What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-07-30 compared with 2026-04-29 · 376 added, 352 removed, 1027 unchanged (41% of the section changed)

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share, dividends declared, Distributable Earnings, Distributable Earnings prior to realized gains and losses , and book value

For the three months ended March 31, 2026 , we recorded basic net loss per share of $0.04 , declared a dividend

of $ 0.47 per share, reported $0.21 per share of Distributable Earnings, and reported $0.49 per share of Distributable

Earnings prior to realized gains and losses .

In addition, our book value as of March 31, 2026 was $20.20 per share, which

is net of cumulative CECL reserves of $1.80 per share and accumulated depreciation and amortization of owned real estate

assets of $0.57 per share.

For the three months ended June 30, 2026 , we recorded basic net loss per share of $0.48 , declared a dividend of

$ 0.47 per share, reported $0.31 per share of Distributable Earnings, and reported $0.48 per share of Distributable Earnings

prior to realized gains and losses .

In addition, our book value as of June 30, 2026 was $19.31 per share, which is net of

cumulative CECL reserves of $2.43 per share, and accumulated depreciation and amortization of owned real estate assets,

including our share related to unconsolidated entities, of $0.76 per share.

As further described below, Distributable Earnings and Distributable Earnings prior to realized gains and losses are

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America, or GAAP.

Distributable Earnings and Distributable Earnings prior to realized gains and losses 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 investments and operations.

In addition, Distributable Earnings and Distributable

Earnings prior to realized gains and losses are performance metrics we consider when declaring our dividends.

Distributable Earnings and Distributable Earnings prior to realized gains and losses help us to evaluate

our performance, excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily

indicative of our current investments and operations.

In addition, Distributable Earnings and Distributable Earnings prior to

realized gains and losses 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):

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

except per share data):

Three Months Ended

June 30, 2026

March 31, 2026

December 31, 2025

Net (loss) income (1)

Weighted-average shares outstanding, basic

Net (loss) income per share, basic

Net loss per share, basic

Dividends declared per share

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

Refer to Note 14 to our consolidated

financial statements for the calculation of diluted net (loss) income per share.

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

Refer to Note 14 to our consolidated financial

statements for the calculation of diluted net loss per share.

Distributable Earnings and Distributable Earnings Prior to Realized Gains and Losses

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Three Months Ended

June 30, 2026

March 31, 2026

December 31, 2025

Net (loss) income (1)

Charge-offs of CECL reserves (2)

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Non-cash compensation expense

Realized hedging and foreign currency gain (loss), net (5)

Realized hedging and foreign currency (loss) gain, net (5)

Allocable share of adjustments related to unconsolidated entities (6)

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Adjustments attributable to non-controlling interests

Allocable share of adjustments related to unconsolidated entities (6)

Distributable Earnings prior to realized gains and losses

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Distributable Earnings per share, basic

Distributable Earnings per share, basic, prior to realized gains and losses

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

Distributable Earnings prior to realized gains and losses per share, basic

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

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

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value prior to depreciation and amortization.

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

These amounts were not included in

GAAP net (loss) income , but rather as a component of other comprehensive income in our consolidated financial

(6) Allocable share of adjustments related to unconsolidated entities for the three months ended March 31, 2026 reflects

our share of non-cash items such as (i) $3.2 million of unrealized losses recorded by such unconsolidated entities,

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

These amounts were not

included in GAAP net loss , but rather as a component of other comprehensive income in our consolidated financial

(6) Allocable share of adjustments related to unconsolidated entities for the three months ended June 30, 2026 reflects

our share of non-cash items such as (i) $(3.8) million of unrealized gains recorded by such unconsolidated entities,

(ii) $4.3 million of depreciation and amortization, and (iii) related adjustments for realized gains, if any.

three months ended December 31, 2025 , reflects our share of non-cash items such as (i) $(2.0) million of unrealized

gains recorded by such unconsolidated entities, (ii) $2.0 million of depreciation and amortization, and (iii) related

three months ended March 31, 2026 , reflects our share of non-cash items such as (i) $3.2 million of unrealized losses

recorded by such unconsolidated entities, (ii) $3.1 million of depreciation and amortization, and (iii) related

adjustments for realized gains, if any.

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The following table calculates our book value per share ($ in thousands, except per share data):

June 30, 2026

March 31, 2026

December 31, 2025

Stockholders’ equity

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Investment Portfolio

Our Investment Portfolio consists of our Loan Portfolio , our investments in our Bank Loan Portfolio Joint Venture and Net

Lease Joint Venture , our owned real estate assets, and our investments in debt securities.

The chart below details the

composition of our Investment Portfolio as of March 31, 2026 :

Our Investment Portfolio consists of our Loan Portfolio , our investments in our Bank Loan Portfolio Joint Venture , Net

Lease Joint Venture and Homebuilder Finance Joint Venture , our owned real estate assets, and our investment in debt

The chart below details the composition of our Investment Portfolio as of June 30, 2026 :

Investment Portfolio (1)(2)(3)

Included in our Loan Portfolio (4)

______________

(1) Our Investment Portfolio reflects the gross amount of our investments as of March 31, 2026 , which consists of (i)

our Loan Portfolio , which represents net book value less total loans receivable CECL reserves, (ii) our share of the

(1) Our Investment Portfolio reflects the gross amount of our investments as of June 30, 2026 , which consists of (i) our

Loan Portfolio , which represents net book value less total loans receivable CECL reserves, (ii) our share of the

carrying value of investments held by our Net Lease Joint Venture , (iii) our share of the fair value of the loans held

by our Bank Loan Portfolio Joint Venture , (iv) the aggregate carrying value of our owned real estate assets, and (v)

the fair value of our investments in debt securities.

by both our Bank Loan Portfolio Joint Venture and Homebuilder Finance Joint Venture , (iv) the aggregate carrying

value of our owned real estate assets, and (v) the fair value of our investments in debt securities.

(2) Assets in our Loan Portfolio with multiple components are proportioned into the relevant property types based on

the allocated value of each property type.

(3) Investment types that represent less than 1% of our Investment Portfolio are excluded from the chart.

(3) Investment types that represent less than 1% of our Investment Portfolio are included in Other Investments in the

chart, which includes our Homebuilder Finance Joint Venture and investment in debt securities.

(4) Represents the types of properties securing the loans in our Loan Portfolio.

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Loan Originations

During the three months ended March 31, 2026 , we originated or acquired $274.9 million of loans, inclusive of additional

During the three months ended June 30, 2026 , we originated or acquired $1.2 billion of loans, inclusive of additional

commitments made under existing loans.

