UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2026

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM ______ TO ______

Commission File Number: 001-14788

Blackstone Mortgage Trust, Inc.

(Exact name of Registrant as specified in its charter)

Maryland	94-6181186
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

345 Park Avenue

New York, New York10154

(Address of principal executive offices)(Zip Code)

(212) 655-0220

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading symbol(s)		Name of each exchange on which registered
Class A common stock, par value $0.01 per share			BXMT		New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934

during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing

requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of

Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such

files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an

emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth

company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒		Accelerated filer	☐
Non-accelerated filer	☐		Smaller reporting company	☐
			Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new

or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of the registrant’s shares of class A common stock, par value $0.01 per share, outstanding as of October 22, 2026 was 165,987,923.

TABLE OF CONTENTS

		Page
PART I.	FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	3
	Consolidated Financial Statements (Unaudited):
	Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025	3
	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2026 and 2025	4
	Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2026 and 2025	5
	Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2026 and 2025, June 30, 2026 and 2025, and September 30, 2026 and 2025	6
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2026 and 2025	8
	Notes to Consolidated Financial Statements	10
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	58
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	93
ITEM 4.	CONTROLS AND PROCEDURES	95
PART II.	OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	96
ITEM 1A.	RISK FACTORS	96
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	97
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	98
ITEM 4.	MINE SAFETY DISCLOSURES	98
ITEM 5.	OTHER INFORMATION	98
ITEM 6.	EXHIBITS	99
SIGNATURES		100

TABLE OF CONTENTS

Website Disclosure

We use our website (www.blackstonemortgagetrust.com) as a channel of distribution of company information. The

information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in

addition to following our press releases, Securities and Exchange Commission, or SEC, filings and public conference calls,

and webcasts. In addition, you may automatically receive email alerts and other information about Blackstone Mortgage

Trust when you enroll your email address by visiting the “Contact Us and Email Alerts” section of our website at

http://ir.blackstonemortgagetrust.com. The contents of our website and any alerts are not, however, a part of this report.

3

PART I.

ITEM 1. FINANCIAL STATEMENTS

BlackstoneMortgage Trust, Inc.

Consolidated Balance Sheets (Unaudited)

(in thousands, except share data)

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	September 30, 2026		December 31, 2025
Assets
Cash and cash equivalents	$511,504		$452,526
Loans receivable, held-for-investment	14,563,834		18,069,134
Current expected credit loss reserve	(597,324)		(284,440)
Loans receivable, held-for-investment, net	13,966,510		17,784,694
Loans receivable, held-for-sale	615,575		—
Owned real estate, net	1,337,535		1,134,975
Investments in unconsolidated entities (includes $151,472 and $111,010 at fair value as of September 30, 2026 and December 31, 2025, respectively)	370,748		217,488
Other assets	657,721		413,263
Total Assets	$17,459,593		$20,002,946
Liabilities and Equity
Secured debt, net	$7,186,809		$10,117,292
Securitized debt obligations, net	2,636,870		2,139,719
Asset-specific debt, net	988,546		997,746
Term loans, net	1,875,754		1,808,000
Senior secured notes, net	1,191,731		784,876
Convertible notes, net	265,592		264,745
Other liabilities	474,612		386,178
Total Liabilities	14,619,914		16,498,556
Commitments and contingencies (Note 21)
Equity
Class A common stock, $0.01 par value, 400,000,000 shares authorized, 165,988,840 and 168,259,023 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively	1,660		1,683
Additional paid-in capital	5,411,239		5,430,542
Accumulated other comprehensive income	21,671		12,113
Accumulated deficit	(2,596,961)		(1,945,428)
Total Blackstone Mortgage Trust, Inc. stockholders’ equity	2,837,609		3,498,910
Non-controlling interests	2,070		5,480
Total Equity	2,839,679		3,504,390
Total Liabilities and Equity	$17,459,593		$20,002,946

Note: The consolidated balance sheets as of September 30, 2026 andDecember 31, 2025 include assets of consolidated

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

consolidated VIEs for which creditors do not have recourse to Blackstone Mortgage Trust, Inc. As of September 30, 2026

and December 31, 2025, assets of the consolidated VIEs totaled $3.7 billion and $3.3 billion, respectively, and liabilities of

the consolidated VIEs totaled $2.7 billionand $2.2 billion, respectively. Refer to Note 19 for further discussion of the

VIEs.

See accompanying notes to consolidated financial statements.

4

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share data)

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Income from loans and other investments
Interest and related income	$280,614		$345,959		$895,919		$1,037,553
Less: Interest and related expenses	216,192		247,055		664,110		754,015
Income from loans and other investments, net	64,422		98,904		231,809		283,538
Revenue from owned real estate	77,481		33,733		227,572		109,578
Total net revenue	141,903		132,637		459,381		393,116
Expenses
Management and incentive fees	14,481		16,849		43,935		51,120
General and administrative expenses	13,034		12,747		41,933		38,937
Expenses from owned real estate	81,222		43,100		244,637		137,198
Total expenses	108,737		72,696		330,505		227,255
(Increase) decrease in current expected credit loss reserve	(264,766)		987		(454,224)		(94,111)
Income from unconsolidated entities	5,489		3,924		15,442		1,035
Net loss on disposition of owned real estate	—		—		(160)		—
Impairment of owned real estate	(36,371)		—		(36,371)		—
Valuation adjustment on loans receivable, held-for-sale	(63,909)		—		(63,909)		—
Other income, net	2		68		9		389
(Loss) income before income taxes	(326,389)		64,920		(410,337)		73,174
Income tax provision	1,256		1,512		4,915		3,133
Net (loss) income	(327,645)		63,408		(415,252)		70,041
Net loss (income) attributable to non-controlling interests	640		(11)		728		(32)
Net (loss) income attributable to Blackstone Mortgage Trust, Inc.	$(327,005)		$63,397		$(414,524)		$70,009
Net (loss) income per share of common stock, basic and diluted	$(1.95)		$0.37		$(2.46)		$0.41
Weighted-average shares of common stock outstanding, basic and diluted	167,959,467		171,812,685		168,663,353		171,903,127

See accompanying notes to consolidated financial statements.

5

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net (loss) income	$(327,645)		$63,408		$(415,252)		$70,041
Other comprehensive income (loss)
Unrealized (loss) gain on foreign currency translation	(2,695)		(25,288)		(39,851)		181,093
Realized and unrealized gain (loss) on derivative financial instruments	3,858		25,174		38,945		(178,488)
Unrealized gain (loss) on derivative financial instruments from unconsolidated entities	9,274		(364)		10,464		(1,553)
Other comprehensive income (loss)	10,437		(478)		9,558		1,052
Comprehensive (loss) income	(317,208)		62,930		(405,694)		71,093
Comprehensive loss (income) attributable to non- controlling interests	640		(11)		728		(32)
Comprehensive (loss) income attributable to Blackstone Mortgage Trust, Inc.	$(316,568)		$62,919		$(404,966)		$71,061

See accompanying notes to consolidated financial statements.

6

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Changes in Equity (Unaudited)

(in thousands)

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	Blackstone Mortgage Trust, Inc.
	Class A Common Stock		Additional Paid- In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Stockholders’ Equity		Non- Controlling Interests		Total Equity
Balance at December 31, 2025	$1,683		$5,430,542		$12,113		$(1,945,428)		$3,498,910		$5,480		$3,504,390
Repurchases of class A common stock	(1)		(801)		—		—		(802)		—		(802)
Restricted class A common stock earned	5		6,484		—		—		6,489		—		6,489
Dividends reinvested	—		160		—		—		160		—		160
Deferred directors’ compensation	—		198		—		—		198		—		198
Net loss	—		—		—		(6,297)		(6,297)		(43)		(6,340)
Other comprehensive loss	—		—		(4,256)		—		(4,256)		—		(4,256)
Dividends declared on common stock and deferred stock units, $0.47 per share	—		—		—		(79,442)		(79,442)		—		(79,442)
Distributions to non-controlling interests	—		—		—		—		—		(2,345)		(2,345)
Balance at March 31, 2026	$1,687		$5,436,583		$7,857		$(2,031,167)		$3,414,960		$3,092		$3,418,052
Repurchases of class A common stock	(2)		(3,032)		—		—		(3,034)		—		(3,034)
Restricted class A common stock earned	—		6,476		—		—		6,476		—		6,476
Dividends reinvested	—		164		—		—		164		—		164
Deferred directors’ compensation	—		199		—		—		199		—		199
Net loss	—		—		—		(81,222)		(81,222)		(45)		(81,267)
Other comprehensive income	—		—		3,377		—		3,377		—		3,377
Dividends declared on common stock and deferred stock units, $0.47 per share	—		—		—		(79,380)		(79,380)		—		(79,380)
Balance at June 30, 2026	$1,685		$5,440,390		$11,234		$(2,191,769)		$3,261,540		$3,047		$3,264,587
Repurchases of class A common stock	(25)		(36,002)		—		—		(36,027)		—		(36,027)
Restricted class A common stock earned	—		6,476		—		—		6,476		—		6,476
Dividends reinvested	—		174		—		—		174		—		174
Deferred directors’ compensation	—		201		—		—		201		—		201
Net loss	—		—		—		(327,005)		(327,005)		(640)		(327,645)
Other comprehensive income	—		—		10,437		—		10,437		—		10,437
Dividends declared on common stock and deferred stock units, $0.47 per share	—		—		—		(78,187)		(78,187)		—		(78,187)
Distributions to non-controlling interests	—		—		—		—		—		(337)		(337)
Balance at September 30, 2026	$1,660		$5,411,239		$21,671		$(2,596,961)		$2,837,609		$2,070		$2,839,679

7

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Changes in Equity (Unaudited)

(in thousands)

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	Blackstone Mortgage Trust, Inc.
	Class A Common Stock		Additional Paid- In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Stockholders’ Equity		Non- Controlling Interests		Total Equity
Balance at December 31, 2024	$1,728		$5,511,053		$8,268		$(1,733,741)		$3,787,308		$6,881		$3,794,189
Shares of class A common stock issued, net	1		(1)		—		—		—		—		—
Repurchases of class A common stock	(18)		(31,629)		—		—		(31,647)		—		(31,647)
Restricted class A common stock earned	5		6,787		—		—		6,792		—		6,792
Dividends reinvested	—		213		—		—		213		—		213
Deferred directors’ compensation	—		173		—		—		173		—		173
Net (loss) income	—		—		—		(357)		(357)		6		(351)
Other comprehensive income	—		—		323		—		323		—		323
Dividends declared on common stock and deferred stock units, $0.47 per share	—		—		—		(80,837)		(80,837)		—		(80,837)
Distributions to non-controlling interests	—		—		—		—		—		(137)		(137)
Balance at March 31, 2025	$1,716		$5,486,596		$8,591		$(1,814,935)		$3,681,968		$6,750		$3,688,718
Repurchases of class A common stock	—		(39)		—		—		(39)		—		(39)
Restricted class A common stock earned	—		7,131		—		—		7,131		—		7,131
Dividends reinvested	—		160		—		—		160		—		160
Deferred directors’ compensation	—		172		—		—		172		—		172
Net income	—		—		—		6,969		6,969		15		6,984
Other comprehensive income	—		—		1,207		—		1,207		—		1,207
Dividends declared on common stock and deferred stock units, $0.47 per share	—		—		—		(80,796)		(80,796)		—		(80,796)
Balance at June 30, 2025	$1,716		$5,494,020		$9,798		$(1,888,762)		$3,616,772		$6,765		$3,623,537
Repurchases of class A common stock	(9)		(16,057)		—		—		(16,066)		—		(16,066)
Restricted class A common stock earned	—		7,130		—		—		7,130		—		7,130
Dividends reinvested	—		156		—		—		156		—		156
Deferred directors’ compensation	—		172		—		—		172		—		172
Net income	—		—		—		63,397		63,397		11		63,408
Other comprehensive loss	—		—		(478)		—		(478)		—		(478)
Dividends declared on common stock and deferred stock units, $0.47 per share	—		—		—		(80,381)		(80,381)		—		(80,381)
Distributions to non-controlling interests	—		—		—		—		—		(75)		(75)
Balance at September 30, 2025	$1,707		$5,485,421		$9,320		$(1,905,746)		$3,590,702		$6,701		$3,597,403

See accompanying notes to consolidated financial statements.

8

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

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	Nine Months Ended September 30,
	2026		2025
Cash flows from operating activities
Net (loss) income	$(415,252)		$70,041
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Non-cash compensation expense	20,039		21,570
Amortization of deferred fees on loans	(53,072)		(45,390)
Amortization of deferred financing costs and premiums/discounts on debt obligations	28,188		27,331
Payment-in-kind interest, net of interest received	6,849		(13,448)
Increase in current expected credit loss reserve	454,224		94,111
Valuation adjustment on loans receivable, held-for-sale	63,909		—
Straight-line rental income	(6,656)		(1,791)
Depreciation and amortization of owned real estate	63,704		47,960
Net loss on disposition of owned real estate	160		—
Impairment of owned real estate	36,371		—
Income from unconsolidated entities	(15,442)		(1,035)
Distributions of earnings from unconsolidated entities	26,235		—
Unrealized loss on derivative financial instruments, net	2,035		3,059
Realized gain on derivative financial instruments, net	(12,776)		(16,846)
Changes in assets and liabilities, net
Other assets	8,525		(33,599)
Other liabilities	9,442		(12,398)
Net cash provided by operating activities	216,483		139,565
Cash flows from investing activities
Principal fundings of loans receivable	(1,812,566)		(3,931,823)
Principal collections, sales proceeds, and cost-recovery proceeds from loans receivable	4,035,137		4,771,001
Origination and other fees received on loans receivable	29,458		46,882
Investment in debt securities	(144,380)		—
Payments under derivative financial instruments	(56,285)		(198,264)
Receipts under derivative financial instruments	65,035		96,102
Collateral deposited under derivative agreements	(208,230)		(391,380)
Return of collateral deposited under derivative agreements	198,740		396,190
Investment in unconsolidated entities	(186,183)		(178,664)
Return of capital from unconsolidated entities	32,594		—
Proceeds from disposition of owned real estate	15,148		—
Capital expenditures on owned real estate	(33,939)		(8,480)
Net cash provided by investing activities	1,934,529		601,564

continued…

See accompanying notes to consolidated financial statements.

9

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

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	Nine Months Ended September 30,
	2026		2025
Cash flows from financing activities
Borrowings under secured debt	$1,788,981		$2,956,828
Repayments under secured debt	(4,584,299)		(3,299,746)
Proceeds from issuance of securitized debt obligations	880,000		831,250
Repayments of securitized debt obligations	(371,300)		(193,342)
Borrowings under asset-specific debt	43,595		334,460
Repayments under asset-specific debt	(48,000)		(936,275)
Repayments of loan participations	—		(104,028)
Net proceeds from term loan borrowings	72,117		50,000
Repayments and repurchases of term loans	(9,619)		(6,310)
Proceeds from issuance of senior secured notes	450,000		—
Payment of deferred financing costs	(30,429)		(36,541)
Distributions to non-controlling interests	(2,682)		(212)
Dividends paid on class A common stock	(237,578)		(242,492)
Repurchases of class A common stock	(39,863)		(47,752)
Net cash used in financing activities	(2,089,077)		(694,160)
Net increase in cash and cash equivalents	61,935		46,969
Cash and cash equivalents at beginning of period	452,526		323,483
Effects of currency translation on cash and cash equivalents	(2,957)		7,469
Cash and cash equivalents at end of period	$511,504		$377,921
Supplemental disclosure of cash flows information
Payments of interest	$(627,492)		$(736,904)
Payments of income taxes	$(7,084)		$(3,424)
Supplemental disclosure of non-cash investing and financing activities
Dividends declared, not paid	$(78,015)		$(80,238)
Loan principal payments held by servicer, net	$129,402		$199,492
Transfer of senior loans to owned real estate	$254,235		$358,088
Assumption of other assets and liabilities related to owned real estate	$19,654		$48,184
Accrued capital expenditures on owned real estate	$973		$19

See accompanying notes to consolidated financial statements.

