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Item 7. Management’s Discussion and Analysis

2025-02-12 compared with 2024-02-14 · 406 added, 321 removed, 588 unchanged (55% of the section changed)

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Item 1A, “Risk Factors” in this Annual Report on Form 10-K.

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.

Blackstone Mortgage Trust is a real estate finance company that originates, acquires, and manages senior loans and other debt or credit-oriented investments collateralized by or relating to commercial real estate in North America, Europe, and Australia.

Our portfolio is composed primarily of senior loans secured by high-quality, institutional assets located in major markets, and sponsored by experienced, well-capitalized real estate investment owners and operators.

We finance our investments in a variety of ways, including borrowing under our credit facilities, issuing collateralized loan obligations, or CLOs, or single-asset securitizations, asset-specific financings, syndicating senior loan participations, and corporate financing, depending on our view of the most prudent financing option available for each of our investments.

We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.”

We benefit from the deep knowledge, experience and information advantages of our Manager, which is a part of Blackstone’s real estate platform.

Blackstone has built the world's preeminent global real estate business, with a proven track record of successfully navigating market cycles and emerging stronger through periods of volatility.

Blackstone’s real estate group is the largest owner of commercial real estate globally with over 12,500 commercial assets and a proven track record of successfully navigating market cycles and emerging stronger through periods of volatility.

The market-leading real estate expertise derived from the strength of the Blackstone platform deeply informs our credit and underwriting process, and we believe gives us the tools to expertly manage the assets in our portfolio and work with our borrowers throughout periods of economic stress and uncertainty.

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We are organized as a holding company and conduct our business primarily through our various subsidiaries.

Recent Developments

Macroeconomic Environment

The year ended December 31, 2023 has been characterized by continued volatility in global markets, driven by investor concerns over inflation, rising interest rates, slowing economic growth, political and regulatory uncertainty and geopolitical conditions.

Events affecting financial institutions during the year also contributed to volatility in global markets and diminished liquidity and credit availability.

During 2023, inflation began to moderate as a result of the monetary policy tightening actions taken by central banks, including raising interest rates.

While it is anticipated that central banks may begin to lower interest rates in 2024, interest rates may remain at or near recent highs, which creates further uncertainty for the economy and for our borrowers.

Although our business model is such that higher interest rates will, all else equal, correlate to higher net income, interest rates remaining elevated for an extended period of time may adversely affect our existing borrowers and lead to non-performance, as higher costs may dampen consumer spending and slow corporate profit growth, which may negatively impact the collateral underlying certain of our loans.

Additionally, higher interest rates could adversely affect commercial real estate property values.

It remains difficult to predict the full impact of recent events and any future changes in interest rates or inflation.

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.

Refer to “Part I.

Risk Factors—Risks Related to Our Lending and Investment Activities—The transition away from reference rates and the use of alternative replacement reference rates may adversely affect net interest income related to our loans and investments or otherwise adversely affect our results of operations, cash flows and the market value of our investments.” of this Annual Report on Form 10-K.

2024 Highlights

Operating results:

• Net income of $246.6 million, or $1.43 per share, and Distributable Earnings of $526.3 million, or $3.05 per share, with dividends declared of $427.9 million, or $2.48 per share.

During the year we had dividend coverage of 58% and 123% based on our GAAP net income and Distributable Earnings, respectively.

Net income includes a $249.8 million increase to the current expected credit loss, or CECL, reserve that is excluded from Distributable Earnings, as further described below.

• GAAP net loss of $204.1 million, or $1.17 per share, Distributable Earnings were a loss of $5.5 million, or $0.03 per share, and Distributable Earnings prior to charge-offs was $372.8 million, or $2.15 per share, with dividends declared of $377.8 million, or $2.18 per share.

• Book value per share of $21.87 as of December 31, 2024, which is net of cumulative CECL reserves of $4.31 per share.

Loan portfolio:

• Portfolio of 178 investments as of December 31, 2023, with a weighted-average origination loan-to-value ratio of 63.6% and weighted-average all-in yield of + 3.66%.

• During the year we had $3.8 billion of loan repayments and sales at an average of 99.99% of par, including $962.7 million of office loans.

• Loan originations or acquisitions of $431.9 million.

• Portfolio of 130 loans as of December 31, 2024, with a weighted-average origination loan-to-value ratio of 62.6% and weighted-average all-in yield of + 3.76%, excluding impaired, cost-recovery, and non-accrual loans.

• During the year we realized $5.2 billion of loan repayments and sales, including $2.0 billion of office loans.

• 93% of loans, based on net loan exposure, are performing as of December 31, 2024.

99.9% of interest income recognized during the year was paid current.

No income has been recorded on our non-performing loans subsequent to determining that they were impaired.

• Resolved $1.6 billion of impaired loans across 16 transactions during the year.

Generated $34.5 million of incremental book value as aggregate charge-offs of CECL reserves outperformed reserve levels.

Capital markets, financing, and liquidity:

• As of December 31, 2023, we had total liquidity of $1.7 billion with no corporate debt maturities until 2026.

• During the year ended December 31, 2023, we (i) repaid the aggregate $220.0 million principal amount of our 4.75% convertible senior notes due 2023 at maturity, (ii) repurchased an aggregate principal amount of $33.9 million of our Senior Secured Notes at a weighted-average price of 85%, resulting in a gain on extinguishment of debt of $4.6 million, and (iii) repaid a net $1.2 billion under our portfolio financings, resulting in an aggregate $1.4 billion reduction in our portfolio and corporate financings during the year.

This resulted in a decrease in our debt-to-equity ratio to 3.7x from 3.8x.

• We maintained the cost of our portfolio financings throughout the year, with a weighted-average spread of +1.89% on our $12.7 billion of secured debt, as of December 31, 2023, relative to +1.85% as of December 31, 2022.

• Maintained substantial liquidity throughout the year, with liquidity of $1.5 billion as of December 31, 2024.

• Debt-to-equity ratio of 3.5x as of December 31, 2024, down from 3.7x as of December 31, 2023.

• Borrowed an additional $650.0 million under our senior term loan facilities with an interest rate of SOFR plus 3.75% and maturity in 2028, and issued $450.0 million aggregate principal amount of senior secured notes due 2029, repaying $1.0 billion of term loans with a 2026 maturity.

• Repurchased $66.9 million of aggregate corporate debt principal at a discount, generating total gain of $5.4 million, and $29.2 million of common stock, generating $0.07 of incremental book value accretion per share.

Key Financial Measures and Indicators

As a real estate finance company, we believe the key financial measures and indicators for our business are earnings per share, dividends declared, Distributable Earnings, and book value per share.

For the three months ended December 31, 2023, we recorded a basic net loss per share of $0.01, declared a dividend of $0.62 per share, and reported $0.69 per share of Distributable Earnings.

As a real estate finance company, we believe the key financial measures and indicators for our business are earnings per share, dividends declared, Distributable Earnings, Distributable Earnings prior to charge-offs, and book value per share.

For the three months ended December 31, 2024, we recorded basic net earnings per share of $0.21, declared a dividend of $0.47 per share, reported $(1.25) per share of Distributable Earnings, and reported $0.44 per share of Distributable Earnings prior to charge-offs.

In addition, our book value as of December 31, 2024 was $21.87 per share, which is net of cumulative CECL reserves of $4.31 per share.

For the year ended December 31, 2023, we recorded earnings per share of $1.43, declared aggregate dividends of $2.48 per share, and reported $3.05 per share of Distributable Earnings.

As further described below, Distributable Earnings is a measure that is not prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP.

Distributable Earnings helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations.

In addition, Distributable Earnings is a performance metric we consider when declaring our dividends.

As further described below, Distributable Earnings and Distributable Earnings prior to charge-offs are measures that are not prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP.

Distributable Earnings and Distributable Earnings prior to charge-offs helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations.

In addition, Distributable Earnings and Distributable Earnings prior to charge-offs are performance metrics we consider when declaring our dividends.

Earnings Per Share and Dividends Declared

The following table sets forth the calculation of basic net (loss) income per share and dividends declared per share ($ in thousands, except per share data):

The following table sets forth the calculation of basic net income (loss) per share and dividends declared per share ($ in thousands, except per share data):

Three Months Ended Year Ended December 31,

December 31, 2024 2024 2023

Net (loss) income (1)

Net income (loss) (1)

$ 37,190 $ (204,088) $ 246,555

Weighted-average shares outstanding, basic 173,488,888 173,782,523 172,672,038

Per share amount, basic $ (0.01) $ 1.43 $ 1.46

Net income (loss) per share, basic

$ 0.21 $ (1.17) $ 1.43

Dividends declared per share $ 0.47 $ 2.18 $ 2.48

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

Refer to Note 13 to our consolidated financial statements for the calculation of diluted net income per share.

Distributable Earnings

Distributable Earnings is a non-GAAP measure, which we define as GAAP net income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), and (iv) certain non-cash items.

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

Refer to Note 15 to our consolidated financial statements for the calculation of diluted net (loss) income per share.

Distributable Earnings and Distributable Earnings Prior to Charge-Offs

Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves are non-GAAP measures.

We define Distributable Earnings as GAAP net income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), and (iv) certain non-cash items.

Distributable Earnings may also be adjusted from time to time to exclude one-time events pursuant to changes in GAAP and certain other non-cash charges as determined by our Manager, subject to approval by a majority of our independent directors.

Distributable Earnings mirrors the terms of our management agreement between our Manager and us, or our Management Agreement, for purposes of calculating our incentive fee expense.

Therefore, Distributable Earnings prior to charge-offs of CECL reserves is calculated net of the incentive fee expense that would have been recognized if such charge-offs had not occurred.

Our CECL reserves have been excluded from Distributable Earnings consistent with other unrealized gains (losses) pursuant to our existing policy for reporting Distributable Earnings.

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The timing of any such credit loss realization in our Distributable Earnings may differ materially from the timing of CECL reserves or charge-offs in our consolidated financial statements prepared in accordance with GAAP.

The realized loss amount reflected in Distributable Earnings will equal the difference between the cash received, or expected to be received, and the book value of the asset, and is reflective of our economic experience as it relates to the ultimate realization of the loan.

The realized loss amount reflected in Distributable Earnings will equal the difference between the cash received, or

expected to be received, and the book value of the asset, and is reflective of our economic experience as it relates to the ultimate realization of the loan.

We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss) and cash flow from operating activities determined in accordance with GAAP.

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Further, Distributable Earnings helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations, and is a performance metric we consider when declaring our dividends.

Distributable Earnings does not represent net income (loss) or cash generated from operating activities and should not be considered as an alternative to GAAP net income (loss), or an indication of our GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs.

In addition, our methodology for calculating Distributable Earnings may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported Distributable Earnings may not be comparable to the Distributable Earnings reported by other companies.

The following table provides a reconciliation of Distributable Earnings to GAAP net (loss) income ($ in thousands, except per share data):

Furthermore, we believe it is useful to present Distributable Earnings prior to charge-offs of CECL reserves to reflect our direct operating results and help existing and potential future holders of our class A common stock assess the performance of our business excluding such charge-offs.

We utilize Distributable Earnings prior to charge-offs of CECL reserves as an additional performance metric to consider when declaring our dividends.

Distributable Earnings mirrors the terms of our Management Agreement for purposes of calculating our incentive fee expense.

Therefore, Distributable Earnings prior to charge-offs of CECL reserves is calculated net of the incentive fee expense that would have been recognized if such charge-offs had not occurred.

Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves do not represent net income (loss) or cash generated from operating activities and should not be considered as alternatives to GAAP net income (loss), or indicators of our GAAP cash flows from operations, measures of our liquidity, or indicators of funds available for our cash needs.

In addition, our methodology for calculating Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves may not be comparable to similar metrics reported by other companies.

The following table provides a reconciliation of Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves to GAAP net income (loss) ($ in thousands, except per share data):

Three Months Ended Year Ended December 31,

December 31, 2024 2024 2023

Net (loss) income (1)

Net income (loss) (1)

$ 37,190 $ (204,088) $ 246,555

Increase in current expected credit loss reserve 115,261 249,790 211,505

Charge-offs of CECL reserves (2)

(294,064) (384,603) —

Increase in CECL reserves 19,055 538,801 249,790

Non-cash compensation expense 7,772 31,828 30,655

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(598) (2,018) (766)

Adjustments attributable to non-controlling interests, net (83) (35) (361)

Depreciation and amortization of real estate owned 8,193 9,407 —

Non-cash income from agency multifamily partnership, net (4)

(718) (718) —

Contingent liabilities (5)

5,653 5,653 —

Other items (11) (4) 71

Adjustments attributable to non-controlling interests, net (102) 248 (35)

Distributable Earnings $ (217,630) $ (5,494) $ 526,270

Charge-offs of CECL reserves (2)

294,064 384,603 —

Incentive fee related to charge-offs of CECL reserves (6)

Distributable Earnings prior to charge-offs of CECL reserves $ 76,434 $ 372,837 $ 526,270

Weighted-average shares outstanding, basic (7)

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Distributable Earnings per share, basic $ (1.25) $ (0.03) $ 3.05

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

Distributable Earnings per share, basic, prior to charge-offs of CECL reserves $ 0.44 $ 2.15 $ 3.05

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

(2) Represents realized losses related to loan principal amounts deemed non-recoverable.

