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Item 9A. Controls and Procedures

2025-02-12 compared with 2024-02-14 · 699 added, 346 removed, 1708 unchanged (38% of the section changed)

3 unchanged sentences

Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this annual report on Form 10-K was made under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer.

An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Annual Report on Form 10-K was made under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial

Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (a) are effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

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Section 13(r) Disclosure

Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) of the Exchange Act, we hereby incorporate by reference herein Exhibit 99.1 of this report, which includes disclosures regarding activities at Mundys S.p.A., formerly “Atlantia S.p.A.,” which may be, or may have been at the time considered to be, an affiliate of Blackstone and, therefore, our affiliate.

Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) of the Exchange Act, we hereby incorporate by reference herein Exhibit 99.1 of this report, which includes disclosures regarding activities at Mundys S.p.A., which may be, or may have been at the time considered to be, an affiliate of Blackstone and, which may be, or may have been at the time considered to be, our affiliate.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

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Form of 3.750% Senior Secured Notes due 2027 (included as Exhibit B to Exhibit 4.5)

4.7 Indenture, dated December 10, 2024, among the Company, the Guarantors and The Bank of New York Mellon Trust Company, N.A., as trustee and collateral agent (filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No.

1-14788) filed on December 11, 2024 and incorporated herein by reference)

4.8 Form of 7.750% Senior Secured Notes due 2029.

(included as Exhibit A to Exhibit 4.7)

4.9 Pledge and Security Agreement, dated as of October 5, 2021, by and among Blackstone Mortgage Trust, Inc., the other grantors from time to time party thereto and The Bank of New York Mellon Trust Company, N.A., as collateral agent (filed as Exhibit 4.3 to the Registrant’s Current Report on Form 8-K (File No.

1-14788) filed on October 5, 2021 and incorporated herein by reference)

4.10 Pledge and Security Agreement, dated as of December 10, 2024, by and among Blackstone Mortgage Trust, Inc., the other grantors from time to time party thereto and The Bank of New York Mellon Trust Company, N.A., as collateral agent (filed as Exhibit 4.3 to the Registrant’s Current Report on Form 8-K (File No.

1-14788) filed on December 11, 2024 and incorporated herein by reference)

4.11 First Lien Intercreditor Agreement, dated as of October 5, 2021, by and among Blackstone Mortgage Trust, Inc., JPMorgan Chase Bank, N.A., as agent under the Term Loan Credit Agreement, and The Bank of New York Mellon Trust Company, N.A., as trustee and notes collateral agent (filed as Exhibit 4.4 to the Registrant’s Current Report on Form 8-K (File No.

1-14788) filed on October 5, 2021 and incorporated herein by reference)

4.12 Joinder No.

1 to First Lien Intercreditor Agreement, dated as of December 10, 2024, by and among Blackstone Mortgage Trust, Inc., the grantors party thereto and the other parties thereto (filed as Exhibit 4.5 to the Registrant’s Current Report on Form 8-K (File No.

1-14788) filed on December 11, 2024 and incorporated herein by reference)

Second Amended and Restated Management Agreement, dated as of October 23, 2014, by and between Blackstone Mortgage Trust, Inc.

33 unchanged sentences

+ Summary of Terms of Awards of Deferred Stock Units under Blackstone Mortgage Trust, Inc.

Stock Incentive Plan

Stock Incentive Plan (filed as Exhibit 10.11 to the Registrant ’ s Annual Report on Form 10- K (File No.

1 -14788) filed on February 14, 2024 and inc orporated herein by reference)

Blackstone Mortgage Trust, Inc.

9 unchanged sentences

Manager Incentive Plan (filed as Exhibit 10.11 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on July 27, 2022 and incorporate herein by reference

1-14788) filed on July 27, 2022 and incorporated herein by reference)

Form of Indemnification Agreement (filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No.

15 unchanged sentences

1-4788) filed on April 26, 2023 and incorporated herein by reference)

10.22 F ifth Amendment to Fifth Amended and Restated Master Repurchase Agreement, dated as of J une 6 , 202 4 , among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Parlex 2 UK Finco, LLC, Parlex 2 EUR Finco, LLC, Parlex 2 AU Finco, LLC, Parlex 2 CAD Finco, LLC, Wispar 5 Finco, LLC, Silver Fin II Sub TC Pty Ltd , Blackstone Mortgage Trust, Inc.

and Citibank, N.A.

(filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10 Q (File No.

1-4788) filed on July 2 4 , 202 4 and incorporated herein by reference)

Sixth Amendment to Fifth Amended and Restated Master Repurchase Agreement, dated as of December 31, 2024, among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Parlex 2 UK Finco, LLC, Parlex 2 EUR Finco, LLC, Parlex 2 AU Finco, LLC, Parlex 2 CAD Finco, LLC, Wispar 5 Finco, LLC, Silver Fin II Sub TC Pty Ltd, Blackstone Mortgage Trust, Inc.

and Citibank, N.A.

10.24 Limited Guaranty, dated as of June 12, 2013, made by Blackstone Mortgage Trust, Inc.

26 unchanged sentences

1-14788) filed on July 28, 2021 and incorporated herein by reference)

10.31 S eventh Amendment to Limited Guaranty, dated as of July 1 , 202 4 , by and between Blackstone Mortgage Trust, Inc.

and Citibank, N.A.

(filed as Exhibit 10.

1 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on October 23 , 202 4 and incorporated herein by reference)

10.32 Guarantee Agreement, dated as of March 13, 2014, made by Blackstone Mortgage Trust, Inc.

2 unchanged sentences

1-14788) filed on April 29, 2014 and incorporated herein by reference)

10.33 F irst Amendment to Guarantee Agreement, dated as of July 1 7 , 2014, b etween Blackstone Mortgage Trust, Inc.

, and Wells Fargo Bank, N.A.

(filed as Exhibit 10.

3 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on October 23 , 20 24 and incorporated herein by reference)

10.34 Amended and Restated Master Repurchase and Securities Contract, dated as of April 4, 2014, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.7 to the Registrant’s Quarterly Report on Form 10-Q (File No.

48 unchanged sentences

1-14788) filed on April 26, 2023 and incorporated herein by reference)

10.51 Amendment No.

1 7 to the Amended and Restated Master Repurchase and Securities Contract, dated as of March 13, 202 4 , between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.

1 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 2 4 , 202 4 and incorporated herein by reference)

10.52 Amended and Restated Guarantee Agreement, dated as of June 30, 2015, made by Blackstone Mortgage Trust, Inc.

23 unchanged sentences

1-14788) filed on July 26, 2023 and incorporated herein by reference)

10.63 Ninth Amendment to Term Loan Credit Agreement, dated as of September 13 , 202 4 , by and among Blackstone Mortgage Trust, Inc., the subsidiary guarantors party thereto, each lender party thereto and JPMorgan Chase Bank, N.A., as administrative agent (filed as Exhibit 10.

4 to the Registrant's Quarterly Report on Form 10-Q (File No.

1-14788) filed on October 2 3 , 202 4 and incorporated herein by reference)

10.64 Tenth Amendment to Term Loan Credit Agreement, dated as of December 10, 2024, by and among Blackstone Mortgage Trust, Inc., the subsidiary guarantors party thereto, each lender party thereto and JPMorgan Chase Bank, N.A., as administrative agent (filed as Exhibit 10.1 Current Report on Form 8-K (File No.

1-14788) filed on December 11, 2024 and incorporated herein by reference)

10.65 Loan Guaranty, entered into as of April 23, 2019, by and among the subsidiary guarantors and other persons from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (filed as Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q (File No.

10 unchanged sentences

1-14788) filed on July 26, 2023 and incorporated herein by reference)

Fourth Amendment to Master Repurchase Agreement, dated as of November 22, 2023, by and among Parlex 3A USD IE Issuer Designated Activity Company, Parlex 3A GBP IE Issuer Designated Activity Company, Parlex 3A EUR IE Issuer Designated Activity Company, Parlex 3A SEK IE Issuer Designated Activity Company, Perpetual Corporate Trust Limited as Trustee of the Parlex 2022-1 Issuer Trust, Parlex 3A FINCO, LLC, Barclays Bank PLC, Parlex 3A Finco, LLC, Parlex 3A UK Finco, LLC, Parlex 3A EUR Finco, LLC, Parlex 3A SEK Finco, LLC, Silver Fin Sub TC PTY LTD, and Gloss Finco 1, LLC

1-14788) filed on February 14, 2024 and incorporated her ein by reference)

10.72 F ifth Amendment to Master Repurchase Agreement, dated as of Apri l 10 , 202 4 , by and among Parlex 3A USD IE Issuer Designated Activity Company, Parlex 3A GBP IE Issuer Designated Activity Company, Parlex 3A EUR IE Issuer Designated Activity Company, Parlex 3A SEK IE Issuer Designated Activity Company, Perpetual Corporate Trust Limited as Trustee of the Parlex 2022-1 Issuer Trust, Parlex 3A FINCO, LLC, Barclays Bank PLC, Parlex 3A Finco, LLC, Parlex 3A UK Finco, LLC, Parlex 3A EUR Finco, LLC, Parlex 3A SEK Finco, LLC, Silver Fin Sub TC PTY LTD, and Gloss Finco 1, LLC (filed as E xhibit 10.2 to the Registrant ’ s Quarterly Report on Form 10-Q (file No.

1-14788) filed on July 24, 2024 and incorporated herein by reference)

10.73 Guaranty, dated as of May 31, 2022, made by Blackstone Mortgage Trust, Inc., for the benefit of Parlex 3 USD IE Issuer Designated Activity Company, Parlex 3A GBP IE Issuer Designated Activity Company, Parlex 3A EUR IE Issuer Designated Activity Company and Parlex 3A SEK IE Issuer Designated Activity Company (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (file No.

1-14788) filed on July 27, 2022 and incorporated herein by reference)

10.74 First Amendment to Guaranty, dated as of July 17, 2024, by and between Blackstone Mortgage Trust, Inc, Par l ex 3A USD IE Issuer Designated Activity Company, Parlex 3A GBP IE Issuer Designated Activity C ompany, Parlex 3A EUR IE Issuer Designate d Activity Company, and Parlex 3A SEK IE Issuer Designated Activity Company, Perpetual Corporate Trust Limite d As Trustee of the Parlex 2022-1 Issuer Trust, Barclays Bank PLC, Silver Holdco I, LLC and Silver Holdco II, LLC, 345-50 Partners, LLC, 345-40 Partners, LLC, 345-2 Partners, LLC, 42-16 Partners, LLC, and U.S.

Bank Trustees Limited (filed as Exhibit 10.2 to the Re gistrant ’ s Quarte rly Report on Form 10-Q (file No.

1-14788) filed on October 2 3 , 202 4 and incorporated herein by reference)

Securities Trading Policy and Procedures

Subsidiaries of Blackstone Mortgage Trust, Inc.

6 unchanged sentences

Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

97.1 *+ Incentive Compensation Clawback Policy

97.1 + Incentive Compensation Clawback Policy (filed as Exhibit 97.1 to the Re gistrant ’ s Annual Report on Form 10-K (file No.

1-14788) filed on February 14, 2024 and incorporated herein by reference)

Section 13(r) Disclosure

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Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

(Principal Financial Officer)

February 12, 2025 /s/ Marcin Urbaszek

Date Marcin Urbaszek

Deputy Chief Financial Officer

(Principal Accounting Officer)

February 12, 2025 /s/ Leonard W.

1 unchanged sentence

Cotton, Director

February 14, 2024 /s/ Thomas E.

Date Thomas E.

Dobrowski, Director

February 12, 2025 /s/ Nnenna J.

9 unchanged sentences

Date Gilda Perez-Alvarado, Director

February 14, 2024 /s/ Jonathan L.

Date Jonathan L.

Pollack, Director

February 12, 2025 /s/ Lynne B.

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We have audited the accompanying consolidated balance sheets of Blackstone Mortgage Trust, Inc.

and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes and the schedule listed in the Index at Item 15(a) (collectively referred to as the "financial statements").

and subsidiaries (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2024, and the related notes and the schedules listed in the Index at Item 15(a) (collectively referred to as the "financial statements").

We also have audited the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

22 unchanged sentences

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Current Expected Credit Loss (“CECL”) Reserve – Adjustments to Reflect Management’s Estimation of Economic Conditions – Refer to Note 2 in the Financial Statements

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Our internal specialist procedures included testing the underlying source information of the assumptions, as well as developing a range of independent estimates and comparing those to the assumptions used by management.

Allocation of Purchase Price for Real Estate Owned – Refer to Notes 2 and 4 in the Financial Statements

Critical Audit Matter Description

The Company has acquired legal title or otherwise consolidated seven real estate owned assets, for an aggregate acquisition date fair value of $645.7 million during 2024.

Accordingly, the purchase price paid for assets acquired and liabilities assumed was allocated, based on fair value, to building, land, furniture, fixtures, and equipment, site and tenant improvements, in-place leases, above and below market leases, other intangible assets and liabilities and other tangible assets and liabilities.

The method for determining fair value varied depending on the type of real estate investment and associated assets acquired and liabilities assumed and involved management making significant estimates related to assumptions such as future cash flows, capitalization rates, discount rates, and sales comparables.

We identified the allocation of purchase price as a critical audit matter because of the significant estimates management makes to determine the fair value of assets acquired and liabilities assumed.

This required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists, when performing audit procedures to evaluate the reasonableness of management’s assumptions.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the relative fair value of assets acquired and liabilities assumed by the Company included the following, among others:

• We tested the effectiveness of controls over management’s critical assumptions including:

◦ The selection of the methods and valuation techniques used to determine that fair value is appropriate and consistent with industry standards.