Loan Portfolio Activity

Du ring the three months ended March 31, 2026 , loan fundings totaled $295.9 million and loan repayments and sales totaled

$630.9 million .

Du ring the three months ended June 30, 2026 , loan fundings totaled $1.2 billion and loan repayments and sales totaled

$1.2 billion .

The following table details our Loan Portfolio activity ($ in thousands):

Three Months Ended

March 31, 2026

June 30, 2026

Six Months Ended

June 30, 2026

Loan fundings (1)

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Total net repayments

(1) Excludes amounts for loans held by our Bank Loan Portfolio Joint Venture , which are included in investments in

unconsolidated entities on our consolidated balance sheets.

The following table details overall statistics for our Loan Portfolio as of March 31, 2026 ($ in thousands):

March 31, 2026

(1) Excludes amounts for loans held by our Bank Loan Portfolio Joint Venture and Homebuilder Finance Joint Venture ,

which are included in investments in unconsolidated entities on our consolidated balance sheets.

The following table details overall statistics for our Loan Portfolio as of June 30, 2026 ($ in thousands):

June 30, 2026

Number of loans

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

March 31, 2026 , 97% of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR.

June 30, 2026 , 97% of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR.

The remaining 3% of our loans by principal balance earned a fixed rate of interest.

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methods, if any .

As of March 31, 2026 , 41% of our loans by principal balance were subject to yield maintenance or

As of June 30, 2026 , 47% of our loans by principal balance were subject to yield maintenance or

other prepayment restrictions and 53% 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 .

The following table details the index rate floors for our Loan Portfolio as of March 31, 2026 ($ in thousands):

The following table details the index rate floors for our Loan Portfolio as of June 30, 2026 ($ in thousands):

Loan Portfolio Principal Balance

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(2) Includes all impaired loans.

(3) As of March 31, 2026 , the weighted-average index rate floor of our floating-rate Loan Portfolio principal balance

(3) As of June 30, 2026 , the weighted-average index rate floor of our floating-rate Loan Portfolio principal balance was

Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 2.11% .

The following table details the floating benchmark rates for our Loan Portfolio as of March 31, 2026 ( Loan Portfolio

The following table details the floating benchmark rates for our Loan Portfolio as of June 30, 2026 ( Loan Portfolio

principal balance amounts in thousands):

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(3) Includes floating rate loans indexed to STIBOR, CORRA, and BBSY indices .

The charts below detail the geographic distribution a nd types of properties securing our Loan Portfolio , as of March 31,

The charts below detail the geographic distribution a nd types of properties securing our Loan Portfolio , as of June 30,

Geographic Diversification

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(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, 2026 ,

(1) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of June 30, 2026 ,

which is our principal balance net of (i) $972.6 million of asset-specific debt, (ii) $20.3 million of cost-recovery

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Portfolio Management

As of March 31, 2026 , 98% of our loans, based on net loan exposure, were performing with risk ratings of “1” through “4,”

and the remaining 2% were impaired with a risk rating of “5.” As of March 31, 2026 , two of our performing loans with an

aggregate amortized cost basis of $156.7 million were in default.

With respect to one of these loans, the default was a

technical default as a result of the non-payment of an extension fee, the loan was not past its maturity date and was current

on its interest payments.

The other loan was in payment default and was less than 90 days past due on its interest payment.

Both of these loans had a risk rating of “4.” All other borrowers under performing loans were in compliance with the

applicable contractual terms of each respective loan, including any required payment of interest.

We believe this

demonstrates the overall strength of our loan portfolio and the commitment and financial wherewithal of our borrowers

generally, which are primarily affiliated with large real estate private equity funds and other strong, well-capitalized, and

experienced sponsors.

As of June 30, 2026 , 97% of our loans, based on net loan exposure, were performing with risk ratings of “1” through “4,”

and the remaining 3% were impaired with a risk rating of “5.” As of June 30, 2026 , one of our performing loans with an

amortized cost basis of $148.8 million was in payment default, was less than 90 days past due on its interest payment, and

had a risk rating of “4.” This loan was not impaired as of June 30, 2026 as we expect to fully recover all contractual

principal and interest amounts due under the loan agreement.

All other borrowers under performing loans were in

compliance with the applicable contractual terms of each respective loan, including any required payment of interest.

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

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certain investments.

As of March 31, 2026 , we had an aggregate $84.9 million asset-specific CECL reserve related to seven

As of June 30, 2026 , we had an aggregate $219.5 million asset-specific CECL reserve related to nine

of our loans receivable, with an aggregate amortized cost basis of $695.2 million , net of cost-recovery proceeds.

CECL reserve was recorded based on our estimation of the fair value of each of the loan's underlying collateral as of

March 31, 2026 .

June 30, 2026 .

We benefit from the deep knowledge, experience and information advantages of our Manager, which is a part of

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the performance of each loan, and assign it a risk rating between “1” and “5”, from less risk to greater risk.

March 31, 2026 , our loan portfolio had a weighted-average risk rating of 3.0 , based on net loan exposure.

As of June 30,

2026 , our loan portfolio had a weighted-average risk rating of 3.0 , based on net loan exposure.

The following table allocates the net book value and net loan exposure balances based on our internal risk ratings as of

March 31, 2026 ($ in thousands):

March 31, 2026

June 30, 2026 ($ in thousands):

June 30, 2026

Number of Loans

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Loans receivable, net

(1) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of March 31, 2026 ,

(1) Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of June 30, 2026 ,

which is our principal balance net of (i) $972.6 million of asset-specific debt, (ii) $20.3 million of cost-recovery

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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, 2026 , we recorded a net increase of $7.2 million in the CECL reserves against

our loans receivable portfolio, primarily driven by a $9.6 million increase in our general CECL reserve partially offset by a

$2.4 million decrease in our asset-specific CECL reserve, bringing our total loans receivable CECL reserves to

$291.6 million as of March 31, 2026 .

The increase in our general CECL reserve was primarily driven by new loan

originations.

The decrease in our asset-specific reserve was driven by charge-offs of $46.5 million primarily related to the

resolution of one previously impaired loan as a result of our acquisition of title through a foreclosure of title to a hospitality

collateral property located in San Francisco, CA, which is now included on our consolidated balance sheet as an owned real

estate asset.