10

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (Unaudited)

1. ORGANIZATION

References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us” or “our” refer to Blackstone Mortgage Trust,

Inc., a Maryland corporation, and its subsidiaries unless the context specifically requires otherwise.

Blackstone Mortgage Trust is a real estate finance company that originates, acquires, and manages senior loans and other

debt or credit-oriented investments collateralized by or relating to commercial real estate in North America, Europe, and

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 secured credit facilities, issuing collateralized loan obligations,

or CLOs, other securitization transactions, syndicating senior loans and/or participations, and other forms of asset-level

financing, depending on our view of the most prudent financing option available for each of our investments. We are

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

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

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

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.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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

instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated financial statements, including the notes

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

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

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

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

other interim period or for the entire year. The accompanying unaudited consolidated interim financial statements should

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

the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission, or the SEC.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with GAAP, and include, on a

consolidated basis, our accounts, the accounts of our wholly-owned subsidiaries, majority-owned subsidiaries, and variable

interest entities, or VIEs, of which we are the primary beneficiary. All intercompany balances and transactions have been

eliminated in consolidation.

Certain prior period amounts have been reclassified to conform to the current period presentation, including changes to the

presentation of certain income and expense captions and loans receivable disclosures.

Principles of Consolidation

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

all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do

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

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

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

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

obligation to absorb losses of the VIE that could be significant to the VIE. Entities that do not qualify as VIEs are generally

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

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

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

For consolidated entities, the non-controlling partner’s share of the assets, liabilities, and operations of each joint venture is

included in non-controlling interests as a component of total equity. The non-controlling partner’s interest is generally

computed as the joint venture partner’s ownership percentage.

When the requirements for consolidation are not met and we have significant influence over the operations of the entity, the

investment is accounted for under the equity method of accounting. Investments in unconsolidated entities for which we

have not elected the fair value option, or FVO, are initially recorded at cost and subsequently adjusted for our pro rata share

of net income, contributions and distributions. When we elect the FVO, we record our share of the net asset value of the

entity and any related unrealized gains and losses.

We review our investments in unconsolidated entities for impairment each quarter or when there is an event or change in

circumstances that indicates a decrease in value. If there is a decrease in value due to a series of operating losses or other

factors, the investment is evaluated to determine if the loss in value is considered other than temporary. Although a current

fair value below the carrying value of the investment is an indicator of impairment, we will only recognize an impairment

if the loss in value is determined to be an other than temporary impairment. If an impairment is determined to be other than

temporary, we will record an impairment charge sufficient to reduce the investment’s carrying value to its fair value, which

would result in a new cost basis. This new cost basis will be used for future periods when recording subsequent income or

loss and cannot be written up to a higher value as a result of increases in fair value.

In 2017, we entered into a joint venture with Walker & Dunlop Inc., or Walker & Dunlop, to originate, hold, and finance

multifamily bridge loans, which we refer to as our Multifamily Joint Venture. Pursuant to the terms of the agreements

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

We consolidate our Multifamily Joint Venture as we have a controlling financial interest. The non-controlling interests

included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are owned

by Walker & Dunlop. A portion of our Multifamily Joint Venture’s consolidated equity and results of operations are

allocated to these non-controlling interests based on Walker & Dunlop’s pro rata ownership of our Multifamily Joint

Venture.

In 2024, we entered into a joint venture with a Blackstone-advised investment vehicle to invest in triple net lease

properties, which we refer to as our Net Lease Joint Venture. Our aggregate ownership interest in our Net Lease Joint

Venture was 75% as of September 30, 2026. We do not consolidate our Net Lease Joint Venture as we do not have a

controlling financial interest. Our investment in our Net Lease Joint Venture is accounted for under the equity method, and

is recorded in investments in unconsolidated entities on our consolidated balance sheets, and our pro rata share of income

(loss) is recorded in income (loss) from unconsolidated entities on our consolidated statements of operations.

In 2025, we entered into a joint venture with a Blackstone-advised investment vehicle to acquire portfolios of performing

commercial mortgage loans, which we refer to as our Bank Loan Portfolio Joint Venture. During 2025, our Bank Loan

Portfolio Joint Venture acquired two portfolios of performing commercial mortgage loans. Our aggregate ownership

interest in our Bank Loan Portfolio Joint Venture was 35% as of September 30, 2026. We do not consolidate our Bank

Loan Portfolio Joint Venture as we do not have a controlling financial interest. Our investment in our Bank Loan Portfolio

Joint Venture is accounted for using the FVO, and is recorded in investments in unconsolidated entities on our consolidated

balance sheets, and our pro rata share of any unrealized gains and losses is recorded in income (loss) from unconsolidated

entities on our consolidated statements of operations.

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

advised investment vehicle, to originate, acquire, and fund construction loans collateralized by single family homes located

in various markets across the United States, which we refer to as ourHomebuilder Finance Joint Venture. Our aggregate

ownership interest in our Homebuilder Finance Joint Venture was 45% as of September 30, 2026. We do not consolidate

our Homebuilder Finance Joint Venture as we do not have a controlling financial interest. Our investment in our

Homebuilder Finance Joint Venture is accounted for using the FVO, and is recorded in investments in unconsolidated

entities on our consolidated balance sheets, and our pro rata share of any unrealized gains and losses is recorded in income

(loss) from unconsolidated entities on our consolidated statements of operations.

Use of Estimates

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

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

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

period. Actual results may ultimately differ materially from those estimates.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Revenue Recognition

Interest income from our loans receivable portfolio is recognized over the life of each loan using the effective interest

method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these

investments is deferred and recorded over the term of the loan as an adjustment to yield.Income accrual is generally

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

of income and principal becomes doubtful. Interest received is then recorded as income or as a reduction in the amortized

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

current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses

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

in general and administrative expenses as incurred.

The sources of revenue from our owned real estate assets, which are included in revenue from owned real estate on our

consolidated statements of operations, and the related revenue recognition policies are as follows:

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 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.

Revenue from our hospitality properties consists primarily of room revenue and food and beverage revenue. Room revenue

is recognized when the related room is occupied and other hospitality revenue is recognized when the service is rendered.

Tenant reimbursement income primarily consists of amounts due from tenants for costs related to common area

maintenance, real estate taxes, and other recoverable costs included in lease agreements.

We evaluate the collectability of receivables related to rental revenue on an individual lease basis and exercise judgment in

assessing collectability considering the length of time a receivable has been outstanding, tenant creditworthiness, payment

history, available information about the financial condition of the tenant, and current economic trends, among other factors.

Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue.

Cash and Cash Equivalents

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

less. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash

equivalents with high credit-quality institutions to minimize credit risk exposure. We have not experienced, and do not

expect, any losses on our cash or cash equivalents. As of both September 30, 2026 and December 31, 2025, we hadno

restricted cash on our consolidated balance sheets.

Loans Receivable, Held-For-Investment

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

investments at amortized cost.

Current Expected Credit Losses Reserve

The current expected credit loss, or CECL, reserve required under the ASC Topic 326 “Financial Instruments – Credit

Losses,” or ASC 326, reflects our current estimate of potential credit losses related to our loans and notes receivable

included in our consolidated balance sheets. Changes to the CECL reserves are recognized through net income on our

consolidated statements of operations. While ASC 326 does not require any particular method for determining the CECL

reserves, it does specify the reserves should be based on relevant information about past events, including historical loss

experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each

respective loan. In addition, other than a few narrow exceptions, ASC 326 requires that all financial instruments subject to

the CECL model have some amount of loss reserve to reflect the principle underlying the CECL model that all loans and

similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors.

We estimate our CECL reserves primarily using the Weighted-Average Remaining Maturity, or WARM method, which

has been identified as an acceptable loss-rate method for estimating CECL reserves in FASB Staff Q&A Topic 326, No. 1.

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

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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

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

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

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

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

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

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

estimate the historical loan losses relevant to our portfolio, we have augmented our historical loan performance with market

loan loss data licensed from Trepp LLC. This database includes commercial mortgage-backed securities, or CMBS, issued

since January 1, 1999 through August 31, 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 portfolio.

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

future funding commitments are also subject to the CECL model. The CECL reserve related to future loan fundings is

recorded as a component of other liabilities on our consolidated balance sheets. This CECL reserve is estimated using the

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

similarly impact our consolidated net income. For both the funded and unfunded portions of our loans, we consider our

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

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

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

•U.S. Loans: WARM method that incorporates a subset of historical loss data, expected weighted-average

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

•Non-U.S. Loans: WARM method that incorporates a subset of historical loss data, expected weighted-average

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

•Unique Loans: a probability of default and loss given default model, assessed on an individual basis. During the

three months ended June 30, 2026, we reassessed the pooling of certain loans previously classified within our

Unique Loans pool. Based on our reassessment, we determined that these loans share risk characteristics

materially similar to loans in our U.S. Loans and Non-U.S. Loans pools, as evaluated under our internal risk rating

framework. Accordingly, consistent with ASC 326, which requires assets with similar risk characteristics to be

evaluated on a collective basis wherever similar risk characteristics exist within a pool of similar assets, we have

reclassified these loans into our U.S. Loans and Non-U.S. Loans pools, as applicable based on the geographic

location of the underlying collateral. This reclassification did not have a material impact on our total CECL

reserves as of September 30, 2026.

•Impaired Loans:Impairment is indicated when it is deemed probable that we will not be able to collect all

amounts due to us pursuant to the contractual terms of the loan. Determining that a loan is impaired requires

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

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

the borrower’s ability to pay the contractual amounts due under the terms of the loan. If a loan is determined to be

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

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

the estimated fair value of the underlying collateral 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, 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.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Contractual Term and Unfunded Loan Commitments

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

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

the contractual term for purposes of computing our CECL reserves.

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.

Credit Quality Indicator

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

quarterly risk review of our portfolio of loans, and assign each loan a risk rating based on a variety of factors, including,

without limitation, origination LTV, debt yield, property type, geographic and local market dynamics, physical condition,

cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a 5-point

scale, our loans are rated “1” through “5,” from less risk to greater risk, relative to our loan portfolio in the aggregate,

which ratings are defined as follows:

1 -Very Low Risk

2 -Low Risk

3 -Medium Risk

4 -High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss.

5 -Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a

principal loss.

Estimation of Economic Conditions

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

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

commercial real estate assets securing our loans. These estimations include unemployment rates, interest rates, expectations

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

losses for our loans during their anticipated term. In addition to the CMBS data we have licensed from Trepp LLC, we

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

economic conditions may have on our loan portfolio’s performance. We generally also incorporate information from other

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

requires significant judgments about future events that, while based on the information available to us as of the balance

sheet date, are ultimately indeterminate and the actual economic condition impacting our portfolio could vary significantly

from the estimates we made as of September 30, 2026.

Loans Receivable, Held-For-Sale

Loans that are under contract to be sold or otherwise disposed of in the foreseeable future are classified as held-for-sale and

carried at the lower of amortized cost or fair value. Any difference between amortized cost and fair value is recognized

through valuation adjustment on loans receivable, held-for-sale in our consolidated statements of operations.

Owned Real Estate

We may assume legal title, physical possession, or control 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 owned real estate 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,” or ASC 805.

Upon acquisition of owned real estate assets, 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

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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, 15 years for land improvements, and 10 years for building and 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 is 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 exceeds 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.Refer to Note 4

for further information.

During the three months ended September 30, 2026, we recognized $36.4 million of impairment charges related to three

owned real estate assets, which resulted from changes in the expected hold period. The aggregate fair value of such assets

at the time of impairment was $141.9 million, and was estimated utilizing a discounted cash flow methodology. The owned

real estate assets were measured at fair value on a nonrecurring basis using significant unobservable inputs and are

classified as Level 3 assets in the fair value hierarchy. The significant unobservable inputs utilized in the analysis were the

exit capitalization rate, which ranged from 6.0% to 8.5%, and the unlevered discount rate, which ranged from 8.0% to

14.0%.

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 costs to sell. If circumstances arise and we decide not to

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

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

sale, adjusted for depreciation expense that would have been recognized had the real estate been classified as held for

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

As of September 30, 2026 and December 31, 2025, we had 15 and 12 owned real estate assets, respectively, that were all

classified as held for investment.

Agency Multifamily Lending Partnership

In 2024, we entered into an agreement with M&T Realty Capital Corporation, or MTRCC, a subsidiary of M&T Bank, that

allows our borrowers to access multifamily agency financing through MTRCC’s Fannie Mae DUS and Freddie Mac

Optigo lending platforms, or our Agency Multifamily Lending Partnership. We will receive a portion of origination,

servicing, and other fees for loans that we refer to MTRCC for origination under both the Fannie Mae and Freddie Mac

programs. Additionally, we will share in losses with MTRCC and Fannie Mae on loans that we refer to MTRCC for

origination under the Fannie Mae program.

Revenue Recognition

For loans that we refer to MTRCC for origination under both the Fannie Mae and Freddie Mac programs, we recognize our

allocable portion of origination, servicing, and other fees in other income when we have satisfied our performance

obligations in accordance with the ASC Topic 606, “Revenue from Contracts with Customers,” or ASC 606. Our

performance obligations are generally satisfied when the loan is referred by us to MTRCC and subsequently originated and

sold under the Fannie Mae and Freddie Mac programs. A portion of the fees recognized, such as servicing fees, are variable

and are reevaluated for collectability on a recurring basis.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Loss-sharing Obligation

Pursuant to our agreement with MTRCC, we are subject to a loss-sharing obligation with respect to MTRCC’s obligation

to partially guarantee the performance of loans that they originate and sell under the Fannie Mae program. This loss-

sharing agreement requires us to fund a fixed amount of cash into a segregated account based on the amount MTRCC is

required to fund under the Fannie Mae program, with respect to loans we referred to MTRCC.

In addition, we will recognize a liability for these loss-sharing obligations. This liability will be initially recognized at fair

value with a corresponding expense at inception, and it will subsequently be amortized on a straight-line basis over the life

of the loss-sharing obligation. This liability is included within other liabilities in our consolidated balance sheets.As of

September 30, 2026, our maximum loss-sharing obligation associated with the loans referred by us to MTRCC under the

Fannie Mae program was $5.5 million, and we have recorded related liabilities of $29 thousand. There have been no losses

incurred as a result of the loss-sharing obligations.

Derivative Financial Instruments

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

at fair value.

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

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

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

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

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

designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the

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

effectiveness of its hedged transaction.

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

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

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

changes in fair value of the instrument are included in net income prospectively. Our net investment hedges are assessed

using a method based on changes in spot exchange rates. Gains and losses, representing hedge components excluded from

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

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

in accordance with our accounting policy election. All other changes in the fair value of our derivative instruments that

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

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

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

same line item as the earnings effect of the hedged item. For cash flow hedges, this is typically when the periodic swap

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

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

fair value are included in net income concurrently.

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

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

Debt Securities

We have elected the FVO for our debt securities, which are included in other assets on our consolidated balance sheets.

Refer to Note 6 for further information.

