Blackstone Mortgage Trust Cuts Dividend by 24%

Blackstone Mortgage Trust (BXMT) has announced a significant 24% cut to its quarterly dividend, reducing it from 62 cents to 47 cents per share, amid rising defaults and challenges in the commercial real estate (CRE) sector. CEO Katie Keenan emphasized that this decision aims to balance current returns with long-term earnings potential, allowing the company to save approximately $100 million annually for reinvestment. The company reported a second-quarter earnings per share of $0.56, surpassing analyst estimates but showing a decline from $0.79 a year earlier. Additionally, BXMT's book value per share increased slightly to $22.90, while credit loss reserves rose to $906 million. The board also approved a $150 million stock buyback program to enhance shareholder value. With 90% of its credit portfolio performing, the company remains cautiously optimistic despite the distress in its office loan portfolio, which constitutes about 25% of its loans.