 2025 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, 2025 and December 31, 2024 , we did not have any shares of preferred stock issued and

outstanding.

Share Repurchase Program

In July 2024, our board of directors authorized the repurchase of up to $ 150.0 million of our class A common stock. Under

the 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, 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, 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 . We did no t have any repurchases of class A common

stock during the six months ended June 30, 2024 . As of June 30, 2025 , the amount remaining available for repurchases

under the program was $ 89.2 million .

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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 18 for additional

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)	2025	2024
Beginning balance	173,204,190	173,569,397
Issuance of class A common stock (2)	1,778	3,165
Repurchase of class A common stock	( 1,794,936 )	—
Issuance of restricted class A common stock, net (3)(4)	482,004	406,400
Issuance of deferred stock units	24,431	29,649
Ending balance	171,917,467	174,008,611

(1) Includes 323,877 and 389,113 deferred stock units held by members of our board of directors as of June 30, 2025

and 2024 , respectively.

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

2024 , respectively.

(3) Includes 29,140 and 41,282 shares of restricted class A common stock issued to our board of directors during the six

months ended June 30, 2025 and 2024 , respectively

(4) Net of 29,008 and 97,985 shares of restricted class A common stock forfeited under our stock-based incentive plans

during the six months ended June 30, 2025 and 2024 , 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 this 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 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, 2025 and 2024 , we issued 1,778 shares and 3,165 shares, respectively, of class A common stock under the

dividend reinvestment component of the plan. As of June 30, 2025 , a total of 9,967,334 shares of class A common stock

remained available under the dividend reinvestment and direct stock purchase plan.

At the Market Stock Offering Program

As of June 30, 2025 , 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, 2025 or June 30, 2024 , we did no t issue any shares of our class A common stock under ATM Agreements. As of

June 30, 2025 , sales of our class A common stock with an aggregate sales price of $ 480.9 million remained available for

issuance under our ATM Agreements.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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 13, 2025 , we declared a dividend of $ 0.47 per share, or $ 80.6 million in aggregate, that was paid on July 15, 2025

to stockholders of record as of June 30, 2025 .

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


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Dividends declared per share of common stock	$ 0.47	$ 0.62	$ 0.94	$ 1.24
Class A common stock dividends declared	$ 80,649	$ 107,644	$ 161,293	$ 215,322
Deferred stock unit dividends declared	147	229	340	452
Total dividends declared	$ 80,796	$ 107,873	$ 161,633	$ 215,774

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.

The following table sets forth the c alculation 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,
	2025	2024	2025	2024
Basic and Diluted Earnings
Net income (loss) (1)	$ 6,969	$ ( 61,057 )	$ 6,612	$ ( 184,895 )
Weighted-average shares outstanding, basic and diluted (2)	171,893,905	173,967,340	171,949,090	174,004,464
Per share amount, basic and diluted	$ 0.04	$ ( 0.35 )	$ 0.04	$ ( 1.06 )

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

(2) For both the three and six months ended June 30, 2025 and June 30, 2024 , our Convertible Notes were no t included

in the calculation of diluted earnings per share, as the impact is antidilutive . Refer to Note 13 for further discussion

of our convertible notes.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

Other Balance Sheet Items

Accumulated Other Comprehensive Income

As of June 30, 2025 , total accumulated other comprehensive income was $ 9.8 million , representing $ 68.4 million of net

realized and unrealized gains related to changes in the fair value of derivative instruments and $ 1.2 million of unrealized

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

$ 57.5 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign

currencies. As of December 31, 2024 , total accumulated other comprehensive income was $ 8.3 million , primarily

representing $ 272.1 million of net realized and unrealized gains related to changes in the fair value of derivative

instruments offset by $ 263.9 million of cumulative unrealized currency translation adjustments on assets and liabilities

denominated in foreign currencies.

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, 2025 , our Multifamily Joint Venture’s total equity was $ 45.1 million , of which $ 38.3 million was

owned by us, and $ 6.8 million was allocated to non-controlling interests. As of December 31, 2024 , our Multifamily Joint

Venture’s total equity was $ 45.9 million , of which $ 39.0 million was owned by us, and $ 6.9 million was allocated to non-

controlling interests.

