BLACKSTONE MORTGAGE TRUST, INC. 10-K

ITEM 9A. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures The company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in the company’s reports under the Exchange Act is recorded, processed, and summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this annual report on Form 10-K was made under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer. Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (a) are effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Changes in Internal Control over Financial Reporting There have been no changes in our “internal control over financial reporting” (as defined in Rule 13a–15(f) of the Exchange Act) that occurred during our most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Management’s Report on Internal Control Over Financial Reporting Management of Blackstone Mortgage Trust, Inc. and subsidiaries, or Blackstone Mortgage Trust, is responsible for establishing and maintaining adequate internal control over financial reporting. 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. 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; 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; 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. 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. 96 Deloitte & Touche LLP, an independent registered public accounting firm, has audited Blackstone Mortgage Trust’s financial statements included in this report on Form 10-K and issued its report on the effectiveness of Blackstone Mortgage Trust’s internal control over financial reporting as of December 31, 2023, which is included herein. ITEM 9B. OTHER INFORMATION Section 13(r) Disclosure 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. ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not applicable. 97 PART III. ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE The information required by this item is incorporated by reference to the company’s definitive proxy statement to be filed not later than April 29, 2024 with the SEC pursuant to Regulation 14A under the Exchange Act. ITEM 11. EXECUTIVE COMPENSATION The information required by this item is incorporated by reference to the company’s definitive proxy statement to be filed not later than April 29, 2024 with the SEC pursuant to Regulation 14A under the Exchange Act. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS Equity Compensation Plan Information The following table summarizes information, as of December 31, 2023, relating to our equity compensation plans pursuant to which shares of our class A common stock or other equity securities may be granted from time to time: Plan category (a) Number of securities to be issued upon exercise of outstanding options, warrants, and rights (b) Weighted-average exercise price of outstanding options, warrants, and rights (c) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) Equity compensation plans approved by security holders (1) 359,464 (2) $ — 7,754,648 Equity compensation plans not approved by security holders (3) — — — Total 359,464 $ — 7,754,648 (1) The number of securities remaining for future issuances consists of an aggregate 7,754,648 shares issuable under our stock incentive plan and our manager incentive plan. Awards under the plans may include restricted stock, unrestricted stock, stock options, stock units, stock appreciation rights, performance shares, performance units, deferred share units, or other equity-based awards, as the board of directors may determine. (2) Reflects deferred stock units granted to our non-employee directors. The deferred stock units are settled upon the non-employee director’s separation from service with the company by delivering to the non-employee director one share of class A common stock, or the cash equivalent, for each deferred stock unit settled. As these awards have no exercise price, the weighted average exercise price in column (b) does not take these awards into account. (3) All of our equity compensation plans have been approved by security holders. The remaining information required by this item is incorporated by reference to the company’s definitive proxy statement to be filed not later than April 29, 2024 with the SEC pursuant to Regulation 14A under the Exchange Act. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE The information required by this item is incorporated by reference to the company’s definitive proxy statement to be filed not later than April 29, 2024 with the SEC pursuant to Regulation 14A under the Exchange Act. ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES The information required by this item is incorporated by reference to the company’s definitive proxy statement to be filed not later than April 29, 2024 with the SEC pursuant to Regulation 14A under the Exchange Act. 98 PART IV. ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (a) (1) Financial Statements See the accompanying Index to Financial Statement Schedule on page F-1. (a) (2) Consolidated Financial Statement Schedules See the accompanying Index to Financial Statement Schedule on page F-1. (a) (3) Exhibits 99 EXHIBIT INDEX Exhibit No. Exhibit Description 2.1 Purchase and Sale Agreement, dated September 27, 2012, by and between Capital Trust, Inc. and Huskies Acquisition LLC (filed as Exhibit 2.1 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on October 3, 2012 and incorporated herein by reference) 2.2 Amendment No. 1 to Purchase and Sale Agreement, dated July 21, 2021, by and between Blackstone Mortgage Trust, Inc. (formerly known as Capital Trust, Inc.) and Huskies Acquisition LLC (filed as Exhibit 2.2 to the Registrant’s Annual Report on Form 10-K (File No. 1-14788) filed on February 9, 2022 and incorporated herein by reference) 3.1.a Articles of Amendment and Restatement (filed as Exhibit 3.1.a to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on April 2, 2003 and incorporated herein by reference) 3.1.b Certificate of Notice (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on February 27, 2007 and incorporated herein by reference) 3.1.c Articles Supplementary for Series A Junior Participating Preferred Stock (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on March 3, 2011 and incorporated herein by reference) 3.1.d Articles of Amendment (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on December 21, 2012 and incorporated herein by reference) 3.1.e Articles of Amendment (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on May 7, 2013 and incorporated herein by reference) 3.1.f Articles Supplementary (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on May 29, 2013 and incorporated herein by reference) 3.1.g Articles of Amendment, dated April 13, 2015 (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on April 13, 2015 and incorporated herein by reference) 3.1.h 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) 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. 1-14788) filed on April 21, 2023 and incorporated herein by reference 4.1 Description of Securities of Blackstone Mortgage Trust, Inc. (filed as Exhibit 4.1 to the Registrant’s Annual Report on Form 10-K (File No. 1-14788) filed on February 8, 2023 and incorporated herein by reference) 4.2 Indenture, dated as of November 25, 2013, between Blackstone Mortgage Trust, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on November 25, 2013 and incorporated herein by reference ) 4.3 Fourth Supplemental Indenture, dated March 29, 2022, between Blackstone Mortgage Trust, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee. (filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K (File No. 1-14788) filed on March 29, 2022 and incorporated herein by reference) 4.4 Form of 5.50% Convertible Senior Notes due 2027 (included as Exhibit A in Exhibit 4.3) 4.5 Indenture, dated October 5, 2021, among Blackstone Mortgage Trust, Inc., the Guarantors and The Bank of New York Mellon Trust Company, N.A., as trustee and collateral agent (filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on October 5, 2021 and incorporated herein by reference) 100 4.6 Form of 3.750% Senior Secured Notes due 2027 (included as Exhibit B to Exhibit 4.5) 4.7 Pledge and Security Agreement, dated as of October 5, 2021, by and among Blackstone Mortgage Trust, Inc., the other grantors from time to time party thereto and The Bank of New York Mellon Trust Company, N.A., as collateral agent (filed as Exhibit 4.3 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on October 5, 2021 and incorporated herein by reference) 4.8 First Lien Intercreditor Agreement, dated as of October 5, 2021, by and among Blackstone Mortgage Trust, Inc., JPMorgan Chase Bank, N.A., as agent under the Term Loan Credit Agreement, and The Bank of New York Mellon Trust Company, N.A., as trustee and notes collateral agent (filed as Exhibit 4.4 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on October 5, 2021 and incorporated herein by reference) 10.1 Second Amended and Restated Management Agreement, dated as of October 23, 2014, by and between Blackstone Mortgage Trust, Inc. and BXMT Advisors L.L.C. (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on October 28, 2014 and incorporated herein by reference) 10.2 Amended and Restated Trademark License Agreement, dated as of December 21, 2017, by and between Blackstone Mortgage Trust, Inc. (f/k/a Capital Trust, Inc.) and Blackstone TM L.L.C. (filed as Exhibit 10.2 to the Registrant’s Annual Report on Form 10-K (File No. 1-14788) filed on February 13, 2018 and incorporated herein by reference) 10.3 Assignment Agreement, dated as of December 19, 2012, by and among Huskies Acquisition LLC, Blackstone Holdings III L.P. and Capital Trust, Inc. (filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on December 21, 2012 and incorporated herein by reference) 10.4 Amended and Restated Registration Rights Agreement, dated May 6, 2013, by and among Blackstone Mortgage Trust, Inc., Blackstone Holdings III L.P. and BREDS/CT Advisors L.L.C. (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on May 6, 2013 and incorporated herein by reference) 10.5 + Blackstone Mortgage Trust, Inc. 2018 Stock Incentive Plan (filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on June 21, 2018 and incorporated herein by reference) 10.6 + Form of Restricted Stock Award of Blackstone Mortgage Trust, Inc. 2018 Stock Incentive Plan (filed as Exhibit 10.19 to the Registrant’s Annual Report on Form 10-K (File No. 1-14788) filed on February 11, 2020 and incorporated herein by reference) 10.7 + Blackstone Mortgage Trust, Inc. 2018 Manager Incentive Plan (filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on June 21, 2018 and incorporated herein by reference) 10.8 + Form of Restricted Stock Award of Blackstone Mortgage Trust, Inc. 2018 Manager Incentive Plan (filed as Exhibit 10.21 to the Registrant’s Annual Report on Form 10-K (File No. 1-14788) filed on February 11, 2020 and incorporated herein by reference) 10.9 + 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. 1-14788) filed on July 27, 2022 and incorporated herein by reference). 10.10 + Blackstone Mortgage Trust, Inc. Stock Incentive Plan (filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on June 17, 2022 and incorporated herein by reference) 10.11 *+ Summary of Terms of Awards of Deferred Stock Units under Blackstone Mortgage Trust, Inc. Stock Incentive Plan 10.12 + Blackstone Mortgage Trust, Inc. Manager Incentive Plan (filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on June 17, 2022 and incorporated herein by reference) 101 10.13 + 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. 1-14788) filed on July 27, 2022 and incorporated herein by reference 10.14 + Form of Restricted Stock Award Agreement of Blackstone Mortgage Trust, Inc. Stock Incentive Plan (filed as Exhibit 10.10 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on July 27, 2022 and incorporated herein by reference 10.15 + Form of Restricted Stock Award Agreement of Blackstone Mortgage Trust, Inc. Manager Incentive Plan (filed as Exhibit 10.11 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on July 27, 2022 and incorporate herein by reference 10.16 + Form of Indemnification Agreement (filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 1-14788) filed on December 21, 2012 and incorporated herein by reference) 10.17 Fifth Amended and Restated Master Repurchase Agreement, dated as of April 16, 2021, 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 and Citibank, N.A. (filed as Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q (File NO. 1-14788) filed on July 28, 2021 and incorporated herein by reference) 10.18 First Amendment to Fifth Amended and Restated Master Repurchase Agreement, dated as of August 26, 2021, 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. (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on October 27, 2021 and incorporated herein by reference) 10.19 Second Amendment to Fifth Amended and Restated Master Repurchase Agreement, dated as of December 24, 2021, 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. (filed as Exhibit 10.25 to the Registrant’s Annual Report on Form 10-K (File No. 1-14788) filed on February 9, 2022 and incorporated herein by reference) 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) 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. (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10 Q (File No. 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. in favor of Citibank, N.A. (filed as Exhibit 10.11 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on July 30, 2013 and incorporated herein by reference) 10.23 First Amendment to Limited Guaranty, dated as of November 20, 2013, made by Blackstone Mortgage Trust, Inc. in favor of Citibank, N.A. (filed as Exhibit 10.36 to the Registrant’s Annual Report on Form 10-K (File No. 1-14788) filed on February 17, 2015 and incorporated herein by reference) 10.24 Second Amendment to Limited Guaranty, dated as of February 24, 2014, made by Blackstone Mortgage Trust, Inc. in favor of Citibank, N.A. (filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on April 29, 2014 and incorporated herein by reference) 10.25 Third Amendment to Limited Guaranty, dated as of March 31, 2017, made by Blackstone Mortgage Trust, Inc. in favor of Citibank, N.A. (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on April 25, 2017 and incorporated herein by reference) 102 10.26 Fourth Amendment to Limited Guaranty, dated as of October 12, 2018, by and between Blackstone Mortgage Trust, Inc. and Citibank, N.A. (filed as Exhibit 10.41 to the Registrant’s Annual Report on Form 10-K (File No. 1-14788) filed on February 12, 2019 and incorporated herein by reference) 10.27 Fifth Amendment to Limited Guaranty, dated as of February 15, 2019, by and between Blackstone Mortgage Trust, Inc. and Citibank, N.A. (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on April 23, 2019 and incorporated herein by reference) 10.28 Sixth Amendment to Limited Guaranty, dated as of April 16, 2021, by and between Blackstone Mortgage Trust, Inc. and Citibank, N.A. (filed as Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on July 28, 2021 and incorporated herein by reference) 10.29 Guarantee Agreement, dated as of March 13, 2014, made by Blackstone Mortgage Trust, Inc. in favor of Wells Fargo Bank, N.A. (filed as Exhibit 10.10 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on April 29, 2014 and incorporated herein by reference) 10.30 Amended and Restated Master Repurchase and Securities Contract, dated as of April 4, 2014, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.7 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on April 28, 2015 and incorporated herein by reference) 10.31 Amendment No. 1 to Amended and Restated Master Repurchase and Securities Contract, dated as of October 23, 2014, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.8 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on April 28, 2015 and incorporated herein by reference) 10.32 Amendment No. 2 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 13, 2015, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.9 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on April 28, 2015 and incorporated herein by reference) 10.33 Amendment No. 3 to Amended and Restated Master Repurchase and Securities Contract, dated as of April 14, 2015, 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. 1-14788) filed on July 28, 2015 and incorporated herein by reference) 10.34 Amendment No. 4 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 11, 2016, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on April 26, 2016 and incorporated herein by reference) 10.35 Amendment No. 5 to Amended and Restated Master Repurchase and Securities Contract, dated June 30, 2016, 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. 1-14788) filed on July 26, 2016 and incorporated herein by reference) 10.36 Amendment No. 6 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 13, 2017, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on April 25, 2017 and incorporated herein by reference 10.37 Amendment No. 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. 1-14788) filed on April 25, 2017 and incorporated herein by reference 10.38 Amendment No. 8 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 13, 2018, 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. 1-14788) filed on April 24, 2018 and incorporated herein by reference) 103 10.39 Amendment No. 9 to Amended and Restated Master Repurchase and Securities Contract, dated as of December 21, 2018, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.52 to the Registrant’s Annual Report on Form 10-K (File No. 1-14788) filed on February 12, 2019 and incorporated herein by reference) 10.40 Amendment No. 10 to Amended and Restated Master Repurchase and Securities Contract, dated as of November 13, 2019, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on April 28, 2020 and incorporated herein by reference) 10.41 Amendment No. 11 to Amended and Restated Master Repurchase and Securities Contract, dated as of December 23, 2019, 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. 1-14788) filed on April 28, 2020 and incorporated herein by reference) 10.42 Amendment No. 12 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 13, 2020, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on April 28, 2020 and incorporated herein by reference) 10.43 Amendment No. 13 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 12, 2021, 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. 1-14788) filed on April 28, 2021 and incorporated herein by reference) 10.44 Amendment No. 14 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 11, 2022, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on April 27, 2022 and incorporated herein by reference) 10.45 Amendment No. 15 to Amended and Restated Master Repurchase and Securities Contract, dated as of June 29, 2022, 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. 1-14788) filed on July 27, 2022 and incorporated herein by reference) 10.46 Amendment No. 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. 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. in favor of Wells Fargo Bank, National Association (filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on July 28, 2015 and incorporated herein by reference) 10.48 Acknowledgement of Guarantor, dated as of June 30, 2016, made by Blackstone Mortgage Trust, Inc. in favor of Wells Fargo Bank, National Association (filed as Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on July 26, 2016 and incorporated herein by reference) 10.49 Term Loan Credit Agreement, dated as of April 23, 2019, among Blackstone Mortgage Trust, Inc., the lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and JP Morgan Chase Bank, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Bank Plc, Deutsche Bank Securities Inc. and Blackstone Advisory Partners LP, as Joint Lead Arrangers and Joint Bookrunners (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on July 29, 2020 and incorporated herein by reference) 10.50 First Amendment to Term Loan Credit Agreement, dated as of November 19, 2019, 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 and collateral agent (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on July 29, 2020 and incorporated herein by reference) 104 10.51 Second Amendment to Term Loan Credit Agreement, dated as of May 20, 2020, 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 and collateral agent (filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on July 29, 2020 and incorporated herein by reference) 10.52 Third Amendment to Term Loan Credit Agreement, dated as of June 11, 2020, 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 and collateral agent (filed as Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on July 29, 2020 and incorporated herein by reference) 10.53 Fourth Amendment to Term Loan Credit Agreement, dated as of February 19, 2021, 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 and collateral agent (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on April 28, 2021 and incorporated herein by reference) 10.54 Fifth Amendment to Term Loan Credit Agreement, dated as of June 21, 2021, 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 and collateral agent (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on July 28, 2021 and incorporated herein by reference) 10.55 Sixth Amendment to Term Loan Credit Agreement, dated as of May 9, 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 and collateral agent (filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (file No. 1-14788) filed on July 27, 2022 and incorporated herein by reference) 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. 1-14788) filed on February 8, 2023 and incorporated herein by reference) 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. 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. 1-14788) filed on July 29, 2020 and incorporated herein by reference) 10.59 Pledge and Security Agreement, entered into as of April 23, 2019, by and among Blackstone Mortgage Trust, Inc., the grantors from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (filed as Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on July 29, 2020 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. 1-14788) filed on July 27, 2022 and incorporated herein by reference 105 10.61 First Amendment to Master Repurchase Agreement, dated as of August 22, 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 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No. 1-14788) filed on October 26, 2022 and incorporated herein by reference) 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. 1-14788) filed on February 8, 2023 and incorporated herein by reference) 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. 1-14788) filed on July 26, 2023 and incorporated herein by reference) 10.64 * 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. 1-14788) filed on July 27, 2022 and incorporated herein by reference) 21.1 * Subsidiaries of Blackstone Mortgage Trust, Inc. 23.1 * Consent of Deloitte & Touche LLP 31.1 * Certification of Chief Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 31.2 * Certification of Chief Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1 * Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith) 32.2 * Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith) 97.1 *+ Incentive Compensation Clawback Policy 99.1 * Section 13(r) Disclosure 101.INS ++ 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 106 101.SCH ++ Inline XBRL Taxonomy Extension Schema Document 101.CAL ++ Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.LAB ++ Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE ++ Inline XBRL Taxonomy Extension Presentation Linkbase Document 101.DEF ++ Inline XBRL Taxonomy Extension Definition Linkbase Document 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) * Filed herewith + This document has been identified as a management contract or compensatory plan or arrangement. ++ This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that Section. 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. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time. 107 ITEM 16. FORM 10-K SUMMARY None. 108 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BLACKSTONE MORTGAGE TRUST, INC. February 14, 2024 By: /s/ Katharine A. Keenan Date Katharine A. Keenan Chief Executive Officer (Principal Executive Officer) 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. February 14, 2024 /s/ Timothy S. Johnson Date Timothy S. Johnson, Chairperson of the Board of Directors February 14, 2024 /s/ Katharine A. Keenan Date Katharine A. Keenan Chief Executive Officer and Director (Principal Executive Officer) February 14, 2024 /s/ Anthony F. Marone, Jr. Date Anthony F. Marone, Jr. Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) February 14, 2024 /s/ Leonard W. Cotton Date Leonard W. Cotton, Director February 14, 2024 /s/ Thomas E. Dobrowksi Date Thomas E. Dobrowski, Director February 14, 2024 /s/ Nnenna J. Lynch Date Nnenna J. Lynch, Director February 14, 2024 /s/ Michael B. Nash Date Michael B. Nash, Director February 14, 2024 /s/ Henry N. Nassau Date Henry N. Nassau, Director February 14, 2024 /s/ Gilda Perez-Alvarado Date Gilda Perez-Alvarado, Director February 14, 2024 /s/ Jonathan L. Pollack Date Jonathan L. Pollack, Director February 14, 2024 /s/ Lynne B. Sagalyn Date Lynne B. Sagalyn, Director 109 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34 ) F- 2 Consolidated Balance Sheets as of December 31, 2023 and 2022 F- 5 Consolidated Statements of Operations for the Years Ended December 31, 2023 , 2022 , and 2021 F- 6 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2023 , 2022 , and 2021 F- 7 Consolidated Statements of Changes in Equity for the Years Ended December 31, 2023, 2022, and 2021 F- 8 Consolidated Statements of Cash Flows for the Years Ended December 31, 2023 , 2022 , and 2021 F- 9 Notes to Consolidated Financial Statements F- 11 Schedule IV – Mortgage Loans on Real Estate S- 1 Schedules other than those listed are omitted as they are not applicable or the required or equivalent information has been included in the consolidated financial statements or notes thereto. F-1 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of Blackstone Mortgage Trust, Inc. New York, New York Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Blackstone Mortgage Trust, Inc. and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes and the schedule listed in the Index at Item 15(a) (collectively referred to as the "financial statements"). We also have audited the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO. Basis for Opinions The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on these financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. F-2 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, 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. Critical Audit Matters The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Current Expected Credit Loss (“CECL”) Reserve – Adjustments to Reflect Management’s Estimation of Economic Conditions – Refer to Note 2 in the Financial Statements Critical Audit Matter Description The Company estimates its CECL reserve primarily using the Weighted Average Remaining Maturity (“WARM”) method, which has been identified as an acceptable loss-rate method for estimating CECL reserves. The Company utilizes its own historical loan loss data supplemented with the data obtained from an external service provider. The data obtained is subject to several screening and/or judgmental adjustments that are applied in order to better align this loan-level data to the attributes of the Company’s loan portfolio. The Company’s CECL reserve determined under the WARM method is further adjusted to reflect management’s estimation of the current and future economic conditions that may impact the performance of the commercial real estate assets securing the Company’s loans. The items considered in management’s estimation include unemployment rates, interest rates and other macroeconomic factors impacting the likelihood and magnitude of potential credit losses for the Company’s loans during their anticipated term. We identified the adjustments to the CECL reserve to reflect management’s estimation of the current and future economic conditions that may impact the performance of the commercial real estate assets securing the Company’s loans as a critical audit matter because of the subjectivity, complexity and estimation uncertainty in such adjustments made to account for the macroeconomic factors. This required a high degree of auditor judgment and an increased extent of effort when performing audit procedures to evaluate whether the adjustments determined by management reasonably and appropriately quantify macroeconomic risks associated with the Company’s loan portfolio, including the need to involve our credit specialists. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures to assess the adjustments applied by management to the CECL reserve to account for current and future economic conditions included, among others: • We tested the design and operating effectiveness of controls implemented by the Company in relation to the establishment of the CECL reserve. Specifically, in relation to the adjustments made to their CECL reserve to account for current and future economic conditions, we focused our procedures on internal controls related to evaluation of macroeconomic factors and other judgments involved in the determination of such adjustments. • We evaluated the appropriateness and consistency of the methods and assumptions used by management to develop the adjustments and assessed macro-economic and industry trends. • We tested the accuracy and completeness of quantitative data used by management to develop the adjustments to account for current and future economic conditions. • We utilized credit specialists to assist in the evaluation of management’s CECL methodology and assumptions, including the estimation of economic conditions. F-3 CECL Reserve – Estimation of Fair Value of Underlying Collateral of Impaired Loans – Refer to Note 2 and Note 3 in the Financial Statements Critical Audit Matter Description The Company assesses the CECL reserve for impaired loans on an individual basis by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgment, 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 the Company. We identified the estimation of the fair value of the underlying collateral of impaired loans as a critical audit matter because of the complexity and judgement involved in the determination of the valuation methodology and assumptions, as well as subjectivity of the unobservable inputs utilized in the valuation. Auditing the fair value of the underlying collateral for impaired loans required a high degree of auditor judgment and increased effort, including the need to involve our fair value specialists. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to the estimate of fair of the underlying collateral of impaired loans as part of estimation of the CECL reserve included, among others: • We tested the design and operating effectiveness of controls over the estimation of the fair value of the collateral underlying the impaired loans, including specifically management’s review of the valuation model and underlying assumptions utilized in estimating the fair value of the underlying collateral. • We tested management’s assumptions through independent analysis and comparison to external sources. • We utilized our internal fair value specialists to assist in the evaluation of management’s valuation methodologies and assumptions. With the assistance of our specialists, we evaluated certain of these assumptions (e.g., guideline transactions, discount rates, capitalization rates). Our internal specialist procedures included testing the underlying source information of the assumptions, as well as developing a range of independent estimates and comparing those to the assumptions used by management. /s/ Deloitte & Touche LLP New York, New York February 14, 2024 We have served as the Company’s auditor since 2013 F-4 Blackstone Mortgage Trust, Inc. Consolidated Balance Sheets (in thousands, except share data) December 31, 2023 December 31, 2022 Assets Cash and cash equivalents $ 350,014 $ 291,340 Loans receivable 23,787,012 25,017,880 Current expected credit loss reserve ( 576,936 ) ( 326,137 ) Loans receivable, net 23,210,076 24,691,743 Other assets 476,088 370,902 Total Assets $ 24,036,178 $ 25,353,985 Liabilities and Equity Secured debt, net $ 12,683,095 $ 13,528,164 Securitized debt obligations, net 2,505,417 2,664,010 Asset-specific debt, net 1,000,210 942,503 Loan participations sold, net 337,179 224,232 Term loans, net 2,101,632 2,114,549 Senior secured notes, net 362,763 395,166 Convertible notes, net 295,847 514,257 Other liabilities 362,531 426,904 Total Liabilities 19,648,674 20,809,785 Commitments and contingencies — — Equity 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 1,732 1,717 Additional paid-in capital 5,507,459 5,475,804 Accumulated other comprehensive income 9,454 10,022 Accumulated deficit ( 1,150,934 ) ( 968,749 ) Total Blackstone Mortgage Trust, Inc. stockholders’ equity 4,367,711 4,518,794 Non-controlling interests 19,793 25,406 Total Equity 4,387,504 4,544,200 Total Liabilities and Equity $ 24,036,178 $ 25,353,985 Note: 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. 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. See accompanying notes to consolidated financial statements. F-5 Blackstone Mortgage Trust, Inc. Consolidated Statements of Operations (in thousands, except share and per share data) Year Ended December 31, 2023 2022 2021 Income from loans and other investments Interest and related income $ 2,037,621 $ 1,338,954 $ 854,690 Less: Interest and related expenses 1,366,956 710,904 340,223 Income from loans and other investments, net 670,665 628,050 514,467 Other expenses Management and incentive fees 119,089 110,292 88,467 General and administrative expenses 51,143 52,193 43,168 Total other expenses 170,232 162,485 131,635 (Increase) decrease in current expected credit loss reserve ( 249,790 ) ( 211,505 ) 39,864 Gain on extinguishment of debt 4,616 — — Income before income taxes 255,259 254,060 422,696 Income tax provision 5,362 3,003 423 Net income 249,897 251,057 422,273 Net income attributable to non-controlling interests ( 3,342 ) ( 2,415 ) ( 3,080 ) Net income attributable to Blackstone Mortgage Trust, Inc. $ 246,555 $ 248,642 $ 419,193 Net income per share of common stock basic and diluted $ 1.43 $ 1.46 $ 2.77 Weighted-average shares of common stock outstanding, basic and diluted 172,672,038 170,631,410 151,521,941 See accompanying notes to consolidated financial statements. F-6 Blackstone Mortgage Trust, Inc. Consolidated Statements of Comprehensive Income (in thousands) Year Ended December 31, 2023 2022 2021 Net income $ 249,897 $ 251,057 $ 422,273 Other comprehensive (loss) income Unrealized gain (loss) on foreign currency translation 75,339 ( 171,652 ) ( 84,470 ) Realized and unrealized (loss) gain on derivative financial instruments ( 75,907 ) 173,366 81,608 Other comprehensive (loss) income ( 568 ) 1,714 ( 2,862 ) Comprehensive income 249,329 252,771 419,411 Comprehensive income attributable to non-controlling interests ( 3,342 ) ( 2,415 ) ( 3,080 ) Comprehensive income attributable to Blackstone Mortgage Trust, Inc. $ 245,987 $ 250,356 $ 416,331 See accompanying notes to consolidated financial statements. F-7 Blackstone Mortgage Trust, Inc. Consolidated Statements of Changes in Equity (in thousands) Blackstone Mortgage Trust, Inc. Class A Common Stock Additional Paid- In Capital Accumulated Other Comprehensive Income (Loss ) Accumulated Deficit Stockholders’ Equity Non-Controlling Interests Total Equity Balance at December 31, 2020 $ 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 Restricted class A common stock earned 12 31,040 — — 31,052 — 31,052 Dividends reinvested — 879 — — 879 — 879 Deferred directors’ compensation — 595 — — 595 — 595 Net income — — — 419,193 419,193 3,080 422,273 Other comprehensive loss — — ( 2,862 ) ( 2,862 ) — ( 2,862 ) Dividends declared on common stock and deferred stock units, $ 2.48 per share — — — ( 384,741 ) ( 384,741 ) — ( 384,741 ) Contributions from non-controlling interests — — — — — 55,912 55,912 Distributions to non-controlling interests — — — — — ( 46,632 ) ( 46,632 ) Balance at December 31, 2021 $ 1,682 $ 5,373,029 $ 8,308 $ ( 794,832 ) $ 4,588,187 $ 30,524 $ 4,618,711 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 Restricted class A common stock earned 12 32,712 — — 32,724 — 32,724 Dividends reinvested — 1,176 — — 1,176 — 1,176 Deferred directors’ compensation — 690 — — 690 — 690 Net income — — — 248,642 248,642 2,415 251,057 Other comprehensive income — — 1,714 1,714 — 1,714 Dividends declared on common stock and deferred stock units, $ 2.48 per share — — — ( 424,513 ) ( 424,513 ) — ( 424,513 ) Contributions from non-controlling interests — — — — — 5,040 5,040 Distributions to non-controlling interests — — — — — ( 12,573 ) ( 12,573 ) Balance at December 31, 2022 $ 1,717 $ 5,475,804 $ 10,022 $ ( 968,749 ) $ 4,518,794 $ 25,406 $ 4,544,200 Restricted class A common stock earned 15 29,960 — — 29,975 — 29,975 Dividends reinvested — 1,015 — — 1,015 — 1,015 Deferred directors’ compensation — 680 — — 680 — 680 Net income — — — 246,555 246,555 3,342 249,897 Other comprehensive loss — — ( 568 ) — ( 568 ) — ( 568 ) Dividends declared on common stock and deferred stock units, $ 2.48 per share — — — ( 428,740 ) ( 428,740 ) — ( 428,740 ) Distributions to non-controlling interests — — — — — ( 8,955 ) ( 8,955 ) Balance at December 31, 2023 $ 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. F-8 Blackstone Mortgage Trust, Inc. Consolidated Statements of Cash Flows (in thousands) Year Ended December 31, 2023 2022 2021 Cash flows from operating activities Net income $ 249,897 $ 251,057 $ 422,273 Adjustments to reconcile net income to net cash provided by operating activities Non-cash compensation expense 30,655 33,414 31,647 Amortization of deferred fees on loans and debt securities ( 78,428 ) ( 81,748 ) ( 68,905 ) Amortization of deferred financing costs and premiums/discounts on debt obligations 54,264 50,020 41,002 Payment-in-kind interest, net of interest received ( 2,865 ) — — Increase (decrease) in current expected credit loss reserve 249,790 211,505 ( 39,864 ) Gain on extinguishment of debt ( 4,616 ) — — Unrealized gain on assets denominated in foreign currencies, net — ( 31 ) ( 6,866 ) 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 Changes in assets and liabilities, net Other assets ( 20,666 ) ( 106,372 ) ( 21,616 ) Other liabilities 6,243 58,928 24,856 Net cash provided by operating activities 458,841 396,825 382,483 Cash flows from investing activities Principal fundings of loans receivable ( 1,344,130 ) ( 6,810,218 ) ( 12,550,463 ) Principal collections, sales proceeds, and cost-recovery proceeds from loans receivable and debt securities 2,840,467 3,254,595 6,730,339 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 ) 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 Net cash provided by (used in) investing activities 1,444,077 ( 3,253,535 ) ( 5,627,461 ) continued… See accompanying notes to consolidated financial statements. F-9 Blackstone Mortgage Trust, Inc. Consolidated Statements of Cash Flows (in thousands) Year Ended December 31, 2023 2022 2021 Cash flows from financing activities Borrowings under secured debt $ 1,636,899 $ 5,282,882 $ 12,475,664 Repayments under secured debt ( 2,742,450 ) ( 3,578,806 ) ( 7,801,330 ) Proceeds from issuance of securitized debt obligations — — 803,750 Repayments of securitized debt obligations ( 166,027 ) ( 182,084 ) ( 888,763 ) Borrowings under asset-specific debt 292,019 770,665 272,065 Repayments under asset-specific debt ( 239,037 ) ( 208,644 ) ( 271,065 ) Proceeds from sale of loan participations 100,692 245,278 — Net proceeds from term loan borrowings — 807,750 298,500 Repayments of term loans ( 21,997 ) ( 17,053 ) ( 13,495 ) Proceeds from issuance of senior secured notes — — 400,000 Repurchases of senior secured notes ( 28,945 ) — — Net proceeds from issuance of convertible notes — 294,000 — Repayment of convertible notes ( 220,000 ) ( 402,500 ) — Payment of deferred financing costs ( 23,215 ) ( 45,996 ) ( 43,725 ) Contributions from non-controlling interests — 5,040 55,912 Distributions to non-controlling interests ( 8,955 ) ( 12,573 ) ( 46,632 ) Net proceeds from issuance of class A common stock — 70,651 638,005 Dividends paid on class A common stock ( 426,927 ) ( 421,386 ) ( 370,662 ) Net cash (used in) provided by financing activities ( 1,847,943 ) 2,607,224 5,508,224 Net increase (decrease) in cash and cash equivalents 54,975 ( 249,486 ) 263,246 Cash and cash equivalents at beginning of year 291,340 551,154 289,970 Effects of currency translation on cash and cash equivalents 3,699 ( 10,328 ) ( 2,062 ) 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 ) 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 ) Loan principal payments held by servicer, net $ 48,287 $ 7,425 $ 17,528 See accompanying notes to consolidated financial statements. F-10 1. ORGANIZATION References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us” or “our” refer to Blackstone Mortgage Trust, Inc., a Maryland corporation, and its subsidiaries unless the context specifically requires otherwise. Blackstone Mortgage Trust is a real estate finance company that originates senior loans collateralized by commercial real estate in North America, Europe, and Australia. 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. 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. We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” Our principal executive offices are located at 345 Park Avenue, 24th Floor, New York, New York 10154. We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended. We are organized as a holding company and conduct our business primarily through our various subsidiaries. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, and include, on a consolidated basis, our accounts, the accounts of our wholly-owned subsidiaries, majority-owned subsidiaries, and variable interest entities, or VIEs, of which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. 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 We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have an interest with the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. In 2017, we entered into a joint venture, or our Multifamily Joint Venture, with Walker & Dunlop Inc. to originate, hold, and finance multifamily bridge loans. Pursuant to the terms of the agreements governing the joint venture, Walker & Dunlop contributed 15 % of the venture’s equity capital and we contributed 85 %. We consolidate the Multifamily Joint Venture as we have a controlling financial interest. The non-controlling interests included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are owned by Walker & Dunlop. A portion of our Multifamily Joint Venture’s consolidated equity and results of operations are allocated to these non-controlling interests based on Walker & Dunlop’s pro rata ownership of our Multifamily Joint Venture. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may ultimately differ materially from those estimates. F-11 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) Revenue Recognition 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. Recognition of fees, premiums, and discounts associated with these investments is deferred and recorded over the term of the loan as an adjustment to yield. Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in our opinion, recovery of income and principal becomes doubtful. Interest received is then recorded as income or as a reduction in the amortized cost basis, based on the specific facts and circumstances, until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses are deferred and recognized as a reduction to interest income, however expenses related to loans we acquire are included in general and administrative expenses as incurred. Cash and Cash Equivalents Cash and cash equivalents represent cash held in banks and liquid investments with original maturities of three months or less. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. We have not experienced, and do not expect, any losses on our cash or cash equivalents. As of both December 31, 2023 and 2022, we had no restricted cash on our consolidated balance sheets. 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. Cash in these Servicing Accounts will be transferred by the respective third-party servicer to the borrower or us under the terms of the applicable loan agreement upon occurrence of certain future events. We do not generate any revenue or incur any expenses as a result of these Servicing Accounts. Loans Receivable We originate and purchase commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost. Current Expected Credit Losses Reserve The current expected credit loss, or CECL, reserve required under the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 326 “Financial Instruments – Credit Losses,” or ASC 326, reflects our current estimate of potential credit losses related to our loans included in our consolidated balance sheets. Changes to the CECL reserves are recognized through net income on our consolidated statements of operations. While ASC 326 does not require any particular method for determining the CECL reserves, it does specify the reserves should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. In addition, other than a few narrow exceptions, ASC 326 requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the 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. We estimate our CECL reserves primarily using the Weighted-Average Remaining Maturity, or WARM method, which has been identified as an acceptable loss-rate method for estimating CECL reserves in FASB Staff Q&A Topic 326, No. 1. The WARM method requires us to reference historic loan loss data across a comparable data set and apply such loss rate to each of our loans over their expected remaining term, taking into consideration expected economic conditions over the relevant timeframe. We apply the WARM method for the majority of our loan portfolio, which consists of loans that share similar risk characteristics. In certain instances, for loans with unique risk characteristics, we may instead use a probability-weighted model that considers the likelihood of default and expected loss given default for each such individual loan. Application of the WARM method to estimate CECL reserves requires judgment, including (i) the appropriate historical loan loss reference data, (ii) the expected timing and amount of future loan fundings and repayments, and (iii) the current credit quality of our portfolio and our expectations of performance and market conditions over the relevant time period. To estimate the historic loan losses relevant to our portfolio, we have augmented our historical loan performance, with market loan loss data licensed from Trepp LLC. This database includes commercial mortgage-backed securities, or CMBS, issued F-12 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) 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. Our loans typically include commitments to fund incremental proceeds to our borrowers over the life of the loan. These future funding commitments are also subject to the CECL model. The CECL reserve related to future loan fundings is recorded as a component of other liabilities on our consolidated balance sheets. This CECL reserve is estimated using the same process outlined above for our outstanding loan balances, and changes in this component of the CECL reserve will similarly impact our consolidated net income. For both the funded and unfunded portions of our loans, we consider our internal risk rating of each loan as the primary credit quality indicator underlying our assessment. The CECL reserves are measured on a collective basis wherever similar risk characteristics exist within a pool of similar assets. We have identified the following pools and measure the reserve for credit losses using the following methods: • U.S. Loans : WARM method that incorporates a subset of historical loss data, expected weighted-average remaining maturity of our loan pool, and an economic view. • Non-U.S. Loans : WARM method that incorporates a subset of historical loss data, expected weighted-average remaining maturity of our loan pool, and an economic view. • Unique Loans : a probability of default and loss given default model, assessed on an individual basis. • Impaired Loans : impairment is indicated when it is deemed probable that we will not be able to collect all amounts due to us pursuant to the contractual terms of the loan. Determining that a loan is impaired requires significant judgment from management and is based on several factors including (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan. If a loan is determined to be impaired, we record the impairment as a component of our CECL reserves by applying the practical expedient for collateral dependent loans. The CECL reserves are assessed on an individual basis for these loans by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed relevant by us. Actual losses, if any, could ultimately differ materially from these estimates. We only expect to charge-off the impairment losses in our consolidated financial statements prepared in accordance with GAAP if and when such amounts are deemed non-recoverable. This is generally at the time a loan is repaid or foreclosed. However, non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected. Contractual Term and Unfunded Loan Commitments Expected credit losses are estimated over the contractual term of each loan, adjusted for expected repayments. As part of our quarterly review of our loan portfolio, we assess the expected repayment date of each loan, which is used to determine the contractual term for purposes of computing our CECL reserves. Additionally, the expected credit losses over the contractual period of our loans are subject to the obligation to extend credit through our unfunded loan commitments. The CECL reserve for unfunded loan commitments is adjusted quarterly, as we consider the expected timing of future funding obligations over the estimated life of the loan. The considerations in estimating our