(3) Represents realized losses on the repatriation of unhedged foreign currency.

These amounts were not included in GAAP net (loss) income, but rather as a component of other comprehensive income in our consolidated financial statements.

These amounts were not included in GAAP net income (loss), but rather as a component of other comprehensive income in our consolidated financial statements.

(4) Represents the non-cash portion of income recognized related to our Agency Multifamily Lending Partnership, in which we receive a portion of origination, servicing, and other fees for loans we refer to MTRCC for origination, offset by the related guarantee liability accruals.

Refer to Note 2 to our consolidated financial statements for additional information on our Agency Multifamily Lending Partnership.

(5) Represents a contingent liability related to a sale of a loan.

(6) Represents the implied incentive fee expense that would have been incurred if such charge-offs had not occurred, as calculated on a quarterly basis.

No incentive fee expense would have been incurred for the nine months ended December 31, 2024 and the $6.3 million would have been incurred in the three months ended March 31, 2024.

(7) The weighted-average shares outstanding, basic, exclude shares issuable from a potential conversion of our Convertible Notes then outstanding.

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Loan Portfolio

During the year ended December 31, 2023, loan fundings totaled $1.6 billion and loan repayments and sales totaled $3.8 billion, for net repayments of $2.2 billion.

During the year ended December 31, 2024, we originated or acquired $431.9 million of loans.

Loan fundings during the year totaled $1.6 billion and loan repayments and sales totaled $5.2 billion.

We generated interest income of $1.8 billion and incurred interest expense of $1.3 billion during the year, which resulted in $479.1 million of net interest income during the year ended December 31, 2024.

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Total net repayments $ (1,182,955) $ (3,621,450)

(1) Includes new loan originations and additional commitments made under existing loans.

(2) Loan fundings during the three months and year ended December 31, 2023, include $36.1 million and $294.1 million, respectively, of additional fundings under related non-consolidated senior interests.

(1) Includes new loan originations and acquisitions, and additional commitments made under existing loans.

(2) Loan fundings during the three months ended and year ended December 31, 2024, include $47.2 million and $181.3 million, respectively, of additional fundings under related non-consolidated senior interests.

(3) Loan repayments and sales during the year ended December 31, 2024, include $512.1 million of additional repayments or reduction of loan exposure under related non-consolidated senior interests.

Additionally, loan repayments and sales during the three months and year ended December 31, 2023 include $50.0 million and $100.7 million, respectively, of sales of junior loan interests.

There were no such related loan repayments during the three months ended December 31, 2024.

The following table details overall statistics for our loan portfolio as of December 31, 2024 ($ in thousands):

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(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, 2024, total loan exposure, includes (i) loans with an outstanding principal balance of $19.2 billion that are included in our consolidated financial statements, (ii) $817.5 million of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $100.1 million of junior loan interests that we have sold, but that remain included in our consolidated financial statements.

We have retained an aggregate $228.1 million of subordinate mezzanine loans, as of December 31, 2024, related to non-consolidated senior interests that are included in our balance sheet portfolio.

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(3) The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, and other indices as applicable to each investment.

As of December 31, 2023, 99% of our loans by total loan exposure earned a floating rate of interest, primarily indexed to SOFR, and the remaining 1% of our loans earn a fixed rate of interest.

Floating rate exposure 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.

As of December 31, 2024, substantially all of our loans by total loan exposure earned a floating rate of interest, primarily indexed to SOFR.

In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees.

Excludes loans accounted for under the cost-recovery method.

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

(4) Maximum maturity assumes all extension options are exercised by the borrower, however our loans and other investments may be repaid prior to such date.

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

As of December 31, 2024, 10% of our loans by total loan exposure were subject to yield maintenance or other prepayment restrictions and 90% were open to repayment by the borrower without penalty.

(5) Based on LTV as of the dates loans were originated or acquired by us, excluding any junior participations sold.

(5) Based on LTV as of the dates loans were originated or acquired by us, excluding any loans that are impaired and any junior participations sold.

The following table details the index rate floors for our loan portfolio based on total loan exposure as of December 31, 2024 ($ in thousands):

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(1) Total loan exposure reflects our aggregate exposure to each loan investment.

See Note 2 to our consolidated financial statements for further discussion of loan participations sold.

(2) Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, Swiss Franc, and Danish Krone currencies.

(3) 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.

(2) Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, and Swiss Franc currencies.

(3) Includes all impaired loans.

(4) As of December 31, 2024, the weighted-average index rate floor of our total loan exposure was 1.04%.

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(1) Total loan exposure reflects our aggregate exposure to each loan investment.

See Note 2 to our consolidated financial statements for further discussion of loan participations sold.

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(3) 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.

(4) 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.

(5) Includes floating rate loans indexed to STIBOR, BBSY, SARON, and CIBOR indices.

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

(4) Includes floating rate loans indexed to STIBOR, BBSY, and SARON indices.

The charts below detail the geographic distribution and types of properties securing our loan portfolio, as of December 31, 2024:

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(1) 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.

(1) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31, 2024, which is our total loan exposure net of (i) $817.5 million of non-consolidated senior interests, (ii) $1.2 billion of asset-specific debt, (iii) $106.7 million of cost-recovery proceeds, and (iv) our total loans receivable CECL reserve of $733.9 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.

Geographic locations that represent less than 1% of net loan exposure are excluded from the chart.

(2) Assets with multiple components are proportioned into the relevant collateral types based on the allocated value of each collateral type.

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Portfolio Management

As of December 31, 2023, 99.5% of borrowers, based on net loan exposure, were compliant with the contractual terms of each respective loan.

As of December 31, 2024, 93% of our loans were performing with risk ratings of “1” through “4,” and the remaining 7% were impaired with a risk rating of “5.” Of the performing loans, 99.2%, based on net loan exposure, were in compliance with the applicable contractual terms.

We believe this demonstrates the overall strength of our loan portfolio and the commitment and financial wherewithal of our borrowers generally, which are primarily affiliated with large real estate private equity funds and other strong, well-capitalized, and experienced sponsors.

As of December 31, 2023, we had one loan with an amortized cost basis of $140.0 million past its current maturity date.

This loan was less than 30 days past due on its interest payments, and had a risk rating of “5” as of December 31, 2023.

We maintain a robust asset management relationship with our borrowers and utilize these relationships to maximize the performance of our portfolio, including during periods of volatility.

We believe that we benefit from these relationships and from our long-standing core business model of originating senior loans collateralized by large assets in major markets with experienced, well-capitalized institutional sponsors.

Our loan portfolio’s low weighted-average origination LTV of 63.6%, excluding any junior participations sold, as of December 31, 2023 reflects significant equity value that we expect our

sponsors will be motivated to protect through periods of cyclical disruption.

While we believe the principal amounts of our loans are generally adequately protected by underlying collateral value, there is a risk that we will not realize the entire principal value of certain investments.

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.

As of December 31, 2024, we had an aggregate $580.7 million asset-specific CECL reserve related to

13 of our loans receivable, with an aggregate amortized cost basis of $1.8 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, 2024.

Our portfolio monitoring and asset management operations benefit from the deep knowledge, experience, and information advantages derived from our position as part of Blackstone’s real estate platform.

Blackstone has built the world's preeminent global real estate business, with a proven track record of successfully navigating market cycles and emerging stronger through periods of volatility.

The market-leading real estate expertise derived from the strength of the Blackstone platform deeply informs our credit and underwriting process, and gives us the tools to expertly asset manage our portfolio and work with our borrowers throughout periods of economic stress and uncertainty.

As discussed in Note 2 to our consolidated financial statements, we perform a quarterly review of our loan portfolio, assesses the performance of each loan, and assigns it a risk rating between “1” and “5”, from less risk to greater risk.

Our loan portfolio had a weighted-average risk rating of 3.0 and 2.9 as of December 31, 2023 and 2022, respectively.

Our loan portfolio had a weighted-average risk rating of 3.0 as of both December 31, 2024 and December 31, 2023, respectively.

The following table allocates the net book value, total loan exposure, and net loan exposure balances based on our internal risk ratings ($ in thousands):

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(1) Total loan exposure reflects our aggregate exposure to each loan investment.

See Note 2 to our consolidated financial statements 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.

(2) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31, 2024, which is our total loan exposure net of (i) $817.5 million of non-consolidated senior interests, (ii) $1.2 billion of asset-specific debt, (iii) $106.7 million of cost-recovery proceeds, and (iv) our total loans receivable CECL reserve of $733.9 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.

Current Expected Credit Loss Reserve

The CECL reserves required by GAAP reflect our current estimate of potential credit losses related to our loans included in our consolidated balance sheets.

The CECL reserves required by GAAP reflect our current estimate of potential credit losses related to our loans and notes receivable included in our consolidated balance sheets.

Other than a few narrow exceptions, GAAP requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the principle underlying the CECL model that all loans and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors.

During the year ended December 31, 2023, we recorded an aggregate increase of $250.8 million in the CECL reserve 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.

During the year ended December 31, 2024, we recorded a net increase of $157.0 million in the CECL reserves against our loans receivable portfolio, due to a $541.6 million increase in CECL reserves, offset by charge-offs of our CECL reserves of $384.6 million, bringing our total loans receivable CECL reserve to $733.9 million as of December 31, 2024.

The $384.6 million of charge-offs primarily related to the 13 previously impaired loans that were resolved during the year ended December 31, 2024.

The $541.6 million increase in CECL reserves primarily relates to six additional loans that were impaired but not resolved during the year ended December 31, 2024, all of which were secured by office buildings.

The office sector is generally facing reduced tenant and capital markets demand in recent years.

These impairments are each determined individually as a result of changes in the specific credit quality factors for such loans.

These factors included, among others, (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan.

In addition, our general CECL reserves decreased primarily as a result of net loan repayments reducing the size of our portfolio during the year ended December 31, 2024.

During the three months ended December 31, 2024, we recorded a net decrease of $302.9 million in the asset-specific CECL reserve related to our impaired loans.

The decrease was primarily driven by the resolution of eight impaired loans during the quarter, resulting in charge-offs of CECL reserves of $294.1 million.

This was offset by one additional loan that was impaired during the three months ended December 31, 2024.

As of December 31, 2024, the income accrual was suspended on this loan as the recovery of income and principal was doubtful.

During the three months ended December 31, 2024, we recorded $3.0 million of interest income on this loan.

As of December 31, 2024, we had an aggregate $580.7 million asset-specific CECL reserve related to 13 of our loans receivable, with an aggregate amortized cost basis of $1.8 billion, net of cost-recovery proceeds.

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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, 2024, we received an aggregate $88.0 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, 2024, one of our performing loans with an amortized cost basis of $195.0 million, inclusive of a $50.0 million junior loan participation sold, was past its current maturity date, was less than 90 days past due on its interest payment, and had a risk rating of “3.” This loan was not impaired as of December 31, 2024 as the estimated fair value of the underlying collateral exceeded our basis in the loan.

As of December 31, 2024, all other borrowers under performing loans were in compliance with the applicable contractual terms of each respective loan, including any required payment of interest.

Refer to Note 2 to our consolidated financial statements for further discussion of our policies on revenue recognition and our CECL reserves.

Multifamily Joint Venture

As of December 31, 2023, our multifamily joint venture held $612.9 million of loans, which are included in the loan disclosures above.

As of December 31, 2024, our multifamily joint venture held a $43.3 million loan, which is included in the loan disclosures above.

As of December 31, 2024, our Multifamily Joint Venture also held a $32.4 million REO asset.

Refer to Note 2 to our consolidated financial statements for additional discussion of our multifamily joint venture.

Agency Multifamily Lending Partnership

In the second quarter of 2024, we entered into our Agency Multifamily Lending Partnership that allows our borrowers to access multifamily agency financing through MTRCC’s Fannie Mae DUS and Freddie Mac Optigo lending platforms.

We will receive a portion of origination, servicing, and other fees for loans that we refer to MTRCC for origination under both the Fannie Mae and Freddie Mac programs.

Additionally, we will share in losses with MTRCC and Fannie Mae on loans that we refer to MTRCC for origination under the Fannie Mae program.

During the year ended December 31, 2024, we referred four loans to MTRCC that were originated and sold under the Fannie Mae and Freddie Mac programs, resulting in $1.1 million of revenue during the year ended December 31, 2024.

Portfolio Financing

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Total portfolio financing $ 12,870,606 $ 16,208,669

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

Borrowings Outstanding

December 31, 2023 December 31, 2022

Secured Credit Facilities

Acquisition facility — —

Total secured debt $ 12,697,058 $ 13,549,748

Secured Credit Facilities

The following table details our secured credit facilities by spread over the applicable base rates as of December 31, 2024 ($ in thousands):

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(1) The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, and other indices as applicable.