◦ The assumptions for allocating the purchase price to tangible and intangible assets and liabilities.

• We held discussions with the Company’s management and evaluated Company-prepared analyses to assess the reasonableness of the accounting treatment as an asset acquisition as opposed to a business combination.

• We obtained and evaluated the third-party purchase price allocation report along with relevant supporting documentation, in order to corroborate our understanding of the substance of the acquisition obtained through inquiry with the Company’s management, as well as assess the completeness of the assets acquired and liabilities assumed as part of the acquisition.

• With the assistance of our fair value specialists, we evaluated the reasonableness of the valuation methodology, costs to replace certain assets, and significant assumptions used in the cash flow models, including testing the mathematical accuracy of the calculation and comparing the key inputs used in the projections to external market sources.

• We tested the reasonableness of management's capitalization and discount rates by comparing the assumptions used to external market sources.

• We tested the reasonableness of management's projections of the property's net operating income by comparing the assumptions used in the projections to external market sources, executed lease agreements, historical data, and results from other areas of the audit.

/s/ Deloitte & Touche LLP

10 unchanged sentences

Loans receivable, net 18,313,582 23,210,076

Real estate owned, net 588,185 —

Investments in unconsolidated entities

Other assets 572,253 476,088

10 unchanged sentences

Total Liabilities 16,007,766 19,648,674

Commitments and contingencies — —

Commitments and contingencies (Note 22)

Class A common stock, $ 0.01 par value, 400,000,000 shares authorized, 172,792,094 and 173,209,933 shares issued and outstanding as of December 31, 2024 and 2023, respectively

20 unchanged sentences

Income from loans and other investments, net 479,071 670,665 628,050

Other expenses

Revenue from real estate owned 13,040 — —

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

Other income 1,064 — —

Total net revenues 498,527 675,281 628,050

Management and incentive fees 74,792 119,089 110,292

General and administrative expenses 53,922 51,143 52,193

Total other expenses 170,232 162,485 131,635

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

Gain on extinguishment of debt 4,616 — —

Income before income taxes 255,259 254,060 422,696

Expenses from real estate owned 22,060 — —

Other expenses

Total expenses

156,437 170,232 162,485

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

Loss from unconsolidated entities

( 2,748 ) — —

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

Income tax provision 2,374 5,362 3,003

Net income 249,897 251,057 422,273

Net (loss) income ( 201,833 ) 249,897 251,057

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

Net income attributable to Blackstone Mortgage Trust, Inc.

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

$ ( 204,088 ) $ 246,555 $ 248,642

Net income per share of common stock basic and diluted $ 1.43 $ 1.46 $ 2.77

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

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

173,782,523 172,672,038 170,631,410

See accompanying notes to consolidated financial statements.

4 unchanged sentences

2024 2023 2022

Net income $ 249,897 $ 251,057 $ 422,273

Net (loss) income $ ( 201,833 ) $ 249,897 $ 251,057

Other comprehensive (loss) income

Unrealized gain (loss) on foreign currency translation 75,339 ( 171,652 ) ( 84,470 )

Realized and unrealized (loss) gain on derivative financial instruments ( 75,907 ) 173,366 81,608

Unrealized (loss) gain on foreign currency translation

( 89,460 ) 75,339 ( 171,652 )

Realized and unrealized gain (loss) on derivative financial instruments

88,274 ( 75,907 ) 173,366

Other comprehensive (loss) income

Comprehensive income 249,329 252,771 419,411

( 1,186 ) ( 568 ) 1,714

Comprehensive (loss) income ( 203,019 ) 249,329 252,771

Comprehensive income attributable to non-controlling interests ( 2,255 ) ( 3,342 ) ( 2,415 )

Comprehensive income attributable to Blackstone Mortgage Trust, Inc.

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

$ ( 205,274 ) $ 245,987 $ 250,356

11 unchanged sentences

$ 1,682 $ 5,373,029 $ 8,308 $ ( 794,832 ) $ 4,588,187 $ 30,524 $ 4,618,711

Adoption of ASU 2020-06 — ( 2,431 ) — 1,954 ( 477 ) — ( 477 )

Shares of class A common stock issued, net 23 70,628 — — 70,651 — 70,651

3 unchanged sentences

Net income — — — 248,642 248,642 2,415 251,057

Other comprehensive loss — — ( 2,862 ) ( 2,862 ) — ( 2,862 )

Other comprehensive income — — 1,714 — 1,714 — 1,714

Dividends declared on common stock and deferred stock units, $ 2.48 per share

4 unchanged sentences

$ 1,717 $ 5,475,804 $ 10,022 $ ( 968,749 ) $ 4,518,794 $ 25,406 $ 4,544,200

Adoption of ASU 2020-06 — ( 2,431 ) — 1,954 ( 477 ) — ( 477 )

Shares of class A common stock issued, net 23 70,628 — — 70,651 — 70,651

Restricted class A common stock earned 15 29,960 — — 29,975 — 29,975

2 unchanged sentences

Net income — — — 246,555 246,555 3,342 249,897

Other comprehensive income — — 1,714 1,714 — 1,714

Other comprehensive loss — — ( 568 ) ( 568 ) — ( 568 )

Dividends declared on common stock and deferred stock units, $ 2.48 per share

— — — ( 428,740 ) ( 428,740 ) — ( 428,740 )

Contributions from non-controlling interests — — — — — 5,040 5,040

Distributions to non-controlling interests — — — — — ( 8,955 ) ( 8,955 )

1 unchanged sentence

$ 1,732 $ 5,507,459 $ 9,454 $ ( 1,150,934 ) $ 4,367,711 $ 19,793 $ 4,387,504

Repurchases of class A common

( 16 ) ( 29,217 ) — — ( 29,233 ) — ( 29,233 )

Restricted class A common stock earned 12 30,957 — — 30,969 — 30,969

1 unchanged sentence

Deferred directors’ compensation — 859 — — 859 — 859

Net income — — — 246,555 246,555 3,342 249,897

Net (loss) income — — — ( 204,088 ) ( 204,088 ) 2,255 ( 201,833 )

Other comprehensive loss — — ( 1,186 ) — ( 1,186 ) — ( 1,186 )

1 unchanged sentence

— — — ( 378,719 ) ( 378,719 ) — ( 378,719 )

Contributions from non-controlling interests — — — — — 1,245 1,245

Distributions to non-controlling interests — — — — — ( 16,412 ) ( 16,412 )

8 unchanged sentences

Cash flows from operating activities

Net income $ 249,897 $ 251,057 $ 422,273

Adjustments to reconcile net income to net cash provided by operating activities

Net (loss) income $ ( 201,833 ) $ 249,897 $ 251,057

Adjustments to reconcile net (loss) income to net cash provided by operating activities

Non-cash compensation expense 31,828 30,655 33,414

Amortization of deferred fees on loans and debt securities

( 64,133 ) ( 78,428 ) ( 81,748 )

Amortization of deferred financing costs and premiums/discounts on debt obligations 42,955 54,264 50,020

Payment-in-kind interest, net of interest received ( 16,660 ) ( 2,865 ) —

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

Increase in current expected credit loss reserve 538,801 249,790 211,505

Straight-line rental income 151 — —

Gain on extinguishment of debt ( 5,352 ) ( 4,616 ) —

Unrealized gain on assets denominated in foreign currencies, net — ( 31 ) ( 6,866 )

Unrealized loss (gain) on derivative financial instruments, net 2,769 ( 4,339 ) ( 3,934 )

Realized (gain) loss on derivative financial instruments, net ( 28,202 ) ( 15,609 ) 3,890

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

Loss from unconsolidated entities

Unrealized loss on assets denominated in foreign currencies, net — — ( 31 )

Unrealized (gain) loss on derivative financial instruments, net ( 2,075 ) 2,769 ( 4,339 )

Realized gain on derivative financial instruments, net ( 9,987 ) ( 28,202 ) ( 15,609 )

Changes in assets and liabilities, net

5 unchanged sentences

Principal collections, sales proceeds, and cost-recovery proceeds from loans receivable and debt securities

4,790,510 2,840,467 3,254,595

Origination and other fees received on loans receivable 31,693 17,992 74,930

3 unchanged sentences

Return of collateral deposited under derivative agreements 290,470 351,730 114,110

Investment in unconsolidated entities

( 7,200 ) — —

Capital expenditures on real estate owned ( 590 ) — —

Net cash provided by (used in) investing activities 3,497,089 1,444,077 ( 3,253,535 )

8 unchanged sentences

Repayments under secured debt ( 4,176,428 ) ( 2,742,450 ) ( 3,578,806 )

Proceeds from issuance of securitized debt obligations — — 803,750

Repayments of securitized debt obligations

( 666,004 ) ( 166,027 ) ( 182,084 )

Borrowings under asset-specific debt 224,014 292,019 770,665

1 unchanged sentence

Proceeds from sale of loan participations — 100,692 245,278

Repayments of loan participations ( 235,960 ) — —

Net proceeds from term loan borrowings 646,750 — 807,750

Repayments of term loans ( 21,997 ) ( 17,053 ) ( 13,495 )

Repayments and repurchases of term loans ( 1,020,785 ) ( 21,997 ) ( 17,053 )

Proceeds from issuance of senior secured notes 450,000 — —

Repurchases of senior secured notes

( 27,222 ) ( 28,945 ) —

Net proceeds from issuance of convertible notes — — 294,000

Repayment of convertible notes ( 220,000 ) ( 402,500 ) —

Repayments and repurchases of convertible notes ( 31,424 ) ( 220,000 ) ( 402,500 )

Payment of deferred financing costs ( 30,787 ) ( 23,215 ) ( 45,996 )

3 unchanged sentences

Dividends paid on class A common stock ( 404,016 ) ( 426,927 ) ( 421,386 )

Net cash (used in) provided by financing activities ( 1,847,943 ) 2,607,224 5,508,224

Net increase (decrease) in cash and cash equivalents 54,975 ( 249,486 ) 263,246

Repurchases of class A common stock ( 29,233 ) — —

Net cash 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 )

Cash and cash equivalents at beginning of year

350,014 291,340 551,154

Effects of currency translation on cash and cash equivalents ( 7,389 ) 3,699 ( 10,328 )

Cash and cash equivalents at end of year

$ 323,483 $ 350,014 $ 291,340

Supplemental disclosure of cash flows information

4 unchanged sentences

Loan principal payments held by servicer, net $ 109,457 $ 48,287 $ 7,425

Transfer of senior loan to real estate owned $ 590,937 $ — $ —

Assumption of other assets and liabilities related to real estate owned

$ 168,249 $ — $ —

Accrued capital expenditures on real estate owned $ 1,176 $ — $ —

See accompanying notes to consolidated financial statements.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements

References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us” or “our” refer to Blackstone Mortgage Trust, Inc., a Maryland corporation, and its subsidiaries unless the context specifically requires otherwise.

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.” Our principal executive offices are located at 345 Park Avenue, 24th Floor, New York, New York 10154.

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All intercompany balances and transactions have been eliminated in consolidation.

Certain reclassifications have been made in the presentation of the prior period statements of changes in equity related to restricted class A common stock and in the loans receivable disclosures related to risk ratings, property type, and geography in Note 3 to conform to the current period presentation.

Principles of Consolidation

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The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

Entities that do not qualify as VIEs are generally considered voting interest entities (“VOEs”) and are evaluated for consolidation under the voting interest model.

VOEs are consolidated when we control the entity through a majority voting interest or other means.

For consolidated joint ventures, the non-controlling partner’s share of the assets, liabilities, and operations of each joint venture is included in non-controlling interests as a component of total equity.

The non-controlling partner’s interest is generally computed as the joint venture partner’s ownership percentage.

When the requirements for consolidation are not met and we have significant influence over the operations of the entity, the investment is accounted for under the equity method of accounting.

Investments in unconsolidated entities are initially recorded at cost and subsequently adjusted for our pro-rata share of net income, contributions and distributions.

We review our investments in unconsolidated entities for impairment each quarter or when there is an event or change in circumstances that indicates a decrease in value.

If there is a decrease in value due to a series of operating losses or other factors, the investment is evaluated to determine if the loss in value is considered other than temporary.

Although a current fair value below the carrying value of the investment is an indicator of impairment, we will only recognize an impairment if the loss in value is determined to be an other than temporary impairment.

If an impairment is determined to be other than temporary, we will record an impairment charge sufficient to reduce the investment’s carrying value to its fair value, which would result in a new cost basis.

This new cost basis will be used for future periods when recording subsequent income or loss and cannot be written up to a higher value as a result of increases in fair value.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

In 2017, we entered into a joint venture, or our Multifamily Joint Venture, with Walker & Dunlop Inc.

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A portion of our Multifamily Joint Venture’s consolidated equity and results of operations are allocated to these non-controlling interests based on Walker & Dunlop’s pro rata ownership of our Multifamily Joint Venture.

In 2024, we entered into a joint venture, which we refer to as our Net Lease Joint Venture, with a Blackstone-advised investment vehicle to invest in triple net lease properties.

We do not consolidate the Net Lease Joint Venture as we do not have a controlling financial interest.

Our investment in the Net Lease Joint Venture is accounted for under the equity method, and is recorded in investment in unconsolidated entities on our consolidated balance sheets, and our pro-rata share of income (loss) is recorded in Income (loss) from unconsolidated entities on our consolidated statements of operations.

Use of Estimates

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Actual results may ultimately differ materially from those estimates.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Revenue Recognition

Interest income from our loans receivable portfolio is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis.

Interest income from our loans receivable portfolio is recognized over the life of each loan using the effective interest method and is recorded on the accrual basis.