This was largely offset by additions to our asset-specific CECL reserve related to two additional loans with a

total amortized cost basis of $284.8 million that were impaired during the three months ended March 31, 2026 .

accrual was suspended on the two newly impaired loans, as the recovery of income and principal was doubtful.

three months ended March 31, 2026 , we recorded $1.4 million of interest income on these loans.

As of March 31, 2026 , we had an aggregate $84.9 million asset-specific CECL reserve related to seven of our loans

The CECL reserves required by GAAP reflect our current estimate of potential credit losses related to our loans 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 June 30, 2026 , we recorded a net increase of $106.2 million in the CECL reserves against

our loans receivable portfolio, primarily driven by a $134.6 million increase in our asset-specific CECL reserve, partially

offset by a $28.3 million decrease in our general CECL reserve, bringing our total loans receivable CECL reserves to

$397.8 million as of June 30, 2026 .

The increase in our asset-specific reserve was driven by three additional loans with an

aggregate amortized cost basis of $502.0 million that were impaired during the three months ended June 30, 2026 , of which

two are secured by office properties, and the other is secured by an office/mixed-use asset.

The office sector recovery in

certain markets has continued to lag other commercial real estate sectors, which has, in certain cases, extended business

plans on transitional properties and impacted their performance, affecting some borrowers’ willingness and ability to

continue to support their assets.

Impairments are determined individually as a result of changes in specific credit quality

factors for such loans.

These factors include, among others, (i) the performance of the underlying property collateral, (ii)

discussions with the borrower, (iii) borrower events of default, and (iv) other facts and circumstances affecting the

borrower’s willingness and ability to satisfy its contractual obligations under the terms of the loan.

During the three months

ended June 30, 2026 , we recorded $7.1 million of interest income on these loans.

Upon determining that the three loans

were impaired, the income accrual was suspended, as the recovery of interest income and principal was doubtful.

increase in our asset-specific reserve was partially offset by charge-offs of $28.6 million primarily related to the resolution

of one previously impaired loan as a result of our acquisition of title through a foreclosure of a multifamily collateral

property located in Dallas, TX, which is now included on our consolidated balance sheet as an owned real estate asset.

decrease in our general CECL reserve was primarily driven by changes in risk ratings, and a decrease in our loans

receivable balance, partially offset by new loan originations and an increase in the historical loss rate used in reserve

calculations related to the additional CECL reserve charge-offs.

As of June 30, 2026 , we had an aggregate $219.5 million asset-specific CECL reserve related to nine of our loans

receivable, with a total amortized cost basis of $695.2 million , net of cost-recovery proceeds.

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This asset-specific CECL reserve was recorded based on our estimation of the fair value of each loan’s underlying

collateral as of March 31, 2026 .

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

collateral as of June 30, 2026 .

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

During the three

months ended March 31, 2026 , we received an aggregate $0.5 million of cash proceeds from such loans that were applied

as a reduction to the amortized cost basis of each respective loan.

months ended June 30, 2026 , we did not receive any cash proceeds from such loans that would have been applied as a

reduction to the amortized cost basis of each respective loan.

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

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receive an equity interest in and/or control over decision-making at the property.

As of March 31, 2026 , we had 13 owned

As of June 30, 2026 , we had 14 owned

real estate assets with an aggregate carrying value of $1.4 billion .

The following table provides details of our owned real estate asset as of March 31, 2026 ($ in thousands):

The following table provides details of our owned real estate assets as of June 30, 2026 ($ in thousands):

Acquisition Date

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We have an aggregate 35% ownership

interest in the joint venture as of March 31, 2026 .

As of March 31, 2026 , our share of the fair value of the loans held by our

interest in the joint venture as of June 30, 2026 .

As of June 30, 2026 , our share of the fair value of the loans held by our

Bank Loan Portfolio Joint Venture was $502.2 million .

Our Bank Loan Portfolio Joint Venture is recorded on our consolidated balance sheets as an investment in unconsolidated

As of March 31, 2026 , our investment in the joint venture totaled $101.3 million .

During the three months ended

March 31, 2026 , we did not make any contributions to the joint venture, received $10.6 million of distributions, and

recorded $0.9 million of income from unconsolidated entities in our consolidated statements of operations.

Our Bank Loan Portfolio Joint Venture is recorded on our consolidated balance sheets in investments in unconsolidated

As of June 30, 2026 , our investment in the joint venture totaled $99.8 million .

During the six months ended

June 30, 2026 , we did not make any contributions to the joint venture, received $20.2 million of distributions, and recorded

$9.0 million of income from unconsolidated entities in our consolidated statements of operations.

Net Lease Joint Venture

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Our investment in the joint venture is recorded on our

consolidated balance sheets as an investment in unconsolidated entities.

As of March 31, 2026 , our investment in

unconsolidated entities related to the joint venture totaled $143.1 million .

During the three months ended March 31, 2026 ,

we contributed $58.9 million to the joint venture, received $22.4 million of distributions, and recorded $0.4 million of

income from unconsolidated entities in our consolidated statements of operations, inclusive of $3.1 million of depreciation

and amortization expense.

We have an aggregate 75% ownership interest in the joint venture as of March 31, 2026 .

March 31, 2026 , our share of the carrying value of investments held by our Net Lease Joint Venture was $515.6 million .

consolidated balance sheets in investments in unconsolidated entities .

As of June 30, 2026 , our investment in the joint

venture totaled $185.9 million .

During the six months ended June 30, 2026 , we contributed $100.0 million to the joint

venture, received $22.4 million of distributions, and recorded $0.7 million of income from unconsolidated entities in our

consolidated statements of operations, inclusive of $7.4 million of depreciation and amortization expense.

aggregate 75% ownership interest in the joint venture as of June 30, 2026 .

As of June 30, 2026 , our share of the carrying

value of investments held by our Net Lease Joint Venture was $661.3 million .

The following table details the tenant industries and the geographic location of the assets held by our Net Lease Joint

Venture as of March 31, 2026 :

Venture as of June 30, 2026 :

Tenant Industry

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Wholesale Trade

Casual Dining

Other Services

Number of Properties

% of Annualized Base Rent

All other ( 25 states)

As of March 31, 2026 , our Net Lease Joint Venture ’s leases had a weighted average remaining lease term of over 15 years

Other ( 25 states)

As of June 30, 2026 , our Net Lease Joint Venture ’s leases had a weighted average remaining lease term of over 15 years

(based on annualized base rent), with weighted average annual rent increases of approximately 2% , and a rent coverage

ratio of approximately 3 x.