(2) Represents borrowings outstanding as of December 31, 2023 for new financings closed during the year ended December 31, 2023.

(2) Represents the amount of new borrowings we closed during the year ended December 31, 2024.

(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.

All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any, and REO assets.

(4) Represents the weighted-average all-in cost as of December 31, 2024 and is not necessarily indicative of the spread applicable to recent or future borrowings.

(5) Represents the principal balance of the collateral assets.

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

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

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.

As of December 31, 2023, we had no assets pledged to our acquisition facility and no outstanding borrowings.

Securitizations

Securitized Debt Obligations

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

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Senior CLO Securities Outstanding 1 $ 785,453 $ 785,442 + 1.39 % May 2038

Underlying Collateral Assets 26 1,000,000 1,000,000 + 3.28 % December 2025

Underlying Collateral Assets 22 952,764 952,764 + 2.95 % August 2026

2020 FL3 Collateralized Loan Obligation

Senior CLO Securities Outstanding 1 552,664 552,663 + 1.92 % November 2037

Underlying Collateral Assets 15 905,602 905,602 + 2.87 % September 2025

Underlying Collateral Assets 12 743,914 743,914 + 2.92 % June 2026

2020 FL2 Collateralized Loan Obligation

Senior CLO Securities Outstanding 1 598,850 598,851 + 1.50 % February 2038

Underlying Collateral Assets 15 1,246,287 1,246,287 + 2.85 % October 2025

Underlying Collateral Assets 12 855,725 855,725 + 2.79 % August 2026

Senior CLO Securities Outstanding (5)

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(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.

(3) The weighted-average all-in yield and cost are expressed as a spread over SOFR.

All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any, and REO assets.

(4) Underlying Collateral Assets term represents the weighted-average final maturity of such loans, assuming all extension options are exercised by the borrower, and excludes REO assets.

Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments.

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Yield/Cost (2)

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

Financing provided 2 $ 1,228,110 $ 1,224,841 + 3.20 % June 2026

Collateral assets 2 $ 1,467,185 $ 1,459,864 + 4.03 % June 2026

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

(2) The weighted-average all-in yield and cost are expressed as a spread over SOFR.

These floating rate loans and related liabilities are currency and index-matched to the applicable benchmark rate relevant in each arrangement.

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Total corporate financing $ 2,815,910 $ 2,801,311

The following table details our outstanding senior term loan facilities, or Term Loans, Senior Secured Notes, and convertible senior notes, or Convertible Notes, as of December 31, 2023 ($ in thousands):

The following table details our outstanding senior term loan facilities, or Term Loans, our outstanding senior secured notes, or Senior Secured Notes, and convertible senior notes, or Convertible Notes, as of December 31, 2024 ($ in thousands):

Corporate Financing Face Value Interest Rate (1)

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B-1 Term Loan $ 309,268 + 2.36 % + 2.53 % April 23, 2026

B-3 Term Loan 410,942 + 2.86 % + 3.54 % April 23, 2026

B-4 Term Loan 805,169 + 3.50 % + 4.11 % May 9, 2029

B-5 Term Loan

650,000 + 3.75 % + 4.27 % December 10, 2028

Total term loans $ 1,764,437

Senior Secured Notes

Senior Secured Notes $ 366,090 3.75 % 4.02 % January 15, 2027

Convertible Notes Issuance

$ 335,316 3.75 % 4.06 % January 15, 2027

December 2024

450,000 7.75 % (3)

8.14 % December 1, 2029

Total senior secured notes $ 785,316

Convertible Notes

Convertible Notes (4)

$ 266,157 5.50 % 5.79 % March 15, 2027

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(2) Includes issue discounts, transaction expenses, and/or issuance costs, as applicable, that are amortized through interest expense over the life of each respective financing.

(3) Represents the stated coupon rate of the notes.

We have entered into an interest rate swap that effectively converts our fixed rate exposure to a SOFR + 3.95% floating rate exposure.

Refer to Note 12 to our consolidated financial statements for additional information.

(4) The conversion price of the Convertible Notes is $36.27, which represents the price of class A common stock per share based on a conversion rate of 27.5702.

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The cumulative dividend threshold has not been exceeded as of December 31, 2024.

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.

During the year ended December 31, 2024, we repurchased an aggregate principal amount of $2.3 million of the B-1 Term Loan at a weighted-average price of 99%, an aggregate principal amount of $30.8 million of the Senior Secured Notes at a weighted-average price of 88%, and an aggregate principal amount of $33.8 million of the Convertible Notes at a weighted-average price of 93%.

This resulted in gains on extinguishment of debt of $25,000, $3.3 million, and $2.0 million, respectively, during the year ended December 31, 2024.

Refer to Note 2, Note 11, Note 12, and Note 13 to our consolidated financial statements for additional discussion of our Term Loans, Senior Secured Notes, and Convertible Notes.

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Generally, our business model is such that rising interest rates will increase our net income, while declining interest rates will decrease net income.

As of December 31, 2023, 99% of our loans by total loan exposure earned a floating rate of interest and were financed with liabilities that pay interest at floating rates, which resulted in an amount of net equity that is positively correlated to rising interest rates, subject to the impact of interest rate floors on certain of our floating rate loans.

As of December 31, 2024, substantially all of our loans by total loan exposure earned a floating rate of interest and were financed with liabilities that pay interest at floating rates, which resulted in an amount of net equity that is positively correlated to rising interest rates, subject to the impact of interest rate floors on certain of our floating rate loans.

Our liabilities are generally currency and index-matched to each collateral asset, resulting in a net exposure to movements in benchmark rates that varies by currency silo based on the relative proportion of floating rate assets and liabilities.

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$ 10,713,948 £ 2,186,793 € 2,183,395 $ 1,392,645

Floating rate debt (2)(5)(7)

Floating rate portfolio financings (2)(4)(6)

(7,961,934) (1,727,371) (1,596,841) (1,093,324)

Floating rate corporate financings (7)

(2,214,437) — — —

Net floating rate exposure $ 537,577 £ 459,422 € 586,554 $ 299,321

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$ 537,577 $ 575,012 $ 607,317 $ 299,321

(1) Includes Australian Dollar, Danish Krone, Swedish Krona, and Swiss Franc currencies.

(1) Includes Australian Dollar, Swedish Krona, and Swiss Franc currencies.

(2) Our floating rate loans and related liabilities are currency and index-matched to the applicable benchmark rate relevant in each arrangement.

(3) 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.

(4) Excludes $1.6 billion of floating rate loans accounted for under the cost-recovery method.

(5) Excludes $1.1 billion of non-consolidated senior interests and $337.7 million of loan participations sold, as of December 31, 2023.

(3) Excludes $1.9 billion of floating rate impaired loans.

(4) Excludes $817.5 million of non-consolidated senior interests and $100.1 million of loan participations sold, as of December 31, 2024.

Our non-consolidated senior interests and loan participations sold are structurally non-recourse and term-matched to the corresponding loans, and have no impact on our net floating rate exposure.

(5) Our loan agreements generally require our borrowers to purchase interest rate caps, which mitigates our borrowers’ exposure to an increase in interest rates.

(7) Includes amounts outstanding under secured debt, securitizations, asset-specific debt, and Term Loans.

(6) Includes amounts outstanding under secured debt, securitizations, and asset-specific debt.

(7) Includes amounts outstanding under Term Loans and the senior secured notes due 2029.

In connection with the issuance of the senior secured notes due 2029, we entered into an interest rate swap with a notional amount of $450.0 million to effectively convert our fixed rate exposure to floating rate exposure for such notes.

(8) Represents the U.S.

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In the case of a significant increase in interest rates, the cash flows of the collateral real estate assets may not be sufficient to pay debt service due under our loans, which may contribute to non-performance or, in severe cases, default.

This risk is partially mitigated by our consideration of rising rate stress-testing during our underwriting process, which generally includes a requirement for our borrower to purchase an interest rate cap contract with an unaffiliated third party, provide an interest reserve deposit, and/or provide interest or other structural protections.

As of December 31, 2024, 92% of our performing loans have interest rate caps, with a weighted-average strike price of 3.5%, or interest guarantees.

During the year ended December 31, 2023, interest rate caps on $14.7 billion of loans, with a 3.1% weighted-average strike price, expired and 93% were replaced with new interest rate caps, with a weighted-average strike price of 3.7%, or interest guarantees.

During the year ended December 31, 2024, interest rate caps on $16.0 billion of performing loans, with a 3.4% weighted-average strike price, expired and 95% were replaced with new interest rate caps, with a weighted-average strike price of 3.7%, or interest guarantees.

Our Results of Operations

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The following table sets forth information regarding our consolidated results of operations for the years ended December 31, 2024, 2023 and 2022 ($ in thousands, except per share data):

Year Ended December 31, 2023 vs 2022 Year Ended December 31, 2022 vs 2021

Year Ended December 31, 2024 vs 2023

Year Ended December 31, 2023 vs 2022

2024 2023 $ 2023 2022 $

3 unchanged sentences

Income from loans and other investments, net 479,071 670,665 (191,594) 670,665 628,050 42,615

Other expenses

Revenue from real estate owned 13,040 — 13,040 — — —

Other income 1,064 — 1,064 — — —

Gain on extinguishment of debt 5,352 4,616 736 4,616 — 4,616

Total net revenues 498,527 675,281 (176,754) 675,281 628,050 47,231

Management and incentive fees 74,792 119,089 (44,297) 119,089 110,292 8,797

General and administrative expenses 53,922 51,143 2,779 51,143 52,193 (1,050)

Total other expenses 170,232 162,485 7,747 162,485 131,635 30,850

(Increase) decrease in current expected credit loss reserve (249,790) (211,505) (38,285) (211,505) 39,864 (251,369)

Gain on extinguishment of debt 4,616 — 4,616 — — —

Income before income taxes 255,259 254,060 1,199 254,060 422,696 (168,636)

Expenses from real estate owned 22,060 — 22,060 — — —

Other expenses

5,663 — 5,663 — — —

Total expenses

156,437 170,232 (13,795) 170,232 162,485 7,747

Increase in current expected credit loss reserve (538,801) (249,790) (289,011) (249,790) (211,505) (38,285)

Loss from unconsolidated entities

(2,748) — (2,748) — — —

(Loss) income before income taxes (199,459) 255,259 (454,718) 255,259 254,060 1,199

Income tax provision 2,374 5,362 (2,988) 5,362 3,003 2,359

Net income 249,897 251,057 (1,160) 251,057 422,273 (171,216)

Net (loss) income (201,833) 249,897 (451,730) 249,897 251,057 (1,160)

Net income attributable to non-controlling interests (2,255) (3,342) 1,087 (3,342) (2,415) (927)

Net income attributable to Blackstone Mortgage Trust, Inc.

Net (loss) income attributable to Blackstone Mortgage Trust, Inc.

$ (204,088) $ 246,555 $ (450,643) $ 246,555 $ 248,642 $ (2,087)

Net income per share of common stock basic and diluted $ 1.43 $ 1.46 $ (0.03) $ 1.46 $ 2.77 $ (1.31)

Net (loss) income per share of common stock, basic and diluted $ (1.17) $ 1.43 $ (2.60) $ 1.43 $ 1.46 $ (0.03)

Weighted-average shares of common stock outstanding, basic and diluted

173,782,523 172,672,038 1,110,485 172,672,038 170,631,410 2,040,628

Dividends declared per share $ 2.18 $ 2.48 $ (0.30) $ 2.48 $ 2.48 $ —

Income from loans and other investments, net

Income from loans and other investments, net decreased $191.6 million during the year ended December 31, 2024 compared to the year ended December 31, 2023.

The decrease was primarily due to a decline in interest income related to additional loans accounted for under the cost-recovery method during the year ended December 31, 2024, as well as a decrease in the weighted-average principal balance of our loan portfolio by $2.1 billion during the year ended

December 31, 2024 compared to the year ended December 31, 2023.

This was offset by a decrease in the weighted-average principal balance of our outstanding financing arrangements by $2.0 billion for the year ended December 31, 2024 compared to the year ended December 31, 2023.

Income from loans and other investments, net increased $42.6 million during the year ended December 31, 2023 compared to the year ended December 31, 2022.

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This was offset by (i) an increase in the weighted-average principal balance of our outstanding financing arrangements by $357.5 million for the year ended December 31, 2023, as compared to the year ended December 31, 2022 and (ii) a decline in interest income related to additional loans accounted for under the cost-recovery method for all or a portion of the year ended December 31, 2023.

Income from loans and other investments, net increased $113.6 million during the year ended December 31, 2022 compared to the year ended December 31, 2021.

The increase was primarily due to (i) an increase in floating rate indices during 2022 and (ii) an increase in the weighted-average principal balance of our loan portfolio by $5.7 billion for the year ended December 31, 2022, as compared to the year ended December 31, 2021.

This was primarily offset by an increase in

the weighted-average principal balance of our outstanding financing arrangements by $5.0 billion for the year ended December 31, 2022, as compared to the year ended December 31, 2021.

Other expenses

Other expenses include management and incentive fees payable to our Manager and general and administrative expenses.

Other expenses increased by $7.7 million during the year ended December 31, 2023 compared to the year ended December 31, 2022 due to an increase of (i) $6.9 million of incentive fees payable to our Manager, due to an increase in Distributable Earnings, (ii) $1.9 million of management fees payable to our Manager, primarily as a result of an increase in equity, and (iii) $1.7 million of other operating expenses.

This was offset by a reduction in non-cash restricted stock amortization of $2.7 million related to shares awarded under our long-term incentive plans.

Other expenses increased by $30.9 million during the year ended December 31, 2022 compared to the year ended December 31, 2021 due to an increase of (i) $13.0 million of incentive fees payable to our Manager, primarily due to an increase in Distributable Earnings, (ii) $8.8 million of management fees payable to our Manager, primarily as a result of an increase in equity, (iii) $7.3 million of general operating expenses, and (iv) $1.7 million of non-cash restricted stock amortization related to shares issued under our long-term incentive plans.

Changes in current expected credit loss reserve

During the year ended December 31, 2023, we recorded a $249.8 million increase in our CECL reserves, as compared to a $211.5 million increase during the year ended December 31, 2022.

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 year ended December 31, 2022, we recorded a $211.5 million increase in our CECL reserves, as compared to a $39.9 million decrease during the year ended December 31, 2021.

These CECL reserves reflect certain impaired loans in our portfolio, as well as an additional increase in our CECL reserves due to macroeconomic conditions.

Revenue from real estate owned

Revenue from REO increased by $13.0 million during the year ended December 31, 2024 compared to the year ended December 31, 2023 due to seven REO assets being acquired during the year.

There was no revenue from REO during the years ended December 31, 2023 and 2022.

Other income relates to origination, servicing, and other fees recognized in connection with our Agency Multifamily Lending Partnership.

Other income increased by $1.1 million during the year ended December 31, 2024 as a result of the referral of four loans pursuant to the Agency Multifamily Lending Partnership that were originated and sold by MTRCC.

There was no other income recognized during the years ended December 31, 2023 and 2022.

Gain on extinguishment of debt

Gain on extinguishment of debt increased by $736,000 during the year ended December 31, 2024 compared to the year ended December 31, 2023.

During the year ended December 31, 2024, we recognized an aggregate gain on extinguishment of debt of $5.4 million related to the repurchase of an aggregate principal amount of $33.8 million, $30.8 million, and $2.3 million, of our Convertible Notes, senior secured notes due 2027, or the October 2021 senior secured notes, and B-1 Term Loan, respectively.

During the year ended December 31, 2023, we recognized a gain on extinguishment of debt of $4.6 million related to the repurchase of an aggregate principal amount of $33.9 million of our Senior Secured Notes.

There was no repurchase activity or gain on extinguishment of debt in the years ended December 31, 2022 and December 31, 2021.

There was no repurchase activity or gain on extinguishment of debt in the year ended December 31, 2022.

Expenses include management and incentive fees payable to our Manager, general and administrative expenses, expenses from real estate owned, and other expenses.

Expenses decreased by $13.8 million during the year ended December 31, 2024 compared to the year ended December 31, 2023 primarily due to a decrease of $44.3 million of incentive fees payable to our Manager, driven primarily by charge-offs of CECL reserves.

This was offset by $22.1 million of expenses of real estate owned, which relates to REO operations.

We did not incur any expenses from REO during the year ended December 31, 2023.

Additionally, other expenses increased by $5.7 million, which represents a contingent liability related to the sale of a loan.

Lastly, general and administrative expenses increased by $2.8 million primarily due to (i) a $1.9 million increase in professional expenses, and (ii) a $1.2 million increase in non-cash restricted stock amortization related to shares awarded under our long-term incentive plans.

Other expenses increased by $7.7 million during the year ended December 31, 2023 compared to the year ended December 31, 2022 due to an increase of (i) $6.9 million of incentive fees payable to our Manager, due to an increase in Distributable Earnings, (ii) $1.9 million of management fees payable to our Manager, primarily as a result of an increase in our Equity, and (iii) $1.7 million of other operating expenses.

This was offset by a reduction in non-cash restricted stock amortization of $2.7 million related to awards under our long-term incentive plans.

Changes in current expected credit loss reserve

During the year ended December 31, 2024, we recorded a $538.8 million increase in our CECL reserves, as compared to a $249.8 million increase during the year ended December 31, 2023.

These incremental CECL reserves primarily reflect a

$163.0 million increase in the specific reserves related to certain impaired loans in our portfolio, most of which were secured by office buildings.

The office sector is generally facing reduced tenant and capital markets demand in recent years.

These impairments are each determined individually as a result of changes in the specific credit quality factors for such loans.

In addition, our general CECL reserves decreased primarily as a result of loan repayments reducing the size of our portfolio during the year ended December 31, 2024.

We may be required to record further increases to our CECL reserves in the future, depending on the performance of our portfolio and broader market conditions, and there may be volatility in the level of our CECL reserves.

In particular, our loans secured by office buildings have experienced higher levels of CECL reserves and may continue to do so if market conditions relevant to office buildings do not improve.

Any such reserve increases are difficult to predict, but are expected to be primarily the result of incremental loan impairments resulting from changes in the specific credit quality factors of such loans and to be concentrated in our loans receivable with a risk rating of “4” as of December 31, 2024.

During the year ended December 31, 2023, we recorded a $249.8 million increase in our CECL reserves, as compared to a

$211.5 million increase during the year ended December 31, 2022.

These CECL reserves reflect certain impaired loans in

our portfolio, as well as an additional increase in our CECL reserves due to macroeconomic conditions.

Loss from unconsolidated entities

Loss from unconsolidated entities of $2.7 million represents our share of the start-up costs that were incurred related to our Net Lease Joint Venture.

There was no income or loss from unconsolidated entities during the years ended December 31, 2023 or 2022.

Income tax provision

The income tax provision increased by $2.4 million during the year ended December 31, 2023 as compared to the year ended December 31, 2022, due to additional activity in our U.S.

and foreign taxable subsidiaries.

The income tax provision increased by $2.6 million during the year ended December 31, 2022 as compared to the year ended December 31, 2021, due to additional activity in our U.S.

and foreign taxable subsidiaries.

The income tax provision decreased by $3.0 million during the year ended December 31, 2024 as compared to the year ended December 31, 2023, due to a decrease in the income tax provisions related to our taxable REIT subsidiaries.

The income tax provision increased by $2.4 million during the year ended December 31, 2023 as compared to the year ended December 31, 2022, due to an increase in the income tax provisions related to our taxable REIT subsidiaries.

Dividends per share

During the year ended December 31, 2023, we declared aggregate dividends of $2.48 per share, or $427.9 million.

During 2022, we declared aggregate dividends of $2.48 per share, or $423.6 million.

During 2021, we declared aggregate dividends of $2.48 per share, or $383.9 million.

During the year ended December 31, 2024, we declared dividends of $2.18 per share, or $377.8 million in aggregate.

During the year ended December 31, 2023, we declared dividends of $2.48 per share, or $427.9 million in aggregate.

During the year ended December 31, 2022, we declared dividends of $2.48 per share, or $423.6 million in aggregate.

The following table sets forth information regarding our consolidated results of operations for the three months ended December 31, 2024 and September 30, 2024 ($ in thousands, except per share data):

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Income from loans and other investments, net 101,558 108,348 (6,790)

Other expenses

Revenue from real estate owned 11,826 1,214 10,612

Other income 1,064 — 1,064

Gain on extinguishment of debt — 2,389 (2,389)

Total net revenues 114,448 111,951 2,497

Management and incentive fees 18,534 18,605 (71)

General and administrative expenses 13,111 13,423 (312)

Total other expenses 39,596 40,883 (1,287)

Expenses from real estate owned 18,413 2,684 15,729

Other expenses

5,663 — 5,663

Total expenses

55,721 34,712 21,009

Increase in current expected credit loss reserve (19,055) (132,470) 113,415

Gain on extinguishment of debt 75 4,541 (4,466)

(Loss) income before income taxes (1,017) 32,128 (33,145)

Income tax provision 698 1,568 (870)

Net (loss) income (1,715) 30,560 (32,275)

Loss from unconsolidated entities

(2,748) — (2,748)

Income (loss) before income taxes 36,924 (55,231) 92,155

Income tax (benefit) provision (458) 613 (1,071)

Net income (loss) 37,382 (55,844) 93,226

Net income attributable to non-controlling interests (192) (540) 348

Net (loss) income attributable to Blackstone Mortgage Trust, Inc.

Net income (loss) attributable to Blackstone Mortgage Trust, Inc.

$ 37,190 $ (56,384) $ 93,574

Net (loss) income per share of common stock basic and diluted $ (0.01) $ 0.17 $ (0.18)

Net income (loss) per share of common stock, basic and diluted $ 0.21 $ (0.32) $ 0.53

Weighted-average shares of common stock outstanding, basic and diluted 173,488,888 173,637,101 (148,213)

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Income from loans and other investments, net decreased $6.8 million during the three months ended December 31, 2024 compared to the three months ended September 30, 2024.

The decrease was primarily due to (i) a decrease in the weighted-average principal balance of our loan portfolio by $543.5 million for the three months ended December 31, 2023 compared to the three months ended September 30, 2023 and (ii) a decline in interest income related to additional loans accounted for under the cost-recovery method during the three months ended December 31, 2023.

This was offset by a decrease in the weighted-average principal balance of our outstanding financing arrangements by $587.4 million for the three months ended December 31, 2023 compared to the three months ended September 30, 2023.

Other expenses

Other expenses include management and incentive fees payable to our Manager and general and administrative expenses.

Other expenses decreased by $1.3 million during the three months ended December 31, 2023 compared to the three months ended September 30, 2023 primarily due to a decrease of $2.6 million of incentive fees payable to our Manager.

This was offset by an increase of $1.1 million of general operating expenses.

The decrease was primarily due to a decrease in the weighted-average principal balance of our loan portfolio by $1.6 billion during the three months ended December 31, 2024, as well as a decline in interest income related to two additional loans accounted for under the cost-recovery method effective September 30, 2024.

This was offset by a decrease in the weighted-average principal balance of our outstanding financing arrangements by $1.1 billion for the three months ended December 31, 2024 compared to the three months ended September 30, 2024.

Revenue from real estate owned

Revenue from REO increased by $10.6 million during the three months ended December 31, 2024.

The increase was due to four additional REO assets acquired during the three months ended December 31, 2024.

Other income relates to origination, servicing, and other fees recognized in connection with our Agency Multifamily Lending Partnership.

Other income increased by $1.1 million during the three months ended December 31, 2024 compared to the three months ended September 30, 2024, as a result of the referral of four loans pursuant to the Agency Multifamily Lending Partnership that were originated and sold by MTRCC.

There was no other income recognized during the three months ended September 30, 2024.

Gain on extinguishment of debt

Gain on extinguishment of debt decreased by $2.4 million during the three months ended December 31, 2024 compared to the three months ended September 30, 2024.

We did not recognize any gains from extinguishment of debt during the three months ended December 31, 2024.

During the three months ended September 30, 2024, we recognized an aggregate gain on extinguishment of debt of $2.4 million related to the repurchase of an aggregate principal amount of $33.8 million, $4.6 million, and $2.3 million of our Convertible Notes, October 2021 senior secured notes, and B-1 Term Loan, respectively.

Expenses include management and incentive fees payable to our Manager, general and administrative expenses, expenses from real estate owned, and other expenses.

Expenses increased by $21.0 million during the three months ended December 31, 2024 compared to the three months ended September 30, 2024 primarily due to a $15.7 million increase in expenses of real estate owned due to additional REO assets acquired during the quarter, as well as a $5.7 million increase in other expenses, which represents a contingent liability related to the sale of a loan.

Changes in current expected credit loss reserve

During the three months ended December 31, 2024, we recorded a $19.1 million increase in our CECL reserves, as compared to a $132.5 million increase during the three months ended September 30, 2024.

These CECL reserves reflect certain impaired loans in our portfolio, as well as an additional increase in our CECL reserves due to macroeconomic conditions.

Gain on extinguishment of debt

During the three months ended December 31, 2023, we recognized a gain on extinguishment of debt of $75,000 related to the repurchase of an aggregate principal amount of $500,000 of our Senior Secured Notes.

During the three months ended September 30, 2023, we recognized a gain on extinguishment of debt of $4.5 million related to the repurchase of an aggregate principal amount of $33.4 million of our Senior Secured Notes.

This increase is primarily due to:

(i) an increase in our general CECL reserves as a result of changes in the historical loss rate, and (ii) one additional loan that was impaired during the three months ended December 31, 2024.

These increases were partially offset by a $32.4 million reversal of asset-specific CECL reserves as a result of the resolution of several impaired loans above our carrying value.