Recognition of fees, premiums, and discounts associated with these investments is deferred and recorded over the term of the loan as an adjustment to yield.

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Current Expected Credit Losses Reserve

The current expected credit loss, or CECL, reserve required under the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 326 “Financial Instruments – Credit Losses,” or ASC 326, reflects our current estimate of potential credit losses related to our loans included in our consolidated balance sheets.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Changes to the CECL reserves are recognized through net income on our consolidated statements of operations.

While ASC 326 does not require any particular method for determining the CECL reserves, it does specify the reserves should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan.

In addition, other than a few narrow exceptions, ASC 326 requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the GAAP principal underlying the CECL model that all loans and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors.

In addition, other than a few narrow exceptions, ASC 326 requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the principle underlying the CECL model that all loans and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors.

We estimate our CECL reserves primarily using the Weighted-Average Remaining Maturity, or WARM method, which has been identified as an acceptable loss-rate method for estimating CECL reserves in FASB Staff Q&A Topic 326, No.

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To estimate the historic loan losses relevant to our portfolio, we have augmented our historical loan performance, with market loan loss data licensed from Trepp LLC.

This database includes commercial mortgage-backed securities, or CMBS, issued

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

since January 1, 1999 through November 30, 2023.

This database includes commercial mortgage-backed securities, or CMBS, issued since January 1, 1999 through November 30, 2024.

Within this database, we focused our historical loss reference calculations on the most relevant subset of available CMBS data, which we determined based on loan metrics that are most comparable to our loan portfolio including asset type, geography, and origination loan-to-value, or LTV.

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However, non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Contractual Term and Unfunded Loan Commitments

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We perform a quarterly risk review of our portfolio of loans, and assign each loan a risk rating based on a variety of factors, including, without limitation, origination LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship.

Based on a 5-point

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

scale, our loans are rated “l” through “5,” from less risk to greater risk, relative to our loan portfolio in the aggregate, which ratings are defined as follows:

Based on a 5-point scale, our loans are rated “l” through “5,” from less risk to greater risk, relative to our loan portfolio in the aggregate, which ratings are defined as follows:

1 - Very Low Risk

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This process requires significant judgments about future events that, while based on the information available to us as of the balance sheet date, are ultimately indeterminate and the actual economic condition impacting our portfolio could vary significantly from the estimates we made as of December 31, 2024.

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

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

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

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

We capitalize acquisition-related costs associated with asset acquisitions.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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.

Agency Multifamily Lending Partnership

In the second quarter of 2024, we entered into an agreement with M&T Realty Capital Corporation, or MTRCC, a subsidiary of M&T Bank, that allows our borrowers to access multifamily agency financing through MTRCC’s Fannie Mae DUS and Freddie Mac Optigo lending platforms, or the Agency Multifamily Lending Partnership.

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

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

Revenue Recognition

For loans that we refer to MTRCC for origination under both the Fannie Mae and Freddie Mac programs, we recognize our allocable portion of origination, servicing, and other fees in other income when we have satisfied our performance obligations in accordance with the "Revenue from Contracts with Customers" Topic of the FASB, or ASC 606.

Our performance obligations are generally satisfied when the loan is referred by us to MTRCC and subsequently originated and sold under the Fannie Mae and Freddie Mac programs.

A portion of the fees recognized, such as servicing fees, are variable and will be reevaluated for collectability on a recurring basis.

Loss-sharing Agreement

Pursuant to our agreement with MTRCC, we are subject to a loss-sharing obligation with respect to MTRCC’s obligation to partially guarantee the performance of loans that they originate and sell under the Fannie Mae program.

This loss-sharing agreement requires us to fund a fixed amount of cash into a segregated account based on the amount MTRCC is required to fund under the Fannie Mae program, with respect to loans we referred to MTRCC.

In addition, we will recognize a liability for these loss-sharing obligations.

This liability will be initially recognized at fair value with a corresponding expense at inception, and it will subsequently be amortized on a straight-line basis over the life of the loss-sharing obligation.

This liability is included within other liabilities in our consolidated balance sheets.

Our maximum loss-sharing obligation associated with the loans referred by us to MTRCC under the Fannie Mae program was $ 3.5 million as of December 31, 2024, and we have recorded a related liability of $ 20,000 as of December 31, 2024.

We had no loss-sharing obligations or related liabilities as of December 31, 2023.

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

Derivative Financial Instruments

We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets at fair value.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or non-designated hedge.

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Proceeds or payments from periodic settlements of derivative instruments are classified on our consolidated statement of cash flows in the same section as the underlying hedged item.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Secured Debt and Asset-Specific Debt

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Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the senior secured notes as additional non-cash interest expense.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Convertible Notes

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ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments.

Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

existence and transparency of transactions between market participants.

Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

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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.

The CECL reserve was recorded based on our estimation of the fair value of the loans' aggregate underlying collateral as of December 31, 2023.

The CECL reserve was

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

recorded based on our estimation of the fair value of the loans' aggregate underlying collateral as of December 31, 2024.

These loans receivable are therefore measured at fair value on a nonrecurring basis using significant unobservable inputs, and are classified as Level 3 assets in the fair value hierarchy.

We estimated the fair value of these loans receivable by considering a variety of inputs including property performance, market data, and comparable sales, as applicable.

We estimated the fair value of the collateral underlying the loans receivable by considering a variety of inputs including property performance, market data, and comparable sales, as applicable.

The significant unobservable inputs used include the exit capitalization rate assumption used to forecast the future sale price of the underlying real estate collateral, which ranged from 6.00 % to 8.55 %, and the unlevered discount rate, which ranged from 7.72 % to 15.00 %.

In the year ended December 31, 2024, we acquired legal title or otherwise consolidated seven REO assets.

At the time of each acquisition or consolidation, we determined the fair value of each real estate asset based on a variety of inputs including, but not limited to, estimated cash flow projections, leasing assumptions, required capital expenditures, market data, and comparable sales.

The REO assets were measured at fair value on a nonrecurring basis using significant unobservable inputs and are classified as Level 3 assets in the fair value hierarchy.

The significant unobservable inputs used include the exit capitalization rate assumptions used to forecast the future sale price of the assets, which ranged from 6.00 % to 8.00 %, as well as the discount rate, which ranged from 7.50 % to 10.00 %.

Refer to Note 4 and Note 19 for additional information.

We are also required by GAAP to disclose fair value information about financial instruments, which are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those instruments.

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The fair value of these instruments was estimated based on the rate at which a similar credit facility would currently be priced.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

• Securitized debt obligations, net:

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Each series of the convertible notes is actively traded and their fair values were obtained using quoted market prices.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Our financial results generally do not reflect provisions for current or deferred income taxes on our REIT taxable income.

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Refer to Note 15 for additional discussion of earnings per share.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Foreign Currency

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Recent Accounting Pronouncements

In December 2023, the FASB issued Accounting Standards Update, or ASU, 2023-09 “Income Taxes (Topic 740):

In November 2024, the FASB issued Account Standards Update, or ASU, 2024-04 “Debt with Conversion and Other Options (Subtopic 470-20):

Induced Conversions of Convertible Debt Instruments,”, or ASU 2024-04.

ASU 2024-04 clarifies the accounting treatment for settlement of a convertible debt instrument as an induced conversion.

ASU 2024-04 is effective on a prospective basis, with the option for retrospective application, for fiscal years beginning after December 15, 2025.We have not early adopted ASU 2024-04 and do not expect the adoption of ASU 2024-04 to have a material impact on our consolidated financial statements.

In November 2024, the FASB issued ASU, 2024-03 “Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses,”, or ASU 2024-03.

ASU 2024-03 requires disclosures in the notes to the financial statements on specified information about certain costs and expenses for each interim and annual reporting period.

ASU 2024-03 is effective on either a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026, for interim periods within fiscal years beginning after December 15, 2027, and early adoption is permitted.

We have not early adopted ASU 2024-03 and do not expect the adoption of ASU 2024-03 to have a material impact on our consolidated financial statements.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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

Improvements to Income Tax Disclosures,” or ASU 2023-09.

ASU 2023-09 requires additional disaggregated disclosures on the entity’s effective tax rate reconciliation and additional details on income taxes paid.

ASU 2023-09 requires additional disaggregated disclosures on an entity’s effective tax rate reconciliation and additional details on income taxes paid.

ASU 2023-09 is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2024 and early adoption is permitted.

We do not expect the adoption of ASU 2023-09 to have a material impact on our consolidated financial statements.

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

In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280):

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ASU 2023-07 is effective on a retrospective basis for annual periods beginning after December 15, 2023, for interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted.

We do not expect the adoption of ASU 2023-07 to have a material impact on our consolidated financial statements.

In March 2022, the FASB issued ASU, 2022-02 “Financial Instruments-Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures,” or ASU 2022-02.

ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings and requires disclosure of current-period gross write-offs by year of loan origination.

Additionally, ASU 2022-02 updates the accounting for credit losses under ASC 326 and adds enhanced disclosures with respect to loan refinancings and restructurings in the form of principal forgiveness, interest rate concessions, other-than-insignificant payment delays, or term extensions when the borrower is experiencing financial difficulties.

ASU 2022-02 is effective for fiscal years beginning after December 15, 2022 and early adoption is permitted.

The amendments should be applied prospectively, however for the recognition and measurement of troubled debt restructurings, the entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption.

The adoption of ASU 2022-02 on January 1, 2023 did not have a material impact on our consolidated financial statements.

Reference Rate Reform

LIBOR and certain other floating rate benchmark indices have been the subject of national, international and regulatory guidance and proposals for reform or replacement.

The Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee composed of large U.S.

financial institutions, identified SOFR, an index calculated using short-term repurchase agreements backed by U.S.

Treasury securities, as its preferred alternative rate for USD LIBOR.

As of December 31, 2023, all of our floating rate loans and related financings have transitioned to the applicable replacement benchmark rate, or reference a benchmark rate that is not expected to be replaced.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The adoption of ASU 2023-07 did not have a material impact on our consolidated financial statements.

See Note 23 for the required disclosures.

LOANS RECEIVABLE, NET

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These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date.

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

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

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

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

As of December 31, 2022, substantially all of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR and USD LIBOR.

Floating rate exposure as of December 31, 2023 includes an interest rate swap we entered into with a notional amount of $ 229.9 million that effectively converts certain of our fixed rate loan exposure to floating rate exposure.

Floating rate exposure as of December 31, 2023 includes an interest rate swap we entered into with a notional amount of $ 229.9 million that effectively converted certain of our fixed rate loan exposure to floating rate exposure.

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

Excludes loans accounted for under the cost-recovery method.

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

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

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

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

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$ 12,622,124 $ 6,581,002 $ 19,203,126

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

(2) Includes an interest rate swap we entered into with a notional amount of $ 229.9 million that effectively converts certain of our fixed rate loan exposure to floating rate exposure.

(3) As of December 31, 2023, the weighted-average index rate floor of our loans receivable principal balance was 0.56 %.

Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 1.00 %.

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

(2) Includes all impaired loans.

(3) As of December 31, 2024, the weighted-average index rate floor of our loans receivable principal balance was 1.02 %.

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Loan fundings 1,344,130 — 1,344,130

Loan repayments and sales proceeds ( 3,168,155 ) — ( 3,168,155 )

Unrealized (loss) gain on foreign currency translation ( 638,157 ) 5,255 ( 632,902 )

Loan repayments, sales, and cost-recovery proceeds ( 2,871,423 ) ( 52,978 ) ( 2,924,401 )

Payment-in-kind interest, net of interest received 2,865 — 2,865

Unrealized gain (loss) on foreign currency translation 287,804 ( 1,702 ) 286,102

Deferred fees and other items — ( 17,992 ) ( 17,992 )

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Loan repayments, sales, and cost-recovery proceeds ( 4,663,293 ) ( 87,993 ) ( 4,751,286 )

Charge-offs ( 419,849 ) 35,246 ( 384,603 )

Transfer to real estate owned ( 590,937 ) — ( 590,937 )

Transfer to other assets, net (2)

( 70,248 ) — ( 70,248 )

Payment-in-kind interest, net of interest received 16,660 — 16,660

Unrealized gain (loss) on foreign currency translation 287,804 ( 1,702 ) 286,102

Unrealized (loss) gain on foreign currency translation ( 349,134 ) 1,406 ( 347,728 )

Deferred fees and other items — ( 31,693 ) ( 31,693 )

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

(2) This amount relates to:

(i) intangible and other assets recorded in connection with loans that were transferred to REO, net of any liabilities recorded upon acquisition, if any;

(ii) a loan that was partially satisfied through the issuance of a note receivable;

and (iii) proceeds from loan repayments that are held in escrow, all of which are included within other assets in our consolidated balance sheets.

See Note 6 for further information.

Blackstone Mortgage Trust, Inc.

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United Kingdom 16 2,916,145 2,877,609 2,839,096 17

Australia 5 1,429,144 1,437,870 1,432,146 7

Ireland 3 1,050,276 1,055,131 1,048,329 6

Australia 3 920,182 925,106 923,507 5

Spain 3 785,368 786,576 744,287 4

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Other Europe 3 455,417 456,102 451,245 4

Other International 1 60,650 61,052 60,951 —

Subtotal 30 6,617,122 6,591,992 6,497,139 38

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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.

See Note 2 for further discussion of loan participations sold.

(2) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31, 2023, which is our total loan exposure net of (i) $ 1.1 billion of non-consolidated senior interests, (ii) $ 1.0 billion of asset-specific debt, (iii) $ 236.8 million of senior loan participations sold, (iv) $ 53.0 million of cost-recovery proceeds, and (v) our total loans receivable CECL reserve of $ 576.9 million.

(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.