Secured Debt and Asset-Specific Debt

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

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

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

separately on our consolidated statements of operations.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Term Loans

We record our term loans as liabilities on our consolidated balance sheets. Where applicable, any issue discount or

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

expense.

Senior Secured Notes

We record our senior secured notes as liabilities on our consolidated balance sheets. Where applicable, any issue discount

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

cash interest expense.

Convertible Notes

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

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

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

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

convertible notes as additional non-cash interest expense.

Deferred Financing Costs

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

consolidated balance sheets include issuance and other costs related to our debt obligations. These costs are amortized as

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

Underwriting Commissions and Offering Costs

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

reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common

stock offering are expensed when incurred.

Fair Value Measurements

The ASC Topic 820, “Fair Value Measurements and Disclosures,” or ASC 820, defines fair value, establishes a framework

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

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

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

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

measuring financial instruments. Market price observability is affected by a number of factors, including the type of

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

existence and transparency of transactions between market participants. Financial instruments with readily available quoted

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

used in measuring fair value.

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

used in the determination, as follows:

•Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical

financial instruments as of the reporting date.

•Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active

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

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

•Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if

any, market activity for the financial instrument. These inputs require significant judgment or estimation by

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

criteria of Levels 1 and 2.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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

nonrecurring basis, as a result of impairment or other events. Our assets that are recorded at fair value are discussed further

in Note 18. We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on

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

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

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

We have elected the FVO for two of our investments in unconsolidated entities, our Bank Loan Portfolio Joint Venture and

Homebuilder Finance Joint Venture, and therefore report these investments at fair value. Given the fair value of these

investments is not readily determinable, the net asset value of the entities is used as a practical expedient.

As of September 30, 2026, we had an aggregate $444.5 million asset-specific CECL reserve related to 12 of our loans

receivable with an aggregate amortized cost basis of $1.3 billion, net of cost-recovery proceeds. The CECL reserve was

recorded based on our estimation of the fair value of the loans' aggregate underlying collateral as of September 30, 2026.

These loans receivable are therefore measured at fair value on a nonrecurring basis using significant unobservable inputs,

and are classified as Level 3 assets in the fair value hierarchy. We estimated the fair value of the collateral underlying the

loans receivable using a discounted cash flow methodology that considered a variety of inputs including property

performance, market data, and comparable sales, as applicable. The significant unobservable inputs utilized in the analysis

include the exit capitalization rate assumption used to forecast the future sale price of the underlying real estate collateral,

which ranged from 4.9% to 8.8%, and the unlevered discount rate assumption, which ranged from 9.0% to 15.0%.

During the nine months endedSeptember 30, 2026, we acquired legal title to three owned real estate assets through

foreclosure or deed-in-lieu of foreclosure transactions. At the time of each acquisition, we determined the fair value of the

real estate assets based on a variety of inputs, as applicable, including, but not limited to, estimated cash flow projections,

leasing assumptions, required capital expenditures, market data, and comparable sales. The owned real estate assets were

measured at fair value on a nonrecurring basis using significant unobservable inputs and are classified as Level 3 assets in

the fair value hierarchy. The significant unobservable inputs employed include (i) the exit capitalization rate assumption

used to forecast the future sale price of the assets, which ranged from 5.8% to 7.5%, and (ii) the unlevered discount rate

assumption, which ranged from 8.0% to 11.0%. Refer to Notes 4 and 18 for further information.

We are also required by GAAP to disclose fair value information about financial instruments, which are not otherwise

reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those

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

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

it is practicable to estimate that value:

•Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates fair value.

•Loans receivable, held-for-investment, net: The fair values of these loans were estimated using a discounted cash

flow methodology, taking into consideration various factors including capitalization rates, discount rates, leasing,

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

actions of other lenders, and other factors.

•Loans receivable, held-for-sale: The fair values of these loans were estimated using executed sale agreements.

•Derivative financial instruments: The fair value of our foreign currency and interest rate contracts was estimated

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

comprising foreign currency rates and credit spreads.

•Secured debt, net and other secured debt: The fair value of these instruments was estimated based on the rate at

which a similar credit facility would currently be priced. Other secured debt is included in other liabilities in our

consolidated balance sheets.

•Securitized debt obligations, net: The fair value of these instruments was estimated by utilizing third-party pricing

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

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

reported price.

19

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

•Asset-specific debt, net: The fair value of these instruments was estimated based on the rate at which a similar

agreement would currently be priced.

•Term loans, net: The fair value of these instruments was estimated by utilizing third-party pricing service

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

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

price.

•Senior secured notes, net: The fair value of these instruments was estimated by utilizing third-party pricing service

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

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

price.

•Convertible notes, net: Each series of the convertible notes is actively traded and their fair values were obtained

using quoted market prices.

Income Taxes

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

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

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

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

penalties. Refer to Note 16 for further information.

Stock-Based Compensation

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

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

units issued to certain members of our board of directors. Stock-based compensation expense is recognized for these

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

common stock. Refer to Note 17 for further information.

Earnings per Share

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

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

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

stock and deferred stock units outstanding during the period. Our restricted class A common stock is considered a

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

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

losses.

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

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

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

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

stock units, and shares of class A common stock issuable under our convertible notes. Refer to Note 14 for further

discussion of earnings per share.

Foreign Currency

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

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

operations. In addition, we consolidate entities that have a non-U.S. dollar functional currency. Non-U.S. dollar-

denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and

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

translation adjustments arising from the translation of non-U.S. dollar-denominated subsidiaries are recorded in other

comprehensive income (loss).

20

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Recent Accounting Pronouncements

In December 2025, the FASB issued Accounting Standards Update, or ASU, 2025-11, “Interim Reporting (Topic 270):

Narrow-Scope Improvements,” which amends the guidance in ASC 270, Interim Reporting. The update enhances interim

disclosure requirements by clarifying the information that must be presented in quarterly periods, including improved

transparency regarding significant events, accounting policy updates, and material developments that occur between annual

reporting dates. ASU 2025-11 also aligns certain interim reporting requirements more closely with annual disclosure

objectives to promote consistency and comparability. The amendments are effective for interim periods beginning after

December 15, 2027, and early adoption is permitted. We have not early adopted ASU 2025-11 and do not expect the

adoption of ASU 2025-11 to have a material impact on our consolidated financial statements.

In November 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting

Improvements,” which amends the guidance in ASC 815, Derivatives and Hedging. The update refines certain hedge

accounting requirements, including clarifications to the designation and documentation criteria for hedge relationships,

improvements to the assessment of hedge effectiveness, and enhanced disclosures intended to provide greater transparency

into an entity’s risk management activities involving derivatives. ASU 2025-09 is effective for annual periods beginning

after December 15, 2026, including interim periods within those annual periods, and early adoption is permitted. We have

not early adopted ASU 2025-09 and do not expect the adoption of ASU 2025-09 to have a material impact on our

consolidated financial statements.

In November 2025, the FASB issued ASU 2025-08, “Financial Instruments—Credit Losses (Topic 326): Purchased

Loans,” which clarifies the application of the CECL model to purchased loans, including purchased credit‑deteriorated

loans, and enhances related disclosure requirements. ASU 2025-08 is effective for annual reporting periods beginning after

December 15, 2026, including interim periods within those annual periods. Early adoption is permitted. We have not early

adopted ASU 2025-08 and do not expect the adoption of ASU 2025-08 to have a material impact on our consolidated

financial statements.

In July 2025, the FASB issued ASU 2025-05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit

Losses for Accounts Receivable and Contract Assets,” which amends the guidance in ASC 326. This update provides a

practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract

assets that arise from transactions accounted for under ASC 606. The amendment notes that in developing reasonable and

supportable forecasts as part of estimating expected credit losses, all entities may elect a practical expedient that assumes

that current conditions as of the balance sheet date do not change for the remaining life of the asset. ASU 2025-05 is

effective for annual periods beginning after December 15, 2025, including interim periods within those annual periods, and

early adoption is permitted. We recognize revenue from our Agency Multifamily Lending Partnership and income from our

hospitality owned real estate assets pursuant to ASC 606. The adoption of ASU 2025-05 in 2026 did not have a material

impact on our consolidated financial statements.

In May 2025, the FASB issued ASU 2025-03, “Business Combinations (Topic 805) and Consolidation (Topic 810):

Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity,” which amends the guidance in ASC

805. This update clarifies the determination of the accounting acquirer in business combinations that are primarily effected

through the exchange of equity interests and involve the acquisition of a VIE. Specifically, entities are now required to

consider the factors outlined in ASC 805-10-55-12 through 55-15 when determining the accounting acquirer, rather than

defaulting to the primary beneficiary of the VIE as the accounting acquirer. ASU 2025-03 is effective for annual periods

beginning after December 15, 2026, including interim periods within those annual periods, and early adoption is permitted.

We have not early adopted ASU 2025-03 and do not expect the adoption of ASU 2025-03 to have a material impact on our

consolidated financial statements.

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

Conversions of Convertible Debt Instruments,” or ASU 2024-04. ASU 2024-04 clarifies the accounting treatment for

settlement of a convertible debt instrument as an induced conversion. ASU 2024-04 is effective on a prospective basis,

with the option for retrospective application, for fiscal years beginning after December 15, 2025. The adoption of ASU

2024-04 in 2026 did not have a material impact on our consolidated financial statements.

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

Disaggregation of Income Statement Expenses,” or ASU 2024-03. ASU 2024-03 requires disclosures in the notes to the

financial statements on specified information about certain costs and expenses for each interim and annual reporting period.

ASU 2024-03 is effective on a prospective basis, with the option for retrospective application, for annual periods beginning

after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027, and early

21

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

adoption is permitted. We have not early adopted ASU 2024-03 and do not expect the adoption of ASU 2024-03 to have a

material impact on our consolidated financial statements.

3. LOANS RECEIVABLE

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

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Loans receivable, held-for-investment		September 30, 2026		December 31, 2025
Number of loans		114		131
Principal balance		$14,612,118		$18,154,768
Deferred fees, cost-recovery proceeds, and other items		(48,284)		(85,634)
Amortized cost basis		14,563,834		18,069,134
CECL reserves		(597,324)		(284,440)
Net book value		$13,966,510		$17,784,694
Unfunded loan commitments(1)		$915,385		$1,185,004
Weighted-average cash coupon(2)		+ 3.08%		+ 3.19%
Weighted-average all-in yield(2)		+ 3.43%		+ 3.39%
Weighted-average maximum maturity (years)(3)		3.0		2.5
Loans receivable, held-for-sale		September 30, 2026		December 31, 2025
Number of loans		10		—
Principal balance		$761,081		$—
Deferred fees, cost-recovery proceeds, and other items		(19,650)		—
Amortized cost basis		741,431		—
Asset-specific CECL reserves prior to transfer to loans receivable, held-for-sale		(61,947)		—
Carrying value, prior to transfer to loans receivable, held-for-sale		679,484		—
Valuation adjustment		(63,909)		—
Net book value		$615,575		$—
Unfunded loan commitments(1)		$35,585		$—
Weighted-average cash coupon(2)		+ 2.83%		n/a
Weighted-average all-in yield(2)		+ 3.11%		n/a
Weighted-average maximum maturity (years)(3)		1.8		n/a

(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 loan. As of

September 30, 2026, 96% of our loans held-for-investment by principal balance earned a floating rate of interest,

primarily indexed to SOFR. The remaining 4% of our loans held-for-investment by principal balance earned a fixed

rate of interest. As of December 31, 2025, 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.In

addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan

origination costs, and purchase discounts, as well as the accrual of exit fees.Excludes loans accounted for under the

cost-recovery and nonaccrual methods, if any.

(3)Maximum maturity assumes all extension options are exercised by the borrower; however, our loans may be repaid

prior to such date. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any. As of

September 30, 2026, 44% of our loans held-for-investment by principal balance were subject to yield maintenance

or other prepayment restrictions and 56%were open to repayment by the borrower without penalty. As of

December 31, 2025, 40% of our loans by principal balance were subject to yield maintenance or other prepayment

restrictions and 60% were open to repayment by the borrower without penalty.

22

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Loan Sales

During the three months ended September 30, 2026, we entered into an agreement to sell eight whole mortgage loans to an

unaffiliated third party for total estimated net sales proceeds of $615.6 million, which resulted in these loans being

classified as loans receivable, held-for-sale on our consolidated balance sheets as of September 30, 2026. This resulted in a

$63.9 million valuation adjustment recognized to reduce the carrying value of these loans, which was $679.5 million prior

to the adjustment. Two of the whole loans consisted of both a performing senior loan and an impaired subordinate loan.

The two subordinate loans carried $61.9 million of previously recorded asset-specific CECL reserves. Six of the whole

loans were collateralized by office assets and two were collateralized by multifamily assets, all of which were located in the

United States. The valuation adjustment was included in valuation adjustment on loans receivable, held-for-sale on our

consolidated statements of operations during the three months ended September 30, 2026. The sale of these loans closed

subsequent to September 30, 2026.

The following table details the index rate floors for our loans receivable, held-for-investment portfolio as of September 30,

2026 ($ in thousands):

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		Loans Receivable Principal Balance
Index Rate Floors		USD		Non-USD(1)		Total
Fixed Rate		$399,485		$135,303		$534,788
0.00% or no floor(2)		1,199,356		3,203,643		4,402,999
0.01% to 1.00% floor		649,822		819,567		1,469,389
1.01% to 2.00% floor		778,083		1,042,018		1,820,101
2.01% to 3.00% floor		5,343,828		408,157		5,751,985
3.01% or more floor		325,141		307,715		632,856
Total(3)		$8,695,715		$5,916,403		$14,612,118

(1)Includes Euro, British Pound Sterling, Australian Dollar, and Canadian Dollar currencies.

(2)Includes all impaired loans.

(3)As of September 30, 2026, the weighted-average index rate floor of our floating-rate loans receivable, held-for-

investment principal balance was 1.73%. Excluding 0.00% index rate floors and loans with no floor, the weighted-

average index rate floor was 2.28%.

23

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Activity relating to our loans receivable, held-for-investment portfolio was as follows ($ in thousands):

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	Net Book Value
Loans Receivable, held-for-investment, as of December 31, 2025	$18,069,134
Loan fundings	1,814,853
Loan repayments, sales, and cost-recovery proceeds(1)	(4,110,720)
Charge-offs(2)	(83,695)
Transfer to owned real estate	(254,235)
Transfer to other assets, net(3)	(19,654)
Transfer to held-for-sale	(741,431)
Payment-in-kind interest, net of interest received(4)	(6,849)
Unrealized loss on foreign currency translation	(128,194)
Deferred fees and other items(5)	(28,447)
Amortization of fees and other items(5)	53,072
Loans Receivable, held-for-investment, as of September 30, 2026	$14,563,834
CECL reserve	(597,324)
Loans Receivable, held-for-investment, net, as of September 30, 2026	$13,966,510

(1)Included in this amount are sales of $251.5 million of pari passu participations in two loans collateralized by

properties located in the United Kingdom.

(2)Excludes a $1.8 million recovery of amounts previously charged off related to a note receivable issued in 2024 that

is no longer reflected on our consolidated balance sheets. The recovery is reflected in our consolidated statements of

operations in the increase in current expected credit loss reserve and is not included in the activity presented above.

(3)This amount relates to intangible and other assets recorded in connection with a loan that was transferred to owned

real estate, net of any liabilities recorded upon acquisition. See Note 6 for further information.

(4)During the nine months endedSeptember 30, 2026, we received $19.2 million of previously accrued payment-in-

kind interest upon repayment of a loan.

(5)Other items primarily consist of purchase and sale discounts or premiums, exit fees, and deferred origination

expenses.

24

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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

receivable, held-for-investment portfolio ($ in thousands):

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September 30, 2026
Property Type		Number of Loans		Amortized Cost Basis		Net Loan Exposure(1)		Net Loan Exposure Percentage of Portfolio
Multifamily		40		$3,727,833		$3,554,715		27%
Industrial		22		3,401,395		3,098,208		24
Office		26		3,744,197		3,072,211		23
Hospitality		9		1,652,297		1,543,115		12
Retail		7		699,743		614,238		5
Self-storage		3		641,302		478,569		4
Life Sciences / Studio		4		284,965		249,943		2
Other		3		412,102		409,735		3
Total loans receivable, held-for-investment		114		$14,563,834		$13,020,734		100%
Geographic Location		Number of Loans		Amortized Cost Basis		Net Loan Exposure(1)		Net Loan Exposure Percentage of Portfolio
United States
Sunbelt		39		$4,240,979		$3,453,232		27%
Northeast		19		2,145,361		1,935,347		15
West		14		1,089,613		981,904		7
Midwest		6		635,803		505,444		4
Northwest		3		485,964		481,046		4
Subtotal		81		8,597,720		7,356,973		57
International
United Kingdom		15		2,188,989		2,169,823		17
Australia		4		1,220,183		1,208,859		9
Spain		2		635,864		630,956		5
Ireland		3		485,784		475,703		4
Canada		1		439,151		277,484		2
Other Europe		7		934,763		840,229		6
Other International		1		61,380		60,707		—
Subtotal		33		5,966,114		5,663,761		43
Total loans receivable, held-for-investment		114		$14,563,834		$13,020,734		100%

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

2026, which is our principal balance of loans receivable, held-for-investment, net of (i) $989.5 million of asset-

specific debt, (ii) $4.6 million of cost-recovery proceeds, and (iii) our total loans receivable CECL reserve of

$597.3 million. Our asset-specific debt is structurally non-recourse and term-matched to the corresponding collateral

loans.

25

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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December 31, 2025
Property Type		Number of Loans		Amortized Cost Basis		Net Loan Exposure(1)		Net Loan Exposure Percentage of Portfolio
Office		37		$4,879,422		$4,556,980		27%
Multifamily		46		4,457,767		4,305,534		26
Industrial		21		4,458,487		4,114,141		24
Hospitality		12		1,940,693		1,827,133		11
Retail		6		674,612		596,204		3
Self-storage		3		659,515		492,376		3
Life Sciences / Studio		4		284,079		277,373		2
Other		2		714,559		676,293		4
Total loans receivable, held-for-investment		131		$18,069,134		$16,846,034		100%
Geographic Location		Number of Loans		Amortized Cost Basis		Net Loan Exposure(1)		Net Loan Exposure Percentage of Portfolio
United States
Sunbelt		45		$4,715,039		$3,918,928		23%
West		23		1,963,032		1,872,531		11
Northeast		17		1,893,877		1,800,387		11
Midwest		6		619,726		609,433		4
Northwest		3		457,215		454,507		3
Subtotal		94		9,648,889		8,655,786		52
International
United Kingdom		19		3,595,424		3,582,983		21
Ireland		3		1,141,770		1,135,749		7
Australia		4		1,104,765		1,110,648		7
Spain		2		684,109		638,112		4
Sweden		1		502,124		500,917		3
Canada		1		455,407		288,504		2
Other Europe		6		875,579		872,527		4
Other International		1		61,067		60,808		—
Subtotal		37		8,420,245		8,190,248		48
Total loans receivable, held-for-investment		131		$18,069,134		$16,846,034		100%

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

2025, which is our principal balance net of (i) $999.8 million of asset-specific debt, (ii) $24.5 million of cost-

recovery proceeds, and (iii) our total loans receivable CECL reserve of $284.4 million. Our asset-specific debt is

structurally non-recourse and term-matched to the corresponding collateral loans.

26

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Loan Risk Ratings

As further described in Note 2, we evaluate our loans receivable, held-for-investment portfolio on a quarterly basis. In

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

on several factors. Factors considered in the assessment include, but are not limited to, risk of loss, origination LTV, debt

yield, collateral performance, structure, exit plan, and sponsorship. Loans are rated “1” (less risk) through “5” (greater

risk), which ratings are defined in Note 2.

The following tables allocate the amortized cost basis and net loan exposure balances of our loans receivable, held-for-

investment portfolio based on our internal risk ratings ($ in thousands):

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		September 30, 2026
Risk Rating		Number of Loans		Amortized Cost Basis		Net Loan Exposure(1)
1		1		$60,952		$60,986
2		17		1,970,144		1,802,276
3		76		10,314,438		9,414,183
4		8		893,154		864,194
5		12		1,325,146		879,095
Total loans receivable, held-for-investment		114		$14,563,834		$13,020,734
		December 31, 2025
Risk Rating		Number of Loans		Amortized Cost Basis		Net Loan Exposure(1)
1		3		$303,971		$302,564
2		20		2,875,870		2,704,222
3		85		11,907,947		11,045,913
4		17		2,806,758		2,705,706
5		6		174,588		87,629
Total loans receivable, held-for-investment		131		$18,069,134		$16,846,034

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

2026, which is our principal balance of loans receivable, held-for-investment, net of (i) $989.5 million of asset-

specific debt, (ii) $4.6 million of cost-recovery proceeds, and (iii) our total loans receivable CECL reserve of

$597.3 million. Our net loan exposure as of December 31, 2025 is our principal balance net of (i) $999.8 million of

asset-specific debt, (ii) $24.5 million of cost-recovery proceeds, and (iii) our total loans receivable CECL reserve of

$284.4 million. Our asset-specific debt is structurally non-recourse and term-matched to the corresponding collateral

loans.

Our loans receivable, held-for-investment portfolio had a weighted-average risk rating of3.1 and 3.0, based on net loan

exposure,as of September 30, 2026 and December 31, 2025, respectively.

27

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Current Expected Credit Loss Reserve

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

receivable, held-for-investment portfolio included in our consolidated balance sheets. Refer to Note 2 for further discussion

of our CECL reserves. The following table presents the activity in our loans receivable CECL reserves by investment pool

for the three and nine months endedSeptember 30, 2026 and 2025 ($ in thousands):

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Loans Receivable, Held-for-Investment, Net		U.S. Loans(1)		Non-U.S. Loans		Unique Loans		Impaired Loans		Total
CECL reserves as of December 31, 2025		$101,180		$45,470		$50,465		$87,325		$284,440
Increase (decrease) in CECL reserves		15,673		(6,305)		182		44,051		53,601
Charge-offs of CECL reserves		—		—		—		(46,451)		(46,451)
CECL reserves as of March 31, 2026		$116,853		$39,165		$50,647		$84,925		$291,590
Increase (decrease) in CECL reserves		980		21,358		(50,647)		163,174		134,865
Charge-offs of CECL reserves		—		—		—		(28,620)		(28,620)
CECL reserves as of June 30, 2026		$117,833		$60,523		$—		$219,479		$397,835
(Decrease) increase in CECL reserves		(25,881)		394		—		293,797		268,310
Charge-offs of CECL reserves		—		—		—		(6,874)		(6,874)
Transfer to loans receivable, held-for-sale(2)		—		—		—		(61,947)		(61,947)
CECL reserves as of September 30, 2026		$91,952		$60,917		$—		$444,455		$597,324
CECL reserves as of December 31, 2024		$80,057		$26,141		$47,087		$580,651		$733,936
Increase in CECL reserves		17,604		13,796		1,477		16,552		49,429
Charge-offs of CECL reserves		—		—		—		(41,824)		(41,824)
CECL reserves as of March 31, 2025		$97,661		$39,937		$48,564		$555,379		$741,541
(Decrease) increase in CECL reserves		(6,759)		(1,568)		4,249		48,445		44,367
Charge-offs of CECL reserves		—		—		—		(45,057)		(45,057)
CECL reserves as of June 30, 2025		$90,902		$38,369		$52,813		$558,767		$740,851
Increase (decrease) in CECL reserves		5,134		3,302		(207)		(11,250)		(3,021)
Charge-offs of CECL reserves		—		—		—		(42,111)		(42,111)
CECL reserves as of September 30, 2025		$96,036		$41,671		$52,606		$505,406		$695,719

(1)Includes one U.S. dollar-denominated loan that is located in Bermuda.

(2)Represents a transfer of asset-specific CECL reserves on two previously impaired subordinate loans that were

transferred to loans receivable, held-for-sale during the three months endedSeptember 30, 2026.

During the three months endedSeptember 30, 2026, the CECL reserves against our loans receivable, held-for-investment

portfolioincreased by$199.5 million. This increase was primarily driven by a $293.8 millionincrease in our asset-specific

CECL reserve, partially offset by a $25.5 milliondecrease in our general CECL reserve. The increase in our asset-specific

reserve was primarily driven by six additional loans with an aggregate amortized cost basis of $787.8 million that were

impaired during the three months endedSeptember 30, 2026, of which five are secured by office properties, and one is

secured by a hospitality 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. During the three months

endedSeptember 30, 2026, we recorded $8.7 million of interest income on these loans. Upon determining that the six loans

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

decrease in our general CECL reserve was primarily driven by changes in risk ratings, including the impact of the six

newly impaired loans moving out of the general CECL reserve pool, and a decrease in our loans receivable, held-for-

investment balance, partially offset by an increase in the historical loss rate used in reserve calculations related to the

additional reserve charge-offs.

28

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The increase in our asset-specific reserve was reduced by (i) the transfer of $61.9 million of CECL reserves related to two

previously impaired subordinate loans that were transferred to held-for-sale as of September 30, 2026, which were sold

subsequent to September 30, 2026, and (ii) charge-offs of $6.9 million primarily related to the resolution of one previously

impaired loan as a result of our acquisition of title through a deed-in-lieu of foreclosure of a mixed-use collateral property

located in Richmond, CA, which is now included on our consolidated balance sheet as an owned real estate asset. As a

result of these changes, our total loans receivable CECL reserves increased to $597.3 million as of September 30, 2026.

As of September 30, 2026, we had an aggregate $444.5 million asset-specific CECL reserve related to 12 of our loans

receivable, held-for-investment, with an aggregate amortized cost basis of $1.3 billion, net of cost-recovery proceeds.

During the three months endedSeptember 30, 2026, we received $4.4 million of cash proceeds from previously impaired

loans that were applied as a reduction to the amortized cost basis of each respective loan. Impairments are each determined

individually as a result of changes in the specific credit quality factors for each such loan. These factors included, among

others, (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and

(iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan. This asset-

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

September 30, 2026.

As of September 30, 2026,one of our performing loans with an amortized cost basis of $149.8 million was in payment

default, was greater than 90 days past due on its interest payment, and had a risk rating of “4.” This loan was not impaired

as of September 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. Refer to Note 2 for further discussion of our policies on

revenue recognition and our CECL reserves.

29

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Our primary credit quality indicator is our risk ratings, which are further discussed above. The following tables present the

amortized cost basis of our loans receivable, held-for-investment portfolio as of September 30, 2026 and December 31,

2025, respectively, by year of origination and risk rating ($ in thousands):

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		Amortized Cost Basis of Loans Receivable by Year of Origination(1)
		As of September 30, 2026
Risk Rating		2026		2025		2024		2023		2022		Prior		Total
1		$—		$60,952		$—		$—		$—		$—		$60,952
2		—		960,604		61,380		—		238,693		709,467		1,970,144
3		1,461,861		3,761,985		276,970		—		2,099,369		2,714,253		10,314,438
4		—		221,543		—		—		—		671,611		893,154
5		—		—		—		—		—		1,325,146		1,325,146
Total loans receivable, held-for-investment		$1,461,861		$5,005,084		$338,350		$—		$2,338,062		$5,420,477		$14,563,834
Gross charge-offs(2)		—		—		—		—		(39,293)		(42,652)		$(81,945)

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		Amortized Cost Basis of Loans Receivable by Year of Origination(1)
		As of December 31, 2025
Risk Rating		2025		2024		2023		2022		2021		Prior		Total
1		$—		$—		$—		$151,674		$98,329		$53,968		$303,971
2		792,802		61,068		—		586,066		1,265,922		170,012		2,875,870
3		4,335,677		274,866		—		2,592,446		2,869,787		1,835,171		11,907,947
4		—		—		—		367,804		582,317		1,856,637		2,806,758
5		—		—		—		—		31,700		142,888		174,588
Total loans receivable, held-for-investment		$5,128,479		$335,934		$—		$3,697,990		$4,848,055		$4,058,676		$18,069,134
Gross charge-offs(2)		—		—		—		(54,404)		(214,796)		(286,916)		$(556,116)

(1)Year loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan

modifications.

(2)Represents charge-offs by year of origination during the nine months endedSeptember 30, 2026 and year ended

December 31, 2025, respectively, net of any recoveries of amounts previously charged off.

Loan Modifications Pursuant to ASC 326

During the twelve months endedSeptember 30, 2026, we entered into one loan modification that requires disclosure

pursuant to ASC 326. This loan was collateralized by a life sciences asset.

The loan had a risk rating of “5” at the time of modification, which resulted in the bifurcation of the loan into separate

senior and subordinate loans. The loan modification also included a term extension of 4.3 years and the interest rate

decreased by 3.56%. We are accruing all of the interest on the senior loan that is paying current, and deferring interest on

the subordinate loan, which is paid-in-kind. As of September 30, 2026, the aggregate amortized cost basis of these loans

was $122.5 million, or 0.8% of our aggregate loans receivable, held-for-investment portfolio, with an aggregate

$34.6 million of unfunded commitments. These loans were in compliance with their modified contractual terms as of

September 30, 2026. As of September 30, 2026, the newly bifurcated senior loan had a risk rating of “4,” and the newly

bifurcated subordinate loan had a risk rating of “5,” as collection of amounts due under the loan terms was doubtful. The

loan with a risk rating of “4” is included in the determination of our general CECL reserve and the loan with a risk rating of

“5” is evaluated individually for an asset-specific CECL reserve.

Loan modifications that allow the option to pay interest in-kind increase our potential economics and the size of our

secured claim, as interest is capitalized and added to the outstanding principal balance for applicable loans. As of

30

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

September 30, 2026, no income was recorded on our loans subsequent to determining that such loans were impaired and

risk rated “5.”

4. OWNED REAL ESTATE, NET

As of September 30, 2026 and December 31, 2025, we had 15 and 12 owned real estate assets, respectively. During the

nine months endedSeptember 30, 2026, we acquired three owned real estate assets through foreclosure or deed-in-lieu of

foreclosure transactions with an aggregate acquisition price of $273.9 million. We allocated $168.1 million to building and

building improvements, $86.1 million to land and land improvements, $14.1 million to acquired intangible assets, and

$5.6 million to other components of the purchase price, including cash held in reserves at the time of acquisition. In

aggregate, we charged off $86.1 million of CECL reserves relating to the loans that had previously been secured by these

assets, as the loans’ aggregate amortized cost basis of $360.0 million at the time of the acquisitions exceeded the

acquisition date fair value noted above. See Note 2 for further discussion of owned real estate assets.