In particular, our loans secured by office buildings have experienced higher levels of CECL reserves and may continue to do so if market conditions relevant to office buildings do not improve.

Loss from unconsolidated entities

Loss from unconsolidated entities of $2.7 million represents our share of the start-up costs that were incurred related to our Net Lease Joint Venture.

There was no income or loss from unconsolidated entities during the three months ended September 30, 2024.

Income tax provision

The income tax provision decreased by $870,000 during the three months ended December 31, 2023 compared to the three months ended September 30, 2023 primarily due to a decrease in the income tax provisions related to our U.S.

and foreign taxable subsidiaries.

The income tax provision decreased by $1.1 million during the three months ended December 31, 2024 compared to the three months ended September 30, 2024 primarily due to a decrease in the income tax provisions related to our taxable REIT subsidiaries.

Dividends per share

During the three months ended December 31, 2023, we declared aggregate dividends of $0.62 per share, or $107.4 million.

During the three months ended September 30, 2023, we declared aggregate dividends of $0.62 per share, or $106.8 million.

During the three months ended December 31, 2024, we declared dividends of $0.47 per share, or $81.2 million in aggregate.

During the three months ended September 30, 2024, we declared dividends of $0.47 per share, or $81.3 million in aggregate.

Liquidity and Capital Resources

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Our $12.9 billion of asset-level financings includes $9.7 billion of secured debt, $1.9 billion of securitizations, and $1.2 billion of asset-specific debt, all of which are structured to produce term, currency, and index matched funding with no margin call provisions based upon capital markets events.

As of December 31, 2023, we have $ 1.7 billion of liquidity that can be used to satisfy our short-term cash requirements and as working capital for our business.

As of December 31, 2024, we had $1.5 billion of liquidity that can be used to satisfy our short-term cash requirements and as working capital for our business.

See Notes 7, 8, 9, 10, 11, 12, and 13 to our co nsolidated financial statements for additional details regarding our secured debt, securitized debt obligations, asset-specific debt, loan participations sold, Term Loans, Senior Secured Notes, and Convertible Notes, respectively.

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74,313 48,287

$ 1,509,002 $ 1,667,412

(1) Represents loan principal payments held by our third-party servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle, net of the related secured debt balance.

During the year ended December 31, 2023, we generated cash flow from operating activities of $458.8 million and received $2.8 billion from loan principal collections, sales proceeds, and cost-recovery proceeds.

During the year ended December 31, 2024, we generated cash flow from operating activities of $366.5 million and received $5.2 billion from loan principal collections, sales proceeds, and cost-recovery proceeds, of which $4.8 billion is reflected in our consolidated statement of cash flows prepared in accordance with GAAP.

Furthermore, we are able to generate incremental liquidity through the replenishment provisions of certain of our CLOs, which allow us to replace a repaid loan in the CLO by increasing the principal amount of existing CLO collateral assets to maintain the aggregate amount of collateral assets in the CLO, and the related financing outstanding.

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The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering materials, at the time of any offering.

We may also access liquidity through our dividend reinvestment plan and direct stock purchase plan, under which 9,974,961 shares of class A common stock were available for issuance as of December 31, 2023, and our at the market stock offering program, pursuant to which we may sell, from time to time, up to $480.9 million of additional shares of our class A common stock as of December 31, 2023.

We may also access liquidity through our dividend reinvestment plan and direct stock purchase plan, under which 9,969,112 shares of class A common stock were available for issuance as of December 31, 2024, and our at the market stock offering program, pursuant to which we may sell, from time to time, up to $480.9 million of additional shares of our

class A common stock as of December 31, 2024.

Refer to Note 15 to our consolidated financial statements for additional details.

Liquidity Needs

In addition to our loan origination and funding activity and general operating expenses, our primary liquidity needs include interest and principal payments under our $12.7 billion of outstanding borrowings under secured debt, our asset-specific debt, our Term Loans, our Senior Secured Notes, and our Convertible Notes.

From time to time we may also repurchase our outstanding debt or shares of our class A common stock.

Uses of Liquidity

In addition to our loan origination and funding activity and general operating expenses, our primary uses of liquidity include interest and principal payments with respect to our $9.7 billion of outstanding borrowings under secured debt, our asset-specific debt, our Term Loans, our Senior Secured Notes, and our Convertible Notes.

During the year ended December 31, 2024, we repurchased an aggregate principal amount of $2.3 million of the B-1 Term Loan at a weighted-average price of 99%, an aggregate principal amount of $30.8 million of our Senior Secured Notes at a weighted-average price of 88%, and an aggregate principal amount of $33.8 million of the Convertible Notes at a weighted-average price of 93%.

This resulted in gains on extinguishment of debt of $25,000, $3.3 million, and $2.0 million, respectively, during the year ended December 31, 2024.

From time to time we may continue to repurchase our outstanding debt or shares of our class A common stock.

Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions, and other factors.

The amounts involved in any such purchase transactions, individually or in the aggregate, may be material.

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.

As of December 31, 2023, we had unfunded commitments of $2.4 billion related to 99 loans receivable and $1.3 billion of committed or identified financing for those commitments resulting in net unfunded commitments of $1.2 billion.

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

Under the repurchase program, repurchases may be made from time to time in open market transactions, in privately negotiated transactions, in agreements and arrangements structured in a manner consistent with Rules 10b-18 and 10b5-1 under the Exchange Act or otherwise.

The timing and the actual amounts repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions.

The repurchase program may be changed, suspended or discontinued at any time and does not have a specified expiration date.

During the year ended December 31, 2024, we repurchased 1,646,034 shares of class A common stock at a weighted-average price per share of $17.74, for a total cost of $29.2 million.

As of December 31, 2024, the amount remaining available for repurchases under the program was $120.8 million.

During the period from January 1, 2025 to February 5, 2025, we repurchased 1,792,836 shares of class A common stock at a weighted-average price per share of $17.63, for a total cost of $31.6 million.

As of December 31, 2024, we had unfunded commitments of $1.3 billion related to 60 loans receivable and $605.9 million of committed or identified financing for those commitments resulting in net unfunded commitments of $657.2 million.

The unfunded loan commitments comprise funding for capital expenditures and construction, leasing costs, and interest and carry costs.

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(1) Represents known and estimated short-term cash requirements related to our contractual obligations and commitments.

Refer to the sources of liquidity section above for our sources of funds to satisfy our short-term cash requirements.

Refer to “Sources of Liquidity” above for information about our sources of funds to satisfy our short-term cash requirements.

(2) The allocation of our unfunded loan commitments is based on the earlier of the commitment expiration date or the final loan maturity date, however we may be obligated to fund these commitments earlier than such date.

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This is only an estimate as actual amounts borrowed and interest rates will vary over time.

(7) 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.

(7) Total does not include $1.9 billion of consolidated securitized debt obligations, $817.5 million of non-consolidated senior interests, and $100.1 million of loan participations sold, as the satisfaction of these liabilities will not require cash outlays from us.

We are also required to settle our foreign exchange and interest rate derivatives with our derivative counterparties upon maturity which, depending on foreign currency exchange and interest rate movements, may result in cash received from or due to such counterparties.

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Cash flows provided by operating activities $ 366,453 $ 458,841 $ 396,825

Cash flows provided by (used in) investing activities 1,444,077 (3,253,535) (5,627,461)

Cash flows (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 flows provided by investing activities 3,497,089 1,444,077 (3,253,535)

Cash flows used in financing activities (3,882,684) (1,847,943) 2,607,224

Net (decrease) increase in cash and cash equivalents $ (19,142) $ 54,975 $ (249,486)

We experienced a net decrease in cash and cash equivalents of $19.1 million for the year ended December 31, 2024, compared to a net increase of $55.0 million for the year ended December 31, 2023.

During the year ended December 31, 2024, we (i) received $5.2 billion from loan principal collections and sales proceeds, of which $4.8 billion is reflected in our consolidated statement of cash flows prepared in accordance with GAAP, excluding $512.1 million of additional repayments or reduction of loan exposure under related non-consolidated senior interests, (ii) received $646.8 million of net proceeds from the issuance of the B-5 term loan, and (iii) received $450.0 million of net proceeds from the issuance of Senior Secured Notes.

Also, during the year ended December 31, 2024, we (i) repaid a net $2.7 billion of secured debt borrowings, (ii) funded $1.4 billion of loans, (iii) repaid $1.0 billion of secured term loans, (iv) repaid $666.0 million of securitized debt obligations, and (v) paid $404.0 million of dividends on our class A common stock.

We experienced a net increase in cash and cash equivalents of $55.0 million for the year ended December 31, 2023, compared to a net decrease of $249.5 million for the year ended December 31, 2022.

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Also, during the year ended December 31, 2023, we (i) funded $1.3 billion of loans, (ii) repaid a net $1.1 billion of secured debt borrowings, (iii) paid $426.9 million of dividends on our class A common stock, (iv) repaid $220.0 million of convertible notes, and (v) repaid $166.0 million of securitized debt obligations.

We experienced a net decrease in cash and cash equivalents of $249.5 million for the year ended December 31, 2022, compared to a net increase of $263.2 million for the year ended December 31, 2021.

During the year ended December 31, 2022, we (i) funded $6.8 billion of loans, (ii) repaid $402.5 million of convertible notes, and (iii) paid $421.4 million of dividends on our class A common stock.

During the year ended December 31, 2022, we received (i) $3.3 billion from loan principal collections and sales proceeds, (ii) $1.7 billion of net proceeds from secured debt borrowings, (iii) $807.8 million of net proceeds from secured Term Loan borrowings, (iv) $562.0 million of net proceeds from asset-specific debt, (v) $330.3 million of net cash settlements on our foreign currency forward contracts, (vi) $294.0 million of net proceeds from the issuance of convertible notes, (vii) $245.3 million from the sale of a senior loan participation, and (viii) $70.7 million of net proceeds from the issuance of shares of class A common stock.

Refer to Note 3 to our consolidated financial statements for further discussion of our loan activity.

Refer to Notes 5, 7, 8, 9, 11, and 13 to our consolidated financial statements for additional discussion of our secured debt, asset-specific debt, loan participations sold, Term Loans, convertible notes, and equity, respectively.

Refer to Notes 7, 8, and 15 to our consolidated financial statements for additional discussion of our secured debt, securitized debt obligations, and equity, respectively.

We have elected to be taxed as a REIT under the Internal Revenue Code for U.S.

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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.

As of December 31, 2024 and December 31, 2023, we were in compliance with all REIT requirements.

Furthermore, our taxable REIT subsidiaries are subject to federal, state, and local income tax on their net taxable income.

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Critical Accounting Policies

Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP.

Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial

statements, which have been prepared in accordance with GAAP.

The preparation of these financial statements requires our Manager to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.

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Current Expected Credit Losses

The current expected credit loss, or CECL, reserve required under the 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 receivable portfolio.

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 the Financial Accounting Standards Board Staff Q&A Topic 326, No.

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The sensitivity of each assumption and its impact on the CECL reserves may change over time and from period to period.

During the year ended December 31, 2023, we recorded an aggregate $249.8 million increase in the CECL reserve related to our loans receivable and unfunded loan commitments, bringing our total reserve to $592.3 million as of December 31, 2023.

During the year ended December 31, 2024, our CECL reserves increased by $154.2 million, bringing our total reserves to $746.5 million as of December 31, 2024.

See Notes 2 and 3 to our consolidated financial statements for further discussion of our CECL reserves.

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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.

Real Estate Owned

We may assume legal title or physical possession of the collateral underlying a loan through a foreclosure or the execution of a deed-in-lieu of foreclosure.

These real estate acquisitions are classified as REO on our consolidated balance sheet and are initially recognized at fair value on the acquisition date in accordance with the ASC Topic 805, “Business Combinations.”

Upon acquisition of REO, we assess the fair value of acquired tangible and intangible assets, which may include land, buildings, tenant improvements, “above-market” and “below-market” leases, acquired in-place leases, other identified intangible assets and assumed liabilities, as applicable, and allocate the fair value to the acquired assets and assumed liabilities.

We assess and consider fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that we deem appropriate, as well as other available market information.

Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends, and market and economic conditions.

We capitalize acquisition-related costs associated with asset acquisitions.

Real estate assets held for investment, except for land, are depreciated using the straight-line method over the assets’ estimated useful lives of up to 40 years for buildings and 10 years for tenant improvements.

Renovations and/or replacements that improve or extend the life of the asset are capitalized and depreciated over their estimated useful lives.

Lease intangibles are amortized over the remaining term of applicable leases on a straight-line basis.

The cost of ordinary repairs and maintenance are expensed as incurred.

Real estate assets held for investment are assessed for impairment on a quarterly basis.

If the depreciated cost basis of the asset exceeds the undiscounted cash flows over the remaining holding period, the asset is considered for impairment.

The impairment loss is recognized when the carrying value of the real estate assets exceed their fair value.