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Australia 5 1,429,144 1,437,870 1,432,146 7

Spain 4 1,237,446 1,241,808 1,204,218 5

Ireland 3 1,191,068 1,197,337 1,188,554 5

Spain 3 1,117,790 1,120,375 1,078,811 5

Sweden 1 474,262 476,718 476,281 2

Canada 1 49,409 49,432 49,398 —

Other Europe 5 644,149 646,430 643,401 3

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

As of December 31, 2022, total loan exposure, includes (i) loans with an outstanding principal balance of $ 25.2 billion that are included in our consolidated financial statements and (ii) $ 1.6 billion of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements.

See Note 2 for further discussion of loan participations sold.

(2) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31, 2022, which is our total loan exposure net of (i) $ 1.6 billion of non-consolidated senior interests, (ii) $ 950.3 million of asset-specific debt, (iii) $ 224.7 million of senior loan participations sold, and (iv) our total loans receivable CECL reserve of $ 326.1 million.

Our non-consolidated senior interests, asset-specific debt, and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans.

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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.

See Note 2 for further discussion of loan participations sold.

Our net loan exposure as of December 31, 2022 is our total loan exposure net of (i) $ 1.6 billion of non-consolidated senior interests, (ii) $ 950.3 million of asset-specific debt, (iii) $ 224.7 million of senior loan participations sold, and (iv) our total loans receivable CECL reserve of $ 326.1 million.

Our net loan exposure as of December 31, 2023 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, and (iv) $ 53.0 million of cost-recovery proceeds, and (v) our total loans receivable CECL reserve of $ 576.9 million.

Our non-consolidated senior interests, asset-specific debt, and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans.

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 2023, respectively.

Blackstone Mortgage Trust, Inc.

3 unchanged sentences

Refer to Note 2 for further discussion of our CECL reserves.

The following table presents the activity in our loans receivable CECL reserve by investment pool for the year ended December 31, 2023 and 2022 ($ in thousands):

The following table presents the activity in our loans receivable CECL reserve by investment pool for the years ended December 31, 2024 and 2023 ($ in thousands):

Loans Impaired

2 unchanged sentences

$ 78,335 $ 31,560 $ 49,371 $ 417,670 $ 576,936

Increase in CECL reserves 10,455 9,041 3,411 227,892 250,799

Increase (decrease) in CECL reserves 1,722 ( 5,419 ) ( 2,284 ) 547,584 541,603

Charge-offs of CECL reserves — — — ( 384,603 ) ( 384,603 )

CECL reserves as of December 31, 2024

5 unchanged sentences

$ 78,335 $ 31,560 $ 49,371 $ 417,670 $ 576,936

(1) Includes Canadian loans, which have similar risk characteristics as U.S.

During the year ended December 31, 2023, we recorded an aggregate increase of $ 250.8 million in the CECL reserves against our loans receivable portfolio, bringing our total loans receivable CECL reserve to $ 576.9 million as of December 31, 2023.

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

During the three months ended December 31, 2023, we recorded an aggregate net increase of $ 95.1 million in the asset-specific CECL reserve related to our impaired loans.

The increase was primarily driven by three additional loans that were impaired during the three months ended December 31, 2023.

As of December 31, 2023, the income accrual was suspended on these loans as recovery of income and principal was doubtful.

During the three months ended December 31, 2023, we recorded $ 5.9 million of interest income on these three loans.

(1) Includes one U.S.

dollar-denominated loan that is located in Bermuda.

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.

This increase 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.

This increase in the CECL reserves were partially offset by the resolution and charge-off of the CECL reserves on 13 impaired loans during the year ended December 31, 2024.

Additionally, the income accrual was suspended on one additional loan that was impaired during the three months ended December 31, 2024, 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.

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.

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.

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.

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 for further discussion of our policies on revenue recognition and our CECL reserves.

As of December 31, 2022, we had a $ 189.8 million CECL reserve specifically related to five of our loans receivable, with an amortized cost basis of $ 929.1 million.

This CECL reserve was recorded based on our estimation of the fair value of each of the loan’s underlying collateral as of December 31, 2022.

Blackstone Mortgage Trust, Inc.

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Loans receivable, net $ 18,313,582

Gross charge-offs (2)

— — ( 52,045 ) ( 255,005 ) — ( 77,553 ) $ ( 384,603 )

(1) Date loan was originated or acquired by us.

Origination dates are subsequently updated to reflect material loan modifications.

(2) Represents charge-offs by year of origination during the year ended December 31, 2024.

Blackstone Mortgage Trust, Inc.

40 unchanged sentences

Origination dates are subsequently updated to reflect material loan modifications.

(2) Includes Canadian loans, which have similar risk characteristics as U.S.

Blackstone Mortgage Trust, Inc.

1 unchanged sentence

Loan Modifications Pursuant to ASC 326

During the year ended December 31, 2023, we entered into five loan modifications that require disclosure pursuant to ASC 326.

Four of these loans were collateralized by office assets and one was collateralized by a hospitality asset.

Three of the loan modifications included other-than-insignificant payment delays, specifically the option to pay interest in-kind.

For one of the loans the maximum maturity date was extended by one year , the borrower contributed $ 2.0 million of additional reserves, and the interest rate increased by 5.11 %.

The second modification included an additional 4.00 % exit fee.

The third modification included an additional 2.00 % exit fee and the interest rate increased by 2.00 %.

During the year ended December 31, 2024, we entered into seven loan modifications that require disclosure pursuant to ASC 326.

Five of these loans were collateralized by office assets, one was collateralized by a hospitality asset, and one was collateralized by a mixed-use asset.

Loans with a risk rating of “3” and “4” are included in the determination of our general CECL reserve and loans with a risk rating of “5” have an asset-specific CECL reserve.

Loan modifications that allow the option to pay interest in-kind increase our potential economics and the size of our secured claim, as interest is capitalized and added to the outstanding principal balance for applicable loans.

As of December 31, 2024, no income was recorded on our loans subsequent to determining that they were impaired and risk rated “5.”

Two of the loan modifications included term extensions.

For one of the loans, the modification included a term extension of 10 months.

The other modification included a term extension of nine months.

As of December 31, 2024, the aggregate amortized cost basis of these loans was $ 446.2 million, or 2.3 % of our aggregate loans receivable portfolio, with an aggregate $ 23.9 million of unfunded commitments.

The loans were performing pursuant to their contractual terms as of December 31, 2023, had risk ratings of “5” as of December 31, 2023, and have asset-specific CECL reserves.

The other two loan modifications included a combination of changes to the contractual terms of the loans, including term extensions, other-than-insignificant payment delays, and/or interest rate reductions.

The first loan modification included a term extension of 19 months, a rate reduction of 2.74 % and conversion to fixed rate, with a portion of the interest paid in-kind.

The borrower repaid $ 4.9 million of the loan at the time of modification, with an additional $ 2.5 million of repayment due during the initial maturity period.

The second loan modification included a term extension of 4.5 years, a rate increase of 8.50 % with interest paid in-kind, a borrower contribution of $ 2.0 million of additional reserves, and a $ 50.0 million increase in our total loan commitment.

These loans were performing pursuant to their modified contractual terms as of December 31, 2024, had risk ratings of “5” as of December 31, 2024, and have asset-specific CECL reserves.

The other five loan modifications included term extensions combined with other-than-insignificant payment delays and/or interest rate reductions.

The first loan modification included a term extension of 2.5 years, and the loan was bifurcated into a separate senior loan and mezzanine loan.

The senior loan is paying interest current while the mezzanine loan is paying interest in-kind.

The second modification included a term extension of six months , an additional 3.00 % exit fee and the interest rate increased by 4.00 %.

The third modification included a term extension of two years , a $ 34.5 million increase in our total loan commitment, and was converted to a fixed coupon rate of 15.00 % with interest paid in-kind, inclusive of a senior portion of our loan that accrues interest at a floating rate of SOFR + 2.50 %.

We are accruing interest on the senior portion of the loan, and deferring interest income recognition on the remaining portion.

The fourth loan modification included a term extension of five years , the borrower repaid $ 6.0 million of principal, and the loan was bifurcated into a separate senior loan and mezzanine loan.

We are accruing interest on the senior loan, which is paying interest current, and deferring interest on the mezzanine loan that is paying interest in-kind.

The fifth loan had a term extension of 4.8 years, the interest rate decreased by 0.10 %, and the loan was bifurcated into a separate senior loan and mezzanine loan.

The senior loan is paying interest partially current, and partially in-kind, while the mezzanine loan is paying interest in-kind.

We are accruing interest on the portion of the senior loan that is paying current and a portion that is paid in-kind, and deferring interest income recognition on the remaining portion, including the entire mezzanine loan.

As of December 31, 2024, the aggregate amortized cost basis of these loans was $ 509.8 million, or 2.7 % of our aggregate loans receivable portfolio, with an aggregate $ 28.6 million of unfunded commitments.

The loans were performing pursuant to their contractual terms as of December 31, 2024.

As of December 31, 2023, one of these loans had a risk rating of “4”, and its modified terms were included in the determination of our general CECL reserve, and the other loan had a risk rating of “5” and has an asset-specific CECL reserve.

As of December 31, 2023, all of our loans with a risk rating of “5” are accounted for using the cost-recovery method and no income has been recorded on such loans subsequent to determining that they were impaired.

As of December 31, 2024, four of these existing loans had a risk rating of “5,” and one of these existing loans had a risk rating of “4.” Of the three newly bifurcated senior loans, two loans had a risk rating of “4,” and one loan had a risk rating of “3.” The newly bifurcated mezzanine loans all had a risk rating of “5.”

Multifamily Joint Venture

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As of December 31, 2024 and 2023, our Multifamily Joint Venture held $ 43.3 million and $ 612.9 million of loans, respectively, which are included in the loan disclosures above.

As of December 31, 2024, our Multifamily Joint Venture also held a $ 32.4 million REO asset, which is included in the REO disclosures in Note 4.

As of December 31, 2023, our Multifamily Joint Venture did not hold any REO assets.

Refer to Note 2 for additional discussion of our Multifamily Joint Venture.

REAL ESTATE OWNED, NET

During the year ended December 31, 2024, we acquired seven REO assets through foreclosure or consolidation, for a total acquisition price of $ 645.7 million.

We allocated $ 410.2 million to building and building improvements, $ 180.7 million to land and land improvements, $ 83.3 million to acquired intangible assets, and $ 28.5 million to other components of the purchase price.

In aggregate, we charged off $ 228.4 million of CECL reserves relating to these loans, as the loans’ carrying value of $ 922.9 million at the time of acquisition exceeded the acquisition date fair value noted above.

See Note 2 for additional discussion of REO.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The acquisition of seven REO assets during the year were accounted for as asset acquisitions under ASC Topic 805 “Business Combinations,” and upon acquisition we recognized each respective property as an REO asset held for investment.

The following table presents the REO assets that were acquired during the year ended December 31, 2024 ($ in thousands):

Acquisition Date

Property Type

Acquisition Date Fair Value

March 2024 Mountain View, CA

Office $ 60,203

July 2024 San Antonio, TX

September 2024 Burlington, MA

Office 64,628

October 2024 Washington, DC

Office 107,016

December 2024 San Francisco, CA

Hospitality 201,530

December 2024 El Segundo, CA

Office 145,363

December 2024 Denver, CO

Office 33,337

Total 645,684

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

December 31, 2024

Building and building improvements $ 410,546

Land and land improvements 181,083

Total $ 591,629

accumulated depreciation ( 3,444 )

Real estate owned, net $ 588,185

Intangible real estate assets $ 83,253

accumulated amortization ( 5,964 )

Intangible real estate assets, net (1)

Intangible real estate liabilities

accumulated amortization 1

Intangible real estate liabilities, net (2)

(1) Included within other assets on our consolidated balance sheets.

Refer to Note 6 for additional information.

(2) Included within other liabilities on our consolidated balance sheets.

Refer to Note 6 for additional information.

We recognized revenue from real estate owned of $ 13.0 million during the year ended December 31, 2024, which is included in revenues from real estate owned in our consolidated statements of operations.

We recognized expenses from real estate owned of $ 22.1 million during the year ended December 31, 2024.

These expenses consisted of $ 9.2 million of depreciation and amortization expense, and $ 12.8 million of other operating expenses.

These expenses are included in expenses from real estate owned in our consolidated statements of operations.

There was no income or expense recognized related to REO assets during the years ended December 31, 2023 and 2022.

As of December 31, 2023, we did not have any REO assets or liabilities.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table presents the undiscounted future minimum rents we expect to receive for our office properties as of December 31, 2024.

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

($ in thousands):

Future Minimum Rents

2025 $ 47,185

The following table presents the amortization of lease intangibles for the year ended December 31, 2024.

There was no amortization of lease intangibles during the years ended December 31, 2023 and 2022 ($ in thousands):

Year Ended December 31,

In-place lease intangibles (1)

Above-market lease intangibles (2)

Below-market lease intangibles (2)

Total amortization of lease intangibles

(1) Included within expenses of real estate owned on our consolidated statements of operations.

(2) Included within revenue from real estate owned on our consolidated statements of operations.

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

In-place lease intangibles

Above-market lease intangibles

Below-market lease intangibles

2025 $ 27,003 $ 4,973 $ ( 330 )

2026 13,645 2,950 ( 282 )

2027 7,395 2,262 ( 254 )

2028 4,525 1,781 ( 174 )

2029 3,686 1,192 ( 138 )

5,662 2,215 ( 243 )

$ 61,916 $ 15,373 $ ( 1,421 )

INVESTMENTS IN UNCONSOLIDATED ENTITIES

We hold one investment in the Net Lease Joint Venture, which is accounted for under the equity method of accounting, as our ownership interest in the joint venture does not meet the requirements for consolidation.

