Shares of Blackstone Mortgage Trust Inc. (NYSE: BXMT) tumbled to a 52-week low of $13.72 on Monday, extending a year-to-date decline of nearly 30%. The commercial mortgage REIT’s stock has underperformed as distributable earnings for the second quarter of 2026 fell short of analyst projections.
Distributable earnings came in at $0.31 per share, below the $0.42 estimate compiled by Refinitiv, while revenue rose 24% year-over-year to $158.06 million, outpacing the $127.34 million forecast. Book value per share declined 4% during the quarter, driven by higher credit reserves under CECL accounting and depreciation on owned real estate assets.
Loan repayments totaled $1.2 billion, while new investment activity reached $1.4 billion, primarily directed toward residential, industrial, and net lease properties. The REIT’s watchlist exposure, a measure of loans at risk of non-performance, decreased to $2.0 billion from $2.5 billion in the prior quarter.
Analysts at Raymond James downgraded the stock to Market Perform from Outperform, citing concerns over portfolio quality and the potential for further erosion in book value. Citizens maintained a Market Perform rating but noted ongoing portfolio rotation. Management warned that near-term earnings may remain under pressure amid elevated credit costs.
Despite the recent downturn, BXMT’s dividend yield remains elevated at 13.61%, supported by 15 consecutive years of dividend payments. The stock’s 30% potential upside, as per average price targets, contrasts with its year-to-date decline, reflecting mixed analyst sentiment amid shifting real estate market dynamics.