Acquisitions

The acquisitions of three owned real estate assets during the nine months endedSeptember 30, 2026 were accounted for as

asset acquisitions under ASC 805, and we recognized the properties as owned real estate assets held-for-investment. The

following table presents the owned real estate assets that were acquired during the nine months endedSeptember 30, 2026

($ in thousands):

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Acquisition Date		Location		Property Type		Acquisition Date Fair Value
March 2026		San Francisco, CA		Hospitality		$41,082
June 2026		Dallas, TX		Multifamily		149,906
September 2026		Richmond, CA		Mixed-use		82,901
						$273,889

Dispositions

During the nine months endedSeptember 30, 2026, we completed a partial sale of one owned real estate asset, a

multifamily property located in San Antonio, TX. The carrying value of the asset at the time of disposition was

$15.3 million, and we received net cash proceeds of $15.1 million, resulting in a net loss of $0.2 million, which is included

in net loss on disposition of owned real estate on our consolidated statements of operations.

31

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table presents the assets and liabilities related to owned real estate held for investment included in our

consolidated balance sheets ($ in thousands):

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	September 30, 2026		December 31, 2025
Assets
Building and building improvements	$874,032		$708,097
Land and land improvements	530,621		461,585
Total	$1,404,653		$1,169,682
Less: accumulated depreciation	(67,118)		(34,707)
Owned real estate, net	$1,337,535		$1,134,975
Intangible real estate assets	$170,012		$161,690
Less: accumulated amortization	(70,759)		(44,601)
Intangible real estate assets, net(1)	$99,253		$117,089
Liabilities
Intangible real estate liabilities	$5,687		$3,985
Less: accumulated amortization	(1,362)		(570)
Intangible real estate liabilities, net(2)	$4,325		$3,415

(1)Included within other assets on our consolidated balance sheets. Refer to Note 6 for further information.

(2)Included within other liabilities on our consolidated balance sheets. Refer to Note 6 for further information.

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

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Rental revenue	$26,119		$15,263		$74,317		$45,803
Hospitality revenue	41,452		14,200		128,715		47,879
Other operating revenue	9,910		4,270		24,540		15,896
Revenue from owned real estate	$77,481		$33,733		$227,572		$109,578
Operating expense	$58,715		$28,061		$180,933		$89,238
Depreciation and amortization expense	22,507		15,039		63,704		47,960
Total expenses from owned real estate	$81,222		$43,100		$244,637		$137,198
Loss from owned real estate	$(3,741)		$(9,367)		$(17,065)		$(27,620)

32

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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

September 30, 2026. Leases at our multifamily assets are short term, generally 12 months or less, and are therefore not

included ($ in thousands):

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Year		Future Minimum Rents
2026 (remaining)		$22,621
2027		84,296
2028		74,891
2029		59,781
2030		52,695
Thereafter		166,600
Total		$460,884

The following table presents the estimated future amortization of lease intangibles for each of the next five years and

thereafter as of September 30, 2026 ($ in thousands):

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Year		In-place lease intangibles		Above-market lease intangibles		Below-market lease intangibles
2026 (remaining)		$8,996		$1,486		$(801)
2027		20,636		4,284		(1,841)
2028		14,281		3,443		(644)
2029		11,022		2,554		(491)
2030		8,543		2,200		(304)
Thereafter		16,581		5,227		(244)
Total		$80,059		$19,194		$(4,325)

Impairment

During the three months endedSeptember 30, 2026, we recognized $36.4 million of aggregate impairment charges related

to three owned real estate assets, two of which were office assets and one of which was a multifamily asset. The

impairments resulted from updates to the undiscounted cash flow assumptions, primarily a shortening of the expected hold

period for the properties.

We did not recognize any impairment charges during the nine months endedSeptember 30, 2025.

33

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

5. INVESTMENTS IN UNCONSOLIDATED ENTITIES

As of September 30, 2026, we hold certain investments in unconsolidated entities that are accounted for under the equity

method of accounting or the FVO, as our ownership interest in each entity does not meet the requirements for

consolidation. Refer to Note 2 for further details.

The following tables detail our investments in unconsolidated entities ($ in thousands):

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		September 30, 2026
Investments in Unconsolidated Entities		Number of Assets		Ownership Interest		Book Value
Unconsolidated entities carried at historical cost
Net Lease Joint Venture		348(1)		75%		$219,276
Total unconsolidated entities carried at historical cost		348				219,276
Unconsolidated entities carried at fair value
Bank Loan Portfolio Joint Venture		425(2)		35%(3)		92,329
Homebuilder Finance Joint Venture		44(2)		45%		59,143
Total unconsolidated entities carried at fair value		469				151,472
Total		817				$370,748

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		December 31, 2025
Investments in Unconsolidated Entities		Number of Assets		Ownership Interest		Book Value
Unconsolidated entities carried at historical cost
Net Lease Joint Venture		178(1)		75%		$106,478
Total unconsolidated entities carried at historical cost		178				106,478
Unconsolidated entities carried at fair value
Bank Loan Portfolio Joint Venture		533(2)		35%(3)		111,010
Total unconsolidated entities carried at fair value		533				111,010
Total		711				$217,488

(1)The number of assets represents the number of commercial real estate properties.

(2)The number of assets represents the number of commercial mortgage loans held by each entity.

(3)Represents our aggregate ownership interest in our Bank Loan Portfolio Joint Venture, which owns an initial

portfolio of commercial mortgage loans acquired during the three months ended June 30, 2025, in which we hold a

29% interest, and an additional portfolio acquired during the three months ended September 30, 2025, in which we

hold a 50% interest.

The following table details the activity related to our investments in unconsolidated entities during the nine months ended

September 30, 2026 ($ in thousands):

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	Net Lease Joint Venture		Bank Loan Portfolio Joint Venture		Homebuilder Finance Joint Venture		Total
Balance as of December 31, 2025	$106,478		$111,010		$—		$217,488
Contributions	129,597		—		56,586		186,183
Distributions	(29,247)		(29,582)		—		(58,829)
Income from unconsolidated entities(1)	1,984		10,901		2,557		15,442
Accumulated other comprehensive income	10,464		—		—		10,464
Balance as of September 30, 2026	$219,276		$92,329		$59,143		$370,748

(1)Includes our share of non-cash items such as (i) depreciation and amortization, and (ii) unrealized gains or losses

recorded by unconsolidated entities.

34

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Our Net Lease Joint Venture and Bank Loan Portfolio Joint Venture have each entered into and may continue to enter into

derivative agreements where we would be required to make payment for periodic or final settlement of derivative contracts

if either our Net Lease Joint Venture or Bank Loan Portfolio Joint Venture, as applicable, is unable to fulfill its respective

obligations.

As of September 30, 2026, our Homebuilder Finance Joint Venture had unfunded commitments under certain of the loans

it holds, which primarily relate to future construction costs expected to be funded over the remaining terms of the

underlying loans, subject to the satisfaction of customary funding conditions. We expect these commitments to be funded

primarily through our Homebuilder Finance Joint Venture’s financing arrangements, with the remainder funded through

capital contributions from the joint venture partners, including us, in proportion to our respective ownership interests. As of

September 30, 2026, our share of such unfunded commitments was $69.7 million.

6. OTHER ASSETS AND LIABILITIES

Other Assets

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

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	September 30, 2026		December 31, 2025
Debt securities, at fair value(1)	$144,055		$—
Accounts receivable and other assets(2)	125,101		56,848
Accrued interest receivable	119,508		132,975
Real estate intangible assets, net	99,253		117,089
Other real estate assets	63,923		42,153
Loan portfolio payments held by servicer(3)	48,596		27,374
Collateral deposited under derivative agreements	34,790		25,300
Derivative assets	22,186		10,492
Prepaid expenses	309		1,032
Total	$657,721		$413,263

(1)Represents investments in senior secured notes and an investment in a significant risk transfer, or SRT, transaction

with a UK financial institution structured as a credit-linked note, or the UK Bank Loan Portfolio SRT. These

investments are recorded at fair value, with changes in fair value recognized in other income, net in our consolidated

statements of operations.

(2)Includes $120.8 million and $55.5 million as of September 30, 2026 and December 31, 2025, respectively, of cash

collateral held by our CLOs that was subsequently remitted by the trustee to repay a portion of the outstanding

senior CLO securities, or that was subsequently reinvested by purchasing additional collateral into our CLOs.

(3)Primarily represents loan principal repayments held by our third-party loan servicers as of the balance sheet date that

were remitted to us during the subsequent remittance cycle.

35

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Other Liabilities

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

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	September 30, 2026		December 31, 2025
Other real estate liabilities	$147,732		$127,703
Accrued dividends payable	78,015		79,081
Other secured debt(1)	72,639		39,475
Accrued interest payable	65,240		58,871
Debt repayments pending servicer remittance(2)	40,019		11,748
Derivative liabilities	35,597		26,596
Accrued management fees payable	14,481		16,434
Accounts payable and other liabilities	11,823		14,653
Current expected credit loss reserves for unfunded loan commitments(3)	9,066		11,617
Total	$474,612		$386,178

(1)Represents financing on our retained investment in the European Loan Securitization and on an investment in debt

securities. Refer to Note 8for further information on the European Loan Securitization.

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

during the subsequent remittance cycle.

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

Current Expected Credit Loss Reserves for Unfunded Loan Commitments

As of September 30, 2026, we had aggregate unfunded commitments of $915.4 million related to 42 loans receivable, held-

for-investment. The expected credit losses over the contractual period of our loans are impacted by our obligations to

extend further credit through our unfunded loan commitments. See Note 2 for further discussion of the CECL reserves

related to our unfunded loan commitments, and Note 21 for further discussion of our unfunded loan commitments. During

the three and nine months endedSeptember 30, 2026, we recorded decreases in the CECL reserves related to our unfunded

loan commitments of $3.5 million and $2.6 million, respectively, bringing our total unfunded loan commitments CECL

reserve to $9.1 million as of September 30, 2026. During the three and nine months endedSeptember 30, 2025, we

recorded increases in the CECL reserves related to our unfunded loan commitments of $2.0 million and $3.3 million,

respectively, bringing our total unfunded loan commitments CECL reserve to $13.7 million as of September 30, 2025.

7. SECURED DEBT, NET

Our secured debt represents borrowings under our secured credit facilities. During the nine months endedSeptember 30,

2026, we closed $1.1 billion of new borrowings against $1.5 billionof collateral assets.

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

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	Secured Debt Borrowings Outstanding
	September 30, 2026		December 31, 2025
Secured credit facilities	$7,192,910		$10,125,839
Deferred financing costs(1)	(6,101)		(8,547)
Net book value of secured debt	$7,186,809		$10,117,292

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

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

36

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Secured Credit Facilities

Our secured credit facilities are bilateral agreements we use to finance diversified pools of senior loan and owned real

estate collateral with sufficient flexibility to accommodate our investment and asset management strategy. The facilities are

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

provisions. Our credit facilities are diversified across 16 counterparties, primarily consisting of top global financial

institutions to minimize our counterparty risk exposure.

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

DownloadSimilarLinkTag

																		Recourse Limitation
Currency		Lenders(1)		Borrowings		Wtd. Avg. Maturity(2)		Wtd. Avg. All-in Cost(3)(4)(5)			Loan Count		Collateral(6)		Wtd. Avg. All-in Yield(3)(4)			Wtd. Avg.		Range
USD		14		$3,159,868		Sep 2028		+1.74%			70		$5,524,804		+2.83%			37%		25% - 100%
GBP		6		1,708,884		Apr 2029		+1.67%			13		2,153,769		+2.92%			25%		25%
EUR		6		1,164,756		Dec 2030		+1.61%			13		1,818,916		+2.97%			41%		10% - 100%
Others(7)		4		1,159,402		Dec 2029		+2.36%			5		1,470,430		+4.69%			27%		25% - 50%
Total		16		$7,192,910		May 2029		+1.80%			101		$10,967,919		+3.17%			33%		10% - 100%

(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.

(4)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 owned real estate assets.

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

applicable to recent or future borrowings.

(6)Represents the principal balance of the collateral loans receivable, held-for-investment and the carrying value of the

collateral owned real estate assets and loans receivable, held-for-sale.

(7)Includes Australian Dollar and Canadian Dollar currencies.

The availability of funding under our secured credit facilities is based on the amount of approved collateral, which

collateral is proposed by us in our discretion and approved by the respective counterparty in its discretion, resulting in a

mutually agreed collateral portfolio construction. Certain structural elements of our secured credit facilities, including the

limitation on recourse to us and facility economics, are influenced by the specific collateral portfolio construction of each

facility, and therefore vary within and among the facilities.

Our secured credit facilities generally permit us to increase or decrease the amount advanced against the pledged collateral

in our discretion within certain maximum/minimum amounts and frequency limitations. As of September 30, 2026, there

was an aggregate $782.3 million available to be drawn at our discretion under our credit facilities.

Financial Covenants

As of September 30, 2026, we are subject to the following financial covenants related to our secured debt and secured debt

of our unconsolidated entities: (i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to

fixed charges, as defined in the agreements, shall be not less than 1.3 to 1.0; (ii) our tangible net worth, as defined in the

agreements, shall not be less than $2.8 billion as of each measurement date plus 75% to 85% of the net cash proceeds of

future equity issuances subsequent to September 30, 2026; (iii) cash liquidity shall not be less than the greater of (x) $10.0

million or (y) no more than 5% of our recourse indebtedness; and (iv) our indebtedness shall not exceed 83.33% of our

total assets. As of September 30, 2026 and December 31, 2025, we were in compliance with these covenants.

37

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

8. SECURITIZED DEBT OBLIGATIONS, NET

We have financed certain pools of our loans through CLOs and have also financed one of our loans through a securitization

vehicle, or the European Loan Securitization. The CLOs and the European Loan Securitization are consolidated in our

financial statements and have issued securitized debt obligations that are non-recourse to us. Refer to Note 19 for further

discussion of our CLOs and the European Loan Securitization. The following tables detail our securitized debt obligations

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

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	September 30, 2026
Securitized Debt Obligations		Count		Principal Balance		Book Value(1)		Wtd. Avg. Yield/Cost(2)		Term(3)
CLOs
2026 FL6 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1		$880,000		$872,928		+ 1.84%		August 2043
Underlying Collateral Assets		19		999,379		999,379		+ 3.03%		October 2029
2025 FL5 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1		831,250		823,848		+ 2.15%		October 2042
Underlying Collateral Assets		18		939,000		939,000		+ 3.35%		September 2029
2021 FL4 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1		376,967		376,967		+ 1.88%		May 2038
Underlying Collateral Assets		10		446,529		443,144		+ 3.18%		August 2027
2020 FL2 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1		377,313		377,313		+ 1.98%		February 2038
Underlying Collateral Assets		8		570,241		570,241		+ 3.07%		March 2027
Total CLOs
Senior CLO Securities Outstanding		4		$2,465,530		$2,451,056		+ 1.97%
Underlying Collateral Assets		55		2,955,149		2,951,764		+ 3.17%
European Loan Securitization
Financing Provided		1		$188,015		$185,814		+ 1.71%		July 2030
Underlying Collateral Assets(4)		1		242,399		240,192		+ 2.97%		July 2030
Total
Senior CLO Securities Outstanding / Financing Provided(5)		5		$2,653,545		$2,636,870		+ 1.95%
Underlying Collateral Assets		56		3,197,548		3,191,956		+ 3.15%

(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, while all-in cost includes the amortization of deferred

origination fees and financing costs.The weighted-average all-in yield and cost are expressed as a spread over the

relevant floating benchmark rates, which is SOFR for the CLOs and EURIBOR for theEuropean Loan

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

owned real estate assets, and cash from repayment proceeds held in certain of our CLOs that may be used to add

new eligible collateral assets.

(3)Underlying collateral assets term represents the weighted-average final maturity of such loans, assuming all

extension options are exercised by the borrower, and excludes owned real estate 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.

(4)We financed our $55.8 million retained interests in the securitization under a repurchase agreement structured

without capital markets-based mark-to-market provisions. The amount of the financing is included in other liabilities

on our consolidated balance sheets.

(5)During the three and nine months endedSeptember 30, 2026, we recorded $39.2 million and $114.1 million,

respectively, of interest expense related to our securitized debt obligations.

38

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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	December 31, 2025
Securitized Debt Obligations		Count		Principal Balance		Book Value(1)		Wtd. Avg. Yield/Cost(2)(3)		Term(4)
CLOs
2025 FL5 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1		$831,250		$822,243		+ 2.15%		October 2042
Underlying Collateral Assets		18		944,537		944,537		+ 3.49%		October 2028
2021 FL4 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1		605,613		605,613		+ 1.45%		May 2038
Underlying Collateral Assets		16		736,360		736,360		+ 3.18%		February 2027
2020 FL2 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1		519,967		519,967		+ 1.82%		February 2038
Underlying Collateral Assets		11		691,964		691,964		+ 2.84%		January 2027
Total CLOs
Senior CLO Securities Outstanding		3		$1,956,830		$1,947,823		+ 1.84%
Underlying Collateral Assets		45		2,372,861		2,372,861		+ 3.22%
European Loan Securitization
Financing Provided		1		$192,666		$191,896		+ 1.53%		July 2030
Underlying Collateral Assets(5)		1		249,160		246,421		+ 2.97%		July 2030
Total
Senior CLO Securities Outstanding / Financing Provided(6)		4		$2,149,496		$2,139,719		+ 1.82%
Underlying Collateral Assets		46		2,622,021		2,619,282		+ 3.22%

(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 the relevant floating benchmark rates,

which is SOFR for the CLOs and EURIBOR for theEuropean Loan Securitization. All-in yield excludes loans

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

repayment proceeds held in certain of our CLOs that may be used to add new eligible collateral assets.

(4)Underlying collateral assets term represents the weighted-average final maturity of such loans, assuming all

extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the

related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of

the securitizations.

(5)We financed our $55.8 million retained interests in the securitization under a repurchase agreement structured

without capital markets-based mark-to-market provisions. The amount of the financing is included in other liabilities

on our consolidated balance sheets.

(6)During the year endedDecember 31, 2025, we recorded $140.0 million of interest expense related to our securitized

debt obligations.

39

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

9. ASSET-SPECIFIC DEBT, NET

The following tables detail our asset-specific debt ($ in thousands):

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	September 30, 2026
Asset-Specific Debt		Count		Principal Balance		Book Value(1)		Wtd. Avg. Yield/Cost(2)		Wtd. Avg. Term(3)
Financing provided		4		$989,504		$988,546		+ 2.75%		February 2030
Collateral assets		4		$1,230,842		$1,224,637		+ 4.12%		February 2030
	December 31, 2025
Asset-Specific Debt		Count		Principal Balance		Book Value(1)		Wtd. Avg. Yield/Cost(2)		Wtd. Avg. Term(3)
Financing provided		4		$999,810		$997,746		+ 2.66%		February 2030
Collateral assets		4		$1,243,500		$1,234,205		+ 4.02%		February 2030

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

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

10. TERM LOANS, NET

During the nine months endedSeptember 30, 2026, we borrowed an additional $770.8 million under a B-9 Term Loan, the

proceeds of which were used, among other things, to repay all $695.8 million in principal outstanding under the B-6 Term

Loan.

The following table details the net book value of each of our senior term loan facilities, or Term Loans, on our consolidated

balance sheets ($ in thousands):

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		Face Value
Term Loans		September 30, 2026		December 31, 2025		Interest Rate(1)		All-in Cost(1)(2)		Maturity
B-6 Term Loan		$—		$695,754		+ 3.00%		+ 3.61%		December 10, 2030
B-7 Term Loan		448,574		451,972		+ 2.50%		+ 3.10%		May 9, 2029
B-8 Term Loan		694,750		700,000		+ 2.50%		+ 2.95%		December 19, 2032
B-9 Term Loan		766,900		—		+ 2.50%		+ 2.97%		December 10, 2030
Total face value		$1,910,224		$1,847,726
Deferred financing costs and unamortized discounts		(34,470)		(39,726)
Net book value		$1,875,754		$1,808,000

(1)The B-7 Term Loan and B-9 Term Loan borrowings are subject to a benchmark interest rate floor of0.50%. The

Term Loans are indexed to one-month SOFR.

(2)Includes issue discount and transaction expenses that are amortized through interest expense over the life of the

applicable Term Loans.

The Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the aggregate initial principal

balance due in quarterly installments.

40

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Cash coupon	$30,292		$32,898		$89,798		$101,041
Discount and issuance cost amortization	2,046		2,266		6,518		8,381
Total interest expense	$32,338		$35,164		$96,316		$109,422

The Term Loans contain the financial covenant that our indebtedness shall not exceed 83.33% of our total assets. As of

September 30, 2026 and December 31, 2025, we were in compliance with this covenant. Refer to Note 2 for further

discussion of our accounting policies for the Term Loans.

11. SENIOR SECURED NOTES, NET

During the nine months endedSeptember 30, 2026, we issued an additional $450.0 million principal amount of senior

secured notes, or Senior Secured Notes, the proceeds of which were used, among other things, to repay existing secured

debt.

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

thousands):

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		Face Value
Senior Secured Notes Issuance		September 30, 2026		December 31, 2025		Interest Rate		Swapped Rate(1)		All-in Cost(2)		Maturity
October 2021		$335,316		$335,316		3.75%		n/a		4.06%		January 15, 2027
December 2024		450,000		450,000		7.75%		+ 3.95%		8.14%		December 1, 2029
May 2026		450,000		—		6.25%		+ 2.50%		6.68%		June 1, 2031
Total face value		$1,235,316		$785,316
Deferred financing costs and unamortized discounts		(12,092)		(7,280)
Hedging adjustments(3)		(31,493)		6,840
Net book value		$1,191,731		$784,876

(1)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. The interest rate swaps are indexed to one-month SOFR. Refer to Note 13

for further discussion.

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

(3)Represents the aggregate fair value of interest rate swaps that we entered into to convert the fixed rate exposure of

both the December 2024 and May 2026 Senior Secured Notes into floating rate. Refer to Note 13 for further

discussion.

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

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Cash coupon	$18,894		$11,862		$45,978		$35,587
Discount and issuance cost amortization	1,021		654		2,480		2,003
Total interest expense	$19,915		$12,516		$48,458		$37,590

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

As of September 30, 2026 and December 31, 2025, we were in compliance with this covenant. Under certain

circumstances, we may, at our option, release all of the collateral securing our Senior Secured Notes, in which case we

would also be required to maintain a total unencumbered assets to total unsecured indebtedness ratio of 1.20 or greater.

This covenant is not currently in effect as the collateral securing our Senior Secured Notes has not been released.

41

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

12. CONVERTIBLE NOTES, NET

The following table details the net book value of our convertible senior notes, or Convertible Notes, on our consolidated

balance sheets ($ in thousands):

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		Face Value
Convertible Notes		September 30, 2026		December 31, 2025		Interest Rate		All-in Cost(1)		Conversion Price(2)		Maturity
Face value		$266,157		$266,157		5.50%		5.79%		$36.27		March 15, 2027
Deferred financing costs and unamortized discount		(565)		(1,412)
Net book value		$265,592		$264,745

(1)Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the

effective interest method.

(2)Represents the price of class A common stock per share based on a conversion rate of 27.5702 for the Convertible

Notes. 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 September 30, 2026.

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

the Convertible Notes prior to maturity. The Convertible Notes are convertible at the holders’ option into shares of our

class A common stock, only under specific circumstances, prior to the close of business on December 14, 2026 at the

applicable conversion rate in effect on the conversion date. Thereafter, the Convertible Notes are convertible at the option

of the holder at any time until the second scheduled trading day immediately preceding the maturity date. The last reported

sale price of our class A common stock of $11.45 on September 30, 2026, the last trading day in the nine months ended

September 30, 2026, was less than the per share conversion price of the Convertible Notes.

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

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Cash coupon	$3,660		$3,660		$10,979		$10,979
Discount and issuance cost amortization	282		282		847		847
Total interest expense	$3,942		$3,942		$11,826		$11,826

Accrued interest payable for the Convertible Notes was $0.6 million and $4.3 million as of September 30, 2026 and

December 31, 2025, respectively. Refer to Note 2 for further discussion of our accounting policies for the Convertible

Notes.

13. DERIVATIVE FINANCIAL INSTRUMENTS

The objective of our use of derivative financial instruments is to minimize the risks and/or costs associated with our

investments and/or financing transactions. These derivatives may or may not qualify as net investment, cash flow, or fair

value hedges under the hedge accounting requirements of the ASC Topic 815, “Derivatives and Hedging.” Derivatives not

designated as hedges are not speculative and are used to manage our exposure to interest rate movements and other

identified risks. Refer to Note 2 for further discussion of the accounting for designated and non-designated hedges.

The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these

contractual arrangements do not perform as agreed. To mitigate this risk, we only enter into derivative financial

instruments with counterparties that have appropriate credit ratings and are major financial institutions with which we and

our affiliates also have other financial relationships.

42

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Net Investment Hedges of Foreign Currency Risk

Certain of our international investments expose us to fluctuations in foreign interest rates and currency exchange rates.

These fluctuations may impact the value of our cash receipts and payments in terms of our functional currency, the U.S.

dollar. 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.

Designated Hedges of Foreign Currency Risk

The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of

foreign currency risk (notional amounts in thousands):

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September 30, 2026						December 31, 2025
Foreign Currency Derivatives		Number of Instruments		Notional Amount		Foreign Currency Derivatives		Number of Instruments		Notional Amount
Buy USD / Sell EUR Forward		8		€649,527		Buy USD / Sell SEK Forward		2		kr 970,417
Buy USD / Sell GBP Forward		5		£433,513		Buy USD / Sell GBP Forward		6		£739,956
Buy USD / Sell AUD Forward		9		A$418,464		Buy USD / Sell EUR Forward		10		€689,868
Buy USD / Sell CAD Forward		3		C$120,641		Buy USD / Sell AUD Forward		7		A$371,141
Buy USD / Sell SEK Forward		1		kr 3,020		Buy USD / Sell CAD Forward		3		C$120,557
Buy USD / Sell CHF Forward		1		CHF52		Buy USD / Sell CHF Forward		1		CHF52

Non-designated Hedges of Foreign Currency Risk

The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign

currency risk (notional amounts in thousands):

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September 30, 2026						December 31, 2025
Non-designated Hedges		Number of Instruments		Notional Amount		Non-designated Hedges		Number of Instruments		Notional Amount
Buy GBP / Sell USD Forward		2		£230,000		Buy GBP / Sell USD Forward		2		£86,800
Buy USD / Sell GBP Forward		2		£230,000		Buy USD / Sell GBP Forward		2		£86,800
Buy EUR / Sell USD Forward		4		€93,300		Buy EUR / Sell USD Forward		3		€44,700
Buy USD / Sell EUR Forward		3		€48,000		Buy USD / Sell EUR Forward		3		€44,700
Buy AUD / Sell USD Forward		2		A$18,500		Buy AUD / Sell USD Forward		2		A$10,200
Buy USD / Sell AUD Forward		2		A$18,500		Buy USD / Sell AUD Forward		2		A$10,200

Cash Flow Hedges of Interest Rate Risk

Certain of our financing transactions expose us to a fixed versus floating rate mismatch between our assets and liabilities.

We use derivative financial instruments, which include interest rate swaps (and may also include interest rate caps, interest

rate options, floors, and other interest rate derivative contracts) to hedge interest rate risk associated with our borrowings

where there is potential for an index mismatch.

43

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate

risk (notional amounts in thousands):

September 30, 2026
Interest Rate Derivatives		Number of Instruments		Notional Amount		Fixed Rate		Index		Maturity (Years)
Interest Rate Swaps		1		$35,600		3.51%		SOFR		4.2

December 31, 2025
Interest Rate Derivatives		Number of Instruments		Notional Amount		Fixed Rate		Index		Maturity (Years)
Interest Rate Swaps		1		$35,600		3.51%		SOFR		5.0

Fair Value Hedges of Interest Rate Risk

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

derivative financial instruments, which include interest rate swaps, to hedge interest rate risk associated with changes in the

fair value of our fixed rate debt. The changes in the value of the interest rate swaps are recognized in earnings and offset

the corresponding changes in the fair value of the debt.

Designated Hedges of Interest Rate Risk

The following tables detail our outstanding interest rate derivatives that were designated as fair value hedges of interest rate

risk (notional amount in thousands):

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September 30, 2026
Interest Rate Derivatives		Number of Instruments		Aggregate Notional Amount		Fixed Rate		Index		Maturity (Years)
Interest Rate Swaps		2		$900,000		3.75% - 3.81%		SOFR		3.2 - 4.7

December 31, 2025
Interest Rate Derivatives		Number of Instruments		Notional Amount		Fixed Rate		Index		Maturity (Years)
Interest Rate Swaps		1		$450,000		3.81%		SOFR		3.9

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

hedges ($ in thousands):

September 30, 2026
Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included		Carrying Amount of the Hedged Assets/ Liabilities		Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount
Senior secured notes, net		$856,701		$(31,493)

December 31, 2025
Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included		Carrying Amount of the Hedged Assets/ Liabilities		Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount
Senior secured notes, net		$450,597		$6,840

44

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Non-designated Hedges of Interest Rate Risk

The following table details our outstanding interest rate derivatives that were not designated as hedges of interest rate risk

(notional amount in thousands):

September 30, 2026
Interest Rate Derivatives		Number of Instruments		Aggregate Notional Amount		Fixed Rate		Index		Maturity (Years)
Interest Rate Swap		1		$49,287		4.05%		SOFR		3.9

There were no non-designated interest rate derivatives outstanding as of December 31, 2025.

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

The following table presents the effect of our derivative financial instruments on our consolidated statements of operations

($ in thousands):

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				Increase (Decrease) to Net Interest Income Recognized from Derivatives
				Three Months Ended September 30,				Nine Months Ended September 30,
Derivatives in Hedging Relationships		Location of Income (Expense) Recognized		2026		2025		2026		2025
Designated Hedges		Interest Income(1)		$2,585		$6,174		$10,050		$13,820
Designated Hedges		Interest Expense(2)		56		(674)		378		(1,884)
Non-Designated Hedges		Interest Income(1)		853		(46)		840		(96)
Non-Designated Hedges		Interest Expense(3)		(187)		39		(70)		(2,129)
Total				$3,307		$5,493		$11,198		$9,711

(1)Represents (i) the forward points earned on our foreign currency forward contracts, which 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, and (ii) the index rate movement in our non-designated interest rate hedges, which are

marked-to-market. Both are recognized in interest and related income in our consolidated statements of operations.

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

rate swaps.

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

recognized in interest and related expenses in our consolidated statements of operations. The amounts in the nine

months endedSeptember 30, 2025 also include a realized loss on an interest rate swap related to our Bank Loan

Portfolio Joint Venture that was entered into during the three months ended June 30, 2025 and subsequently

terminated.

Fair Value Hedges

The following table presents the net gains (losses) on derivatives and the related hedged items in fair value hedging

relationships ($ in thousands):

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Total interest and related expenses presented in the consolidated statements of operations	$216,192		$247,055		$664,110		$754,015
Gains (losses) on fair value hedging relationships
Total (loss) gain on derivative instruments	$(26,849)		$486		$(38,302)		$12,774
Fair value basis adjustment on hedged items	26,787		(494)		38,333		(7,834)
Derivative settlements and accruals	40		674		334		2,116
Net (loss) gain on fair value hedging relationships(1)	$(22)		$666		$365		$7,056

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

45

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Valuation and Other Comprehensive Income

The following table summarizes the fair value of our derivative financial instruments ($ in thousands):

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		Fair Value of Derivatives in an Asset Position(1) as of				Fair Value of Derivatives in a Liability Position(2) as of
		September 30, 2026		December 31, 2025		September 30, 2026		December 31, 2025
Derivatives designated as hedging instruments
Foreign exchange contracts		$16,765		$22		$1,265		$24,994
Interest rate derivatives		1,676		6,877		31,425		76
Total derivatives designated as hedging instruments		$18,441		$6,899		$32,690		$25,070
Derivatives not designated as hedging instruments
Foreign exchange contracts		$2,552		$3,593		$2,907		$1,526
Interest rate derivatives		1,193		—		—		—
Total derivatives not designated as hedging instruments		$3,745		$3,593		$2,907		$1,526
Total derivatives		$22,186		$10,492		$35,597		$26,596

(1)Included in other assets in our consolidated balance sheets.

(2)Included in other liabilities in our consolidated balance sheets.

The following table presents the effect of our derivative financial instruments on our consolidated statements of

comprehensive income and operations ($ in thousands):

DownloadSimilarLinkTag

Derivatives in Hedging Relationships		Amount of Gain (Loss) Recognized in OCI on Derivatives				Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
		Three Months Ended September 30, 2026		Nine Months Ended September 30, 2026			Three Months Ended September 30, 2026		Nine Months Ended September 30, 2026
Net Investment Hedges
Foreign exchange contracts(1)		$5,347		$47,243		Interest Expense	$2,585		$10,050
Cash Flow Hedges
Interest rate derivatives(2)		1,112		1,796		Interest Expense(3)	16		44
Total		$6,459		$49,039			$2,601		$10,094

(1)During the three and nine months endedSeptember 30, 2026, we received net cash settlements of $31.3 million and

$8.8 million, respectively, on our foreign currency forward contracts. Those amounts are included as a component of

accumulated other comprehensive income on our consolidated balance sheets.

(2)During the three and nine months endedSeptember 30, 2026, we received net cash settlements of $0.1 million and

$0.3 million, respectively, on our interest rate swaps. Those amounts are included within interest and related

expenses in the consolidated statements of operations.

(3)During the three and nine months endedSeptember 30, 2026, we recorded total interest and related expenses of

$216.2 million and $664.1 million, respectively, which was reduced by $16 thousand and $44 thousand,

respectively, related to income generated by our cash flow hedges.

There were no cash flow hedges outstanding during the three and nine months ended September 30, 2025.

46

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Credit-Risk-Related Contingent Features

We have entered into agreements with certain of our derivative counterparties that contain provisions where if we were to

default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the

lender, we may also be declared in default on our derivative obligations. In addition, certain of our agreements with our

derivative counterparties require that we post collateral to secure net liability positions. As of September 30, 2026, we were

in a net asset position with one of our counterparties and in a liability position with our other counterparty related to our

foreign exchange hedges, and had $2.9 million of collateral posted with such counterparty. As of September 30, 2026, we

were in a net asset position with one of our counterparties and in a net liability position with our other two counterparties

related to our interest rate swaps and had $31.9 million of collateral posted with such counterparties. As of December 31,

2025, we were in a net asset position with one of our counterparties and in a net liability position with our other two

counterparties related to our foreign exchange hedges and had $25.3 million of collateral posted with such counterparties.

14. EQUITY

Stock and Stock Equivalents

Authorized Capital

As of September 30, 2026, we had the authority to issue up to 500,000,000 shares of stock, consisting of 400,000,000

shares of class A common stock and 100,000,000 shares of preferred stock. Subject to applicable NYSE listing

requirements, our board of directors is authorized to cause us to issue additional shares of authorized stock without

stockholder approval. In addition, to the extent not issued, currently authorized stock may be reclassified between class A

common stock and preferred stock. As of both September 30, 2026 and December 31, 2025, we did not have any shares of

preferred stock issued and outstanding.

Share Repurchase Program

In October 2025, our board of directors authorized the repurchase of up to$150.0 million of shares of our class A common

stock under our repurchase program. Repurchases may be made from time to time in open market transactions, in privately

negotiated transactions, in agreements and arrangements structured in a manner consistent with Rules 10b-18 and 10b5-1

under the Exchange Act or otherwise. The timing and the actual amounts repurchased will depend on a variety of factors,

including legal requirements, price and economic and market conditions. The repurchase program may be changed,

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

During the nine months endedSeptember 30, 2026, we repurchased 2,766,237 shares of class A common stock at a

weighted-average price per share of $14.39, for a total cost of $39.8 million. During the nine months endedSeptember 30,

2025, we repurchased 2,653,583 shares of class A common stock at a weighted-average price per share of $17.97, for a

total cost of $47.7 million. As of September 30, 2026, the amount remaining available for repurchases under the program

was $109.8 million.

Class A Common Stock and Deferred Stock Units

Holders of shares of our class A common stock are entitled to vote on all matters submitted to a vote of stockholders and

are entitled to receive dividends authorized by our board of directors and declared by us, in all cases subject to the rights of

the holders of shares of outstanding preferred stock, if any.

We also issue restricted class A common stock under our stock-based incentive plans. Refer to Note 17 for further

discussion of these long-term incentive plans. In addition to our class A common stock, we also issue deferred stock units

to certain members of our board of directors for services rendered. These deferred stock units are non-voting, but carry the

right to receive dividends in the form of additional deferred stock units in an amount equivalent to the cash dividends paid

to holders of shares of class A common stock. Each vested deferred stock unit is settled by delivery of one share of class A

common stock upon the non-employee director’s separation from service.

47

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table details the movement in our outstanding shares of class A common stock, including restricted class A

common stock and deferred stock units:

DownloadSimilarLinkTag

		Nine Months Ended September 30,
Common Stock Outstanding(1)		2026		2025
Beginning balance		168,599,052		173,204,190
Issuance of class A common stock(2)		—		1,778
Repurchase of class A common stock		(2,766,237)		(2,653,583)
Issuance of restricted class A common stock, net(3)(4)		496,054		467,180
Issuance of deferred stock units		39,661		32,165
Ending balance		166,368,530		171,051,730

(1)Includes 379,690 and 331,611 deferred stock units held by members of our board of directors as of September 30,

2026 and 2025, respectively.

(2)Represents shares issued under our dividend reinvestment program during the nine months endedSeptember 30,

2025.

(3)Includes 32,985 and 29,140 shares of restricted class A common stock issued to our board of directors during the

nine months endedSeptember 30, 2026 and 2025, respectively.

(4)Net of 27,534 and 43,832 shares of restricted class A common stock forfeited under our stock-based incentive plans

during the nine months endedSeptember 30, 2026 and 2025, respectively.

Dividend Reinvestment and Direct Stock Purchase Plan

We have adopted a dividend reinvestment and direct stock purchase plan under which an aggregate of 10,000,000 shares of

class A common stock are available for sale. Under the dividend reinvestment component of the plan, our class A common

stockholders can designate all or a portion of their cash dividends to be reinvested in additional shares of class A common

stock. Such shares may, at our option, be newly issued shares from us, shares purchased by the plan administrator on the

open market, or a combination thereof. The direct stock purchase component of the plan allows stockholders and new

investors, subject to our approval, to purchase shares of class A common stock directly from us. During the nine months

endedSeptember 30, 2026, 26,653 shares of class A common stock were purchased on the open market by the plan

administrator under the dividend reinvestment component of the plan. During the nine months endedSeptember 30, 2025,

we issued 1,778 shares of class A common stock and 652 shares of class A common stock were purchased on the open

market by the plan administrator under the dividend reinvestment component of the plan.As of September 30, 2026, a total

of 9,938,472 shares of class A common stock remained available under the dividend reinvestment and direct stock

purchase plan.

At the Market Stock Offering Program

As of September 30, 2026, we are party to seven equity distribution agreements, or ATM Agreements, pursuant to which

we may sell, from time to time, up to an aggregate sales price of $699.1 million of our class A common stock. Sales of

class A common stock made pursuant to our ATM Agreements may be made in negotiated transactions or transactions that

are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Actual

sales depend on a variety of factors including market conditions, the trading price of our class A common stock, our capital

needs, and our determination of the appropriate sources of funding to meet such needs. During the nine months ended

September 30, 2026 and 2025, we did not issue any shares of our class A common stock under ATM Agreements. As of

September 30, 2026, shares of our class A common stock with an aggregate sales price of $480.9 million remained

available for issuance and sale under our ATM Agreements.

Dividends

We generally intend to distribute substantially all of our taxable income, which does not necessarily equal net income as

calculated in accordance with GAAP, to our stockholders each year to comply with the REIT provisions of the Internal

Revenue Code of 1986, as amended, or the Internal Revenue Code. Our dividend policy remains subject to revision at the

discretion of our board of directors. All distributions will be made at the discretion of our board of directors and will

depend upon our taxable income, our financial condition, our maintenance of REIT status, applicable law, and other factors

as our board of directors deems relevant.

48

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

On September 15,2026, we declared a dividend of $0.47 per share, or $78.0 million in aggregate, that was paid on October

15, 2026 to stockholders of record as of September 30, 2026.

The following table details our dividend activity ($ in thousands, except per share data):

DownloadSimilarLinkTag

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Dividends declared per share of common stock	$0.47		$0.47		$1.41		$1.41
Class A common stock dividends declared	$78,015		$80,238		$236,511		$241,531
Deferred stock unit dividends declared	172		143		498		483
Total dividends declared	$78,187		$80,381		$237,009		$242,014

Earnings Per Share

We calculate our basic and diluted earnings per share using the two-class method for all periods presented as the unvested

shares of our restricted class A common stock qualify as participating securities, as defined by GAAP. These restricted

shares have the same rights as our other shares of class A common stock, including participating in any dividends, and

therefore have been included in our basic and diluted net income per share calculation. The shares issuable under our

Convertible Notes are included in diluted earnings per share using the if-converted method when the effect is not

antidilutive.

The following table sets forth the calculation of basic and diluted net (loss) income per share of class A common stock

based on the weighted-average of both restricted and unrestricted class A common stock outstanding ($ in thousands,

except per share data):

DownloadSimilarLinkTag

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Basic and Diluted Earnings
Net (loss) income(1)	$(327,005)		$63,397		$(414,524)		$70,009
Weighted-average shares outstanding, basic and diluted(2)	167,959,467		171,812,685		168,663,353		171,903,127
Per share amount, basic and diluted	$(1.95)		$0.37		$(2.46)		$0.41

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

(2)For both the three and nine months endedSeptember 30, 2026 and 2025, our Convertible Notes werenot included in

the calculation of diluted earnings per share, as the impact is antidilutive. Refer to Note 12 for further discussion of

our convertible notes.

Other Balance Sheet Items

Accumulated Other Comprehensive Income

As of September 30, 2026, total accumulated other comprehensive income was $21.7 million, representing $125.5 million

of net realized and unrealized gains related to changes in the fair value of derivative instruments and $9.6 million of

unrealized gains related to the changes in the fair value of derivative instruments held by unconsolidated entities, offset by

$113.4 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign

currencies. As of December 31, 2025, total accumulated other comprehensive income was $12.1 million, primarily

representing $86.6 million of net realized and unrealized gains related to changes in the fair value of derivative instruments

offset by $73.6 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in

foreign currencies and $0.8 million of unrealized losses related to the changes in the fair value of derivative instruments

held by unconsolidated entities.

49

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Non-Controlling Interests

The non-controlling interests included on our consolidated balance sheets represent the equity interests in our Multifamily

Joint Venture that are not owned by us. A portion of our Multifamily Joint Venture’s consolidated equity and results of

operations are allocated to these non-controlling interests based on their pro rata ownership of our Multifamily Joint

Venture. As of September 30, 2026, our Multifamily Joint Venture’s total equity was $13.8 million, of which $11.7 million

was owned by us, and $2.1 million was allocated to non-controlling interests. As of December 31, 2025, our Multifamily

Joint Venture’s total equity was $36.5 million, of which $31.0 millionwas owned by us, and $5.5 millionwas allocated to

non-controlling interests.

15. OTHER EXPENSES

Our other expenses consist of the management and incentive fees we pay to our Manager and our general and

administrative expenses.

Management and Incentive Fees

Pursuant to a management agreement between our Manager and us, or our Management Agreement, our Manager earns a

base management fee in an amount equal to 1.50% per annum multiplied by our Equity, as defined in the Management

Agreement. In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i) 20% and (ii) the

excess of (a) our Core Earnings (as defined in our Management Agreement) for the previous 12-month period over (b) an

amount equal to 7.00% per annum multiplied by our Equity, provided that our Core Earnings over the prior three-year

period is greater than zero. Core Earnings, as defined in our Management Agreement, is generally equal to our GAAP net

income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and

excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), (iv)

net income (loss) attributable to our legacy portfolio, (v) certain non-cash items, and (vi) incentive management fees.

During the three and nine months endedSeptember 30, 2026, we incurred$14.5 million and $43.9 million, respectively, of

management fees payable to our Manager compared with $16.8 million and $51.1 million, respectively, during the same

periods in 2025.During the three and nine months endedSeptember 30, 2026 and 2025, we did not incur any incentive fees

payable to our Manager.

As of September 30, 2026 and December 31, 2025, we had accrued management fees payable to our Manager of

$14.5 million and $16.4 million, respectively.

General and Administrative Expenses

General and administrative expenses consisted of the following ($ in thousands):

DownloadSimilarLinkTag

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Professional services	$4,437		$3,351		$14,429		$11,543
Operating and other costs	1,920		2,094		7,465		5,824
Subtotal	6,357		5,445		21,894		17,367
Non-cash compensation expenses
Restricted class A common stock earned	6,476		7,130		19,441		21,053
Director stock-based compensation	201		172		598		517
Subtotal	6,677		7,302		20,039		21,570
Total general and administrative expenses	$13,034		$12,747		$41,933		$38,937

16. 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

50

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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

Securitization transactions could result in the creation of taxable mortgage pools for federal income tax purposes. As a

REIT, so long as we own 100% of the equity interests in a taxable mortgage pool, we generally would not be adversely

affected by the characterization of the securitization as a taxable mortgage pool. Certain categories of stockholders,

however, such as foreign stockholders eligible for treaty or other benefits, stockholders with net operating losses, and

certain tax-exempt stockholders that are subject to unrelated business income tax, or UBTI, could be subject to increased

taxes on a portion of their dividend income from us that is attributable to the taxable mortgage pool. We have not made

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

During the three and nine months endedSeptember 30, 2026, we recorded a current income tax provision of $1.3 million

and $4.9 million, respectively, compared with $1.5 million and $3.1 million, respectively, during the same periods of 2025,

all of which primarily related to activities of our U.S. and foreign taxable subsidiaries and various state and local taxes. We

did not have any deferred tax assets or liabilities as of September 30, 2026 or December 31, 2025.

We have net operating losses, or NOLs, generated by our predecessor business that may be carried forward and utilized in

current or future periods. As a result of our issuance of 25,875,000 shares of class A common stock in May 2013,the

availability of our NOLs is generally limited to $2.0 million per annum by change of control provisions promulgated by the

Internal Revenue Service with respect to the ownership of Blackstone Mortgage Trust. As of September 30, 2026, we had

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

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

although uncertain, we may utilize a portion of NOLs prior to expiration. We do not expect the utilization of NOLs to have

a material impact on our consolidated financial statements. We have recorded a full valuation allowance against such NOLs

as it is probable that they will expire unutilized.