Homebuilder Finance Joint Venture

In the second quarter of 2026, we entered into a joint venture with an unaffiliated third-party, alongside a Blackstone-

advised investment vehicle, to acquire an initial $286.7 million portfolio of construction loans collateralized by single

family homes, and to continue to acquire and fund such loans in the future , or our Homebuilder Finance Joint Venture .

loans are secured by single family homes under construction that are located throughout various markets in the United

We have an aggregate 45% ownership interest in the joint venture as of June 30, 2026 .

As of June 30, 2026 , our

share of the fair value of the loans held by our Homebuilder Finance Joint Venture was $149.1 million .

Our Homebuilder Finance Joint Venture is recorded on our consolidated balance sheets in investments in unconsolidated

As of June 30, 2026 , our investment in the joint venture totaled $36.3 million .

During the three and six months

ended June 30, 2026 , we made $36.0 million of contributions to the joint venture, did not receive any distributions, and

recorded $0.3 million of income from unconsolidated entities in our consolidated statements of operations.

Core+ Real Estate Debt Fund Investment

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Our capital commitment represented a minority of the total capital commitments the BREDS-advised private fund had

received as of March 31, 2026 .

As of March 31, 2026 , the BREDS-advised private fund had not called any capital or made

any investments.

To fund its future investments, the BREDS-advised private fund will draw down on capital commitments

made by its investors, including us, on a pro rata basis.

received as of June 30, 2026 .

As of June 30, 2026 , the BREDS-advised private fund had not called any capital.

investments, the BREDS-advised private fund will draw down on capital commitments made by its investors, including us,

on a pro rata basis.

Debt Securities Investment

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The SRT investment earns a floating-rate cash coupon of SONIA + 7.00% .

March 31, 2026 , no realized credit losses have been incurred with respect to the underlying reference loan portfolio.

June 30, 2026 , no realized credit losses have been incurred with respect to the underlying reference loan portfolio.

Agency Multifamily Lending Partnership

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to MTRCC for origination under the Fannie Mae program.

During the three months ended March 31, 2026 , we did not

refer any loans to MTRCC.

During the six months ended June 30, 2026 , we did not refer

any loans to MTRCC.

Loan Portfolio Financings

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Outstanding Principal Balance

March 31, 2026

June 30, 2026

December 31, 2025

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Total loan portfolio financing

The following table details our secured credit facilities by spread over the applicable base rates as of March 31, 2026 ($ in

Three Months Ended

March 31, 2026

New Financings (2)

The following table details our secured credit facilities by currency as of June 30, 2026 ($ in thousands):

Recourse Limitation

Cost (3)(4)(5)

Collateral (6)

+ 1.50% or less (7)

+ 1.51% to + 1.75%

+ 1.76% to + 2.00%

+ 2.01% or more

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

facility lenders.

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

Therefore, the weighted-

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

extension options are exercised by the borrower.

In limited instances, the maturity date of the respective secured

credit facility is used.

(3) 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, 2026 .

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

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accounted for under the cost-recovery and nonaccrual methods, if any, and owned real estate assets.

(4) Represents the weighted-average all-in cost as of March 31, 2026 and is not necessarily indicative of the spread

(5) Represents the weighted-average all-in cost as of June 30, 2026 and is not necessarily indicative of the spread

applicable to recent or future borrowings.

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estate assets.

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

(7) Includes an interest rate swap with a $35.6 million notional amount that effectively converts our floating rate

liability to a fixed rate liability to align with the financed fixed rate loan exposure.

(7) Includes Australian Dollar, Canadian Dollar, and Swedish Krona currencies.

Securitizations

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underlying collateral assets that are financed by our CLOs and the European Loan Securitization ($ in thousands):

March 31, 2026

June 30, 2026

Securitized Debt Obligations

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Underlying Collateral Assets

February 2027

Senior CLO Securities Outstanding

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on our consolidated balance sheets.

(5) During the three months ended March 31, 2026 , we recorded $34.7 million of interest expense related to our

securitized debt obligations.

(5) During the six months ended June 30, 2026 , we recorded $74.8 million of interest expense related to our securitized

debt obligations.

Refer to Note 8 and Note 19 to our consolidated financial statements for additional details of our securitized debt

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The following table details our asset-specific debt ($ in thousands):

March 31, 2026

June 30, 2026

Asset-Specific Debt

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Outstanding Principal Balance

March 31, 2026

June 30, 2026

December 31, 2025

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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, 2026 ($ in thousands):

or Senior Secured Notes, and convertible senior notes, or Convertible Notes, as of June 30, 2026 ($ in thousands):

Corporate Financing

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(1) The B-7 Term Loan and B-9 Term Loan borrowings are subject to a benchmark interest rate floor of 0.50% .

(2) For certain of the Senior Secured Notes, we have entered into interest rate swaps that effectively convert our fixed

rate exposure to floating rate exposure.

Refer to Note 11 and Note 13 to our consolidated financial statements for

further information.

(3) 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 11 to our consolidated financial

statements for further information.

(4) The conversion price of the Convertible Notes is $36.27 , which represents the price of class A common stock per

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The cumulative dividend threshold has

not been exceeded as of March 31, 2026 .

Refer to Note 2 , Note 10 , Note 11 , and Note 12 to our consolidated financial statements for further discussion of our Term

Loans, Senior Secured Notes, and Convertible Notes.

not been exceeded as of June 30, 2026 .

Refer to Notes 2 , 10 , 11 , and 12 to our consolidated financial statements for further discussion of our Term Loans, Senior

Secured Notes, and Convertible Notes.

Floating Rate Loan Portfolio

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will decrease net income.

As of March 31, 2026 , 97% of our loans by principal balance earned a floating rate of interest,

As of June 30, 2026 , 97% of our loans by principal balance earned a floating rate of interest,

primarily indexed to SOFR, and were financed with liabilities that pay interest at floating rates, which resulted in an

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in benchmark rates that varies by currency silo based on the relative proportion of floating rate assets and liabilities.

The following table details our investment portfolio’s exposure to interest rates by currency as of March 31, 2026 (amounts

The following table details our investment portfolio’s exposure to interest rates by currency as of June 30, 2026 (amounts

in thousands):

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liability to a fixed rate liability to align with the financed fixed rate loan exposure.

(8) 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) Includes amounts outstanding under Term Loans, the Senior Secured Notes due 2029 , and the Senior Secured Notes

In connection with the issuance of the Senior Secured Notes due 2029 and Senior Secured Notes due

2031 , we entered into interest rate swaps with an aggregate notional amount of $900.0 million to effectively convert

our fixed rate exposure to floating rate exposure for such notes.

(9) Represents the U.S.

dollar equivalent as of March 31, 2026 .

dollar equivalent as of June 30, 2026 .

In addition to the risks related to fluctuations in cash flows and asset values associated with movements in interest rates,

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The following table sets forth information regarding our consolidated results of operations for the three months ended

March 31, 2026 and December 31, 2025 ($ in thousands, except per share data):

June 30, 2026 and March 31, 2026 ($ in thousands, except per share data):

Three Months Ended

June 30, 2026

March 31, 2026

December 31, 2025

Income from loans and other investments

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Other income, net

(Loss) income before income taxes

Loss before income taxes

Income tax provision

Net (loss) income

Net loss (income) attributable to non-controlling interests

Net (loss) income attributable to Blackstone Mortgage Trust,

Net (loss) income per share of common stock, basic and diluted

Net loss attributable to non-controlling interests

Net loss attributable to Blackstone Mortgage Trust, Inc.

Net loss per share of common stock, basic and diluted

Weighted-average shares of common stock outstanding, basic

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Income from loans and other investments, net

Income from loans and other investments, net increase d $0.9 million during the three months ended March 31, 2026

compared to the three months ended December 31, 2025 .

The increase was primarily driven by lower financing costs,

primarily due to the issuance of our FL6 CLO and B-9 Term Loan .

This increase was partially offset by (i) a

$490.3 million decrease in the weighted-average principal balance of our loan portfolio, and (ii) declines in floating-rate

Income from loans and other investments, net decrease d $2.3 million during the three months ended June 30, 2026

compared to the three months ended March 31, 2026 .

The decrease was primarily driven by (i) an increase in interest

expense due to a $173.9 million increase in the weighted-average principal balance of our outstanding financing

arrangements, and (ii) a decline in interest income related to additional loans accounted for under the cost-recovery method

during the three months ended June 30, 2026 .

These decreases were partially offset by an increase in interest income

primarily due to new originations during the three months ended June 30, 2026 .

Revenue from owned real estate

Revenue from owned real estate decrease d by $0.8 million during the three months ended March 31, 2026 compared to the

three months ended December 31, 2025 .

The decrease was primarily due to the seasonality of the operations at our

hospitality assets.

This was partially offset by the acquisition or consolidation of two owned real estate assets during the

three months ended December 31, 2025 , as the three months ended March 31, 2026 reflected a full quarter of income

recognition compared to a partial period during the three months ended December 31, 2025 .

Revenue from owned real estate increase d by $0.9 million during the three months ended June 30, 2026 compared to the

three months ended March 31, 2026 .

The increase was primarily due to the acquisition of one additional owned real estate

asset during the three months ended June 30, 2026 .

This increase was partially offset by the seasonality of the operations at

our hospitality assets.

Expenses include management and incentive fees payable to our Manager, general and administrative expenses, and

expenses from owned real estate.

Expenses increase d by $2.7 million during the three months ended March 31, 2026

compared to the three months ended December 31, 2025 , primarily due to a $6.9 million increase in expenses from owned

real estate mainly as a result of the acquisition or consolidation of two owned real estate assets during the three months

ended December 31, 2025 , as the three months ended March 31, 2026 reflected a full quarter of expense recognition

compared to a partial period during the three months ended December 31, 2025 , which was partially offset by the benefit

from a $3.3 million property tax refund received by one of our owned real estate assets.

This was also partially offset by a

$1.6 million decrease in management fees payable to our Manager, due to lower Equity, as defined in our Management

Agreement, primarily resulting from charge-offs of CECL reserves .

Expenses increase d by $0.2 million during the three months ended June 30, 2026

compared to the three months ended March 31, 2026 , primarily due to a $0.9 million increase in general and administrative

expenses driven by costs incurred in connection with the formation of our Homebuilder Finance Joint Venture .

partially offset by (i) a $0.5 million decrease in expenses from owned real estate, primarily due to the benefit from a

$3.3 million property tax refund received by one of our owned real estate assets during the three months ended March 31,

2026 , partially offset by the acquisition of one additional owned real estate asset during the three months ended June 30,

2026 , and (ii) a $0.2 million decrease in management fees payable to our Manager, due to lower Equity, as defined in our

Management Agreement, primarily resulting from charge-offs of CECL reserves.

Changes in current expected credit loss reserve

During the three months ended March 31, 2026 , we recorded a $55.1 million increase in our CECL reserves, as compared

to an $18.4 million increase during the three months ended December 31, 2025 .

The increase during the three months

ended March 31, 2026 is primarily due to (i) an increase in our asset-specific CECL reserves, driven by two additional

loans that were impaired during the three months ended March 31, 2026 , and (ii) an increase in our general CECL reserves

driven by new loan originations.

During the three months ended June 30, 2026 , we recorded a $134.4 million increase in our CECL reserves, as compared to

a $55.1 million increase during the three months ended March 31, 2026 .

The increase during the three months ended

June 30, 2026 was primarily due to an increase in our asset-specific CECL reserves, driven by three additional loans that

were impaired during the three months ended June 30, 2026 .

This was partially offset by a decrease in our general CECL

reserves driven by changes in risk ratings, and a decrease in our loans receivable balance, partially offset by new loan

originations and an increase in the historical loss rate used in reserve calculations related to the additional CECL reserve

We may be required to record further increases to our CECL reserves in the future, depending on the performance of our

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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, 2026 .

receivable with a risk rating of “4” as of June 30, 2026 .

Income from unconsolidated entities

During the three months ended March 31, 2026 , we recorded income from unconsolidated entities of $1.4 million

compared to $7.3 million during the three months ended December 31, 2025 .

This decrease was primarily due to lower

income from our Bank Loan Portfolio Joint Venture as a result of unrealized losses on the fair value adjustment of the

portfolio during the three months ended March 31, 2026 , compared to unrealized gains during the three months ended

December 31, 2025 .

During the three months ended June 30, 2026 , we recorded income from unconsolidated entities of $8.6 million compared

to $1.4 million during the three months ended March 31, 2026 .

This increase was primarily due to higher income from our

Bank Loan Portfolio Joint Venture as a result of unrealized gains on the fair value adjustment of the portfolio during the

three months ended June 30, 2026 , compared to unrealized losses during the three months ended March 31, 2026 .