The evaluation of anticipated future cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates, capital requirements and anticipated holding periods that could differ materially from actual results.

Real estate assets are classified as held for sale in the period when they meet the criteria under ASC Topic 360 “Property, Plant, and Equipment.” Once a real estate asset is classified as held for sale, depreciation is suspended and the asset is reported at the lower of its carrying value or fair value less cost to sell.

If circumstances arise and we decide not to sell a real estate asset previously classified as held for sale, the real estate asset is reclassified as held for investment.

Upon reclassification, the real estate asset is measured at the lower of (i) its carrying amount prior to classification as held for

sale, adjusted for depreciation expense that would have been recognized had the real estate been classified as held for investment, and (ii) its estimated fair value at the time of reclassification.

As of December 31, 2024, we had seven REO assets which were all classified as held for investment.

Loan Portfolio Details

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4 Senior Loan 3/22/2018 526 526 526 +3.25 % +3.31 % 3/15/2026 Diversified, Spain Mixed-Use n / a 71 % 4

5 Senior Loan (4)

8/7/2019 571 571 116 +3.22 % +3.46 % 9/9/2025 Los Angeles Office $712 / sqft 59 % 2

6 Senior Loan 3/30/2021 477 477 474 +3.20 % +3.41 % 5/15/2026 Diversified - SE Industrial $91 / sqft 76 % 2

5 Senior Loan 7/23/2021 480 475 474 +3.60 % +4.04 % 8/9/2027 New York Multi $637,813 / unit 58 % 2

6 Senior Loan 3/30/2021 430 430 429 +3.20 % +3.41 % 5/15/2026 Diversified, SE Industrial $82 / sqft 76 % 2

7 Senior Loan (4)

11/22/2019 486 424 104 +4.75 % +4.89 % 12/9/2027 Los Angeles Office $777 / sqft 69 % 4

8 Senior Loan 6/28/2022 675 380 374 +4.60 % +5.06 % 7/9/2029 Austin Mixed-Use $316 / sqft 53 % 3

9 Senior Loan 12/9/2021 385 379 379 +2.76 % +3.00 % 12/9/2026 New York Mixed-Use $130 / sqft 50 % 2

10 Senior Loan 9/23/2019 386 361 361 +3.00 % +3.27 % 8/16/2024 Diversified - Spain Hospitality $128,685 / key 62 % 3

11 Senior Loan 4/11/2018 345 338 338 +2.25 % +2.28 % 5/1/2025 New York Office $429 / sqft 71 % 4

12 Senior Loan 10/25/2021 307 307 306 +4.00 % +4.32 % 10/25/2024 Diversified - AU Hospitality $151,079 / key 56 % 2

10 Senior Loan 4/11/2018 345 345 334 +2.25 % +2.25 % 5/1/2025 New York Office $437 / sqft n/m 5

11 Senior Loan 7/15/2021 305 305 304 +4.25 % +4.76 % 7/16/2026 Diversified, EUR Hospitality $232,778 / key 53 % 3

14 Senior Loan 5/6/2022 303 303 301 +3.50 % +3.79 % 5/6/2027 Diversified - UK Industrial $96 / sqft 53 % 2

15 Senior Loan 2/27/2020 303 302 302 +2.70 % +2.94 % 3/9/2025 New York Multi $795,074 / unit 59 % 3

16 Senior Loan 3/25/2022 296 296 295 +4.50 % +4.86 % 3/25/2027 Diversified - UK Hospitality $130,510 / key 65 % 2

12 Senior Loan 12/11/2018 356 302 304 +1.75 % +1.76 % 12/9/2026 Chicago Office $253 / sqft 78 % 4

13 Senior Loan 5/6/2022 288 288 287 +3.50 % +3.79 % 5/6/2027 Diversified, UK Industrial $91 / sqft 53 % 2

14 Senior Loan 9/29/2021 293 288 287 +2.81 % +3.03 % 10/9/2026 Washington, DC Office $375 / sqft 66 % 2

19 Senior Loan 11/30/2018 286 286 270 7.90 % 7.90 % 8/9/2025 New York Hospitality $306,870 / key 73 % 5

20 Senior Loan 10/23/2018 290 284 283 +2.86 % +3.01 % 11/9/2024 Atlanta Mixed-Use $265 / sqft 64 % 2

15 Senior Loan 11/30/2018 286 286 251 +2.43 % +2.43 % 8/9/2025 New York Hospitality $306,870 / key n/m 5

16 Senior Loan 12/23/2021 323 278 273 +4.25 % +4.96 % 6/24/2028 London, UK Multi $306,990 / unit 59 % 3

17 Senior Loan 9/30/2021 277 277 277 +2.61 % +2.88 % 9/30/2026 Dallas Multi $146,437 / unit 74 % 3

18 Senior Loan (4)

11/10/2021 362 272 54 +4.21 % +4.75 % 12/9/2026 San Francisco Life Sciences $505 / sqft 66 % 4

19 Senior Loan 2/27/2020 273 267 267 +2.70 % +2.83 % 1/9/2027 New York Multi $702,969 / unit 59 % 3

20 Senior Loan 1/11/2019 266 266 266 +5.11 % +5.06 % 6/14/2028 Diversified, UK Other $263 / sqft 74 % 3

23 Senior Loan 6/8/2022 272 264 262 +3.65 % +4.00 % 6/9/2027 New York Office $1,475 / sqft 75 % 3

24 Senior Loan 11/30/2018 260 260 260 +4.80 % +4.80 % 12/9/2024 San Francisco Hospitality $378,454 / key 73 % 5

21 Senior Loan 9/14/2021 255 255 255 +2.61 % +2.86 % 9/14/2026 Dallas Multi $206,610 / unit 72 % 3

22 Senior Loan 1/26/2022 338 239 237 +4.10 % +4.72 % 2/9/2027 Seattle Office $501 / sqft 56 % 3

23 Senior Loan 9/30/2021 235 235 235 +7.11 % +7.11 % 10/9/2028 Chicago Office $260 / sqft n/m 5

24 Senior Loan 2/23/2022 245 234 234 +2.60 % +2.84 % 3/9/2027 Reno Multi $217,602 / unit 74 % 3

27 Senior Loan (7)

9/16/2021 229 229 229 +1.63 % +1.63 % 11/9/2025 San Francisco Office $277 / sqft 53 % 4

28 Senior Loan 6/28/2022 675 223 216 +4.60 % +5.07 % 7/9/2029 Austin Mixed-Use $185 / sqft 53 % 3

25 Senior Loan 12/22/2016 252 222 216 +10.50 % +10.50 % 6/9/2028 New York Mixed-Use $313 / sqft n/m 5

26 Senior Loan 7/16/2021 229 218 218 +3.25 % +3.51 % 2/15/2027 London, UK Multi $224,094 / unit 69 % 2

27 Senior Loan (4)

11/10/2021 362 218 43 +4.11 % +4.93 % 12/9/2026 San Francisco Life Sciences $414 / sqft 66 % 3

3/29/2022 235 208 41 +3.70 % +4.22 % 4/9/2027 Miami Multi $354,245 / unit 72 % 3

28 Senior Loan 6/28/2019 205 205 205 +4.00 % +4.74 % 6/26/2026 London, UK Office $494 / sqft 71 % 3

29 Senior Loan 6/27/2019 199 199 198 +2.80 % +2.93 % 8/15/2026 Berlin, DEU Office $417 / sqft 62 % 4

30 Senior Loan (4)

3/17/2022 222 197 247 +2.82 % +2.97 % 6/30/2025 London, UK Office $768 / sqft 50 % 3

Loan Type (1)

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SQFT / Unit / Key Origination

31 Senior Loan 12/22/2016 $ 252 $ 212 $ 206 +10.50 % +10.50 % 6/9/2028 New York Office $299 / sqft 64 % 5

32 Senior Loan 6/27/2019 212 211 210 +2.80 % +2.94 % 8/15/2026 Berlin - DEU Office $442 / sqft 62 % 3

33 Senior Loan 4/23/2021 219 209 203 +3.65 % +3.65 % 5/9/2024 Washington, DC Office $234 / sqft 57 % 5

34 Senior Loan 6/28/2019 208 208 208 +3.82 % +4.08 % 6/26/2024 London - UK Office $502 / sqft 71 % 3

35 Senior Loan 8/31/2017 203 203 188 +2.62 % +2.62 % 1/9/2024 Orange County Office $236 / sqft 64 % 5

36 Senior Loan 9/30/2021 256 203 202 +3.11 % +3.50 % 10/9/2028 Chicago Office $224 / sqft 74 % 4

31 Senior Loan 7/29/2022 $ 199 $ 191 $ 189 +4.60 % +5.60 % 7/27/2027 London, UK Industrial $251 / sqft 52 % 3

38 Senior Loan 9/25/2019 187 187 187 +4.47 % +4.84 % 9/26/2024 London - UK Office $873 / sqft 72 % 3

39 Senior Loan 11/23/2018 186 186 186 +2.68 % +2.92 % 2/15/2024 Diversified - UK Office $1,151 / sqft 50 % 3

40 Senior Loan 12/21/2021 192 186 185 +2.82 % +3.11 % 4/29/2027 London - UK Industrial $377 / sqft 67 % 3

32 Senior Loan (7)

7/23/2021 244 184 183 -1.30 % -0.92 % 8/9/2028 New York Office $596 / sqft 53 % 4

42 Senior Loan 2/15/2022 191 180 179 +2.90 % +3.14 % 3/9/2027 Denver Office $358 / sqft 61 % 4

43 Senior Loan 1/27/2022 178 177 176 +3.10 % +3.40 % 2/9/2027 Dallas Multi $115,406 / unit 71 % 3

33 Senior Loan 2/15/2022 191 181 170 +2.90 % +2.90 % 3/9/2027 Denver Office $361 / sqft n/m 5

34 Senior Loan 5/13/2021 199 179 179 +3.66 % +3.92 % 6/9/2026 Boston Life Sciences $910 / sqft 64 % 4

35 Senior Loan 1/27/2022 178 177 177 +3.10 % +3.40 % 2/9/2027 Dallas Multi $115,681 / unit 71 % 3

36 Senior Loan 3/9/2022 169 169 168 +2.95 % +3.17 % 8/15/2027 Diversified, UK Retail $144 / sqft 55 % 2

46 Senior Loan 12/17/2021 168 165 165 +3.95 % +4.33 % 1/9/2026 Diversified - US Other $5,601 / unit 48 % 1

47 Senior Loan 10/7/2021 165 161 160 +3.25 % +3.49 % 10/9/2025 Los Angeles Office $327 / sqft 68 % 4

48 Senior Loan 3/7/2022 156 156 156 +3.45 % +3.63 % 6/9/2026 Los Angeles Hospitality $624,000 / key 64 % 3

49 Senior Loan (4)

3/17/2022 225 156 205 +2.52 % +4.38 % 6/30/2025 London - UK Office $700 / sqft 50 % 3

50 Senior Loan 1/17/2020 203 154 154 +2.86 % +3.00 % 2/9/2025 New York Mixed-Use $128 / sqft 43 % 3

37 Senior Loan 5/27/2021 184 162 162 +2.31 % +2.57 % 6/9/2026 Atlanta Office $136 / sqft 66 % 4

38 Senior Loan 9/30/2021 178 159 158 +4.00 % +4.67 % 9/30/2026 Diversified, Spain Hospitality $136,941 / key 60 % 3

39 Senior Loan 1/17/2020 203 157 157 +3.12 % +3.39 % 2/9/2025 New York Mixed-Use $130 / sqft 43 % 3

40 Senior Loan 3/7/2022 156 156 156 +3.45 % +3.63 % 6/9/2026 Los Angeles Hospitality $624,000 / key 64 % 3

41 Senior Loan 12/21/2021 155 155 155 +2.83 % +3.15 % 4/29/2027 London, UK Industrial $313 / sqft 67 % 3

42 Senior Loan 6/4/2018 153 153 153 +4.00 % +4.24 % 6/9/2025 New York Hospitality $251,647 / key 52 % 3

43 Senior Loan 1/7/2022 155 152 152 +3.70 % +3.97 % 1/9/2027 Fort Lauderdale Office $392 / sqft 55 % 1

54 Senior Loan 12/23/2021 329 150 145 +4.25 % +5.22 % 6/24/2028 London - UK Multi $165,256 / unit 59 % 3

55 Senior Loan 9/30/2021 189 148 146 +4.00 % +4.51 % 9/30/2026 Diversified - Spain Hospitality $127,539 / key 60 % 3

44 Senior Loan 2/20/2019 152 148 148 +4.62 % +4.91 % 2/19/2025 London, UK Office $597 / sqft 61 % 3

1 unchanged sentence

9/30/2021 145 145 195 +7.96 % +7.96 % 10/9/2026 Boca Raton Multi $396,175 / unit 58 % 3

46 Senior Loan (4)

12/30/2021 228 142 28 +4.00 % +4.91 % 1/9/2028 Los Angeles Multi $406,702 / unit 50 % 3

47 Senior Loan 11/18/2021 141 141 141 +3.25 % +3.51 % 11/18/2026 London, UK Other $178 / sqft 65 % 2

59 Senior Loan 12/20/2019 143 143 143 +3.22 % +3.44 % 12/18/2026 London - UK Office $729 / sqft 75 % 3

60 Senior Loan 3/10/2020 140 140 140 +3.10 % +3.10 % 10/11/2024 New York Mixed-Use $854 / sqft 53 % 5

Loan Type (1)

Location Property Type Loan Per

SQFT / Unit / Key Origination

61 Senior Loan 2/25/2022 $ 139 $ 139 $ 138 +4.05 % +4.43 % 2/25/2027 Copenhagen - DK Industrial $79 / sqft 69 % 2

62 Senior Loan 1/26/2022 338 137 134 +4.10 % +4.70 % 2/9/2027 Seattle Office $286 / sqft 56 % 3

48 Senior Loan 12/20/2019 141 141 141 +3.22 % +3.22 % 1/20/2025 London, UK Office $713 / sqft n/m 5

49 Senior Loan 8/24/2021 156 133 133 +2.71 % +2.98 % 9/9/2026 San Jose Office $317 / sqft 65 % 4

64 Senior Loan (4)

3/29/2022 224 132 26 +4.50 % +5.67 % 4/9/2027 Miami Multi $224,248 / unit 72 % 3

65 Senior Loan 9/14/2021 132 129 129 +2.81 % +3.07 % 10/9/2026 San Bernardino Multi $260,871 / unit 75 % 3

66 Senior Loan 6/30/2022 129 129 129 +3.75 % +3.93 % 9/30/2025 Canberra - AU Hospitality $251,317 / key 60 % 2

50 Senior Loan 12/15/2021 130 128 128 +2.75 % +3.00 % 12/9/2026 Dublin, IE Multi $321,083 / unit 79 % 3

68 Senior Loan 5/20/2021 150 126 123 +3.76 % +3.76 % 6/9/2026 San Jose Office $322 / sqft 65 % 5

69 Senior Loan 3/29/2021 130 125 125 +4.02 % +4.61 % 3/29/2026 Diversified - UK Multi $54,881 / unit 61 % 3

70 Senior Loan 4/6/2021 123 122 122 +3.31 % +3.60 % 4/9/2026 Los Angeles Office $508 / sqft 65 % 3

71 Senior Loan 6/1/2021 120 120 120 +2.96 % +3.17 % 6/9/2026 Miami Multi $298,507 / unit 61 % 2

51 Senior Loan 9/14/2021 128 127 126 +2.81 % +3.05 % 10/9/2026 San Bernardino Multi $255,362 / unit 75 % 3

52 Senior Loan 5/20/2021 150 126 112 +8.76 % +8.76 % 4/9/2025 San Jose Office $323 / sqft n/m 5

53 Senior Loan 11/23/2018 125 125 124 +3.50 % +3.74 % 11/15/2029 Diversified, UK Office $922 / sqft 50 % 3

54 Senior Loan 3/28/2022 130 125 125 +2.55 % +2.80 % 4/9/2027 Miami Office $330 / sqft 69 % 3

73 Senior Loan 4/29/2022 118 118 118 +3.50 % +3.77 % 2/18/2027 Napa Valley Hospitality $1,240,799 / key 66 % 3

55 Senior Loan 11/27/2024 125 125 124 +2.80 % +3.17 % 12/9/2029 Miami Multi $260,417 / unit 71 % 3

56 Senior Loan 8/27/2021 122 121 121 +3.11 % +3.35 % 9/9/2026 San Diego Retail $458 / sqft 58 % 3

75 Senior Loan 6/28/2019 125 117 117 +2.87 % +3.13 % 2/1/2024 Los Angeles Studio $591 / sqft 48 % 3

57 Senior Loan 6/1/2021 120 120 120 +2.96 % +3.11 % 6/9/2026 Miami Multi $298,507 / unit 61 % 2

58 Senior Loan 12/10/2021 135 120 120 +3.11 % +3.42 % 1/9/2027 Miami Office $400 / sqft 49 % 2

59 Senior Loan 12/21/2021 120 119 119 +2.70 % +3.00 % 1/9/2027 Washington, DC Office $408 / sqft 68 % 4

60 Senior Loan 4/29/2022 118 118 118 +3.50 % +3.77 % 2/18/2027 Napa Valley Hospitality $1,240,799 / key 66 % 3

Loan Type (1)

Location Property Type Loan Per

SQFT / Unit / Key Origination

61 Senior Loan 7/15/2019 $ 136 $ 116 $ 115 +3.01 % +3.22 % 8/9/2028 Houston Office $209 / sqft 58 % 4

78 Senior Loan 10/21/2021 114 114 114 +3.01 % +3.26 % 11/9/2025 Fort Lauderdale Multi $334,311 / unit 64 % 2

79 Senior Loan 12/10/2021 135 111 110 +3.11 % +3.42 % 1/9/2027 Miami Office $370 / sqft 49 % 3

80 Senior Loan 3/13/2018 123 108 108 +3.11 % +3.34 % 4/9/2027 Honolulu Hospitality $167,735 / key 50 % 3

62 Senior Loan 12/29/2021 110 110 110 +2.85 % +3.02 % 1/9/2027 Phoenix Multi $189,003 / unit 64 % 3

63 Senior Loan 3/29/2021 110 110 110 +4.02 % +4.28 % 3/29/2026 Diversified, UK Multi $48,124 / unit 61 % 3

64 Senior Loan 6/28/2019 109 109 109 +3.75 % +4.01 % 2/1/2026 Los Angeles Studio $551 / sqft 48 % 3

65 Senior Loan 3/10/2020 109 109 109 +3.00 % +3.00 % 7/11/2029 New York Mixed-Use $665 / sqft 53 % 3

66 Senior Loan 3/13/2018 108 108 108 +3.11 % +3.36 % 4/9/2027 Honolulu Hospitality $166,803 / key 50 % 3

67 Senior Loan 2/15/2022 106 105 105 +2.85 % +3.19 % 3/9/2027 Tampa Multi $241,437 / unit 73 % 2

83 Senior Loan 3/29/2022 103 102 102 +2.70 % +2.96 % 4/9/2027 Miami Multi $284,656 / unit 75 % 3

84 Senior Loan 11/27/2019 104 102 101 +2.86 % +3.12 % 12/9/2024 Minneapolis Office $102 / sqft 64 % 3

68 Senior Loan 8/31/2017 105 105 105 +2.62 % +2.62 % 9/9/2026 Orange County Office $162 / sqft 58 % 4

69 Senior Loan 9/23/2019 108 102 102 +3.50 % +3.65 % 8/16/2027 Diversified, Spain Hospitality $118,796 / key 62 % 2

70 Senior Loan 11/27/2019 104 102 100 +7.86 % +7.86 % 7/9/2025 Minneapolis Office $93 / sqft n/m 5

71 Senior Loan 1/30/2020 99 99 99 +3.50 % +3.68 % 2/9/2027 Honolulu Hospitality $268,794 / key 63 % 3

86 Senior Loan 10/1/2021 101 100 100 +2.86 % +3.13 % 10/1/2026 Phoenix Multi $231,021 / unit 77 % 3

87 Senior Loan 4/3/2018 100 99 99 +2.86 % +3.03 % 4/9/2024 Dallas Retail $601 / sqft 64 % 3

72 Senior Loan 6/18/2021 99 99 98 +2.71 % +2.95 % 7/9/2026 New York Industrial $51 / sqft 55 % 1

89 Senior Loan 6/14/2021 100 96 92 +3.81 % +3.81 % 7/9/2024 Miami Office $203 / sqft 65 % 5

73 Senior Loan 3/29/2022 97 97 98 +1.80 % +2.69 % 4/9/2027 Miami Multi $271,118 / unit 75 % 4

74 Senior Loan 10/1/2021 96 96 97 +1.86 % +2.79 % 10/1/2026 Phoenix Multi $223,242 / unit 77 % 4

75 Senior Loan 10/28/2021 96 96 95 +3.00 % +3.24 % 11/9/2026 Philadelphia Multi $352,399 / unit 79 % 3

Loan Type (1)

Location Property Type Loan Per

SQFT / Unit / Key Origination

91 Senior Loan 12/21/2018 $ 98 $ 94 $ 92 +2.71 % +2.71 % 1/9/2024 Chicago Office $182 / sqft 72 % 5

92 Senior Loan 3/25/2020 94 94 93 +2.40 % +2.67 % 3/31/2025 Diversified - NL Multi $114,143 / unit 65 % 2

76 Senior Loan 12/21/2018 95 95 87 +2.71 % +2.71 % 12/9/2024 Chicago Office $185 / sqft n/m 5

77 Senior Loan 10/27/2021 93 93 93 +2.61 % +2.81 % 11/9/2026 Orlando Multi $155,612 / unit 75 % 3

94 Senior Loan 4/1/2021 102 93 90 +7.41 % +7.41 % 4/9/2026 San Jose Office $621 / sqft 67 % 5

78 Senior Loan 9/13/2024 94 93 92 +3.25 % +4.11 % 11/9/2027 Seattle Multi $500,796 / unit 68 % 3

79 Senior Loan 3/3/2022 92 92 92 +3.45 % +3.76 % 3/9/2027 Boston Hospitality $418,182 / key 64 % 2

96 Senior Loan 12/22/2021 91 91 90 +3.18 % +3.44 % 1/9/2027 Las Vegas Multi $205,682 / unit 65 % 3

97 Senior Loan 12/15/2021 91 90 90 +2.96 % +3.22 % 1/9/2027 Charlotte Multi $256,393 / unit 76 % 4

98 Senior Loan 12/15/2021 89 89 88 +4.00 % +4.29 % 12/15/2026 Melbourne - AU Multi $64,829 / unit 38 % 2

99 Senior Loan 10/16/2018 88 88 88 +3.36 % +3.36 % 11/9/2024 San Francisco Hospitality $191,807 / key 72 % 5

80 Senior Loan 10/16/2018 88 88 88 +7.36 % +7.36 % 5/9/2025 San Francisco Hospitality $191,807 / key n/m 5

81 Senior Loan 6/14/2022 106 88 88 +2.95 % +3.84 % 7/9/2027 San Francisco Mixed-Use $182 / sqft 76 % 4

82 Senior Loan 3/25/2020 88 88 88 +2.40 % +2.66 % 3/31/2025 Diversified, NL Multi $105,769 / unit 65 % 2

83 Senior Loan 6/25/2021 85 85 86 +2.86 % +3.10 % 7/1/2026 St.

Louis Multi $80,339 / unit 70 % 2

101 Senior Loan 6/27/2019 88 85 85 +2.75 % +2.99 % 7/9/2024 West Palm Beach Office $294 / sqft 70 % 2

102 Senior Loan 6/14/2022 106 85 84 +2.95 % +3.30 % 7/9/2027 San Francisco Mixed-Use $175 / sqft 76 % 3

103 Senior Loan 3/9/2022 92 84 84 +2.90 % +3.43 % 3/9/2025 Boston Office $222 / sqft 68 % 4

104 Senior Loan 3/31/2017 84 84 84 +9.41 % +9.41 % 4/9/2024 New York Office $403 / sqft 64 % 5

84 Senior Loan 7/29/2021 82 82 82 +2.76 % +3.01 % 8/9/2026 Charlotte Multi $223,735 / unit 78 % 3

85 Senior Loan 12/15/2021 80 80 80 +3.25 % +3.54 % 12/15/2026 Melbourne, AU Multi $58,890 / unit 38 % 1

86 Senior Loan 8/27/2021 79 78 78 +4.35 % +4.59 % 9/9/2026 Diversified - US Hospitality $116,168 / key 67 % 3

107 Senior Loan 11/23/2021 92 77 77 +2.85 % +3.17 % 12/9/2026 Los Angeles Industrial $219 / sqft 66 % 3

108 Senior Loan (4)

12/30/2021 228 73 14 +4.00 % +5.07 % 1/9/2028 Los Angeles Multi $209,770 / unit 50 % 3

87 Senior Loan 12/21/2021 74 72 72 +2.70 % +3.06 % 1/9/2027 Tampa Multi $212,924 / unit 77 % 3

110 Senior Loan 8/14/2019 70 70 70 +2.56 % +2.80 % 9/9/2024 Los Angeles Office $684 / sqft 57 % 3

111 Senior Loan 8/17/2022 78 70 70 +3.35 % +3.83 % 8/17/2027 Dublin - IE Industrial $109 / sqft 72 % 3

88 Senior Loan 10/28/2021 69 69 69 +2.66 % +2.86 % 11/9/2026 Tacoma Multi $209,864 / unit 70 % 3

89 Senior Loan 8/17/2022 74 67 67 +3.35 % +3.83 % 8/17/2027 Dublin, IE Industrial $104 / sqft 72 % 3

90 Senior Loan 8/16/2022 66 66 66 +4.75 % +5.19 % 8/16/2027 London, UK Hospitality $491,369 / key 64 % 3

114 Senior Loan 3/24/2022 65 65 65 +3.50 % +3.59 % 4/1/2027 Fairfield Multi $406,250 / unit 70 % 3

115 Senior Loan 7/30/2021 67 65 65 +2.61 % +2.87 % 8/9/2026 Los Angeles Multi $169,297 / unit 70 % 2

116 Senior Loan 3/31/2022 70 65 64 +2.80 % +3.14 % 4/9/2027 Las Vegas Multi $141,534 / unit 71 % 3

117 Senior Loan 12/17/2021 66 65 65 +4.35 % +4.42 % 1/9/2026 Diversified - US Other $4,886 / unit 37 % 1

118 Senior Loan 3/31/2021 62 62 62 +4.14 % +4.45 % 4/1/2024 Boston Multi $316,327 / unit 75 % 3

119 Senior Loan 7/30/2021 62 62 62 +2.86 % +3.06 % 8/9/2026 Salt Lake City Multi $224,185 / unit 73 % 3

120 Senior Loan 4/15/2021 66 61 61 +3.06 % +3.34 % 5/9/2026 Austin Office $296 / sqft 73 % 4

Loan Type (1)

1 unchanged sentence

SQFT / Unit / Key Origination

91 Senior Loan 3/31/2022 $ 70 $ 65 $ 65 +2.80 % +3.14 % 4/9/2027 Las Vegas Multi $143,130 / unit 71 % 3

92 Senior Loan 12/17/2021 65 65 65 +4.35 % +4.59 % 1/9/2026 Diversified - US Other $4,886 / unit 37 % 1

93 Senior Loan 7/30/2021 62 62 62 +2.86 % +3.06 % 8/9/2026 Salt Lake City Multi $224,185 / unit 73 % 3

94 Senior Loan 4/6/2021 62 62 62 6.00 % % 6.00 % % 1/9/2030 Los Angeles Office $254 / sqft 65 % 3

95 Senior Loan 6/30/2021 65 61 61 +2.95 % +3.20 % 7/9/2026 Nashville Office $252 / sqft 71 % 4

122 Senior Loan (4)

3/23/2020 59 59 12 +3.82 % +4.60 % 4/9/2025 Nashville Office $90 / sqft 60 % 1

123 Senior Loan 12/17/2021 58 58 58 +2.65 % +2.85 % 1/9/2027 Phoenix Multi $209,601 / unit 69 % 3

124 Senior Loan 7/16/2021 58 58 58 +2.75 % +3.03 % 8/1/2025 Orlando Multi $195,750 / unit 74 % 2

96 Senior Loan 4/26/2024 69 61 61 +4.95 % +5.62 % 5/9/2029 Bermuda Hospitality $693,780 / key 39 % 2

97 Senior Loan 12/10/2020 61 60 60 +3.30 % +3.55 % 1/9/2026 Fort Lauderdale Office $207 / sqft 68 % 3

126 Senior Loan 11/11/2021 55 55 56 +6.07 % +6.81 % 8/12/2026 London - UK Hospitality $197,559 / key 40 % 3

98 Senior Loan 12/17/2021 58 58 58 +2.65 % +2.85 % 1/9/2027 Phoenix Multi $209,601 / unit 69 % 3

99 Senior Loan 6/14/2021 58 58 58 +2.30 % +2.30 % 3/9/2027 Miami Office $122 / sqft 65 % 3

100 Mezzanine Loan (8)

8/31/2017 64 56 39 +2.82 % +2.82 % 9/9/2026 Orange County Office $249 / sqft n/m 5

101 Senior Loan 8/5/2021 56 54 54 +2.96 % +3.21 % 8/9/2026 Denver Office $205 / sqft 70 % 3

102 Senior Loan 12/14/2018 54 54 54 +3.01 % +3.28 % 1/9/2025 Diversified - US Industrial $40 / sqft 57 % 1

103 Senior Loan 7/28/2021 53 53 53 +2.75 % +2.99 % 8/9/2026 Los Angeles Multi $303,097 / unit 71 % 3

104 Senior Loan 12/12/2024 61 53 53 +2.85 % +3.23 % 1/9/2030 Minneapolis Industrial $75 / sqft 59 % 3

105 Senior Loan 8/22/2019 53 53 53 +2.66 % +2.66 % 3/9/2025 Los Angeles Office $307 / sqft 63 % 4

130 Senior Loan 12/14/2018 54 54 54 +3.01 % +3.27 % 1/9/2025 Diversified - US Industrial $40 / sqft 57 % 1

106 Senior Loan 4/7/2022 57 52 52 +3.25 % +3.48 % 4/9/2027 Denver Office $152 / sqft 59 % 4

132 Senior Loan 12/9/2021 51 51 51 +2.75 % +2.89 % 1/1/2027 Portland Multi $241,825 / unit 65 % 3

133 Senior Loan 2/17/2021 53 51 51 +3.66 % +3.86 % 3/9/2026 Miami Multi $290,985 / unit 64 % 2

134 Senior Loan 2/1/2022 80 51 50 +4.50 % +6.37 % 2/1/2027 Diversified - UK Life Sciences $391 / sqft 45 % 3

107 Senior Loan 7/20/2021 48 48 48 +2.86 % +3.11 % 8/9/2026 Los Angeles Multi $366,412 / unit 60 % 3

136 Senior Loan 9/23/2021 49 49 49 +2.75 % +2.86 % 10/1/2026 Portland Multi $232,938 / unit 65 % 3

137 Senior Loan 7/20/2021 48 48 48 +2.86 % +3.21 % 8/9/2026 Los Angeles Multi $366,412 / unit 60 % 3

138 Senior Loan 10/21/2022 48 48 48 +4.14 % +4.51 % 10/18/2027 Diversified - DEU Industrial $68 / sqft 74 % 3

139 Senior Loan 4/7/2022 57 48 47 +3.25 % +3.54 % 4/9/2027 Denver Office $140 / sqft 59 % 3

140 Senior Loan 12/29/2021 47 47 46 +2.85 % +2.96 % 1/1/2027 Dallas Multi $155,000 / unit 73 % 3

108 Senior Loan 11/30/2016 55 46 46 +3.33 % +3.82 % 12/9/2025 Chicago Retail $804 / sqft 54 % 4

142 Senior Loan 7/30/2021 45 45 45 +2.75 % +2.86 % 8/1/2026 Portland Multi $62,378 / unit 64 % 3

109 Senior Loan 10/21/2022 45 45 45 +4.14 % +4.51 % 10/18/2027 Diversified, DEU Industrial $62 / sqft 74 % 2

110 Senior Loan 12/8/2021 48 44 44 +2.75 % +2.96 % 12/9/2026 Columbus Multi $143,150 / unit 69 % 2

144 Senior Loan 7/29/2021 42 42 42 +2.86 % +3.06 % 8/9/2026 Las Vegas Multi $167,113 / unit 72 % 2

145 Senior Loan 3/11/2014 41 41 41 1.50 % 1.50 % 11/9/2028 New York Multi $464,425 / unit 65 % 5

146 Senior Loan 11/3/2021 41 41 41 +2.71 % +3.05 % 11/9/2026 Washington, DC Multi $137,788 / unit 68 % 2

111 Senior Loan 12/29/2021 43 43 43 +2.85 % +2.96 % 1/1/2027 Dallas Multi $144,167 / unit 73 % 3

148 Senior Loan 10/1/2019 38 38 38 +3.80 % +4.05 % 10/9/2025 Atlanta Hospitality $216,005 / key 74 % 3

112 Senior Loan 7/29/2021 42 42 42 +2.86 % +3.06 % 8/9/2026 Las Vegas Multi $167,113 / unit 72 % 2

113 Senior Loan 3/31/2022 42 38 38 +2.80 % +3.15 % 4/9/2027 Las Vegas Multi $149,146 / unit 72 % 3

114 Senior Loan 2/26/2021 36 36 36 +3.50 % +3.74 % 3/9/2026 Austin Multi $196,228 / unit 64 % 1

115 Senior Loan 12/23/2021 35 35 35 +1.71 % +2.61 % 11/15/2025 New York Multi $173,053 / unit 68 % 2

116 Mezzanine Loan 3/10/2020 35 35 34 +3.00 % +3.00 % 7/11/2029 New York Mixed-Use $665 / sqft n/m 5

117 Senior Loan 12/23/2021 35 35 35 +2.90 % +3.19 % 1/1/2025 Jersey City Multi $110,472 / unit 46 % 3

118 Senior Loan 3/1/2022 35 35 35 +3.00 % +3.34 % 3/9/2027 Los Angeles Multi $372,340 / unit 72 % 3

119 Senior Loan 12/23/2021 35 35 35 +2.76 % +2.96 % 4/26/2025 Corvallis Multi $96,713 / unit 71 % 1

120 Senior Loan 12/23/2021 35 35 35 +3.11 % +3.33 % 2/1/2026 New York Office $247 / sqft 30 % 3

Loan Type (1)

1 unchanged sentence

SQFT / Unit / Key Origination

151 - 178 Senior Loan Various 829 799 797 +3.11 % +3.57 % 1.9 yrs Various Various Various 62 % 2.2

121 Senior Loan 11/19/2020 $ 38 $ 32 $ 32 +3.50 % +3.76 % 12/9/2025 Chicago Multi $184,388 / unit 53 % 1

122 Senior Loan 11/3/2021 32 32 32 +2.71 % +2.96 % 11/9/2026 Atlanta Multi $182,093 / unit 53 % 3

123 Senior Loan 4/15/2021 36 31 31 +3.06 % +3.06 % 12/9/2029 Austin Office $153 / sqft 73 % 4

124 Senior Loan 11/19/2020 28 28 28 +3.50 % +3.74 % 12/9/2025 Charlotte Multi $178,019 / unit 61 % 1

125 Senior Loan 11/3/2021 27 27 27 +2.71 % +2.96 % 11/9/2026 Dallas Multi $160,023 / unit 57 % 2

126 Senior Loan 8/26/2022 26 26 26 +4.50 % +4.94 % 6/23/2029 Melbourne, AU Multi $276,485 / unit 68 % 3

127 Mezzanine Loan 4/15/2021 24 24 20 +5.00 % +5.00 % 12/9/2029 Austin Office $153 / sqft n/m 5

128 Senior Loan 10/1/2019 23 23 23 +3.80 % +4.03 % 10/9/2025 Atlanta Hospitality $129,442 / key 74 % 3

129 Senior Loan 8/4/2021 22 22 22 +2.86 % +3.13 % 8/9/2026 Las Vegas Multi $180,000 / unit 73 % 3

130 Senior Loan 6/25/2021 12 12 12 +2.86 % +3.10 % 7/1/2026 St.

Louis Multi $21,273 / unit 63 % 1

CECL reserve (734)

1 unchanged sentence

(1) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans.

(2) Date loan was originated or acquired by us, and the LTV as of such date, excluding any junior participations sold.

(2) Date loan was originated or acquired by us, and the LTV as of such date, excluding any loans that are impaired and any junior participations sold.

Origination dates are subsequently updated to reflect material loan modifications.

1 unchanged sentence

(4) Total loan exposure reflects our aggregate exposure to each loan investment.

(5) The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, and other indices as applicable to each loan.

As of December 31, 2023, 99% of our loans by total loan exposure earned a floating rate of interest, primarily indexed to SOFR.

The remaining 1% of our loans by total loan exposure earned a fixed rate of interest.

As of December 31, 2024, substantially all of our loans by total loan exposure earned a floating rate of interest, primarily indexed to SOFR.

In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees.

Excludes loans accounted for under the cost-recovery method.

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

(6) Maximum maturity assumes all extension options are exercised, however our loans may be repaid prior to such date.

(7) This loan earns interest at a fixed rate.

Cash coupon and all-in yield are expressed as a floating rate to include an interest rate swap we entered into that effectively converts the loan to a floating rate exposure.

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

(7) This loan has an interest rate of SOFR minus 1.30% with a SOFR floor of 3.50%, for an all-in rate of 3.03% as of December 31, 2024.

(8) Loan consists of one or more floating and fixed rate tranches.

The fixed rate tranche is reflected as a spread over the relevant floating benchmark rate for both coupon and all-in yield.

REO Asset Details

The following table provides details of our REO asset as of December 31, 2024 ($ in thousands):

Acquisition Date

Property Type

Acquisition Date Fair Value

SQFT / Unit / Key

1 March 2024 Mountain View, CA Office $ 60,203 150,507 sqft

2 July 2024 San Antonio, TX Multifamily 33,607 388 units

3 September 2024 Burlington, MA Office 64,628 379,018 sqft

4 October 2024 Washington, DC Office 107,016 892,480 sqft

5 December 2024 San Francisco, CA Hospitality 201,530 686 keys

6 December 2024 El Segundo, CA Office 145,363 494,532 sqft

7 December 2024 Denver, CO Office 33,337 170,304 sqft

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis