BLACKSTONE MORTGAGE TRUST, INC. 10-Q

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us,” or “our” refer to Blackstone Mortgage Trust, Inc. and its subsidiaries unless the context specifically requires otherwise. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q and with our Annual Report on Form 10-K for the year ended December 31, 2024 . In addition to historical data, this discussion and analysis contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which reflect our current views with respect to, among other things, our business, operations and financial performance. You can identify these forward-looking statements by the use of words such as “intend,” “goal,” “estimate,” “expect,” “project,” “projections,” “plans,” “seeks,” “anticipates,” “should,” “could,” “may,” “designed to,” “foreseeable future,” “believe,” “scheduled,” and similar expressions. Such forward- looking statements are subject to various risks, uncertainties and assumptions. Our actual results or outcomes may differ materially from those in this discussion and analysis as a result of various factors, including but not limited to those discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024 and elsewhere in this Quarterly Report on Form 10-Q. Introduction Blackstone Mortgage Trust is a real estate finance company that originates, acquires, and manages senior loans and other debt or credit-oriented investments collateralized by or relating to commercial real estate in North America, Europe, and Australia. Our portfolio is composed primarily of senior loans secured by high-quality, institutional assets located in major markets, and sponsored by experienced, well-capitalized real estate investment owners and operators. We finance our investments in a variety of ways, including borrowing under our credit facilities, issuing collateralized loan obligations, or CLOs, or single-asset securitizations, asset-specific financings, syndicating senior loan participations, and corporate financing, depending on our view of the most prudent financing option available for each of our investments. We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” We benefit from the deep knowledge, experience and information advantages of our Manager, which is a part of Blackstone’s real estate platform. Blackstone’s real estate group is the largest owner of commercial real estate globally with over 12,500 commercial assets and a proven track record of successfully navigating market cycles and emerging stronger through periods of volatility. The market-leading real estate expertise derived from the strength of the Blackstone platform deeply informs our credit and underwriting process, and we believe gives us the tools to expertly manage the assets in our portfolio and work with our borrowers throughout periods of economic stress and uncertainty. We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended. We are organized as a holding company and conduct our business primarily through our various subsidiaries. Macroeconomic Environment Recently announced tariffs in the U.S. have contributed to significant and ongoing uncertainty and volatility of debt and equity markets. There is significant uncertainty as to the outcome of ongoing global trade negotiations, the extent of retaliatory measures taken by other countries and the ultimate impact on the U.S. and global economies. A prolonged period of policy-driven uncertainty and continued market volatility increases the likelihood of a slowdown in the U.S. and global economies and could impact the ongoing recovery in the commercial real estate market, which could adversely affect us, our borrowers, their tenants and the value of the real estate assets related to our investments. At the same time, the announced tariffs are likely to increase construction costs and further reduce already constrained new supply starts, including in certain sectors in which our portfolio is concentrated, such as multifamily and industrial. This should be supportive of real estate values over time, subject to inflation continuing to subside and absent recessionary condition. 54 I. Key Financial Measures and Indicators As a real estate finance company, we believe the key financial measures and indicators for our business are earnings per share, dividends declared, Distributable Earnings, Distributable Earnings prior to charge-offs, and book value per share. For the three months ended March 31, 2025 , we recorded basic net loss per share of $0.00 , declared a dividend of $ 0.47 per share, reported $0.17 per share of Distributable Earnings, and reported $0.42 per share of Distributable Earnings prior to charge-offs. In addition, our book value as of March 31, 2025 was $21.42 per share, which is net of cumulative CECL reserves of $4.39 per share. As further described below, Distributable Earnings and Distributable Earnings prior to charge-offs are measures that are not prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. Distributable Earnings and Distributable Earnings prior to charge-offs helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations. In addition, Distributable Earnings and Distributable Earnings prior to charge-offs are performance metrics we consider when declaring our dividends. Earnings Per Share and Dividends Declared The following table sets forth the calculation of basic net income (loss) per share and dividends declared per share ($ in thousands, except per share data): Three Months Ended March 31, 2025 December 31, 2024 Net (loss) income (1) $ (357) $ 37,190 Weighted-average shares outstanding, basic 172,004,888 173,488,888 Net (loss) income per share, basic $ (0.00) $ 0.21 Dividends declared per share $ 0.47 $ 0.47 (1) Represents net (loss) income attributable to Blackstone Mortgage Trust. Refer to Note 15 to our consolidated financial statements for the calculation of diluted net (loss) income per share. Distributable Earnings and Distributable Earnings Prior to Charge-Offs Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves are non-GAAP measures. We define Distributable Earnings as GAAP net income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), and (iv) certain non-cash items. Distributable Earnings may also be adjusted from time to time to exclude one-time events pursuant to changes in GAAP and certain other non-cash charges as determined by our Manager, subject to approval by a majority of our independent directors. Distributable Earnings mirrors the terms of our management agreement between our Manager and us, or our Management Agreement, for purposes of calculating our incentive fee expense. Therefore, Distributable Earnings prior to charge-offs of CECL reserves is calculated net of the incentive fee expense that would have been recognized if such charge-offs had not occurred. Our CECL reserves have been excluded from Distributable Earnings consistent with other unrealized gains (losses) pursuant to our existing policy for reporting Distributable Earnings. We expect to only recognize such potential credit losses in Distributable Earnings if and when such amounts are realized and deemed non-recoverable upon a realization event. This is generally at the time a loan is repaid, or in the case of foreclosure, when the underlying asset is sold, but realization and non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected. The timing of any such credit loss realization in our Distributable Earnings may differ materially from the timing of CECL reserves or charge-offs in our consolidated financial statements prepared in accordance with GAAP. The realized loss amount reflected in Distributable Earnings will equal the difference between the cash received, or expected to be received, and the book value of the asset, and is reflective of our economic experience as it relates to the ultimate realization of the loan. We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss) and cash flow from operating activities determined in accordance with GAAP. We believe Distributable Earnings is a useful financial metric for existing and potential future holders of our class A common stock as historically, over time, Distributable Earnings has been a strong indicator of our dividends per share. As a REIT, we generally must distribute 55 annually at least 90% of our net taxable income, subject to certain adjustments, and therefore we believe our dividends are one of the principal reasons stockholders may invest in our class A common stock. Refer to Note 17 to our consolidated financial statements for further discussion of our distribution requirements as a REIT. Further, Distributable Earnings helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations, and is a performance metric we consider when declaring our dividends. Furthermore, we believe it is useful to present Distributable Earnings prior to charge-offs of CECL reserves to reflect our direct operating results and help existing and potential future holders of our class A common stock assess the performance of our business excluding such charge-offs. We utilize Distributable Earnings prior to charge-offs of CECL reserves as an additional performance metric to consider when declaring our dividends. Distributable Earnings mirrors the terms of our Management Agreement for purposes of calculating our incentive fee expense. Therefore, Distributable Earnings prior to charge-offs of CECL reserves is calculated net of the incentive fee expense that would have been recognized if such charge-offs had not occurred. Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves do not represent net income (loss) or cash generated from operating activities and should not be considered as alternatives to GAAP net income (loss), or indicators of our GAAP cash flows from operations, measures of our liquidity, or indicators of funds available for our cash needs. In addition, our methodology for calculating Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves may not be comparable to similar metrics reported by other companies. 56 The following table provides a reconciliation of Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves to GAAP net income (loss) ($ in thousands, except per share data): Three Months Ended March 31, 2025 December 31, 2024 Net (loss) income (1) $ (357) $ 37,190 Charge-offs of CECL reserves (2) (41,824) (294,064) Increase in CECL reserves 49,505 19,055 Depreciation and amortization of real estate owned 16,517 8,193 Non-cash compensation expense 6,965 7,772 Realized hedging and foreign currency loss, net (3) (1,237) (598) Allocable share of adjustments related to unconsolidated entities (4) 94 — Cash (non-cash) income from agency multifamily partnership, net (5) 24 (718) Contingent liabilities (6) — 5,653 Adjustments attributable to non-controlling interests, net (94) (102) Other items (3) (11) Distributable Earnings $ 29,590 $ (217,630) Charge-offs of CECL reserves (2) 41,824 294,064 Distributable Earnings prior to charge-offs of CECL reserves $ 71,414 $ 76,434 Weighted-average shares outstanding, basic (7) 172,004,888 173,488,888 Distributable Earnings per share, basic $ 0.17 $ (1.25) Distributable Earnings per share, basic, prior to charge-offs of CECL reserves $ 0.42 $ 0.44 (1) Represents net (loss) income attributable to Blackstone Mortgage Trust. (2) Represents realized losses related to loan principal amounts deemed non-recoverable. (3) Represents realized losses on the repatriation of unhedged foreign currency. These amounts were not included in GAAP net income (loss), but rather as a component of other comprehensive income in our consolidated financial statements. (4) Allocable share of adjustments related to unconsolidated entities reflects our share of (i) non-cash items such as depreciation and amortization, (ii) unrealized gains and losses recorded by such unconsolidated entities, if any, and (iii) related adjustments for realized gains, if any. (5) Represents (i) the non-cash income recognized under GAAP related to our Agency Multifamily Lending Partnership, in which we receive a portion of origination, servicing, and other fees for loans we refer to MTRCC for origination, offset by the related loss-sharing obligation accruals and (ii) the cash received related to such income previously recognized under GAAP. Refer to Note 2 to our consolidated financial statements for additional information on our Agency Multifamily Lending Partnership . (6) Represents a contingent liability related to a sale of a loan. (7) The weighted-average shares outstanding, basic, exclude shares issuable from a potential conversion of our Convertible Notes then outstanding. Consistent with the treatment of other unrealized adjustments to Distributable Earnings, these potentially issuable shares are excluded until a conversion occurs. Refer to Note 15 to our consolidated financial statements for the calculation of diluted net income per share. 57 Book Value Per Share The following table calculates our book value per share ($ in thousands, except per share data): March 31, 2025 December 31, 2024 Stockholders’ equity $ 3,681,968 $ 3,787,308 Shares Class A common stock 171,582,452 172,792,094 Deferred stock units 310,108 412,096 Total outstanding 171,892,560 173,204,190 Book value per share (1) $ 21.42 $ 21.87 (1) The book value per share excludes shares issuable from a potential conversion of our Convertible Notes then outstanding. Refer to Note 15 to our consolidated financial statements for the calculation of diluted net income per share. II. Investment Portfolio Loan Portfolio During the three months ended March 31, 2025 , we originated or acquired $1.6 billion of loans. Loan fundings during the three months ended March 31, 2025 totaled $1.7 billion and loan repayments and sales totaled $1.8 billion . We generated interest income of $332.1 million and incurred interest expense of $242.2 million during the three months ended March 31, 2025 , which resulted in $89.8 million of net interest income during the three months ended March 31, 2025 . Loan Portfolio Overview The following table details our loan origination activity ($ in thousands): Three Months Ended March 31, 2025 December 31, 2024 Loan originations (1) $ 1,554,159 $ 197,230 Loan fundings $ 1,681,299 $ 376,871 Loan repayments and sales (1,810,678) (1,607,073) Total net repayments $ (129,379) $ (1,230,202) (1) Includes new loan originations and acquisitions, and additional commitments made under existing loans. 58 The following table details overall statistics for our loans receivable portfolio as of March 31, 2025 ($ in thousands): Balance Sheet Portfolio Number of loans 138 Principal balance $ 19,217,768 Net book value $ 18,308,171 Unfunded loan commitments (1) $ 1,033,229 Weighted-average cash coupon (2) + 3.39 % Weighted-average all-in yield (2) + 3.70 % Weighted-average maximum maturity (years) (3) 2.3 Origination loan-to-value (LTV) (4) 63.3 % (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, CORRA, and other indices as applicable to each investment. As of March 31, 2025 , 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 and other investments may be repaid prior to such date. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any . As of 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. (4) Based on LTV as of the dates loans were originated or acquired by us, excluding any loans that are impaired and any junior participations sold. The following table details the index rate floors for our loan portfolio as of March 31, 2025 ($ in thousands): Loans Receivable Principal Balance Index Rate Floors USD Non-USD (1) Total Fixed Rate $ 161,794 $ — $ 161,794 0.00% or no floor (2) 2,253,062 5,429,004 7,682,066 0.01% to 1.00% floor 3,831,152 383,878 4,215,030 1.01% to 2.00% floor 1,270,538 1,002,702 2,273,240 2.01% to 3.00% floor 2,840,351 371,186 3,211,537 3.01% or more floor 1,340,478 333,623 1,674,101 Total (3) $ 11,697,375 $ 7,520,393 $ 19,217,768 (1) Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, Canadian Dollar, and Swiss Franc currencies. (2) Includes all impaired loans. (3) As of March 31, 2025 , the weighted-average index rate floor of our floating-rate loans receivable principal balance was 1.13% . Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 1.74% . 59 The following table details the floating benchmark rates for our loan portfolio as of March 31, 2025 (loans receivable principal balance amounts in thousands): Loan Count Currency Loans Receivable Principal Balance Floating Rate Index (1) Cash Coupon (2) All-in Yield (2) 107 $ $ 11,697,375 SOFR + 3.19% + 3.47% 15 £ £ 2,400,386 SONIA + 3.23% + 3.67% 10 € € 2,222,792 EURIBOR + 3.80% + 4.17% 6 Various $ 2,015,401 Other (3) + 3.98% + 4.24% 138 $ 19,217,768 + 3.39% + 3.70% (1) We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S. dollar. We earn forward points on our forward contracts that reflect the interest rate differentials between the applicable base rate for our foreign currency investments and prevailing U.S. interest rates. These forward contracts effectively convert the foreign currency rate exposure for such investments to USD- equivalent interest rates. (2) 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) Includes floating rate loans indexed to STIBOR, CORRA, BBSY, and SARON indices . 60 The charts below detail the geographic distribution a nd types of properties securing our loan portfolio, as of March 31, 2025 : Geographic Diversification (Net Loan Exposure) (1) Collateral Diversification (Net Loan Exposure) (1)(2) ______________ (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. Geographic locations that represent less than 1% of net loan exposure are excluded from the chart. (2) Assets with multiple components are proportioned into the relevant collateral types based on the allocated value of each collateral type. Refer to section VI of this Item 2 for details of our loan portfolio, on a loan-by-loan basis. Portfolio Management As of March 31, 2025 , 95% of our loans were performing with risk ratings of “1” through “4,” and the remaining 5% were impaired with a risk rating of “5.” O f the performing loans, 99.2% , based on net loan exposure, were in compliance with the applicable contractual terms. We believe this demonstrates the overall strength of our loan portfolio and the commitment and financial wherewithal of our borrowers generally, which are primarily affiliated with large real estate private equity funds and other strong, well-capitalized, and experienced sponsors. We maintain a robust asset management relationship with our borrowers and utilize these relationships to maximize the performance of our portfolio, including during periods of volatility. We believe that we benefit from these relationships and from our long-standing core business model of originating senior loans collateralized by large assets in major markets with experienced, well-capitalized institutional sponsors. While we believe the principal amounts of our loans are generally adequately protected by underlying collateral value, there is a risk that we will not realize the entire principal value of certain investments. As of March 31, 2025 , we had an aggregate $555.4 million asset-specific CECL reserve related to 13 61 of our loans receivable, with an aggregate amortized cost basis of $1.5 billion , net of cost-recovery proceeds. This CECL reserve was recorded based on our estimation of the fair value of each of the loan's underlying collateral as of March 31, 2025 . Our portfolio monitoring and asset management operations benefit from the deep knowledge, experience, and information advantages derived from our position as part of Blackstone’s real estate platform. Blackstone’s real estate group is the largest owner of commercial real estate globally with over 12,500 commercial assets and a proven track record of successfully navigating market cycles and emerging stronger through periods of volatility. The market-leading real estate expertise derived from the strength of the Blackstone platform deeply informs our credit and underwriting process, and gives us the tools to expertly asset manage our portfolio and work with our borrowers throughout periods of economic stress and uncertainty. As discussed in Note 2 to our consolidated financial statements, we perform a quarterly review of our loan portfolio, assesses the performance of each loan, and assigns it a risk rating between “1” and “5”, from less risk to greater risk. Our loan portfolio had a weighted-average risk rating of 3.0 as of both March 31, 2025 and December 31, 2024 , respectively . The following table allocates the net book value and net loan exposure balances based on our internal risk ratings ($ in thousands): March 31, 2025 Risk Rating Number of Loans Net Book Value Net Loan Exposure (1) 1 10 $ 562,331 $ 561,866 2 20 3,324,353 3,324,516 3 75 10,728,778 10,093,832 4 20 2,912,484 2,813,943 5 13 1,521,766 969,175 Loans receivable 138 $ 19,049,712 $ 17,763,332 CECL reserve (741,541) Loans receivable, net $ 18,308,171 (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. Current Expected Credit Loss Reserve The CECL reserves required by GAAP reflect our current estimate of potential credit losses related to our loans and notes receivable included in our consolidated balance sheets. Other than a few narrow exceptions, GAAP requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the principle underlying the CECL model that all loans and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors. During the 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 62 doubtful. During the three months ended March 31, 2025 , we recorded $2.8 million of interest income on this loan. This 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 . No 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 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 interest. Refer to Note 2 to our consolidated financial statements for further discussion of our policies on revenue recognition and our CECL reserves. Real Estate Owned As part of our portfolio management strategy to maximize economic outcomes, we may hold certain real estate owned, or REO, investments resulting from us acquiring title to or taking control of a loan’s underlying real estate collateral. As of March 31, 2025 , we had eight REO assets with an aggregate carrying value of $640.4 million . Multifamily Joint Venture As of March 31, 2025 , our multifamily joint venture held a $43.3 million loan , which is included in the loan disclosures above. As of March 31, 2025 , our Multifamily Joint Venture also held a $32.3 million REO asset. Refer to Note 2 to our consolidated financial statements for additional discussion of our multifamily joint venture. Agency Multifamily Lending Partnership In the second quarter of 2024, we entered into our Agency Multifamily Lending Partnership that allows our borrowers to access multifamily agency financing through MTRCC’s Fannie Mae DUS and Freddie Mac Optigo lending platforms. We will receive a portion of origination, servicing, and other fees for loans that we refer to MTRCC for origination under both the Fannie Mae and Freddie Mac programs. Additionally, we will share in losses with MTRCC and Fannie Mae on loans that we refer to MTRCC for origination under the Fannie Mae program. During the three months ended March 31, 2025 , we did not refer any loans to MTRCC. Net Lease Joint Venture In the fourth quarter of 2024, we entered into our Net Lease Joint Venture with another Blackstone-advised investment vehicle to invest in triple net lease properties, which is recorded on our consolidated balance sheets as an investment in unconsolidated entities. As of March 31, 2025 , our investment in unconsolidated entities totaled $29.0 million . 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 $874,000 loss from unconsolidated entities in our consolidated statements of operations. 63 Portfolio Financing Our portfolio financing consists of secured debt, securitizations, and asset-specific debt. The following table details our portfolio financing ($ in thousands): Portfolio Financing Outstanding Principal Balance March 31, 2025 December 31, 2024 Secured debt $ 10,011,541 $ 9,705,529 Securitizations 2,569,979 1,936,967 Asset-specific debt 494,081 1,228,110 Total portfolio financing $ 13,075,601 $ 12,870,606 Secured Debt The following table details our secured credit facilities by spread over the applicable base rates as of March 31, 2025 ($ in thousands): Three Months Ended March 31, 2025 March 31, 2025 Spread (1) New Financings (2) Total Borrowings Wtd. Avg. All-in Cost (1)(3)(4) Collateral (5) Wtd. Avg. All-in Yield (1)(3) Net Interest Margin (6) + 1.50% or less $ 332,431 $ 4,070,890 +1.52 % $ 6,215,254 +3.19 % +1.67 % + 1.51% to + 1.75% 315,623 2,598,070 +1.77 % 3,391,195 +3.43 % +1.66 % + 1.76% to + 2.00% — 952,714 +2.09 % 1,751,216 +3.70 % +1.61 % + 2.01% or more 84,305 2,389,867 +2.61 % 3,421,739 +4.27 % +1.66 % Total $ 732,359 $ 10,011,541 +1.90 % $ 14,779,404 +3.55 % +1.65 % (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 . (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 March 31, 2025 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. 64 Securitizations We have financed certain pools of our loans through collateralized loan obligations, or CLOs. The following table details our securitized debt obligations and the underlying collateral assets that are financed by our CLOs ($ in thousands): March 31, 2025 Securitized Debt Obligations Count Principal Balance Book Value (1) Wtd. Avg. Yield/Cost (2)(3) Term (4) 2025 FL5 Collateralized Loan Obligation Senior CLO Securities Outstanding 1 $ 831,250 $ 821,167 + 2.08 % October 2042 Underlying Collateral Assets 19 1,000,000 1,000,000 + 3.41 % July 2028 2021 FL4 Collateralized Loan Obligation Senior CLO Securities Outstanding 1 670,149 670,149 + 1.42 % May 2038 Underlying Collateral Assets 22 849,996 849,996 + 2.90 % October 2026 2020 FL3 Collateralized Loan Obligation Senior CLO Securities Outstanding 1 469,730 469,730 + 2.44 % November 2037 Underlying Collateral Assets 12 637,509 637,509 + 3.04 % December 2026 2020 FL2 Collateralized Loan Obligation Senior CLO Securities Outstanding 1 598,850 598,850 + 1.65 % February 2038 Underlying Collateral Assets 12 831,395 831,395 + 3.27 % October 2026 Total Senior CLO Securities Outstanding (5) 4 $ 2,569,979 $ 2,559,896 + 1.88 % Underlying Collateral Assets 65 $ 3,318,900 $ 3,318,900 + 3.31 % (1) The book value of underlying collateral assets excludes any applicable CECL reserves. (2) In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees. (3) The weighted-average all-in yield and cost are expressed as a spread over SOFR . 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 $27.6 million of interest expense related to our securitized debt obligations. Refer to Note 8 and Note 20 to our consolidated financial statements for additional details of our securitized debt obligations. 65 Asset-Specific Debt The following table details our asset-specific debt ($ in thousands): March 31, 2025 Asset-Specific Debt Count Principal Balance Book Value (1) Wtd. Avg. Yield/Cost (2) Wtd. Avg. Term (3) Financing provided 2 $ 494,081 $ 492,235 + 3.36 % September 2029 Collateral assets 2 $ 611,628 $ 606,073 + 4.58 % September 2029 (1) The book value of underlying collateral assets excludes any applicable CECL reserves. (2) The weighted-average all-in yield and cost are expressed as a spread ov er the relevant floating benchmark rates, which include SOFR and CORRA, as applicable . These floating rate loans and related liabilities are currency and index-matched to the applicable benchmark rate relevant in each arrangement. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees and financing costs. (3) The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrower. Our non-recourse, asset-specific debt is term-matched in each case to the corresponding collateral loans. Corporate Financing The following table details our outstanding corporate financing ($ in thousands): Corporate Financing Outstanding Principal Balance March 31, 2025 December 31, 2024 Term loans $ 1,760,748 $ 1,764,437 Senior secured notes 785,316 785,316 Convertible notes 266,157 266,157 Total corporate financing $ 2,812,221 $ 2,815,910 66 The following table details our outstanding senior term loan facilities, or Term Loans, our outstanding senior secured notes, or Senior Secured Notes, and convertible senior notes, or Convertible Notes, as of March 31, 2025 ($ in thousands): Corporate Financing Face Value Interest Rate (1) All-in Cost (1)(2) Maturity Term Loans B-1 Term Loan $ 309,268 + 2.36 % + 2.53 % April 23, 2026 B-4 Term Loan 803,105 + 3.50 % + 4.11 % May 9, 2029 B-5 Term Loan 648,375 + 3.75 % + 4.27 % December 10, 2028 Total term loans $ 1,760,748 Senior Secured Notes October 2021 $ 335,316 3.75 % 4.06 % January 15, 2027 December 2024 450,000 7.75 % (3) 8.14 % December 1, 2029 Total senior secured notes $ 785,316 Convertible Notes Convertible Notes (4) $ 266,157 5.50 % 5.79 % March 15, 2027 Total corporate financings $ 2,812,221 (1) The B-4 Term Loan and the B-5 Term Loan borrowings are subject to a floor of 0.50% . The Term Loans are indexed to one-month SOFR . (2) Includes issue discounts, transaction expenses, and/or issuance costs, as applicable, that are amortized through interest expense over the life of each respective financing. (3) Represents the stated coupon rate of the notes. We have entered into an interest rate swap that effectively converts our fixed rate exposure to a SOFR + 3.95% floating rate exposure. Refer to Note 12 to our consolidated financial statements for additional information. (4) The conversion price of the Convertible Notes is $36.27 , which represents the price of class A common stock per share based on a conversion rate of 27.5702 . The conversion rate represents the number of shares of class A common stock issuable per $1,000 principal amount of Convertible Notes. The cumulative dividend threshold has not been exceeded as of March 31, 2025 . Refer to Note 2 , Note 11 , Note 12 , and Note 13 to our consolidated financial statements for additional discussion of our Term Loans, Senior Secured Notes, and Convertible Notes. Floating Rate Portfolio Generally, our business model is such that rising interest rates will increase our net income, while declining interest rates will decrease net income. As of March 31, 2025 , substantially all of our loans by principal balance earned a floating rate of interest and were financed with liabilities that pay interest at floating rates, which resulted in an amount of net equity that is positively correlated to rising interest rates, subject to the impact of interest rate floors on certain of our floating rate loans. Our liabilities are generally currency and index-matched to each collateral asset, resulting in a net exposure to movements in benchmark rates that varies by currency silo based on the relative proportion of floating rate assets and liabilities. 67 The following table details our investment portfolio’s exposure to interest rates by currency as of March 31, 2025 (amounts in thousands): USD GBP EUR All Other (1) Floating rate loans (2)(3)(4)(5) $ 9,989,021 £ 2,248,036 € 2,222,792 $ 2,015,401 Floating rate portfolio financings (2)(4)(6) (7,398,825) (1,781,834) (1,625,280) (1,617,099) Floating rate corporate financings (7) (2,210,747) — — — Net floating rate exposure $ 379,449 £ 466,202 € 597,512 $ 398,302 Net floating rate exposure in USD (8) $ 379,449 $ 602,240 $ 646,270 $ 398,302 (1) Includes Australian Dollar, Canadian Dollar, Swedish Krona, and Swiss Franc currencies. (2) Our floating rate loans and related liabilities are currency and index-matched to the applicable benchmark rate relevant in each arrangement. (3) Excludes $1.5 billion of floating rate impaired loans. (4) Excludes $101.7 million of loan participations sold, as of March 31, 2025 . Our loan participations sold are structurally non-recourse and term-matched to the corresponding loans, and have no impact on our net floating rate exposure. (5) Our loan agreements generally require our borrowers to purchase interest rate caps, which mitigates our borrowers’ exposure to an increase in interest rates . (6) Includes amounts outstanding under secured debt, securitizations, and asset-specific debt. (7) Includes amounts outstanding under Term Loans and the senior secured notes due 2029 . In connection with the issuance of the senior secured notes due 2029 , we entered into an interest rate swap with a notional amount of $450.0 million to effectively convert our fixed rate exposure to floating rate exposure for such notes. (8) Represents the U.S. dollar equivalent as of March 31, 2025 . In addition to the risks related to fluctuations in cash flows and asset values associated with movements in interest rates, there is also the risk of non-performance on floating rate assets. In the case of a significant increase in interest rates, the cash flows of the collateral real estate assets may not be sufficient to pay debt service due under our loans, which may contribute to non-performance or, in severe cases, default. This risk is partially mitigated by our consideration of rising rate stress-testing during our underwriting process, which generally includes a requirement for our borrower to purchase an interest rate cap contract with an unaffiliated third party, provide an interest reserve deposit, and/or provide interest guarantees or other structural protections. During the three months ended March 31, 2025 , interest rate caps on $2.6 billion of performing loans, with a 3.7% weighted-average strike price, expired and 100% were replaced with new interest rate caps, with a weighted-average strike price of 3.8% , or interest guarantees 68 III. Our Results of Operations Operating Results The following table sets forth information regarding our consolidated results of operations for the three months ended March 31, 2025 and December 31, 2024 ($ in thousands, except per share data): Three Months Ended Change March 31, 2025 December 31, 2024 $ Income from loans and other investments Interest and related income $ 332,057 $ 386,676 $ (54,619) Less: Interest and related expenses 242,233 285,118 (42,885) Income from loans and other investments, net 89,824 101,558 (11,734) Revenue from real estate owned 37,033 11,826 25,207 Other income 90 1,064 (974) Total net revenues 126,947 114,448 12,499 Expenses Management and incentive fees 17,235 18,534 (1,299) General and administrative expenses 12,664 13,111 (447) Expenses from real estate owned 46,302 18,413 27,889 Other expenses — 5,663 (5,663) Total expenses 76,201 55,721 20,480 Increase in current expected credit loss reserve (49,505) (19,055) (30,450) Loss from unconsolidated entities (874) (2,748) 1,874 Income before income taxes 367 36,924 (36,557) Income tax provision (benefit) 718 (458) 1,176 Net (loss) income (351) 37,382 (37,733) Net income attributable to non-controlling interests (6) (192) 186 Net (loss) income attributable to Blackstone Mortgage Trust, Inc. $ (357) $ 37,190 $ (37,547) Net (loss) income per share of common stock, basic and diluted $ (0.00) $ 0.21 $ (0.21) Weighted-average shares of common stock outstanding, basic and diluted 172,004,888 173,488,888 (1,484,000) Dividends declared per share $ 0.47 $ 0.47 $ — Income from loans and other investments, net Income from loans and other investments, net decrease d $11.7 million during the three months ended March 31, 2025 compared to the three months ended December 31, 2024 . The decrease was primarily due to (i) a decrease in the weighted- average principal balance of our loan portfolio by $2.2 billion during the three months ended March 31, 2025 , and (ii) a decrease in average floating rate indices quarter-over-quarter. This was partially offset by a decrease in the weighted- average principal balance of our outstanding financing arrangements by $1.5 billion for the three months ended March 31, 2025 compared to the three months ended December 31, 2024 . Revenue from real estate owned Revenue from REO increased by $25.2 million during the three months ended March 31, 2025 compared to the three months ended December 31, 2024 . The increase was primarily due to the acquisition of four additional REO assets during the three months ended December 31, 2024 , with the three months ended March 31, 2025 reflecting the first full quarter of activity for these assets, as well as one additional REO asset acquired during the three months ended March 31, 2025 . 69 Other income Other income relates to origination, servicing, and other fees recognized in connection with our Agency Multifamily Lending Partnership. Other income decrease d by $974,000 during the three months ended March 31, 2025 compared to the three months ended December 31, 2024 , as a result of the referral of four loans pursuant to the Agency Multifamily Lending Partnership during the three months ended December 31, 2024 that were originated and sold by MTRCC, with no corresponding loan referrals during the three months ended March 31, 2025 . Expenses Expenses include management and incentive fees payable to our Manager, general and administrative expenses, expenses from real estate owned, and other expenses. Expenses increase d by $20.5 million during the three months ended March 31, 2025 compared to the three months ended December 31, 2024 primarily due to a $27.9 million increase in expenses from real estate owned as a result of the acquisition of four additional REO assets during the three months ended December 31, 2024 , with the three months ended March 31, 2025 representing the first full quarter of activity for these assets, as well as the acquisition of one additional REO asset during the three months ended March 31, 2025 . This was partially offset by (i) a $5.7 million decrease in other expenses, which represents a contingent liability related to the sale of a loan that was recorded during the three months ended December 31, 2024 , and (ii) a $1.3 million decrease in management fees due to a decrease in Distributable Earnings. Changes in current expected credit loss reserve During the three months ended March 31, 2025 , we recorded a $49.5 million increase in our CECL reserves, as compared to a $19.1 million increase during the three months ended December 31, 2024 . The increase during the three months ended March 31, 2025 is primarily due to: (i) an increase in our general CECL reserves 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 , and (ii) 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. 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. These increases were partially offset by a reversal of the asset-specific CECL reserve as a result of the resolution of one impaired loan above our carrying value, as well as a net decrease in asset-specific CECL reserves on existing impaired loans. We may be required to record further increases to our CECL reserves in the future, depending on the performance of our portfolio and broader market conditions, and there may be volatility in the level of our CECL reserves. In particular, our loans secured by office buildings have experienced higher levels of CECL reserves and may continue to do so if market conditions relevant to office buildings do not improve. Any such reserve increases are difficult to predict, but are expected to be primarily the result of incremental loan impairments resulting from changes in the specific credit quality factors of such loans and to be concentrated in our loans receivable with a risk rating of “4” as of March 31, 2025 . Loss from unconsolidated entities During the three months ended March 31, 2025 , we recorded an $874,000 loss from unconsolidated entities compared to a $2.7 million loss during the three months ended December 31, 2024 . This decrease was primarily due to start-up costs incurred during the during the three months ended December 31, 2024 , as well as income generated from new investments during the three months ended March 31, 2025 . Income tax provision The income tax provision increased by $1.2 million during the three months ended March 31, 2025 compared to the three months ended December 31, 2024 primarily due to a tax refund received in the prior period. Dividends per share During the three months ended March 31, 2025 , we declared dividends of $ 0.47 per share, or $80.6 million in aggregate. During the three months ended December 31, 2024 , we declared dividends of $ 0.47 per share, or $81.2 million in aggregate. 70 The following table sets forth information regarding our consolidated results of operations for the three months ended March 31, 2025 and 2024 ($ in thousands, except per share data): Three Months Ended March 31, Change 2025 2024 $ Income from loans and other investments Interest and related income $ 332,057 $ 486,122 $ (154,065) Less: Interest and related expenses 242,233 343,730 (101,497) Income from loans and other investments, net 89,824 142,392 (52,568) Revenue from real estate owned 37,033 — 37,033 Other income 90 — 90 Gain on extinguishment of debt — 2,963 (2,963) Total net revenues 126,947 145,355 (18,408) Expenses Management and incentive fees 17,235 18,927 (1,692) General and administrative expenses 12,664 13,728 (1,064) Expenses from real estate owned 46,302 — 46,302 Total expenses 76,201 32,655 43,546 Increase in current expected credit loss reserve (49,505) (234,868) 185,363 Loss from unconsolidated entities (874) — (874) Income (loss) before income taxes 367 (122,168) 122,535 Income tax provision 718 1,002 (284) Net loss (351) (123,170) 122,819 Net income attributable to non-controlling interests (6) (668) 662 Net loss attributable to Blackstone Mortgage Trust, Inc. $ (357) $ (123,838) $ 123,481 Net loss per share of common stock, basic and diluted $ (0.00) $ (0.72) $ 0.72 Weighted-average shares of common stock outstanding, basic and diluted 172,004,888 174,041,630 (2,037) Dividends declared per share $ 0.47 $ 0.62 $ (0.15) Income from loans and other investments, net Income from loans and other investments, net decreased $52.6 million during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 . The decrease was primarily due to (i) a decrease in the weighted- average principal balance of our loan portfolio by $5.4 billion during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 , (ii) a decline in interest income related to additional loans accounted for under the cost-recovery method during the three months ended March 31, 2025 , and (iii) a decrease in average floating rate indices during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 . This was offset by a decrease in the weighted-average principal balance of our outstanding financing arrangements by $3.9 billion during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 . Revenue from real estate owned Revenue from REO increased by $37.0 million during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 due to the acquisition of seven additional REO assets . Gain on extinguishment of debt Gain on extinguishment of debt de creased by $3.0 million during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 . There was no debt repurchase activity during the three months ended March 31, 2025 . During the three months ended March 31, 2024 we recognized a gain on extinguishment of debt of $3.0 million related to 71 the repurchase of an aggregate principal amount of $26.2 million of our senior secured notes due 2027 at a weighted- average price of 88% . Expenses Expenses include management and incentive fees payable to our Manager, general and administrative expenses, expenses from real estate owned, and other expenses. Expenses increased by $43.5 million during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 , primarily due to $46.3 million of expenses from real estate owned, which relates to REO operating expenses and amortization and depreciation of REO assets. The increase was due to the acquisition of seven additional REO assets. We did not incur any expenses from REO during the three months ended March 31, 2024 . This was partially offset by a $1.7 million decrease in management fees payable to our Manager, driven primarily by lower Distributable Earnings, as well as a $1.1 million decrease in general and administrative expenses primarily due to a $1.1 million decrease in non-cash restricted stock amortization related to shares awarded under our long- term incentive plans. Changes in current expected credit loss reserve During the three months ended March 31, 2025 , we recorded a $49.5 million increase in our CECL reserves, as compared to a $234.9 million increase during the three months ended March 31, 2024 . The increase during the three months ended March 31, 2025 is primarily due to: (i) an increase in our general CECL reserves 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 , and (ii) 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. 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. These increases were partially offset by a reversal of the asset-specific CECL reserve as a result of the resolution of one impaired loan above our carrying value, as well as a net decrease in asset-specific CECL reserves on existing impaired loans. We may be required to record further increases to our CECL reserves in the future, depending on the performance of our portfolio and broader market conditions, and there may be volatility in the level of our CECL reserves. In particular, our loans secured by office buildings have experienced higher levels of CECL reserves and may continue to do so if market conditions relevant to office buildings do not improve. Any such reserve increases are difficult to predict, but are expected to be primarily the result of incremental loan impairments resulting from changes in the specific credit quality factors of such loans and to be concentrated in our loans receivable with a risk rating of “4” as of March 31, 2025 . Loss from unconsolidated entities Loss from unconsolidated entities of $874,000 represents our share of the loss incurred by our Net Lease Joint Venture . There was no income or loss from unconsolidated entities during the three months ended March 31, 2024 . Income tax provision The income tax provision decreased by $284,000 during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 , due to a decrease in the income tax provisions related to our taxable REIT subsidiaries. Dividends per share During the three months ended March 31, 2025 , we declared dividends of $0.47 per share, or $80.6 million in aggregate. During the three months ended March 31, 2024 , we declared dividends of $0.62 per share, or $107.7 million in aggregate. IV. Liquidity and Capital Resources Capitalization We have capitalized our business to date primarily through the issuance and sale of shares of our class A common stock, corporate debt, and asset-level financings. As of March 31, 2025 , our capitalization structure included $3.7 billion of common equity, $2.8 billion of corporate debt, and $ 13.1 billion of asset-level financings. Our $2.8 billion of corporate 72 debt includes $1.8 billion of Term Loan borrowings, $785.3 million of Senior Secured Notes, and $266.2 million of Convertible Notes. Our $13.1 billion of asset-level financings includes $10.0 billion of secured debt, $2.6 billion of securitizations, and $494.1 million of asset-specific debt, all of which are structured to produce term, currency, and index matched funding with no margin call provisions based upon capital markets events. As of March 31, 2025 , we had $1.6 billion of liquidity that can be used to satisfy our short-term cash requirements and as working capital for our business. See Notes 7 , 8 , 9 , 10 , 11 , 12 , and 13 to our co nsolidated financial statements for additional details regarding our secured debt, securitized debt obligations, asset-specific debt, loan participations sold, Term Loans, Senior Secured Notes, and Convertible Notes, respectively. Debt-to-Equity Ratio and Total Leverage Ratio The following table presents our debt-to-equity ratio and total leverage ratio: March 31, 2025 December 31, 2024 Debt-to-equity ratios (1) Debt-to-equity ratio (2) 3.4x 3.5x Adjusted debt-to-equity ratio (3) 2.8x 3.0x Total leverage ratios (1) Total leverage ratio (4) 4.1x 4.0x Adjusted total leverage ratio (5) 3.4x 3.4x (1) The debt and leverage amounts included in the calculations above use gross outstanding principal balances, excluding any unamortized deferred financing costs and discounts. (2) Represents, in each case at period end, (i) total outstanding secured debt, asset-specific debt, Term Loans, Senior Secured Notes, and convertible notes, less cash, to (ii) total equity. (3) Represents, in each case at period end, (i) total outstanding secured debt, asset-specific debt, Term Loans, Senior Secured Notes, and convertible notes, less cash, to (ii) Adjusted Equity. Adjusted Equity is a non-GAAP financial measure. Refer to “Adjusted Debt-to-Equity Ratio and Adjusted Total Leverage Ratio” below for the definition of Adjusted Equity and a reconciliation to total equity. (4) Represents, in each case at period end, (i) total outstanding secured debt, securitizations, asset-specific debt, Term Loans, Senior Secured Notes, and convertible notes, less cash, to (ii) total equity. (5) Represents, in each case at period end, (i) total outstanding secured debt, securitizations, asset-specific debt, Term Loans, Senior Secured Notes, and convertible notes, less cash, to (ii) Adjusted Equity. Adjusted Equity is a non- GAAP financial measure. Refer to “Adjusted Debt-to-Equity Ratio and Adjusted Total Leverage Ratio” below for the definition of Adjusted Equity and a reconciliation to total equity. Adjusted Debt-to-Equity Ratio and Adjusted Total Leverage Ratio Our adjusted debt-to-equity and total leverage ratios are measures that are not prepared in accordance with GAAP, as they are calculated using Adjusted Equity, which we define as our total equity, excluding the aggregate CECL reserves on our loans receivable and unfunded loan commitments. We believe that Adjusted Equity provides meaningful information to consider in addition to our total equity determined in accordance with GAAP in the context of assessing our debt-to-equity and total leverage ratios. The adjusted debt-to-equity and total leverage ratios are metrics we use, in addition to our unadjusted debt-to-equity and total leverage ratios, when evaluating our capitalization structure, as Adjusted Equity excludes the unrealized impact of our CECL reserves, which may vary from quarter-to-quarter as our loan portfolio changes and market and economic conditions evolve. We believe these ratios, and therefore our Adjusted Equity, are useful financial metrics for existing and potential future holders of our class A common stock to consider when evaluating how our business is capitalized and the relative amount of leverage in our business. 73 Adjusted Equity does not represent our total equity and should not be considered as an alternate to GAAP total equity. In addition, our methodology for calculating Adjusted Equity may differ from methodologies employed by other companies to calculate the same or similar supplemental measures, and accordingly, our reported Adjusted Equity may not be comparable to the Adjusted Equity reported by other companies. The following table provides a reconciliation of Adjusted Equity to our GAAP total equity ($ in thousands): March 31, 2025 December 31, 2024 Total equity $ 3,688,718 $ 3,794,189 Add back: aggregate CECL reserves 754,176 746,495 Adjusted Equity $ 4,442,894 $ 4,540,684 Sources of Liquidity Our primary sources of liquidity include cash and cash equivalents, available borrowings under our secured debt facilities, and net receivables from servicers related to loan repayments, which are set forth in the following table ($ in thousands): March 31, 2025 December 31, 2024 Cash and cash equivalents $ 668,563 $ 323,483 Available borrowings under secured debt 915,741 1,111,206 Loan principal payments held by servicer, net (1) 327 74,313 $ 1,584,631 $ 1,509,002 (1) Represents loan principal payments held by our third-party servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle, net of the related secured debt balance. During the three months ended March 31, 2025 , we generated cash flow from operating activities of $100.5 million and received $1.8 billion from loan principal collections, sales proceeds, and cost-recovery proceeds. Furthermore, we are able to generate incremental liquidity through the replenishment provisions of certain of our CLOs, which allow us to replace a repaid loan in the CLO by increasing the principal amount of existing CLO collateral assets to maintain the aggregate amount of collateral assets in the CLO, and the related financing outstanding. We have access to further liquidity through public and private offerings of equity and debt securities, syndicated term loans, and similar transactions. To facilitate public offerings, in July 2022, we filed a shelf registration statement with the SEC that is effective for a term of three years and expires in July 2025. The amount of securities to be issued pursuant to this shelf registration statement was not specified when it was filed and there is no specific dollar limit on the amount of securities we may issue. The securities covered by this registration statement include: (i) class A common stock; (ii) preferred stock; (iii) depositary shares representing preferred stock; (iv) debt securities; (v) warrants; (vi) subscription rights; (vii) purchase contracts; and (viii) units consisting of one or more of such securities or any combination of these securities. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering materials, at the time of any offering. We may also access liquidity through our dividend reinvestment plan and direct stock purchase plan, under which 9,968,032 shares of class A common stock were available for issuance as of March 31, 2025 , and our at the market stock offering program, pursuant to which we may sell, from time to time, up to $480.9 million of additional shares of our class A common stock as of March 31, 2025 . Refer to Note 15 to our consolidated financial statements for additional details. Uses of Liquidity In addition to funding our lending and other investment activity and our general operating expenses, our primary uses of liquidity include interest and principal payments with respect to our $10.0 billion of outstanding borrowings under secured debt, our asset-specific debt, our Term Loans, our Senior Secured Notes, and our Convertible Notes. In July 2024, our board of directors authorized the repurchase of up to $150.0 million of our class A common stock. Under the repurchase program, repurchases may be made from time to time in open market transactions, in privately negotiated transactions, in agreements and arrangements structured in a manner consistent with Rules 10b-18 and 10b5-1 under the 74 Exchange Act or otherwise. The timing and the actual amounts repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be changed, suspended or discontinued at any time and does not have a specified expiration date. During the three months ended March 31, 2025 , we repurchased 1,792,836 shares of class A common stock at a weighted- average price per share of $17.63 , for a total cost of $31.6 million . As of March 31, 2025 , the amount remaining available for repurchases under the program was $89.2 million . From time to time we have repurchased and may continue to repurchase our outstanding debt or shares of our class A common stock. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions, and other factors. The amounts involved in any such purchase transactions, individually or in the aggregate, may be material. As of March 31, 2025 , we had unfunded commitments of $1.0 billion related to 57 loans receivable and $520.2 million of committed or identified financing for those commitments resulting in net unfunded commitments of $513.0 million . The unfunded loan commitments comprise funding for capital expenditures and construction, leasing costs, and interest and carry costs. Loan funding commitments are generally subject to certain conditions, including, without limitation, the progress of capital projects, leasing, and cash flows at the properties securing our loans. Therefore, the exact timing and amounts of such future loan fundings are uncertain and will depend on the current and future performance of the underlying collateral assets. We expect to fund our loan commitments over the remaining term of the related loans, which have a weighted-average future funding period of 2.3 years . 75 Contractual Obligations and Commitments Our contractual obligations and commitments as of March 31, 2025 were as follows ($ in thousands): Payment Timing Total Obligation Less Than 1 Year (1) 1 to 3 Years 3 to 5 Years More Than 5 Years Unfunded loan commitments (2) $ 1,033,229 $ 299,708 $ 349,070 $ 384,451 $ — Principal repayments under secured debt (3) 10,011,541 1,456,545 6,509,208 2,044,905 883 Principal repayments under asset-specific debt (3) 494,081 — — 494,081 — Principal repayments of term loans (4) 1,760,748 14,759 338,784 1,407,205 — Principal repayments of senior secured notes 785,316 — 335,316 450,000 — Principal repayments of convertible notes (5) 266,157 — 266,157 — — Interest payments (3)(6) 2,113,594 805,088 982,604 325,896 6 Total (7) $ 16,464,666 $ 2,576,100 $ 8,781,139 $ 5,106,538 $ 889 (1) Represents known and estimated short-term cash requirements related to our contractual obligations and commitments. Refer to “Sources of Liquidity” above for information about our sources of funds to satisfy our short- term cash requirements. (2) The allocation of our unfunded loan commitments is based on the earlier of the commitment expiration date or the final loan maturity date, however we may be obligated to fund these commitments earlier than such date. (3) Our secured debt and asset-specific debt agreements are generally term-matched to their underlying collateral. Therefore, the allocation of both principal and interest payments under such agreements is generally allocated based on the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. In limited instances, the maturity date of the respective debt agreement is used. (4) The Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the initial principal balance due in quarterly installments. Refer to Note 11 to our consolidated financial statements for further details on our Term Loans. (5) Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer to Note 13 to our consolidated financial statements for further details on our Convertible Notes. (6) Represents interest payments on our secured debt, asset-specific debt, Term Loans, Senior Secured Notes, and convertible notes. Future interest payment obligations are estimated assuming the interest rates in effect as of March 31, 2025 will remain constant into the future. This is only an estimate as actual amounts borrowed and interest rates will vary over time. (7) Total does not include $2.6 billion of consolidated securitized debt obligations, $845.8 million of non-consolidated senior interests, and $101.7 million of loan participations sold, as the satisfaction of these liabilities will not require cash outlays from us. We are also required to settle our foreign exchange and interest rate derivatives with our derivative counterparties upon maturity which, depending on foreign currency exchange and interest rate movements, may result in cash received from or due to such counterparties. The table above does not include these amounts as they are not fixed and determinable. Refer to Note 14 to our consolidated financial statements for details regarding our derivative contracts. We are required to pay our Manager a base management fee, an incentive fee, and reimbursements for certain expenses pursuant to our Management Agreement. The table above does not include the amounts payable to our Manager under our Management Agreement as they are not fixed and determinable. Refer to Note 16 to our consolidated financial statements for additional terms and details of the fees payable under our Management Agreement. As a REIT, we generally must distribute substantially all of our net taxable income to stockholders in the form of dividends to comply with the REIT provisions of the Internal Revenue Code. Our taxable income does not necessarily equal our net income as calculated in accordance with GAAP, or our Distributable Earnings as described above. 76 Cash Flows The following table provides a breakdown of the net change in our cash and cash equivalents ($ in thousands): Three Months Ended March 31, 2025 2024 Cash flows provided by operating activities $ 100,516 $ 94,610 Cash flows provided by investing activities 260,939 376,316 Cash flows used in financing activities (18,142) (404,343) Net (decrease) increase in cash and cash equivalents $ 343,313 $ 66,583 We experienced a net increase in cash and cash equivalents of $343.3 million for the three months ended March 31, 2025 , compared to a net increase of $66.6 million for the three months ended March 31, 2024 . During the three months ended March 31, 2025 , we (i) received $1.8 billion from loan principal collections and sales proceeds, (ii) received $831.3 million of net proceeds from the issuance of a securitized debt obligation, and (iii) received a net $124.4 million under our secured debt borrowings . Also, during the three months ended March 31, 2025 , we (i) funded $1.7 billion of loans, (ii) repaid a net $732.3 million of asset-specific financings, and (iii) paid $81.2 million of dividends on our class A common stock. Refer to Note 3 to our consolidated financial statements for further discussion of our loan activity. Refer to Notes 7 , 8 , and 15 to our consolidated financial statements for additional discussion of our secured debt, securitized debt obligations, and equity, respectively. V. Other Items Income Taxes We have elected to be taxed as a REIT under the Internal Revenue Code for U.S. federal income tax purposes. We generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings. To the extent that we satisfy this distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws. Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Internal Revenue Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to the nature of our assets and the sources of our income. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full taxable years. As of March 31, 2025 and December 31, 2024 , we were in compliance with all REIT requirements. Furthermore, our taxable REIT subsidiaries are subject to federal, state, and local income tax on their net taxable income. Refer to Note 17 to our consolidated financial statements for additional discussion of our income taxes. Critical Accounting Policies Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires our Manager to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. During 2025 , our Manager reviewed and evaluated our critical accounting policies and believes them to be appropriate. The following is a summary of our significant accounting policies that we believe are the most affected by our Manager’s judgments, estimates, and assumptions : 77 Current Expected Credit Losses The current expected credit loss, or CECL, reserve required under the FASB Accounting Standards Codification, or ASC, Topic 326 “Financial Instruments – Credit Losses,” or ASC 326, reflects our current estimate of potential credit losses related to our portfolio. We estimate our CECL reserves primarily using the Weighted-Average Remaining Maturity, or WARM method, which has been identified as an acceptable loss-rate method for estimating CECL reserves in the Financial Accounting Standards Board Staff Q&A Topic 326, No. 1. Estimating the CECL reserve requires judgment, including the following assumptions: • Historical loan loss reference data : 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 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. • Expected timing and amount of future loan fundings and repayments : Expected credit losses are estimated over the contractual term of each loan, adjusted for expected repayments. As part of our quarterly review of our loan portfolio, we assess the expected repayment date of each loan, which is used to determine the contractual term for purposes of computing our CECL reserves. Additionally, the expected credit losses over the contractual period of our loans are subject to the obligation to extend credit through our unfunded loan commitments. The CECL reserve for unfunded loan commitments is adjusted quarterly, as we consider the expected timing of future funding obligations over the estimated life of the loan. The considerations in estimating our CECL reserve for unfunded loan commitments are similar to those used for the related outstanding loans receivable. • Current credit quality of our portfolio : Our risk rating is our primary credit quality indicator in assessing our CECL reserves. 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. • Expectations of performance and market conditions : Our CECL reserves are 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 March 31, 2025 . • Impairment : impairment is indicated when it is deemed probable that we will not be able to collect all amounts due to us pursuant to the contractual terms of the loan. Determining that a loan is impaired requires significant judgment from management and is based on several factors including (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan. If a loan is determined to be impaired, we record the impairment as a component of our CECL reserves by applying the practical expedient for collateral dependent loans. The CECL reserves are assessed on an individual basis for these loans by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed relevant by us. Actual losses, if any, could ultimately differ materially from these estimates. We only expect to charge-off the impairment losses in our consolidated financial statements prepared in accordance with GAAP if and when such amounts are deemed non- recoverable. This is generally at the time a loan is repaid or foreclosed. However, non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected. These assumptions vary from quarter-to-quarter as our loan portfolio changes and market and economic conditions evolve. The sensitivity of each assumption and its impact on the CECL reserves may change over time and from period to period. 78 During the three months ended March 31, 2025 , our CECL reserves increase d by $7.7 million , bringing our total reserves to $754.2 million as of March 31, 2025 . See Notes 2 and 3 to our consolidated financial statements for further discussion of our CECL reserves. Revenue Recognition Interest income from our loans receivable portfolio is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these investments is deferred and recorded over the term of the loan as an adjustment to yield. Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in our opinion, recovery of income and principal becomes doubtful. Interest received is then recorded as income or as a reduction in the amortized cost basis, based on the specific facts and circumstances, until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses are deferred and recognized as a reduction to interest income, however expenses related to loans we acquire are included in general and administrative expenses as incurred. Real Estate Owned 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. These real estate acquisitions are classified as real estate owned, or REO, on our consolidated balance sheet and are initially recognized at fair value on the acquisition date in accordance with the ASC Topic 805, “Business Combinations.” Upon acquisition of REO, we assess the fair value of acquired tangible and intangible assets, which may include land, buildings, tenant improvements, “above-market” and “below-market” leases, acquired in-place leases, other identified intangible assets and assumed liabilities, as applicable, and allocate the fair value to the acquired assets and assumed liabilities. We assess and consider fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that we deem appropriate, as well as other available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends, and market and economic conditions. We capitalize acquisition-related costs associated with asset acquisitions. Real estate assets held for investment, except for land, are depreciated using the straight-line method over the assets’ estimated useful lives of up to 40 years for buildings and 10 years for tenant improvements. Renovations and/or replacements that improve or extend the life of the asset are capitalized and depreciated over their estimated useful lives. Lease intangibles are amortized over the remaining term of applicable leases on a straight-line basis. The cost of ordinary repairs and maintenance are expensed as incurred. Real estate assets held for investment are assessed for impairment on a quarterly basis. If the depreciated cost basis of the asset exceeds the undiscounted cash flows over the remaining holding period, the asset is considered for impairment. The impairment loss is recognized when the carrying value of the real estate assets exceed their fair value. The evaluation of anticipated future cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates, capital requirements and anticipated holding periods that could differ materially from actual results. Real estate assets are classified as held for sale in the period when they meet the criteria under ASC Topic 360 “Property, Plant, and Equipment.” Once a real estate asset is classified as held for sale, depreciation is suspended and the asset is reported at the lower of its carrying value or fair value less cost to sell. If circumstances arise and we decide not to sell a real estate asset previously classified as held for sale, the real estate asset is reclassified as held for investment. Upon reclassification, the real estate asset is measured at the lower of (i) its carrying amount prior to classification as held for sale, adjusted for depreciation expense that would have been recognized had the real estate been classified as held for investment, and (ii) its estimated fair value at the time of reclassification. As of March 31, 2025 , we had eight REO assets which were all classified as held for investment . 79 VI. Loan Portfolio Details The following table provides details of our loan portfolio, on a loan-by-loan basis, as of March 31, 2025 ($ in millions): Senior Loan Portfolio (1) Property Type Location Origination Date (2) Total Commitment (3) Principal Balance Net Book Value (4) Cash Coupon (5) All-in Yield (5) Maximum Maturity (6) Loan Per SQFT / Unit / Key Origination LTV (2) Risk Rating 1 Mixed-Use Dublin, IE 8/14/2019 $ 972 $ 913 $ 910 +3.20 % +3.95 % 1/29/2027 $267 / sqft 74 % 3 2 Hospitality Diversified, AU 6/24/2022 827 827 822 +4.75 % +5.07 % 6/21/2029 $376 / sqft 59 % 3 3 Mixed-Use Diversified, Spain 3/22/2018 529 529 529 +3.25 % +3.31 % 3/15/2026 n / a 71 % 4 4 Multifamily New York 7/23/2021 480 475 474 +3.60 % +4.04 % 8/9/2027 $637,813 / unit 58 % 2 5 Industrial Diversified, SE 3/30/2021 475 475 473 +3.20 % +3.41 % 5/15/2026 $91 / sqft 76 % 2 6 Self-Storage Diversified, CAN 2/20/2025 434 434 434 +3.50 % +3.50 % 2/9/2030 $151 / sqft 58 % 3 7 Mixed-Use Austin 6/28/2022 675 421 415 +4.60 % +5.07 % 7/9/2029 $349 / sqft 53 % 3 8 Mixed-Use New York 12/9/2021 385 380 380 +2.76 % +3.00 % 12/9/2026 $130 / sqft 50 % 2 9 Hospitality Diversified, EUR 7/15/2021 315 315 315 +4.25 % +4.76 % 7/16/2026 $240,739 / key 53 % 3 10 Multifamily London, UK 12/23/2021 333 313 308 +4.25 % +4.96 % 6/24/2028 $345,959 / unit 59 % 3 11 Office Chicago 12/11/2018 356 304 305 +1.75 % +1.76 % 12/9/2026 $254 / sqft 78 % 4 12 Industrial Diversified, UK 5/6/2022 295 295 294 +3.50 % +3.79 % 5/6/2027 $93 / sqft 53 % 2 13 Office Washington, DC 9/29/2021 293 288 287 +2.81 % +3.07 % 10/9/2026 $375 / sqft 66 % 2 14 Hospitality New York 11/30/2018 286 286 247 +2.43 % +2.43 % 8/9/2025 $306,870 / key n/m 5 15 Multifamily Dallas 9/30/2021 277 277 277 +2.61 % +2.88 % 9/30/2026 $146,437 / unit 74 % 3 16 Other Diversified, UK 1/11/2019 276 276 276 +5.13 % +5.06 % 6/14/2028 $273 / sqft 74 % 3 17 Multifamily New York 2/27/2020 273 270 269 +2.70 % +2.83 % 1/9/2027 $709,360 / unit 59 % 3 18 Office London, UK 3/17/2022 280 262 262 (7) +2.85 % +3.00 % 6/30/2025 $819 / sqft 50 % 3 19 Office Seattle 1/26/2022 338 257 255 +4.10 % +4.74 % 2/9/2027 $538 / sqft 56 % 3 20 Multifamily Dallas 9/14/2021 255 255 255 +2.61 % +2.86 % 9/14/2026 $206,610 / unit 72 % 3 21 Office New York 4/11/2018 243 243 241 +2.25 % +2.62 % 3/7/2028 $308 / sqft 52 % 4 22 Multifamily Reno 2/23/2022 245 235 234 +2.60 % +2.84 % 3/9/2027 $217,893 / unit 74 % 3 23 Multifamily London, UK 7/16/2021 236 227 226 +3.25 % +3.51 % 2/15/2027 $232,737 / unit 69 % 3 24 Mixed-Use New York 12/22/2016 252 222 216 +10.50 % +10.50 % 6/9/2028 $313 / sqft n/m 5 25 Office London, UK 6/28/2019 212 212 212 +4.00 % +4.74 % 6/26/2026 $508 / sqft 71 % 3 26 Office Berlin, DEU 6/27/2019 207 207 207 +2.80 % +2.93 % 8/15/2026 $436 / sqft 62 % 4 27 Industrial London, UK 7/29/2022 205 199 199 +4.60 % +5.60 % 7/27/2027 $263 / sqft 52 % 3 28 Industrial Diversified, UK 3/28/2025 198 198 196 +2.45 % +2.74 % 3/28/2030 $124 / sqft 69 % 3 29 Multifamily Boca Raton 9/30/2021 195 195 195 (7) +7.96 % +7.96 % 10/9/2026 $396,175 / unit 58 % 3 30 Office New York 7/23/2021 244 184 184 -1.30 % (8) -0.92 % 8/9/2028 $596 / sqft 53 % 4 80 Senior Loan Portfolio (1) Property Type Location Origination Date (2) Total Commitment (3) Principal Balance Net Book Value (4) Cash Coupon (5) All-in Yield (5) Maximum Maturity (6) Loan Per SQFT / Unit / Key Origination LTV (2) Risk Rating 31 Office Denver 2/15/2022 $ 191 $ 182 $ 168 +2.90 % +2.90 % 3/9/2027 $362 / sqft n/m 5 32 Life Sciences Boston 5/13/2021 199 179 179 +3.66 % +3.92 % 6/9/2026 $910 / sqft 64 % 4 33 Multifamily Dallas 1/27/2022 178 178 178 +3.10 % +3.66 % 2/9/2027 $116,020 / unit 71 % 4 34 Retail Diversified, UK 3/9/2022 174 174 174 +2.95 % +3.17 % 8/15/2027 $148 / sqft 55 % 2 35 Industrial Diversified, US 2/13/2025 189 170 168 +3.10 % +3.48 % 3/9/2030 $712,605 / acre 62 % 3 36 Hospitality Diversified, Spain 9/30/2021 185 168 167 +4.00 % +4.67 % 9/30/2026 $144,944 / key 60 % 3 37 Office Atlanta 5/27/2021 184 163 162 +2.31 % +2.31 % 6/9/2026 $137 / sqft n/m 5 38 Industrial London, UK 12/21/2021 160 160 160 +2.83 % +3.15 % 4/29/2027 $324 / sqft 67 % 3 39 Mixed-Use New York 1/17/2020 203 158 158 +3.12 % +7.15 % 4/25/2025 $130 / sqft 43 % 3 40 Hospitality Los Angeles 3/7/2022 156 156 156 +3.45 % +3.66 % 6/9/2026 $624,000 / key 64 % 3 41 Hospitality New York 6/4/2018 153 153 153 +4.00 % +4.24 % 6/9/2025 $251,647 / key 52 % 2 42 Office Fort Lauderdale 1/7/2022 155 152 151 +3.70 % +3.94 % 1/9/2027 $392 / sqft 55 % 1 43 Self-Storage London, UK 11/18/2021 146 146 146 +3.25 % +3.51 % 11/18/2026 $181 / sqft 65 % 2 44 Office London, UK 12/20/2019 145 145 145 +3.22 % +3.22 % 4/18/2025 $736 / sqft n/m 5 45 Office Miami 12/10/2021 135 135 135 +3.11 % +3.36 % 1/9/2027 $452 / sqft 49 % 2 46 Multifamily Diversified, AU 1/10/2025 134 134 133 +3.85 % +4.52 % 1/10/2028 $404,550 / unit 76 % 3 47 Multifamily Dublin, IE 12/15/2021 136 134 134 +2.75 % +3.00 % 12/9/2026 $335,410 / unit 79 % 3 48 Office San Jose 8/24/2021 156 133 133 +2.71 % +2.98 % 9/9/2026 $318 / sqft 65 % 4 49 Office Diversified, UK 11/23/2018 129 129 128 +3.50 % +3.74 % 11/15/2029 $952 / sqft 50 % 3 50 Multifamily San Bernardino 9/14/2021 128 127 127 +2.81 % +3.05 % 10/9/2026 $255,362 / unit 75 % 3 51 Office Miami 3/28/2022 130 127 126 +2.55 % +2.80 % 4/9/2027 $334 / sqft 69 % 3 52 Office San Jose 5/20/2021 150 126 109 +8.76 % +8.76 % 8/9/2025 $323 / sqft n/m 5 53 Multifamily Miami 11/27/2024 125 125 124 +2.80 % +3.17 % 12/9/2029 $260,417 / unit 71 % 3 54 Retail San Diego 8/27/2021 122 121 121 +3.11 % +3.35 % 9/9/2026 $459 / sqft 58 % 3 55 Multifamily Miami 6/1/2021 120 120 120 +2.96 % +3.11 % 6/9/2026 $298,507 / unit 61 % 2 56 Hospitality Napa Valley 4/29/2022 118 118 118 +3.50 % +3.77 % 2/18/2027 $1,240,799 / key 66 % 3 57 Office Houston 7/15/2019 136 116 115 +3.01 % +3.22 % 8/9/2028 $209 / sqft 58 % 4 58 Multifamily Diversified, UK 3/29/2021 112 112 112 +4.02 % +4.28 % 3/29/2026 $48,954 / unit 61 % 3 59 Multifamily Phoenix 12/29/2021 110 110 110 +2.85 % +3.02 % 1/9/2027 $189,003 / unit 64 % 3 60 Mixed-Use New York 3/10/2020 109 109 109 +3.00 % +3.00 % 7/11/2029 $666 / sqft 48 % 3 81 Senior Loan Portfolio (1) Property Type Location Origination Date (2) Total Commitment (3) Principal Balance Net Book Value (4) Cash Coupon (5) All-in Yield (5) Maximum Maturity (6) Loan Per SQFT / Unit / Key Origination LTV (2) Risk Rating 61 Hospitality Honolulu 3/13/2018 $ 108 $ 108 $ 108 +3.11 % +3.36 % 4/9/2027 $166,803 / key 50 % 3 62 Hospitality Diversified, Spain 9/23/2019 113 107 107 +3.50 % +3.65 % 8/16/2027 $124,521 / key 62 % 2 63 Studio Los Angeles 6/28/2019 106 106 105 +3.75 % +4.03 % 2/1/2026 $531 / sqft 48 % 3 64 Multifamily Tampa 2/15/2022 106 106 105 +2.85 % +3.11 % 3/9/2027 $241,972 / unit 73 % 2 65 Office Orange County 8/31/2017 105 105 105 +2.62 % +2.62 % 9/9/2026 $162 / sqft 58 % 4 66 Office Minneapolis 11/27/2019 104 102 98 +7.86 % +7.86 % 7/9/2025 $93 / sqft n/m 5 67 Office Chicago 9/30/2021 100 100 100 5.00 % 5.00 % 10/9/2029 $111 / sqft 43 % 4 68 Hospitality Honolulu 1/30/2020 99 99 99 +3.50 % +3.55 % 2/9/2027 $270,109 / key 63 % 3 69 Industrial New York 6/18/2021 99 99 98 +2.71 % +2.95 % 7/9/2026 $51 / sqft 55 % 1 70 Multifamily Miami 3/29/2022 97 97 98 +1.80 % +2.69 % 4/9/2027 $271,118 / unit 75 % 4 71 Multifamily San Antonio 3/20/2025 97 97 96 +2.80 % +3.16 % 4/9/2030 $449,074 / unit 72 % 3 72 Multifamily Phoenix 10/1/2021 97 97 97 +1.86 % +2.79 % 10/1/2026 $223,410 / unit 77 % 4 73 Multifamily Philadelphia 10/28/2021 96 96 95 +3.00 % +3.24 % 11/9/2026 $352,399 / unit 79 % 3 74 Multifamily Orlando 10/27/2021 93 93 93 +2.61 % +2.81 % 11/9/2026 $155,612 / unit 75 % 3 75 Multifamily Seattle 9/13/2024 94 93 92 +3.25 % +4.11 % 11/9/2027 $500,796 / unit 68 % 3 76 Multifamily Diversified, NL 3/27/2025 93 93 92 +2.70 % +2.97 % 3/31/2028 $111,552 / unit 62 % 2 77 Hospitality Boston 3/3/2022 92 92 92 +2.75 % +2.99 % 3/9/2027 $418,182 / key 64 % 2 78 Office Washington, DC 12/21/2021 103 92 92 +2.70 % +2.94 % 1/9/2027 $315 / sqft 68 % 3 79 Industrial Diversified, BE 3/7/2025 102 90 89 +2.75 % +3.32 % 3/7/2030 $38 / sqft 57 % 3 80 Hospitality San Francisco 10/16/2018 88 88 88 +7.36 % +7.36 % 5/9/2025 $191,807 / key n/m 5 81 Mixed-Use San Francisco 6/14/2022 106 88 88 +2.95 % +3.84 % 7/9/2027 $182 / sqft 76 % 4 82 Multifamily St. Louis 6/25/2021 85 85 86 +2.86 % +3.10 % 7/1/2026 $80,339 / unit 70 % 2 83 Multifamily Charlotte 7/29/2021 82 82 82 +2.76 % +3.01 % 8/9/2026 $223,735 / unit 78 % 3 84 Multifamily Melbourne, AU 12/15/2021 81 81 81 +3.25 % +3.54 % 12/15/2026 $59,452 / unit 38 % 1 85 Hospitality Diversified, US 8/27/2021 79 78 78 +4.35 % +4.59 % 9/9/2026 $116,529 / key 67 % 3 86 Multifamily Tampa 12/21/2021 74 74 74 +2.70 % +2.94 % 1/9/2027 $217,353 / unit 77 % 3 87 Industrial Dublin, IE 8/17/2022 77 73 72 +3.35 % +3.83 % 8/17/2027 $113 / sqft 72 % 3 88 Multifamily Tacoma 10/28/2021 69 69 69 +2.66 % +2.86 % 11/9/2026 $209,864 / unit 70 % 3 89 Hospitality London, UK 8/16/2022 69 69 68 +4.75 % +5.19 % 8/16/2027 $507,151 / key 64 % 3 90 Multifamily Las Vegas 3/31/2022 70 65 65 +2.80 % +3.14 % 4/9/2027 $143,130 / unit 71 % 3 82 Senior Loan Portfolio (1) Property Type Location Origination Date (2) Total Commitment (3) Principal Balance Net Book Value (4) Cash Coupon (5) All-in Yield (5) Maximum Maturity (6) Loan Per SQFT / Unit / Key Origination LTV (2) Risk Rating 91 Multifamily Salt Lake City 7/30/2021 $ 62 $ 62 $ 62 +2.86 % +3.06 % 8/9/2026 $224,185 / unit 73 % 3 92 Office Los Angeles 4/6/2021 62 62 62 6.00 % 6.00 % 1/9/2030 $254 / sqft 65 % 3 93 Office Nashville 6/30/2021 65 61 61 +2.95 % +3.20 % 7/9/2026 $252 / sqft 71 % 4 94 Hospitality Bermuda 4/26/2024 69 61 61 +4.95 % +5.62 % 5/9/2029 $693,780 / key 39 % 2 95 Office Fort Lauderdale 12/10/2020 61 60 60 +3.30 % +3.54 % 1/9/2026 $209 / sqft 68 % 3 96 Multifamily Phoenix 12/17/2021 58 58 58 +2.65 % +2.85 % 1/9/2027 $209,601 / unit 69 % 3 97 Office Miami 6/14/2021 58 58 58 +2.30 % +2.30 % 3/9/2027 $122 / sqft 65 % 3 98 Multifamily Atlanta 3/6/2025 55 55 55 +2.75 % +3.11 % 3/9/2030 $187,075 / unit 66 % 3 99 Industrial Minneapolis 12/12/2024 61 55 54 +2.85 % +3.23 % 1/9/2030 $77 / sqft 59 % 3 100 Office Denver 8/5/2021 56 54 54 +2.96 % +3.21 % 8/9/2026 $205 / sqft 70 % 3 101 Industrial Diversified, US 12/14/2018 54 54 54 +3.01 % +3.35 % 1/9/2026 $40 / sqft 57 % 1 102 Multifamily Los Angeles 7/28/2021 53 53 53 +2.75 % +2.99 % 8/9/2026 $303,097 / unit 71 % 3 103 Office Los Angeles 8/22/2019 53 53 53 +2.66 % +2.91 % 3/9/2027 $306 / sqft 63 % 4 104 Self-Storage Diversified, US 2/18/2025 53 53 52 +3.10 % +3.47 % 3/9/2030 $92 / sqft 67 % 3 105 Office Denver 4/7/2022 57 52 52 +3.25 % +3.48 % 4/9/2027 $152 / sqft 59 % 3 106 Multifamily Denver 3/19/2025 51 51 51 +2.60 % +2.92 % 5/9/2030 $221,739 / unit 64 % 3 107 Hospitality Waimea 2/27/2025 50 50 50 +2.80 % +2.92 % 2/9/2030 $823,353 / key 52 % 3 108 Multifamily Los Angeles 7/20/2021 48 48 48 +2.86 % +3.11 % 8/9/2026 $366,412 / unit 60 % 3 109 Retail Chicago 11/30/2016 55 46 46 +3.33 % +3.82 % 12/9/2025 $804 / sqft 54 % 4 110 Multifamily Columbus 12/8/2021 48 44 44 +2.75 % +2.96 % 12/9/2026 $143,150 / unit 69 % 2 111 Multifamily Dallas 12/29/2021 43 43 43 +3.05 % +3.24 % 1/1/2027 $144,167 / unit 73 % 3 112 Multifamily Las Vegas 7/29/2021 42 42 42 +2.86 % +3.06 % 8/9/2026 $167,113 / unit 72 % 2 113 Multifamily Las Vegas 3/31/2022 42 38 38 +2.80 % +3.15 % 4/9/2027 $150,072 / unit 72 % 3 114 Multifamily Austin 2/26/2021 36 36 36 +3.50 % +3.74 % 3/9/2026 $196,228 / unit 64 % 1 115 Multifamily New York 12/23/2021 35 35 35 +1.71 % +2.61 % 11/15/2025 $172,182 / unit 68 % 1 116 Multifamily Los Angeles 3/1/2022 35 35 35 +3.00 % +3.24 % 3/9/2027 $372,340 / unit 72 % 3 117 Multifamily Corvallis 12/23/2021 35 35 35 +2.76 % +2.96 % 4/26/2025 $96,493 / unit 71 % 1 118 Office New York 12/23/2021 35 35 35 +3.11 % +3.33 % 2/1/2026 $247 / sqft 30 % 2 119 Multifamily Chicago 11/19/2020 38 32 32 +3.50 % +3.76 % 12/9/2025 $184,388 / unit 53 % 1 120 Multifamily Atlanta 11/3/2021 32 32 32 +2.71 % +2.96 % 11/9/2026 $182,093 / unit 53 % 3 83 Senior Loan Portfolio (1) Property Type Location Origination Date (2) Total Commitment (3) Principal Balance Net Book Value (4) Cash Coupon (5) All-in Yield (5) Maximum Maturity (6) Loan Per SQFT / Unit / Key Origination LTV (2) Risk Rating 121 Office Austin 4/15/2021 $ 36 $ 32 $ 32 +3.06 % +3.06 % 12/9/2029 $153 / sqft 40 % 4 122 Multifamily Charlotte 11/19/2020 28 28 28 +3.50 % +3.74 % 12/9/2025 $178,019 / unit 61 % 1 123 Multifamily Dallas 11/3/2021 27 27 27 +2.71 % +2.96 % 11/9/2026 $160,023 / unit 57 % 2 124 Multifamily Melbourne, AU 8/26/2022 26 26 26 +4.50 % +4.94 % 6/23/2029 $279,121 / unit 68 % 3 125 Office New York 2/21/2025 24 24 24 +3.25 % +3.52 % 3/9/2030 $775 / sqft 59 % 3 126 Hospitality Atlanta 10/1/2019 23 23 23 +3.80 % +4.03 % 10/9/2025 $129,442 / key 74 % 3 127 Multifamily Las Vegas 8/4/2021 22 22 22 +2.86 % +3.13 % 8/9/2026 $180,000 / unit 73 % 3 128 Multifamily St. Louis 6/25/2021 12 12 11 +2.86 % +3.10 % 7/1/2026 $21,273 / unit 63 % 1 Subtotal: Senior loan portfolio $ 19,537 $ 18,593 $ 18,464 +3.32 +3.68 2.2 yrs 63 % 3.0 84 Subordinate Loan Portfolio (9) Property Type Location Origination Date (2) Total Commitment (3) Principal Balance Net Book Value (4) Cash Coupon (5) All-in Yield (5) Maximum Maturity (6) Loan Per SQFT / Unit / Key Origination LTV (2) Risk Rating 129 Office Chicago 9/30/2021 $ 143 $ 110 $ 110 (10) n/m n/m 10/9/2029 $260 / sqft n/m 5 130 Office Los Angeles 11/22/2019 122 105 105 +2.50 % +2.50 % 12/9/2027 $781 / sqft 69 % 4 131 Office New York 5/1/2018 102 102 86 (10) n/m n/m 3/7/2028 $466 / sqft n/m 5 132 Industrial Diversified, US 3/10/2025 60 60 60 +5.00 % +5.12 % 3/9/2030 $178 / sqft 70 % 3 133 Life Sciences San Francisco 11/10/2021 72 57 57 +8.71 % +8.86 % 12/9/2026 $528 / sqft 66 % 4 134 Office Orange County 8/31/2017 64 57 40 (10) n/m n/m 9/9/2026 $324 / sqft n/m 5 135 Multifamily Miami 3/29/2022 47 44 44 +8.70 % +9.52 % 4/9/2027 $374,250 / unit 72 % 3 136 Mixed-Use New York 3/10/2020 35 35 34 (10) n/m n/m 7/11/2029 $997 / sqft n/m 5 137 Multifamily Los Angeles 12/30/2021 46 30 30 +8.80 % +9.81 % 1/9/2028 $437,098 / unit 50 % 3 138 Office Austin 4/15/2021 24 24 20 (10) n/m n/m 12/9/2029 $269 / sqft n/m 5 Subtotal: subordinate loan portfolio $ 714 $ 625 $ 586 +5.76 +6.04 3.2 yrs 67 % 4.3 Subtotal: loans receivable portfolio $ 20,251 $ 19,218 $ 19,050 Total CECL reserve (742) Total loans receivable portfolio $ 20,251 $ 19,218 $ 18,308 +3.39 % +3.70 % 2.2 yrs 63 % 3.0 (1) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. (2) Date loan was originated or acquired by us, and the LTV as of such date, excluding any loans that are impaired and any junior participations sold. Origination dates are subsequently updated to reflect material loan modifications. (3) Total commitment reflects outstanding principal balance as well as any related unfunded loan commitment. (4) Net book value represents outstanding principal balance, net of purchase and sale discounts or premiums, exit fees, deferred origination expenses, and cost-recovery proceeds . (5) The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, CORRA, and other indices as applicable to each loan. As of March 31, 2025 , 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 . (6) Maximum maturity assumes all extension options are exercised, however our loans may be repaid prior to such date. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any . (7) The net book value of these loans includes junior loan interests that we have sold, but that remain included in our consolidated financial statements. (8) This loan has an interest rate of SOFR minus 1.30% with a SOFR floor of 3.50%, for an all-in rate of 3.02% as of March 31, 2025 . (9) Subordinate loans include: (i) loans in which we have previously originated a whole loan and sold a senior mortgage interest to a third-party, resulting in these subordinate interests in mortgages, (ii) mezzanine loans, and (iii) the subordinate portion of loans that have been modified that have resulted in a restructured senior loan and subordinate loan. (10) These subordinate loans are the result of a loan modification which resulted in a restructured senior loan and a subordinate loan. All of the subordinate loans are accounted for under the cost-recovery method. 85 VII. REO Asset Details The following table provides details of our REO asset as of March 31, 2025 ($ in thousands): Acquisition Date Location Property Type Acquisition Date Fair Value SQFT / Unit / Key 1 March 2024 Mountain View, CA Office $ 60,203 150,507 sqft 2 July 2024 San Antonio, TX Multifamily 33,607 388 units 3 September 2024 Burlington, MA Office 64,628 379,018 sqft 4 October 2024 Washington, DC Office 107,016 892,480 sqft 5 December 2024 San Francisco, CA Hospitality 201,530 686 keys 6 December 2024 El Segundo, CA Office 145,363 494,532 sqft 7 December 2024 Denver, CO Office 33,337 170,304 sqft 8 February 2025 Chicago, IL Office 45,045 517,115 sqft $ 690,729 86