As of December 31, 2024, the Net Lease Joint Venture did not hold any properties.

Refer to Note 2 for additional details.

During the year ended December 31, 2024 we contributed $ 7.2 million to the joint venture, did not receive any distributions, and recorded a $ 2.7 million loss from unconsolidated entities in our consolidated statements of operations, which represents our share of start-up costs incurred.

As of December 31, 2024, our investment in unconsolidated entities totaled $ 4.5 million.

As of December 31, 2023, we had no investments in unconsolidated entities.

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

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

OTHER ASSETS AND LIABILITIES

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Accrued interest receivable $ 160,131 $ 214,835

Accounts receivable and other assets (1)

134,030 2,420

Loan portfolio payments held by servicer (2)

113,199 152,423

Collateral deposited under derivative agreements 103,500 103,110

Accounts receivable and other assets 2,420 1,318

Real estate intangible assets, net 77,289 —

Derivative assets 72,454 1,890

Other real estate assets

Collateral deposited under derivative agreements 4,810 103,500

Prepaid expenses 1,002 1,020

Total $ 572,253 $ 476,088

(1) Primarily represents loan principal held by our third-party loan servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(1) Includes $ 95.5 million of cash collateral held by our CLOs that will be subsequently remitted by the trustee to repay a portion of the outstanding senior CLO securities.

(2) Primarily represents loan principal held by our third-party loan servicer as of the balance sheet date that were remitted to us during the subsequent remittance cycle.

Other Liabilities

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Accrued interest payable 77,855 97,820

Derivative liabilities 94,817 119,665

Other real estate liabilities

Accrued management and incentive fees payable 18,534 26,342

Accounts payable and other liabilities 13,834 7,265

Current expected credit loss reserves for unfunded loan commitments (1)

10,412 15,371

Derivative liabilities 5,238 94,817

Secured debt repayments pending servicer remittance (2)

13,526 60,585

Accounts payable and other liabilities 7,265 9,726

Total $ 282,847 $ 362,531

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As of December 31, 2024, we had aggregate unfunded commitments of $ 1.3 billion related to 60 loans receivable.

The expected credit losses over the contractual period of our loans is impacted by our obligation to extend further credit through our unfunded loan commitments.

The expected credit losses over the contractual period of our loans are impacted by our obligation to extend further credit through our unfunded loan commitments.

See Note 2 for further discussion of the CECL reserves related to our unfunded loan commitments, and Note 22 for further discussion of our unfunded loan commitments.

The following table presents the activity in the CECL reserves related to our unfunded loan commitments by investment pool for the year ended December 31, 2023 and 2022 ($ in thousands):

Loans Non-U.S.

CECL reserves as of December 31, 2022

$ 11,748 $ 4,632 $ — $ — $ 16,380

Decrease in CECL reserves ( 693 ) ( 316 ) — — ( 1,009 )

CECL reserves as of December 31, 2023

$ 11,055 $ 4,316 $ — $ — $ 15,371

CECL reserves as of December 31, 2021

$ 4,072 $ 2,191 $ — $ — $ 6,263

Increase in CECL reserves 7,676 2,441 — — 10,117

CECL reserves as of December 31, 2022

$ 11,748 $ 4,632 $ — $ — $ 16,380

During the year ended December 31, 2024, we recorded a decrease in the CECL reserves related to our unfunded loan commitments of $ 5.0 million, bringing our total unfunded loan commitments CECL reserve to $ 10.4 million as of December 31, 2024.

During the year ended December 31, 2023, we recorded a decrease in the CECL reserves related to our unfunded loan commitments of $ 1.0 million, bringing our total unfunded loan commitments CECL reserve to $ 15.4 million as of December 31, 2023.

Blackstone Mortgage Trust, Inc.

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SECURED DEBT, NET

Our secured debt includes our secured credit facilities and our acquisition facility.

During the year ended December 31, 2023, we obtained approval for $ 112.1 million of new borrowings against $ 141.9 million of collateral assets.

During the year ended December 31, 2022, we obtained approval for $ 4.6 billion of new borrowings against $ 5.9 billion of collateral assets.

Our secured debt includes our secured credit facilities.

During the year ended December 31, 2024, we closed $ 614.1 million of new borrowings against $ 808.9 million of collateral assets.

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

2 unchanged sentences

Secured credit facilities $ 9,705,529 $ 12,697,058

Acquisition facility — —

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

Deferred financing costs (1)

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Our credit facilities are diversified across 14 counterparties, primarily consisting of top global financial institutions to minimize our counterparty risk exposure.

The following table details our secured credit facilities by spread over the applicable base rates as of December 31, 2023 ($ in thousands):

The following table details our secured credit facilities as of December 31, 2024 ($ in thousands):

December 31, 2024

3 unchanged sentences

Loan Count Collateral (3)

USD 14 $ 6,643,853 June 2026 125 $ 10,584,023 June 2026 35 % 25 % - 100 %

GBP 7 2,337,852 June 2026 19 3,143,684 August 2026 27 % 25 % - 50 %

EUR 7 2,068,449 September 2025 11 2,786,896 September 2025 41 % 25 % - 100 %

4 1,646,904 July 2027 7 2,079,715 July 2027 25 % 25 %

Total 15 $ 12,697,058 June 2026 162 $ 18,594,318 June 2026 33 % 25 % - 100 %

USD 13 $ 4,796,857 November 2026 85 $ 8,302,871 December 2026 37 % 25 % - 100 %

GBP 6 2,161,978 February 2027 16 2,877,608 February 2027 26 % 25 % - 50 %

EUR 7 1,653,370 October 2026 10 2,260,687 October 2026 40 % 25 % - 100 %

4 1,093,324 April 2028 4 1,366,655 April 2028 25 % 25 %

Total 14 $ 9,705,529 January 2027 115 $ 14,807,821 February 2027 34 % 25 % - 100 %

(1) Represents the number of lenders with fundings advanced in each respective currency, as well as the total number of facility lenders.

2 unchanged sentences

In limited instances, the maturity date of the respective secured credit facility is used.

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

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

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

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

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

The availability of funding under our secured credit facilities is based on the amount of approved collateral, which collateral is proposed by us in our discretion and approved by the respective counterparty in its discretion, resulting in a mutually agreed collateral portfolio construction.

Certain structural elements of our secured credit facilities, including the

Certain structural elements of our secured credit facilities, including the limitation on recourse to us and facility economics, are influenced by the specific collateral portfolio construction of each facility, and therefore vary within and among the facilities.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

limitation on recourse to us and facility economics, are influenced by the specific collateral portfolio construction of each facility, and therefore vary within and among the facilities.

The following tables detail the spread of our secured debt as of December 31, 2024 and 2023 ($ in thousands):

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Total $ 112,078 $ 12,697,058 + 1.89 % $ 18,594,318 + 3.58 % + 1.69 %

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

(2) Represents borrowings outstanding as of December 31, 2023 and 2022 for new financings closed during the year ended December 31, 2023 and year ended December 31, 2022, respectively.

(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 the amount of new borrowings we closed during the years ended December 31, 2024 and 2023, respectively.

(3) In addition to spread, the cost includes the associated deferred fees and expenses related to the respective borrowings.

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

All-in yield excludes loans accounted for under the cost-recovery method.

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 2023, respectively, and is not necessarily indicative of the spread applicable to recent or future borrowings.

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

(5) 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.

2 unchanged sentences

Acquisition Facility

We have a $ 100.0 million full recourse secured credit facility that is designed to finance eligible first mortgage originations for up to nine months as a bridge to term financing without obtaining discretionary lender approval.

The cost of borrowing under the facility is variable, dependent on the type of loan collateral, and its maturity date is April 3, 2024.

During the year ended December 31, 2023, we had no borrowings under the acquisition facility and we recorded interest expense of $ 722,000 , including $ 233,000 of amortization of deferred fees and expenses.

During the year ended December 31, 2022, we had no borrowings under the acquisition facility and we recorded interest expense of $ 1.2 million, including $ 333,000 of amortization of deferred fees and expenses.

We previously had a $ 100.0 million full recourse secured credit facility that was 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 was variable, dependent on the type of loan collateral.

This facility matured on April 3, 2024.

During the years ended December 31, 2024 and 2023, we had no borrowings under the acquisition facility, and we recorded interest expense of $ 126,000 and $ 722,000 , respectively, including $ 35,000 and $ 233,000 , respectively of amortization of deferred fees and expenses.

Blackstone Mortgage Trust, Inc.

1 unchanged sentence

Financial Covenants

We are subject to the following financial covenants related to our secured debt:

As of December 31, 2024, we are subject to the following financial covenants related to our secured debt:

(i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to fixed charges, as defined in the agreements, shall be not less than 1.25 to 1.0;

3 unchanged sentences

As of December 31, 2024 and 2023, we were in compliance with these covenants.

During the year ended December 31, 2024, the financial covenant under each applicable secured debt agreement related to the ratio of our EBITDA to fixed charges, as noted above, was amended so that the ratio shall be not less than 1.25 to 1.0 with respect to each of the four fiscal quarters beginning with the quarter ended September 30, 2024, and shall be not less than 1.3 to 1.0 thereafter.

SECURITIZED DEBT OBLIGATIONS, NET

8 unchanged sentences

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)

3 unchanged sentences

(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.

9 unchanged sentences

Senior CLO Securities Outstanding 1 $ 803,750 $ 801,800 + 1.70 % May 2038

Underlying Collateral Assets 30 1,000,000 1,000,000 + 3.47 % May 2025

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

2020 FL3 Collateralized Loan Obligation

Senior CLO Securities Outstanding 1 714,352 714,352 + 2.18 % November 2037

Underlying Collateral Assets 16 1,000,000 1,000,000 + 3.25 % November 2024

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

2020 FL2 Collateralized Loan Obligation

Senior CLO Securities Outstanding 1 989,412 989,265 + 1.57 % February 2038

Underlying Collateral Assets 17 1,317,916 1,317,916 + 3.42 % November 2024

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

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 the relevant floating benchmark rates, which include SOFR and USD LIBOR, as applicable to each securitized debt obligation.

All-in yield excludes loans accounted for under the cost-recovery method.

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

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

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

8 unchanged sentences

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

December 31, 2023

2 unchanged sentences

Yield/Cost (2)

Financing provided 4 $ 950,278 $ 942,503 + 3.29 % January 2026

Collateral assets 4 $ 1,094,450 $ 1,081,035 + 4.73 % January 2026

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

(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.

13 unchanged sentences

Yield/Cost (2)

Senior Participations

Loan Participation

1 $ 236,797 $ 236,499 + 3.22 % March 2027

Total Loan 1 295,996 294,783 + 4.86 % March 2027

Junior Participations

2 unchanged sentences

2 442,142 442,008 + 6.14 % February 2026

Loan Participation (4)

3 $ 337,721 $ 337,179

3 $ 697,565 $ 694,386

December 31, 2023

6 unchanged sentences

Total Loan 1 295,996 294,783 + 4.86 % March 2027

Junior Participations

Loan Participation

2 $ 100,924 $ 100,680 + 7.50 % February 2026

2 401,569 399,603 + 4.75 % February 2026

Loan Participation (4)

3 $ 337,721 $ 337,179

1 unchanged sentence

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

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

This non-debt participation sold structure is inherently matched in terms of currency and interest rate.

2 unchanged sentences

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

(4) During the year ended December 31, 2023, we recorded $ 20.6 million of interest expense related to our loan participations sold.

During the year ended December 31, 2022 we recorded $ 7.9 million of interest expense related to our loan participations sold.

(4) During the years ended December 31, 2024 and 2023, we recorded $ 22.6 million and $ 20.6 million, respectively, of interest expense related to our loan participations sold.

Blackstone Mortgage Trust, Inc.

1 unchanged sentence

TERM LOANS, NET

During the year ended December 31, 2024, we borrowed an additional $ 650.0 million under one of our senior term loan facilities, or the B-5 Term Loan.

The B-5 Term Loan bears interest at SOFR plus 3.75 % and matures in December 2028.

The proceeds of the B-5 Term Loan were used to repay in full the $ 407.8 million outstanding on the B-3 Term Loan and $ 242.2 million of the B-1 Term Loan.

Additionally, we repaid an incremental $ 350.0 million of the B-1 Term Loan using proceeds from the issuance of the 7.75 % senior secured notes due 2029, or the senior secured notes due 2029.

As of December 31, 2024, the following senior term loan facilities, or Term Loans, were outstanding ($ in thousands):

2 unchanged sentences

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 face value $ 1,764,437

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During the year ended December 31, 2024, we recorded $ 184.9 million of interest expense related to our Term Loans, including $ 11.8 million of amortization of deferred fees and expenses.

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 %.

This resulted in a gain on extinguishment of debt of $ 25,000 during the year ended December 31, 2024.

There was no repurchase activity during the year ended December 31, 2023.

The following table details the net book value of our Term Loans on our consolidated balance sheets ($ in thousands):

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Refer to Note 2 for additional discussion of our accounting policies for the Term Loans.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

SENIOR SECURED NOTES, NET

During the year ended December 31, 2024, we issued $ 450.0 million aggregate principal amount of the senior secured notes due 2029.

As of December 31, 2024, the following senior secured notes, or Senior Secured Notes, were outstanding ($ in thousands):

Senior Secured Notes Face Value Interest Rate All-in Cost (1)

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

Senior Secured Notes Issuance

Face Value Interest Rate All-in Cost (1)

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

December 2024

450,000 7.75 % (2)

8.14 % December 1, 2029

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

The transaction expenses on the Senior Secured Notes were $ 6.3 million, which are amortized into interest expense over the life of the Senior Secured Notes.

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

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

The transaction expenses on the senior secured notes due 2027, or the October 2021 senior secured notes, were $ 6.3 million, which are amortized into interest expense over the life of the October 2021 senior secured notes.

The transaction expenses on the senior secured notes due 2029 were $ 7.9 million, which are amortized into interest expense over the life of the senior secured notes due 2029.

During the year ended December 31, 2024, we recorded $ 16.1 million of interest expense related to our Senior Secured Notes, including $ 1.1 million of amortization of deferred fees and expenses.

During the year ended December 31, 2023, we repurchased an aggregate principal amount of $ 33.9 million of the Senior Secured Notes at a weighted-average price of 85 %.

During the year ended December 31, 2024, we repurchased an aggregate principal amount of $ 30.8 million of the October 2021 senior secured notes at a weighted-average price of 88 %.

This resulted in a gain on extinguishment of debt of $ 3.3 million during the year ended December 31, 2024.

There was no repurchase activity during the year ended December 31, 2022.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

During the year ended December 31, 2023, we repurchased an aggregate principal amount of $ 33.9 million of the October 2021 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.

The following table details the net book value of our Senior Secured Notes on our consolidated balance sheets ($ in thousands):

2 unchanged sentences

Deferred financing costs ( 9,857 ) ( 3,327 )

Hedging adjustments (1)

Net book value $ 771,035 $ 362,763

(1) Represents the fair value of an interest rate swap that we entered into to convert the fixed rate exposure of the senior secured notes due 2029 into floating rate.

Refer to Note 14 for additional discussion.

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

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CONVERTIBLE NOTES, NET

During the year ended December 31, 2023, we repaid the aggregate $ 220.0 million principal amount of our 4.75 % convertible senior notes due 2023 at maturity on March 15, 2023.

As of December 31, 2024, the following convertible senior notes, or Convertible Notes, were outstanding ($ in thousands):

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

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Other than as provided by the optional redemption provisions with respect to our Convertible Notes, we may not redeem the Convertible Notes prior to maturity.

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The last reported sale price of our class A common stock of $ 17.41 on December 31, 2024, the last trading day in the year ended December 31, 2024, was less than the per share conversion price of the Convertible Notes.

During the year ended December 31, 2024, we repurchased an aggregate principal amount of $ 33.8 million of the Convertible Notes at a weighted-average price of 93 %.

This resulted in a gain on extinguishment of debt of $ 2.0 million during the year ended December 31, 2024.

There was no repurchase activity during the year ended December 31, 2023.

The following table details the net book value of our Convertible Notes on our consolidated balance sheets ($ in thousands):

3 unchanged sentences

Net book value $ 263,616 $ 295,847

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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

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We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Designated Hedges of Foreign Currency Risk

4 unchanged sentences

Buy USD / Sell SEK Forward 2 kr 971,180 Buy USD / Sell SEK Forward 2 kr 973,246

Buy USD / Sell GBP Forward 7 £ 696,919 Buy USD / Sell EUR Forward 8 € 722,311

Buy USD / Sell EUR Forward 8 € 673,644 Buy USD / Sell GBP Forward 6 £ 690,912

Buy USD / Sell GBP Forward 5 £ 604,739 Buy USD / Sell GBP Forward 7 £ 696,919

Buy USD / Sell EUR Forward 8 € 603,910 Buy USD / Sell EUR Forward 8 € 673,644

Buy USD / Sell AUD Forward 6 A$ 355,703 Buy USD / Sell AUD Forward 10 A$ 471,989

Buy USD / Sell DKK Forward 2 kr.

195,674 Buy USD / Sell DKK Forward 3 kr.

Buy USD / Sell CHF Forward 4 CHF 8,352 Buy USD / Sell CAD Forward 2 C$ 22,187

Buy USD / Sell CHF Forward 1 CHF 6,752 Buy USD / Sell DKK Forward 2 kr.

Buy USD / Sell CHF Forward 4 CHF 8,352

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Non-designated Hedges of Foreign Currency Risk

The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign currency risk (notional amounts in thousands):

The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign currency risk as of December 31, 2023 (notional amounts in thousands):

December 31, 2024 December 31, 2023

1 unchanged sentence

Non-designated Hedges Number of

Buy SEK / Sell USD Forward 1 kr 30,800 Buy GBP / Sell USD Forward 2 £ 109,076

Buy USD / Sell SEK Forward 1 kr 30,800 Buy USD / Sell GBP Forward 2 £ 109,076

Buy GBP / Sell USD Forward 2 £ 26,900 Buy AUD / Sell USD Forward 1 A$ 23,600

Buy USD / Sell GBP Forward 2 £ 26,900 Buy USD / Sell AUD Forward 1 A$ 23,600

Buy GBP / Sell USD Forward 3 £ 54,400 Buy SEK / Sell USD Forward 1 kr 30,800

Buy USD / Sell GBP Forward 3 £ 54,400 Buy USD / Sell SEK Forward 1 kr 30,800

Buy GBP / Sell USD Forward 2 £ 26,900

Buy USD / Sell GBP Forward 2 £ 26,900

Buy AUD / Sell USD Forward 1 A$ 7,600

3 unchanged sentences

We use derivative financial instruments, which include interest rate swaps, and may also include interest rate caps, interest rate options, floors, and other interest rate derivative contracts, to hedge interest rate risk associated with our borrowings where there is potential for an index mismatch.

The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (notional amount in thousands):

No cash flow hedges of interest rate risk were outstanding as of December 31, 2024.

The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of December 31, 2023 (notional amount in thousands):

December 31, 2023

Interest Rate Derivatives Number of Instruments Notional Amount Fixed Rate Index Wtd.

Maturity (Years)

Interest Rate Derivatives Number of Instruments Notional Amount Fixed Rate Index Maturity (Years)

Interest Rate Swaps 1 $ 229,858 4.60 % SOFR 0.9

No cash flow hedges of interest rate risk were outstanding as of December 31, 2022.

Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on our floating rate debt.

During the twelve months following December 31, 2023, we estimate that an additional $ 317,000 will be reclassified from accumulated other comprehensive income (loss) as a decrease to interest expense.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Fair Value Hedges of Interest Rate Risk

Certain of our corporate financings expose us to fluctuations in the fair value of our outstanding fixed rate debt.

We use derivative financial instruments, which include interest rate swaps, to hedge interest rate risk associated with changes in the fair value of our fixed rate debt.

The changes in the value of the interest rate swap is recognized in earnings and offset the corresponding changes in the fair value of the debt.

The following table details our outstanding interest rate derivatives that were designated as fair value hedges of interest rate risk (notional amount in thousands):

December 31, 2024

Interest Rate Derivatives

Number of Instruments Notional Amount Fixed Rate

Index Maturity (Years)

Interest Rate Swaps 1 $ 450,000 3.81 % SOFR 4.9

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

hedges for the year ended December 31, 2024.

December 31, 2024

Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included Carrying Amount of the Hedged Assets/ Liabilities

Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount

Senior secured notes, net $ 437,759 $ ( 4,424 )

No fair value hedges of interest rate risk were outstanding as of December 31, 2023.

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

2 unchanged sentences

Year Ended December 31,

in Hedging Relationships

Location of Income

Derivatives in Hedging Relationships Location of Income

(Expense) Recognized

6 unchanged sentences

Non-Designated Hedges Interest Expense (3)

( 71 ) 100 ( 6,911 )

Total $ 17,569 $ 26,326 $ 19,948

1 unchanged sentence

These forward contracts effectively convert the foreign currency rate exposure for such investments to USD-equivalent interest rates.

(2) Represents the financial statement impact of proceeds (payments) from periodic settlements related to our interest rate swap, which is designated as a cash flow hedge.

(2) Represents the financial statement impact of proceeds (payments) from periodic settlements related to our interest rate swap.

(3) Represents the spot rate movement in our non-designated foreign currency hedges, which are marked-to-market and recognized in interest expense.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Fair Value Hedges

The following table presents the net gains (losses) on derivatives and the related hedged items in fair value hedging relationships for the year ended December 31, 2024 ($ in thousands):

Year Ended December 31, 2024

Total interest and related expenses presented in the consolidated statement of operations

Gains (losses) on fair value hedging relationships:

Total gain (loss) on derivative instruments

Fair value basis adjustment on hedged items

Derivative settlements and accruals

Net Gains (Losses) on Fair Value Hedging Relationships (1)

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

Valuation and Other Comprehensive Income

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Derivatives in Hedging Relationships

Amount of (Loss) Gain Recognized in

OCI on Derivatives Location of

Amount of Gain (Loss) Recognized in

OCI on Derivatives

from Accumulated OCI into Income Amount of

11 unchanged sentences

(1) During the year ended December 31, 2024, we paid net cash settlements of $ 59.8 million on our foreign currency forward contracts.

During the year ended December 31, 2023, we paid net cash settlements of $ 69.9 million on our foreign currency forward contracts.

During the year ended December 31, 2022, we received net cash settlements of $ 330.3 million on our foreign currency forward contracts.

During the year ended December 31, 2021, we paid net cash settlements of $ 1.4 million on our foreign currency contracts.

Those amounts are included as a component of accumulated other comprehensive income on our consolidated balance sheets.

(2) During the year ended December 31, 2023, we recorded total interest and related expenses of $ 1.4 billion which was reduced by $ 893,000 related to income generated by our cash flow hedges.

During the years ended December 31, 2022, and 2021, we recorded total interest and related expenses of $ 710.9 million and $ 340.2 million, respectively, which included $ 4,000 and $ 10,000 , respectively, related to our cash flow hedges.

(2) During the year ended December 31, 2024, we recorded total interest and related expenses of $ 1.3 billion which was reduced by $ 1.3 million related to income generated by our cash flow hedges.

During the years ended December 31, 2023 and 2022, we recorded total interest and related expenses of $ 1.4 billion and $ 710.9 million, respectively, which included $ 893,000 and $ 4,000 , respectively, related to our cash flow hedges.

Credit-Risk Related Contingent Features

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In addition, certain of our agreements with our derivative counterparties require that we post collateral to secure net liability positions.

As of December 31, 2023, we were in a net liability position with our counterparties.

As of December 31, 2023, we had $ 103.5 million collateral posted with our counterparties.

As of December 31, 2022, we were in a net liability position with one of our counterparties and in a net asset position with our other counterparty.

As of December 31, 2022 we had collateral posted with our counterparties of $ 103.1 million.

As of December 31, 2024, we were in a net asset position with our counterparties related to our foreign exchange hedges, and had $ 4.8 million of collateral posted with one counterparty related to our interest rate swap.

As of December 31, 2023, we were in a net liability position with our counterparties, and had $ 103.5 million of collateral posted with our counterparties.

Stock and Stock Equivalents

4 unchanged sentences

We did not have any shares of preferred stock issued and outstanding as of December 31, 2024 and 2023.

Class A Common Stock and Deferred Stock Units

Holders of shares of our class A common stock are entitled to vote on all matters submitted to a vote of stockholders and are entitled to receive dividends authorized by our board of directors and declared by us, in all cases subject to the rights of the holders of shares of outstanding preferred stock, if any.

Share Repurchase Program

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

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

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

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

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

We did not issue any class A common stock in underwritten public offerings during the year ended December 31, 2023.

The following table details our issuance of class A common stock during the years ended December 31, 2022 and 2021.

($ in thousands, except per share data):

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

We did no t have any repurchases of class A common stock during the year ended December 31, 2023.

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

Class A Common Stock and Deferred Stock Units

We did not issue any class A common stock in underwritten public offerings during the years ended December 31, 2024 and 2023.

The following table details our issuance of class A common stock during the year ended December 31, 2022 ($ in thousands, except per share data):

Class A Common Stock Offerings

2 unchanged sentences

31.23 / 30.92

31.64 / 31.37

Net proceeds (3)

$ 70,651 $ 638,005

(1) Represents shares issued under our at-the-market program.

(2) Issuance includes 296,901 shares issued under our at-the-market program, with a weighted-average gross share issue price of $ 33.67 .

(2) Represents the gross price per share issued, as well as the net proceeds per share after underwriting or sales discounts and commissions.

11 unchanged sentences

5,849 6,587 2,311,711

Repurchase of class A common stock ( 1,646,034 ) — —

Issuance of restricted class A common stock, net (3)(4)

4 unchanged sentences

(2) Includes 5,849 , 6,587 , and 8,242 shares issued under our dividend reinvestment program during the years ended December 31, 2024, 2023, and 2022, respectively.

(3) Includes 25,482 and 13,197 restricted shares issued to our board of directors during the years ended December 31, 2023 and 2022, respectively.

(3) Includes 41,282 , 25,482 , and 13,197 shares of restricted class A common stock issued to our board of directors during the years ended December 31, 2024, 2023, and 2022, respectively.

(4) Net of 102,484 , 15,477 , and 39,655 shares of restricted class A common stock forfeited under our stock-based incentive plans during the years ended December 31, 2024, 2023, and 2022, respectively.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Dividend Reinvestment and Direct Stock Purchase Plan

2 unchanged sentences

The direct stock purchase component allows stockholders and new investors, subject to our approval, to purchase shares of class A common stock directly from us.

During the years ended December 31, 2023, 2022, and 2021, we issued 6,587 shares, 8,242 shares, and 2,184 shares, respectively, of class A common stock under the dividend reinvestment component of the plan.

During the years ended December 31, 2024, 2023, and 2022, we issued 5,849 shares, 6,587 shares, and 8,242 respectively, of class A common stock under the dividend reinvestment component of the plan.

As of December 31, 2024, a total of 9,969,112 shares of class A common stock remained available for issuance under the dividend reinvestment and direct stock purchase plan.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

At the Market Stock Offering Program

2 unchanged sentences

Actual sales depend on a variety of factors including market conditions, the trading price of our class A common stock, our capital needs, and our determination of the appropriate sources of funding to meet such needs.

During the year ended December 31, 2023, we did no t issue any shares of our class A common stock under ATM Agreements.

During the year ended December 31, 2022, we issued and sold 2,303,469 shares of class A common stock under ATM Agreements, generating net proceeds totaling $ 70.7 million.

During the years ended December 31, 2024 and 2023, we did no t issue any shares of our class A common stock under ATM Agreements.

During the year ended December 31, 2022, we issued and sold 2,303,469 shares of class A common stock under ATM Agreements, generating net proceeds totaling $ 70.7 million.

23 unchanged sentences

2024 2023 2022

Net income (1)

Net (loss) income (1)

$ ( 204,088 ) $ 246,555 $ 248,642

3 unchanged sentences

$ ( 1.17 ) $ 1.43 $ 1.46

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

(2) For the years ended December 31, 2023 and 2022, our Convertible Notes were not included in the calculation of diluted earnings per share, as the impact is antidilutive.

For the year ended December 31, 2021, prior to the adoption of ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40):

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,” our convertible notes were not assessed for dilution as we had the intent and ability to settle the convertible notes in cash.

Our Convertible Notes could dilute earnings per share in future periods.

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

(2) For the years ended December 31, 2024, 2023, and 2022, our Convertible Notes were no t included in the calculation of diluted earnings per share, as the impact is antidilutive.

Refer to Note 13 for further discussion of our convertible notes.

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Management and Incentive Fees

Pursuant to a management agreement between our Manager and us, or our Management Agreement, our Manager earns a base management fee in an amount equal to 1.50 % per annum multiplied by our outstanding equity balance, as defined in the Management Agreement.

In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i) 20 % and (ii) the excess of (a) our Core Earnings (as defined in our Management Agreement) for the previous 12-month period over (b) an amount equal to 7.00 % per annum multiplied by our outstanding Equity, provided that our Core Earnings over the prior three-year period is greater than zero .

In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i) 20 % and (ii) the excess of (a) our Core Earnings (as defined in our Management Agreement) for the previous 12-month period over (b) an amount equal to 7.00 % per annum multiplied by our Equity, provided that our Core Earnings over the prior three-year period is greater than zero .

Core Earnings, as defined in our Management Agreement, is generally equal to our GAAP net income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), (iv) net income (loss) attributable to our legacy portfolio, (v) certain non-cash items, and (vi) incentive management fees.

During the years ended December 31, 2024, 2023, and 2022, we incurred $ 74.8 million, $ 74.8 million, and $ 73.0 million, respectively, of management fees payable to our Manager.

During the year ended December 31, 2024, we did not incur any incentive fees payable to our Manager.

During the years ended December 31, 2023 and 2022, we incurred $ 44.2 million and $ 37.3 million, respectively, of incentive fees payable to our Manager.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

amortization, (iii) unrealized gains (losses), (iv) net income (loss) attributable to our legacy portfolio, (v) certain non-cash items, and (vi) incentive management fees.

During the years ended December 31, 2023, 2022 and 2021, we incurred $ 74.8 million, $ 73.0 million and $ 64.2 million respectively, of management fees payable to our manager.

In addition, during the years ended December 31, 2023, 2022 and 2021, we incurred $ 44.2 million, $ 37.3 million and $ 24.3 million respectively, of incentive fees payable to our Manager.

As of December 31, 2023 and 2022 we had accrued management and incentive fees payable to our Manager of $ 26.3 million and $ 33.8 million, respectively.

As of December 31, 2024, we had accrued management fees payable to our Manager of $ 18.5 million.

As of December 31, 2023, we had accrued management and incentive fees payable to our Manager of $ 26.3 million.

General and Administrative Expenses

10 unchanged sentences

Total general and administrative expenses $ 53,922 $ 51,143 $ 52,193

(1) During the years ended December 31, 2023, 2022 and 2021, we recognized an aggregate $ 1.2 million, $ 1.1 million, and $ 748,000 , respectively, of expenses related to our Multifamily Joint Venture.

(1) During the years ended December 31, 2024, 2023, and 2022, we recognized an aggregate $ 743,000 , $ 1.2 million, and $ 1.1 million, respectively, of expenses related to our Multifamily Joint Venture.

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

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We have not made UBTI distributions to our common stockholders and do not intend to make such UBTI distributions in the future.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

During the years ended December 31, 2023, 2022 and 2021, we recorded a current income tax provision of $ 5.4 million, $ 3.0 million, and $ 423,000 , respectively, primarily related to activities of our U.S.

During the years ended December 31, 2024, 2023, and 2022, we recorded a current income tax provision of $ 2.4 million, $ 5.4 million, and $ 3.0 million, respectively, primarily related to activities of our U.S.

and foreign taxable subsidiaries and various state and local taxes.

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As a result of our issuance of 25,875,000 shares of class A common stock in May 2013, the availability of our NOLs is generally limited to $ 2.0 million per annum by change of control provisions promulgated by the Internal Revenue Service with respect to the ownership of Blackstone Mortgage Trust.

As of December 31, 2023, we had estimated NOLs of $ 159.0 million that will expire in 2029, unless they are utilized by us prior to expiration.

As of December 31, 2024, we had

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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

Previously, we recorded a full valuation allowance against such NOLs as we expected that they would expire unutilized.

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Notes to Consolidated Financial Statements (continued)

During 2024, we modified two loans that included, among other changes, an equity interest in and/or control over decision-making at the property.

As a result of the modification, our investments in these loans are VIEs.

As of December 31, 2024, we are the primary beneficiary of, and therefore consolidated the assets of these VIEs on our balance sheet as we (i) have the power to direct the activities that most significantly affect the property, and (ii) have the right to receive excess sale proceeds upon exit.

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

December 31, 2024 December 31, 2023

Cash and cash equivalents $ 9,145 $ —

Loans receivable 2,338,201 3,061,278

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Loans receivable, net 2,135,801 2,877,770

Real estate owned, net 177,322 —

Other assets 126,518 103,692

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The liabilities of these VIEs are non-recourse to us and can only be satisfied from the assets of the VIEs.

The consolidation of these VIEs results in an increase in our gross assets, liabilities, interest income and interest expense, however it does not affect our stockholders’ equity or net income.

We are not obligated to provide, have not provided, and do not intend to provide financial support to these consolidated VIEs.

The consolidation of these VIEs results in an increase in our gross assets, liabilities, revenues and expenses, however it does not affect our stockholders’ equity or net income.

We are not obligated to provide, have not provided, and do not intend to provide material financial support to these consolidated VIEs.

TRANSACTIONS WITH RELATED PARTIES

We are managed by our Manager pursuant to the Management Agreement, the current term of which expires on December 19, 2024, and will be automatically renewed for a one-year term upon such date and each anniversary thereafter unless earlier terminated.

As of December 31, 2023 and 2022, our consolidated balance sheets included $ 26.3 million and $ 33.8 million of accrued management and incentive fees payable to our Manager, respectively.

We are managed by our Manager pursuant to the Management Agreement.

The current term of the Management Agreement expires on December 19, 2025, and will be automatically renewed for a one-year term upon such date and each anniversary thereafter unless earlier terminated.

As of December 31, 2024, our consolidated balance sheet included $ 18.5 million of accrued management fees payable to our Manager.

As of December 31, 2023, our consolidated balance sheet included $ 26.3 million of accrued management and incentive fees payable to our Manager.

During the years ended December 31, 2024, 2023 and 2022, we paid aggregate management and incentive fees of $ 82.6 million, $ 126.6 million, and $ 104.8 million, respectively, to our Manager.

In addition, during the years ended December 31, 2023, 2022, and 2021, we incurred expenses of $ 3.4 million, $ 896,000 , and $ 601,000 , respectively, that were paid by our Manager and will be reimbursed by us.

As of December 31, 2023, our Manager held 1,311,056 shares of unvested restricted class A common stock, which had an aggregate grant date fair value of $ 32.2 million, and vest in installments over three years from the date of issuance.

In addition, during the years ended December 31, 2024, 2023 and 2022, we incurred expenses of $ 1.6 million, $ 3.4 million and $ 896,000 , respectively, that were paid by our Manager and have been or will be reimbursed by us.

As of December 31, 2024, our Manager held 1,320,898 shares of unvested restricted class A common stock, which had an aggregate grant date fair value of $ 28.0 million.

These shares vest in installments over three years from the date of issuance.

During the years ended December 31, 2024, 2023 and 2022, we recorded non-cash expenses related to shares held by our Manager of $ 16.6 million, $ 14.6 million and $ 16.6 million , respectively.

Refer to Note 18 for further details on our restricted class A common stock.

As of December 31, 2023, our Manager, its affiliates, Blackstone employees, and our directors held an aggregate 12,531,542 shares, or 7.2 %, of our class A common stock, of which 7,582,044 shares, or 4.4 %, were held by subsidiaries of Blackstone, including our Manager.

As of December 31, 2024, our Manager, its affiliates (including Blackstone), Blackstone employees, and our directors held an aggregate 13,136,754 shares, or 7.6 %, of our class A common stock, of which 8,234,581 shares, or 4.8 %, were held by Blackstone and its subsidiaries.

Additionally, our directors held 412,096 of deferred stock units as of December 31, 2024.

CT Investment Management Co., LLC, or CTIMCO, an affiliate of our Manager, is the special servicer of the CLOs.

CTIMCO did not earn any special servicing fees related to the CLOs during the years ended December 31, 2023, 2022, and 2021.

During the year ended December 31, 2021, we originated three loans whereby the respective borrowers engaged an affiliate of our Manager to act as title insurance agent in connection with these transactions.

We did not incur any expenses or receive any revenues as a result of these transactions.

There were no similar transactions during the years ended December 31, 2023 and 2022.

We have engaged Revantage Corporate Services, LLC and Revantage Global Services Europe S.à r.l., portfolio companies owned by Blackstone-advised investment vehicles, to provide, as applicable, corporate support services, operational

Certain of the parties listed above have in the past purchased or sold shares of our class A common stock in open market transactions, and such parties may in the future purchase or sell additional shares of our class A common stock.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

services, and management services.

These services are provided on an allocated cost basis.

Additionally, we have engaged an affiliate of our Manager to provide internal audit services.

During the years ended December 31, 2023, 2022 and 2021, we incurred $ 658,000 , $ 524,000 , and $ 385,000 , respectively, of expenses for various administrative and operations services to these service providers that are affiliates of our Manager.

transactions would be made in the sole discretion of the relevant party based on market conditions and other considerations relevant to such parties.

Affiliate Service Providers

We have engaged certain portfolio companies owned by Blackstone-advised investment vehicles, to provide management, operational and corporate support services.

The following table details the amounts incurred for affiliate service provides ($ in thousands):

Year Ended December 31,

2024 2023 2022

Revantage Corporate Services, LLC and Revantage Global Services Europe S.à r.l.

$ 1,270 $ 658 $ 524

EQ Management, LLC (2)

LivCor, LLC (2)

BRE Hotels & Resorts, LLC (2)

$ 2,125 $ 658 $ 524

(1) As applicable, provides corporate support services, operational services, and management services to certain of our investments directly.

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

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Affiliates of our Manager

We have engaged affiliates of our Manager to provide various services noted below.

The following table details the amounts incurred for these affiliates of our manager ($ in thousands):

Year Ended December 31,

2024 2023 2022

BTIG, LLC (1)

$ 124 $ 1 $ 191

Gryphon Mutual Property Americas IC (2)

Blackstone Internal audit services

CT Investment Management Co., LLC (3)

Lexington National Land Services (4)

Blackstone Securities Partners L.P.

Total $ 1,121 — $ 96 $ 1,111

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

We utilized BTIG as a broker to engage third-parties to facilitate our repurchase of our Senior Secured Notes.

During the year ended December 31, 2023, we repurchased $ 500,000 of our Senior Secured Notes utilizing BTIG as a broker.

BTIG received aggregate fees of $ 1,000 in such capacity.

The fees were on terms equivalent to those of other brokers under similar arrangements.

BTIG did not act as a broker to engage third-parties to repurchase our Senior Secured Notes during the years ended December 31, 2022 or 2021.

BTIG was utilized as a broker to engage third-parties to facilitate our repurchase of our Senior Secured Notes and Convertible Notes.

During the years ended December 31, 2024 and 2023, we repurchased $ 33.8 million and $ 500,000 of our Senior Secured Notes and Convertible Notes, respectively, utilizing BTIG as a broker.

During the year ended 2022, we did not utilize BTIG as a broker.

Additionally, we engaged BTIG as a sales agent to sell shares of our class A common stock under our ATM Agreements.

During the year ended December 31, 2022, BTIG received aggregate fees of $ 191,000 in such capacity.

The fees paid were on terms equivalent to those of other sales agents engaged to sell shares under our ATM agreements.

BTIG did not sell any shares under our ATM agreements in the years ended December 31, 2023 or 2021.

During the year ended December 31, 2022, BTIG sold shares under our ATM agreements.

During the years ended December 31, 2024 and 2023, we did not sell any shares under our ATM agreements.

These engagements were on terms equivalent to those of third parties under similar arrangements.

(2) In the first quarter of 2024, in order to provide insurance for our REO assets, we became a member of Gryphon Mutual Property Americas IC, or Gryphon, a captive insurance company owned by us and other Blackstone-advised investment vehicles.

A Blackstone affiliate provides oversight and advisory services to Gryphon and receives fees based on a percentage of premiums paid for such policies.

The fees and expenses of Gryphon, including insurance premiums and fees paid to its manager, are paid annually and borne by us and the other Blackstone-advised investment vehicles that are members of Gryphon pro rata based on insurance premiums paid for each party’s respective properties.

During the year ended December 31, 2024, we paid $ 660,000 to Gryphon for insurance costs, inclusive of premiums, capital surplus contributions, taxes, and our pro rata share of other expenses.

Of this amount, $ 13,000 was attributable to the fee paid to a Blackstone affiliate to provide oversight and management services to Gryphon.

The amounts included in the table above reflect the amortization of the insurance expense over the period of the respective policies.

(3) CT Investment Management Co., LLC is the special servicer of the CLOs.

As of December 31, 2024, two of our assets were in special servicing under the CLOs.

CTIMCO has waived any fees that would be payable to a special servicer pursuant to the applicable servicing agreements, and no such fees have been paid or will become payable to CTIMCO.

(4) Lexington National Land Services, or LNLS, a title agent company owned by Blackstone, acts as an agent for one or more underwriters in issuing title policies and/or providing support services in connection with investments by us, Blackstone and their affiliates and related parties, and third-parties.

LNLS focuses on transactions in rate-regulated states where the cost of title insurance is non-negotiable.

LNLS will not perform services in non-regulated states for us, unless (i) in the context of a portfolio transaction that includes properties in rate-regulated states, (ii) as part of a syndicate of title insurance companies where the rate is negotiated by other insurers or their agents, (iii) when a third-party is paying all or a material portion of the premium or (iv) when providing only support services to the underwriter.

LNLS earns fees, which would have otherwise been paid to third parties, by providing title agency services and facilitating placement of title insurance with underwriters.

Blackstone receives distributions from LNLS in connection with investments by us based on its equity interest in LNLS.

In each case, there will be no related expense offset to us.

The costs included above were capitalized into REO assets on our consolidated balance sheet.

(5) In the fourth quarter of 2024, Blackstone Securities Partners L.P., or BSP, an affiliate of our Manager, was engaged as a member of the syndicate for our B-5 Term Loan and our 2024 Senior Secured Notes.

These engagements were on terms equivalent to those of unaffiliated parties.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Affiliate Transactions

In the fourth quarter of 2024, pursuant to our Agency Multifamily Lending Partnership, we referred three loans to MTRCC for origination, where the borrower was a Blackstone-advised investment vehicle.

The loan terms and pricing were on market terms negotiated by MTRCC.

Pursuant to our Agency Multifamily Lending Partnership, we received $ 217,000 of origination and servicing fees for referring these loans.

In the fourth quarter of 2024, as part of broad syndications led by a third party, Blackstone-advised investment vehicles acquired (i) an aggregate $ 62.5 million participation in our $ 650.0 million B-5 Term Loan, and (ii) an aggregate $ 80.0 million of our $ 450.0 million senior secured notes due 2029.

In the second and fourth quarter of 2022, a Blackstone-advised investment vehicle acquired an aggregate $ 33.0 million participation, or 4 %, of the aggregate B-4 Term Loan as a part of a broad syndication lead-arranged by a third-party.

All of these transactions were on terms equivalent to those of unaffiliated parties.

BSP was engaged as a member of the syndicate for both transactions.

See “—Affiliates of our Manager” for more information.

In the fourth quarter of 2024, in connection with the modification of one of our senior loans, a Blackstone-advised investment vehicle purchased a pari passu participation in the loan from a third party at a discount to par.

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

As part of the discounted payoff, a Blackstone-advised investment vehicle’s mezzanine loan, which had been part of the total financing, received a small repayment.

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

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

We will forgo all non-economic rights under our loan, including voting rights, so long as any Blackstone-advised investment vehicle controls the mezzanine loan.

The intercreditor agreement between the senior loan lender and the mezzanine lender was negotiated on market terms by a third party without our involvement, and our 17 % interest in the senior loan was made on such market terms.

In 2019 and 2021, we acquired an aggregate participation of € 350.0 million of a senior loan to a borrower that is partially owned by a Blackstone-advised investment vehicle.

We forgo all non-economic rights under the loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower.

The loan was negotiated by third parties on market terms without our involvement, and our interest in the senior loan was subject to such market terms.

In the third quarter of 2024, the borrower under a senior loan to the same borrower in which we held a minority position completed a refinancing transaction involving new lenders and the existing lenders.

We elected to sell € 232.0 million of our then remaining € 347.0 million loan position to the new lenders at par and extend the remainder on modified terms.

The terms of the modification (which included, among other changes, an extension of the maturity date, and increase in the interest rate, and additional guarantees) were negotiated by our third-party co-lender.

In the fourth quarter of 2018, we originated £ 148.7 million of a total £ 303.5 million senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle.

The loan terms were negotiated by our third-party co-lender, and we will forgo all non-economic rights under the loan, including voting rights, so long as a Blackstone-advised investment vehicle controls the borrower.

In the third quarter of 2024, we agreed to a refinancing transaction pursuant to which £ 46.4 million of our £ 148.7 million participation in an existing £ 303.5 million loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle was repaid, and we received a £ 100.0 million participation in a new loan made to the same borrower that continues to be controlled by a Blackstone-advised investment vehicle, and the terms of the loan were modified to include, among other changes, an expanded collateral pool, an extension of the maturity date and an increase in the interest rate.

The transaction, including the terms of the modification, was negotiated by our third-party co-lender.

In the second quarter of 2024, a Blackstone-advised investment vehicle acquired a portfolio of assets from an unaffiliated third-party borrower.

The proceeds of this transaction repaid a £ 46.5 million performing junior loan owned by us, and a £ 186.0 million performing senior loan owned by an unaffiliated third-party, both of which were included in our consolidated balance sheets, with the senior loan also recorded as a loan participation sold liability.

The transaction was initiated by the third-party borrower with the sale pricing on market terms and the repayment completed in accordance with the loan agreements between the lenders and the unaffiliated third-party borrower.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

In the first quarter of 2024, a Blackstone-advised investment vehicle originated a loan to one of our unaffiliated third-party borrowers, the proceeds of which repaid a $ 98.6 million performing senior loan owned by us.

The transaction was initiated by the third-party borrower with the loan terms and pricing on market terms.

In the first quarter of 2019, we originated £ 240.1 million of a total £ 490.0 million senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle.

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The terms of the modification were negotiated by our third-party co-lender, and we agreed to the modification on such terms.

In the second quarter of 2022, we participated in A$ 1.3 billion, or 24.5 %, of an aggregate A$ 5.4 billion senior loan that was originated by an unaffiliated third party to a borrower that is wholly-owned by Blackstone-advised investment vehicles.

Another Blackstone-advised investment vehicle participated in an additional A$ 1.3 billion, or 24.5 %, of the loan.

We will forgo all non-economic rights under the loan, including voting rights, so long as we are an affiliate of the borrower.

The senior loan terms were negotiated by a third-party without our involvement and our 24.5 % interest in the senior loan was made on such market terms.

In the second quarter of 2022, we co-originated £ 250.0 million of an aggregate £ 500.0 million senior loan to an unaffiliated third-party.

A Blackstone-advised investment vehicle co-originated the additional pari passu £ 250.0 million of the loan.

In the second and fourth quarters of 2022, a Blackstone-advised investment vehicle acquired an aggregate $ 33.0 million participation, or 4 %, of the aggregate B-4 Term Loan as a part of a broad syndication lead-arranged by JP Morgan.

Blackstone Securities Partners L.P., an affiliate of our Manager, was engaged as a book-runner for the transaction and received aggregate fees of $ 825,000 in such capacity.

Both of these transactions were on terms equivalent to those of unaffiliated parties.

In the fourth quarter of 2021, we issued $ 400.0 million aggregate principal amount of 3.75 % Senior Secured Notes.

The Senior Secured Notes were issued at par and have a maturity date of January 15, 2027.

Blackstone Securities Partners L.P., an affiliate of our Manager, participated in the offering of the Senior Secured Notes and received compensation of $ 400,000 in connection therewith.

This transaction was on terms equivalent to those of unaffiliated parties.

In the second quarter of 2021 and 2020, certain Blackstone-advised investment vehicles acquired an aggregate $ 20.0 million participation, or 15 %, of the initial aggregate B-3 Term Loan as a part of a broad syndication lead-arranged by JP Morgan.

Blackstone Securities Partners L.P., an affiliate of our Manager, was engaged as a book-runner for the transaction and received aggregate fees of $ 350,000 in such capacity.

Both of these transactions were on terms equivalent to those of unaffiliated parties.

In the first quarter of 2021, a Blackstone-advised investment vehicle acquired an aggregate $ 5.5 million participation, or 3 %, of the $ 200.0 million increase to our B-1 Term Loan as a part of a broad syndication lead-arranged by JP Morgan.

Blackstone Securities Partners L.P., an affiliate of our Manager, was engaged as a book-runner for the transaction and received aggregate fees of $ 200,000 in such capacity.

Both of these transactions were on terms equivalent to those of unaffiliated parties.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

COMMITMENTS AND CONTINGENCIES

Unfunded Commitments Under Loans Receivable

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

As of December 31, 2024, we had aggregate unfunded commitments of $ 1.3 billion across 60 loans receivable, and $ 605.9 million of committed or identified financings 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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Refer to Note 13 for further details on our Convertible Notes.

(4) Total does not include $ 2.5 billion of consolidated securitized debt obligations, $ 1.1 billion of non-consolidated senior interests, and $ 337.7 million of loan participations sold, as the satisfaction of these liabilities will not require cash outlays from us.

(4) 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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Board of Directors’ Compensation

As of December 31, 2023, of the ten members of our board of directors, our six independent directors are entitled to annual compensation of $ 210,000 each, of which $ 95,000 is paid in cash and $ 115,000 is paid in the form of deferred stock units or, at their election, shares of restricted common stock.

As of December 31, 2023, the other four board members, including our chairman and our chief executive officer, are not compensated by us for their service as directors.

In addition, (i) the chairs of our audit, compensation, and corporate governance committees receive additional annual cash compensation of $ 20,000 , $ 15,000 , and $ 10,000 , respectively and (ii) the members of our audit and investment risk management committees receive additional annual cash compensation of $ 10,000 and $ 7,500 , respectively.

As of December 31, 2024, of the nine members of our board of directors, our seven non-employee directors are entitled to annual compensation of $ 210,000 each, of which $ 95,000 is paid in cash and $ 115,000 is paid in the form of deferred stock units or, at their election, shares of restricted common stock.

As of December 31, 2024, the other two board members, the chairperson of the board and our chief executive officer, are not compensated by us for their service as directors.

In addition, (i) the lead independent director receives additional annual cash compensation of $ 30,000 , (ii) the chairs of our audit, compensation, and corporate governance committees receive additional annual cash compensation of $ 20,000 , $ 15,000 , and $ 10,000 , respectively, and (ii) the members of our audit and investment risk management committees receive additional annual cash compensation of $ 10,000 and $ 7,500 , respectively.

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business.

As of December 31, 2024, we were not involved in any material legal proceedings.

SEGMENT REPORTING

Operating segments are defined as components of a business that can earn revenues and incur expenses for which discrete financial information is available that is evaluated on a regular basis by the chief operating decision maker, or CODM.

Our CODM is, collectively, our Chief Executive Officer and Chief Financial Officer, who decide how to allocate resources and assess performance.

A single management team reports to the CODM, who manages the entire business.

We have determined that we have one reportable segment based on how the CODM reviews and manages the business, which originates and acquires commercial mortgage loans and related investments.

Our CODM reviews, among other things, consolidated net income (loss) that is reported on the Consolidated Statements of Operations to make decisions, allocate resources and assess performance and does not evaluate the net income (loss) from any separate geography or product line.

The measure of segment assets is reported on the Consolidated Balance Sheets as total consolidated assets.

Blackstone Mortgage Trust, Inc.

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+ 4.17 % 2027 I/O $ — $ 1,329,829 $ 1,327,886 $ —

Borrower B Mixed-Use / Ireland

Borrower B Mixed-Use / Dublin, IE

+ 3.20 % 2025 I/O — 860,102 855,764 —

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(2) The interest payment rates are expressed as a spread over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, and other indices, as applicable to each loan.

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

(3) Maximum maturity date assumes all extension options are exercised.

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(6) The tax basis of the loans included above is $ 18.6 billion as of December 31, 2024.

(7) We have previously originated a whole loan and sold a senior mortgage interest to a third-party, resulting in these subordinate interests in mortgages and mezzanine loans.

(7) Such loans are generally risk rated “5” with asset-specific CECL reserves, other than one loan that was risk rated “3” and not impaired as of December 31, 2024, as the estimated fair value of the underlying collateral exceeded our basis in the loan.

(8) Includes loans in which we have previously originated a whole loan and sold a senior mortgage interest to a third-party, resulting in these subordinate interests in mortgages, and mezzanine loans.

(9) As of December 31, 2024, we had a total loans receivable CECL reserve of $ 733.9 million, of which $ 580.7 million is specifically related to 13 of our loans receivable with an aggregate amortized cost basis of $ 1.8 billion as of December 31, 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.

Refer to Note 3 for additional information on our CECL reserves.

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Loan repayments, sales, and cost-recovery proceeds ( 4,751,286 ) ( 2,924,401 ) ( 3,168,155 )

Principal charge-offs — — ( 14,427 )

( 384,603 ) — —

Transfer to real estate owned

( 590,937 ) — —

Transfer to other assets, net

( 70,248 ) — —

Unrealized gain (loss) on foreign currency translation ( 347,728 ) 286,102 ( 632,902 )

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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 9A. Controls and Procedures