What changed in this filing

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Item 1. Financial Statements

2025-04-30 compared with 2024-10-23 · 1697 added, 1119 removed, 586 unchanged (83% of the section changed)

3 unchanged sentences

(in thousands, except share data)

September 30, 2024 December 31, 2023

March 31, 2025

December 31, 2024

Cash and cash equivalents

3 unchanged sentences

Real estate owned, net

Other assets 390,907 476,088

Total Assets $ 21,443,194 $ 24,036,178

Investments in unconsolidated entities

Liabilities and Equity

8 unchanged sentences

Total Liabilities

Commitments and contingencies — —

Class A common stock, $ 0.01 par value, 400,000,000 shares authorized, 172,987,597 and 173,209,933 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

Commitments and contingencies ( Note 22 )

Class A common stock, $ 0.01 par value, 400,000,000 shares authorized,

171,582,452 and 172,792,094 shares issued and outstanding as of March 31, 2025

and December 31, 2024 , respectively

Additional paid-in capital

1 unchanged sentence

Accumulated deficit

( 1,814,935 )

( 1,733,741 )

Total Blackstone Mortgage Trust, Inc.

1 unchanged sentence

Non-controlling interests

Total Equity 3,860,397 4,387,504

Total Liabilities and Equity

The consolidated balance sheets as of September 30, 2024 and December 31, 2023 include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of each respective VIE, and liabilities of consolidated VIEs for which creditors do not have recourse to Blackstone Mortgage Trust, Inc.

As of September 30, 2024 and December 31, 2023, assets of the consolidated VIEs totaled $ 2.7 billion and $ 3.0 billion, respectively, and liabilities of the consolidated VIEs totaled $ 2.3 billion and $ 2.5 billion, respectively.

The consolidated balance sheets as of March 31, 2025 and December 31, 2024 include assets of consolidated variable

interest entities, or VIEs, that can only be used to settle obligations of each respective VIE, and liabilities of consolidated

VIEs for which creditors do not have recourse to Blackstone Mortgage Trust, Inc.

As of March 31, 2025 and December 31,

2024 , assets of the consolidated VIEs totaled $ 3.4 billion and $ 2.4 billion , respectively, and liabilities of the consolidated

VIEs totaled $ 2.6 billion and $ 2.0 billion , respectively.

Refer to Note 20 for additional discussion of the VIEs.

4 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Income from loans and other investments

5 unchanged sentences

Total net revenues

Other expenses

Management and incentive fees

1 unchanged sentence

Expenses from real estate owned

Total other expenses 34,712 40,883 100,716 130,635

Total expenses

Increase in current expected credit loss reserve

(Loss) income before income taxes ( 55,231 ) 32,128 ( 236,384 ) 256,276

Loss from unconsolidated entities

Income (loss) before income taxes

Income tax provision

Net (loss) income ( 55,844 ) 30,560 ( 239,216 ) 251,613

Net income attributable to non-controlling interests

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

Net loss attributable to Blackstone Mortgage Trust, Inc.

$ ( 123,838 )

Net (loss) income per share of common stock

Basic $ ( 0.32 ) $ 0.17 $ ( 1.39 ) $ 1.44

Diluted $ ( 0.32 ) $ 0.17 $ ( 1.39 ) $ 1.44

Weighted-average shares of common stock outstanding

Basic 173,637,101 172,648,118 173,881,116 172,620,799

Diluted 173,637,101 172,648,118 173,881,116 180,891,859

Net loss per share of common stock, basic and diluted

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

See accompanying notes to consolidated financial statements.

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

$ ( 123,170 )

Net (loss) income $ ( 55,844 ) $ 30,560 $ ( 239,216 ) $ 251,613

Other comprehensive income (loss)

Other comprehensive income

Unrealized gain (loss) on foreign currency translation

Realized and unrealized (loss) gain on derivative financial instruments

Other comprehensive income (loss) 763 ( 134 ) 1,637 584

Comprehensive (loss) income ( 55,081 ) 30,426 ( 237,579 ) 252,197

Unrealized loss on derivative financial instruments from unconsolidated

Other comprehensive income

Comprehensive loss

Comprehensive income attributable to non-controlling interests

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

Comprehensive loss attributable to Blackstone Mortgage Trust, Inc.

$ ( 123,422 )

4 unchanged sentences

Blackstone Mortgage Trust, Inc.

Stock Additional Paid-

Accumulated Other

Comprehensive Income (Loss) Accumulated

Comprehensive

Income (Loss)

Stockholders’

Non-Controlling

Balance at December 31, 2023

$ ( 1,150,934 )

Restricted class A common stock earned 4 7,907 — — 7,911 — 7,911

Restricted class A common stock

Dividends reinvested

2 unchanged sentences

Other comprehensive income

Dividends declared on common stock and deferred stock units, $ 0.62 per share

— — — ( 107,901 ) ( 107,901 ) — ( 107,901 )

Distributions to non-controlling interests — — — — — ( 627 ) ( 627 )

Dividends declared on common

stock and deferred stock units,

$ 0.62 per share

Distributions to non-controlling

Balance at March 31, 2024

$ ( 1,382,673 )

Restricted class A common stock earned — 7,761 — — 7,761 — 7,761

Dividends reinvested — 261 — — 261 — 261

Deferred directors’ compensation — 201 — — 201 — 201

Net (loss) income — — — ( 61,057 ) ( 61,057 ) 855 ( 60,202 )

Other comprehensive income — — 458 — 458 — 458

Dividends declared on common stock and deferred stock units, $ 0.62 per share

— — — ( 107,873 ) ( 107,873 ) — ( 107,873 )

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

Distributions to non-controlling interests — — — — — ( 1,840 ) ( 1,840 )

Balance at June 30, 2024

Balance at December 31, 2024

$ ( 1,733,741 )

Repurchases of class A common stock ( 6 ) ( 10,992 ) — — ( 10,998 ) — ( 10,998 )

Restricted class A common stock earned — 7,728 — — 7,728 — 7,728

Shares of class A common stock

Repurchases of class A common

Restricted class A common stock

Dividends reinvested

2 unchanged sentences

Other comprehensive income

Dividends declared on common stock and deferred stock units, $ 0.47 per share

— — — ( 81,547 ) ( 81,547 ) — ( 81,547 )

Distributions to non-controlling interests — — — — — ( 4,829 ) ( 4,829 )

Balance at September 30, 2024

$ 1,730 $ 5,521,305 $ 11,091 $ ( 1,689,534 ) $ 3,844,592 $ 15,805 $ 3,860,397

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Changes in Equity (Unaudited)

(in thousands)

Blackstone Mortgage Trust, Inc.

Stock Additional Paid-

Accumulated Other

Comprehensive Income (Loss) Accumulated

Stockholders’

Non-Controlling

Balance at December 31, 2022

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

Restricted class A common stock earned 6 7,486 — — 7,492 — 7,492

Dividends reinvested — 287 — — 287 — 287

Deferred directors’ compensation — 163 — — 163 — 163

Net income — — — 117,757 117,757 799 118,556

Other comprehensive loss — — ( 2,194 ) — ( 2,194 ) — ( 2,194 )

Dividends declared on common stock and deferred stock units, $ 0.62 per share

— — — ( 107,072 ) ( 107,072 ) — ( 107,072 )

Distributions to non-controlling interests — — — — — ( 733 ) ( 733 )

Dividends declared on common

stock and deferred stock units,

$ 0.47 per share

Distributions to non-controlling

Balance at March 31, 2025

$ ( 1,814,935 )

Restricted class A common stock earned — 7,492 — — 7,492 — 7,492

Dividends reinvested — 235 — — 235 — 235

Deferred directors’ compensation — 173 — — 173 — 173

Net income — — — 101,651 101,651 846 102,497

Other comprehensive income — — 2,912 — 2,912 — 2,912

Dividends declared on common stock and deferred stock units, $ 0.62 per share

— — — ( 107,028 ) ( 107,028 ) — ( 107,028 )

Distributions to non-controlling interests — — — — — ( 791 ) ( 791 )

Balance at June 30, 2023

$ 1,723 $ 5,491,640 $ 10,740 $ ( 963,441 ) $ 4,540,662 $ 25,527 $ 4,566,189

Restricted class A common stock earned — 7,434 — — 7,434 — 7,434

Dividends reinvested — 245 — — 245 — 245

Deferred directors’ compensation — 172 — — 172 — 172

Net income — — — 29,524 29,524 1,036 30,560

Other comprehensive loss — — ( 134 ) — ( 134 ) — ( 134 )

Dividends declared on common stock and deferred stock units, $ 0.62 per share

— — — ( 107,033 ) ( 107,033 ) — ( 107,033 )

Distributions to non-controlling interests — — — — — ( 3,912 ) ( 3,912 )

Balance at September 30, 2023

$ 1,723 $ 5,499,491 $ 10,606 $ ( 1,040,950 ) $ 4,470,870 $ 22,651 $ 4,493,521

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows from operating activities

Net (loss) income $ ( 239,216 ) $ 251,613

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

$ ( 123,170 )

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

Non-cash compensation expense

Amortization of deferred fees on loans

Amortization of deferred financing costs and premiums/discounts on debt obligations 32,185 42,620

Payment-in-kind interest, net of interest received ( 9,612 ) ( 1,372 )

Amortization of deferred financing costs and premiums/discounts on debt

Payment-in-kind interest

Increase in current expected credit loss reserve

Straight-line rental income

Gain on extinguishment of debt

Depreciation and amortization of real estate owned

Unrealized (gain) loss on derivative financial instruments, net ( 6,346 ) 3,195

Loss from unconsolidated entities

Unrealized loss on derivative financial instruments, net

Realized gain on derivative financial instruments, net

Changes in assets and liabilities, net

Other assets 52,699 ( 931 )

Other liabilities

2 unchanged sentences

Principal fundings of loans receivable

Principal collections, sales proceeds, and cost-recovery proceeds from loans receivable 3,135,968 2,323,258

( 1,677,727 )

Principal collections, sales proceeds, and cost-recovery proceeds from loans

Origination and other fees received on loans receivable

3 unchanged sentences

Return of collateral deposited under derivative agreements

Investment in unconsolidated entities

Capital expenditures on real estate owned

Net cash provided by investing activities

3 unchanged sentences

(in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows from financing activities

1 unchanged sentence

Repayments under secured debt

Proceeds from issuance of securitized debt obligations

Repayments of securitized debt obligations

( 259,081 ) ( 161,030 )

Borrowings under asset-specific debt

Repayments under asset-specific debt

Proceeds from sale of loan participations — 50,692

Repayments of loan participations ( 235,960 ) —

Repayments and repurchases of term loans

Repurchases of senior secured notes

( 27,222 ) ( 28,525 )

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

Payment of deferred financing costs

Contributions from non-controlling interests 1,245 —

Distributions to non-controlling interests

2 unchanged sentences

Net cash used in financing activities

Net (decrease) increase in cash and cash equivalents ( 26,539 ) 128,682

Cash and cash equivalents at beginning of period 350,014 291,340

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of year

Effects of currency translation on cash and cash equivalents

Cash and cash equivalents at end of period $ 322,104 $ 421,495

Cash and cash equivalents at end of year

Supplemental disclosure of cash flows information

Payments of interest

$ ( 245,428 )

$ ( 343,609 )

Payments of income taxes

1 unchanged sentence

Dividends declared, not paid

$ ( 107,678 )

Loan principal payments held by servicer, net

1 unchanged sentence

Assumption of other assets and liabilities related to real estate owned

Accrued capital expenditures on real estate owned $ 100 $ —

See accompanying notes to consolidated financial statements.

1 unchanged sentence

Notes to Consolidated Financial Statements (Unaudited)

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 collateralized loan obligations, or CLOs, or single-asset securitizations, and corporate financing, depending on our view of the most prudent financing option available for each of our investments.

We are not in the business of buying or trading securities, and the only securities we own are the retained interests from our securitization financing transactions, which we have not financed.

We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” Our principal executive offices are located at 345 Park Avenue, 24th Floor, New York, New York 10154.

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, 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

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.

externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a

real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” Our

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

We conduct our operations as a REIT for U.S.

1 unchanged sentence

We generally will not be subject to U.S.

federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT.

We also operate our business in a manner that permits us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended.

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

income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders

and maintain our qualification as a REIT.

We also operate our business in a manner that permits us to maintain an

exclusion from registration under the Investment Company Act of 1940, as amended.

We are organized as a holding

company and conduct our business primarily through our various subsidiaries.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.

The consolidated financial statements, including the notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements.

We believe we have made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are presented fairly and that estimates made in preparing our consolidated financial statements are reasonable and prudent.

The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year.

The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission, or the SEC.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting

principles generally accepted in the United States of America, or GAAP, for interim financial information and the

instructions to Form 10-Q and Rule 10-01 of Regulation S-X.

The consolidated financial statements, including the notes

thereto, are unaudited and exclude some of the disclosures required in audited financial statements.

We believe we have

made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are

presented fairly and that estimates made in preparing our consolidated financial statements are reasonable and prudent.

operating results presented for interim periods are not necessarily indicative of the results that may be expected for any

other interim period or for the entire year.

The accompanying unaudited consolidated interim financial statements should

be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for

the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission, or the SEC.

Basis of Presentation

The accompanying consolidated financial statements include, on a consolidated basis, our accounts, the accounts of our wholly-owned subsidiaries, majority-owned subsidiaries, and variable interest entities, or VIEs, of which we are the primary beneficiary.

The accompanying consolidated financial statements include, on a consolidated basis, our accounts, the accounts of our

wholly-owned subsidiaries, majority-owned subsidiaries, and variable interest entities, or VIEs, of which we are the

primary beneficiary.

All intercompany balances and transactions have been eliminated in consolidation.

Certain reclassifications have been made in the presentation of the prior period statement of cash flows related to payment-in-kind interest and principal fundings of loans receivable, in new financings by spread in Note 6, and to the weighted-average maximum maturity of loans receivable in Note 3 to conform to the current period presentation.

Principles of Consolidation

We consolidate all entities that we control through either majority ownership or voting rights.

In addition, we consolidate all VIEs of which we are considered the primary beneficiary.

VIEs are defined as entities in which equity investors (i) do not have an interest with the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.

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

In addition, we consolidate

all VIEs of which we are considered the primary beneficiary.

VIEs are defined as entities in which equity investors (i) do

not have an interest with the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk

for the entity to finance its activities without additional subordinated financial support from other parties.

The entity that

consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities

that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the

obligation to absorb losses of the VIE that could be significant to the VIE.

Entities that do not qualify as VIEs are generally

considered voting interest entities, or VOEs, and are evaluated for consolidation under the voting interest model.

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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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 curren t

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.

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

to originate, hold, and finance multifamily bridge loans.

Pursuant to the terms of the agreements governing the joint venture, Walker & Dunlop contributed 15 % of the venture’s equity capital and we contributed 85 %.

We consolidate the Multifamily Joint Venture as we have a controlling financial interest.

The non-controlling interests included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are owned by Walker & Dunlop.

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

to originate, hold,

and finance multifamily bridge loans.

Pursuant to the terms of the agreements governing the joint venture, Walker &

Dunlop contributed 15 % of the venture’s equity capital and we contributed 85 % .

We consolidate the Multifamily Joint

Venture as we have a controlling financial interest.

The non-controlling interests included on our consolidated balance

sheets represent the equity interests in our Multifamily Joint Venture that are owned by Walker & Dunlop.

A portion of our

Multifamily Joint Venture’s consolidated equity and results of operations are allocated to these non-controlling interests

based on Walker & Dunlop’s pro rata ownership of our Multifamily Joint Venture.

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

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and

assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of

the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting

Actual results may ultimately differ materially from those estimates.

Revenue Recognition

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.

Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in our opinion, recovery of income and principal becomes doubtful.

Interest received is then recorded as income or as a reduction in the amortized cost basis, based on the specific facts and circumstances, until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed.

In addition, for loans we originate, the related origination expenses are deferred and recognized as a reduction to interest income, however expenses related to loans we acquire are included in general and administrative expenses as incurred.

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.

Income accrual is generally

suspended for loans at the earlier of the date at which payments become 90 days past due or when, in our opinion, recovery

of income and principal becomes doubtful .

Interest received is then recorded as income or as a reduction in the amortized

cost basis, based on the specific facts and circumstances, until accrual is resumed when the loan becomes contractually

current and performance is demonstrated to be resumed.

In addition, for loans we originate, the related origination expenses

are deferred and recognized as a reduction to interest income, however expenses related to loans we acquire are included in

general and administrative expenses as incurred.

Cash and Cash Equivalents

Cash and cash equivalents represent cash held in banks and liquid investments with original maturities of three months or less.

Cash and cash equivalents represent cash held in banks and liquid investments with original maturities of three months or

We may have bank balances in excess of federally insured amounts;

however, we deposit our cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure.

We have not experienced, and do not expect, any losses on our cash or cash equivalents.

As of both September 30, 2024 and December 31, 2023, we had no restricted cash on our consolidated balance sheets.

Through our subsidiaries, we have oversight of certain servicing accounts held with third-party servicers, or Servicing Accounts, which relate to borrower escrows and other cash balances aggregating $ 611.9 million and $ 640.6 million as of September 30, 2024 and December 31, 2023, respectively.

This cash is maintained in segregated bank accounts, and these amounts are not included in the assets and liabilities presented in our consolidated balance sheets.

Cash in these Servicing Accounts will be transferred by the respective third-party servicer to the borrower or us under the terms of the applicable loan agreement upon occurrence of certain future events.

We do not generate any revenue or incur any expenses as a result of these Servicing Accounts.

however, we deposit our cash and cash

equivalents with high credit-quality institutions to minimize credit risk exposure.

We have not experienced, and do not

expect, any losses on our cash or cash equivalents.

As of both March 31, 2025 and December 31, 2024 , we had no

restricted cash on our consolidated balance sheets .

Loans Receivable

We originate and purchase commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost.

Current Expected Credit Losses Reserve

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

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

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

In addition, other than a few narrow exceptions, ASC 326 requires that all financial instruments subject to the CECL model have some amount of

We originate and purchase commercial real estate debt and related instruments generally to be held as long-term

investments at amortized cost.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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.

The WARM method requires us to reference historic loan loss data across a comparable data set and apply such loss rate to each of our loans over their expected remaining term, taking into consideration expected economic conditions over the relevant timeframe.

We apply the WARM method for the majority of our loan portfolio, which consists of loans that share similar risk characteristics.

In certain instances, for loans with unique risk characteristics, we may instead use a probability-weighted model that considers the likelihood of default and expected loss given default for each such individual loan.

Application of the WARM method to estimate CECL reserves requires judgment, including (i) the appropriate historical loan loss reference data, (ii) the expected timing and amount of future loan fundings and repayments, and (iii) the current credit quality of our portfolio and our expectations of performance and market conditions over the relevant time period.

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

This database includes commercial mortgage-backed securities, or CMBS, issued since January 1, 1999 through August 31, 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.

We believe this CMBS data, which includes month-over-month loan and property performance, is the most relevant, available, and comparable dataset to our portfolio.

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 and notes receivable included in our consolidated balance

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 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.

The WARM method requires us to reference historic loan loss data across a comparable data set and apply such loss rate to

each of our loans over their expected remaining term, taking into consideration expected economic conditions over the

relevant timeframe.

We apply the WARM method for the majority of our loan portfolio, which consists of loans that share

similar risk characteristics.

In certain instances, for loans with unique risk characteristics, we may instead use a probability-

weighted model that considers the likelihood of default and expected loss given default for each such individual loan.

Application of the WARM method to estimate CECL reserves requires judgment, including (i) the appropriate historical

loan loss reference data, (ii) the expected timing and amount of future loan fundings and repayments, and (iii) the current

credit quality of our portfolio and our expectations of performance and market conditions over the relevant time period.

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

since January 1, 1999 through February 28, 2025 .

Within this database, we focused our historical loss reference

calculations on the most relevant subset of available CMBS data, which we determined based on loan metrics that are most

comparable to our loan portfolio including asset type, geography, and origination loan-to-value, or LTV.

We believe this

CMBS data, which includes month-over-month loan and property performance, is the most relevant, available, and

comparable dataset to our portfolio.

Our loans typically include commitments to fund incremental proceeds to our borrowers over the life of the loan.

These future funding commitments are also subject to the CECL model.

The CECL reserve related to future loan fundings is recorded as a component of other liabilities on our consolidated balance sheets.

This CECL reserve is estimated using the same process outlined above for our outstanding loan balances, and changes in this component of the CECL reserve will similarly impact our consolidated net income.

For both the funded and unfunded portions of our loans, we consider our internal risk rating of each loan as the primary credit quality indicator underlying our assessment.

The CECL reserves are measured on a collective basis wherever similar risk characteristics exist within a pool of similar assets.

future funding commitments are also subject to the CECL model.

The CECL reserve related to future loan fundings is

recorded as a component of other liabilities on our consolidated balance sheets.

This CECL reserve is estimated using the

same process outlined above for our outstanding loan balances, and changes in this component of the CECL reserve will

similarly impact our consolidated net income.

For both the funded and unfunded portions of our loans, we consider our

internal risk rating of each loan as the primary credit quality indicator underlying our assessment.

The CECL reserves are measured on a collective basis wherever similar risk characteristics exist within a pool of similar

We have identified the following pools and measure the reserve for credit losses using the following methods:

WARM method that incorporates a subset of historical loss data, expected weighted-average remaining maturity of our loan pool, and an economic view.

WARM method that incorporates a subset of historical loss data, expected weighted-average

remaining maturity of our loan pool, and an economic view.

WARM method that incorporates a subset of historical loss data, expected weighted-average

remaining maturity of our loan pool, and an economic view.

• Unique Loans :

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• Impaired Loans :

impairment is indicated when it is deemed probable that we will not be able to collect all amounts due to us pursuant to the contractual terms of the loan.

Determining that a loan is impaired requires significant judgment from management and is based on several factors including (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan.