Income tax provision

The income tax provision increase d by $0.6 million during the three months ended March 31, 2026 compared to the three

months ended December 31, 2025 , primarily due to an increase in the income tax provisions related to our taxable REIT

The income tax provision increase d by $1.3 million during the three months ended June 30, 2026 compared to the three

months ended March 31, 2026 , primarily due to an increase in the income tax provisions related to our taxable REIT

subsidiaries.

Dividends per share

During the three months ended June 30, 2026 , we declared dividends of $ 0.47 per share, or $79.2 million in aggregate.

During the three months ended March 31, 2026 , we declared dividends of $ 0.47 per share, or $79.3 million in aggregate.

During the three months ended December 31, 2025 , we declared dividends of $ 0.47 per share, or $79.1 million in

The following table sets forth information regarding our consolidated results of operations for the three months ended

March 31, 2026 and 2025 ($ in thousands, except per share data):

Three Months Ended March 31,

The following table sets forth information regarding our consolidated results of operations for the six months ended

June 30, 2026 and 2025 ($ in thousands, except per share data):

Six Months Ended June 30,

Income from loans and other investments

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Income tax provision

Net (loss) income

Net loss (income) attributable to non-controlling interests

Net loss attributable to Blackstone Mortgage Trust, Inc.

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

Net loss per share of common stock, basic and diluted

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Income from loans and other investments, net

Income from loans and other investments, net decrease d $5.0 million during the three months ended March 31, 2026

compared to the three months ended March 31, 2025 .

The decrease was primarily due to (i) a $303.5 million decrease in

the weighted-average principal balance of our loan portfolio, (ii) an $846.9 million increase in the weighted-average

principal balance of our outstanding financing arrangements, (iii) a decline in interest income related to additional loans

accounted for under the cost-recovery method or loans that are now accounted for as owned real estate assets during the

three months ended March 31, 2026 , and (iv) declines in floating-rate indices.

Income from loans and other investments, net decrease d $17.2 million during the six months ended June 30, 2026

compared to the six months ended June 30, 2025 .

The decrease was primarily due to (i) a $1.1 billion decrease in the

weighted-average principal balance of our loan portfolio, and (ii) a decline in interest income related to additional loans

accounted for under the cost-recovery method or loans that are now accounted for as owned real estate assets during the six

months ended June 30, 2026 .

These decreases were partially offset by a decrease in interest expense resulting from declines

in floating-rate indices.

Revenue from owned real estate

Revenue from owned real estate increase d by $37.6 million during the three months ended March 31, 2026 , primarily due

to the acquisition or consolidation of five additional owned real estate assets.

Revenue from owned real estate increase d by $74.2 million during the six months ended June 30, 2026 compared to the six

months ended June 30, 2025 , primarily due to the acquisition or consolidation of six additional owned real estate assets.

Expenses include management and incentive fees payable to our Manager, general and administrative expenses, and

expenses from owned real estate.

Expenses increase d by $34.6 million during the three months ended March 31, 2026

compared to the three months ended March 31, 2025 primarily due to a $35.7 million increase in expenses from owned real

estate due to the acquisition or consolidation of five additional owned real estate assets.

This was partially offset by a

$2.4 million decrease in management fees payable to our Manager, due to lower Equity, as defined in our Management

Expenses increase d by $67.2 million during the six months ended June 30, 2026

compared to the six months ended June 30, 2025 primarily due to (i) a $69.3 million increase in expenses from owned real

estate due to the acquisition or consolidation of six additional owned real estate assets, and (ii) a $2.7 million increase in

general and administrative expenses due to an increase in professional service fees.

These increases were partially offset by

a $4.8 million decrease in management fees payable to our Manager, due to lower Equity, as defined in our Management

Agreement, primarily resulting from charge-offs of CECL reserves and repurchases of class A common shares.

Changes in current expected credit loss reserve

During the three months ended March 31, 2026 , we recorded a $55.1 million increase in our CECL reserves, as compared

to a $49.5 million increase during the three months ended March 31, 2025 .

The increase during the three months ended

March 31, 2026 was primarily due to (i) an increase in our asset-specific CECL reserves, driven by two additional loans

that were impaired during the three months ended March 31, 2026 , and (ii) an increase in our general CECL reserves

driven by new loan originations.

During the six months ended June 30, 2026 , we recorded a $189.5 million increase in our CECL reserves, as compared to a

$95.1 million increase during the six months ended June 30, 2025 .

The increase during the six months ended June 30, 2026

was primarily due to (i) an increase in our asset-specific CECL reserves, driven by five additional loans that were impaired

during the six months ended June 30, 2026 , and (ii) a decrease in our general CECL reserves driven by changes in risk

ratings, including the impact of the five newly impaired loans moving out of the general CECL reserve, partially offset by

new loan originations and an increase in the historical loss rate used in reserve calculations related to the additional CECL

We may be required to record further increases to our CECL reserves in the future, depending on the performance of our

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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, 2026 .

receivable with a risk rating of “4” as of June 30, 2026 .

Income (loss) from unconsolidated entities

During the three months ended March 31, 2026 , we recorded income from unconsolidated entities of $1.4 million

compared to a loss of $0.9 million during the three months ended March 31, 2025 .

The increase was primarily due to

income from our Bank Loan Portfolio Joint Venture , which did not exist during the three months ended March 31, 2025 , as

well as income from our Net Lease Joint Venture , which incurred a loss during the three months ended March 31, 2025 .

During the six months ended June 30, 2026 , we recorded income from unconsolidated entities of $10.0 million compared

to a loss of $2.9 million during the six months ended June 30, 2025 .

The increase was primarily driven by higher earnings

from both our Bank Loan Portfolio Joint Venture and Net Lease Joint Venture , reflecting additional assets acquired by each

joint venture.

Income tax provision

The income tax provision increase d by $0.4 million during the three months ended March 31, 2026 as compared to the

three months ended March 31, 2025 , due to an increase in the income tax provisions related to our taxable REIT

subsidiaries.

The income tax provision increase d by $2.0 million during the six months ended June 30, 2026 as compared to the six

months ended June 30, 2025 , due to an increase in the income tax provisions related to our taxable REIT subsidiaries.

Dividends per share

During the three months ended March 31, 2026 , we declared dividends of $0.47 per share, or $79.3 million in aggregate.

During the three months ended March 31, 2025 , we declared dividends of $0.47 per share, or $80.6 million in aggregate.

During the six months ended June 30, 2026 , we declared dividends of $0.94 per share, or $158.5 million in aggregate.

During the six months ended June 30, 2025 , we declared dividends of $0.94 per share, or $161.3 million in aggregate.

Liquidity and Capital Resources

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corporate debt, and asset-level financings.

As of March 31, 2026 , our capitalization structure included $3.4 billion of

As of June 30, 2026 , our capitalization structure included $3.3 billion of

common equity, $3.4 billion of corporate debt, and $12.4 billion of asset-level financings.

Our $3.4 billion of corporate

debt includes $1.9 billion of Term Loan borrowings, $785.3 million of Senior Secured Notes, and $266.2 million of

debt includes $1.9 billion of Term Loan borrowings, $1.2 billion of Senior Secured Notes, and $266.2 million of

Convertible Notes.

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

As of March 31, 2026 , we had $991.8 million of liquidity that can be used to satisfy our short-term cash requirements and

as working capital for our business.

See Notes 6 , 7 , 8 , 9 , 10 , 11 , and 12 to our co nsolidated financial statements for additional details regarding our other

As of June 30, 2026 , we had $1.2 billion of liquidity that can be used to satisfy our short-term cash requirements and as

working capital for our business.

Refer to Notes 6 , 7 , 8 , 9 , 10 , 11 , and 12 to our co nsolidated financial statements for additional details regarding our other

secured debt, secured debt, securitized debt obligations, asset-specific debt, Term Loans, Senior Secured Notes, and

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The following table presents our debt-to-equity ratio and total leverage ratio:

March 31, 2026

June 30, 2026

December 31, 2025

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and net receivables from servicers related to loan repayments, which are set forth in the following table ($ in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

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remitted to us during the subsequent remittance cycle, net of the related secured debt balance.

During the three months ended March 31, 2026 , we generated cash flow from operating activities of $169.7 million and

received $599.3 million from loan principal collections, sales proceeds, and cost-recovery proceeds.

Furthermore, we are

able to generate incremental liquidity through provisions of certain of our CLOs, which allow us to effectively replace, for

a period of time, a repaid loan in the CLO with additional eligible CLO collateral to maintain the aggregate amount of

During the six months ended June 30, 2026 , we generated cash flow from operating activities of $234.9 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 provisions of certain of our CLOs, which allow us to effectively replace, for a

period of time, a repaid loan in the CLO with additional eligible CLO collateral 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 of securities, in July 2025, we filed a shelf registration

statement with the SEC that is effective for a term of three years and expires in July 2028.

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.

loans, asset sales, and similar transactions.

To facilitate public offerings of securities, in July 2025, we filed a shelf

registration statement with the SEC that is effective for a term of three years and expires in July 2028.

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

(i) class A common stock;

(ii) preferred stock;

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(iv) debt securities;

(v) warrants;

subscription rights;

(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.

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

9,956,862 shares of class A common stock were available for issuance as of March 31, 2026 , and our “at the market”

9,948,628 shares of class A common stock were available for issuance as of June 30, 2026 , and our “at the market”

common 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, 2026 .

shares of our class A common stock as of June 30, 2026 .

Refer to Note 14 to our consolidated financial statements for

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suspended or discontinued at any time and does not have a specified expiration date.

During the three months ended March 31, 2026 , we repurchased 43,765 shares of class A common stock at a weighted-

During the six months ended June 30, 2026 , we repurchased 212,875 shares of class A common stock at a weighted-

average price per share of $17.99 , for a total cost of $3.8 million .

As of March 31, 2026 , the amount remaining available

for repurchases under the program was $148.8 million .

As of March 31, 2026 , we had unfunded commitments of $1.2 billion related to 52 loans receivable and $715.5 million of

As of June 30, 2026 , the amount remaining available for

repurchases under the program was $145.8 million .

As of June 30, 2026 , we had unfunded commitments of $1.1 billion related to 53 loans receivable and $680.3 million of

committed or identified financing for those commitments resulting in net unfunded commitments of $427.4 million .

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Contractual Obligations and Commitments

Our contractual obligations and commitments as of March 31, 2026 were as follows ($ in thousands):

Our contractual obligations and commitments as of June 30, 2026 were as follows ($ in thousands):

Payment Timing

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Future interest payment obligations are estimated assuming the interest

rates in effect as of March 31, 2026 will remain constant into the future.

rates in effect as of June 30, 2026 will remain constant into the future.

This is only an estimate as actual amounts

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The following table provides a breakdown of the net change in our cash and cash equivalents ($ in thousands):

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows provided by operating activities

Cash flows provided by investing activities

Cash flows used in financing activities

Net increase in cash and cash equivalents

We experienced a net increase in cash and cash equivalents of $97.7 million for the three months ended March 31, 2026 ,

compared to a net increase of $343.3 million for the three months ended March 31, 2025 .

During the three months ended

March 31, 2026 , we (i) received $880.0 million of net proceeds from the issuance of a securitized debt obligation, (ii)

received $599.3 million from loan principal collections and sales proceeds, (iii) received a net $72.1 million under our

secured term loan borrowings, and (iv) received aggregate distributions of $33.0 million from unconsolidated entities,

primarily as a result of our Net Lease Joint Venture refinancing its portfolio through an asset-backed securitization

transaction .

Also, during the three months ended March 31, 2026 , we (i) repaid a net $1.0 billion of secured debt

borrowings and asset-specific financings, (ii) funded $290.8 million of loans, (iii) repaid $133.6 million of securitized debt

obligations, (iv) paid $79.1 million of dividends on our class A common stock, and (v) invested $58.9 million in

unconsolidated entities.

Cash flows provided by (used in) investing activities

Cash flows (used in) provided by financing activities

Net (decrease) increase in cash and cash equivalents

We experienced a net decrease in cash and cash equivalents of $17.7 million for the six months ended June 30, 2026 ,

compared to a net increase of $55.9 million for the six months ended June 30, 2025 .

During the six months ended June 30,

2026 , we (i) received $1.8 billion from loan principal collections, sales proceeds, and cost-recovery proceeds, (ii) received

$880.0 million of net proceeds from the issuance of a securitized debt obligation, (iii) received $450.0 million of net

proceeds from the issuance of Senior Secured Notes, (iv) received a net $72.1 million under our secured term loan

borrowings, and (v) received aggregate distributions of $42.6 million from unconsolidated entities, primarily as a result of

our Net Lease Joint Venture refinancing its portfolio through an asset-backed securitization transaction .

Also, during the

six months ended June 30, 2026 , we (i) funded $1.4 billion of loans, (ii) repaid a net $1.4 billion of secured debt

borrowings and asset-specific financings, (iii) repaid $275.6 million of securitized debt obligations, (iv) paid

$158.4 million of dividends on our class A common stock, and (v) invested $136.0 million in unconsolidated entities.

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

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taxable years.

As of March 31, 2026 and December 31, 2025 , we were in compliance with all REIT requirements.

As of June 30, 2026 and December 31, 2025 , we were in compliance with all REIT requirements.

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

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This database

includes commercial mortgage-backed securities, or CMBS, issued since January 1, 1999 through February 28,

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.

includes commercial mortgage-backed securities, or CMBS, issued since January 1, 1999 through May 31, 2026 .

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

• Expected timing and amount of future loan fundings and repayments :

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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, 2026 .

condition impacting our portfolio could vary significantly from the estimates we made as of June 30, 2026 .

• Impairment :

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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.

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-

This is generally at the time a loan is repaid or foreclosed, or the underlying collateral assets are

otherwise consolidated.

However, non-recoverability may also be concluded if, in our determination, it is nearly

certain that all amounts due will not be collected.

estimated fair value of the underlying collateral 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.

generally at the time a loan is repaid or foreclosed, or the underlying collateral assets are otherwise consolidated.

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.

During the three months ended March 31, 2026 , our CECL reserves increase d by $8.6 million , bringing our total reserves

to $304.7 million as of March 31, 2026 .

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

During the six months ended June 30, 2026 , our CECL reserves increase d by $114.4 million , bringing our total reserves to

$410.4 million as of June 30, 2026 .

Refer to Notes 2 and 3 to our consolidated financial statements for further discussion of

our CECL reserves.

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Rental income primarily consists of base rent income arising from tenant leases at our office and multifamily properties.

We determine if an arrangement is a lease at contract inception, which is subject to the provisions of ASC 842.

recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions.

recognize revenue upon the acquisition of the related property or when a tenant takes possession of the leased space.

We determine if an arrangement is a lease at contract inception, which is subject to the provisions of Financial Accounting

Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 842 “Leases.” Base rent is recognized on a

straight-line basis over the life of the lease, including any rent steps or abatement provisions.

We begin to recognize

revenue upon the acquisition of the related property or when a tenant takes possession of the leased space.

Other operating income primarily consists of income from our hospitality properties and tenant reimbursement income.

25 unchanged sentences

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, 15 years for land improvements, and 10 years for tenant

estimated useful lives of up to 40 years for buildings, 15 years for land improvements, and 10 years for building and tenant

improvements.

10 unchanged sentences

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.

Real estate assets are classified as held for sale in the period when they meet the criteria under the ASC Topic 360

“Property, Plant, and Equipment.” Once a real estate asset is classified as held for sale, depreciation is suspended and the

asset is reported at the lower of its carrying value or fair value less cost to sell.

If circumstances arise and we decide not to

sell a real estate asset previously classified as held for sale, the real estate asset is reclassified as held for investment.

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

1 unchanged sentence

investment, and (ii) its estimated fair value at the time of reclassification.

As of March 31, 2026 , we had 13 owned real estate assets that were all classified as held for investment.

As of June 30, 2026 , we had 14 owned real estate assets that were all classified as held for investment.

Loan Portfolio Details

The following table provides details of our loan portfolio, on a loan-by-loan basis, as of March 31, 2026 ($ in millions):

The following table provides details of our loan portfolio, on a loan-by-loan basis, as of June 30, 2026 ($ in millions):

Senior Loan Portfolio (1)

4 unchanged sentences

Diversified, AU

Diversified, Spain

Diversified, SE

Diversified, Spain

Diversified, CAN

1 unchanged sentence

Diversified, UK

$377,079 / unit

Diversified, UK

1 unchanged sentence

Diversified, UK

Diversified, EUR

$214,898 / unit

$214,474 / unit

Diversified, UK

2 unchanged sentences

Diversified, UK

$423,214 / unit

Diversified, UK

$116,020 / unit

Diversified, EUR

$634,640 / key

$318,692 / unit

Melbourne, AU

$448,068 / unit

Senior Loan Portfolio (1)

3 unchanged sentences

Key / Acre / MW

Melbourne, AU

$446,837 / unit

$316,910 / unit

$358,264 / unit

Diversified, US

$983,496 / acre

Diversified, UK

$354,202 / unit

Manchester, UK

1 unchanged sentence

Diversified, US

Diversified, Spain

Diversified, UK

1 unchanged sentence

$256,954 / unit

Diversified, US

$1,061,500 / acre

$260,417 / unit

$137,280 / unit

Life Sciences/

6 unchanged sentences

Life Sciences/

Diversified, FR

Orange County

1 unchanged sentence

$294,755 / unit

$226,659 / unit

Diversified, US

$883,541 / acre

Diversified, FR

Senior Loan Portfolio (1)

3 unchanged sentences

Key / Acre / MW

$270,109 / key

$229,211 / unit

$270,109 / key

$152,536 / key

Washington, DC

Diversified, NL

$115,572 / unit

$152,536 / key

$449,074 / unit

Diversified, BE

Washington, DC

$269,388 / unit

5 unchanged sentences

$404,364 / key

Melbourne, AU

$186,341 / unit

$223,735 / unit

Diversified, US

3 unchanged sentences

$229,730 / unit

Melbourne, AU

$147,616 / unit

$113,016 / unit

$693,780 / key

$626,382 / key

$180,070 / unit

$209,601 / unit

Senior Loan Portfolio (1)

3 unchanged sentences

Key / Acre / MW

Salt Lake City

$178,810 / unit

$209,601 / unit

Salt Lake City

$206,345 / unit

$212,121 / unit

Diversified, US

38 unchanged sentences

CORRA, and other indices as applicable to each loan.

As of March 31, 2026 , 97% of our loans by principal balance earned a floating rate of interest, primarily indexed to

As of June 30, 2026 , 97% of our loans by principal balance earned a floating rate of interest, primarily indexed to

The remaining 3% of our loans by principal balance earned a fixed rate of interest.

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recovery and nonaccrual methods, if any .

(7) This loan has an interest rate of SOFR minus 1.30% with a SOFR floor of 3.50%, for an all-in rate of 2.36% as of March 31, 2026 .

(7) This loan has an interest rate of SOFR minus 1.30% with a SOFR floor of 3.50%, for an all-in rate of 2.35% as of June 30, 2026 .

(8) Subordinate loans include:

6 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis