10 unchanged sentences
and subsidiaries, or Blackstone Mortgage Trust, is responsible for establishing and maintaining adequate internal control over financial reporting.
−Removed: Blackstone Mortgage Trust’s internal control over financial reporting is a process designed under the supervision of its Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of its consolidated financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”).
−Removed: Blackstone Mortgage Trust’s internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets of the company;
−Removed: provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of the company’s management and directors;
−Removed: and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on its financial statements.
+Added: Blackstone Mortgage Trust’s internal control over financial reporting is a process designed under the supervision of its Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of its consolidated financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States of America.
+Added: Blackstone Mortgage Trust’s internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets;
+Added: provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and our directors;
+Added: and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on its financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
−Removed: Management conducted an assessment of the effectiveness of Blackstone Mortgage Trust’s internal control over financial reporting as of December 31, 2022, based on the framework established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.
+Added: Management conducted an assessment of the effectiveness of Blackstone Mortgage Trust’s internal control over financial reporting as of December 31, 2023, based on the framework established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Based on this assessment, management has determined that Blackstone Mortgage Trust’s internal control over financial reporting as of December 31, 2023, was effective.
1 unchanged sentence
OTHER INFORMATION
+Added: Section 13(r) Disclosure
+Added: Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) of the Exchange Act, we hereby incorporate by reference herein Exhibit 99.1 of this report, which includes disclosures regarding activities at Mundys S.p.A., formerly “Atlantia S.p.A.,” which may be, or may have been at the time considered to be, an affiliate of Blackstone and, therefore, our affiliate.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
67 unchanged sentences
Articles of Amendment dated June 8, 2020 (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on June 11, 2020 and incorporated herein by reference)
−Removed: Sixth Amended and Restated Bylaws of Blackstone Mortgage Trust, Inc.
+Added: 3.2 Seventh Amended and Restated Bylaws of Blackstone Mortgage Trust, Inc.
(filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No.
−Removed: 1-14788) filed on October 21, 2022 and incorporated herein by reference
+Added: 1-14788) filed on April 21, 2023 and incorporated herein by reference
Description of Securities of Blackstone Mortgage Trust, Inc.
+Added: (filed as Exhibit 4.1 to the Registrant’s Annual Report on Form 10-K (File No.
+Added: 1-14788) filed on February 8, 2023 and incorporated herein by reference)
Indenture, dated as of November 25, 2013, between Blackstone Mortgage Trust, Inc.
1 unchanged sentence
1-14788) filed on November 25, 2013 and incorporated herein by reference )
−Removed: Second Supplemental Indenture, dated as of May 5, 2017, between Blackstone Mortgage Trust, Inc.
−Removed: and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No.
−Removed: 1-14788) filed on May 5, 2017 and incorporated herein by reference)
−Removed: Form of 4.375% Convertible Senior Notes due 2022 (included as Exhibit A in Exhibit 4.3)
−Removed: Third Supplemental Indenture, dated as of March 27, 2018, between Blackstone Mortgage Trust, Inc.
−Removed: and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No.
−Removed: 1-14788) filed on March 27, 2018 and incorporated herein by reference)
−Removed: Form of 4.75% Convertible Senior Notes due 2023 (included as Exhibit A in Exhibit 4.5)
Fourth Supplemental Indenture, dated March 29, 2022, between Blackstone Mortgage Trust, Inc.
38 unchanged sentences
1-14788) filed on February 11, 2020 and incorporated herein by reference)
−Removed: Form of Non-Employee Restricted Stock Award Agreement of Blackstone Mortgage Trust, Inc.
+Added: Form of Non-Employee Director Restricted Stock Award Agreement of Blackstone Mortgage Trust, Inc.
2018 Stock Incentive Plan (filed as Exhibit 10.8 to the Registrant’s Quarterly Report on Form 10-Q (filed No.
3 unchanged sentences
1-14788) filed on June 17, 2022 and incorporated herein by reference)
+Added: Summary of Terms of Awards of Deferred Stock Units under Blackstone Mortgage Trust, Inc.
+Added: Stock Incentive Plan
Blackstone Mortgage Trust, Inc.
1 unchanged sentence
1-14788) filed on June 17, 2022 and incorporated herein by reference)
−Removed: Form of Non-Employee Restricted Stock Award Agreement of Blackstone Mortgage Trust, Inc.
+Added: Form of Non-Employee Director Restricted Stock Award Agreement of Blackstone Mortgage Trust, Inc.
Stock Incentive Plan (filed as Exhibit 10.9 to the Registrant’s Quarterly Report on Form 10-Q (File No.
17 unchanged sentences
1-14788) filed on February 9, 2022 and incorporated herein by reference)
−Removed: Third Amendment to Fifth Amended and Restated Master Repurchase Agreement, dated as of May 25, 2022, among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Parlex 2 UK Finco, LLC, Parlex 2 EUR Finco, LLC, Parlex 2 AU Finco, LLC, Parlex 2 CAD Finco, LLC, Wispar 5 Finco, LLC and Citibank, N.A.
+Added: 10.20 Third Amendment to Fifth Amended and Restated Master Repurchase Agreement, dated as of May 25, 2022, among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Parlex 2 UK Finco, LLC, Parlex 2 EUR Finco, LLC, Parlex 2 AU Finco, LLC, Parlex 2 CAD Finco, LLC, Wispar 5 Finco, LLC, Silver Fin II Sub TC Pty Ltd and Citibank, N.A.
(filed as Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10 Q (File No.
1-4788) filed on July 27, 2022 and incorporated herein by reference)
+Added: 10.21 Fourth Amendment to Fifth Amended and Restated Master Repurchase Agreement, dated as of January 24, 2023, among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Parlex 2 UK Finco, LLC, Parlex 2 EUR Finco, LLC, Parlex 2 AU Finco, LLC, Parlex 2 CAD Finco, LLC, Wispar 5 Finco, LLC, Silver Fin II Sub TC Pty Ltd and Citibank, N.A.
+Added: (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10 Q (File No.
+Added: 1-4788) filed on April 26, 2023 and incorporated herein by reference)
10.22 Limited Guaranty, dated as of June 12, 2013, made by Blackstone Mortgage Trust, Inc.
52 unchanged sentences
7 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 31, 2017, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q (File No.
−Removed: 1-14788) filed on April 25, 2017 and incorporated herein by referenc
+Added: 1-14788) filed on April 25, 2017 and incorporated herein by reference
10.38 Amendment No.
22 unchanged sentences
1-14788) filed on July 27, 2022 and incorporated herein by reference)
+Added: 10.46 Amendment No.
+Added: 16 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 13, 2023, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.
+Added: 1-14788) filed on April 26, 2023 and incorporated herein by reference)
10.47 Amended and Restated Guarantee Agreement, dated as of June 30, 2015, made by Blackstone Mortgage Trust, Inc.
19 unchanged sentences
1-14788) filed on July 27, 2022 and incorporated herein by reference)
−Removed: Seventh Amendment to Term Loan Credit Agreement, dated as of November 4, 2022, by and among Blackstone Mortgage Trust, Inc., the subsidiary guarantors party thereto, each lender party thereto and JPMorgan Chase Bank, N.A., as administrative agent
+Added: 10.56 Seventh Amendment to Term Loan Credit Agreement, dated as of November 4, 2022, by and among Blackstone Mortgage Trust, Inc., the subsidiary guarantors party thereto, each lender party thereto and JPMorgan Chase Bank, N.A., as administrative agent (filed as Exhibit 10.53 to the Registrant's Annual Report on Form 10-K (File No.
+Added: 1-14788) filed on February 8, 2023 and incorporated herein by reference)
+Added: 10.57 Eighth Amendment to Term Loan Credit Agreement, dated as of June 7, 2023, by and among Blackstone Mortgage Trust, Inc., the subsidiary guarantors party thereto, each lender party thereto and JPMorgan Chase Bank, N.A., as administrative agent (filed as Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q (File No.
+Added: 1-14788) filed on July 26, 2023 and incorporated herein by reference)
10.58 Loan Guaranty, entered into as of April 23, 2019, by and among the subsidiary guarantors and other persons from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (filed as Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q (File No.
2 unchanged sentences
1-14788) filed on July 29, 2020 and incorporated herein by reference)
−Removed: Master Repurchase Agreement, dated as of February 11, 2022, by and between Parlex 18 Finco, LLC and MUFG Bank, Ltd., New York Branch (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.
−Removed: 1-14788) filed on April 27, 2022 and incorporated herein by reference)
−Removed: First Amendment to Master Repurchase Agreement, dated as of December 6, 2022, by and between Parlex 18 Finco, LLC and MUFG Bank, New York Branch
−Removed: Guaranty, dated as of February 11, 2022, made by Blackstone Mortgage Trust, Inc., in favor of MUFG Bank, Ltd., New York Branch (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No.
−Removed: 1-14788) filed on October 26, 2022 and incorporated herein by reference)
10.60 Master Repurchase Agreement, dated as of May 31, 2022, by and between Parlex 3A USD IE Issuer Designated Activity Company, Parlex 3A GBP IE Issuer Designated Activity Company, Parlex 3A EUR IE Issuer Designated Activity Company, Parlex 3A SEK IE Issuer Designated Activity Company, Perpetual Corporate Trust Limited as Trustee of the Parlex 2022-1 Issuer Trust, Parlex 3A FINCO, LLC, Parlex 3A UK Finco, LLC, Parlex 3A EUR Finco, LLC, Parlex 3A SEK Finco, LLC, Silver Fin Sub TC PTY LTD, Gloss Finco 1, LLC and Barclays Bank PLC (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No.
2 unchanged sentences
1-14788) filed on October 26, 2022 and incorporated herein by reference)
−Removed: Second Amendment to Master Repurchase Agreement, dated as of December 23, 2022, by and among Parlex 3A USD IE Issuer Designated Activity Company, Parlex 3A GBP IE Issuer Designated Activity Company, Parlex 3A EUR IE Issuer Designated Activity Company, Parlex 3A SEK IE Issuer Designated Activity Company, Perpetual Corporate Trust Limited as Trustee of the Parlex 2022-1 Issuer Trust, Parlex 3A FINCO, LLC, Barclays Bank PLC, Parlex 3A Finco, LLC, Parlex 3A UK Finco, LLC, Parlex 3A EUR Finco, LLC, Parlex 3A SEK Finco, LLC, Silver Fin Sub TC PTY LTD, and Gloss Finco 1, LLC
+Added: 10.62 Second Amendment to Master Repurchase Agreement, dated as of December 23, 2022, by and among Parlex 3A USD IE Issuer Designated Activity Company, Parlex 3A GBP IE Issuer Designated Activity Company, Parlex 3A EUR IE Issuer Designated Activity Company, Parlex 3A SEK IE Issuer Designated Activity Company, Perpetual Corporate Trust Limited as Trustee of the Parlex 2022-1 Issuer Trust, Parlex 3A FINCO, LLC, Barclays Bank PLC, Parlex 3A Finco, LLC, Parlex 3A UK Finco, LLC, Parlex 3A EUR Finco, LLC, Parlex 3A SEK Finco, LLC, Silver Fin Sub TC PTY LTD, and Gloss Finco 1, LLC (filed as Exhibit 10.61 to the Registrant's Annual Report on Form 10-K (File No.
+Added: 1-14788) filed on February 8, 2023 and incorporated herein by reference)
+Added: 10.63 Third Amendment to Master Repurchase Agreement, dated as of May 31, 2023, by and among Parlex 3A USD IE Issuer Designated Activity Company, Parlex 3A GBP IE Issuer Designated Activity Company, Parlex 3A EUR IE Issuer Designated Activity Company, Parlex 3A SEK IE Issuer Designated Activity Company, Perpetual Corporate Trust Limited as Trustee of the Parlex 2022-1 Issuer Trust, Parlex 3A FINCO, LLC, Barclays Bank PLC, Parlex 3A Finco, LLC, Parlex 3A UK Finco, LLC, Parlex 3A EUR Finco, LLC, Parlex 3A SEK Finco, LLC, Silver Fin Sub TC PTY LTD, and Gloss Finco 1, LLC (filed as Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No.
+Added: 1-14788) filed on July 26, 2023 and incorporated herein by reference)
+Added: Fourth Amendment to Master Repurchase Agreement, dated as of November 22, 2023, by and among Parlex 3A USD IE Issuer Designated Activity Company, Parlex 3A GBP IE Issuer Designated Activity Company, Parlex 3A EUR IE Issuer Designated Activity Company, Parlex 3A SEK IE Issuer Designated Activity Company, Perpetual Corporate Trust Limited as Trustee of the Parlex 2022-1 Issuer Trust, Parlex 3A FINCO, LLC, Barclays Bank PLC, Parlex 3A Finco, LLC, Parlex 3A UK Finco, LLC, Parlex 3A EUR Finco, LLC, Parlex 3A SEK Finco, LLC, Silver Fin Sub TC PTY LTD, and Gloss Finco 1, LLC
10.65 Guaranty, dated as of May 31, 2022, made by Blackstone Mortgage Trust, Inc., for the benefit of Parlex 3 USD IE Issuer Designated Activity Company, Parlex 3A GBP IE Issuer Designated Activity Company, Parlex 3A EUR IE Issuer Designated Activity Company and Parlex 3A SEK IE Issuer Designated Activity Company (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (file No.
8 unchanged sentences
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
+Added: 97.1 *+ Incentive Compensation Clawback Policy
+Added: Section 13(r) Disclosure
XBRL Instance Document—the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document
7 unchanged sentences
+ This document has been identified as a management contract or compensatory plan or arrangement.
−Removed: ++ This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liability of that Section.
−Removed: Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.
+Added: ++ This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise
+Added: subject to the liability of that Section.
+Added: Such exhibit shall not be deemed incorporated into any filing under the Securities Act, or the Exchange Act.
The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose.
9 unchanged sentences
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
−Removed: February 8, 2023 /s/ Michael B.
−Removed: Date Michael B.
−Removed: Executive Chairman of the Board of Directors
+Added: February 14, 2024 /s/ Timothy S.
+Added: Date Timothy S.
+Added: Johnson, Chairperson of the Board of Directors
February 14, 2024 /s/ Katharine A.
5 unchanged sentences
Chief Financial Officer
−Removed: (Principal Financial Officer
−Removed: and Principal Accounting Officer)
+Added: (Principal Financial Officer and Principal Accounting Officer)
February 14, 2024 /s/ Leonard W.
7 unchanged sentences
Lynch, Director
+Added: February 14, 2024 /s/ Michael B.
+Added: Date Michael B.
+Added: Nash, Director
February 14, 2024 /s/ Henry N.
106 unchanged sentences
Commitments and contingencies — —
−Removed: Class A common stock, $ 0.01 par value, 400,000,000 shares authorized, 171,695,985 and 168,179,798 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively
+Added: Class A common stock, $ 0.01 par value, 400,000,000 shares authorized, 173,209,933 and 171,695,985 shares issued and outstanding as of December 31, 2023 and 2022, respectively
Additional paid-in capital 5,507,459 5,475,804
6 unchanged sentences
Total Liabilities and Equity $ 24,036,178 $ 25,353,985
−Removed: The consolidated balance sheets as of December 31, 2022 and December 31, 2021 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.
−Removed: As of December 31, 2022 and December 31, 2021, assets of the consolidated VIEs totaled $ 3.2 billion and $ 3.5 billion, respectively, and liabilities of the consolidated VIEs totaled $ 2.7 billion and $ 2.8 billion, respectively.
+Added: The consolidated balance sheets as of December 31, 2023 and 2022 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.
+Added: As of December 31, 2023 and 2022, assets of the consolidated VIEs totaled $ 3.0 billion and $ 3.2 billion, respectively, and liabilities of the consolidated VIEs totaled $ 2.5 billion and $ 2.7 billion, respectively.
Refer to Note 18 for additional discussion of the VIEs.