CECL reserve for unfunded loan commitments are similar to those used for the related outstanding loans receivable. Credit Quality Indicator Our risk rating is our primary credit quality indicator in assessing our current expected credit loss reserve. We perform a quarterly risk review of our portfolio of loans, and assign each loan a risk rating based on a variety of factors, including, without limitation, origination LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a 5-point F-13 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) scale, our loans are rated “l” through “5,” from less risk to greater risk, relative to our loan portfolio in the aggregate, which ratings are defined as follows: 1 - Very Low Risk 2 - Low Risk 3 - Medium Risk 4 - High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss. 5 - Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss. Estimation of Economic Conditions In addition to the WARM method computations and probability-weighted models described above, our CECL reserves are also adjusted to reflect our estimation of the current and future economic conditions that impact the performance of the commercial real estate assets securing our loans. These estimations include unemployment rates, interest rates, expectations of inflation and/or recession, and other macroeconomic factors impacting the likelihood and magnitude of potential credit losses for our loans during their anticipated term. In addition to the CMBS data we have licensed from Trepp LLC, we have also licensed certain macroeconomic financial forecasts to inform our view of the potential future impact that broader economic conditions may have on our loan portfolio’s performance. We generally also incorporate information from other sources, including information and opinions available to our Manager, to further inform these estimations. This process requires significant judgments about future events that, while based on the information available to us as of the balance sheet date, are ultimately indeterminate and the actual economic condition impacting our portfolio could vary significantly from the estimates we made as of December 31, 2023. Derivative Financial Instruments We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets at fair value. On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all derivatives other than those designated as non-designated hedges, we formally document our hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction. On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in net income prospectively. Our net investment hedges are assessed using a method based on changes in spot exchange rates. Gains and losses, representing hedge components excluded from the assessment of effectiveness, are recognized in interest income on our consolidated statements of operations over the contractual term of our net investment hedges on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. All other changes in the fair value of our derivative instruments that qualify as hedges are reported as a component of accumulated other comprehensive income (loss) on our consolidated financial statements. Deferred gains and losses are reclassified out of accumulated other comprehensive income (loss) and into net income in the same period or periods during which the hedged transaction affects earnings, and are presented in the same line item as the earnings effect of the hedged item. For cash flow hedges, this is typically when the periodic swap settlements are made, while for net investment hedges, this occurs when the hedged item is sold or substantially liquidated. To the extent a derivative does not qualify for hedge accounting and is deemed a non-designated hedge, the changes in its fair value are included in net income concurrently. Proceeds or payments from periodic settlements of derivative instruments are classified on our consolidated statement of cash flows in the same section as the underlying hedged item. F-14 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) Secured Debt and Asset-Specific Debt We record investments financed with secured debt or asset-specific debt as separate assets and the related borrowings under any secured debt or asset-specific debt are recorded as separate liabilities on our consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the secured debt or asset-specific debt are reported separately on our consolidated statements of operations. Loan Participations Sold In certain instances, we have executed a syndication of a non-recourse loan interest to a third-party. Depending on the particular structure of the syndication, the loan interest may remain on our GAAP balance sheet or, in other cases, the sale will be recognized and the loan interest will no longer be included in our consolidated financial statements. When these sales are not recognized under GAAP we reflect the transaction by recording a loan participation sold liability on our consolidated balance sheet, however this gross presentation does not impact stockholders’ equity or net income. When the sales are recognized, our balance sheet only includes our remaining loan interest, and excludes the interest in the loan that we sold. Term Loans We record our term loans as liabilities on our consolidated balance sheets. Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the term loans as additional non-cash interest expense. Senior Secured Notes We record our senior secured notes as liabilities on our consolidated balance sheets. Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the senior secured notes as additional non-cash interest expense. Convertible Notes Convertible note proceeds, unless issued with a substantial premium or an embedded conversion feature, are classified as debt. Additionally, shares issuable under our convertible notes are included in diluted earnings per share in our consolidated financial statements, if the effect is dilutive, using the if-converted method, regardless of settlement intent. Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the convertible notes as additional non-cash interest expense. Deferred Financing Costs The deferred financing costs that are included as a reduction in the net book value of the related liability on our consolidated balance sheets include issuance and other costs related to our debt obligations. These costs are amortized as interest expense using the effective interest method over the life of the related obligations. Underwriting Commissions and Offering Costs Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common stock offering are expensed when incurred. Fair Value of Financial Instruments The “Fair Value Measurements and Disclosures” Topic o f the FASB, or ASC 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP. Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the F-15 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows: • Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date. • Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates. • Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third-parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Certain of our other assets are reported at fair value, as of quarter-end, either (i) on a recurring basis or (ii) on a nonrecurring basis, as a result of impairment or other events. Our assets that are recorded at fair value are discussed further in Note 17. We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from third-parties. For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our estimation of the fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors. 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. 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. 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 %. We are also required by GAAP to disclose fair value information about financial instruments, which are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments. The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value: • Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates fair value. • Loans receivable, net: The fair values of these loans were estimated using a discounted cash flow methodology, taking into consideration various factors including capitalization rates, discount rates, leasing, credit worthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors. • Derivative financial instruments: The fair value of our foreign currency and interest rate contracts was estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads. • Secured debt, net: The fair value of these instruments was estimated based on the rate at which a similar credit facility would currently be priced. F-16 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) • Securitized debt obligations, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. • Asset-specific debt, net: The fair value of these instruments was estimated based on the rate at which a similar agreement would currently be priced. • Loan participations sold, net: The fair value of these instruments was estimated based on the value of the related loan receivable asset. • Term loans, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. • Senior secured notes, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. • Convertible notes, net: Each series of the convertible notes is actively traded and their fair values were obtained using quoted market prices. Income Taxes Our financial results generally do not reflect provisions for current or deferred income taxes on our REIT taxable income. We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries. If we were to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and penalties. Refer to Note 15 for additional information. Stock-Based Compensation Our stock-based compensation consists of awards issued to our Manager, certain individuals employed by an affiliate of our Manager, and certain members of our board of directors that vest over the life of the awards, as well as deferred stock units issued to certain members of our board of directors. Stock-based compensation expense is recognized for these awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A common stock. Refer to Note 16 for additional information. Earnings per Share Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on (i) the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by (ii) the weighted-average number of shares of our class A common stock, including restricted class A common stock and deferred stock units outstanding during the period. Our restricted class A common stock is considered a participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or losses. Diluted earnings per share, or Diluted EPS, is determined using the if-converted method, and is based on (i) the net earnings, adjusted for interest expense incurred on our convertible notes during the relevant period, net of incentive fees, allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by (ii) the weighted-average number of shares of our class A common stock, including restricted class A common stock, deferred stock units, and shares of class A common stock issuable under our convertible notes. Refer to Note 13 for additional discussion of earnings per share. F-17 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) Foreign Currency In the normal course of business, we enter into transactions not denominated in United States, or U.S., dollars. Foreign exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statements of operations. In addition, we consolidate entities that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains, and losses are translated at the average exchange rate over the applicable period. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated subsidiaries are recorded in other comprehensive income (loss). Recent Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update, or ASU, 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” or ASU 2023-09. ASU 2023-09 requires additional disaggregated disclosures on the entity’s effective tax rate reconciliation and additional details on income taxes paid. ASU 2023-09 is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2024 and early adoption is permitted. We do not expect the adoption of ASU 2023-09 to have a material impact on our consolidated financial statements. In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” or ASU 2023-07. ASU 2023-07 enhances the disclosures required for reportable segments on an annual and interim basis. 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. 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): Troubled Debt Restructurings and Vintage Disclosures,” or ASU 2022-02. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings and requires disclosure of current-period gross write-offs by year of loan origination. Additionally, ASU 2022-02 updates the accounting for credit losses under ASC 326 and adds enhanced disclosures with respect to loan refinancings and restructurings in the form of principal forgiveness, interest rate concessions, other-than-insignificant payment delays, or term extensions when the borrower is experiencing financial difficulties. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022 and early adoption is permitted. 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. The adoption of ASU 2022-02 on January 1, 2023 did not have a material impact on our consolidated financial statements. Reference Rate Reform LIBOR and certain other floating rate benchmark indices have been the subject of national, international and regulatory guidance and proposals for reform or replacement. The Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee composed of large U.S. 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. 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. F-18 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) 3. LOANS RECEIVABLE, NET The following table details overall statistics for our loans receivable portfolio ($ in thousands): December 31, 2023 December 31, 2022 Number of loans 178 203 Principal balance $ 23,923,719 $ 25,160,343 Net book value $ 23,210,076 $ 24,691,743 Unfunded loan commitments (1) $ 2,430,664 $ 3,806,153 Weighted-average cash coupon (2) + 3.37 % + 3.44 % Weighted-average all-in yield (2) + 3.71 % + 3.84 % Weighted-average maximum maturity (years) (3) 2.4 3.1 (1) Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date. (2) The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include SOFR, USD LIBOR, SONIA, EURIBOR, and other indices, as applicable to each loan. 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. 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. 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. Excludes loans accounted for under the cost-recovery method. (3) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of December 31, 2023, 14 % of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 86 % were open to repayment by the borrower without penalty. 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. F-19 Blackstone Mortgage Trust, Inc. 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): Loans Receivable Principal Balance Index Rate Floors USD Non-USD (1) Total Fixed Rate $ 327,643 $ — $ 327,643 0.00% or no floor (2) 4,292,620 7,066,714 11,359,334 0.01% to 1.00% floor 6,683,636 810,979 7,494,615 1.01% to 2.00% floor 2,437,844 295,384 2,733,228 2.01% to 3.00% floor 1,334,636 — 1,334,636 3.01% or more floor 478,007 196,256 674,263 Total (3) $ 15,554,386 $ 8,369,333 $ 23,923,719 (1) Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, Swiss Franc, and Danish Krone currencies. (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. (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 %. As of December 31, 2022, the weighted-average index rate floor of our loans receivable principal balance was 0.36 %. 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): Principal Balance Deferred Fees / Other Items (1) Net Book Value Loans Receivable, as of December 31, 2021 $ 22,156,437 $ ( 153,420 ) $ 22,003,017 Loan fundings 6,810,218 — 6,810,218 Loan repayments and sales proceeds ( 3,168,155 ) — ( 3,168,155 ) Unrealized (loss) gain on foreign currency translation ( 638,157 ) 5,255 ( 632,902 ) Deferred fees and other items — ( 74,930 ) ( 74,930 ) Amortization of fees and other items — 80,632 80,632 Loans Receivable, as of December 31, 2022 $ 25,160,343 $ ( 142,463 ) $ 25,017,880 Loan fundings 1,344,130 — 1,344,130 Loan repayments, sales, and cost-recovery proceeds ( 2,871,423 ) ( 52,978 ) ( 2,924,401 ) Payment-in-kind interest, net of interest received 2,865 — 2,865 Unrealized gain (loss) on foreign currency translation 287,804 ( 1,702 ) 286,102 Deferred fees and other items — ( 17,992 ) ( 17,992 ) Amortization of fees and other items — 78,428 78,428 Loans Receivable, as of December 31, 2023 $ 23,923,719 $ ( 136,707 ) $ 23,787,012 CECL reserve ( 576,936 ) Loans Receivable, net, as of December 31, 2023 $ 23,210,076 (1) Other items primarily consist of purchase and sale discounts or premiums, exit fees, deferred origination expenses, and cost-recovery proceeds. F-20 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio ($ in thousands): December 31, 2023 Property Type Number of Loans Net Book Value Total Loan Exposure (1) Net Loan Exposure (2) Net Loan Exposure Percentage of Portfolio Office 54 $ 9,253,609 $ 10,072,963 $ 7,956,472 36 % Multifamily 73 5,876,128 5,997,886 5,756,192 26 Hospitality 23 4,161,525 4,194,588 3,804,091 17 Industrial 12 2,189,808 2,201,497 2,190,914 10 Retail 6 814,241 834,825 785,573 4 Life Sciences / Studio 4 385,098 561,517 384,219 2 Other 6 1,106,603 1,107,752 1,074,527 5 Total loans receivable 178 $ 23,787,012 $ 24,971,028 $ 21,951,988 100 % CECL reserve ( 576,936 ) Loans receivable, net $ 23,210,076 Geographic Location Number of Loans Net Book Value Total Loan Exposure (1) Net Loan Exposure (2) Net Loan Exposure Percentage of Portfolio United States Sunbelt 65 $ 5,658,172 $ 5,786,395 $ 5,402,732 25 % Northeast 30 5,386,940 5,426,951 4,340,660 20 West 31 3,088,644 4,108,074 2,910,559 13 Midwest 9 944,132 945,222 913,973 4 Northwest 6 382,591 385,978 383,382 2 Subtotal 141 15,460,479 16,652,620 13,951,306 64 International United Kingdom 20 3,470,120 3,439,678 3,181,489 14 Australia 5 1,429,144 1,437,870 1,432,146 7 Ireland 3 1,191,068 1,197,337 1,188,554 5 Spain 3 1,117,790 1,120,375 1,078,811 5 Sweden 1 474,262 476,718 476,281 2 Other Europe 5 644,149 646,430 643,401 3 Subtotal 37 8,326,533 8,318,408 8,000,682 36 Total loans receivable 178 $ 23,787,012 $ 24,971,028 $ 21,951,988 100 % CECL reserve ( 576,936 ) Loans receivable, net $ 23,210,076 (1) Total loan exposure reflects our aggregate exposure to each loan investment. 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. See Note 2 for further discussion of loan participations sold. (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. Our non-consolidated senior interests, asset-specific debt, and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans. F-21 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) December 31, 2022 Property Type Number of Loans Net Book Value Total Loan Exposure (1) Net Loan Exposure (2) Net Loan Exposure Percentage of Portfolio Office 60 $ 9,082,946 $ 10,023,495 $ 8,099,334 34 % Multifamily 80 6,214,123 6,330,153 6,189,298 26 Hospitality 30 4,879,314 4,908,583 4,552,404 19 Industrial 12 2,140,636 2,236,716 2,150,501 9 Retail 9 1,098,315 1,141,932 1,090,238 5 Life Sciences/Studio 4 358,676 570,089 359,830 2 Other 8 1,243,870 1,599,313 1,217,578 5 Total loans receivable 203 $ 25,017,880 $ 26,810,281 $ 23,659,183 100 % CECL reserve ( 326,137 ) Loans receivable, net $ 24,691,743 Geographic Location Number of Loans Net Book Value Total Loan Exposure (1) Net Loan Exposure (2) Net Loan Exposure Percentage of Portfolio United States Sunbelt 75 $ 6,538,034 $ 6,802,928 $ 6,244,886 27 % Northeast 36 5,339,874 5,666,968 4,570,180 19 West 33 3,515,517 4,547,946 3,486,343 15 Midwest 10 987,718 1,091,882 984,151 4 Northwest 6 317,863 321,937 320,156 1 Subtotal 160 16,699,006 18,431,661 15,605,716 66 International United Kingdom 23 3,362,629 3,393,126 3,123,925 13 Australia 5 1,405,601 1,417,318 1,408,565 6 Spain 4 1,237,446 1,241,808 1,204,218 5 Ireland 3 1,192,220 1,199,406 1,197,892 5 Sweden 1 473,374 476,673 476,367 2 Canada 1 49,409 49,432 49,398 — Other Europe 6 598,195 600,857 593,102 3 Subtotal 43 8,318,874 8,378,620 8,053,467 34 Total loans receivable 203 $ 25,017,880 $ 26,810,281 $ 23,659,183 100 % CECL reserve ( 326,137 ) Loans receivable, net $ 24,691,743 (1) Total loan exposure reflects our aggregate exposure to each loan investment. 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. See Note 2 for further discussion of loan participations sold. (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. Our non-consolidated senior interests, asset-specific debt, and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans. F-22 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) Loan Risk Ratings As further described in Note 2, we evaluate our loan portfolio on a quarterly basis. In conjunction with our quarterly loan portfolio review, we assess the risk factors of each loan, and assign a risk rating based on several factors. Factors considered in the assessment include, but are not limited to, risk of loss, origination LTV, debt yield, collateral performance, structure, exit plan, and sponsorship. Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2. The following table allocates the net book value, total loan exposure, and net loan exposure balances based on our internal risk ratings ($ in thousands): December 31, 2023 Risk Rating Number of Loans Net Book Value Total Loan Exposure (1) Net Loan Exposure (2) 1 15 $ 763,101 $ 811,217 $ 763,223 2 36 6,143,184 6,618,319 5,095,395 3 99 12,277,518 12,573,282 11,964,620 4 15 2,725,930 3,036,837 2,668,025 5 13 1,877,279 1,931,373 1,460,725 Total loans receivable 178 $ 23,787,012 $ 24,971,028 $ 21,951,988 CECL reserve ( 576,936 ) Loans receivable, net $ 23,210,076 December 31, 2022 Risk Rating Number of Loans Net Book Value Total Loan Exposure (1) Net Loan Exposure (2) 1 17 $ 1,403,185 $ 1,428,232 $ 1,170,725 2 36 5,880,424 6,562,852 5,292,933 3 134 14,128,133 15,209,018 13,826,730 4 11 2,677,027 2,680,145 2,628,539 5 5 929,111 930,034 740,256 Total loans receivable 203 $ 25,017,880 $ 26,810,281 $ 23,659,183 CECL reserve ( 326,137 ) Loans receivable, net $ 24,691,743 (1) Total loan exposure reflects our aggregate exposure to each loan investment. 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. 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. See Note 2 for further discussion of loan participations sold. (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. 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. Our non-consolidated senior interests, asset-specific debt, and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans. Our loan portfolio had a weighted-average risk rating of 3.0 and 2.9 as of December 31, 2023 and 2022, respectively. F-23 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) Current Expected Credit Loss Reserve The CECL reserves required under GAAP reflect our current estimate of potential credit losses related to the loans included in our consolidated balance sheets. Refer to Note 2 for further discussion of our CECL reserves. The following table presents the activity in our loans receivable CECL reserve by investment pool for the year ended December 31, 2023 and 2022 ($ in thousands): U.S. Loans (1) Non-U.S. Loans Unique Loans Impaired Loans Total Loans Receivable, Net CECL reserves as of December 31, 2022 $ 67,880 $ 22,519 $ 45,960 $ 189,778 $ 326,137 Increase in CECL reserves 10,455 9,041 3,411 227,892 250,799 CECL reserves as of December 31, 2023 78,335 31,560 49,371 417,670 576,936 CECL reserves as of December 31, 2021 $ 26,885 $ 10,263 $ 32,657 $ 54,874 $ 124,679 Increase in CECL reserves 40,995 12,256 13,303 134,904 201,458 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. loans. 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. These CECL reserves reflect certain impaired loans in our portfolio, as well as an additional increase in our CECL reserves due to macroeconomic conditions. 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. The increase was primarily driven by three additional loans that were impaired during the three months ended December 31, 2023. As of December 31, 2023, the income accrual was suspended on these loans as recovery of income and principal was doubtful. During the three months ended December 31, 2023, we recorded $ 5.9 million of interest income on these three loans. 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. No income was recorded on our impaired loans subsequent to determining that they were impaired. As of December 31, 2023, one of these loans with an amortized cost basis of $ 140.0 million, was past its current maturity date. This loan was less than 30 days past due on its interest payment and had a risk rating of “5”. As of December 31, 2023, all other borrowers were compliant with the contractual terms of each respective loan, including any required payment of interest. 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. Refer to Note 2 for further discussion of our policies on revenue recognition and our CECL reserves. 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. 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. F-24 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) Our primary credit quality indicator is our risk ratings, which are further discussed above. The following tables present the net book value of our loan portfolio as of 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) As of December 31, 2023 Risk Rating 2023 2022 2021 2020 2019 Prior Total U.S. loans 1 $ — $ 172,575 $ 443,739 $ 39,877 $ 52,939 $ 53,971 $ 763,101 2 — 195,755 1,883,162 32,179 200,917 1,438,175 3,750,188 3 — 1,870,610 3,730,842 613,688 380,726 359,257 6,955,123 4 — 317,665 924,070 — 193,168 679,885 2,114,788 5 — — — — — — — Total U.S. loans $ — $ 2,556,605 $ 6,981,813 $ 685,744 $ 827,750 $ 2,531,288 $ 13,583,200 Non-U.S. loans 1 $ — $ — $ — $ — $ — $ — $ — 2 — 1,034,196 1,230,762 93,423 34,615 — 2,392,996 3 — 643,018 1,084,137 — 2,249,931 — 3,977,086 4 — — — — — — — 5 — — — — — — — Total Non-U.S. loans $ — $ 1,677,214 $ 2,314,899 $ 93,423 $ 2,284,546 $ — $ 6,370,082 Unique loans 1 $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — 3 — 894,599 — — 264,457 186,253 1,345,309 4 — — — — — 611,142 611,142 5 — — — — — — — Total unique loans $ — $ 894,599 $ — $ — $ 264,457 $ 797,395 $ 1,956,451 Impaired loans 1 $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — 3 — — — — — — — 4 — — — — — — — 5 — — 508,264 140,000 — 1,229,015 1,877,279 Total impaired loans $ — $ — $ 508,264 $ 140,000 $ — $ 1,229,015 $ 1,877,279 Total loans receivable 1 $ — $ 172,575 $ 443,739 $ 39,877 $ 52,939 $ 53,971 $ 763,101 2 — 1,229,951 3,113,924 125,602 235,532 1,438,175 6,143,184 3 — 3,408,227 4,814,979 613,688 2,895,114 545,510 12,277,518 4 — 317,665 924,070 — 193,168 1,291,027 2,725,930 5 — — 508,264 140,000 — 1,229,015 1,877,279 Total loans receivable $ — $ 5,128,418 $ 9,804,976 $ 919,167 $ 3,376,753 $ 4,557,698 $ 23,787,012 CECL reserve ( 576,936 ) Loans receivable, net $ 23,210,076 (1) Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications. F-25 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) Net Book Value of Loans Receivable by Year of Origination (1) As of December 31, 2022 Risk Rating 2022 2021 2020 2019 2018 Prior Total U.S. loans (2) 1 $ 145,152 $ 563,426 $ 5,075 $ 231,894 $ 415,471 $ — $ 1,361,018 2 117,314 1,742,289 362,062 156,478 1,178,721 — 3,556,864 3 2,035,111 5,776,346 411,880 735,772 472,134 80,323 9,511,566 4 — — — 96,542 1,160,627 132,687 1,389,856 5 — — — — — — — Total U.S. loans $ 2,297,577 $ 8,082,061 $ 779,017 $ 1,220,686 $ 3,226,953 $ 213,010 $ 15,819,304 Non-U.S. loans 1 $ — $ — $ — $ — $ — $ — $ — 2 590,580 609,270 94,995 1,028,715 — — 2,323,560 3 977,767 1,586,266 — 896,392 86,706 — 3,547,131 4 — — — 344,089 — — 344,089 5 — — — — — — — Total Non-U.S. loans $ 1,568,347 $ 2,195,536 $ 94,995 $ 2,269,196 $ 86,706 $ — $ 6,214,780 Unique loans 1 $ 42,167 $ — $ — $ — $ — $ — $ 42,167 2 — — — — — — — 3 893,114 — — — 176,322 — 1,069,436 4 — — — 289,141 653,941 — 943,082 5 — — — — — — — Total unique loans $ 935,281 $ — $ — $ 289,141 $ 830,263 $ — $ 2,054,685 Impaired loans 1 $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — 3 — — — — — — — 4 — — — — — — — 5 — 208,894 — — 284,809 435,408 929,111 Total impaired loans $ — $ 208,894 $ — $ — $ 284,809 $ 435,408 $ 929,111 Total loans receivable 1 $ 187,319 $ 563,426 $ 5,075 $ 231,894 $ 415,471 $ — $ 1,403,185 2 707,894 2,351,559 457,057 1,185,193 1,178,721 — 5,880,424 3 3,905,992 7,362,612 411,880 1,632,164 735,162 80,323 14,128,133 4 — — — 729,772 1,814,568 132,687 2,677,027 5 — 208,894 — — 284,809 435,408 929,111 Total loans receivable $ 4,801,205 $ 10,486,491 $ 874,012 $ 3,779,023 $ 4,428,731 $ 648,418 $ 25,017,880 CECL reserve ( 326,137 ) Loans receivable, net $ 24,691,743 (1) Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications. (2) Includes Canadian loans, which have similar risk characteristics as U.S. loans. F-26 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) Loan Modifications Pursuant to ASC 326 During the year ended December 31, 2023, we entered into five loan modifications that require disclosure pursuant to ASC 326. Four of these loans were collateralized by office assets and one was collateralized by a hospitality asset. Three of the loan modifications included other-than-insignificant payment delays, specifically the option to pay interest in-kind. 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 %. The second modification included an additional 4.00 % exit fee. The third modification included an additional 2.00 % exit fee and the interest rate increased by 2.00 %. 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. 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. 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. 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. 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. 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. 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. The loans were performing pursuant to their contractual terms as of December 31, 2023. 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. Loan modifications that allow the option to pay interest in-kind increase our potential economics and the size of our secured claim, as interest is capitalized and added to the outstanding principal balance for applicable loans. As of 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. 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. 4. OTHER ASSETS AND LIABILITIES Other Assets The following table details the components of our other assets ($ in thousands): December 31, 2023 December 31, 2022 Accrued interest receivable $ 214,835 $ 189,569 Loan portfolio payments held by servicer (1) 152,423 68,489 Collateral deposited under derivative agreements 103,500 103,110 Accounts receivable and other assets 2,420 1,318 Derivative assets 1,890 7,349 Prepaid expenses 1,020 1,067 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. F-27 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) Other Liabilities The following table details the components of our other liabilities ($ in thousands): December 31, 2023 December 31, 2022 Accrued dividends payable $ 107,390 $ 106,455 Accrued interest payable 97,820 80,263 Derivative liabilities 94,817 119,665 Accrued management and incentive fees payable 26,342 33,830 Current expected credit loss reserves for unfunded loan commitments (1) 15,371 16,380 Secured debt repayments pending servicer remittance (2) 13,526 60,585 Accounts payable and other liabilities 7,265 9,726 Total $ 362,531 $ 426,904 (1) Represents the CECL reserve related to our unfunded loan commitments. See Note 2 for further discussion of the CECL reserves. (2) Represents pending transfers from our third-party loan servicer that were remitted to our banking counterparties during the subsequent remittance cycle. Current Expected Credit Loss Reserves for Unfunded Loan Commitments 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. 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. 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): U.S. Loans Non-U.S. Loans Unique Loans Impaired Loans Total CECL reserves as of December 31, 2022 $ 11,748 $ 4,632 $ — $ — $ 16,380 Decrease in CECL reserves ( 693 ) ( 316 ) — — ( 1,009 ) CECL reserves as of December 31, 2023 $ 11,055 $ 4,316 $ — $ — $ 15,371 CECL reserves as of December 31, 2021 $ 4,072 $ 2,191 $ — $ — $ 6,263 Increase in CECL reserves 7,676 2,441 — — 10,117 CECL reserves as of December 31, 2022 $ 11,748 $ 4,632 $ — $ — $ 16,380 F-28 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) 5. SECURED DEBT, NET Our secured debt includes our secured credit facilities and our acquisition facility. 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. The following table details our secured debt ($ in thousands): Secured Debt Borrowings Outstanding December 31, 2023 December 31, 2022 Secured credit facilities $ 12,697,058 $ 13,549,748 Acquisition facility — — Total secured debt $ 12,697,058 $ 13,549,748 Deferred financing costs (1) ( 13,963 ) ( 21,584 ) Net book value of secured debt $ 12,683,095 $ 13,528,164 (1) Costs incurred in connection with our secured debt are recorded on our consolidated balance sheets when incurred and recognized as a component of interest expense over the life of each related facility. Secured Credit Facilities Our secured credit facilities are bilateral agreements we use to finance diversified pools of senior loan collateral with sufficient flexibility to accommodate our investment and asset management strategy. The facilities are uniformly structured to provide currency, index, and term-matched financing without capital markets based mark-to-market provisions. Our 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): December 31, 2023 Recourse Limitation Currency Lenders (1) Borrowings Wtd. Avg. Maturity (2) Loan Count Collateral (3) Wtd. Avg. Maturity (4) Wtd. Avg. Range USD 14 $ 6,643,853 June 2026 125 $ 10,584,023 June 2026 35 % 25 % - 100 % GBP 7 2,337,852 June 2026 19 3,143,684 August 2026 27 % 25 % - 50 % EUR 7 2,068,449 September 2025 11 2,786,896 September 2025 41 % 25 % - 100 % Others (5) 4 1,646,904 July 2027 7 2,079,715 July 2027 25 % 25 % 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. (2) Our secured debt agreements are generally term-matched to their underlying collateral. Therefore, the weighted-average maturity is generally allocated based on the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. In limited instances, the maturity date of the respective secured credit facility is used. (3) Represents the principal balance of the collateral assets. (4) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. (5) Includes Australian Dollar, 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. Certain structural elements of our secured credit facilities, including the F-29 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) 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. 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 Spread (1) New Financings (2) Total Borrowings Wtd. Avg. All-in Cost (1)(3)(4) Collateral (5) Wtd. Avg. All-in Yield (1)(3) Net Interest Margin (6) + 1.50% or less $ — $ 5,647,848 + 1.53 % $ 8,341,383 + 3.24 % + 1.71 % + 1.51% to + 1.75% — 2,679,699 + 1.82 % 3,723,365 + 3.49 % + 1.67 % + 1.76% to + 2.00% 42,908 1,850,809 + 2.11 % 2,913,067 + 3.92 % + 1.81 % + 2.01% or more 70,845 2,518,702 + 2.64 % 3,616,503 + 4.30 % + 1.66 % Total $ 113,753 $ 12,697,058 + 1.89 % $ 18,594,318 + 3.58 % + 1.69 % Year Ended December 31, 2022 December 31, 2022 Spread (1) New Financings (2) Total Borrowings Wtd. Avg. All-in Cost (1)(3)(4) Collateral (5) Wtd. Avg. All-in Yield (1)(3) Net Interest Margin (6) + 1.50% or less $ 1,329,508 $ 7,433,204 + 1.53 % $ 10,465,647 + 3.24 % + 1.71 % + 1.51% to + 1.75% 368,265 2,246,223 + 1.88 % 3,538,815 + 3.73 % + 1.85 % + 1.76% to + 2.00% 405,723 1,514,541 + 2.16 % 2,483,240 + 4.14 % + 1.98 % + 2.01% or more 1,246,650 2,355,780 + 2.63 % 3,207,088 + 4.78 % + 2.15 % Total $ 3,350,146 $ 13,549,748 + 1.85 % $ 19,694,790 + 3.70 % + 1.85 % (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. (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. All-in yield excludes loans accounted for under the cost-recovery method. (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. (6) Represents the difference between the weighted-average all-in yield and weighted-average all-in cost. Our secured credit facilities generally permit us to increase or decrease the amount advanced against the pledged collateral in our discretion within certain maximum/minimum amounts and frequency limitations. As of December 31, 2023, there was an aggregate $ 1.3 billion available to be drawn at our discretion under our credit facilities. Acquisition Facility We have a $ 100.0 million full recourse secured credit facility that is designed to finance eligible first mortgage originations for up to nine months as a bridge to term financing without obtaining discretionary lender approval. The cost of borrowing under the facility is variable, dependent on the type of loan collateral, and its maturity date is April 3, 2024. 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. F-30 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) Financial Covenants We are subject to the following financial covenants related to our secured debt: (i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to fixed charges, as defined in the agreements, shall be not less than 1.4 to 1.0; (ii) our tangible net worth, as defined in the agreements, shall not be less than $ 3.6 billion as of each measurement date plus 75 % to 85 % of the net cash proceeds of future equity issuances subsequent to December 31, 2023; (iii) cash liquidity shall not be less than the greater of (x) $ 10.0 million or (y) no more than 5 % of our recourse indebtedness; and (iv) our indebtedness shall not exceed 83.33 % of our total assets. As of December 31, 2023 and 2022, we were in compliance with these covenants. 6. SECURITIZED DEBT OBLIGATIONS, NET We have financed certain pools of our loans through collateralized loan obligations, or CLOs. The CLOs are consolidated in our financial statements and have issued securitized debt obligations that are non-recourse to us. Refer to Note 18 for further discussion of our CLOs. The following tables detail our securitized debt obligations and the underlying collateral assets that are financed by our CLOs ($ in thousands): December 31, 2023 Securitized Debt Obligations Count Principal Balance Book Value (1) Wtd. Avg. Yield/Cost (2)(3) Term (4) 2021 FL4 Collateralized Loan Obligation Senior CLO Securities Outstanding 1 $ 803,750 $ 801,800 + 1.70 % May 2038 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 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 Underlying Collateral Assets 15 1,246,287 1,246,287 + 2.85 % October 2025 Total Senior CLO Securities Outstanding (5) 3 $ 2,507,514 $ 2,505,417 + 1.79 % Underlying Collateral Assets 56 $ 3,151,889 $ 3,151,889 + 2.99 % (1) The book value of underlying collateral assets excludes any applicable CECL reserves. (2) In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees. (3) The weighted-average all-in yield and cost are expressed as a spread over SOFR, which is the relevant floating benchmark rate for each securitized debt obligation. 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. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations. (5) During the year ended December 31, 2023, we recorded $ 171.4 million of interest expense related to our securitized debt obligations. F-31 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) December 31, 2022 Securitized Debt Obligations Count Principal Balance Book Value (1) Wtd. Avg. Yield/Cost (2)(3) Term (4) 2021 FL4 Collateralized Loan Obligation Senior CLO Securities Outstanding 1 $ 803,750 $ 799,626 + 1.57 % May 2038 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 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 Underlying Collateral Assets 17 1,317,916 1,317,916 + 3.42 % November 2024 Total Senior CLO Securities Outstanding (4) 3 $ 2,673,541 $ 2,664,010 + 1.73 % Underlying Collateral Assets 63 $ 3,317,916 $ 3,317,916 + 3.38 % (1) The book value of underlying collateral assets excludes any applicable CECL reserves. (2) In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees. (3) The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates, which include SOFR and USD LIBOR, as applicable to each securitized debt obligation. 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. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations. (5) During the year ended December 31, 2022, we recorded $ 87.6 million of interest expense related to our securitized debt obligations. 7. ASSET-SPECIFIC DEBT, NET The following table details our asset-specific debt ($ in thousands): December 31, 2023 Asset-Specific Debt Count Principal Balance Book Value (1) Wtd. Avg. Yield/Cost (2) Wtd. Avg. Term (3) Financing provided 2 $ 1,004,097 $ 1,000,210 + 3.14 % March 2026 Collateral assets 2 $ 1,194,408 $ 1,186,559 + 3.98 % March 2026 December 31, 2022 Asset-Specific Debt Count Principal Balance Book Value (1) Wtd. Avg. Yield/Cost (22) Wtd. Avg. Term (3) Financing provided 4 $ 950,278 $ 942,503 + 3.29 % January 2026 Collateral assets 4 $ 1,094,450 $ 1,081,035 + 4.73 % January 2026 (1) The book value of underlying collateral assets excludes any applicable CECL reserves. (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. Our non-recourse, asset-specific debt is term-matched in each case to the corresponding collateral loans. F-32 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) 8. LOAN PARTICIPATIONS SOLD, NET The sale of a non-recourse interest in a loan through a participation agreement generally does not qualify for sale accounting under GAAP. For such transactions, we therefore present the whole loan as an asset and the loan participation sold as a liability on our consolidated balance sheet until the loan is repaid. We generally have no obligation to pay principal and interest under these liabilities, and the gross presentation of loan participations sold does not impact our stockholders’ equity or net income. The following table details our loan participations sold ($ in thousands): December 31, 2023 Loan Participations Sold Count Principal Balance Book Value (1) Wtd. Avg. Yield/Cost (2) Term (3) Senior Participations Loan Participation 1 $ 236,797 $ 236,499 + 3.22 % March 2027 Total Loan 1 295,996 294,783 + 4.86 % March 2027 Junior Participations Loan Participation 2 $ 100,924 $ 100,680 + 7.50 % February 2026 Total Loan 2 401,569 399,603 + 4.75 % February 2026 Total Loan Participation (4) 3 $ 337,721 $ 337,179 Total Loan 3 $ 697,565 $ 694,386 December 31, 2022 Loan Participations Sold Count Principal Balance Book Value (1) Wtd. Avg. Yield/Cost (2) Term (3) Senior Participations Loan Participation 1 $ 224,744 $ 224,232 + 3.22 % March 2027 Total Loan 1 280,930 278,843 + 4.86 % March 2027 Total Loan Participation (4) 1 $ 224,744 $ 224,232 Total Loan 1 $ 280,930 $ 278,843 (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. In addition to cash coupon, yield/cost includes the amortization of deferred fees and financing costs. (3) The term is determined based on the maximum maturity of the loan, assuming all extension options are exercised by the borrower. Our loan participations sold are inherently non-recourse and term-matched to the corresponding loan. (4) During the year ended December 31, 2023, we recorded $ 20.6 million of interest expense related to our loan participations sold. During the year ended December 31, 2022 we recorded $ 7.9 million of interest expense related to our loan participations sold. F-33 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) 9. TERM LOANS, NET As of December 31, 2023, the following senior term loan facilities, or Term Loans, were outstanding ($ in thousands): Term Loans Face Value Interest Rate (1) All-in Cost (1)(2) Maturity B-1 Term Loan $ 910,852 + 2.36 % + 2.65 % April 23, 2026 B-3 Term Loan 410,942 + 2.86 % + 3.54 % April 23, 2026 B-4 Term Loan 813,427 + 3.50 % + 4.11 % May 9, 2029 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 %. The Term Loans are indexed to one-month SOFR. (2) Includes issue discount and transaction expenses that are amortized through interest expense over the life of the Term Loans. The Term Loans are partially amortizing, with an amount equal to 1.0 % per annum of the aggregate initial principal balance due in quarterly installments. The issue discount and transaction expenses on the B-1 Term Loan were $ 3.1 million and $ 12.6 million, respectively. The issue discount and transaction expenses of the B-3 Term Loan were $ 9.6 million and $ 5.4 million, respectively. The issue discount and transaction expenses of the B-4 Term Loan were $ 17.3 million and $ 10.3 million, respectively. 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. The following table details the net book value of our Term Loans on our consolidated balance sheets ($ in thousands): December 31, 2023 December 31, 2022 Face value $ 2,135,221 $ 2,157,218 Deferred financing costs and unamortized discount ( 33,589 ) ( 42,669 ) Net book value $ 2,101,632 $ 2,114,549 The Term Loans contain the financial covenant that our indebtedness shall not exceed 83.33 % of our total assets. 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. 10. SENIOR SECURED NOTES, NET 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) Maturity Senior Secured Notes $ 366,090 3.75 % 4.02 % January 15, 2027 (1) Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes. 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. 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 %. This resulted in a gain on extinguishment of debt of $ 4.6 million during the year ended December 31, 2023. There was no repurchase activity during the year ended December 31, 2022. F-34 Blackstone Mortgage Trust, Inc. 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): December 31, 2023 December 31, 2022 Face value $ 366,090 $ 400,000 Deferred financing costs ( 3,327 ) ( 4,834 ) Net book value $ 362,763 $ 395,166 The Senior Secured Notes contain the financial covenant that our indebtedness shall not exceed 83.33 % of our total assets. As of December 31, 2023 and 2022, we were in compliance with this covenant. Under certain circumstances, we may, at our option, release all of the collateral securing our Senior Secured Notes, in which case we would also be required to maintain a total unencumbered assets to total unsecured indebtedness ratio of 1.20 or greater. This covenant is not currently in effect as the collateral securing our Senior Secured Notes has not been released. 11. CONVERTIBLE NOTES, NET 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): Convertible Notes Issuance Face Value Interest Rate All-in Cost (1) Conversion Price (2) Maturity 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. (2) Represents the price of class A common stock per share based on a conversion rate of 27.5702 for the Convertible Notes. The conversion rate represents the number of shares of class A common stock issuable per $ 1,000 principal amount of Convertible Notes. The cumulative dividend threshold has not been exceeded as of December 31, 2023. Other than as provided by the optional redemption provisions with respect to our Convertible Notes, we may not redeem the Convertible Notes prior to maturity. The Convertible Notes are convertible at the holders’ option into shares of our class A common stock, only under specific circumstances, prior to the close of business on December 14, 2026 at the applicable conversion rate in effect on the conversion date. Thereafter, the Convertible Notes are convertible at the option of the holder at any time until the second scheduled trading day immediately preceding the maturity date. The last reported sale price of our class A common stock of $ 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): December 31, 2023 December 31, 2022 Face value $ 300,000 $ 520,000 Deferred financing costs and unamortized discount ( 4,153 ) ( 5,743 ) Net book value $ 295,847 $ 514,257 F-35 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) The following table details our interest expense related to the Convertible Notes ($ in thousands): Year Ended December 31, 2023 2022 2021 Cash coupon $ 18,639 $ 28,859 $ 28,059 Discount and issuance cost amortization 1,589 2,853 3,486 Total interest expense $ 20,228 $ 31,712 $ 31,545 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. 12. DERIVATIVE FINANCIAL INSTRUMENTS The objective of our use of derivative financial instruments is to minimize the risks and/or costs associated with our investments and/or financing transactions. These derivatives may or may not qualify as net investment, cash flow, or fair value hedges under the hedge accounting requirements of ASC 815 – “Derivatives and Hedging.” Derivatives not designated as hedges are not speculative and are used to manage our exposure to interest rate movements and other identified risks. Refer to Note 2 for additional discussion of the accounting for designated and non-designated hedges. The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these contractual arrangements do not perform as agreed. To mitigate this risk, we only enter into derivative financial instruments with counterparties that have appropriate credit ratings and are major financial institutions with which we and our affiliates also have other financial relationships. Net Investment Hedges of Foreign Currency Risk Certain of our international investments expose us to fluctuations in foreign interest rates and currency exchange rates. These fluctuations may impact the value of our cash receipts and payments in terms of our functional currency, the U.S. dollar. We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S. dollar. Designated Hedges of Foreign Currency Risk The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amounts in thousands): December 31, 2023 December 31, 2022 Foreign Currency Derivatives Number of Instruments Notional Amount Foreign Currency Derivatives Number of Instruments Notional Amount Buy USD / Sell SEK Forward 2 kr 973,246 Buy USD / Sell SEK Forward 2 kr 1,003,626 Buy USD / Sell GBP Forward 7 £ 696,919 Buy USD / Sell EUR Forward 8 € 722,311 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. 195,674 Buy USD / Sell DKK Forward 3 kr. 195,019 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 F-36 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) Non-designated Hedges of Foreign Currency Risk The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign currency risk (notional amounts in thousands): December 31, 2023 December 31, 2022 Non-designated Hedges Number of Instruments Notional Amount Non-designated Hedges Number of Instruments Notional Amount Buy SEK / Sell USD Forward 1 kr 30,800 Buy GBP / Sell USD Forward 2 £ 109,076 Buy USD / Sell SEK Forward 1 kr 30,800 Buy USD / Sell GBP Forward 2 £ 109,076 Buy GBP / Sell USD Forward 2 £ 26,900 Buy AUD / Sell USD Forward 1 A$ 23,600 Buy USD / Sell GBP Forward 2 £ 26,900 Buy USD / Sell AUD Forward 1 A$ 23,600 Buy AUD / Sell USD Forward 1 A$ 7,600 Buy USD / Sell AUD Forward 1 A$ 7,600 Cash Flow Hedges of Interest Rate Risk Certain of our financing transactions expose us to a fixed versus floating rate mismatch between our assets and liabilities. 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. The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (notional amount in thousands): December 31, 2023 Interest Rate Derivatives Number of Instruments Notional Amount Fixed Rate Index Wtd. Avg. Maturity (Years) Interest Rate Swaps 1 $ 229,858 4.60 % SOFR 0.9 No cash flow hedges of interest rate risk were outstanding as of December 31, 2022. 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. 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. F-37 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) 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): Increase (Decrease) to Net Interest Income Recognized from Derivatives Year Ended December 31, Derivatives in Hedging Relationships Location of Income (Expense) Recognized 2023 2022 2021 Designated Hedges Interest Income (1) $ 25,439 $ 19,910 $ 7,296 Designated Hedges Interest Expense (2) 893 — — Non-Designated Hedges Interest Income (1) 65 ( 62 ) ( 342 ) Non-Designated Hedges Interest Expense (3) ( 71 ) 100 ( 6,911 ) Total $ 26,326 $ 19,948 $ 43 (1) Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and prevailing US interest rates. These forward contracts effectively convert the foreign currency rate exposure for such investments to USD-equivalent interest rates. (2) Represents the financial statement impact of proceeds (payments) from periodic settlements related to our interest rate swap, which is designated as a cash flow hedge. (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 The following table summarizes the fair value of our derivative financial instruments ($ in thousands): Fair Value of Derivatives in an Asset Position (1) as of Fair Value of Derivatives in a Liability Position (2) as of December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Derivatives designated as hedging instruments: Foreign exchange contracts $ 30 $ 501 $ 92,922 $ 111,573 Interest rate derivatives 317 — — — Total derivatives designated as hedging instruments $ 347 $ 501 $ 92,922 $ 111,573 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 1,543 $ 6,848 $ 1,895 $ 8,092 Interest rate derivatives — — — — 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 (1) Included in other assets in our consolidated balance sheets. (2) Included in other liabilities in our consolidated balance sheets. F-38 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) The following table presents the effect of our derivative financial instruments on our consolidated statements of comprehensive income and operations ($ in thousands): Derivatives in Hedging Relationships Amount of (Loss) Gain Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Year Ended December 31, Year Ended December 31, 2023 2022 2021 2023 2022 2021 Net Investment Hedges Foreign exchange contracts (1) $ ( 76,224 ) $ 173,362 $ 81,603 Interest Expense $ — $ — $ — Cash Flow Hedges Interest rate derivatives 1,210 — ( 5 ) Interest Expense (2) 893 ( 4 ) ( 10 ) Total $ ( 75,014 ) $ 173,362 $ 81,598 $ 893 $ ( 4 ) $ ( 10 ) (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. 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. (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. 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 We have entered into agreements with certain of our derivative counterparties that contain provisions where if we were to default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, we may also be declared in default on our derivative obligations. In addition, certain of our agreements with our derivative counterparties require that we post collateral to secure net liability positions. As of December 31, 2023, we were in a net liability position with our counterparties. 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. As of December 31, 2022 we had collateral posted with our counterparties of $ 103.1 million. 13. EQUITY Stock and Stock Equivalents Authorized Capital As of December 31, 2023, we had the authority to issue up to 500,000,000 shares of stock, consisting of 400,000,000 shares of class A common stock and 100,000,000 shares of preferred stock. Subject to applicable NYSE listing requirements, our board of directors is authorized to cause us to issue additional shares of authorized stock without stockholder approval. In addition, to the extent not issued, currently authorized stock may be reclassified between class A common stock and preferred stock. 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 Holders of shares of our class A common stock are entitled to vote on all matters submitted to a vote of stockholders and are entitled to receive dividends authorized by our board of directors and declared by us, in all cases subject to the rights of the holders of shares of outstanding preferred stock, if any. F-39 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) We did not issue any class A common stock in underwritten public offerings during the year ended December 31, 2023. The following table details our issuance of class A common stock during the years ended December 31, 2022 and 2021. ($ in thousands, except per share data): Class A Common Stock Offerings 2022 (1) 2021 (2) Shares issued 2,303,469 20,361,408 Gross / net issue price per share (3) 31.23 / 30.92 31.64 / 31.37 Net proceeds (4) $ 70,651 $ 638,005 (1) Represents shares issued under our at-the-market program. (2) Issuance includes 296,901 shares issued under our at-the-market program, with a weighted-average gross share issue price of $ 33.67 . (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. We also issue restricted class A common stock under our stock-based incentive plans. Refer to Note 16 for additional discussion of these long-term incentive plans. In addition to our class A common stock, we also issue deferred stock units to certain members of our board of directors for services rendered. These deferred stock units are non-voting, but carry the right to receive dividends in the form of additional deferred stock units in an amount equivalent to the cash dividends paid to holders of shares of class A common stock. The following table details the movement in our outstanding shares of class A common stock, including restricted class A common stock and deferred stock units: Year Ended December 31, Common Stock Outstanding (1) 2023 2022 2021 Beginning balance 172,106,593 168,543,370 147,086,722 Issuance of class A common stock (2) 6,587 2,311,711 20,363,592 Issuance of restricted class A common stock, net (3)(4) 1,402,329 1,204,476 1,036,175 Issuance of deferred stock units 53,888 47,036 56,881 Ending balance 173,569,397 172,106,593 168,543,370 (1) Includes 359,464 , 410,608 , and 363,572 deferred stock units held by members of our board of directors as of December 31, 2023, 2022, and 2021, respectively. (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. (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. (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 We have adopted a dividend reinvestment and direct stock purchase plan under which we registered and reserved for issuance, in the aggregate, 10,000,000 shares of class A common stock. Under the dividend reinvestment component of this plan, our class A common stockholders can designate all or a portion of their cash dividends to be reinvested in additional shares of class A common stock. The direct stock purchase component allows stockholders and new investors, subject to our approval, to purchase shares of class A common stock directly from us. During the 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. 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. F-40 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) At the Market Stock Offering Program As of December 31, 2023, we are party to seven equity distribution agreements, or ATM Agreements, pursuant to which we may sell, from time to time, up to an aggregate sales price of $ 699.1 million of our class A common stock. Sales of class A common stock made pursuant to our ATM Agreements may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Actual sales depend on a variety of factors including market conditions, the trading price of our class A common stock, our capital needs, and our determination of the appropriate sources of funding to meet such needs. During the 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. 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. Dividends We generally intend to distribute substantially all of our taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to our stockholders each year to comply with the REIT provisions of the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. Our dividend policy remains subject to revision at the discretion of our board of directors. All distributions will be made at the discretion of our board of directors and will depend upon our taxable income, our financial condition, our maintenance of REIT status, applicable law, and other factors as our board of directors deems relevant. On December 15, 2023, we declared a dividend of $ 0.62 per share, or $ 107.4 million in aggregate, that was paid on January 16, 2024 to stockholders of record as of December 29, 2023. The following table details our dividend activity ($ in thousands, except per share data): Year Ended December 31, 2023 2022 2021 Dividends declared per share of common stock $ 2.48 $ 2.48 $ 2.48 Percent taxable as ordinary dividends 100.00 % 100.00 % 100.00 % Percent taxable as capital gain dividends — % — % — % 100.00 % 100.00 % 100.00 % Class A common stock dividends declared $ 427,862 $ 423,568 $ 383,929 Deferred stock unit dividends declared 878 945 812 $ 428,740 $ 424,513 $ 384,741 Earnings Per Share We calculate our basic and diluted earnings per share using the two-class method for all periods presented as the unvested shares of our restricted class A common stock qualify as participating securities, as defined by GAAP. These restricted shares have the same rights as our other shares of class A common stock, including participating in any dividends, and therefore have been included in our basic and diluted net income per share calculation. The shares issuable under our Convertible Notes are included in dilutive earnings per share using the if-converted method. F-41 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) The following table sets forth the calculation of basic and diluted net income per share of class A common stock based on the weighted-average of both restricted and unrestricted class A common stock outstanding ($ in thousands, except per share data): Year Ended December 31, 2023 2022 2021 Net income (1) $ 246,555 $ 248,642 $ 419,193 Weighted-average shares outstanding, basic and diluted (2) 172,672,038 170,631,410 151,521,941 Per share amount, basic and diluted (2) $ 1.43 $ 1.46 $ 2.77 (1) Represents net income attributable to Blackstone Mortgage Trust. (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. 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): 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. Refer to Note 11 for further discussion of our convertible notes. Other Balance Sheet Items Accumulated Other Comprehensive Income As of December 31, 2023, total accumulated other comprehensive income was $ 9.5 million, primarily representing $ 183.9 million of net realized and unrealized gains related to changes in the fair value of derivative instruments offset by $ 174.4 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign currencies. As of December 31, 2022, total accumulated other comprehensive income was $ 10.0 million, primarily representing $ 259.8 million of net realized and unrealized gains related to changes in the fair value of derivative instruments offset by $ 249.8 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign currencies. Non-Controlling Interests The non-controlling interests included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are not owned by us. A portion of our Multifamily Joint Venture’s consolidated equity and results of operations are allocated to these non-controlling interests based on their pro rata ownership of our Multifamily Joint Venture. As of December 31, 2023, our Multifamily Joint Venture’s total equity was $ 132.0 million, of which $ 112.2 million was owned by us, and $ 19.8 million was allocated to non-controlling interests. As of December 31, 2022, our Multifamily Joint Venture’s total equity was $ 169.4 million, of which $ 144.0 million was owned by us, and $ 25.4 million was allocated to non-controlling interests. 14. OTHER EXPENSES Our other expenses consist of the management and incentive fees we pay to our Manager and our general and administrative expenses. Management and Incentive Fees Pursuant to a management agreement between our Manager and us, or our Management Agreement, our Manager earns a base management fee in an amount equal to 1.50 % per annum multiplied by our outstanding equity balance, as defined in the Management Agreement. In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i) 20 % and (ii) the excess of (a) our Core Earnings (as defined in our Management Agreement) for the previous 12-month period over (b) an amount equal to 7.00 % per annum multiplied by our outstanding Equity, provided that our Core Earnings over the prior three-year period is greater than zero . Core Earnings, as defined in our Management Agreement, is generally equal to our GAAP net income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and F-42 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) 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. 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. General and Administrative Expenses General and administrative expenses consisted of the following ($ in thousands): Year Ended December 31, 2023 2022 2021 Professional services $ 13,269 $ 10,924 $ 7,759 Operating and other costs 7,219 7,855 3,762 Subtotal (1) 20,488 18,779 11,521 Non-cash compensation expenses Restricted class A common stock earned 29,975 32,724 31,052 Director stock-based compensation 680 690 595 Subtotal 30,655 33,414 31,647 Total general and administrative expenses $ 51,143 $ 52,193 $ 43,168 (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. 15. INCOME TAXES We have elected to be taxed as a REIT under the Internal Revenue Code for U.S. federal income tax purposes. We generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings. To the extent that we satisfy this distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws. Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Internal Revenue Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to the nature of our assets and the sources of our income. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full taxable years. As of December 31, 2023 and 2022, we were in compliance with all REIT requirements. Securitization transactions could result in the creation of taxable mortgage pools for federal income tax purposes. As a REIT, so long as we own 100% of the equity interests in a taxable mortgage pool, we generally would not be adversely affected by the characterization of the securitization as a taxable mortgage pool. Certain categories of stockholders, however, such as foreign stockholders eligible for treaty or other benefits, stockholders with net operating losses, and certain tax-exempt stockholders that are subject to unrelated business income tax, or UBTI, could be subject to increased taxes on a portion of their dividend income from us that is attributable to the taxable mortgage pool. We have not made UBTI distributions to our common stockholders and do not intend to make such UBTI distributions in the future. F-43 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) 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. 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. We have net operating losses, or NOLs, generated by our predecessor business that may be carried forward and utilized in current or future periods. As a result of our issuance of 25,875,000 shares of class A common stock in May 2013, the availability of our NOLs is generally limited to $ 2.0 million per annum by change of control provisions promulgated by the Internal Revenue Service with respect to the ownership of Blackstone Mortgage Trust. As of 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. Previously, we recorded a full valuation allowance against such NOLs as we expected that they would expire unutilized. However, although uncertain, we may utilize a portion of NOLs prior to expiration. We do not expect the utilization of NOLs to have a material impact on our consolidated financial statements. We have recorded a full valuation allowance against such NOLs as it is probable that they will expire unutilized. As of December 31, 2023, tax years 2020 through 2023 remain subject to examination by taxing authorities. 16. STOCK-BASED INCENTIVE PLANS We are externally managed by our Manager and do not currently have any employees. However, as of December 31, 2023, our Manager, certain individuals employed by an affiliate of our Manager, and certain members of our board of directors were compensated, in part, through our issuance of stock-based instruments. Under our two current stock incentive plans, a maximum of 10,400,000 shares of our class A common stock may be issued to our Manager, our directors and officers, and certain employees of affiliates of our Manager. As of December 31, 2023, there were 7,754,648 shares available under our current stock incentive plans. 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. 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. The following table details the movement in our outstanding shares of restricted class A common stock and the weighted-average grant date fair value per share: Restricted Class A Common Stock Weighted-Average Grant Date Fair Value Per Share Balance as of December 31, 2021 1,706,121 $ 31.19 Granted 1,244,131 26.92 Vested ( 1,026,813 ) 32.06 Forfeited ( 39,655 ) 30.76 Balance as of December 31, 2022 1,883,784 $ 27.90 Granted 1,417,806 22.07 Vested ( 1,105,932 ) 27.35 Forfeited ( 15,477 ) 24.55 Balance as of December 31, 2023 2,180,181 $ 24.41 These shares generally vest in installments over a period of three years , pursuant to the terms of the respective award agreements and the terms of our current benefit plans. The 2,180,181 shares of restricted class A common stock outstanding as of December 31, 2023 will vest as follows: 1,148,236 shares will vest in 2024; 727,820 shares will vest in 2025; 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. This cost is expected to be recognized over a weighted-average period of 1.2 years from December 31, 2023. F-44 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) 17. FAIR VALUES Assets and Liabilities Measured at Fair Value The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands): December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Derivatives $ — $ 1,890 $ — $ 1,890 $ — $ 7,349 $ — $ 7,349 Liabilities Derivatives $ — $ 94,817 $ — $ 94,817 $ — $ 119,665 $ — $ 119,665 Refer to Note 2 for further discussion regarding fair value measurement. Fair Value of Financial Instruments As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized at fair value in the statement of financial position, for which it is practicable to estimate that value. The following table details the book value, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands): December 31, 2023 December 31, 2022 Book Value Face Amount Fair Value Book Value Face Amount Fair Value Financial assets Cash and cash equivalents $ 350,014 $ 350,014 $ 350,014 $ 291,340 $ 291,340 $ 291,340 Loans receivable, net 23,210,076 23,923,719 23,015,737 24,691,743 25,160,343 24,445,042 Financial liabilities Secured debt, net 12,683,095 12,697,058 12,425,609 13,528,164 13,549,748 13,121,306 Securitized debt obligations, net 2,505,417 2,507,514 2,323,441 2,664,010 2,673,541 2,597,377 Asset-specific debt, net 1,000,210 1,004,097 992,357 942,503 950,278 934,815 Loan participations sold, net 337,179 337,721 333,745 224,232 224,744 217,717 Secured term loans, net 2,101,632 2,135,221 2,102,950 2,114,549 2,157,218 2,103,943 Senior secured notes, net 362,763 366,090 327,081 395,166 400,000 343,665 Convertible notes, net 295,847 300,000 272,076 514,257 520,000 478,232 Estimates of fair value for cash and cash equivalents and convertible notes are measured using observable, quoted market prices, or Level 1 inputs. Estimates of fair value for securitized debt obligations, the Term Loans, and the Senior Secured notes are measured using observable, quoted market prices, in inactive markets, or Level 2 inputs. All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding fair value measurement of certain of our assets and liabilities. 18. VARIABLE INTEREST ENTITIES We have financed a portion of our loans through the CLOs, all of which are VIEs. We are the primary beneficiary of, and therefore consolidate, the CLOs on our balance sheet as we (i) control the relevant interests of the CLOs that give us power to direct the activities that most significantly affect the CLOs, and (ii) have the right to receive benefits and obligation to absorb losses of the CLOs through the subordinate interests we own. F-45 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) The following table details the assets and liabilities of our consolidated VIEs ($ in thousands): December 31, 2023 December 31, 2022 Assets Loans receivable $ 3,061,278 $ 3,317,316 Current expected credit loss reserve ( 183,508 ) ( 93,396 ) Loans receivable, net 2,877,770 3,223,920 Other assets 103,692 15,995 Total assets $ 2,981,462 $ 3,239,915 Liabilities Securitized debt obligations, net $ 2,505,417 $ 2,664,010 Other liabilities 8,101 7,234 Total liabilities $ 2,513,518 $ 2,671,244 Assets held by these VIEs are restricted and can be used only to settle obligations of the VIEs, including the subordinate interests owned by us. The liabilities of these VIEs are non-recourse to us and can only be satisfied from the assets of the VIEs. The consolidation of these VIEs results in an increase in our gross assets, liabilities, interest income and interest expense, however it does not affect our stockholders’ equity or net income. We are not obligated to provide, have not provided, and do not intend to provide financial support to these consolidated VIEs. 19. TRANSACTIONS WITH RELATED PARTIES We are managed by our Manager pursuant to the Management Agreement, the current term of which expires on December 19, 2024, and will be automatically renewed for a one-year term upon such date and each anniversary thereafter unless earlier terminated. As of December 31, 2023 and 2022, our consolidated balance sheets included $ 26.3 million and $ 33.8 million of accrued management and incentive fees payable to our Manager, respectively. 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. 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. 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. 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. Additionally, our directors held 359,464 of deferred stock units as of December 31, 2023. CT Investment Management Co., LLC, or CTIMCO, an affiliate of our Manager, is the special servicer of the CLOs. CTIMCO did not earn any special servicing fees related to the CLOs during the years ended December 31, 2023, 2022, and 2021. 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. There were no similar transactions during the years ended December 31, 2023 and 2022. 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 F-46 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) services, and management services. These services are provided on an allocated cost basis. Additionally, we have engaged an affiliate of our Manager to provide internal audit services. 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. Affiliates of our Manager own an interest in the controlling entity of BTIG, LLC, or BTIG. We utilized BTIG as a broker to engage third-parties to facilitate our repurchase of our Senior Secured Notes. During the year ended December 31, 2023, we repurchased $ 500,000 of our Senior Secured Notes utilizing BTIG as a broker. BTIG received aggregate fees of $ 1,000 in such capacity. The fees were on terms equivalent to those of other brokers under similar arrangements. 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. Additionally, we engaged BTIG as a sales agent to sell shares of our class A common stock under our ATM Agreements. 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. BTIG did not sell any shares under our ATM agreements in the years ended December 31, 2023 or 2021. 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. 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. 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). The terms of the modification were negotiated by our third-party co-lender, and we agreed to the modification on such terms. 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. 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. The senior loan terms were negotiated by a third-party without our involvement and our 24.5 % interest in the senior loan was made on such market terms. In the second quarter of 2022, we co-originated £ 250.0 million of an aggregate £ 500.0 million senior loan to an unaffiliated third-party. A Blackstone-advised investment vehicle co-originated the additional pari passu £ 250.0 million of the loan. 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. In the fourth quarter of 2021, we issued $ 400.0 million aggregate principal amount of 3.75 % Senior Secured Notes. The Senior Secured Notes were issued at par and have a maturity date of January 15, 2027. Blackstone Securities Partners L.P., an affiliate of our Manager, participated in the offering of the Senior Secured Notes and received compensation of $ 400,000 in connection therewith. This transaction was on terms equivalent to those of unaffiliated parties. 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. Blackstone Securities Partners L.P., an affiliate of our Manager, was engaged as a book-runner for the transaction and received aggregate fees of $ 350,000 in such capacity. Both of these transactions were on terms equivalent to those of unaffiliated parties. 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. Blackstone Securities Partners L.P., an affiliate of our Manager, was engaged as a book-runner for the transaction and received aggregate fees of $ 200,000 in such capacity. Both of these transactions were on terms equivalent to those of unaffiliated parties. F-47 Blackstone Mortgage Trust, Inc. Notes to Consolidated Financial Statements (continued) 20. COMMITMENTS AND CONTINGENCIES Unfunded Commitments Under Loans Receivable 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. The unfunded loan commitments comprise funding for capital expenditures and construction, leasing costs, and interest and carry costs. Loan funding commitments are generally subject to certain conditions, including, without limitation, the progress of capital projects, leasing, and cash flows at the properties securing our loans. Therefore, the exact timing and amounts of such future loan fundings are uncertain and will depend on the current and future performance of the underlying collateral assets. We expect to fund our loan commitments over the remaining term of the related loans, which have a weighted-average future funding period of 2.6 years. Principal Debt Repayments Our contractual principal debt repayments as of December 31, 2023 were as follows ($ in thousands): Year Secured Debt (1) Asset-Specific Debt (1) Term Loans (2) Senior Secured Notes Convertible Notes (3) Total (4) 2024 $ 2,445,576 $ — $ 21,997 $ — $ — $ 2,467,573 2025 1,577,980 825,687 21,997 — — 2,425,664 2026 4,298,806 — 1,302,575 — — 5,601,381 2027 3,153,609 — 8,258 366,090 300,000 3,827,957 2028 500,105 — 8,256 — — 508,361 Thereafter 720,982 178,410 772,138 — — 1,671,530 Total obligation $ 12,697,058 $ 1,004,097 $ 2,135,221 $ 366,090 $ 300,000 $ 16,502,466 (1) Our secured debt and asset-specific debt agreements are generally term-matched to their underlying collateral. Therefore, the allocation of payments under such agreements is generally allocated based on the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. In limited instances, the maturity date of the respective debt agreement is used. (2) The Term Loans are partially amortizing, with an amount equal to 1.0 % per annum of the initial principal balance due in quarterly installments. Refer to Note 9 for further details on our Term Loans. (3) Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer to Note 11 for further details on our Convertible Notes. (4) Total does not include $ 2.5 billion of consolidated securitized debt obligations, $ 1.1 billion of non-consolidated senior interests, and $ 337.7 million of loan participations sold, as the satisfaction of these liabilities will not require cash outlays from us. Board of Directors’ Compensation 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. 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. Litigation From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of December 31, 2023, we were not involved in any material legal proceedings. F-48 Blackstone Mortgage Trust, Inc. Schedule IV – Mortgage Loans on Real Estate As of December 31, 2023 (in thousands) Type of Loan/Borrower Description / Location Interest Payment Rates (2) Maximum Maturity Date (3) Periodic Payment Terms (4) Prior Liens (5) Face Amount of Loans Carrying Amount of Loans (6) 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 Borrower A Office / New York + 4.29 % 2025 I/O $ — $ 1,156,396 $ 1,154,771 $ — Borrower B Mixed-Use / Ireland + 3.03 % 2024 I/O — 999,907 995,570 — Borrower C Hospitality / Australia + 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 % 2024 – 2028 I/O — 6,507,693 6,455,942 — Senior Mortgage Loans Multifamily / Diversified + 1.71 % – 5.45 % Fixed 1.50 % 2024 – 2029 I/O & P/I — 5,882,506 5,859,896 — Senior Mortgage Loans Hospitality / Diversified + 2.31 % – 6.07 % Fixed 7.90 % 2024 – 2027 I/O & P/I — 3,230,471 3,205,185 — Senior Mortgage Loans Mixed-Use / Diversified + 2.76 % – 4.60 % 2024 – 2029 I/O — 1,864,832 1,855,982 140,000 Senior Mortgage Loans Industrial / Diversified + 2.71 % – 4.60 % 2025 – 2027 I/O & P/I — 1,647,704 1,637,876 — Senior Mortgage Loans Other / Diversified + 3.25 % – 5.04 % 2024 – 2028 I/O — 641,703 640,913 — Senior Mortgage Loans Retail / Diversified + 2.36 % – 3.33 % 2024 – 2027 I/O & P/I — 458,495 456,993 — Senior Mortgage Loans Life Sciences/Studio / Diversified + 2.87 % – 4.50 % 2024 – 2027 I/O — 343,430 341,918 — — 20,576,834 20,454,705 140,000 Total senior mortgage loans $ — $ 23,634,365 $ 23,499,645 $ 140,000 Subordinate Loans (7) Subordinate loans less than 3% of the carrying amount of total loans Subordinate loans Various / Diversified + 3.22 % – 4.50 % 2025 – 2028 I/O 1,148,233 289,354 287,367 — Total subordinate loans $ 1,148,233 $ 289,354 $ 287,367 $ 140,000 Total loans $ 1,148,233 $ 23,923,719 $ 23,787,012 $ 140,000 CECL reserve (8) ( 576,936 ) Total loans, net $ 23,210,076 (1) Includes senior mortgages and similar credit quality loans, including related contiguous subordinate loans, and pari passu participations in senior mortgage loans. (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. (4) I/O = interest only, P/I = principal and interest. (5) Represents only third party liens. (6) The tax basis of the loans included above is $ 23.5 billion as of December 31, 2023. (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. (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. These CECL reserves reflect certain impaired loans in our portfolio, as well as an additional increase in our CECL reserves due to macroeconomic conditions. Refer to Note 3 for additional information on our CECL reserves. S-1 Blackstone Mortgage Trust, Inc. Notes to Schedule IV As of December 31, 2023 (in thousands) 1. Reconciliation of Mortgage Loans on Real Estate: The following table reconciles mortgage loans on real estate for the years ended: 2023 2022 2021 Balance at January 1, $ 25,017,880 $ 22,003,017 $ 16,572,715 Additions during period: Loan fundings 1,344,130 6,810,218 12,550,463 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: Loan repayments, sales, and cost-recovery proceeds ( 2,924,401 ) ( 3,168,155 ) ( 6,733,105 ) Principal charge-offs — — ( 14,427 ) Unrealized gain (loss) on foreign currency translation 286,102 ( 632,902 ) ( 297,894 ) Deferred fees and other items ( 17,992 ) ( 74,930 ) ( 143,002 ) Balance at December 31, $ 23,787,012 $ 25,017,880 $ 22,003,017 CECL reserve ( 576,936 ) ( 326,137 ) ( 124,679 ) Net balance at December 31, $ 23,210,076 $ 24,691,743 $ 21,878,338 S-2