If a loan is determined to be impaired, we record the impairment as a component of our CECL reserves by applying the practical expedient for collateral dependent loans.

The CECL reserves are assessed on an individual basis for these loans by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan.

These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed relevant by us.

Actual losses, if any, could ultimately differ materially from these estimates.

We only expect to charge-off the impairment losses in our consolidated financial statements prepared in accordance with GAAP if and when such amounts are deemed non-recoverable.

impairment is indicated when it is deemed probable that we will not be able to collect all

amounts due to us pursuant to the contractual terms of the loan.

Determining that a loan is impaired requires

significant judgment from management and is based on several factors including (i) the underlying collateral

performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact

the borrower’s ability to pay the contractual amounts due under the terms of the loan.

If a loan is determined to be

impaired, we record the impairment as a component of our CECL reserves by applying the practical expedient for

collateral dependent loans.

The CECL reserves are assessed on an individual basis for these loans by comparing

the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan.

These valuations require significant judgments, which include assumptions regarding capitalization rates, discount

rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan

sponsorship, actions of other lenders, and other factors deemed relevant by us.

Actual losses, if any, could

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

ultimately differ materially from these estimates.

We only expect to charge-off the impairment losses in our

consolidated financial statements prepared in accordance with GAAP if and when such amounts are deemed non-

This is generally at the time a loan is repaid or foreclosed.

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

However, non-recoverability may also be

concluded if, in our determination, it is nearly certain that all amounts due will not be collected.

Contractual Term and Unfunded Loan Commitments

Expected credit losses are estimated over the contractual term of each loan, adjusted for expected repayments.

As part of our quarterly review of our loan portfolio, we assess the expected repayment date of each loan, which is used to determine the contractual term for purposes of computing our CECL reserves.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

Additionally, the expected credit losses over the contractual period of our loans are subject to the obligation to extend credit through our unfunded loan commitments.

The CECL reserve for unfunded loan commitments is adjusted quarterly, as we consider the expected timing of future funding obligations over the estimated life of the loan.

The considerations in estimating our CECL reserve for unfunded loan commitments are similar to those used for the related outstanding loans receivable.

our quarterly review of our loan portfolio, we assess the expected repayment date of each loan, which is used to determine

the contractual term for purposes of computing our CECL reserves.

Additionally, the expected credit losses over the contractual period of our loans are subject to the obligation to extend

credit through our unfunded loan commitments.

The CECL reserve for unfunded loan commitments is adjusted quarterly,

as we consider the expected timing of future funding obligations over the estimated life of the loan.

The considerations in

estimating our CECL reserve for unfunded loan commitments are similar to those used for the related outstanding loans

Credit Quality Indicator

Our risk rating is our primary credit quality indicator in assessing our current expected credit loss reserve.

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

Based on a 5-point 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:

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

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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5 - Impaired/Loss Likely:

A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss.

A loan that has a very high risk of realizing a principal loss or has otherwise incurred a

principal loss.

Estimation of Economic Conditions

In addition to the WARM method computations and probability-weighted models described above, our CECL reserves are also adjusted to reflect our estimation of the current and future economic conditions that impact the performance of the commercial real estate assets securing our loans.

These estimations include unemployment rates, interest rates, expectations of inflation and/or recession, and other macroeconomic factors impacting the likelihood and magnitude of potential credit losses for our loans during their anticipated term.

In addition to the CMBS data we have licensed from Trepp LLC, we have also licensed certain macroeconomic financial forecasts to inform our view of the potential future impact that broader economic conditions may have on our loan portfolio’s performance.

We generally also incorporate information from other sources, including information and opinions available to our Manager, to further inform these estimations.

This process requires significant judgments about future events that, while based on the information available to us as of the balance sheet date, are ultimately indeterminate and the actual economic condition impacting our portfolio could vary significantly from the estimates we made as of September 30, 2024.

In addition to the WARM method computations and probability-weighted models described above, our CECL reserves are

also adjusted to reflect our estimation of the current and future economic conditions that impact the performance of the

commercial real estate assets securing our loans.

These estimations include unemployment rates, interest rates, expectations

of inflation and/or recession, and other macroeconomic factors impacting the likelihood and magnitude of potential credit

losses for our loans during their anticipated term.

In addition to the CMBS data we have licensed from Trepp LLC, we

have also licensed certain macroeconomic financial forecasts to inform our view of the potential future impact that broader

economic conditions may have on our loan portfolio’s performance.

We generally also incorporate information from other

sources, including information and opinions available to our Manager, to further inform these estimations.

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 March 31, 2025 .

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

foreclosure transaction, or a loan modification in which we receive an equity interest in and/or control over decision-

making at the property, resulting in us consolidating the real estate assets as VIEs.

Th ese 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

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

intangible assets and assumed liabilities, as applicable, and allocate the fair value to the acquired assets and assumed

We assess and consider fair value based on estimated cash flow projections that utilize discount and/or

capitalization rates that we deem appropriate, as well as other available market information.

Estimates of future cash flows

are based on a number of factors including the historical operating results, known and anticipated trends, and market and

economic conditions.

We capitalize acquisition-related costs associated with asset acquisitions.

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

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

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.

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 .

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.

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 March 31, 2025 , we had eight 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.

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 Obligation

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.

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.

both March 31, 2025 and December 31, 2024 , our maximum loss-sharing obligation associated with the loans referred by

us to MTRCC under the Fannie Mae program was $ 3.5 million , and we have recorded a related liability of $ 20,000 .

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

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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 September 30, 2024, we had three REO assets which were all classified as held for investment.

Derivative Financial Instruments

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

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

For all derivatives other than those designated as non-designated hedges, we formally document our hedge relationships and designation at the contract’s inception.

This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction.

On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items.

If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in net income prospectively.

Our net investment hedges are assessed using a method based on changes in spot exchange rates.

Gains and losses, representing hedge components excluded from the assessment of effectiveness, are recognized in interest income on our consolidated statements of operations over the contractual term of our net investment hedges on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election.

All other changes in the fair value of our derivative instruments that qualify as hedges are reported as a component of accumulated other comprehensive income (loss) on our consolidated financial statements.

Deferred gains and losses are reclassified out of accumulated other comprehensive income (loss) and into net income in the same period or periods during which the hedged transaction affects earnings, and are presented in the same line item as the earnings effect of the hedged item.

For cash flow hedges, this is typically when the periodic swap settlements are made, while for net investment hedges, this occurs when the hedged item is sold or substantially liquidated.

To the extent a derivative does not qualify for hedge accounting and is deemed a non-designated hedge, the changes in its fair value are included in net income concurrently.

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

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

at fair value.

On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign

operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received

or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair

value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or non-designated hedge.

derivatives other than those designated as non-designated hedges, we formally document our hedge relationships and

designation at the contract’s inception.

This documentation includes the identification of the hedging instruments and the

hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the

effectiveness of its hedged transaction.

On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected

to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items.

If it is determined

that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the

changes in fair value of the instrument are included in net income prospectively.

Our net investment hedges are assessed

using a method based on changes in spot exchange rates.

Gains and losses, representing hedge components excluded from

the assessment of effectiveness, are recognized in interest income on our consolidated statements of operations over the

contractual term of our net investment hedges on a systematic and rational basis, as documented at hedge inception in

accordance with our accounting policy election.

All other changes in the fair value of our derivative instruments that

qualify as hedges are reported as a component of accumulated other comprehensive income (loss) on our consolidated

financial statements.

Deferred gains and losses are reclassified out of accumulated other comprehensive income (loss) and

into net income in the same period or periods during which the hedged transaction affects earnings, and are presented in the

same line item as the earnings effect of the hedged item.

For cash flow hedges, this is typically when the periodic swap

settlements are made, while for net investment hedges, this occurs when the hedged item is sold or substantially liquidated.

To the extent a derivative does not qualify for hedge accounting and is deemed a non-designated hedge, the changes in its

fair value are included in net income concurrently.

Proceeds or payments from periodic settlements of derivative instruments are classified on our consolidated statement of

cash flows in the same section as the underlying hedged item.

Secured Debt and Asset-Specific Debt

We record investments financed with secured debt or asset-specific debt as separate assets and the related borrowings under any secured debt or asset-specific debt are recorded as separate liabilities on our consolidated balance sheets.

Interest income earned on the investments and interest expense incurred on the secured debt or asset-specific debt are reported separately on our consolidated statements of operations.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

We record investments financed with secured debt or asset-specific debt as separate assets and the related borrowings

under any secured debt or asset-specific debt are recorded as separate liabilities on our consolidated balance sheets.

income earned on the investments and interest expense incurred on the secured debt or asset-specific debt are reported

separately on our consolidated statements of operations.

Loan Participations Sold

In certain instances, we have executed a syndication of a non-recourse loan interest to a third-party.

Depending on the particular structure of the syndication, the loan interest may remain on our GAAP balance sheet or, in other cases, the sale will be recognized and the loan interest will no longer be included in our consolidated financial statements.

When these sales are not recognized under GAAP we reflect the transaction by recording a loan participation sold liability on our consolidated balance sheet, however this gross presentation does not impact stockholders’ equity or net income.

When the sales are recognized, our balance sheet only includes our remaining loan interest, and excludes the interest in the loan that we sold.

Depending on the

particular structure of the syndication, the loan interest may remain on our GAAP balance sheet or, in other cases, the sale

will be recognized and the loan interest will no longer be included in our consolidated financial statements.

sales are not recognized under GAAP we reflect the transaction by recording a loan participation sold liability on our

consolidated balance sheet, however this gross presentation does not impact stockholders’ equity or net income.

sales are recognized, our balance sheet only includes our remaining loan interest, and excludes the interest in the loan that

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

We record our term loans as liabilities on our consolidated balance sheets.

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

Where applicable, any issue discount or

transaction expenses are deferred and amortized through the maturity date of the term loans as additional non-cash interest

Senior Secured Notes

We record our senior secured notes as liabilities on our consolidated balance sheets.

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

Where applicable, any issue discount

or transaction expenses are deferred and amortized through the maturity date of the senior secured notes as additional non-

cash interest expense.

Convertible Notes

Convertible note proceeds, unless issued with a substantial premium or an embedded conversion feature, are classified as debt.

Additionally, shares issuable under our convertible notes are included in diluted earnings per share in our consolidated financial statements, if the effect is dilutive, using the if-converted method, regardless of settlement intent.

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

Convertible note proceeds, unless issued with a substantial premium or an embedded conversion feature, are classified as

Additionally, shares issuable under our convertible notes are included in diluted earnings per share in our

consolidated financial statements, if the effect is dilutive, using the if-converted method, regardless of settlement intent.

Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the

convertible notes as additional non-cash interest expense.

Deferred Financing Costs

The deferred financing costs that are included as a reduction in the net book value of the related liability on our consolidated balance sheets include issuance and other costs related to our debt obligations.

These costs are amortized as interest expense using the effective interest method over the life of the related obligations.

The deferred financing costs that are included as a reduction in the net book value of the related liability on our

consolidated balance sheets include issuance and other costs related to our debt obligations.

These costs are amortized as

interest expense using the effective interest method over the life of the related obligations.

Underwriting Commissions and Offering Costs

Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a reduction of additional paid-in capital.

Costs incurred that are not directly associated with the completion of a common stock offering are expensed when incurred.

Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a

reduction of additional paid-in capital.

Costs incurred that are not directly associated with the completion of a common

stock offering are expensed when incurred.

Fair Value of Financial Instruments

The “Fair Value Measurements and Disclosures” Topic o f the FASB, or ASC 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP.

Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date.

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

Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants.

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

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows:

The “Fair Value Measurements and Disclosures” Topic o f the FASB, or ASC 820, defines fair value, establishes a

framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP.

Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an

asset or the transfer of a liability in an orderly transaction between market participants at the measurement date.

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

measuring financial instruments.

Market price observability is affected by a number of factors, including the type of

financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the

existence and transparency of transactions between market participants.

Financial instruments with readily available quoted

prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment

used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs

used in the determination, as follows:

Generally includes only unadjusted quoted prices that are available in active markets for identical

financial instruments as of the reporting date.

Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active

or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other

observable inputs, such as interest rates, yield curves, credit risks, and default rates.

Pricing inputs are unobservable for the financial instruments and include situations where there is little, if

any, market activity for the financial instrument.

These inputs require significant judgment or estimation by

management of third-parties when determining fair value and generally represent anything that does not meet the

criteria of Levels 1 and 2.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date.

Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates.

Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument.

These inputs require significant judgment or estimation by management of third-parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2.

Certain of our other assets are reported at fair value, as of quarter-end, either (i) on a recurring basis or (ii) on a nonrecurring basis, as a result of impairment or other events.

Our assets that are recorded at fair value are discussed further in Note 18.

We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from third-parties.

For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our estimation of the fair value of the underlying collateral, less costs to sell, to the book value of the respective loan.

As of September 30, 2024, we had an aggregate $ 883.6 million asset-specific CECL reserve related to 20 of our loans receivable with an aggregate amortized cost basis of $ 3.2 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 September 30, 2024.

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

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 7.28 % to 11.00 %.

On March 19, 2024, we acquired legal title to an office property located in Mountain View, CA through a deed-in-lieu of foreclosure.

At the time of acquisition, we determined the fair value of the real estate asset to be $ 60.2 million 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.

This REO asset was measured at fair value on a nonrecurring basis using significant unobservable inputs and is classified as a Level 3 asset in the fair value hierarchy.

The significant unobservable inputs used include the exit capitalization rate assumption used to forecast the future sale price of the asset of 7.00 % and a discount rate of 9.50 %.

On July 2, 2024, we acquired legal title to a multifamily property located in San Antonio, TX through a foreclosure transaction.

At the time of acquisition, we determined the fair value of the real estate asset to be $ 33.6 million 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.

This REO asset was measured at fair value on a nonrecurring basis using significant unobservable inputs and is classified as a Level 3 asset in the fair value hierarchy.

The significant unobservable inputs used include the exit capitalization rate assumption used to forecast the future sale price of the asset of 6.00 % and a discount rate of 7.50 %.

On September 16, 2024, we consolidated an office property located in Burlington, MA as a result of a loan modification that provided us an equity interest in the property.

Refer to Note 19 for additional information.

At the time of modification, we determined the fair value of the real estate asset to be $ 64.6 million 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.

This REO asset was measured at fair value on a nonrecurring basis using significant unobservable inputs and is classified as a Level 3 asset in the fair value hierarchy.

The significant unobservable inputs used include the exit capitalization rate assumption used to forecast the future sale price of the asset of 8.00 % and a discount rate of 10.00 %.

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

Certain of our other assets are reported at fair value, as of quarter-end, either (i) on a recurring basis or (ii) on a

nonrecurring basis, as a result of impairment or other events.

Our assets that are recorded at fair value are discussed further

We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on

assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from

third-parties.

For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our

estimation of the fair value of the underlying collateral, less costs to sell, to the book value of the respective loan.

valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing,

creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions

of other lenders, and other factors.

As of March 31, 2025 , we had an aggregate $ 555.4 million asset-specific CECL reserve related to 13 of our loans

receivable with an aggregate amortized cost basis of $ 1.5 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 March 31, 2025 .

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 the collateral underlying the loans

receivable by considering a variety of inputs including property performance, market data, and comparable sales, as

The significant unobservable inputs employed 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 8.00 % , and the unlevered discount

rate assumption, which ranged from 7.00 % to 15.00 % .

In the three months ended March 31, 2025 , we acquired legal title to one REO asset through a deed-in-lieu of foreclosure

At the time of acquisition, we determined the fair value of the 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 asset was measured at fair value on a nonrecurring basis using significant

unobservable inputs and is classified as a Level 3 asset in the fair value hierarchy.

The significant unobservable inputs

employed include (i) the exit capitalization rate assumption of 8.55 % used to forecast the future sale price of the asset, and

(ii) the unlevered discount rate assumption of 10.55 % .

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

These disclosure requirements exclude certain financial instruments and all non-financial instruments.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value:

The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which

it is practicable to estimate that value:

• Cash and cash equivalents:

1 unchanged sentence

• Loans receivable, net:

The fair values of these loans were estimated using a discounted cash flow methodology, taking into consideration various factors including capitalization rates, discount rates, leasing, credit worthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors.

The fair values of these loans were estimated using a discounted cash flow methodology,

taking into consideration various factors including capitalization rates, discount rates, leasing, credit worthiness of

major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other

lenders, and other factors.

• Derivative financial instruments:

The fair value of our foreign currency and interest rate contracts was estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads.

The fair value of our foreign currency and interest rate contracts was estimated

using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs

comprising foreign currency rates and credit spreads.

• Secured debt, net:

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

The fair value of these instruments was estimated based on the rate at which a similar credit

facility would currently be priced.

• Securitized debt obligations, net:

The fair value of these instruments was estimated by utilizing third-party pricing service providers.

In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price.

The fair value of these instruments was estimated by utilizing third-party pricing

service providers.

In determining the value of a particular investment, pricing service providers may use broker-

dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the

reported price.

• Asset-specific debt, net:

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

The fair value of these instruments was estimated based on the rate at which a similar

agreement would currently be priced.

• Loan participations sold, net:

The fair value of these instruments was estimated based on the value of the related loan receivable asset.

The fair value of these instruments was estimated based on the value of the related

loan receivable asset.

• Term loans, net:

The fair value of these instruments was estimated by utilizing third-party pricing service providers.

The fair value of these instruments was estimated by utilizing third-party pricing service

In determining the value of a particular investment, pricing service providers may use broker-dealer

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported

• Senior secured notes, net:

The fair value of these instruments was estimated by utilizing third-party pricing service providers.

The fair value of these instruments was estimated by utilizing third-party pricing service

In determining the value of a particular investment, pricing service providers may use broker-dealer

quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported

• Convertible notes, net:

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

Each series of the convertible notes is actively traded and their fair values were obtained

using quoted market prices.

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

We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries.

If we were to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and penalties.

We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally

do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries.

to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and

Refer to Note 17 for additional information.

Stock-Based Compensation

Our stock-based compensation consists of awards issued to our Manager, certain individuals employed by an affiliate of our Manager, and certain members of our board of directors that vest over the life of the awards, as well as deferred stock units issued to certain members of our board of directors.

Stock-based compensation expense is recognized for these awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A common stock.

Our stock-based compensation consists of awards issued to our Manager, certain individuals employed by an affiliate of

our Manager, and certain members of our board of directors that vest over the life of the awards, as well as deferred stock

units issued to certain members of our board of directors.

Stock-based compensation expense is recognized for these

awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A

common stock.

Refer to Note 18 for additional information.

Earnings per Share

Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on (i) the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by (ii) the weighted-average number of shares of our class A common stock, including restricted class A common stock and deferred stock units outstanding during the period.

Our restricted class A common stock is considered a participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or losses.

Diluted earnings per share, or Diluted EPS, is determined using the if-converted method, and is based on (i) the net earnings, adjusted for interest expense incurred on our convertible notes during the relevant period, net of incentive fees, allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by (ii) the weighted-average number of shares of our class A common stock, including restricted class A common stock, deferred stock units, and shares of class A common stock issuable under our convertible notes.

Refer to Note 14 for additional discussion of earnings per share.

Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on (i) the net

earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units,

divided by (ii) the weighted-average number of shares of our class A common stock, including restricted class A common

stock and deferred stock units outstanding during the period.

Our restricted class A common stock is considered a

participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these

restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or

Diluted earnings per share, or Diluted EPS, is determined using the if-converted method, and is based on (i) the net

earnings, adjusted for interest expense incurred on our convertible notes during the relevant period, net of incentive fees,

allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by (ii)

the weighted-average number of shares of our class A common stock, including restricted class A common stock, deferred

stock units, and shares of class A common stock issuable under our convertible notes.

Refer to Note 15 for additional

discussion of earnings per share.

Foreign Currency

In the normal course of business, we enter into transactions not denominated in United States, or U.S., dollars.

Foreign exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statements of operations.

exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statements of

In addition, we consolidate entities that have a non-U.S.

dollar functional currency.

dollar denominated assets and liabilities are translated to U.S.

dollars at the exchange rate prevailing at the reporting date and income, expenses, gains, and losses are translated at the average exchange rate over the applicable period.

Cumulative translation adjustments arising from the translation of non-U.S.

dollar denominated subsidiaries are recorded in other comprehensive income (loss).

denominated assets and liabilities are translated to U.S.

dollars at the exchange rate prevailing at the reporting date and

income, expenses, gains, and losses are translated at the average exchange rate over the applicable period.

translation adjustments arising from the translation of non-U.S.

dollar denominated subsidiaries are recorded in other

comprehensive income (loss).

Recent Accounting Pronouncements

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

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

ASU 2023-09 requires additional disaggregated disclosures on 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 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):

Improvements to Reportable Segment Disclosures,” or ASU 2023-07.

ASU 2023-07 enhances the disclosures required for reportable segments on an annual and interim basis.

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

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

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.

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,

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

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.

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 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.

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.

LOANS RECEIVABLE, NET

The following table details overall statistics for our loans receivable portfolio ($ in thousands):

September 30, 2024 December 31, 2023

March 31, 2025

December 31, 2024

Number of loans

2 unchanged sentences

Unfunded loan commitments (1)

$ 1,562,589 $ 2,430,664

Weighted-average cash coupon (2)

+ 3.40 % + 3.37 %

Weighted-average all-in yield (2)

+ 3.74 % + 3.71 %

Weighted-average maximum maturity (years) (3)

(1) Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures.

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

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

As of September 30, 2024, all of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR.

As of December 31, 2023, substantially all of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR.

Floating rate exposure as of September 30, 2024 and December 31, 2023 includes an interest rate swap we entered into with a notional amount of $ 229.9 million that effectively converts certain of our fixed rate loan exposure to floating rate exposure.

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

Excludes loans accounted for under the cost-recovery 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.

(1) Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real

estate-related assets, capital improvements of existing assets, or lease-related expenditures.

These commitments will

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

(2) The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark

rates, which include SOFR , SONIA, EURIBOR, and other indices, as applicable to each loan.

As of March 31, 2025

and December 31, 2024 , substantially all of our loans by principal balance earned a floating rate of interest,

primarily indexed to SOFR.

In addition to cash coupon, all-in yield includes the amortization of deferred origination

and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees.

Excludes loans

accounted for under the cost-recovery 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 September 30, 2024, 14 % of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 86 % were open to repayment by the borrower without penalty.

As of December 31, 2023, 14 % of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 86 % were open to repayment by the borrower without penalty.

March 31, 2025 , 17 % of our loans by principal balance were subject to yield maintenance or other prepayment

restrictions and 83 % were open to repayment by the borrower without penalty.

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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

The following table details the index rate floors for our loans receivable portfolio as of September 30, 2024 ($ in thousands):

The following table details the index rate floors for our loans receivable portfolio as of March 31, 2025 ($ in thousands):

Loans Receivable Principal Balance

Index Rate Floors USD Non-USD (1)

Index Rate Floors

0.00% or no floor (2)

$ 5,307,784 $ 5,035,435 $ 10,343,219

0.01% to 1.00% floor

2 unchanged sentences

3.01% or more floor

$ 14,621,307 $ 7,140,377 $ 21,761,684

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

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

(2) Includes all impaired loans.

(4) As of September 30, 2024, the weighted-average index rate floor of our loans receivable principal balance was 0.97 %.

(3) As of March 31, 2025 , the weighted-average index rate floor of our floating-rate loans receivable principal balance

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

6 unchanged sentences

Loan repayments, sales, and cost-recovery proceeds

Charge-offs ( 104,157 ) 13,618 ( 90,539 )

Transfer to real estate owned ( 139,239 ) — ( 139,239 )

Transfer to other assets (2)

( 1,810,678 )

Payment-in-kind interest, net of interest received 9,612 — 9,612

( 1,829,601 )

Transfer to real estate owned

Transfer to other assets, net (2)

Payment-in-kind interest

Unrealized gain (loss) on foreign currency translation

1 unchanged sentence

Amortization of fees and other items

Loans Receivable, as of September 30, 2024

Loans Receivable, as of March 31, 2025

$ ( 168,056 )

CECL reserve ( 1,011,059 )

Loans Receivable, net, as of September 30, 2024

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

(ii) proceeds from a loan repayment that are held in escrow;

and (iii) intangible assets related to loans that were transferred to REO, all of which are included within other assets in our consolidated balance sheets.

Loans Receivable, net, as of March 31, 2025

(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 intangible and other assets recorded in connection with loans that were transferred to REO,

net of liabilities recorded upon acquisition, if any.

See Note 6 for further information.

1 unchanged sentence

Notes to Consolidated Financial Statements (continued) (Unaudited)

The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio ($ in thousands):

September 30, 2024

Property Type Number of Loans Net

Net Loan Exposure Percentage of

Office 47 $ 8,684,237 $ 9,033,796 $ 6,807,782 35 %

Multifamily 62 5,620,111 5,811,899 5,471,558 28

Hospitality 17 3,175,423 3,217,014 3,038,093 16

Industrial 10 2,086,785 2,096,229 2,062,923 11

Retail 5 693,991 721,638 660,935 3

The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio

($ in thousands):

March 31, 2025

Property Type

Number of Loans

Net Book Value

Net Loan Exposure (1)

Net Loan Exposure

Percentage of Portfolio

Life Sciences / Studio

Other 4 940,080 940,840 905,315 5

Total loans receivable

CECL reserve ( 1,011,059 )

Loans receivable, net

Geographic Location Number of Loans Net

Net Loan Exposure Percentage of

Geographic Location

Number of Loans

Net Book Value

Net Loan Exposure (1)

Net Loan Exposure

Percentage of Portfolio

United States

Sunbelt 55 $ 5,236,391 $ 5,359,950 $ 4,815,460 25 %

Northeast 23 5,117,181 5,174,073 3,848,675 20

West 26 2,723,436 3,381,514 2,425,958 13

Midwest 9 945,419 951,628 772,852 4

Northwest 4 412,956 416,373 413,982 2

Subtotal 117 14,435,383 15,283,538 12,276,927 64

International

United Kingdom

Australia 3 1,026,894 1,032,914 1,029,221 5

Ireland 3 1,112,988 1,118,583 1,111,325 7

Spain 3 852,586 854,172 813,041 4

Sweden 1 467,303 469,004 468,624 2

Other Europe 4 519,158 520,223 517,134 2

Other International

Subtotal 32 7,167,134 7,144,877 7,069,982 36

Total loans receivable

CECL reserve ( 1,011,059 )

Loans receivable, net

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

As of September 30, 2024, total loan exposure, includes (i) loans with an outstanding principal balance of $ 21.8 billion that are included in our consolidated financial statements, (ii) $ 770.2 million of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $ 103.5 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 September 30, 2024, which is our total loan exposure net of (i) $ 770.2 million of non-consolidated senior interests, (ii) $ 1.2 billion of asset-specific debt, (iii) $ 99.0 million of cost-recovery proceeds, and (iv) our total loans receivable CECL reserve of $ 1.0 billion.

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

(1) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of March 31, 2025 ,

which is our principal balance net of (i) $ 494.1 million of asset-specific debt, (ii) $ 117.1 million of cost-recovery

proceeds, (iii) our total loans receivable CECL reserve of $ 741.5 million , and (iv) $ 101.7 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 asset-specific debt and loan participations sold are structurally non-

recourse and term-matched to the corresponding collateral loans.

Blackstone Mortgage Trust, Inc.

1 unchanged sentence

December 31, 2024

Property Type Number of

Book Value Total Loan

Net Loan Exposure Percentage of

Office 54 $ 9,253,609 $ 10,072,963 $ 7,956,472 36 %

Multifamily 73 5,876,128 5,997,886 5,756,192 26

Hospitality 23 4,161,525 4,194,588 3,804,091 17

Industrial 12 2,189,808 2,201,497 2,190,914 10

Retail 6 814,241 834,825 785,573 4

Property Type

Number of Loans

Net Book Value

Net Loan Exposure (1)

Net Loan Exposure

Percentage of Portfolio

Life Sciences/Studio

Other 6 1,106,603 1,107,752 1,074,527 5

Total loans receivable

CECL reserve ( 576,936 )

Loans receivable, net

Geographic Location Number of

Book Value Total Loan

Net Loan Exposure Percentage of

Geographic Location

Number of Loans

Net Book Value

Net Loan Exposure (1)

Net Loan Exposure

Percentage of Portfolio

United States

Sunbelt 65 $ 5,658,172 $ 5,786,395 $ 5,402,732 25 %

Northeast 30 5,386,940 5,426,951 4,340,660 20

West 31 3,088,644 4,108,074 2,910,559 13

Midwest 9 944,132 945,222 913,973 4

Northwest 6 382,591 385,978 383,382 2

Subtotal 141 15,460,479 16,652,620 13,951,306 64

International

United Kingdom

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

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

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

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

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

Subtotal 37 8,326,533 8,318,408 8,000,682 36

Other International

Total loans receivable

CECL reserve ( 576,936 )

Loans receivable, net

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

As of December 31, 2023, total loan exposure, includes (i) loans with an outstanding principal balance of $ 23.9 billion that are included in our consolidated financial statements, (ii) $ 1.1 billion of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $ 100.9 million of junior loan interests that we have sold, but that remain included in our consolidated financial statements.

See Note 2 for further discussion of loan participations sold.

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

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

(1) N et 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 principal balance net of (i) $ 1.2 billion of asset-specific debt, (ii) $ 106.7 million of cost-recovery

p roceeds, (iii) our total loans receivable CECL reserve of $ 733.9 million , and (iv) $ 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.

Our asset-specific debt and loan participations sold are structurally non-

recourse and term-matched to the corresponding collateral loans.

Blackstone Mortgage Trust, Inc.

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Loan Risk Ratings

As further described in Note 2, we evaluate our loan portfolio on a quarterly basis.

In conjunction with our quarterly loan portfolio review, we assess the risk factors of each loan, and assign a risk rating based on several factors.

Factors considered in the assessment include, but are not limited to, risk of loss, origination LTV, debt yield, collateral performance, structure, exit plan, and sponsorship.

Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2.

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

September 30, 2024

1 16 $ 2,058,795 $ 2,062,324 $ 1,139,470

2 26 3,938,950 3,947,816 3,944,699

3 67 9,595,696 9,783,847 9,192,975

4 20 2,843,464 3,365,798 2,783,690

5 20 3,165,612 3,268,630 2,286,075

As further described in Note 2 , we evaluate our loan portfoli o on a quarterly basis.

In conjunction with our quarterly loan

portfolio review, we assess the risk factors of each loan, and assign a risk rating based on several factors.

considered in the assessment include, but are not limited to, risk of loss, origination LTV, debt yield, collateral

performance, structure, exit plan, and sponsorship.

Loans are rated “1” (less risk) through “5” (greater risk), which ratings

are defined in Note 2 .

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

March 31, 2025

Number of Loans

Net Book Value

Net Loan Exposure (1)

Total loans receivable

CECL reserve ( 1,011,059 )

Loans receivable, net

December 31, 2024

1 15 $ 763,101 $ 811,217 $ 763,223

2 36 6,143,184 6,618,319 5,095,395

3 99 12,277,518 12,573,282 11,964,620

4 15 2,725,930 3,036,837 2,668,025

5 13 1,877,279 1,931,373 1,460,725

Number of Loans

Net Book Value

Net Loan Exposure (1)

Total loans receivable

CECL reserve ( 576,936 )

Loans receivable, net

(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, 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 3.1 and 3.0 as of September 30, 2024 and December 31, 2023, respectively.

(1) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of March 31, 2025 ,

which is our principal balance net of (i) $ 494.1 million of asset-specific debt, (ii) $ 117.1 million of cost-recovery

proceeds, (iii) our total loans receivable CECL reserve of $ 741.5 million , and (iv) $ 101.7 million of junior loan

interests that we have sold, but that remain included in our consolidated financial statements .

Our 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 as of both March 31, 2025 and December 31, 2024 ,

respectively .

Blackstone Mortgage Trust, Inc.

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Current Expected Credit Loss Reserve

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

The CECL reserves required under GAAP reflect our current estimate of potential credit losses related to the loans included

in our consolidated balance sheets.

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

The following table presents the activity in our loans receivable CECL reserve by investment pool for the three and nine months ended September 30, 2024 and 2023 ($ in thousands):

Loans Impaired

The following table

presents the activity in our loans receivable CECL reserve by investment pool for the three months ended March 31, 2025

and 2024 ($ in thousands):

Loans Receivable, Net

CECL reserves as of December 31, 2024

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

(Decrease) increase in CECL reserves ( 3,807 ) ( 770 ) ( 5,918 ) 245,942 235,447

Increase in CECL reserves

Charge-offs of CECL reserves

CECL reserves as of March 31, 2025

$ 74,528 $ 30,790 $ 43,453 $ 602,599 $ 751,370

(Decrease) increase in CECL reserves ( 11,997 ) ( 2,639 ) 423 169,318 155,105

Charge-offs of CECL reserves — — — ( 12,537 ) ( 12,537 )

CECL reserve as of June 30, 2024

$ 62,531 $ 28,151 $ 43,876 $ 759,380 $ 893,938

CECL reserves as of December 31, 2023

(Decrease) increase in CECL reserves

Charge-offs of CECL reserves

CECL reserve as of September 30, 2024

$ 52,947 $ 26,235 $ 48,300 $ 883,577 $ 1,011,059

CECL reserves as of December 31, 2022

$ 67,880 $ 22,519 $ 45,960 $ 189,778 $ 326,137

Increase (decrease) in CECL reserves 5,314 ( 2,823 ) 483 7,480 10,454

CECL reserves as of March 31, 2024

$ 73,194 $ 19,696 $ 46,443 $ 197,258 $ 336,591

Increase (decrease) in CECL reserves 1,199 9,296 ( 354 ) 17,143 27,284

CECL reserve as of June 30, 2023

$ 74,393 $ 28,992 $ 46,089 $ 214,401 $ 363,875

(Decrease) increase in CECL reserves ( 5,639 ) ( 2,336 ) ( 627 ) 108,150 99,548

CECL reserve as of September 30, 2023

$ 68,754 $ 26,656 $ 45,462 $ 322,551 $ 463,423

(1) Includes one U.S.

dollar-denominated loan that is located in Bermuda.

During the three months ended September 30, 2024, we recorded a net increase of $ 117.1 million in the CECL reserves against our loans receivable portfolio, due to a $ 134.1 million increase in CECL reserves, offset by charge-offs of our CECL reserves of $ 17.0 million, bringing our total loans receivable CECL reserve to $ 1.0 billion as of September 30, 2024.

This increase primarily relates to two loans impaired during the three months ended September 30, 2024, both 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.

As of September 30, 2024, the income accrual was suspended on the two additional loans that were impaired as the recovery of income and principal was doubtful.

During the three months ended September 30, 2024, we recorded $ 4.9 million of interest income on these two loans.

In addition, our general CECL reserves decreased primarily as a result of loan repayments reducing the size of our portfolio during the three months ended September 30, 2024.

The charge-offs primarily related to one previously impaired loan that was resolved during the three months ended September 30, 2024.

The resolution was the result of the consolidation of an office property located in Burlington, MA as a result of a loan modification that provided us an equity interest in the property.

Refer to Note 19 for additional information.

As of September 30, 2024, we had an aggregate $ 883.6 million asset-specific CECL reserve related to 20 of our loans receivable, with an aggregate amortized cost basis of $ 3.2 billion, net of cost-recovery proceeds.

This CECL reserve was recorded based on our estimation of the fair value of each of the loan's underlying collateral as of September 30, 2024.

No income was recorded on our impaired loans subsequent to determining that they were impaired.

During the three months ended September 30, 2024, we received an aggregate $ 24.5 million of cash proceeds from such loans that were applied as a

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

During the three months ended March 31, 2025 , we recorded a net increase of $ 49.4 million in the CECL reserves against

our loans receivable portfolio, primarily due to a $ 32.9 million increase in our general CECL reserves, offset by charge-

offs of our CECL reserves of $ 41.8 million , bringing our total loans receivable CECL reserve to $ 741.5 million as of

March 31, 2025 .

This increase in our general CECL reserves was primarily as a result of a change in the portfolio mix, as

loan repayments were offset by new originations, as well as changes in the historical loss rate .

Additionally, we recorded an

increase in our asset-specific CECL reserves, primarily as a result of one additional loan that was impaired during the three

months ended March 31, 2025 , which was secured by an office asset.

The office sector is generally facing reduced tenant

and capital markets demand in recent years.

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.

The income accrual was suspended on

the one loan that was impaired during the three months ended March 31, 2025 , as the recovery of income and principal was

During the three months ended March 31, 2025 , we recorded $ 2.8 million of interest income on this loan.

increase in the CECL reserves was partially offset by a resolution and a $ 41.8 million charge-off of the CECL reserve on

one previously impaired loan.

The resolution was the result of an acquisition of title through a deed-in-lieu of foreclosure

transaction related to an office property located in Chicago, IL, which is now included on our consolidated balance sheet as

an REO asset.

As of March 31, 2025 , we had an aggregate $ 555.4 million asset-specific CECL reserve related to 13 of our loans

receivable, with an aggregate amortized cost basis of $ 1.5 billion , net of cost-recovery proceeds.

This CECL reserve was

recorded based on our estimation of the fair value of each of the loan's underlying collateral as of March 31, 2025 .

income was recorded on our impaired loans subsequent to determining that they were impaired.

During the three months

ended March 31, 2025 , we received an aggregate $ 18.9 million of cash proceeds from such loans that were applied as a

reduction to the amortized cost basis of each respective loan.

As of September 30, 2024, all borrowers under performing loans were in compliance with the applicable contractual terms, including any required payment of interest.

As of March 31, 2025 , 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 greater than 90 days past due on its

interest payment, and had a risk rating of “3.” This loan was not impaired as of March 31, 2025 as the estimated fair value

of the underlying collateral exceeded our basis in the loan.

As of March 31, 2025, all other borrowers under performing

loans were in compliance with the applicable contractual terms of each respective loan, including any required payment of

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

2 unchanged sentences

Our primary credit quality indicator is our risk ratings, which are further discussed above.

The following tables present the net book value of our loan portfolio as of September 30, 2024 and December 31, 2023, respectively, by year of origination, investment pool, and risk rating ($ in thousands):

The following tables present the

net book value of our loan portfolio as of March 31, 2025 and 2024 , respectively, by year of origination, investment pool,

and risk rating ($ in thousands):

Net Book Value of Loans Receivable by Year of Origination (1)

As of September 30, 2024

2024 2023 2022 2021 2020 Prior Total

1 $ — $ — $ 151,575 $ 352,654 $ 60,364 $ 1,404,644 $ 1,969,237

2 — — 196,997 1,835,751 — 285,520 2,318,268

3 149,237 — 1,608,030 2,326,962 580,073 474,972 5,139,274

4 — — 235,509 903,496 — 761,481 1,900,486

5 — — — — — — —

loans $ 149,237 $ — $ 2,192,111 $ 5,418,863 $ 640,437 $ 2,926,617 $ 11,327,265

1 $ — $ — $ — $ 89,558 $ — $ — $ 89,558

2 — — 537,063 850,624 94,179 138,816 1,620,682

3 — — 681,698 1,167,063 — 1,415,526 3,264,287

4 — — — — — 363,489 363,489

5 — — — — — — —

As of March 31, 2025

Total Non-U.S.

loans $ — $ — $ 1,218,761 $ 2,107,245 $ 94,179 $ 1,917,831 $ 5,338,016

1 $ — $ — $ — $ — $ — $ — $ —

2 — — — — — — —

3 — — 909,171 — — 282,964 1,192,135

4 — — — — — 579,489 579,489

5 — — — — — — —

Total unique loans

Impaired loans

1 $ — $ — $ — $ — $ — $ — $ —

2 — — — — — — —

3 — — — — — — —

4 — — — — — — —

5 — — 492,615 1,146,576 138,840 1,387,581 3,165,612

Total impaired loans

Total loans receivable

1 $ — $ — $ 151,575 $ 442,212 $ 60,364 $ 1,404,644 $ 2,058,795

2 — — 734,060 2,686,375 94,179 424,336 3,938,950

3 149,237 — 3,198,899 3,494,025 580,073 2,173,462 9,595,696

4 — — 235,509 903,496 — 1,704,459 2,843,464

5 — — 492,615 1,146,576 138,840 1,387,581 3,165,612

Total loans receivable

CECL reserve ( 1,011,059 )

Loans receivable, net

Gross charge-offs (2)

— — ( 17,450 ) ( 53,587 ) — ( 19,502 ) $ ( 90,539 )

(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 nine months ended September 30, 2024.

Origination dates are subsequently updated to reflect material loan

modifications.

(2) Represents charge-offs by year of origination during the three months ended March 31, 2025 .

Blackstone Mortgage Trust, Inc.

2 unchanged sentences

As of December 31, 2024

2023 2022 2021 2020 2019 Prior Total

1 $ — $ 172,575 $ 443,739 $ 39,877 $ 52,939 $ 53,971 $ 763,101

2 — 195,755 1,883,162 32,179 200,917 1,438,175 3,750,188

3 — 1,870,610 3,730,842 613,688 380,726 359,257 6,955,123

4 — 317,665 924,070 — 193,168 679,885 2,114,788

5 — — — — — — —

loans $ — $ 2,556,605 $ 6,981,813 $ 685,744 $ 827,750 $ 2,531,288 $ 13,583,200

1 $ — $ — $ — $ — $ — $ — $ —

2 — 1,034,196 1,230,762 93,423 34,615 — 2,392,996

3 — 643,018 1,084,137 — 2,249,931 — 3,977,086

4 — — — — — — —

5 — — — — — — —

Total Non-U.S.

loans $ — $ 1,677,214 $ 2,314,899 $ 93,423 $ 2,284,546 $ — $ 6,370,082

1 $ — $ — $ — $ — $ — $ — $ —

2 — — — — — — —

3 — 894,599 — — 264,457 186,253 1,345,309

4 — — — — — 611,142 611,142

5 — — — — — — —

Total unique loans

Impaired loans

1 $ — $ — $ — $ — $ — $ — $ —

2 — — — — — — —

3 — — — — — — —

4 — — — — — — —

5 — — 508,264 140,000 — 1,229,015 1,877,279

Total impaired loans

Total loans receivable

1 $ — $ 172,575 $ 443,739 $ 39,877 $ 52,939 $ 53,971 $ 763,101

2 — 1,229,951 3,113,924 125,602 235,532 1,438,175 6,143,184

3 — 3,408,227 4,814,979 613,688 2,895,114 545,510 12,277,518

4 — 317,665 924,070 — 193,168 1,291,027 2,725,930

5 — — 508,264 140,000 — 1,229,015 1,877,279

Total loans receivable

CECL reserve ( 576,936 )

Loans receivable, net

Gross charge-offs (2)

$ ( 384,603 )

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

Origination dates are subsequently updated to reflect material loan modifications.

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.

Notes to Consolidated Financial Statements (continued) (Unaudited)

Loan Modifications Pursuant to ASU 2022-02

During the twelve months ended September 30, 2024, we entered into six loan modifications that require disclosure pursuant to ASU 2022-02.

Four of these loans were collateralized by office assets and two were collateralized by hospitality assets.

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

For one of the loans, the modification included an additional 2.00 % exit fee and the interest rate increased by 2.00 %.

The other modification included an additional 3.00 % exit fee and the interest rate increased by 4.00 %.

As of September 30, 2024, the aggregate amortized cost basis of these loans was $ 347.5 million, or 1.6 % of our aggregate loans receivable portfolio, and these loans had no unfunded commitments.

These loans were performing pursuant to their modified contractual terms as of September 30, 2024, had risk ratings of “5” as of September 30, 2024, and have asset-specific CECL reserves.

The other four loan modifications included term extensions combined with other-than-insignificant payment delays.

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 2 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 third loan modification included a term extension of 7 months, and an increase in paid in-kind interest of 5.00 %.

The fourth loan modification included a term extension of 10 months.

As of September 30, 2024, the aggregate amortized cost basis of these loans was $ 457.9 million, or 2.1 % of our aggregate loans receivable portfolio, with an aggregate $ 61.5 million of unfunded commitments.

The loans were performing pursuant to their contractual terms as of September 30, 2024.

As of September 30, 2024, three of these loans had a risk rating of “5” and two loans had a risk rating of “4.”

Loans with a risk rating of “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 September 30, 2024, no income was recorded on our loans subsequent to determining that they were impaired and risk rated “5.”

Loan Modifications Pursuant to ASC 326

During the twelve months ended March 31, 2025 , we entered into six loan modifications that require disclosure pursuant to

Five of these loans were collateralized by office assets 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 March 31, 2025 , no income was recorded on our loans subsequent to determining that

they were impaired and risk rated “ 5 .”

One of the loan modifications included a term extension of 14 months.

As of March 31, 2025 , the amortized cost basis of

this loan was $ 108.7 million , or 0.6 % of our aggregate loans receivable portfolio, with an aggregate $ 23.9 million of

unfunded commitments.

This loan was in compliance with its modified contractual terms as of March 31, 2025 .

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 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 second 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 third loan modification 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.

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.

The fourth loan

modification had a term extension of 3.8 years , the loan was bifurcated into a separate senior loan and mezzanine loan, and

the borrower paid a $ 1.7 million fee upon closing of the modification .

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

modification had a term extension of one year , the interest rate on the senior loan decreased by 2.43 % , the borrower repaid

$ 25.0 million upon closing of the modification, 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-

We are accruing all of the interest on the senior loan that is paying partially current and partially in-kind, and

deferring interest on the mezzanine loan that is paying interest in-kind.

As of March 31, 2025 , the aggregate amortized cost

basis of these loans was $ 837.3 million , or 4.4 % of our aggregate loans receivable portfolio, with an aggregate

$ 53.8 million of unfunded commitments.

The loans were in compliance with their contractual terms as of March 31, 2025 .

As of March 31, 2025 , five of these modified loans had a risk rating of “ 5 ,” and one loan had a risk rating of “ 4 .” In

aggregate, these modifications resulted in the bifurcation of four loans into separate senior and mezzanine loans.

four newly bifurcated senior loans, three loans had a risk rating of “4,” and one loan had a risk rating of “3.” The four

newly bifurcated mezzanine loans all had a risk rating of “5.”

Multifamily Joint Venture

As discussed in Note 2 , we entered into a Multifamily Joint Venture in April 2017.

As of September 30, 2024 and December 31, 2023, our Multifamily Joint Venture held $ 294.7 million and $ 612.9 million of loans, respectively, which are included in the loan disclosures above.

As of September 30, 2024, our Multifamily Joint Venture also held a $ 32.2 million REO asset.

As of December 31, 2023, our Multifamily Joint Venture did no t hold any REO assets.

Refer to Note 4 for additional discussion of our REO assets.

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

REAL ESTATE OWNED

During the nine months ended September 30, 2024, we acquired three REO assets for a total acquisition price of $ 159.9 million.

We allocated $ 75.7 million to building and building improvements, $ 63.5 million to land and land improvements, $ 19.2 million to acquired intangible assets, and $ 1.5 million to other components of the purchase price.

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

On March 19, 2024, we acquired legal title to an office property located in Mountain View, CA through a deed-in-lieu of foreclosure transaction.

The office property previously collateralized a senior mortgage loan with an amortized cost basis of $ 90.2 million that was risk rated a “5” with a CECL reserve of $ 29.1 million at the time of the transaction.

The acquisition was accounted for as an asset acquisition under ASC Topic 805 “Business Combinations,” and upon acquisition we recognized the office property as an REO asset held for investment.

The REO asset was recorded on our consolidated balance sheet at $ 60.2 million based on its estimated fair value at acquisition.

This resulted in a CECL reserve charge-off of $ 29.1 million during the three months ended March 31, 2024.

On July 2, 2024, we acquired legal title to a multifamily property located in San Antonio, TX through a foreclosure transaction.

The multifamily property previously collateralized a senior mortgage loan with an amortized cost basis of

As of both March 31, 2025 and

December 31, 2024 , our Multifamily Joint Venture held a $ 43.3 million loan, which is included in the loan disclosures

As of March 31, 2025 and December 31, 2024 , our Multifamily Joint Venture also held a $ 32.3 million and

$ 32.4 million REO asset , respectively, which is included in the REO disclosures in Note 4 .

Refer to Note 2 for additional

discussion of our Multifamily Joint Venture.

REAL ESTATE OWNED, NET

As of March 31, 2025 and December 31, 2024 , we had eight and seven REO assets, respectively.

During the three months

ended March 31, 2025 , we acquired one REO asset through a deed-in-lieu of foreclosure transaction, with an acquisition

price of $ 45.0 million .

We allocated $ 19.7 million to building and building improvements, $ 15.0 million to land and land

improvements, $ 14.5 million to acquired intangible assets, and $( 4.2 ) million to other components of the purchase price.

We charged off $ 41.8 million of CECL reserves relating to this loan, as the loan’s carrying value of $ 86.9 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) (Unaudited)

$ 33.0 million that was risk rated a “4”, and did no t have an asset-specific CECL reserve at the time of the transaction.

The acquisition was accounted for as an asset acquisition under ASC Topic 805 “Business Combinations,” and upon acquisition we recognized the multifamily property as an REO asset held for investment.

The REO asset was recorded on our consolidated balance sheet at $ 33.6 million based on the estimated fair value at acquisition.

This transaction did no t result in any CECL reserve charge-offs during the three months ended September 30, 2024.

On September 16, 2024, we consolidated an office property located in Burlington, MA as a result of a loan modification that provided us an equity interest in the property.

Refer to Note 19 for additional information.

This was accounted for as an asset acquisition under ASC Topic 805 “Business Combinations,” and upon acquisition we recognized the office property as an REO asset held for investment.

The office property previously collateralized a senior mortgage loan with an amortized cost basis of $ 82.9 million that was risk rated a “5” with a CECL reserve of $ 17.5 million at the time of the transaction.

The REO asset was recorded on our consolidated balance sheet at $ 64.6 million based on its estimated fair value at acquisition.

This resulted in a CECL reserve charge-off of $ 17.5 million during the three months ended September 30, 2024.

See Note 2 for additional information on REO.

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

September 30, 2024

Land and land improvements $ 63,494

The acquisition of one REO asset during the three months ended March 31, 2025 was accounted for as an asset acquisition

under ASC Topic 805 “Business Combinations,” and we recognized this property as an REO asset held for investment.

following table presents the REO assets that were acquired during the three months ended March 31, 2025 ($ in

Acquisition Date

Property Type

Acquisition Date Fair Value

February 2025

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

March 31, 2025

December 31, 2024

Building and building improvements

Total $ 139,341

Land and land improvements

accumulated depreciation

3 unchanged sentences

Intangible real estate assets, net (1)

Intangible real estate liabilities

accumulated amortization

Intangible real estate liabilities, net (2)

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

Refer to Note 6 for additional information.

We recognized revenue from real estate owned of $ 1.2 million during both the three and nine months ended September 30, 2024, which is included in revenues from real estate owned in our consolidated statements of operations.

We recognized expenses from real estate owned of $ 2.7 million and $ 3.6 million during the three and nine months ended September 30, 2024, respectively.

These expenses consisted of $ 1.0 million and $ 1.2 million of depreciation and amortization expense during the three and nine months ended September 30, 2024, respectively, and $ 1.7 million and $ 2.4 million of other operating expenses during the three and nine months ended September 30, 2024, respectively.

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

Refer to Note 6 for additional information.

Revenue from real estate owned consisted of the following ($ in thousands):

Three Months Ended March 31,

Rental income

Other operating income

Revenue from real estate owned

We recognized expenses from real estate owned of $ 46.3 million during the three months ended March 31, 2025 .

expenses consisted of $ 30.1 million of operating expense and $ 16.2 million of depreciation and amortization expense.

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 three and nine months ended September 30, 2023.

There was no income or expense recognized related to REO assets during the three months ended March 31, 2024 .

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

The following table presents the undiscounted future minimum rents we expect to receive for our office properties as of

March 31, 2025 .

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

($ in thousands) :

Future Minimum Rents

2025 (remaining)

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

Below-market lease

2025 (remaining)

INVESTMENTS IN UNCONSOLIDATED ENTITIES

We hold a 75 % ownership interest 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.

March 31, 2025 , the Net Lease Joint Venture held six investments .

Refer to Note 2 for additional discussion of our Net

Lease Joint Venture .

During the three months ended March 31, 2025 we contributed $ 25.6 million to the joint venture, did not receive any

distributions, and recorded an $ 874,000 loss from unconsolidated entities in our consolidated statements of operations.

of March 31, 2025 and December 31, 2024 , our investment in unconsolidated entities totaled $ 29.0 million and

$ 4.5 million , respectively.

There was no income or loss from unconsolidated entities for the three months ended March 31,

In the first quarter of 2025, the Net Lease Joint Venture entered into a derivative agreement where we would be required to

make payment for periodic or final settlement of derivative contracts if the Net Lease Joint Venture is unable to fulfill its

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

OTHER ASSETS AND LIABILITIES

The following table details the components of our other assets ($ in thousands):

September 30, 2024 December 31, 2023

March 31, 2025

December 31, 2024

Accrued interest receivable

Loan portfolio payments held by servicer (1)

131,347 152,423

Collateral deposited under derivative agreements 49,080 103,500

Real estate intangible assets, net

Collateral deposited under derivative agreements

Other real estate assets

Accounts receivable and other assets (1)

Derivative assets

Loan portfolio payments held by servicer (2)

Prepaid expenses

Total $ 390,907 $ 476,088

(1) 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.

(1) December 31, 2024 balance includes $ 95.5 million of cash collateral held by our CLOs that was 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

The following table details the components of our other liabilities ($ in thousands):

September 30, 2024 December 31, 2023

Secured debt repayments pending servicer remittance (1)

$ 105,078 $ 13,526

March 31, 2025

December 31, 2024

Other real estate liabilities

Accrued dividends payable

Accrued interest payable 74,168 97,820

Derivative liabilities

Accrued interest payable

Accrued management and incentive fees payable

Current expected credit loss reserves for unfunded loan commitments (2)

Accounts payable and other liabilities

Total $ 346,382 $ 362,531

(1) Represents pending transfers from our third-party loan servicer that were remitted to our banking counterparties during the subsequent remittance cycle.

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

Secured debt repayments pending servicer remittance (2)

(1) Represents the CECL reserve related to our unfunded loan commitments.

See Note 2 for further discussion of the CECL reserves.

See Note 2 for further discussion of the

CECL reserves.

(2) Represents pending transfers from our third-party loan servicer that were remitted to our banking counterparties

during the subsequent remittance cycle.

Current Expected Credit Loss Reserves for Unfunded Loan Commitments

As of September 30, 2024, we had aggregate unfunded commitments of $ 1.6 billion related to 76 loans receivable.

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

See Note 2 for further discussion of the CECL reserves related to our unfunded loan commitments, and Note 21 for further discussion of our unfunded loan commitments.

During the three and nine months ended September 30, 2024, we recorded decreases in the CECL reserves related to our unfunded loan commitments of $ 1.6 million and $ 7.1 million, respectively, bringing our total unfunded loan commitments CECL reserve to $ 8.3 million as of September 30, 2024.

During the three months ended September 30, 2023, we recorded an increase in the CECL reserves related to our unfunded loan commitments of $ 2.6 million, and for the nine months ended September 30, 2023, we recorded a decrease in the CECL reserves related to our unfunded loan commitments of $ 2.8 million, bringing our total unfunded loan commitments CECL reserve to $ 13.6 million as of September 30, 2023.

As of March 31, 2025 , we had aggregate unfunded commitments of $ 1.0 billion related to 57 loans receivable.

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.

During the three months ended

March 31, 2025 , we recorded an increase in the CECL reserves related to our unfunded loan commitments of $ 75,000 ,

bringing our total unfunded loan commitments CECL reserve to $ 10.5 million as of March 31, 2025 .

During the three

months ended March 31, 2024 , we recorded a decrease in the CECL reserves related to our unfunded loan commitments of

$ 2.7 million , bringing our total unfunded loan commitments CECL reserve to $ 12.6 million as of March 31, 2024 .

Blackstone Mortgage Trust, Inc.

1 unchanged sentence

SECURED DEBT, NET

Our secured debt includes our secured credit facilities.

During the nine months ended September 30, 2024, we obtained approval for $ 531.5 million of new borrowings against $ 709.0 million of collateral assets.

Our secured debt represents borrowings under our secured credit facilities.

During the three months ended March 31, 2025 ,

we closed $ 732.4 million of new borrowings against $ 908.0 million of collateral assets.

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

Borrowings Outstanding

September 30, 2024 December 31, 2023

March 31, 2025

December 31, 2024

Secured credit facilities

Deferred financing costs (1)

( 11,067 ) ( 13,963 )

Net book value of secured debt

(1) Costs incurred in connection with our secured debt are recorded on our consolidated balance sheets when incurred and recognized as a component of interest expense over the life of each related facility.

(1) Costs incurred in connection with our secured debt are recorded on our consolidated balance sheets when incurred

and recognized as a component of interest expense over the life of each related facility.

Secured Credit Facilities

Our secured credit facilities are bilateral agreements we use to finance diversified pools of senior loan collateral with sufficient flexibility to accommodate our investment and asset management strategy.

The facilities are uniformly structured to provide currency, index, and term-matched financing without capital markets based mark-to-market provisions.

Our credit facilities are diversified across 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 September 30, 2024 ($ in thousands):

September 30, 2024

Recourse Limitation

Currency Lenders (1)

Borrowings Wtd.

Loan Count Collateral (3)

USD 13 $ 5,700,943 August 2026 103 $ 9,456,409 September 2026 36 % 25 % - 100 %

GBP 6 2,290,098 March 2027 16 3,028,733 March 2027 26 % 25 % - 50 %

EUR 7 1,810,878 September 2026 11 2,453,143 September 2026 41 % 25 % - 100 %

4 1,210,639 April 2028 4 1,513,298 April 2028 25 % 25 %

Total 14 $ 11,012,558 December 2026 134 $ 16,451,583 December 2026 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.

Our secured credit facilities are bilateral agreements we use to finance diversified pools of senior loan collateral with

sufficient flexibility to accommodate our investment and asset management strategy.

The facilities are uniformly structured

to provide currency, index, and term-matched financing without capital markets based mark-to-market provisions.

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 as of March 31, 2025 ($ in thousands):

March 31, 2025

Collateral (3)

December 2026

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

facility lenders.

(2) Our secured debt agreements are generally term-matched to their underlying collateral.

Therefore, the weighted-average maturity is generally allocated based on the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower.

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

Therefore, the weighted-

average maturity is generally allocated based on the maximum maturity date of the collateral loans, assuming all

extension options are exercised by the borrower.

In limited instances, the maturity date of the respective secured

credit facility is used.

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

(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, Canadian 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

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) (Unaudited)

The following tables detail the spread of our secured debt as of September 30, 2024 and December 31, 2023 ($ in thousands):

Nine Months Ended September 30, 2024 September 30, 2024

The following tables detail the spread of our secured credit facilities as of March 31, 2025 and December 31, 2024 ($ in

Three Months Ended

March 31, 2025

New Financings (2)

All-in Cost (1)(3)(4)

Cost (1)(3)(4)

Collateral (5)

All-in Yield (1)(3)

+ 1.50% or less

2 unchanged sentences

+ 2.01% or more

Total $ 531,530 $ 11,012,558 + 1.91 % $ 16,451,583 + 3.62 % + 1.71 %

Year Ended December 31, 2023 December 31, 2023

December 31, 2024

New Financings (2)

All-in Cost (1)(3)(4)

Cost (1)(3)(4)

Collateral (5)

All-in Yield (1)(3)

+ 1.50% or less

2 unchanged sentences

+ 2.01% or more

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, SONIA, EURIBOR, and other indices as applicable.

(2) Represents the amount of new borrowings we obtained approval for during the nine months ended September 30, 2024 and year ended December 31, 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 and nonaccrual methods, if any, and REO assets.

(4) Represents the weighted-average all-in cost as of September 30, 2024 and December 31, 2023, respectively, and is not necessarily indicative of the spread applicable to recent or future borrowings.

(1) The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include

SOFR, SONIA, EURIBOR, CORRA, and other indices as applicable.

(2) Represents the amount of new borrowings we closed during the three months ended March 31, 2025 and year ended

December 31, 2024 , respectively.

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

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 and nonaccrual methods, if any, and REO assets.

(4) Represents the weighted-average all-in cost as of March 31, 2025 and December 31, 2024 , respectively, and is not

necessarily indicative of the spread applicable to recent or future borrowings.

(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.

Our secured credit facilities generally permit us to increase or decrease the amount advanced against the pledged collateral in our discretion within certain maximum/minimum amounts and frequency limitations.

As of September 30, 2024, there was an aggregate $ 1.1 billion available to be drawn at our discretion under our credit facilities.

Acquisition Facility

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 nine months ended September 30, 2024, we had no borrowings under the acquisition facility, and we recorded interest expense of $ 126,000 , including $ 35,000 of amortization of deferred fees and expenses.

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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

Our secured credit facilities generally permit us to increase or decrease the amount advanced against the pledged collateral

in our discretion within certain maximum/minimum amounts and frequency limitations.

As of March 31, 2025 , there was

an aggregate $ 915.7 million available to be drawn at our discretion under our credit facilities.

Financial Covenants

As of September 30, 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;

(ii) our tangible net worth, as defined in the agreements, shall not be less than $ 3.6 billion as of each measurement date plus 75 % to 85 % of the net cash proceeds of future equity issuances subsequent to September 30, 2024;

(iii) cash liquidity shall not be less than the greater of (x) $ 10.0 million or (y) no more than 5 % of our recourse indebtedness;

As of March 31, 2025 , 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;

(ii) our tangible net worth, as defined in the agreements, shall not be less than $ 3.6 billion

as of each measurement date plus 75 % to 85 % of the net cash proceeds of future equity issuances subsequent to March 31,

(iii) cash liquidity shall not be less than the greater of (x) $ 10.0 million or (y) no more than 5 % of our recourse

indebtedness;

and (iv) our indebtedness shall not exceed 83.33 % of our total assets.

As of September 30, 2024 and December 31, 2023, we were in compliance with these covenants.

During the three months ended September 30, 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.

As of March 31, 2025 and

December 31, 2024 , we were in compliance with these covenants.

During the three months ended March 31, 2025 , 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.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued) (Unaudited)

SECURITIZED DEBT OBLIGATIONS, NET

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

The CLOs are consolidated in our financial statements and have issued securitized debt obligations that are non-recourse to us.

Refer to Note 19 for further discussion of our CLOs.

The following tables detail our securitized debt obligations and the underlying collateral assets that are financed by our CLOs ($ in thousands):

September 30, 2024

Securitized Debt Obligations Count Principal

The CLOs are consolidated

in our financial statements and have issued securitized debt obligations that are non-recourse to us.

Refer to Note 20 for

further discussion of our CLOs.

The following tables detail our securitized debt obligations and the underlying collateral

assets that are financed by our CLOs ($ in thousands):

March 31, 2025

Securitized Debt Obligations

Yield/Cost (2)(3)

2025 FL5 Collateralized Loan Obligation

Senior CLO Securities Outstanding 1 $ 785,453 $ 785,371 + 1.40 % May 2038

Underlying Collateral Assets 25 981,703 981,703 + 3.26 % January 2026

Senior CLO Securities Outstanding

Underlying Collateral Assets

2021 FL4 Collateralized Loan Obligation

Senior CLO Securities Outstanding 1 659,495 659,494 + 1.86 % November 2037

Underlying Collateral Assets 14 850,745 850,745 + 3.06 % February 2026

Senior CLO Securities Outstanding

Underlying Collateral Assets

2020 FL3 Collateralized Loan Obligation

Senior CLO Securities Outstanding 1 803,484 803,442 + 1.38 % February 2038

Underlying Collateral Assets 14 1,060,359 1,060,359 + 2.82 % April 2026

Senior CLO Securities Outstanding

3 $ 2,248,432 $ 2,248,307 + 1.53 %

November 2037

Underlying Collateral Assets

December 2026

2020 FL2 Collateralized Loan Obligation

Senior CLO Securities Outstanding

February 2038

Underlying Collateral Assets

Senior CLO Securities Outstanding (5)

Underlying Collateral Assets

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

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

(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 .

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.

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

The term of these obligations represents the rated final distribution date of the securitizations.

(5) During the three and nine months ended September 30, 2024, we recorded $ 40.6 million and $ 123.9 million, respectively, of interest expense related to our securitized debt obligations.

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.

The term of these obligations represents

the rated final distribution date of the securitizations.

(5) During the three months ended March 31, 2025 , we recorded $ 27.6 million of interest expense related to our

securitized debt obligations.

Blackstone Mortgage Trust, Inc.

1 unchanged sentence

December 31, 2024

Securitized Debt Obligations Count Principal

Securitized Debt Obligations

Book Value (1)

1 unchanged sentence

2021 FL4 Collateralized Loan Obligation

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

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

Senior CLO Securities Outstanding

Underlying Collateral Assets

2020 FL3 Collateralized Loan Obligation

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

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

Senior CLO Securities Outstanding

November 2037

Underlying Collateral Assets

2020 FL2 Collateralized Loan Obligation

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

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

Senior CLO Securities Outstanding

3 $ 2,507,514 $ 2,505,417 + 1.79 %