16. 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.

During the three and six months ended June 30, 2025 , we incurred $ 17.0 million and $ 34.3 million , respectively, of

management fees payable to our Manager compared with $ 18.7 million and $ 37.7 million , respectively, during the same

periods in 2024 . During the three and six months ended June 30, 2025 and 2024 , we did not incu r any incentive fees

payable to our Manager.

As of June 30, 2025 and December 31, 2024 , we had accrued management fees payable to our Manager of $ 17.0 million

and $ 18.5 million , respectively.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

General and Administrative Expenses

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


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Professional services	$ 4,281	$ 3,817	$ 8,192	$ 7,957
Operating and other costs	1,942	1,881	3,730	3,357
Subtotal (1)	6,223	5,698	11,922	11,314
Non-cash compensation expenses
Restricted class A common stock earned	7,131	7,761	13,923	15,672
Director stock-based compensation	172	201	345	402
Subtotal	7,303	7,962	14,268	16,074
Total general and administrative expenses	$ 13,526	$ 13,660	$ 26,190	$ 27,388

(1) During the three and six months ended June 30, 2025 , we recognized an aggregate $ 106,000 and $ 192,000 ,

respectively, of expense related to our Multifamily Joint V enture , compared to $ 320,000 and $ 543,000 , respectively,

during the same periods in 2024 .

17. 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, 2025 and December 31, 2024 , 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, 2025 , we recorded a current income tax provision of $ 903,000 and

$ 1.6 million , respectively, primarily related to activities of our U.S. and foreign taxable subsidiaries and various state and

local taxes. During the three and six months ended June 30, 2024 , we recorded a current income tax provision of

$ 1.2 million and $ 2.2 million , respectively, 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, 2025 or December 31,

2024 .

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

Internal Revenue Service with respect to the ownership of Blackstone Mortgage Trust. As of June 30, 2025 , we had

estimated NOLs of $ 159.0 million that will expire in 2029 , unless they are utilized by us prior to expiration. Previously, we

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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, 2025 , tax years 2021 through 2024 remain subject to examination by taxing authorities.

18. STOCK-BASED INCENTIVE PLANS

We are externally managed by our Manager and do not currently have any employees. However, as of June 30, 2025 , 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, 2025 , there

were 5,973,235 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, 2024	2,142,759	$ 21.13
Granted	511,012	17.88
Vested	( 691,323 )	21.14
Forfeited	( 29,008 )	19.75
Balance as of June 30, 2025	1,933,440	$ 20.29

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 1,933,440 shares of restricted class A common stock

outstanding as of June 30, 2025 will vest as follows: 618,973 shares will vest in 2025 ; 884,967 shares will vest in 2026 ;

and 429,500 shares will vest in 2027 . As of June 30, 2025 , total unrecognized compensation cost relating to unvested

share-based compensation arrangements was $ 37.5 million based on the grant date fair value of shares granted. This cost is

expected to be recognized over a weighted-average period of 1.0 year from June 30, 2025 .

19. 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, 2025				December 31, 2024
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Assets
Derivatives	$ —	$ 12,267	$ —	$ 12,267	$ —	$ 72,454	$ —	$ 72,454
Liabilities
Derivatives	$ —	$ 95,700	$ —	$ 95,700	$ —	$ 5,238	$ —	$ 5,238

This table excludes $ 55.9 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 June 30, 2025 . No assets were measured at

fair value using net asset value as a practical expedient as of December 31, 2024 . Refer to Note 5 for additional

information.

Refer to Note 2 for further discussion regarding fair value measurement.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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, 2025			December 31, 2024
	Book Value	Face Amount	Fair Value	Book Value	Face Amount	Fair Value
Financial assets
Cash and cash equivalents	$ 388,049	$ 388,049	$ 388,049	$ 323,483	$ 323,483	$ 323,483
Loans receivable, net	18,965,254	19,874,340	18,942,580	18,313,582	19,203,126	18,288,958
Financial liabilities
Secured debt, net	10,683,320	10,693,596	10,568,791	9,696,334	9,705,529	9,590,400
Securitized debt obligations, net	2,493,011	2,502,834	2,464,198	1,936,956	1,936,967	1,838,089
Asset-specific debt, net	528,224	529,867	519,637	1,224,841	1,228,110	1,218,639
Loan participations sold, net	50,000	50,000	50,000	100,064	100,064	99,822
Secured term loans, net	1,726,444	1,760,748	1,761,199	1,732,073	1,764,437	1,765,668
Senior secured notes, net	784,066	785,316	803,996	771,035	785,316	780,931
Convertible notes, net	264,181	266,157	260,996	263,616	266,157	257,707

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.

20. VARIABLE INTEREST ENTITIES

We have financed a portion of our loans through the CLOs, all of which are VIEs. We are the primary beneficiary of, and

therefore consolidate, the CLOs on our balance sheet as we (i) control the relevant interests of the CLOs that give us power

to direct the activities that most significantly affect the CLOs, and (ii) have the right to receive benefits and obligation to

absorb losses of the CLOs through the subordinate interests we own.

During 2024 , we modified two loa ns that included, among other changes, an equit y interest in and/or control over decision-

making at the property. As a result of the modification, our investments in these loans are VIEs. As of June 30, 2025 , 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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

The following table details the assets and liabilities of our consolidated VIEs ($ in thousands):


	June 30, 2025	December 31, 2024
Assets
Cash and cash equivalents	$ 16,188	$ 9,145
Loans receivable	3,095,480	2,338,201
Current expected credit loss reserve	( 154,384 )	( 202,400 )
Loans receivable, net	2,941,096	2,135,801
Real estate owned, net	212,658	177,322
Other assets	127,188	126,518
Total assets	$ 3,297,130	$ 2,448,786
Liabilities
Securitized debt obligations, net	$ 2,493,011	$ 1,936,956
Other liabilities	15,032	13,277
Total liabilities	$ 2,508,043	$ 1,950,233

Assets held by these VIEs are restricted and can be used only to settle obligations of the VIEs, including the subordinate

interests 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.

21. 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, 2025 , and will be automatically renewed for a one -year term upon such date and each

anniversary thereafter unless earlier terminated.

As of June 30, 2025 and December 31, 2024 , our consolidated balance sheets included $ 17.0 million and $ 18.5 million ,

respectively, of accrued management fees payable to our Manager. During the three and six months ended June 30, 2025 ,

we paid management fees of $ 17.2 million and $ 35.8 million , respectively, to our M anager , compared to $ 18.9 million and

$ 45.3 million , respectively , during the same periods in 2024 . In addition, during the three and six months ended June 30,

2025 , we incurred expenses of $ 156,000 and $ 420,000 , respectively, that were paid by our Manager and have been or will

be reimbursed by us, compared to $ 829,000 and $ 1.1 million , respectively, of such expenses during the same periods in

2024 .

As of June 30, 2025 , our Manager held 992,441 shares of unvested restricted class A common stock, which had an

aggregate grant date fair value of $ 20.7 million . These shares vest in installments over three years from the date of

issuance. During the three and six months ended June 30, 2025 , we recorded non-cash expenses related to shares held by

our Manager of $ 3.6 million and $ 7.2 million , respectively, compared to $ 4.2 million and $ 8.5 million , respectively, during

the same periods in 2024 . Refer to Note 18 for further details on our restricted class A common stock.

As of June 30, 2025 , our Manager, its affiliates (including Blackstone and Blackstone-advised investment vehicles),

Blackstone employees, and our directors held an aggregate 13,256,488 shares, or 7.7 % , of our class A common stock, of

which 8,234,581 shares, or 4.8 % , were held by Blackstone and its subsidiaries . Additionally, our directors held 323,877 of

deferred stock units as of June 30, 2025 . 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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

Affiliate Services

We have engaged certain portfolio companies owned by Blackstone-advised investment vehicles 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,
	Asset Class	2025	2024	2025	2024
Brio Real Estate Services, LLC, Brio Real Estate (UK) Ltd., and Brio Real Estate (AUS) Pty Ltd. (1)	n/a	$ 1,101	$ —	$ 1,101	$ —
Revantage Corporate Services, LLC and Revantage Global Services Europe S.à r.l. (1)	n/a	381	309	343	560
Perform Properties, LLC (2)(3)	Office	319	44	894	44
LivCor, LLC (2)	Multifamily	117	—	276	—
BRE Hotels & Resorts, LLC (2)	Hospitality	380	—	869	—
LendingOne, LLC (4)	Multifamily	158	—	158	—
Total		$ 2,456	$ 353	$ 3,641	$ 604

(1) As applicable, provides management support, operational support, corporate support, and transaction support

services to certain of our investments directly.

(2) As applicable, provides management support, operational support, and corporate support services to certain of our

REO assets directly.

(3) Successor entity to EQ Management, LLC that provides the same services.

(4) Provides loan origination services related to certain of our investments.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

We have engaged affiliates of our Manager to provide various services noted below. The following table details the costs

incurred (refunded) for these services ($ in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
BTIG, LLC (1)	$ —	$ —	$ —	$ 40
Gryphon Mutual Property Americas IC (2)	601	85	1,148	85
Blackstone internal audit services	( 111 )	24	—	48
Lexington National Land Services (3)	46	—	46	—
Blackstone Securities Partners L.P. (4)	79	—	79	—
Total	$ 615	$ 109	$ 1,273	$ 173

(1) Affiliates of our Manager own an interest in the controlling entity of BTIG, LLC, or BTIG. BTIG has been engaged

as a broker for repurchases of our Senior Secured Notes and Convertible Notes. D uring the six months ended

June 30, 2025 , there was no repurchase activity. During the six months ended June 30, 2024 , we repurchased

$ 26.2 million of our October 2021 Senior Secured Notes utilizing BTIG as a broker. Additionally, we have engaged

BTIG as a sales agent to sell shares of our class A common stock under one of our ATM Agreements. During the six

months ended June 30, 2025 and 2024 , we did not sell any shares under our ATM Agreements. Our engagements of

BTIG are on terms equivalent to those of unaffiliated third parties under similar arrangements.

(2) In the first quarter of 2024, in order to provide insurance for our REO 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 advisory 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 paid annually and borne by us and the other Blackstone-advised

investment vehicles that are members of Gryphon pro rata based on insurance premiums paid for each party’s

respective properties. During the six months ended June 30, 2025 and 2024 , we paid $ 796,000 and $ 109,000 ,

respectively, to Gryphon for insurance costs, inclusive of premiums, capital surplus contributions, taxes, and our pro

rata share of other expenses. Of these amounts, $ 31,000 and $ 2,000 , respectively, was attributable to the fee 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.

(3) Lexington National Land Services, or LNLS, a title agent company owned by Blackstone, acts as an agent for one or

more underwriters in issuing title policies and/or providing support services in connection with investments made by

us, Blackstone and their affiliates and related parties, and third-parties. LNLS focuses on transactions in rate-

regulated states where the cost of title insurance is non-negotiable. LNLS will not perform services in non-regulated

states for us, unless (i) in the context of a portfolio transaction that includes properties in rate-regulated states, (ii) as

part of a syndicate of title insurance companies where the rate is negotiated by other insurers or their agents, (iii)

when a third-party is paying all or a material portion of the premium or (iv) when providing only support services to

the underwriter. LNLS earns fees, which would have otherwise been paid to third parties, by providing title agency

services and facilitating placement of title insurance with underwriters. 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.

(4) In the second quarter of 2025 , Blackstone Securities Partners L.P., or BSP, an affiliate of our Manager, was engaged

as a member of the syndicate for our B-6 Term Loan. This engagement was on terms equivalent to those of

unaffiliated third parties.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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 FL5 CLO issued in the first quarter of 2025. As of June 30,

2025 , three of our assets were in special servicing under the 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, 2025 , we invested $ 562.8 million in three senior loans and $ 93.6 million in three

mezzanine loans to unaffiliated third parties in which Blackstone-advised investment vehicles also invested at the same

level of the capital structure on a pari passu basis.

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. In the fourth quarter of 2024, Blackstone-advised investment vehicles acquired (i) an

aggregate $ 62.5 million participation in our $ 650.0 million B-5 Term Loan, and (ii) an aggregate $ 80.0 million of our

$ 450.0 million December 2024 Senior Secured Notes. 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, an affiliate of our Manager, was

engaged as a member of the syndicate for these transactions. Our engagements of BSP are on terms equivalent to those of

unaffiliated parties. See “—Affiliate Services” for more information.

In the first quarter of 2025 , as part of a broad syndication led by third-party banks, Blackstone-advised investment vehicles

acquired an aggregate $ 75.0 million of notes in our $ 1.0 billion FL5 CLO offering. All of these transactions were on terms

equivalent to those of unaffiliated third parties.

In the second quarter of 2025, we entered into our Bank Loan Portfolio Joint Venture with a Blackstone-advised

investment vehicle that acquired a $ 1.4 billion portfolio of performing commercial mortgage loans. 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 or our Net Lease Joint Venture as we do not have

a controlling financial interest. As of June 30, 2025 , the aggregate value of our equity investment in our Bank Loan

Portfolio Joint Venture was $ 55.9 million and our ownership interest was 29 % , and the aggregate value of our equity

investment in the Net Lease Joint Venture was $ 52.2 million and our ownership interest was 75 % . We, these joint ventures,

and the Blackstone-advised investment vehicles, together, have engaged and may in the future engage in certain financing,

derivative and/or hedging arrangements related to these joint ventures. See Note 5 for further information.

In the second quarter of 2025, two of our senior loans to borrowers controlled by a Blackstone-advised investment vehicle

were modified. The terms of the modifications (including maturity extensions and additional commitments, among other

changes) were negotiated by our third-party co-lenders. We continue to forgo all non-economic rights under the loans,

including voting rights, so long as the Blackstone-advised investment vehicle controls the applicable borrower.

During the six months ended June 30, 2025 , proceeds from four of our loans were used by the unaffiliated third-party

borrowers to repay $ 554.4 million of performing loans held by Blackstone-advised investment vehicles, and proceeds from

financing provided by Blackstone-advised investment vehicles were used by the unaffiliated third-party borrower to repay

$ 148.8 million of a performing loan of ours. During the six months ended June 30, 2024 , proceeds from a loan held by a

Blackstone-advised investment vehicle were used by the unaffiliated third-party borrower to repay $ 98.6 million of a

performing loan of ours, and proceeds from the sale of assets to a Blackstone-advised investment vehicle were used by the

unaffiliated third-party borrower to repay $ 59.0 million of a performing loan of ours to the borrower. These transactions

were initiated by the applicable unaffiliated third-party borrowers with the transaction terms and pricing on market terms.

In the fourth quarter of 2024, pursuant to our Agency Multifamily Lending Partnership , we referred three loans to MTRCC

for origination, where the borrower was a Blackstone-advised investment vehicle. The loan terms and pricing were on

market terms negotiated by MTRCC. Pursuant to our Agency Multifamily Lending Partnership , we received $ 217,000 of

origination, servicing, and other fees for referring these loans during the fourth quarter of 2024.

In the fourth quarter of 2024, in connection with the modification of one of our senior loans, a Blackstone-advised

investment vehicle purchased a pari passu participation in the loan from a third party at a discount to par.

In the fourth quarter of 2024, the senior lenders negotiated a discounted payoff of a senior loan in which we held an

interest. As part of the discounted payoff, a Blackstone-advised investment vehicle’s mezzanine loan, which had been part

of the total financing, received a small repayment.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

In the third quarter of 2024, we acquired $ 94.4 million of a total $ 560.0 million senior loan to an unaffiliated third party.

One Blackstone-advised investment vehicle holds a portion of the senior loan and another holds a mezzanine loan. We will

forgo all non-economic rights under our loan, including voting rights, so long as any Blackstone-advised investment

vehicle controls the mezzanine loan. The intercreditor agreement between the senior loan lender and the mezzanine lender

was negotiated on market terms by a third party without our involvement, and our 17 % interest in the senior loan was made

on such market terms.

In 2019 and 2021, we acquired an aggregate participation of € 350.0 million in a senior loan to a borrower that is partially

owned by a Blackstone-advised investment vehicle. We forgo all non-economic rights under the loan, including voting

rights, so long as the Blackstone-advised investment vehicle controls the borrower. The loan was negotiated by third parties

on market terms without our involvement, and our interest in the senior loan was subject to such market terms. In the third

quarter of 2024, the borrower completed a refinancing transaction involving new lenders and the existing lenders. We

elected to sell € 232.0 million of our then remaining € 347.0 million loan position to the new lenders at par and extend the

remainder on modified terms. The terms of the modification (which included, among other changes, an extension of the

maturity date, and increase in the interest rate, and additional guarantees) were negotiated by our third-party co-lender.

In the fourth quarter of 2018, we originated £ 148.7 million of a total £ 303.5 million senior loan to a borrower that is wholly

owned by a Blackstone-advised investment vehicle. The loan terms were negotiated by our third-party co-lender, and we

will forgo all non-economic rights under the loan, including voting rights, so long as a Blackstone-advised investment

vehicle controls the borrower. In the third quarter of 2024, we agreed to a refinancing transaction pursuant to which

£ 46.4 million of our £ 148.7 million participation in an existing £ 303.5 million loan to a borrower that is wholly owned by a

Blackstone-advised investment vehicle was repaid, and we received a £ 100.0 million participation in a new loan made to

the same borrower that continues to be controlled by a Blackstone-advised investment vehicle, and the terms of the loan

were modified to include, among other changes, an expanded collateral pool, an extension of the maturity date and an

increase in the interest rate. The transaction, including the terms of the modification, was negotiated by our third-party co-

lender.

22. COMMITMENTS AND CONTINGENCIES

Unfunded Commitments Under Loans Receivable

As of June 30, 2025 , we had aggregate unfunded commitments of $ 1.4 billion across 58 loans receivable, and

$ 666.1 million of committed or identified financings for those commitments, resulting in net unfunded commitments of

$ 746.0 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 2.6 years .

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

Principal Debt Repayments

Our contractual principal debt repayments as of June 30, 2025 were as follows ($ in thousands):


Year	Secured Debt (1)	Asset-Specific Debt (1)	Term Loans (2)	Senior Secured Notes	Convertible Notes (3)	Total (4)
2025 (remaining)	$ 698,295	$ —	$ 5,242	$ —	$ —	$ 703,537
2026	3,257,370	—	319,751	—	—	3,577,121
2027	2,802,337	—	10,484	335,316	266,157	3,414,294
2028	1,102,227	—	10,484	—	—	1,112,711
2029	1,159,022	363,146	413,588	450,000	—	2,385,756
Thereafter	1,674,345	166,721	1,001,199	—	—	2,842,265
Total obligation	$ 10,693,596	$ 529,867	$ 1,760,748	$ 785,316	$ 266,157	$ 14,035,684

(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 11 for further details on our Term Loans.

(3) Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer

to Note 13 for further details on our Convertible Notes.

(4) Total does not include $ 2.5 billion of consolidated securitized debt obligations and $ 50.0 million of loan

participations sold , as the satisfaction of these liabilities will not require cash outlays from us.

Board of Directors’ Compensation

As of June 30, 2025 , our six 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, 2025 , the other two board members, the chairperson of the board and our chief executive

officer, 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, 2025 , we were not involved in any material legal proceedings.

23 . 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, 2024 . 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, 2024 and elsewhere in this Quarterly Report on

Form 10-Q.

Introduction