14 unchanged sentences
(Increase) decrease in current expected credit loss reserve ( 249,790 ) ( 211,505 ) 39,864
+Added: Gain on extinguishment of debt 4,616 — —
Income before income taxes 255,259 254,060 422,696
13 unchanged sentences
Net income $ 249,897 $ 251,057 $ 422,273
−Removed: Other comprehensive income (loss)
−Removed: Unrealized (loss) gain on foreign currency translation ( 171,652 ) ( 84,470 ) 87,113
−Removed: Realized and unrealized gain (loss) on derivative financial instruments 173,366 81,608 ( 59,710 )
−Removed: Other comprehensive income (loss) 1,714 ( 2,862 ) 27,403
+Added: Other comprehensive (loss) income
+Added: Unrealized gain (loss) on foreign currency translation 75,339 ( 171,652 ) ( 84,470 )
+Added: Realized and unrealized (loss) gain on derivative financial instruments ( 75,907 ) 173,366 81,608
+Added: Other comprehensive (loss) income ( 568 ) 1,714 ( 2,862 )
Comprehensive income 249,329 252,771 419,411
9 unchanged sentences
Comprehensive
−Removed: (Loss) Income
+Added: Income (Loss )
Stockholders’
1 unchanged sentence
Balance at December 31, 2020
−Removed: Adoption of ASU 2016-13 — — — ( 17,565 ) ( 17,565 ) ( 85 ) ( 17,650 )
+Added: $ 1,468 $ 4,702,713 $ 11,170 $ ( 829,284 ) $ 3,886,067 $ 18,164 $ 3,904,231
Shares of class A common stock issued, net 202 637,802 — — 638,004 — 638,004
3 unchanged sentences
Net income — — — 419,193 419,193 3,080 422,273
−Removed: Other comprehensive income — — 27,403 — 27,403 — 27,403
+Added: Other comprehensive loss — — ( 2,862 ) ( 2,862 ) — ( 2,862 )
Dividends declared on common stock and deferred stock units, $ 2.48 per share
3 unchanged sentences
Balance at December 31, 2021
+Added: $ 1,682 $ 5,373,029 $ 8,308 $ ( 794,832 ) $ 4,588,187 $ 30,524 $ 4,618,711
+Added: Adoption of ASU 2020-06 — ( 2,431 ) — 1,954 ( 477 ) — ( 477 )
Shares of class A common stock issued, net 23 70,628 — — 70,651 — 70,651
9 unchanged sentences
Balance at December 31, 2022
−Removed: Adoption of ASU 2020-06, See Note 2
$ 1,717 $ 5,475,804 $ 10,022 $ ( 968,749 ) $ 4,518,794 $ 25,406 $ 4,544,200
−Removed: Shares of class A common stock issued, net 23 70,628 — — 70,651 — 70,651
Restricted class A common stock earned 15 29,960 — — 29,975 — 29,975
5 unchanged sentences
— — — ( 428,740 ) ( 428,740 ) — ( 428,740 )
−Removed: Contributions from non-controlling interests — — — — — 5,040 5,040
Distributions to non-controlling interests — — — — — ( 8,955 ) ( 8,955 )
Balance at December 31, 2023
+Added: $ 1,732 $ 5,507,459 $ 9,454 $ ( 1,150,934 ) $ 4,367,711 $ 19,793 $ 4,387,504
See accompanying notes to consolidated financial statements.
7 unchanged sentences
Adjustments to reconcile net income to net cash provided by operating activities
−Removed: Satisfaction of management and incentive fees in stock — — 19,277
Non-cash compensation expense 30,655 33,414 31,647
1 unchanged sentence
Amortization of deferred financing costs and premiums/discounts on debt obligations 54,264 50,020 41,002
+Added: Payment-in-kind interest, net of interest received ( 2,865 ) — —
Increase (decrease) in current expected credit loss reserve 249,790 211,505 ( 39,864 )
+Added: Gain on extinguishment of debt ( 4,616 ) — —
Unrealized gain on assets denominated in foreign currencies, net — ( 31 ) ( 6,866 )
−Removed: Unrealized gain on derivative financial instruments, net ( 4,339 ) ( 3,934 ) ( 867 )
+Added: Unrealized loss (gain) on derivative financial instruments, net 2,769 ( 4,339 ) ( 3,934 )
Realized (gain) loss on derivative financial instruments, net ( 28,202 ) ( 15,609 ) 3,890
5 unchanged sentences
Principal fundings of loans receivable ( 1,344,130 ) ( 6,810,218 ) ( 12,550,463 )
−Removed: Principal collections and sales proceeds from loans receivable and debt securities 3,254,595 6,730,339 1,850,003
−Removed: Origination and exit fees received on loans receivable 74,930 143,002 21,275
−Removed: Receipts under derivative financial instruments 353,325 76,383 90,427
+Added: Principal collections, sales proceeds, and cost-recovery proceeds from loans receivable and debt securities 2,840,467 3,254,595 6,730,339
+Added: Origination and other fees received on loans receivable 17,992 74,930 143,002
Payments under derivative financial instruments ( 233,544 ) ( 23,057 ) ( 77,772 )
+Added: Receipts under derivative financial instruments 163,682 353,325 76,383
Collateral deposited under derivative agreements ( 352,120 ) ( 217,220 ) ( 109,670 )
Return of collateral deposited under derivative agreements 351,730 114,110 160,720
−Removed: Net cash used in investing activities ( 3,253,535 ) ( 5,627,461 ) ( 88,251 )
+Added: Net cash provided by (used in) investing activities 1,444,077 ( 3,253,535 ) ( 5,627,461 )
See accompanying notes to consolidated financial statements.
8 unchanged sentences
Proceeds from issuance of securitized debt obligations — — 803,750
−Removed: Repayment of securitized debt obligations ( 182,084 ) ( 888,763 ) ( 300,879 )
+Added: Repayments of securitized debt obligations ( 166,027 ) ( 182,084 ) ( 888,763 )
Borrowings under asset-specific debt 292,019 770,665 272,065
1 unchanged sentence
Proceeds from sale of loan participations 100,692 245,278 —
−Removed: Net proceeds from issuance of term loans 807,750 298,500 315,438
+Added: Net proceeds from term loan borrowings — 807,750 298,500
Repayments of term loans ( 21,997 ) ( 17,053 ) ( 13,495 )
+Added: Proceeds from issuance of senior secured notes — — 400,000
+Added: Repurchases of senior secured notes ( 28,945 ) — —
Net proceeds from issuance of convertible notes — 294,000 —
Repayment of convertible notes ( 220,000 ) ( 402,500 ) —
−Removed: Proceeds from issuance of senior secured notes — 400,000 —
Payment of deferred financing costs ( 23,215 ) ( 45,996 ) ( 43,725 )
3 unchanged sentences
Dividends paid on class A common stock ( 426,927 ) ( 421,386 ) ( 370,662 )
−Removed: Net cash provided by (used in) financing activities 2,607,224 5,508,224 ( 110,769 )
−Removed: Net (decrease) increase in cash, cash equivalents, and restricted cash ( 249,486 ) 263,246 137,587
−Removed: Cash, cash equivalents, and restricted cash at beginning of year 551,154 289,970 150,090
−Removed: Effects of currency translation on cash, cash equivalents, and restricted cash ( 10,328 ) ( 2,062 ) 2,293
−Removed: Cash, cash equivalents, and restricted cash at end of year $ 291,340 $ 551,154 $ 289,970
+Added: Net cash (used in) provided by financing activities ( 1,847,943 ) 2,607,224 5,508,224
+Added: Net increase (decrease) in cash and cash equivalents 54,975 ( 249,486 ) 263,246
+Added: Cash and cash equivalents at beginning of year 291,340 551,154 289,970
+Added: Effects of currency translation on cash and cash equivalents 3,699 ( 10,328 ) ( 2,062 )
+Added: Cash and cash equivalents at end of year $ 350,014 $ 291,340 $ 551,154
Supplemental disclosure of cash flows information
Payments of interest $ ( 1,292,958 ) $ ( 608,259 ) $ ( 287,715 )
−Removed: (Payments) refunds of income taxes $ ( 676 ) $ 73 $ ( 232 )
+Added: Payments of income taxes $ ( 6,668 ) $ ( 676 ) $ 73
Supplemental disclosure of non-cash investing and financing activities
Dividends declared, not paid $ ( 107,390 ) $ ( 106,455 ) $ ( 104,271 )
−Removed: Satisfaction of management and incentive fees in stock $ — $ — $ 19,277
Loan principal payments held by servicer, net $ 48,287 $ 7,425 $ 17,528
See accompanying notes to consolidated financial statements.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements
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.
1 unchanged sentence
Our portfolio is composed primarily of loans secured by high-quality, institutional assets in major markets, sponsored by experienced, well-capitalized real estate investment owners and operators.
−Removed: These senior loans are capitalized by accessing a variety of financing options, including borrowing under our credit facilities, issuing CLOs or single-asset securitizations, and syndicating senior loan participations, depending on our view of the most prudent financing option available for each of our investments.
+Added: These senior loans are capitalized by accessing a variety of financing options, including borrowing under our credit facilities, issuing CLOs or single-asset securitizations, and corporate financing, depending on our view of the most prudent financing option available for each of our investments.
We are not in the business of buying or trading securities, and the only securities we own are the retained interests from our securitization financing transactions, which we have not financed.
10 unchanged sentences
All intercompany balances and transactions have been eliminated in consolidation.
+Added: Certain reclassifications have been made in the presentation of the prior period statements of changes in equity related to restricted class A common stock and in the loans receivable disclosures related to risk ratings, property type, and geography in Note 3 to conform to the current period presentation.
Principles of Consolidation
1 unchanged sentence
In addition, we consolidate all VIEs of which we are considered the primary beneficiary.
−Removed: VIEs are defined as entities in which equity investors (i) do not have 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.
+Added: 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.
−Removed: In 2018, we contributed a loan to a single asset securitization vehicle, or the 2018 Single Asset Securitization, which is a VIE, and invested in the related subordinate position.
−Removed: We were not the primary beneficiary of the VIE because we did not have the power to direct the activities that most significantly affected the VIE’s economic performance and, therefore, did not consolidate the 2018 Single Asset Securitization on our balance sheet.
−Removed: We classified the subordinate position we owned as a held-to-maturity debt security that is included in other assets on our consolidated balance sheets.
−Removed: During the year ended December 31, 2022, the 2018 Single Asset Securitization was liquidated upon full repayment of its collateral and all senior securities outstanding.
−Removed: Refer to Note 18 for additional discussion of our VIEs.
In 2017, we entered into a joint venture, or our Multifamily Joint Venture, with Walker & Dunlop Inc.
4 unchanged sentences
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.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
Use of Estimates
1 unchanged sentence
Actual results may ultimately differ materially from those estimates.
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
Revenue Recognition
−Removed: Interest income from our loans receivable portfolio and debt securities is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis.
−Removed: Recognition of fees, premiums, and discounts associated with these investments is deferred and recorded over the term of the loan or debt security as an adjustment to yield.
+Added: Interest income from our loans receivable portfolio is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis.
+Added: 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.
−Removed: Interest received is then recorded as a reduction in the outstanding principal balance until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed.
−Removed: In addition, for loans we originate, the related origination expenses are deferred and recognized as a component of interest income, however expenses related to loans we acquire are included in general and administrative expenses as incurred.
+Added: 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.
+Added: 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.
Cash and Cash Equivalents
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We have not experienced, and do not expect, any losses on our cash or cash equivalents.
−Removed: As of both December 31, 2022 and December 31, 2021, we had no
−Removed: restricted cash on our consolidated balance sheets.
−Removed: Through our subsidiaries, we have oversight of certain servicing accounts held with third-party servicers, or Servicing Accounts, which relate to borrower escrows and other cash balances aggregating $ 459.6 million and $ 531.2 million as of December 31, 2022 and December 31, 2021, respectively.
+Added: As of both December 31, 2023 and 2022, we had no restricted cash on our consolidated balance sheets.
+Added: Through our subsidiaries, we have oversight of certain servicing accounts held with third-party servicers, or Servicing Accounts, which relate to borrower escrows and other cash balances aggregating $ 640.6 million and $ 459.6 million as of December 31, 2023 and 2022, respectively.
This cash is maintained in segregated bank accounts, and these amounts are not included in the assets and liabilities presented in our consolidated balance sheets.
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We originate and purchase commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost.
−Removed: Debt Securities Held-to-Maturity
−Removed: We classify our debt securities as held-to-maturity, as we have the intent and ability to hold these securities until maturity.
−Removed: We include our debt securities in other assets on our consolidated balance sheets at amortized cost.
Current Expected Credit Losses Reserve
−Removed: The current expected credit loss, or CECL, reserve required under Accounting Standard Update, or ASU, 2016-13 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326),” or ASU 2016-13, reflects our current estimate of potential credit losses related to our loans and debt securities included in our consolidated balance sheets.
−Removed: Changes to the CECL reserve are recognized through net income on our consolidated statements of operations.
−Removed: While ASU 2016-13 does not require any particular method for determining the CECL reserve, it does specify the reserve 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.
−Removed: In addition, other than a few narrow exceptions, ASU 2016-13 requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the GAAP principal underlying the CECL model that all loans, debt securities, and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
−Removed: We estimate our CECL reserve 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 the Financial Accounting Standards Board, or FASB, Staff Q&A Topic 326, No.
+Added: 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 included in our consolidated balance sheets.
+Added: Changes to the CECL reserves are recognized through net income on our consolidated statements of operations.
+Added: 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.
+Added: 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 GAAP principal 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.
+Added: 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.
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 timeframe.
−Removed: We apply the WARM method for the majority of our loan portfolio, which loans share similar risk characteristics.
+Added: 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.
−Removed: Application of the WARM method to estimate a CECL reserve 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.
+Added: 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.
−Removed: This database includes commercial mortgage-backed securities, or CMBS, issued since January 1, 1999 through November 30, 2022.
+Added: This database includes commercial mortgage-backed securities, or CMBS, issued
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
+Added: since January 1, 1999 through November 30, 2023.
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, which includes month-over-month loan and property performance, is the most relevant, available, and comparable dataset to our portfolio.
−Removed: Our loans typically include commitments to fund incremental proceeds to our borrowers over the life of the loan, which future funding commitments are also subject to the CECL model.
+Added: Our loans typically include commitments to fund incremental proceeds to our borrowers over the life of the loan.
+Added: 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.
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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.
−Removed: The CECL reserve is measured on a collective basis wherever similar risk characteristics exist within a pool of similar assets.
+Added: 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:
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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.
−Removed: If a loan is determined to be impaired, we record the impairment as a component of our CECL reserve by applying the practical expedient for collateral dependent loans.
−Removed: The CECL reserve is 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.
−Removed: 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.
+Added: 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.
+Added: 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.
+Added: 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.
−Removed: We only expect to realize the impairment losses if and when such amounts are deemed nonrecoverable upon a realization event.
−Removed: This is generally at the time a loan is repaid, or in the case of foreclosure, when the underlying asset is sold, but non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected.
+Added: 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.
+Added: This is generally at the time a loan is repaid or foreclosed.
+Added: 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
−Removed: Expected credit losses are estimated over the contractual term of each loan, adjusted for expected prepayments.
−Removed: 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 reserve.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
+Added: Expected credit losses are estimated over the contractual term of each loan, adjusted for expected repayments.
+Added: 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.
−Removed: The considerations in estimating our CECL reserve for unfunded loan commitments are similar to those used for the related outstanding loan receivables.
+Added: 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.
−Removed: 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, 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.
−Removed: Based on a 5-point 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:
+Added: 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.
+Added: Based on a 5-point
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
+Added: 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
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Estimation of Economic Conditions
−Removed: In addition to the WARM method computations and probability-weighted models described above, our CECL reserve is 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.
+Added: 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.
−Removed: We may also incorporate information from other sources, including information and opinions available to our Manager, to further inform these estimations.
+Added: 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 December 31, 2023.
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Our net investment hedges are assessed using a method based on changes in spot exchange rates.
−Removed: 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
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
−Removed: accordance with our accounting policy election.
+Added: 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 qualify as hedges are reported as a component of accumulated other comprehensive income (loss) on our consolidated financial statements.
2 unchanged sentences
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.
+Added: 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.
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
Secured Debt and Asset-Specific Debt
1 unchanged sentence
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.
−Removed: Senior Loan Participations
−Removed: In certain instances, we finance our loans through the non-recourse syndication of a senior loan interest to a third-party.
−Removed: Depending on the particular structure of the syndication, the senior loan interest may remain on our GAAP balance sheet or, in other cases, the sale will be recognized and the senior loan interest will no longer be included in our consolidated financial statements.
−Removed: When these sales are not recognized under GAAP we reflect the transaction by recording a loan participations sold liability on our consolidated balance sheet, however this gross presentation does not impact stockholders’ equity or net income.
−Removed: When the sales are recognized, our balance sheet only includes our remaining subordinate loan, and excludes the non-consolidated senior interest in the loan that we sold.
+Added: Loan Participations Sold
+Added: In certain instances, we have executed a syndication of a non-recourse loan interest to a third-party.
+Added: 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.
+Added: 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.
+Added: When the sales are recognized, our balance sheet only includes our remaining loan interest, and excludes the interest in the loan that we sold.
We record our term loans as liabilities on our consolidated balance sheets.
4 unchanged sentences
Convertible Notes
−Removed: In August 2020, the FASB issued ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40):
−Removed: Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,” or ASU 2020-06.
−Removed: ASU 2020-06 simplified the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models.
−Removed: ASU 2020-06 also updated the earnings per share calculation and required entities to assume share settlement when the convertible debt can be settled in cash or shares.
−Removed: ASU 2020-06 was effective for fiscal years beginning after December 15, 2021, and we adopted ASU 2020-06 on January 1, 2022 using the modified retrospective method of transition.
−Removed: Subsequent to adoption of ASU 2020-06, convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature, will no longer be allocated between debt and equity components.
−Removed: This reduces the issue discount and results in less non-cash interest expense in our consolidated financial statements.
−Removed: Additionally, subsequent to adoption of ASU 2020-06, 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.
+Added: Convertible note proceeds, unless issued with a substantial premium or an embedded conversion feature, are classified as debt.
+Added: 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.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
Deferred Financing Costs
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ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments.
−Removed: 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.
+Added: 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
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
+Added: 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.
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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.
−Removed: As of December 31, 2022, we had an aggregate $ 189.8 million CECL reserve specifically related to five of our loans receivable with an aggregate outstanding principal balance of $ 930.0 million, net of cost-recovery proceeds.
−Removed: The CECL reserve was recorded based on our estimation of the fair value of the loan's underlying collateral as of December 31, 2022.
+Added: As of December 31, 2023, we had an aggregate $ 417.7 million asset-specific CECL reserve related to 13 of our loans receivable with an aggregate amortized cost basis of $ 1.9 billion, net of cost-recovery proceeds.
+Added: The CECL reserve was recorded based on our estimation of the fair value of the loans' aggregate underlying collateral as of December 31, 2023.
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.
−Removed: We estimated the fair value of these loan receivables by considering a variety of inputs including property performance, market data, and comparable sales, as applicable.
+Added: We estimated the fair value of these loans receivable by considering a variety of inputs including property performance, market data, and comparable sales, as applicable.
The significant unobservable inputs used include the exit capitalization rate assumption used to forecast the future sale price of the underlying real estate collateral, which ranged from 5.25 % to 8.00 %, and the unlevered discount rate, which ranged from 7.28 % to 11.00 %.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
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.
5 unchanged sentences
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.
−Removed: • Debt securities held-to-maturity:
−Removed: The fair value of these instruments was estimated by utilizing third-party pricing service providers assuming the securities are not sold prior to maturity.
−Removed: 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.
• Derivative financial instruments:
2 unchanged sentences
The fair value of these instruments was estimated based on the rate at which a similar credit facility would currently be priced.
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
• Securitized debt obligations, net:
17 unchanged sentences
Refer to Note 15 for additional information.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
Stock-Based Compensation
7 unchanged sentences
Refer to Note 13 for additional discussion of earnings per share.
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
Foreign Currency
8 unchanged sentences
Recent Accounting Pronouncements
+Added: In December 2023, the FASB issued Accounting Standards Update, or ASU, 2023-09 “Income Taxes (Topic 740):
+Added: Improvements to Income Tax Disclosures,” or ASU 2023-09.
+Added: ASU 2023-09 requires additional disaggregated disclosures on the entity’s effective tax rate reconciliation and additional details on income taxes paid.
+Added: 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.
+Added: We do not expect the adoption of ASU 2023-09 to have a material impact on our consolidated financial statements.
+Added: In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280):
+Added: Improvements to Reportable Segment Disclosures,” or ASU 2023-07.
+Added: ASU 2023-07 enhances the disclosures required for reportable segments on an annual and interim basis.
+Added: ASU 2023-07 is effective on a retrospective basis for annual periods beginning after December 15, 2023, for interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted.
+Added: We do not expect the adoption of ASU 2023-07 to have a material impact on our consolidated financial statements.
In March 2022, the FASB issued ASU, 2022-02 “Financial Instruments-Credit Losses (Topic 326):
4 unchanged sentences
The amendments should be applied prospectively, however for the recognition and measurement of troubled debt restructurings, the entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption.
−Removed: Upon adoption of ASU 2022-02 on January 1, 2023, we do not expect it will have a material impact on our consolidated financial statements.
−Removed: In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848):
−Removed: Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” or ASU 2020-04.
−Removed: ASU 2020-04 provides optional expedients and exceptions to GAAP requirements for modifications on debt instruments, leases, derivatives, and other contracts, related to the market transition from LIBOR, and certain other floating rate benchmark indices, or collectively, IBORs, to alternative reference rates.
−Removed: ASU 2020-04 generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination.
−Removed: In January 2021, the FASB issued ASU 2021-01 “Reference Rate Reform (Topic 848):
−Removed: Scope,” or ASU 2021-01.
−Removed: ASU 2021-01 clarifies that the practical expedients in ASU 2020-04 apply to derivatives impacted by changes in the interest rate used for margining, discounting, or contract price alignment.
−Removed: In December 2022, the FASB issued ASU 2022-06 "Reference Rate Reform (Topic 848):
−Removed: Deferral of the Sunset Date of Topic 848", or ASU 2022-06.
−Removed: ASU 2022-06 deferred the sunset date of ASU 2020-04 to December 31, 2024.
−Removed: The guidance in ASU 2020-04 is optional and may be
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
−Removed: elected over time, through December 31, 2024, as reference rate reform activities occur.
−Removed: Once ASU 2020-04 is elected, the guidance must be applied prospectively for all eligible contract modifications.
−Removed: In the first quarter of 2020, we have elected to apply the hedge accounting expedients, related to probability and the assessments of effectiveness, for future IBOR-indexed cash flows, to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives.
−Removed: Application of these expedients preserves the presentation of derivatives consistent with our past presentation.
−Removed: We plan to apply the contract modification expedients for our applicable loan and debt modifications that relate to the market transition from IBORs.
−Removed: Therefore, our loan and debt modifications that are in accordance with ASU 2020-04 do not require a remeasurement at the modification date nor a reassessment of a previous accounting determination.
−Removed: The application of the ASU 2020-04 expedients have not had a material impact on our consolidated financial statements.
−Removed: In August 2020, the FASB issued ASU 2020-06, described above under “Convertible Notes.” We adopted ASU 2020-06 on January 1, 2022, using the modified retrospective method of transition, which resulted in an aggregate decrease to our additional paid-in capital of $ 2.4 million, an aggregate decrease to our accumulated deficit of $ 2.0 million, and an aggregate increase to our convertible notes, net, of $ 477,000 , as of January 1, 2022.
+Added: The adoption of ASU 2022-02 on January 1, 2023 did not have a material impact on our consolidated financial statements.
Reference Rate Reform
−Removed: LIBOR and certain other floating rate benchmark indices to which our floating rate loans and other loan agreements are tied, including, without limitation, the Euro Interbank Offered Rate, or EURIBOR, the Stockholm Interbank Offered Rate, or STIBOR, the Australian Bank Bill Swap Reference Rate, or BBSY, the Canadian Dollar Offered Rate, or CDOR, the Swiss Average Rate Overnight, or SARON, and the Copenhagen Interbank Offering Rate, or CIBOR, or collectively, IBORs, have been the subject of national, international and regulatory guidance and proposals for reform.
−Removed: As of December 31, 2021, the ICE Benchmark Association, or IBA, ceased publication of most non-USD LIBOR settings.
−Removed: IBA also previously announced its intention to cease publication of remaining U.S.
−Removed: dollar LIBOR settings immediately after June 30, 2023;
−Removed: however, in November 2022 the U.K.
−Removed: Financial Conduct Authority, which regulates IBA, announced a public consultation regarding whether it should compel IBA to continue publishing “synthetic” USD LIBOR settings from June 2023 to the end of September 2024.
−Removed: Further, on March 15, 2022, the Consolidated Appropriations Act of 2022, which includes the Adjustable Interest Rate (LIBOR) Act, or LIBOR Act, was signed into law in the U.S.
−Removed: This legislation establishes a uniform benchmark replacement process for financial contracts maturing after June 30, 2023 that do not contain clearly defined or practicable fallback provisions.
−Removed: Under the LIBOR Act, such contracts will automatically transition as a matter of law to a Secured Overnight Financing Rate, or SOFR, based replacement rate identified by the Board of Governors of the Federal Reserve System, or Federal Reserve.
−Removed: The legislation also creates a safe harbor that shields lenders from litigation if they choose to utilize a replacement rate recommended by the Federal Reserve.
−Removed: In July 2022, the Federal Reserve issued a notice of proposed rulemaking implementing the LIBOR Act.
−Removed: As of December 31, 2022, no regulations have been promulgated.
−Removed: The Federal Reserve, in conjunction with the Alternative Reference Rates Committee, or ARRC, a steering committee composed of large U.S.
−Removed: financial institutions, identified SOFR, a new index calculated using short-term repurchase agreements backed by U.S.
+Added: LIBOR and certain other floating rate benchmark indices have been the subject of national, international and regulatory guidance and proposals for reform or replacement.
+Added: The Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee composed of large U.S.
+Added: financial institutions, identified SOFR, an index calculated using short-term repurchase agreements backed by U.S.
Treasury securities, as its preferred alternative rate for USD LIBOR.
−Removed: According to the ARRC, data from the cash and derivatives markets show continued momentum in the transition from LIBOR to SOFR, and SOFR is currently predominant across cash and derivatives markets.
−Removed: As of December 31, 2022, one-month term SOFR is utilized as the floating benchmark rate on 76 of our loans, the financing provided on the 2020 FL3 and 2020 FL2 CLOs, one of our asset-specific financings, certain borrowings under twelve of our credit facilities, and our B-4 Term Loan.
−Removed: As of December 31, 2022, one-month term SOFR was 4.36 % and one-month USD LIBOR was 4.39 %.
−Removed: Additionally, market participants have continued to transition from GBP LIBOR to the Sterling Overnight Index Average, or SONIA, in line with guidance from the U.K.
−Removed: As of December 31, 2022, daily compounded SONIA is utilized as the floating benchmark rate for all of our floating rate British Pound Sterling loans and related financings.
−Removed: As of December 31, 2022, 63.5 % of our aggregate loan principal balance has either transitioned to the applicable replacement benchmark rate, or its existing benchmark rate is not expected to be replaced, and we expect to transition the remaining 36.5 % in 2023.
−Removed: At this time, it is not possible to predict how markets will respond in the future to SOFR, SONIA, or other alternative reference rates as the transition away from USD LIBOR and GBP LIBOR proceeds.
−Removed: Despite the LIBOR transition in other markets, benchmark rate methodologies in Europe, Australia, Canada, Switzerland and Denmark have been reformed and rates such as EURIBOR, STIBOR, BBSY, CDOR, SARON and CIBOR may persist as International Organization of Securities Commissions, or IOSCO, compliant reference rates moving forward.
−Removed: However, multi-rate environments may persist in these markets as regulators and working groups have suggested market participants adopt alternative reference rates.
+Added: As of December 31, 2023, all of our floating rate loans and related financings have transitioned to the applicable replacement benchmark rate, or reference a benchmark rate that is not expected to be replaced.
Blackstone Mortgage Trust, Inc.
15 unchanged sentences
These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date.
−Removed: (2) The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, SOFR, SONIA, GBP LIBOR, EURIBOR, and other indices, as applicable to each loan.
−Removed: As of December 31, 2022, substantially all of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR and SOFR.
−Removed: As of December 31, 2021, 99.5 % of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR.
−Removed: The other 0.5 % of our loans earned a fixed rate of interest.
+Added: (2) The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include SOFR, USD LIBOR, SONIA, EURIBOR, and other indices, as applicable to each loan.
+Added: As of December 31, 2023 99 % of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR, and the remaining 1 % of our loans earned a fixed rate of interest.
+Added: As of December 31, 2022, substantially all of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR and USD LIBOR.
+Added: Floating rate exposure as of December 31, 2023 includes an interest rate swap we entered into with a notional amount of $ 229.9 million that effectively converts certain of our fixed rate loan exposure to floating rate exposure.
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.
3 unchanged sentences
As of December 31, 2022, 50 % of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 50 % were open to repayment by the borrower without penalty.
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
The following table details the index rate floors for our loans receivable portfolio as of December 31, 2023 ($ in thousands):
3 unchanged sentences
0.00% or no floor (2)
+Added: 4,292,620 7,066,714 11,359,334
0.01% to 1.00% floor 6,683,636 810,979 7,494,615
3 unchanged sentences
$ 15,554,386 $ 8,369,333 $ 23,923,719
−Removed: (1) Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, Canadian Dollar, Swiss Franc, and Danish Krone currencies.
−Removed: (2) As of December 31, 2022, the weighted-average index rate floor of our loan portfolio was 0.36 %.
+Added: (1) Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, Swiss Franc, and Danish Krone currencies.
+Added: (2) Includes an interest rate swap we entered into with a notional amount of $ 229.9 million that effectively converts certain of our fixed rate loan exposure to floating rate exposure.
+Added: (3) As of December 31, 2023, the weighted-average index rate floor of our loans receivable principal balance was 0.56 %.
Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 1.00 %.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
+Added: As of December 31, 2022, the weighted-average index rate floor of our loans receivable principal balance was 0.36 %.
+Added: Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 0.64 %.
Activity relating to our loans receivable portfolio was as follows ($ in thousands):
5 unchanged sentences
Loan repayments and sales proceeds ( 3,168,155 ) — ( 3,168,155 )
−Removed: Principal charge-offs ( 14,427 ) — ( 14,427 )
Unrealized (loss) gain on foreign currency translation ( 638,157 ) 5,255 ( 632,902 )
4 unchanged sentences
Loan fundings 1,344,130 — 1,344,130
−Removed: Loan repayments and sales ( 3,168,155 ) — ( 3,168,155 )
−Removed: Unrealized (loss) gain on foreign currency translation ( 638,157 ) 5,255 ( 632,902 )
+Added: Loan repayments, sales, and cost-recovery proceeds ( 2,871,423 ) ( 52,978 ) ( 2,924,401 )
+Added: Payment-in-kind interest, net of interest received 2,865 — 2,865
+Added: Unrealized gain (loss) on foreign currency translation 287,804 ( 1,702 ) 286,102
Deferred fees and other items — ( 17,992 ) ( 17,992 )
4 unchanged sentences
Loans Receivable, net, as of December 31, 2023
−Removed: (1) Other items primarily consist of purchase and sale discounts or premiums, exit fees, and deferred origination expenses.
+Added: (1) Other items primarily consist of purchase and sale discounts or premiums, exit fees, deferred origination expenses, and cost-recovery proceeds.
Blackstone Mortgage Trust, Inc.
2 unchanged sentences
December 31, 2023
−Removed: Property Type Number of
−Removed: Percentage of
+Added: Property Type Number of Loans Net
+Added: Net Loan Exposure Percentage of
Office 54 $ 9,253,609 $ 10,072,963 $ 7,956,472 36 %
3 unchanged sentences
Retail 6 814,241 834,825 785,573 4
+Added: Life Sciences / Studio 4 385,098 561,517 384,219 2
Other 6 1,106,603 1,107,752 1,074,527 5
2 unchanged sentences
Loans receivable, net $ 23,210,076
−Removed: Geographic Location Number of
−Removed: Percentage of
+Added: Geographic Location Number of Loans Net
+Added: Net Loan Exposure Percentage of
United States
8 unchanged sentences
Australia 5 1,429,144 1,437,870 1,432,146 7
−Removed: Spain 4 1,237,446 1,241,808 5
Ireland 3 1,191,068 1,197,337 1,188,554 5
+Added: Spain 3 1,117,790 1,120,375 1,078,811 5
Sweden 1 474,262 476,718 476,281 2
−Removed: Canada 1 49,409 49,432 —
Other Europe 5 644,149 646,430 643,401 3
3 unchanged sentences
Loans receivable, net $ 23,210,076
−Removed: (1) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements.
−Removed: See Note 2 for further discussion.
−Removed: Total loan exposure encompasses the entire loan we originated and financed, including $ 1.6 billion of such non-consolidated senior interests as of December 31, 2022.
+Added: (1) Total loan exposure reflects our aggregate exposure to each loan investment.
+Added: As of December 31, 2023, total loan exposure, includes (i) loans with an outstanding principal balance of $ 23.9 billion that are included in our consolidated financial statements, (ii) $ 1.1 billion of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $ 100.9 million of junior loan interests that we have sold, but that remain included in our consolidated financial statements.
+Added: See Note 2 for further discussion of loan participations sold.
+Added: (2) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31, 2023, which is our total loan exposure net of (i) $ 1.1 billion of non-consolidated senior interests, (ii) $ 1.0 billion of asset-specific debt, (iii) $ 236.8 million of senior loan participations sold, (iv) $ 53.0 million of cost-recovery proceeds, and (v) our total loans receivable CECL reserve of $ 576.9 million.
+Added: Our non-consolidated senior interests, asset-specific debt, and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans.
Blackstone Mortgage Trust, Inc.
2 unchanged sentences
Property Type Number of
−Removed: Exposure (1)(2)
−Removed: Percentage of
+Added: Book Value Total Loan
+Added: Net Loan Exposure Percentage of
Office 60 $ 9,082,946 $ 10,023,495 $ 8,099,334 34 %
3 unchanged sentences
Retail 9 1,098,315 1,141,932 1,090,238 5
+Added: Life Sciences/Studio 4 358,676 570,089 359,830 2
Other 8 1,243,870 1,599,313 1,217,578 5
3 unchanged sentences
Geographic Location Number of
−Removed: Exposure (1)(2)
−Removed: Percentage of
+Added: Book Value Total Loan
+Added: Net Loan Exposure Percentage of
United States
7 unchanged sentences
United Kingdom 23 3,362,629 3,393,126 3,123,925 13
+Added: Australia 5 1,405,601 1,417,318 1,408,565 6
Spain 4 1,237,446 1,241,808 1,204,218 5
1 unchanged sentence
Sweden 1 473,374 476,673 476,367 2
−Removed: Australia 4 504,668 509,885 2
Canada 1 49,409 49,432 49,398 —
4 unchanged sentences
Loans receivable, net $ 24,691,743
−Removed: (1) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements.
−Removed: See Note 2 for further discussion.
−Removed: Total loan exposure encompasses the entire loan we originated and financed, including $ 1.5 billion of such non-consolidated senior interests as of December 31, 2021.
−Removed: (2) Excludes investment exposure to the $ 379.3 million 2018 Single Asset Securitization.
−Removed: See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization .
+Added: (1) Total loan exposure reflects our aggregate exposure to each loan investment.
+Added: As of December 31, 2022, total loan exposure, includes (i) loans with an outstanding principal balance of $ 25.2 billion that are included in our consolidated financial statements and (ii) $ 1.6 billion of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements.
+Added: See Note 2 for further discussion of loan participations sold.
+Added: (2) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31, 2022, which is our total loan exposure net of (i) $ 1.6 billion of non-consolidated senior interests, (ii) $ 950.3 million of asset-specific debt, (iii) $ 224.7 million of senior loan participations sold, and (iv) our total loans receivable CECL reserve of $ 326.1 million.
+Added: Our non-consolidated senior interests, asset-specific debt, and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans.
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
Loan Risk Ratings
1 unchanged sentence
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.
−Removed: Factors considered in the assessment include, but are not limited to, risk of loss, current LTV, debt yield, collateral performance, structure, exit plan, and sponsorship.
+Added: 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.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
−Removed: The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings ($ in thousands):
−Removed: December 31, 2022 December 31, 2021
−Removed: Exposure (1)(2)
+Added: The following table allocates the net book value, total loan exposure, and net loan exposure balances based on our internal risk ratings ($ in thousands):
+Added: December 31, 2023
1 15 $ 763,101 $ 811,217 $ 763,223
6 unchanged sentences
Loans receivable, net $ 23,210,076
−Removed: (1) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements.
−Removed: See Note 2 for further discussion.
−Removed: Total loan exposure encompasses the entire loan we originated and financed, including $ 1.6 billion and $ 1.5 billion of such non-consolidated senior interests as of December 31, 2022 and December 31, 2021, respectively.
−Removed: (2) Excludes investment exposure to the 2018 Single Asset Securitization of $ 379.3 million as of December 31, 2021.
−Removed: See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization.
−Removed: The weighted-average risk rating of our total loan exposure was 2.8 as of both December 31, 2022 and December 31, 2021.
+Added: December 31, 2022
+Added: 1 17 $ 1,403,185 $ 1,428,232 $ 1,170,725
+Added: 2 36 5,880,424 6,562,852 5,292,933
+Added: 3 134 14,128,133 15,209,018 13,826,730
+Added: 4 11 2,677,027 2,680,145 2,628,539
+Added: 5 5 929,111 930,034 740,256
+Added: Total loans receivable 203 $ 25,017,880 $ 26,810,281 $ 23,659,183
+Added: CECL reserve ( 326,137 )
+Added: Loans receivable, net $ 24,691,743
+Added: (1) Total loan exposure reflects our aggregate exposure to each loan investment.
+Added: As of December 31, 2023, total loan exposure, includes (i) loans with an outstanding principal balance of $ 23.9 billion that are included in our consolidated financial statements, (ii) $ 1.1 billion of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $ 100.9 million of junior loan interests that we have sold, but that remain included in our consolidated financial statements.
+Added: As of December 31, 2022, total loan exposure, includes (i) loans with an outstanding principal balance of $ 25.2 billion that are included in our consolidated financial statements and (ii) $ 1.6 billion of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements.
+Added: See Note 2 for further discussion of loan participations sold.
+Added: (2) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31, 2023, which is our total loan exposure net of (i) $ 1.1 billion of non-consolidated senior interests, (ii) $ 1.0 billion of asset-specific debt, (iii) $ 236.8 million of senior loan participations sold, (iv) $ 53.0 million of cost-recovery proceeds, and (v) our total loans receivable CECL reserve of $ 576.9 million.
+Added: Our net loan exposure as of December 31, 2022 is our total loan exposure net of (i) $ 1.6 billion of non-consolidated senior interests, (ii) $ 950.3 million of asset-specific debt, (iii) $ 224.7 million of senior loan participations sold, and (iv) our total loans receivable CECL reserve of $ 326.1 million.
+Added: Our non-consolidated senior interests, asset-specific debt, and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans.
+Added: Our loan portfolio had a weighted-average risk rating of 3.0 and 2.9 as of December 31, 2023 and 2022, respectively.
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
Current Expected Credit Loss Reserve
−Removed: The CECL reserve required under GAAP reflects our current estimate of potential credit losses related to the loans and debt securities included in our consolidated balance sheets.
−Removed: Refer to Note 2 for further discussion of our CECL reserve.
+Added: The CECL reserves required under GAAP reflect our current estimate of potential credit losses related to the loans included in our consolidated balance sheets.
+Added: 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 year ended December 31, 2023 and 2022 ($ in thousands):
+Added: Loans Impaired
Loans Receivable, Net
−Removed: CECL reserve as of December 31, 2021
+Added: CECL reserves as of December 31, 2022
$ 67,880 $ 22,519 $ 45,960 $ 189,778 $ 326,137
−Removed: Increase in CECL reserve 40,995 12,256 13,303 134,904 201,458
−Removed: CECL reserve as of December 31, 2022
+Added: Increase in CECL reserves 10,455 9,041 3,411 227,892 250,799
+Added: CECL reserves as of December 31, 2023
78,335 31,560 49,371 417,670 576,936
−Removed: CECL reserve as of December 31, 2020
+Added: CECL reserves as of December 31, 2021
$ 26,885 $ 10,263 $ 32,657 $ 54,874 $ 124,679
−Removed: Decrease in CECL reserve ( 16,110 ) ( 17,471 ) ( 502 ) ( 360 ) ( 34,443 )
−Removed: Charge-offs of CECL reserve — — — ( 14,427 ) ( 14,427 )
−Removed: CECL reserve as of December 31, 2021
+Added: Increase in CECL reserves 40,995 12,256 13,303 134,904 201,458
+Added: CECL reserves as of December 31, 2022
$ 67,880 $ 22,519 $ 45,960 $ 189,778 $ 326,137
(1) Includes Canadian loans, which have similar risk characteristics as U.S.
−Removed: During the year ended December 31, 2022, we recorded an increase of $ 201.5 million in the CECL reserve against our loans receivable portfolio, bringing our total loans receivable CECL reserve to $ 326.1 million as of December 31, 2022.
−Removed: This CECL reserve reflects certain loans assessed for impairment in our portfolio, as well as macroeconomic conditions, including inflationary pressures and market volatility.
−Removed: During the year ended December 31, 2022, we recorded an increase of $ 134.9 million in the CECL reserve specifically related to four of our loans receivable with an aggregate net book value of $ 644.3 million as of December 31, 2022.
−Removed: As of December 31, 2022, the income accrual was suspended on these four loans as recovery of income and principal was doubtful.
−Removed: During the three months ended December 31, 2022, we recorded $ 11.3 million of interest income on these loans.
−Removed: As of December 31, 2022, we had an aggregate $ 189.8 million CECL reserve specifically related to five of our loans receivable, with an aggregate net book value of $ 929.1 million.
+Added: During the year ended December 31, 2023, we recorded an aggregate increase of $ 250.8 million in the CECL reserves against our loans receivable portfolio, bringing our total loans receivable CECL reserve to $ 576.9 million as of December 31, 2023.
+Added: These CECL reserves reflect certain impaired loans in our portfolio, as well as an additional increase in our CECL reserves due to macroeconomic conditions.
+Added: During the three months ended December 31, 2023, we recorded an aggregate net increase of $ 95.1 million in the asset-specific CECL reserve related to our impaired loans.
+Added: The increase was primarily driven by three additional loans that were impaired during the three months ended December 31, 2023.
+Added: As of December 31, 2023, the income accrual was suspended on these loans as recovery of income and principal was doubtful.
+Added: During the three months ended December 31, 2023, we recorded $ 5.9 million of interest income on these three loans.
+Added: As of December 31, 2023, we had an aggregate $ 417.7 million asset-specific CECL reserve related to 13 of our loans receivable, with an aggregate amortized cost basis of $ 1.9 billion, net of cost-recovery proceeds.
This CECL reserve was recorded based on our estimation of the fair value of each of the loan's underlying collateral as of December 31, 2023.
−Removed: As of December 31, 2021, we had a
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
−Removed: $ 54.9 million CECL reserve specifically related to one of our loans receivable, with a net book value of $ 284.8 million.
−Removed: No income was recorded on this loan during the years ended December 31, 2022 and 2021.
−Removed: As of December 31, 2022, all borrowers were current with all contractual terms of each respective loan, including payments of interest.
−Removed: Refer to Note 2 for further discussion of our revenue recognition policy and CECL reserve.
−Removed: During the fourth quarter of 2022, we entered into a loan modification related to an office asset in New York City, which is classified as a troubled debt restructuring under GAAP.
−Removed: This modification included, among other changes, a reduction in the loan's contractual interest payments, an incremental exit fee, and an extension of the loan's maturity date.
−Removed: This loan has an outstanding principal balance of $ 193.6 million, with commitments to fund an additional $ 8.2 million, at our discretion, as of December 31, 2022.
−Removed: As of December 31, 2022, this loan was deemed impaired and we recorded an asset-specific CECL reserve against this loan.
−Removed: Previously, we entered into loan modifications related to a multifamily asset in New York City, which were classified as troubled debt restructurings under GAAP.
−Removed: During the three months ended December 31, 2021, the borrower committed significant additional capital to the property and engaged new management to oversee property operations, and we reduced the loan's outstanding principal balance to $ 37.5 million.
−Removed: As a result of the modification, during the three months ended December 31, 2021, we charged-off $ 14.4 million of the $ 14.8 million asset-specific CECL reserve we recorded on this loan, and reversed the remaining $ 360,000 CECL reserve.
−Removed: As of December 31, 2022, this loan has an outstanding principal balance of $ 38.2 million, net of cost-recovery proceeds.
−Removed: As of December 31, 2022, this loan was deemed impaired and we recorded an asset-specific CECL reserve against this loan.
−Removed: Previously, we entered into a loan modification related to a hospitality asset in New York City, which is classified as a troubled debt restructuring under GAAP.
−Removed: As of December 31, 2022, this loan has an outstanding principal balance of $ 286.3 million, net of cost-recovery proceeds.
−Removed: As of June 30, 2020 this loan was deemed impaired and we recorded an asset-specific CECL reserve against this loan.
−Removed: This asset-specific CECL reserve has not changed as of December 31, 2022.
+Added: No income was recorded on our impaired loans subsequent to determining that they were impaired.
+Added: As of December 31, 2023, one of these loans with an amortized cost basis of $ 140.0 million, was past its current maturity date.
+Added: This loan was less than 30 days past due on its interest payment and had a risk rating of “5”.
+Added: As of December 31, 2023, all other borrowers were compliant with the contractual terms of each respective loan, including any required payment of interest.
+Added: During the year ended December 31, 2023, we received an aggregate $ 53.0 million of cash proceeds from such loans that were applied as a reduction to the amortized cost basis of each respective loan.
+Added: Refer to Note 2 for further discussion of our policies on revenue recognition and our CECL reserves.
+Added: As of December 31, 2022, we had a $ 189.8 million CECL reserve specifically related to five of our loans receivable, with an amortized cost basis of $ 929.1 million.
+Added: This CECL reserve was recorded based on our estimation of the fair value of each of the loan’s underlying collateral as of December 31, 2022.
Blackstone Mortgage Trust, Inc.
1 unchanged sentence
Our primary credit quality indicator is our risk ratings, which are further discussed above.
−Removed: The following tables present the net book value of our loan portfolio as of December 31, 2022 and December 31, 2021, respectively, by year of origination, investment pool, and risk rating ($ in thousands):
+Added: The following tables present the net book value of our loan portfolio as of December 31, 2023 and 2022, respectively, by year of origination, investment pool, and risk rating ($ in thousands):
Net Book Value of Loans Receivable by Year of Origination (1)
38 unchanged sentences
Origination dates are subsequently updated to reflect material loan modifications.
−Removed: (2) Includes Canadian loans, which have similar risk characteristics as U.S.
Blackstone Mortgage Trust, Inc.
40 unchanged sentences
Origination dates are subsequently updated to reflect material loan modifications.
−Removed: (2) Excludes the $ 78.0 million net book value of our held-to-maturity debt securities which represents our subordinate position we own in the 2018 Single Asset Securitization, and is included in other assets on our consolidated balance sheets.
−Removed: See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization.
(2) Includes Canadian loans, which have similar risk characteristics as U.S.
1 unchanged sentence
Notes to Consolidated Financial Statements (continued)
+Added: Loan Modifications Pursuant to ASC 326
+Added: During the year ended December 31, 2023, we entered into five loan modifications that require disclosure pursuant to ASC 326.
+Added: Four of these loans were collateralized by office assets and one was collateralized by a hospitality asset.
+Added: Three of the loan modifications included other-than-insignificant payment delays, specifically the option to pay interest in-kind.
+Added: For one of the loans the maximum maturity date was extended by one year , the borrower contributed $ 2.0 million of additional reserves, and the interest rate increased by 5.11 %.
+Added: The second modification included an additional 4.00 % exit fee.
+Added: The third modification included an additional 2.00 % exit fee and the interest rate increased by 2.00 %.
+Added: As of December 31, 2023, the aggregate amortized cost basis of these loans was $ 546.3 million, or 2.3 % of our aggregate loans receivable portfolio, with an aggregate $ 10.0 million of unfunded commitments.
+Added: The loans were performing pursuant to their contractual terms as of December 31, 2023, had risk ratings of “5” as of December 31, 2023, and have asset-specific CECL reserves.
+Added: The other two loan modifications included a combination of changes to the contractual terms of the loans, including term extensions, other-than-insignificant payment delays, and/or interest rate reductions.
+Added: The first loan modification included a term extension of 19 months, a rate reduction of 2.74 % and conversion to fixed rate, with a portion of the interest paid in-kind.
+Added: The borrower repaid $ 4.9 million of the loan at the time of modification, with an additional $ 2.5 million of repayment due during the initial maturity period.
+Added: The second loan modification included a term extension of 4.5 years, a rate increase of 8.50 % with interest paid in-kind, a borrower contribution of $ 2.0 million of additional reserves, and a $ 50.0 million increase in our total loan commitment.
+Added: As of December 31, 2023, the aggregate amortized cost basis of these loans was $ 434.5 million, or 1.8 % of our aggregate loans receivable portfolio, with an aggregate $ 40.0 million of unfunded commitments.
+Added: The loans were performing pursuant to their contractual terms as of December 31, 2023.
+Added: As of December 31, 2023, one of these loans had a risk rating of “4”, and its modified terms were included in the determination of our general CECL reserve, and the other loan had a risk rating of “5” and has an asset-specific CECL reserve.
+Added: 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.
+Added: As of December 31, 2023, all of our loans with a risk rating of “5” are accounted for using the cost-recovery method and no income has been recorded on such loans subsequent to determining that they were impaired.
Multifamily Joint Venture
As discussed in Note 2, we entered into a Multifamily Joint Venture in April 2017.
−Removed: As of December 31, 2022 and December 31, 2021, our Multifamily Joint Venture held $ 795.6 million and $ 746.9 million of loans, respectively, which are included in the loan disclosures above.
+Added: As of December 31, 2023 and 2022, our Multifamily Joint Venture held $ 612.9 million and $ 795.6 million of loans, respectively, which are included in the loan disclosures above.
Refer to Note 2 for additional discussion of our Multifamily Joint Venture.
3 unchanged sentences
Accrued interest receivable $ 214,835 $ 189,569
−Removed: Collateral deposited under derivative agreements 103,110 —
Loan portfolio payments held by servicer (1)
152,423 68,489
−Removed: Derivative assets 7,349 30,531
+Added: Collateral deposited under derivative agreements 103,500 103,110
Accounts receivable and other assets 2,420 1,318
+Added: Derivative assets 1,890 7,349
Prepaid expenses 1,020 1,067
−Removed: Debt securities held-to-maturity (2)
−Removed: CECL reserve — ( 70 )
−Removed: Debt securities held-to-maturity, net — 78,013
Total $ 476,088 $ 370,902
(1) Primarily represents loan principal held by our third-party loan servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle.
−Removed: (2) Represents the subordinate position we own in the 2018 Single Asset Securitization, which held aggregate loan assets of $ 379.3 million as of December 31, 2021, with a yield to full maturity of L+10.0% and a maximum maturity date of June 9, 2025, assuming all extension options are exercised by the borrower.
−Removed: During the year ended December 31, 2022, the 2018 Single Asset Securitization was liquidated upon full repayment of its collateral and all senior securities outstanding.
−Removed: Refer to Note 18 for additional discussion.
−Removed: Current Expected Credit Loss Reserve
−Removed: The CECL reserve required under GAAP reflects our current estimate of potential credit losses related to the loans and debt securities included in our consolidated balance sheets.
−Removed: Refer to Note 2 for further discussion of our CECL reserve.
−Removed: The following table presents the activity in our debt securities CECL reserve for the year ended December 31, 2022 and 2021 ($ in thousands):
−Removed: Debt Securities Held-To-Maturity Total
−Removed: CECL reserve as of December 31, 2021
−Removed: Decrease in CECL reserve $ ( 70 )
−Removed: CECL reserve as of December 31, 2022
−Removed: CECL reserve as of December 31, 2020
−Removed: Decrease in CECL reserve $ ( 1,653 )
−Removed: CECL reserve as of December 31, 2021
Blackstone Mortgage Trust, Inc.
3 unchanged sentences
December 31, 2023 December 31, 2022
−Removed: Derivative liabilities $ 119,665 $ 5,890
Accrued dividends payable $ 107,390 $ 106,455
Accrued interest payable 97,820 80,263
+Added: Derivative liabilities 94,817 119,665
+Added: Accrued management and incentive fees payable 26,342 33,830
+Added: Current expected credit loss reserves for unfunded loan commitments (1)
+Added: 15,371 16,380
Secured debt repayments pending servicer remittance (2)
13,526 60,585
−Removed: Accrued management and incentive fees payable 33,830 28,373
−Removed: Current expected credit loss reserve for unfunded loan commitments (2)
Accounts payable and other liabilities 7,265 9,726
Total $ 362,531 $ 426,904
−Removed: (1) Represents pending transfers from our third-party loan servicer that were remitted to our banking counterparties during the subsequent remittance cycle.
(1) Represents the CECL reserve related to our unfunded loan commitments.
−Removed: See Note 2 for further discussion of the CECL reserve.
−Removed: Current Expected Credit Loss Reserve for Unfunded Loan Commitments
−Removed: As of December 31, 2022, we had unfunded commitments of $ 3.8 billion related to 121 loans receivable.
+Added: See Note 2 for further discussion of the CECL reserves.
+Added: (2) Represents pending transfers from our third-party loan servicer that were remitted to our banking counterparties during the subsequent remittance cycle.
+Added: Current Expected Credit Loss Reserves for Unfunded Loan Commitments
+Added: As of December 31, 2023, we had aggregate unfunded commitments of $ 2.4 billion related to 99 loans receivable.
The expected credit losses over the contractual period of our loans is impacted by our obligation to extend further credit through our unfunded loan commitments.
−Removed: See Note 2 for further discussion of the CECL reserve related to our unfunded loan commitments, and Note 20 for further discussion of our unfunded loan commitments.
−Removed: The following table presents the activity in the CECL reserve related to our unfunded loan commitments by investment pool for the year ended December 31, 2022 and 2021 ($ in thousands):
+Added: See Note 2 for further discussion of the CECL reserves related to our unfunded loan commitments, and Note 20 for further discussion of our unfunded loan commitments.
+Added: The following table presents the activity in the CECL reserves related to our unfunded loan commitments by investment pool for the year ended December 31, 2023 and 2022 ($ in thousands):
Loans Non-U.S.
−Removed: CECL reserve as of December 31, 2021
+Added: CECL reserves as of December 31, 2022
$ 11,748 $ 4,632 $ — $ — $ 16,380
−Removed: Increase in CECL reserve 7,676 2,441 — — 10,117
−Removed: CECL reserve as of December 31, 2022
+Added: Decrease in CECL reserves ( 693 ) ( 316 ) — — ( 1,009 )
+Added: CECL reserves as of December 31, 2023
$ 11,055 $ 4,316 $ — $ — $ 15,371
−Removed: CECL reserve as of December 31, 2020
+Added: CECL reserves as of December 31, 2021
$ 4,072 $ 2,191 $ — $ — $ 6,263
−Removed: Decrease in CECL reserve ( 2,881 ) ( 803 ) ( 84 ) — ( 3,768 )
−Removed: CECL reserve as of December 31, 2021
+Added: Increase in CECL reserves 7,676 2,441 — — 10,117
+Added: CECL reserves as of December 31, 2022
$ 11,748 $ 4,632 $ — $ — $ 16,380
3 unchanged sentences
Our secured debt includes our secured credit facilities and our acquisition facility.
+Added: During the year ended December 31, 2023, we obtained approval for $ 112.1 million of new borrowings against $ 141.9 million of collateral assets.
During the year ended December 31, 2022, we obtained approval for $ 4.6 billion of new borrowings against $ 5.9 billion of collateral assets.
−Removed: Additionally, during the year ended December 31, 2022, we (i) entered into two new secured credit facilities providing an aggregate $ 2.2 billion of credit capacity and (ii) we increased the size of six existing secured credit facilities providing an aggregate $ 1.4 billion of additional credit capacity.
The following table details our secured debt ($ in thousands):
11 unchanged sentences
The facilities are uniformly structured to provide currency, index, and term-matched financing without capital markets based mark-to-market provisions.
+Added: Our credit facilities are diversified across 15 counterparties, primarily consisting of top global financial institutions to minimize our counterparty risk exposure.
The following table details our secured credit facilities by spread over the applicable base rates as of December 31, 2023 ($ in thousands):
2 unchanged sentences
Currency Lenders (1)
−Removed: Borrowings Wtd Avg.
+Added: Borrowings Wtd.
Loan Count Collateral (3)
−Removed: USD 14 $ 7,497,992 2/21/2026 145 $ 11,719,558 3/4/2026 36 % 25 % - 100 %
−Removed: GBP 7 2,320,720 4/7/2026 23 3,081,729 4/30/2026 27 % 25 % - 50 %
−Removed: EUR 7 2,128,248 8/12/2025 12 2,866,848 8/15/2025 42 % 25 % - 100 %
−Removed: 4 1,602,788 7/4/2027 7 2,026,655 6/23/2027 25 % 25 %
−Removed: Total 15 $ 13,549,748 3/29/2026 185 $ 19,694,790 4/2/2026 34 % 25 % - 100 %
+Added: USD 14 $ 6,643,853 June 2026 125 $ 10,584,023 June 2026 35 % 25 % - 100 %
+Added: GBP 7 2,337,852 June 2026 19 3,143,684 August 2026 27 % 25 % - 50 %
+Added: EUR 7 2,068,449 September 2025 11 2,786,896 September 2025 41 % 25 % - 100 %
+Added: 4 1,646,904 July 2027 7 2,079,715 July 2027 25 % 25 %
+Added: Total 15 $ 12,697,058 June 2026 162 $ 18,594,318 June 2026 33 % 25 % - 100 %
(1) Represents the number of lenders with fundings advanced in each respective currency, as well as the total number of facility lenders.
4 unchanged sentences
(4) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date.
−Removed: (5) Includes Australian Dollar, Canadian Dollar, Danish Krone, Swedish Krona, and Swiss Franc currencies.
+Added: (5) Includes Australian Dollar, Danish Krone, 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.
−Removed: 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.
+Added: Certain structural elements of our secured credit facilities, including the
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
−Removed: The following tables detail the spread of our secured debt as of December 31, 2022 and December 31, 2021 ($ in thousands):
+Added: 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.
+Added: The following tables detail the spread of our secured debt as of December 31, 2023 and 2022 ($ in thousands):
Year Ended December 31, 2023 December 31, 2023
18 unchanged sentences
Total $ 3,350,146 $ 13,549,748 + 1.85 % $ 19,694,790 + 3.70 % + 1.85 %
−Removed: (1) The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include USD LIBOR, SOFR, SONIA, GBP LIBOR, EURIBOR, and other indices as applicable.
−Removed: (2) Represents borrowings outstanding as of December 31, 2022 and December 31, 2021, respectively, for new financings during the year ended December 31, 2022 and December 31, 2021, respectively, based on the date collateral was initially pledged to each credit facility.
+Added: (1) The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include SOFR, USD LIBOR, SONIA, EURIBOR, and other indices as applicable.
+Added: (2) Represents borrowings outstanding as of December 31, 2023 and 2022 for new financings closed during the year ended December 31, 2023 and year ended December 31, 2022, 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.
−Removed: (4) Represents the weighted-average all-in cost as of December 31, 2022 and December 31, 2021, respectively, and is not necessarily indicative of the spread applicable to recent or future borrowings.
+Added: All-in yield excludes loans accounted for under the cost-recovery method.
+Added: (4) Represents the weighted-average all-in cost as of December 31, 2023 and 2022, respectively, and is not necessarily indicative of the spread applicable to recent or future borrowings.
(5) Represents the principal balance of the collateral assets.
5 unchanged sentences
The cost of borrowing under the facility is variable, dependent on the type of loan collateral, and its maturity date is April 3, 2024.
+Added: During the year ended December 31, 2023, we had no borrowings under the acquisition facility and we recorded interest expense of $ 722,000 , including $ 233,000 of amortization of deferred fees and expenses.
During the year ended December 31, 2022, we had no borrowings under the acquisition facility and we recorded interest expense of $ 1.2 million, including $ 333,000 of amortization of deferred fees and expenses.
−Removed: During the year ended December 31, 2021, we had no borrowings under the acquisition facility and we recorded interest
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
−Removed: expense of $ 1.2 million, including $ 354,000 of amortization of deferred fees and expenses.
−Removed: As of December 31, 2021, we had one asset pledged to our acquisition facility and there was an aggregate $ 147.5 million available to be drawn at our discretion.
Financial Covenants
4 unchanged sentences
and (iv) our indebtedness shall not exceed 83.33 % of our total assets.
−Removed: As of December 31, 2022 and December 31, 2021, we were in compliance with these covenants.
+Added: As of December 31, 2023 and 2022, we were in compliance with these covenants.
SECURITIZED DEBT OBLIGATIONS, NET
−Removed: We have financed certain pools of our loans through collateralized loan obligations, which include the 2021 FL4 CLO, 2020 FL3 CLO, and 2020 FL2 CLO or collectively, the CLOs.
+Added: 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 18 for further discussion of our CLOs.
−Removed: The following tables detail our securitized debt obligations and the underlying collateral assets that are financed ($ in thousands):
+Added: The following tables detail our securitized debt obligations and the underlying collateral assets that are financed by our CLOs ($ in thousands):
December 31, 2023
3 unchanged sentences
Senior CLO Securities Outstanding 1 $ 803,750 $ 801,800 + 1.70 % May 2038
−Removed: Underlying Collateral Assets 30 1,000,000 1,000,000 + 3.47 % May 2025
+Added: Underlying Collateral Assets 26 1,000,000 1,000,000 + 3.28 % December 2025
2020 FL3 Collateralized Loan Obligation
Senior CLO Securities Outstanding 1 714,352 714,352 + 2.18 % November 2037
−Removed: Underlying Collateral Assets 16 1,000,000 1,000,000 + 3.25 % November 2024
+Added: Underlying Collateral Assets 15 905,602 905,602 + 2.87 % September 2025
2020 FL2 Collateralized Loan Obligation
Senior CLO Securities Outstanding 1 989,412 989,265 + 1.57 % February 2038
−Removed: Underlying Collateral Assets 17 1,317,916 1,317,916 + 3.42 % November 2024
+Added: Underlying Collateral Assets 15 1,246,287 1,246,287 + 2.85 % October 2025
Senior CLO Securities Outstanding (5)
1 unchanged sentence
Underlying Collateral Assets 56 $ 3,151,889 $ 3,151,889 + 2.99 %
+Added: (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.
−Removed: (2) The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR and SOFR, as applicable to each securitized debt obligation.
−Removed: As of December 31, 2022, the floating benchmark rate for the financing provided on the 2020 FL3 and 2020 FL2 CLOs is one-month SOFR.
−Removed: As of December 31, 2022, one-month SOFR was 4.36 % and one-month USD LIBOR was 4.39 %.
−Removed: Excludes loans accounted for under the cost recovery method.
+Added: (3) The weighted-average all-in yield and cost are expressed as a spread over SOFR, which is the relevant floating benchmark rate for each securitized debt obligation.
+Added: All-in yield excludes loans accounted for under the cost-recovery method.
(4) Underlying Collateral Assets term represents the weighted-average final maturity of such loans, assuming all extension options are exercised by the borrower.
6 unchanged sentences
Securitized Debt Obligations Count Principal
−Removed: Book Value Wtd.
+Added: Book Value (1)
Yield/Cost (2)(3)
1 unchanged sentence
Senior CLO Securities Outstanding 1 $ 803,750 $ 799,626 + 1.57 % May 2038
−Removed: Underlying Collateral Assets 34 1,000,000 1,000,000 + 3.42 % October 2024
+Added: Underlying Collateral Assets 30 1,000,000 1,000,000 + 3.47 % May 2025
2020 FL3 Collateralized Loan Obligation
Senior CLO Securities Outstanding 1 808,750 806,757 + 2.14 % November 2037
−Removed: Underlying Collateral Assets 18 1,000,000 1,000,000 + 3.06 % May 2024
+Added: Underlying Collateral Assets 16 1,000,000 1,000,000 + 3.25 % November 2024
2020 FL2 Collateralized Loan Obligation
Senior CLO Securities Outstanding 1 1,061,041 1,057,627 + 1.55 % February 2038
−Removed: Underlying Collateral Assets 21 1,500,000 1,500,000 + 3.15 % March 2024
+Added: Underlying Collateral Assets 17 1,317,916 1,317,916 + 3.42 % November 2024
Senior CLO Securities Outstanding (4)
1 unchanged sentence
Underlying Collateral Assets 63 $ 3,317,916 $ 3,317,916 + 3.38 %
+Added: (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.
−Removed: (2) The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR and SOFR, as applicable to each securitized debt obligation.
−Removed: As of December 31, 2021, the floating benchmark rate for the financing provided on the 2020 FL3 and 2020 FL2 CLOs is one-month SOFR.
−Removed: As of December 31, 2021, one-month SOFR was 0.05 % and one-month USD LIBOR was 0.10 %.
+Added: (3) The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates, which include SOFR and USD LIBOR, as applicable to each securitized debt obligation.
+Added: All-in yield excludes loans accounted for under the cost-recovery method.
(4) Underlying Collateral Assets term represents the weighted-average final maturity of such loans, assuming all extension options are exercised by the borrower.
3 unchanged sentences
ASSET-SPECIFIC DEBT, NET
−Removed: The following tables detail our asset-specific debt ($ in thousands):
+Added: The following table details our asset-specific debt ($ in thousands):
December 31, 2023
Asset-Specific Debt Count Principal
−Removed: Book Value Wtd.
+Added: Book Value (1)
Yield/Cost (2)
−Removed: Financing provided 4 $ 950,278 $ 942,503 + 3.29 % January 2026
−Removed: Collateral assets 4 $ 1,094,450 $ 1,081,035 + 4.73 % January 2026
+Added: Financing provided 2 $ 1,004,097 $ 1,000,210 + 3.14 % March 2026
+Added: Collateral assets 2 $ 1,194,408 $ 1,186,559 + 3.98 % March 2026
December 31, 2022
Asset-Specific Debt Count Principal
−Removed: Book Value Wtd.
+Added: Book Value (1)
Yield/Cost (22)
−Removed: Financing provided 4 $ 400,699 $ 393,824 + 2.78 % March 2025
−Removed: Collateral assets 4 $ 446,276 $ 435,727 + 4.04 % March 2025
−Removed: (1) These floating rate loans and related liabilities are currency and indexed matched to the applicable benchmark rate relevant in each arrangement.
+Added: Financing provided 4 $ 950,278 $ 942,503 + 3.29 % January 2026
+Added: Collateral assets 4 $ 1,094,450 $ 1,081,035 + 4.73 % January 2026
+Added: (1) The book value of underlying collateral assets excludes any applicable CECL reserves.
+Added: (2) 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.
−Removed: Our asset-specific debt is term-matched in each case to the corresponding collateral loans.
+Added: Our non-recourse, asset-specific debt is term-matched in each case to the corresponding collateral loans.
Blackstone Mortgage Trust, Inc.
1 unchanged sentence
LOAN PARTICIPATIONS SOLD, NET
−Removed: The financing of a loan by the non-recourse sale of a senior interest in the loan through a participation agreement generally does not qualify as a sale under GAAP.
−Removed: Therefore, in the instance of such sales, we 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.
−Removed: The obligation to pay principal and interest on these liabilities is generally based on the performance of the related loan obligation, and does not require an actual cash outlay from us.
−Removed: The gross presentation of loan participations sold does not impact stockholders’ equity or net income.
+Added: The sale of a non-recourse interest in a loan through a participation agreement generally does not qualify for sale accounting under GAAP.
+Added: 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.
+Added: 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):
1 unchanged sentence
Loan Participations Sold Count Principal
−Removed: Book Value Wtd.
+Added: Book Value (1)
Yield/Cost (2)
−Removed: Senior Participation (3)
+Added: Senior Participations
+Added: Loan Participation
1 $ 236,797 $ 236,499 + 3.22 % March 2027
Total Loan 1 295,996 294,783 + 4.86 % March 2027
+Added: Junior Participations
+Added: Loan Participation
+Added: 2 $ 100,924 $ 100,680 + 7.50 % February 2026
+Added: 2 401,569 399,603 + 4.75 % February 2026
+Added: Loan Participation (4)
+Added: 3 $ 337,721 $ 337,179
+Added: 3 $ 697,565 $ 694,386
+Added: December 31, 2022
+Added: Loan Participations Sold Count Principal
+Added: Balance Book Value (1)
+Added: Yield/Cost (2)
+Added: Senior Participations
+Added: Loan Participation
+Added: 1 $ 224,744 $ 224,232 + 3.22 % March 2027
+Added: Total Loan 1 280,930 278,843 + 4.86 % March 2027
+Added: Loan Participation (4)
+Added: 1 $ 224,744 $ 224,232
+Added: 1 $ 280,930 $ 278,843
+Added: (1) The book value of underlying collateral assets excludes any applicable CECL reserves.
(2) This non-debt participation sold structure is inherently matched in terms of currency and interest rate.
1 unchanged sentence
(3) The term is determined based on the maximum maturity of the loan, assuming all extension options are exercised by the borrower.
−Removed: Our loan participation sold is term-matched to the corresponding collateral loan.
+Added: Our loan participations sold are inherently non-recourse and term-matched to the corresponding loan.
(4) During the year ended December 31, 2023, we recorded $ 20.6 million of interest expense related to our loan participations sold.
−Removed: We did not have any loan participations sold as of December 31, 2021.
+Added: During the year ended December 31, 2022 we recorded $ 7.9 million of interest expense related to our loan participations sold.
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
TERM LOANS, NET
−Removed: During the year ended December 31, 2022, we borrowed an additional $ 825.0 million under our term loan facilities, or the B-4 Term Loan.
−Removed: The B-4 Term Loan bears interest at SOFR plus 3.50 % and matures in May 2029.
As of December 31, 2023, the following senior term loan facilities, or Term Loans, were outstanding ($ in thousands):
4 unchanged sentences
B-4 Term Loan 813,427 + 3.50 % + 4.11 % May 9, 2029
+Added: Total face value $ 2,135,221
(1) The B-3 Term Loan and the B-4 Term Loan borrowings are subject to a floor of 0.50 %.
−Removed: The B-1 Term Loan and B-3 Term Loan are indexed to one-month USD LIBOR and the B-4 Term Loan is indexed to one-month SOFR.
+Added: 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.
3 unchanged sentences
The issue discount and transaction expenses of the B-4 Term Loan were $ 17.3 million and $ 10.3 million, respectively.
−Removed: These discounts and expenses will be amortized into interest expense over the life of each Term Loan.
+Added: These discounts and expenses are amortized into interest expense over the life of each Term Loan.
During the year ended December 31, 2023, we recorded $ 181.1 million of interest expense related to our Term Loans, including $ 9.3 million of amortization of deferred fees and expenses.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
The following table details the net book value of our Term Loans on our consolidated balance sheets ($ in thousands):
3 unchanged sentences
Net book value $ 2,101,632 $ 2,114,549
−Removed: The guarantee under our Term Loans contains the financial covenant that our indebtedness shall not exceed 83.33 % of our total assets.
−Removed: As of December 31, 2022 and December 31, 2021, we were in compliance with this covenant.
+Added: The Term Loans contain the financial covenant that our indebtedness shall not exceed 83.33 % of our total assets.
+Added: As of December 31, 2023 and 2022, we were in compliance with this covenant.
Refer to Note 2 for additional discussion of our accounting policies for the Term Loans.
SENIOR SECURED NOTES, NET
−Removed: As of December 31, 2022, the following Senior Secured Notes, were outstanding ($ in thousands):
+Added: As of December 31, 2023, the following senior secured notes, or Senior Secured Notes, were outstanding ($ in thousands):
Senior Secured Notes Face Value Interest Rate All-in Cost (1)
1 unchanged sentence
(1) Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes.
−Removed: The transaction expenses on the Senior Secured Notes were $ 6.3 million, which will be amortized into interest expense over the life of the Senior Secured Notes.
+Added: The transaction expenses on the Senior Secured Notes were $ 6.3 million, which are amortized into interest expense over the life of the Senior Secured Notes.
During the year ended December 31, 2023, we recorded $ 15.7 million of interest expense related to our Senior Secured Notes, including $ 1.2 million of amortization of deferred fees and expenses.
+Added: During the year ended December 31, 2023, we repurchased an aggregate principal amount of $ 33.9 million of the Senior Secured Notes at a weighted-average price of 85 %.
+Added: This resulted in a gain on extinguishment of debt of $ 4.6 million during the year ended December 31, 2023.
+Added: There was no repurchase activity during the year ended December 31, 2022.
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
The following table details the net book value of our Senior Secured Notes on our consolidated balance sheets ($ in thousands):
3 unchanged sentences
Net book value $ 362,763 $ 395,166
−Removed: The covenants under our Senior Secured Notes require us to maintain a total debt to total assets ratio, as defined in the agreements, of not greater than 83.33 % and, in certain circumstances, a total unencumbered assets to total unsecured indebtedness ratio, as defined in the agreements, of 1.20 or greater.
−Removed: As of December 31, 2022 and December 31, 2021, we were in compliance with these covenants.
+Added: The Senior Secured Notes contain the financial covenant that our indebtedness shall not exceed 83.33 % of our total assets.
+Added: As of December 31, 2023 and 2022, we were in compliance with this covenant.
+Added: 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.
+Added: This covenant is not currently in effect as the collateral securing our Senior Secured Notes has not been released.
CONVERTIBLE NOTES, NET
−Removed: During the year ended December 31, 2022, we issued $ 300.0 million aggregate principal amount of 5.50 % convertible senior notes due 2027, or the March 2022 convertible notes.
−Removed: In connection with this offering, we repurchased $ 64.7 million aggregate principal amount of our May 2017 convertible senior notes at a price of 100.25 % per $1,000 principal amount.
−Removed: We repaid the remaining $ 337.9 million aggregate principal amount of our May 2017 convertible senior notes at maturity on May 5, 2022.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
+Added: During the year ended December 31, 2023, we repaid the aggregate $ 220.0 million principal amount of our 4.75 % convertible senior notes due 2023 at maturity on March 15, 2023.
As of December 31, 2023, the following convertible senior notes, or Convertible Notes, were outstanding ($ in thousands):
1 unchanged sentence
Conversion Price (2)
−Removed: March 2018 $ 220,000 4.75 % 5.33 % $ 36.23 March 15, 2023
−Removed: March 2022 $ 300,000 5.50 % 5.94 % $ 36.27 March 15, 2027
+Added: March 2022 convertible notes $ 300,000 5.50 % 5.94 % $ 36.27 March 15, 2027
(1) Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the effective interest method.
−Removed: (2) Represents the price of class A common stock per share based on a conversion rate of 27.6052 and 27.5702 , respectively, for the March 2018 and March 2022 convertible notes.
+Added: (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.
−Removed: The cumulative dividend threshold as defined in the respective March 2018 and March 2022 convertible notes supplemental indentures have not been exceeded as of December 31, 2022.
−Removed: Other than as provided by the optional redemption provisions with respect to our March 2022 convertible notes, we may not redeem the Convertible Notes prior to maturity.
−Removed: The March 2022 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.
−Removed: Thereafter, the March 2022 convertible notes are convertible at the option of the holder at any time until the second scheduled trading day immediately preceding the maturity date.
−Removed: The March 2018 convertible notes are currently convertible at the option of the holder at any time until the second scheduled trading day immediately preceding the maturity date.
−Removed: We have elected to settle the March 2018 convertible notes in cash for any conversions that occur during the final conversion period.
−Removed: The last reported sale price of our class A common stock of $ 21.17 on December 30, 2022, the last trading day in the year ended December 31, 2022, was less than the per share conversion price of the March 2018 and March 2022 convertible notes.
−Removed: We adopted ASU 2020-06 on January 1, 2022, using the modified retrospective method of transition, which resulted in an aggregate decrease to our additional paid-in capital of $ 2.4 million, an aggregate decrease to our accumulated deficit of $ 2.0 million, and an aggregate increase to our convertible notes, net, balance of $ 477,000 , as of January 1, 2022.
−Removed: Subsequent to adoption of ASU 2020-06, convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature, will no longer be allocated between debt and equity components.
−Removed: This reduces the issue discount and results in less non-cash interest expense in our consolidated financial statements.
−Removed: Additionally, ASU 2020-06 results in the reporting of diluted earnings per share for shares issuable under our convertible notes in our consolidated financial statements, if the effect is dilutive, regardless of our settlement intent.
−Removed: Refer to Note 2 and Note 13 for additional discussion of ASU 2020-06 and our earnings per share calculation, respectively.
+Added: The cumulative dividend threshold has not been exceeded as of December 31, 2023.
+Added: 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.
+Added: 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.
+Added: 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.
+Added: The last reported sale price of our class A common stock of $ 21.27 on December 29, 2023, the last trading day in the year ended December 31, 2023, was less than the per share conversion price of the Convertible Notes.
The following table details the net book value of our Convertible Notes on our consolidated balance sheets ($ in thousands):
3 unchanged sentences
Net book value $ 295,847 $ 514,257
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
The following table details our interest expense related to the Convertible Notes ($ in thousands):
4 unchanged sentences
Total interest expense $ 20,228 $ 31,712 $ 31,545
−Removed: Accrued interest payable for the Convertible Notes was $ 7.9 million and $ 6.0 million as of December 31, 2022 and December 31, 2021, respectively.
+Added: Accrued interest payable for the Convertible Notes was $ 4.9 million and $ 7.9 million as of December 31, 2023 and 2022, respectively.
Refer to Note 2 for additional discussion of our accounting policies for the Convertible Notes.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
DERIVATIVE FINANCIAL INSTRUMENTS
3 unchanged sentences
The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these contractual arrangements do not perform as agreed.
−Removed: 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 may also have other financial relationships.
+Added: 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
3 unchanged sentences
Designated Hedges of Foreign Currency Risk
−Removed: The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amount in thousands):
+Added: The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amounts in thousands):
December 31, 2023 December 31, 2022
2 unchanged sentences
Buy USD / Sell SEK Forward 2 kr 973,246 Buy USD / Sell SEK Forward 2 kr 1,003,626
−Removed: Buy USD / Sell EUR Forward 8 € 722,311 Buy USD / Sell EUR Forward 7 € 731,182
−Removed: Buy USD / Sell GBP Forward 6 £ 690,912 Buy USD / Sell GBP Forward 2 £ 489,204
+Added: Buy USD / Sell GBP Forward 7 £ 696,919 Buy USD / Sell EUR Forward 8 € 722,311
+Added: Buy USD / Sell EUR Forward 8 € 673,644 Buy USD / Sell GBP Forward 6 £ 690,912
Buy USD / Sell AUD Forward 10 A$ 471,989 Buy USD / Sell AUD Forward 8 A$ 541,813
Buy USD / Sell DKK Forward 2 kr.
−Removed: 195,019 Buy USD / Sell CAD Forward 2 C$ 22,100
−Removed: Buy USD / Sell CAD Forward 2 C$ 22,187 Buy USD / Sell CHF Forward 1 CHF 5,200
+Added: 195,674 Buy USD / Sell DKK Forward 3 kr.
+Added: Buy USD / Sell CHF Forward 4 CHF 8,352 Buy USD / Sell CAD Forward 2 C$ 22,187
Buy USD / Sell CHF Forward 2 CHF 5,263
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
Non-designated Hedges of Foreign Currency Risk
−Removed: The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign currency risk (notional amount in thousands):
+Added: The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign currency risk (notional amounts in thousands):
December 31, 2023 December 31, 2022
1 unchanged sentence
Non-designated Hedges Number of
−Removed: Buy GBP / Sell USD Forward 2 £ 109,076 Buy GBP / Sell USD Forward 3 £ 170,600
−Removed: Buy USD / Sell GBP Forward 2 £ 109,076 Buy USD / Sell GBP Forward 3 £ 170,600
−Removed: Buy AUD / Sell USD Forward 1 A$ 23,600 Buy EUR / Sell USD Forward 2 € 165,560
−Removed: Buy USD / Sell AUD Forward 1 A$ 23,600 Buy USD / Sell EUR Forward 3 € 165,560
−Removed: Buy CHF / Sell USD Forward 1 CHF 20,300
−Removed: Buy USD / Sell CHF Forward 1 CHF 20,300
−Removed: Buy GBP / Sell EUR Forward 1 € 8,410
+Added: Buy SEK / Sell USD Forward 1 kr 30,800 Buy GBP / Sell USD Forward 2 £ 109,076
+Added: Buy USD / Sell SEK Forward 1 kr 30,800 Buy USD / Sell GBP Forward 2 £ 109,076
+Added: Buy GBP / Sell USD Forward 2 £ 26,900 Buy AUD / Sell USD Forward 1 A$ 23,600
+Added: Buy USD / Sell GBP Forward 2 £ 26,900 Buy USD / Sell AUD Forward 1 A$ 23,600
+Added: Buy AUD / Sell USD Forward 1 A$ 7,600
+Added: Buy USD / Sell AUD Forward 1 A$ 7,600
+Added: Cash Flow Hedges of Interest Rate Risk
+Added: Certain of our financing transactions expose us to a fixed versus floating rate mismatch between our assets and liabilities.
+Added: We use derivative financial instruments, which include interest rate swaps, and may also include interest rate caps, interest rate options, floors, and other interest rate derivative contracts, to hedge interest rate risk associated with our borrowings where there is potential for an index mismatch.
+Added: The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (notional amount in thousands):
+Added: December 31, 2023
+Added: Interest Rate Derivatives Number of Instruments Notional Amount Fixed Rate Index Wtd.
+Added: Maturity (Years)
+Added: Interest Rate Swaps 1 $ 229,858 4.60 % SOFR 0.9
+Added: No cash flow hedges of interest rate risk were outstanding as of December 31, 2022.
+Added: Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on our floating rate debt.
+Added: During the twelve months following December 31, 2023, we estimate that an additional $ 317,000 will be reclassified from accumulated other comprehensive income (loss) as a decrease to interest expense.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
−Removed: Financial Statement Impact of Hedges of Foreign Currency Risk
+Added: Financial Statement Impact of Hedges of Foreign Currency and Interest Rate Risks
The following table presents the effect of our derivative financial instruments on our consolidated statements of operations ($ in thousands):
−Removed: Increase (Decrease) to Net Interest Income Recognized from Foreign Exchange Contracts
+Added: Increase (Decrease) to Net Interest Income Recognized from Derivatives
Year Ended December 31,
−Removed: Foreign Exchange Contracts
in Hedging Relationships
4 unchanged sentences
$ 25,439 $ 19,910 $ 7,296
+Added: Designated Hedges Interest Expense (2)
Non-Designated Hedges Interest Income (1)
5 unchanged sentences
These forward contracts effectively convert the foreign currency rate exposure for such investments to USD-equivalent interest rates.
−Removed: (2) Represents the spot rate movement in our non-designated hedges, which are marked-to-market and recognized in interest expense.
+Added: (2) Represents the financial statement impact of proceeds (payments) from periodic settlements related to our interest rate swap, which is designated as a cash flow hedge.
+Added: (3) Represents the spot rate movement in our non-designated foreign currency hedges, which are marked-to-market and recognized in interest expense.
Valuation and Other Comprehensive Income
2 unchanged sentences
Position (1) as of
−Removed: Fair Value of Derivatives in a Liability
−Removed: Position (2) as of
−Removed: Foreign Exchange Contracts December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021
−Removed: Designated Hedges $ 501 $ 23,423 $ 111,573 $ 1,383
−Removed: Non-Designated Hedges 6,848 7,108 8,092 4,507
+Added: Fair Value of Derivatives in a Liability Position (2) as of
+Added: December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
+Added: Derivatives designated as hedging instruments:
+Added: Foreign exchange contracts $ 30 $ 501 $ 92,922 $ 111,573
+Added: Interest rate derivatives 317 — — —
+Added: Total derivatives designated as hedging instruments $ 347 $ 501 $ 92,922 $ 111,573
+Added: Derivatives not designated as hedging instruments:
+Added: Foreign exchange contracts $ 1,543 $ 6,848 $ 1,895 $ 8,092
+Added: Interest rate derivatives — — — —
+Added: Total derivatives not designated as hedging instruments $ 1,543 $ 6,848 $ 1,895 $ 8,092
Total Derivatives $ 1,890 $ 7,349 $ 94,817 $ 119,665
3 unchanged sentences
Notes to Consolidated Financial Statements (continued)
−Removed: The following table presents the effect of our derivative financial instruments on our consolidated statements of operations ($ in thousands):
+Added: 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
−Removed: Amount of Gain (Loss) Recognized in
−Removed: OCI on Derivatives
+Added: Amount of (Loss) Gain Recognized in
+Added: OCI on Derivatives Location of
from Accumulated OCI into Income Amount of
−Removed: Loss Reclassified from
+Added: Gain (Loss) Reclassified from
Accumulated OCI into Income
8 unchanged sentences
Total $ ( 75,014 ) $ 173,362 $ 81,598 $ 893 $ ( 4 ) $ ( 10 )
+Added: (1) During the year ended December 31, 2023, we paid net cash settlements of $ 69.9 million on our foreign currency forward contracts.
During the year ended December 31, 2022, we received net cash settlements of $ 330.3 million on our foreign currency forward contracts.
−Removed: During the years ended December 31, 2021, and 2020, we paid net cash settlements of $ 1.4 million and $ 43.0 million on our foreign currency contracts.
+Added: During the year ended December 31, 2021, we paid net cash settlements of $ 1.4 million on our foreign currency contracts.
Those amounts are included as a component of accumulated other comprehensive income on our consolidated balance sheets.
−Removed: (2) During the year ended December 31, 2022, and 2021, we recorded total interest and related expenses of $ 710.9 million and $ 340.2 million, respectively, which included $ 4,000 and $ 10,000 , respectively, related to our cash flow hedges.
−Removed: During the year ended December 31, 2020, we recorded total interest and related expenses of $ 347.5 million, which was reduced by $ 7,000 related to income generated by our cash flow hedges.
+Added: (2) During the year ended December 31, 2023, we recorded total interest and related expenses of $ 1.4 billion which was reduced by $ 893,000 related to income generated by our cash flow hedges.
+Added: During the years ended December 31, 2022, and 2021, we recorded total interest and related expenses of $ 710.9 million and $ 340.2 million, respectively, which included $ 4,000 and $ 10,000 , respectively, related to our cash flow hedges.
Credit-Risk Related Contingent Features
1 unchanged sentence
In addition, certain of our agreements with our derivative counterparties require that we post collateral to secure net liability positions.
+Added: As of December 31, 2023, we were in a net liability position with our counterparties.
+Added: As of December 31, 2023, we had $ 103.5 million collateral posted with our counterparties.
As of December 31, 2022, we were in a net liability position with one of our counterparties and in a net asset position with our other counterparty.
−Removed: As of December 31, 2022 we had collateral posted of $ 103.1 million.
−Removed: As of December 31, 2021, we were in a net asset position with both of our derivative counterparties and did no t have any collateral posted under these derivative contracts.
+Added: As of December 31, 2022 we had collateral posted with our counterparties of $ 103.1 million.
Stock and Stock Equivalents
3 unchanged sentences
In addition, to the extent not issued, currently authorized stock may be reclassified between class A common stock and preferred stock.
−Removed: We did no t have any shares of preferred stock issued and outstanding as of December 31, 2022 and December 31, 2021.
+Added: We did not have any shares of preferred stock issued and outstanding as of December 31, 2023 and 2022.
Class A Common Stock and Deferred Stock Units
2 unchanged sentences
Notes to Consolidated Financial Statements (continued)
−Removed: The following table details our issuance of class A common stock during the years ended December 31, 2022, 2021 and 2020 ($ in thousands, except per share data):
+Added: We did not issue any class A common stock in underwritten public offerings during the year ended December 31, 2023.
+Added: The following table details our issuance of class A common stock during the years ended December 31, 2022 and 2021.
+Added: ($ in thousands, except per share data):
Class A Common Stock Offerings
3 unchanged sentences
31.64 / 31.37
−Removed: 27.79 / 27.52
Net proceeds (4)
2 unchanged sentences
(2) Issuance includes 296,901 shares issued under our at-the-market program, with a weighted-average gross share issue price of $ 33.67 .
−Removed: (3) Includes 840,696 shares issued to our Manager in satisfaction of the management and incentive fees accrued in the first quarter of 2020, with a share issue price of $ 22.93 .
−Removed: The per share price was calculated based on the volume-weighted average price on the NYSE of our class A common stock over the five trading days following our April 29, 2020 first quarter 2020 earnings conference call.
(3) Represents the gross price per share issued, as well as the net proceeds per share after underwriting or sales discounts and commissions.
(4) Net proceeds represent proceeds received from the underwriters less applicable transaction costs.
−Removed: For the year ended December 31, 2020, includes $ 19.3 million of net proceeds related to 840,696 shares issued to our Manager in satisfaction of the management and incentives fees accrued in the first quarter of 2020.
We also issue restricted class A common stock under our stock-based incentive plans.
15 unchanged sentences
(2) Includes 6,587 , 8,242 , and 2,184 shares issued under our dividend reinvestment program during the years ended December 31, 2023, 2022, and 2021, respectively.
−Removed: (3) Includes 13,197 restricted shares issued to our board of directors during the year ended December 31, 2022.
−Removed: (4) Net of 39,655 shares, 29,580 shares, and 879 shares of restricted class A common stock forfeited under our stock-based incentive plans during the years ended December 31, 2022, 2021, and 2020, respectively.
−Removed: See Note 16 for further discussion of our stock-based incentive plans.
+Added: (3) Includes 25,482 and 13,197 restricted shares issued to our board of directors during the years ended December 31, 2023 and 2022, respectively.
+Added: (4) Net of 15,477 , 39,655 , and 29,580 shares of restricted class A common stock forfeited under our stock-based incentive plans during the years ended December 31, 2023, 2022, and 2021, respectively.
Dividend Reinvestment and Direct Stock Purchase Plan
2 unchanged sentences
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.
−Removed: During the years ended December 31, 2022, 2021, and 2020, we issued 8,242 shares, 2,184 shares, and 2,050 shares, respectively, of class A common stock under the
+Added: During the years ended December 31, 2023, 2022, and 2021, we issued 6,587 shares, 8,242 shares, and 2,184 shares, respectively, of class A common stock under the dividend reinvestment component of the plan.
+Added: As of December 31, 2023, a total of 9,974,961 shares of class A common stock remained available for issuance under the dividend reinvestment and direct stock purchase plan.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
−Removed: dividend reinvestment component of the plan.
−Removed: As of December 31, 2022, a total of 9,981,548 shares of class A common stock remained available for issuance under the dividend reinvestment and direct stock purchase plan.
At the Market Stock Offering Program
2 unchanged sentences
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.
+Added: During the year ended December 31, 2023, we did no t issue any shares of our class A common stock under ATM Agreements.
During the year ended December 31, 2022, we issued and sold 2,303,469 shares of class A common stock under ATM Agreements, generating net proceeds totaling $ 70.7 million.
During the year ended December 31, 2021, we issued and sold 296,901 shares of class A common stock under ATM Agreements, generating net proceeds totaling $ 9.9 million.
−Removed: During the year ended December 31, 2020, we did not issue any shares of our class A common stock under ATM Agreements.
As of December 31, 2023, sales of our class A common stock with an aggregate sales price of $ 480.9 million remained available for issuance under our ATM Agreements.
10 unchanged sentences
100.00 % 100.00 % 100.00 %
+Added: Class A common stock dividends declared $ 427,862 $ 423,568 $ 383,929
+Added: Deferred stock unit dividends declared 878 945 812
+Added: $ 428,740 $ 424,513 $ 384,741
Earnings Per Share
14 unchanged sentences
(1) Represents net income attributable to Blackstone Mortgage Trust.
−Removed: (2) For the year ended December 31, 2022, our Convertible Notes were not included in the calculation of diluted earnings per share, as the impact is antidilutive.
+Added: (2) For the years ended December 31, 2023 and 2022, our Convertible Notes were not included in the calculation of diluted earnings per share, as the impact is antidilutive.
+Added: For the year ended December 31, 2021, prior to the adoption of ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40):
+Added: Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,” our convertible notes were not assessed for dilution as we had the intent and ability to settle the convertible notes in cash.
Our Convertible Notes could dilute earnings per share in future periods.
−Removed: For the years ended December 31, 2021 and 2020, prior to the adoption of ASU 2020-06, our convertible notes were not assessed for dilution as we had the intent and ability to settle the convertible notes in cash.
−Removed: Refer to Note 2 and Note 11 for further discussion of ASU 2020-06 and our convertible notes, respectively.
+Added: Refer to Note 11 for further discussion of our convertible notes.
Other Balance Sheet Items
12 unchanged sentences
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 outstanding Equity, provided that our Core Earnings over the prior three-year period is greater than zero .
−Removed: 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.
+Added: 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
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
+Added: 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 years ended December 31, 2023, 2022 and 2021, we incurred $ 74.8 million, $ 73.0 million and $ 64.2 million respectively, of management fees payable to our manager.
In addition, during the years ended December 31, 2023, 2022 and 2021, we incurred $ 44.2 million, $ 37.3 million and $ 24.3 million respectively, of incentive fees payable to our Manager.
−Removed: During the year ended December 31, 2020, we issued 840,696 shares of class A common stock to our Manager in satisfaction of our aggregate $ 19.3 million of management and incentive fees accrued in the first quarter of 2020.
As of December 31, 2023 and 2022 we had accrued management and incentive fees payable to our Manager of $ 26.3 million and $ 33.8 million, respectively.
11 unchanged sentences
Total general and administrative expenses $ 51,143 $ 52,193 $ 43,168
−Removed: (1) During the years ended December 31, 2022, 2021, and 2020, we recognized an aggregate $ 1.1 million, $ 748,000 , and $ 1.1 million, respectively, of expenses related to our Multifamily Joint Venture.
+Added: (1) During the years ended December 31, 2023, 2022 and 2021, we recognized an aggregate $ 1.2 million, $ 1.1 million, and $ 748,000 , respectively, of expenses related to our Multifamily Joint Venture.
We have elected to be taxed as a REIT under the Internal Revenue Code for U.S.
17 unchanged sentences
Notes to Consolidated Financial Statements (continued)
−Removed: During the years ended December 31, 2022, 2021 and 2020, we recorded a current income tax provision of $ 3.0 million, $ 423,000 , and $ 323,000 , respectively, primarily related to activities of our taxable REIT subsidiaries and various state and local taxes.
+Added: During the years ended December 31, 2023, 2022 and 2021, we recorded a current income tax provision of $ 5.4 million, $ 3.0 million, and $ 423,000 , respectively, primarily related to activities of our U.S.
+Added: and foreign taxable subsidiaries and various state and local taxes.
We did not have any deferred tax assets or liabilities as of December 31, 2023 or December 31, 2022.
2 unchanged sentences
As of December 31, 2023, we had estimated NOLs of $ 159.0 million that will expire in 2029, unless they are utilized by us prior to expiration.
+Added: Previously, we recorded a full valuation allowance against such NOLs as we expected that they would expire unutilized.
+Added: However, although uncertain, we may utilize a portion of NOLs prior to expiration.
+Added: 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.
5 unchanged sentences
As of December 31, 2023, there were 7,754,648 shares available under our current stock incentive plans.
−Removed: Prior to the adoption and shareholder approval of our new stock incentive plans, we had stock-based incentive awards outstanding under nine stock incentive plans.
−Removed: In connection with the adoption of our new stock incentive plans, we consolidated all outstanding DSUs under the new plans and retired the seven remaining historical plans.
+Added: Prior to the adoption and shareholder approval of our new stock incentive plans in June 2022, we had stock-based incentive awards outstanding under nine stock incentive plans.
+Added: In connection with the adoption of our new stock incentive plans, we consolidated all outstanding deferred stock units, or DSUs, under the new plans and retired the seven remaining historical plans.
As such, no new awards may be issued under these expired plans, although our 2018 plans will continue to govern outstanding awards, other than DSUs, previously issued thereunder until such awards become vested or expire.
20 unchanged sentences
727,820 shares will vest in 2025;
−Removed: and 267,765 will vest in 2025.
+Added: and 304,125 shares will vest in 2026.
As of December 31, 2023, total unrecognized compensation cost relating to unvested share-based compensation arrangements was $ 51.2 million based on the grant date fair value of shares granted.
16 unchanged sentences
Loans receivable, net 23,210,076 23,923,719 23,015,737 24,691,743 25,160,343 24,445,042
−Removed: Debt securities held-to-maturity, net (1)
−Removed: — — — 78,013 79,200 77,229
Financial liabilities
6 unchanged sentences
Convertible notes, net 295,847 300,000 272,076 514,257 520,000 478,232
−Removed: (1) Included in other assets on our consolidated balance sheets.
Estimates of fair value for cash and cash equivalents and convertible notes are measured using observable, quoted market prices, or Level 1 inputs.
−Removed: Estimates of fair value for debt securities held-to-maturity, 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.
+Added: 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.
1 unchanged sentence
VARIABLE INTEREST ENTITIES
−Removed: Consolidated Variable Interest Entities
We have financed a portion of our loans through the CLOs, all of which are VIEs.
−Removed: 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
+Added: 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.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
−Removed: 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.
The following table details the assets and liabilities of our consolidated VIEs ($ in thousands):
11 unchanged sentences
The consolidation of these VIEs results in an increase in our gross assets, liabilities, interest income and interest expense, however it does not affect our stockholders’ equity or net income.
−Removed: Non-Consolidated Variable Interest Entities
−Removed: During the year ended December 31, 2022, the 2018 Single Asset Securitization was liquidated upon full repayment of its collateral and all senior securities outstanding.
−Removed: In the third quarter of 2018, we contributed a $ 517.5 million loan to the $ 1.0 billion 2018 Single Asset Securitization, which is a VIE, and invested in the related $ 99.0 million subordinate position.
−Removed: We were not the primary beneficiary of the VIE because we did not have the power to direct the activities that most significantly affected the VIE’s economic performance and, therefore, did not consolidate the 2018 Single Asset Securitization on our balance sheet.
−Removed: We classified the subordinate position we owned as a held-to-maturity debt security that was included in other assets on our consolidated balance sheets.
−Removed: We are not obligated to provide, have not provided, and do not intend to provide financial support to these consolidated and non-consolidated VIEs.
+Added: We are not obligated to provide, have not provided, and do not intend to provide financial support to these consolidated VIEs.
TRANSACTIONS WITH RELATED PARTIES
2 unchanged sentences
During the years ended December 31, 2023, 2022, and 2021, we paid aggregate management and incentive fees of $ 126.6 million, $ 104.8 million, and $ 79.3 million, respectively, to our Manager.
−Removed: During the year ended December 31, 2020, we issued 840,696 shares of class A common stock to our Manager in satisfaction of our aggregate $ 19.3 million of management and incentive fees accrued in the first quarter of 2020.
−Removed: The per share price with respect to such issuance was calculated based on the volume-weighted average price on the NYSE of our class A common stock over the five trading days following our April 29, 2020 first quarter 2020 earnings conference call.
−Removed: In addition, during the years ended December 31, 2022, 2021, and 2020, we incurred expenses of $ 896,000 , $ 601,000 , and $ 1.0 million, respectively, that were paid by our Manager and will be reimbursed by us.
+Added: In addition, during the years ended December 31, 2023, 2022, and 2021, we incurred expenses of $ 3.4 million, $ 896,000 , and $ 601,000 , respectively, that were paid by our Manager and will be reimbursed by us.
As of December 31, 2023, our Manager held 1,311,056 shares of unvested restricted class A common stock, which had an aggregate grant date fair value of $ 32.2 million, and vest in installments over three years from the date of issuance.
−Removed: During the years ended December 31, 2022, 2021, and 2020, we recorded non-cash expenses related to shares held by our Manager
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
−Removed: of $ 16.6 million, $ 15.3 million, and $ 17.0 million, respectively.
+Added: During the years ended December 31, 2023, 2022, and 2021, we recorded non-cash expenses related to shares held by our Manager of $ 14.6 million, $ 16.6 million, and $ 15.3 million respectively.
Refer to Note 16 for further details on our restricted class A common stock.
−Removed: An affiliate of our Manager is the special servicer of the CLOs.
−Removed: This affiliate did not earn any special servicing fees related to the CLOs during the years ended December 31, 2022, 2021 or 2020.
−Removed: During the years ended December 31, 2021 and 2020, we originated three loans and two loans, respectively, whereby the respective borrowers engaged an affiliate of our Manager to act as title insurance agent in connection with these transactions.
+Added: As of December 31, 2023, our Manager, its affiliates, Blackstone employees, and our directors held an aggregate 12,531,542 shares, or 7.2 %, of our class A common stock, of which 7,582,044 shares, or 4.4 %, were held by subsidiaries of Blackstone, including our Manager.
+Added: Additionally, our directors held 359,464 of deferred stock units as of December 31, 2023.
+Added: CT Investment Management Co., LLC, or CTIMCO, an affiliate of our Manager, is the special servicer of the CLOs.
+Added: CTIMCO did not earn any special servicing fees related to the CLOs during the years ended December 31, 2023, 2022, and 2021.
+Added: During the year ended December 31, 2021, we originated three loans whereby the respective borrowers engaged an affiliate of our Manager to act as title insurance agent in connection with these transactions.
We did not incur any expenses or receive any revenues as a result of these transactions.
−Removed: There were no similar transactions during the year ended December 31, 2022.
−Removed: During the years ended December 31, 2022, 2021, and 2020, we incurred $ 524,000 , $ 385,000 , and $ 487,000 , respectively, of expenses for various administrative and operations services to third-party service providers that are affiliates of our Manager.
−Removed: Affiliates of our Manager own interests in the controlling entity of BTIG, LLC.
−Removed: We engaged BTIG, LLC as a sales agent to sell shares of our class A common stock under our ATM Agreements.
−Removed: During the year ended December 31, 2022, BTIG, LLC received aggregate fees of $ 191,000 in such capacity.
+Added: There were no similar transactions during the years ended December 31, 2023 and 2022.
+Added: We have engaged Revantage Corporate Services, LLC and Revantage Global Services Europe S.à r.l., portfolio companies owned by Blackstone-advised investment vehicles, to provide, as applicable, corporate support services, operational
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
+Added: services, and management services.
+Added: These services are provided on an allocated cost basis.
+Added: Additionally, we have engaged an affiliate of our Manager to provide internal audit services.
+Added: During the years ended December 31, 2023, 2022 and 2021, we incurred $ 658,000 , $ 524,000 , and $ 385,000 , respectively, of expenses for various administrative and operations services to these service providers that are affiliates of our Manager.
+Added: Affiliates of our Manager own an interest in the controlling entity of BTIG, LLC, or BTIG.
+Added: We utilized BTIG as a broker to engage third-parties to facilitate our repurchase of our Senior Secured Notes.
+Added: During the year ended December 31, 2023, we repurchased $ 500,000 of our Senior Secured Notes utilizing BTIG as a broker.
+Added: BTIG received aggregate fees of $ 1,000 in such capacity.
+Added: The fees were on terms equivalent to those of other brokers under similar arrangements.
+Added: BTIG did not act as a broker to engage third-parties to repurchase our Senior Secured Notes during the years ended December 31, 2022 or 2021.
+Added: Additionally, we engaged BTIG as a sales agent to sell shares of our class A common stock under our ATM Agreements.
+Added: During the year ended December 31, 2022, BTIG received aggregate fees of $ 191,000 in such capacity.
The fees paid were on terms equivalent to those of other sales agents engaged to sell shares under our ATM agreements.
−Removed: In the second quarter of 2022, we participated in AUD 1.3 billion, or 24.5 %, of an aggregate AUD 5.4 billion senior loan that was originated by an unaffiliated third party to a borrower that is wholly-owned by Blackstone-advised investment vehicles.
−Removed: Another Blackstone-advised investment vehicle participated in an additional AUD 1.3 billion, or 24.5 %, of the loan.
+Added: BTIG did not sell any shares under our ATM agreements in the years ended December 31, 2023 or 2021.
+Added: In the first quarter of 2019, we originated £ 240.1 million of a total £ 490.0 million senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle.
+Added: The loan terms were negotiated by our third-party co-lender, and we forgo all non-economic rights under the loan, including voting rights, so long as a Blackstone-advised investment vehicle controls the borrower.
+Added: In the second quarter of 2023, the loan was modified to include, among other changes, an extension of the loan's maturity date, an additional borrower equity contribution and partial repayment, and an increase in the loan’s contractual interest rate (a portion of which is paid-in-kind).
+Added: The terms of the modification were negotiated by our third-party co-lender, and we agreed to the modification on such terms.
+Added: In the second quarter of 2022, we participated in A$ 1.3 billion, or 24.5 %, of an aggregate A$ 5.4 billion senior loan that was originated by an unaffiliated third party to a borrower that is wholly-owned by Blackstone-advised investment vehicles.
+Added: Another Blackstone-advised investment vehicle participated in an additional A$ 1.3 billion, or 24.5 %, of the loan.
We will forgo all non-economic rights under the loan, including voting rights, so long as we are an affiliate of the borrower.
2 unchanged sentences
A Blackstone-advised investment vehicle co-originated the additional pari passu £ 250.0 million of the loan.
−Removed: In the second and fourth quarters of 2022, a Blackstone-advised investment vehicle acquired an aggregate $ 33.0 million participation, or 4 %, of the initial aggregate B-4 Term Loan as a part of a broad syndication lead-arranged by JP Morgan.
+Added: In the second and fourth quarters of 2022, a Blackstone-advised investment vehicle acquired an aggregate $ 33.0 million participation, or 4 %, of the aggregate B-4 Term Loan as a part of a broad syndication lead-arranged by JP Morgan.
Blackstone Securities Partners L.P., an affiliate of our Manager, was engaged as a book-runner for the transaction and received aggregate fees of $ 825,000 in such capacity.
Both of these transactions were on terms equivalent to those of unaffiliated parties.
−Removed: In the fourth quarter of 2021, we co-originated A$ 450.0 million of an aggregate A$ 900.0 million senior loan to an unaffiliated third-party.
−Removed: A Blackstone-advised investment vehicle co-originated the additional pari passu A$ 450.0 million of the loan.
In the fourth quarter of 2021, we issued $ 400.0 million aggregate principal amount of 3.75 % Senior Secured Notes.
2 unchanged sentences
This transaction was on terms equivalent to those of unaffiliated parties.
−Removed: In the third quarter of 2021, we participated in $ 246.6 million, or 49.0 %, of a total $ 503.3 million senior loan that was originated by an unaffiliated third party, which was part of a total financing that included a mezzanine loan originated by a Blackstone-advised investment vehicle.
−Removed: 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.
−Removed: The senior loan terms, with respect to the mezzanine lender, were negotiated by a third party without our involvement and our 49.0 % interest in the senior loan was made on such market terms.
−Removed: The borrower is an unaffiliated third party.
−Removed: In the third quarter of 2021, we acquired an aggregate £ 186.0 million, or 49.0 %, of a total £ 379.6 million senior loan to a borrower that is majority owned by a Blackstone-advised investment vehicle.
−Removed: We will forgo all non-economic rights under the loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower.
−Removed: The senior loan terms were negotiated by the original lender prior to our acquisition of the loan without our involvement, and we acquired the loan on such market terms.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
−Removed: In the third quarter of 2021, we participated in $ 243.6 million, or 25.0 %, of an aggregate $ 974.5 million senior loan that was originated by an unaffiliated third party as part of a broadly marketed process.
−Removed: A Blackstone-advised investment vehicle participated in an additional $ 243.6 million, or 25.0 %, of the loan.
−Removed: The loan proceeds were used by the borrower to repay an existing loan previously owned by us.
−Removed: In the third and fourth quarter of 2019, we acquired € 250.0 million of a total € 1.6 billion senior loan to a borrower that is partially owned by a Blackstone-advised investment vehicle.
−Removed: We will forgo all non-economic rights under the loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower.
−Removed: The senior loan terms were negotiated by third parties without our involvement and our 16 % interest in the senior loan was made on such market terms.
−Removed: In the second quarter of 2021, we acquired an additional € 100.0 million interest in the senior loan from an unaffiliated lender, bringing our total interest to 22 % of the aggregate senior loan.
−Removed: In the second quarter of 2021, we acquired an aggregate € 50.0 million of a total € 491.0 million senior loan to a borrower that is majority owned by a Blackstone-advised investment vehicle.
−Removed: We will forgo all non-economic rights under the loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower.
−Removed: The senior loan terms were negotiated by the original lenders prior to our acquisition of the loan without our involvement.
In the second quarter of 2021 and 2020, certain Blackstone-advised investment vehicles acquired an aggregate $ 20.0 million participation, or 15 %, of the initial aggregate B-3 Term Loan as a part of a broad syndication lead-arranged by JP Morgan.
1 unchanged sentence
Both of these transactions were on terms equivalent to those of unaffiliated parties.
−Removed: In the first quarter of 2021, we acquired an SEK 5.0 billion interest in a total SEK 10.2 billion senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle.
−Removed: We will forgo all non-economic rights under the loan, including voting rights, so long as we are an affiliate of the borrower.
−Removed: The senior loan terms were negotiated by a third party without our involvement and our 49 % interest in the senior loan was made on such market terms.
In the first quarter of 2021, a Blackstone-advised investment vehicle acquired an aggregate $ 5.5 million participation, or 3 %, of the $ 200.0 million increase to our B-1 Term Loan as a part of a broad syndication lead-arranged by JP Morgan.
1 unchanged sentence
Both of these transactions were on terms equivalent to those of unaffiliated parties.
+Added: Blackstone Mortgage Trust, Inc.
+Added: Notes to Consolidated Financial Statements (continued)
COMMITMENTS AND CONTINGENCIES
1 unchanged sentence
As of December 31, 2023, we had aggregate unfunded commitments of $ 2.4 billion across 99 loans receivable, and $ 1.3 billion of committed or identified financings for those commitments, resulting in net unfunded commitments of $ 1.2 billion.
−Removed: The unfunded loan commitments comprise funding for capital expenditures and construction, leasing costs, and interest and carry costs, and their fundability varies depending on the progress of capital projects, leasing, and cash flows at the properties securing our loans.
+Added: The unfunded loan commitments comprise funding for capital expenditures and construction, leasing costs, and interest and carry costs.
+Added: 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.
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Notes to Consolidated Financial Statements (continued)
Principal Debt Repayments
18 unchanged sentences
Board of Directors’ Compensation
−Removed: As of December 31, 2022, of the nine members of our board of directors, our six independent 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.
−Removed: The other three board members, including our chairman and our chief executive officer, are not compensated by us for their service as directors.
+Added: As of December 31, 2023, of the ten members of our board of directors, our six independent 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.
+Added: As of December 31, 2023, the other four board members, including our chairman and our chief executive officer, are not compensated by us for their service as directors.
In addition, (i) 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 (ii) the members of our audit and investment risk management committees receive additional annual cash compensation of $ 10,000 and $ 7,500 , respectively.
7 unchanged sentences
Maturity Date (3)
+Added: Principal Amount of Loans Subject to Delinquent Principal or Interest
Senior Mortgage Loans (1)
Senior loans in excess of 3% of the carrying amount of total loans
−Removed: Borrower A Mixed-Use / Ireland + 3.06 % 2024 I/O $ — $ 1,033,286 $ 1,028,715
−Removed: Borrower B Office / New York + 4.49 % 2025 I/O — 905,355 898,541
−Removed: Borrower C Hospitality / Australia + 4.75 % 2029 I/O 901,360 893,114
+Added: Borrower A Office / New York
+Added: + 4.29 % 2025 I/O $ — $ 1,156,396 $ 1,154,771 $ —
+Added: Borrower B Mixed-Use / Ireland
+Added: + 3.03 % 2024 I/O — 999,907 995,570 —
+Added: Borrower C Hospitality / Australia
+Added: + 4.75 % 2029 I/O — 901,228 894,599 —
Senior loans less than 3% of the carrying amount of total loans
Senior Mortgage Loans Office / Diversified - 1.30 % – 10.50 %
−Removed: I/O & P/I — 6,924,092 6,893,477
+Added: I/O — 6,507,693 6,455,942 —
Senior Mortgage Loans Multifamily / Diversified + 1.71 % – 5.45 %
2 unchanged sentences
I/O & P/I — 3,230,471 3,205,185 —
+Added: Senior Mortgage Loans Mixed-Use / Diversified + 2.76 % – 4.60 %
+Added: I/O — 1,864,832 1,855,982 140,000
Senior Mortgage Loans Industrial / Diversified + 2.71 % – 4.60 %
I/O & P/I — 1,647,704 1,637,876 —
−Removed: Senior Mortgage Loans Mixed-Use / Diversified + 2.65 % – 4.60 %
+Added: Senior Mortgage Loans Other / Diversified + 3.25 % – 5.04 %
I/O — 641,703 640,913 —
1 unchanged sentence
I/O & P/I — 458,495 456,993 —
−Removed: Senior Mortgage Loans Other / Diversified + 3.25 % – 4.70 %
+Added: Senior Mortgage Loans Life Sciences/Studio / Diversified + 2.87 % – 4.50 %
I/O — 343,430 341,918 —
1 unchanged sentence
Total senior mortgage loans $ — $ 23,634,365 $ 23,499,645 $ 140,000
−Removed: Blackstone Mortgage Trust, Inc.
−Removed: Schedule IV – Mortgage Loans on Real Estate
−Removed: As of December 31, 2022
−Removed: (in thousands)
−Removed: Type of Loan/Borrower Description / Location Interest Payment Rates (2)
−Removed: Maturity Date (3)
Subordinate Loans (7)
7 unchanged sentences
(1) Includes senior mortgages and similar credit quality loans, including related contiguous subordinate loans, and pari passu participations in senior mortgage loans.
−Removed: (2) The interest payment rates are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, SOFR, SONIA, EURIBOR, and other indices, as applicable to each loan.
+Added: (2) The interest payment rates are expressed as a spread over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, and other indices, as applicable to each loan.
(3) Maximum maturity date assumes all extension options are exercised.
1 unchanged sentence
(5) Represents only third party liens.
−Removed: (6) As of December 31, 2022, there were no loans with delinquent principal or interest.
(6) The tax basis of the loans included above is $ 23.5 billion as of December 31, 2023.
−Removed: (8) Includes subordinate interests in mortgages and mezzanine loans.
−Removed: (9) As of December 31, 2022, we had a total CECL reserve of $ 326.1 million on our loans receivable, of which $ 189.8 million is specifically related to five of our loans receivable with an aggregate outstanding principal balance of $ 930.0 million as of December 31, 2022.
−Removed: This CECL reserve reflects certain loans assessed for impairment in our portfolio, as well as macroeconomic conditions, including inflationary pressures and market volatility.
−Removed: Refer to Note 3 for additional information on our CECL reserve.
+Added: (7) We have previously originated a whole loan and sold a senior mortgage interest to a third-party, resulting in these subordinate interests in mortgages and mezzanine loans.
+Added: (8) As of December 31, 2023, we had a total loans receivable CECL reserve of $ 576.9 million, of which $ 417.7 million is specifically related to 13 of our loans receivable with an aggregate amortized cost basis of $ 1.9 billion as of December 31, 2023.
+Added: These CECL reserves reflect certain impaired loans in our portfolio, as well as an additional increase in our CECL reserves due to macroeconomic conditions.
+Added: Refer to Note 3 for additional information on our CECL reserves.
Blackstone Mortgage Trust, Inc.
8 unchanged sentences
Loan fundings 1,344,130 6,810,218 12,550,463
+Added: Payment-in-kind interest, net of interest received 2,865 — —
Amortization of fees and other items 78,428 80,632 68,267
Deductions during period:
−Removed: Loan repayments and sales proceeds ( 3,168,155 ) ( 6,733,105 ) ( 1,862,955 )
+Added: Loan repayments, sales, and cost-recovery proceeds ( 2,924,401 ) ( 3,168,155 ) ( 6,733,105 )
Principal charge-offs — — ( 14,427 )
−Removed: Unrealized (loss) gain on foreign currency translation ( 632,902 ) ( 297,894 ) 340,260
+Added: Unrealized gain (loss) on foreign currency translation 286,102 ( 632,902 ) ( 297,894 )
Deferred fees and other items ( 17,992 ) ( 74,930 ) ( 143,002 )
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.