As of September 30, 2026, tax years2022 through 2025remain subject to examination by taxing authorities.

17. STOCK-BASED INCENTIVE PLANS

We are externally managed by our Manager and do not currently have any employees. However, as of September 30, 2026,

our Manager, certain individuals employed by an affiliate of our Manager, and certain members of our board of directors

were compensated, in part, through our issuance of stock-based instruments.

Under our two current stock incentive plans, a maximum of 10,400,000 shares of our class A common stock may be issued

to our Manager, our directors and officers, and certain employees of affiliates of our Manager. As of September 30, 2026,

there were 4,540,172 shares available under our current stock incentive plans.

The following table details the movement in our outstanding shares of restricted class A common stock and the weighted-

average grant date fair value per share:

DownloadSimilarLinkTag

	Restricted Class A Common Stock		Weighted-Average Grant Date Fair Value Per Share
Balance as of December 31, 2025	2,174,931		$20.14
Granted	523,588		19.35
Vested	(989,068)		20.32
Forfeited	(27,534)		19.38
Balance as of September 30, 2026	1,681,917		$19.80

51

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

These shares generally vest in installments over a period of three years, pursuant to the terms of the respective award

agreements and the terms of our current stock incentive plans. The 1,681,917 shares of restricted class A common stock

outstanding as of September 30, 2026 will vest as follows: 318,352 shares will vest in 2026; 901,071 shares will vest in

2027; and 462,494 shares will vest in 2028.As of September 30, 2026, total unrecognized compensation cost relating to

unvested share-based compensation arrangements was $31.7 million based on the grant date fair value of shares granted.

This cost is expected to be recognized over a weighted-average period of 1.0 years from September 30, 2026.

18. FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value

The following table summarizes our assets and liabilities measured at fair value on a recurring and nonrecurring basis ($ in

thousands):

DownloadSimilarLinkTag

	September 30, 2026								December 31, 2025
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Loans receivable, held-for-sale(1)	$—		$—		$615,575		$615,575		$—		$—		$—		$—
Derivatives	—		22,186		—		22,186		—		10,492		—		10,492
Debt securities	—		—		144,055		144,055		—		—		—		—
Total	$—		$22,186		$759,630		$781,816		$—		$10,492		$—		$10,492
Liabilities
Derivatives	$—		$35,597		$—		$35,597		$—		$26,596		$—		$26,596

(1)Measured at fair value on a nonrecurring basis. Loans held-for-sale are carried at the lower of amortized cost or fair

value.

This table excludes $151.5 million and $111.0 million of investments in unconsolidated entities that are measured at fair

value using net asset value as a practical expedient and not classified in the fair value hierarchy as of September 30, 2026

and December 31, 2025, respectively. Refer to Note 5 for further information.

Our investments in debt securities are measured at fair value on a recurring basis and are classified as Level 3 in the fair

value hierarchy. As of September 30, 2026, we determined that the recent purchase prices remained representative of fair

value and, accordingly, no fair value adjustment had been recorded.

Certain of our assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments under

certain circumstances and, therefore, are measured at fair value on a nonrecurring basis. As of September 30, 2026, loans

receivable, held-for-sale with a carrying value of $615.6 million were measured at fair value on a nonrecurring basis and

classified as Level 3 within the fair value hierarchy. Fair value was determined using the executed purchase agreement,

considering estimated costs to sell. Refer to Note 3 for further discussion on loans receivable, held-for-sale. Refer to Note 2

for further discussion regarding impairment of owned real estate assets, which are measured at fair value on a nonrecurring

basis.

Refer to Note 2 for further discussion regarding fair value measurement.

Fair Value of Financial Instruments

As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not

recognized at fair value in the statement of financial position, for which it is practicable to estimate that value.

52

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table details the book value, face amount, and fair value of the financial instruments described in Note 2

($ in thousands):

DownloadSimilarLinkTag

	September 30, 2026						December 31, 2025
	Book Value		Face Amount		Fair Value		Book Value		Face Amount		Fair Value
Financial assets
Cash and cash equivalents	$511,504		$511,504		$511,504		$452,526		$452,526		$452,526
Loans receivable, held-for- investment, net	13,966,510		14,612,118		13,999,982		17,784,694		18,154,768		17,856,303
Loans receivable, held-for-sale	615,575		761,081		615,575		—		—		—
Financial liabilities
Secured debt, net	7,186,809		7,192,910		7,134,623		10,117,292		10,125,839		10,029,890
Other secured debt(1)	72,639		72,639		72,639		39,475		39,475		39,475
Securitized debt obligations, net	2,636,870		2,653,545		2,646,035		2,139,719		2,149,496		2,132,667
Asset-specific debt, net	988,546		989,504		989,504		997,746		999,810		996,308
Secured term loans, net	1,875,754		1,910,224		1,905,418		1,808,000		1,847,726		1,850,327
Senior secured notes, net	1,191,731		1,235,316		1,196,652		784,876		785,316		810,608
Convertible notes, net	265,592		266,157		265,438		264,745		266,157		264,286

(1)Included within other liabilities on our consolidated balance sheets. See Note 6 for further information.

Estimates of fair value for cash and cash equivalents and convertible notes are measured using observable, quoted market

prices, or Level 1 inputs. Estimates of fair value for securitized debt obligations, the Term Loans, and the Senior Secured

Notes are measured using observable, quoted market prices, in inactive markets, or Level 2 inputs. All other fair value

significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding

fair value measurement of certain of our assets and liabilities.

19. VARIABLE INTEREST ENTITIES

We have financed a portion of our loans through the CLOs and the European Loan Securitization, all of which are VIEs.

We are the primary beneficiary of, and therefore consolidate, the CLOs and the European Loan Securitization on our

balance sheet as we (i) control the relevant interests of the CLOs and the European Loan Securitization that give us power

to direct the activities that most significantly affect the CLOs and the European Loan Securitization, and (ii) have the right

to receive benefits and obligation to absorb losses of the CLOs and the European Loan Securitization through the

subordinate interests we own.

During 2025, we modified three loans that included, among other changes, control over decision-making at the respective

properties. Similarly, during 2024, we modified two other loans that included, among other changes, an equity interest in

and/or control over decision-making at the property. As a result of these modifications, our investments in these loans are

VIEs. As of September 30, 2026, we are the primary beneficiary of, and therefore consolidated the assets of these VIEs on

our balance sheet as we (i) have the power to direct the activities that most significantly affect the property, and (ii) have

the right to receive excess sale proceeds upon exit.

53

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

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

DownloadSimilarLinkTag

	September 30, 2026		December 31, 2025
Assets
Cash and cash equivalents	$55,438		$58,663
Loans receivable, held-for-investment	2,905,393		2,422,505
Current expected credit loss reserve	(126,421)		(23,609)
Loans receivable, held-for-investment, net	2,778,972		2,398,896
Loans receivable, held-for-sale	71,187		—
Owned real estate, net	602,196		603,130
Other assets	197,261		196,840
Total assets	$3,705,054		$3,257,529
Liabilities
Securitized debt obligations, net	$2,636,870		$2,139,719
Other liabilities	63,609		47,645
Total liabilities	$2,700,479		$2,187,364

Assets held by these VIEs are restricted and can be used only to settle obligations of the VIEs, including the subordinate

interests of the securitized debt obligations owned by us. The liabilities of these VIEs are non-recourse to us and can only

be satisfied from the assets of the VIEs. The consolidation of these VIEs results in an increase in our gross assets,

liabilities, revenues and expenses; however, it does not affect our stockholders’ equity or net income. We are not obligated

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

20. TRANSACTIONS WITH RELATED PARTIES

Our Manager

We are managed by our Manager pursuant to the Management Agreement. The current term of the Management

Agreement expires on December 19, 2026, and it will be automatically renewed for a one-year term upon such date and

each anniversary thereafter unless earlier terminated.

As of September 30, 2026 and December 31, 2025, our consolidated balance sheets included $14.5 million and

$16.4 million, respectively, of accrued management fees payable to our Manager. During the three and nine months ended

September 30, 2026, we paid management fees of $14.6 million and $45.9 million, respectively, to our Manager, compared

to $17.0 million and $52.8 million, respectively, during the same periods in 2025. We did not pay any incentive fees to our

Manager during the three and nine months endedSeptember 30, 2026 and 2025. In addition, during the three and nine

months endedSeptember 30, 2026, we incurred expenses of $1.8 million and$2.6 million, respectively, that were paid by

our Manager and have been or will be reimbursed by us, compared to $0.4 million and $0.9 million, respectively, of such

expenses during the same periods in 2025.

As of September 30, 2026, our Manager held 840,503 shares of unvested restricted class A common stock, which had an

aggregate grant date fair value of $17.0 million. These shares vest in installments over three years from the date of

issuance. During the three and nine months endedSeptember 30, 2026, we recorded non-cash expenses related to shares

held by our Manager of $3.5 million and $10.5 million, respectively, compared to $3.6 million and $10.9 million,

respectively, during the same periods in 2025. Refer to Note 17 for further details on our restricted class A common stock.

As of September 30, 2026, our Manager, its affiliates (including Blackstone and Blackstone-advised investment vehicles),

Blackstone employees, and our directors held an aggregate 13,754,343 shares, or 8.3%, of our class A common stock, of

which 8,916,412 shares, or 5.4%, were held by Blackstone and its subsidiaries. Additionally, our directors held 379,690

deferred stock units as of September 30, 2026. Certain of the parties listed above have in the past purchased or sold shares

of our class A common stock in open market transactions, and such parties may in the future purchase or sell additional

shares of our class A common stock and/or engage in derivatives transactions related to our class A common stock. Any

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

considerations relevant to such parties.

54

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Affiliate Services

We have engaged certain portfolio companies owned by Blackstone-advised investment vehicles to provide, as applicable,

management, corporate support, and transaction support services. The following table details the costs incurred (refunded)

for these services ($ in thousands):

DownloadSimilarLinkTag

			Three Months Ended September 30,				Nine Months Ended September 30,
	Primary Asset Class		2026		2025		2026		2025
Perform Properties, LLC	Office		$1,094		$1,903		$4,097		$2,797
Brio Real Estate Services, LLC, Brio Real Estate (UK) Ltd., and Brio Real Estate (AUS) Pty Ltd.	n/a		1,225		1,244		4,602		2,345
BRE Hotels & Resorts, LLC	Hospitality		297		284		1,090		1,153
Revantage Corporate Services, LLC and Revantage Global Services Europe S.à r.l.	n/a		864		353		1,528		696
LivCor, LLC	Multifamily		665		46		805		322
LendingOne, LLC(1)	Multifamily		—		—		—		158
Total			$4,145		$3,830		$12,122		$7,471

(1)Provides loan origination services related to certain of our investments.

During the nine months endedSeptember 30, 2026, we entered into an agreement with another Blackstone-advised

investment vehicle to fund our pro rata share of any payments required under a guaranty agreement with a lending

institution. The guaranty relates to a revolving credit facility with a portfolio company owned by Blackstone-advised

investment vehicles that provides services to us, and our participation reflects our share of the associated costs based on

services rendered. As of September 30, 2026, our maximum potential obligation under the arrangement was $0.9 million.

No events through the date of these consolidated financial statements required performance under the guaranty, and no

liability was recorded as of September 30, 2026.

55

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

We have engaged other affiliates of our Manager to provide various services. The following table details the costs incurred

for these services ($ in thousands):

DownloadSimilarLinkTag

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Gryphon Mutual Property Americas IC(1)	$807		$697		$2,506		$1,845
Blackstone Securities Partners L.P.(2)	—		30		422		109
Lexington National Land Services(3)	8		170		142		216
Total	$815		$897		$3,070		$2,170

(1)In order to provide insurance for our owned real estate assets, we became a member of Gryphon Mutual Property

Americas IC, or Gryphon, a captive insurance company owned by us and other Blackstone-advised investment

vehicles. A Blackstone affiliate provides oversight and management services to Gryphon and receives fees based on

a percentage of premiums paid for such policies. The fees and expenses of Gryphon, including insurance premiums

and fees paid to its manager, are borne by us and the other Blackstone-advised investment vehicles that are members

of Gryphon pro rata based on insurance premiums paid for each member’s respective properties. During the nine

months endedSeptember 30, 2026 and 2025, we paid $2.9 million and $1.4 million, respectively, to Gryphon for

insurance costs, inclusive of premiums, capital surplus contributions, taxes, and our pro rata share of other expenses.

Of these amounts, $0.1 million was attributable to the fees paid to a Blackstone affiliate to provide oversight and

management services to Gryphon for both the nine months endedSeptember 30, 2026 and 2025. The amounts

included in the table above reflect the amortization of the insurance expense over the relevant periods of the

respective policies.

(2)During the nine months endedSeptember 30, 2026, Blackstone Securities Partners L.P., or BSP, an affiliate of our

Manager, was engaged as a member of the syndicate for our May 2026 Senior Secured Notes. During the nine

months endedSeptember 30, 2025, BSP was also engaged as a member of the syndicate for our B-6 Term Loan and

our B-7 Term Loan. These engagements were on terms equivalent to those of unaffiliated third parties.

(3)Lexington National Land Services, or LNLS, is a Blackstone affiliate that (i) acts as a title agent in facilitating and

issuing title insurance, (ii) provides title support services for title insurance underwriters, (iii) in certain

circumstances, provides courtesy title settlement services and (iv) acts as escrow agent in connection with certain

investments by Blackstone-advised vehicles, including us, Blackstone-advised investment vehicles and portfolio

companies owned by Blackstone-advised investment vehicles, affiliates and related parties, and third parties,

including, in certain cases, Blackstone’s borrowers. In exchange for such services, LNLS earns fees which would

have otherwise been paid to third parties. Blackstone receives distributions from LNLS in connection with

investments made by us based on its equity interest in LNLS. In each case, there will be no related expense offset to

us.

CT Investment Management Co., LLC, or CTIMCO, serves as the special servicer of all of our CLOs, and the Manager

serves as the collateral manager and benchmark agent for our FL6 and FL5 CLOs issued in the first quarter of 2026 and

2025, respectively. As of September 30, 2026, three of our assets were in special servicing under CLOs. CTIMCO and our

Manager have waived any fees that would be payable to a third party serving in such roles pursuant to the applicable

agreements, and no such fees have been paid or will become payable to CTIMCO or our Manager.

Other Transactions

During the nine months endedSeptember 30, 2026, we invested $502.6 million in four senior loans, $32.6 million in two

mezzanine loans to unaffiliated third parties, and $144.4 million in debt securities (see Note 6 for further discussion) in

which Blackstone-advised investment vehicles also invested at the same level of the capital structure on a pari passu basis.

Included in the $144.4 million of debt securities investments discussed above, in the third quarter of 2026, we purchased

$50.0 million of senior secured notes in a $3.9 billion issuance by a portfolio company owned by other Blackstone-advised

investment vehicles. The notes were acquired on terms equivalent with those of unaffiliated third-party purchasers of the

notes. We have forgone all non-economic rights under these notes, including voting rights, so long as the issuer is owned

by a Blackstone-advised investment vehicle.

In the first quarter of 2026, Blackstone-advised investment vehicles acquired an aggregate $71.4 million participation in

our $770.8 millionB-9 Term Loan. In the fourth quarter of 2025, Blackstone-advised investment vehicles acquired an

aggregate $63.0 million participation in our $700.0 millionB-8 Term Loan. In the third quarter of 2025, Blackstone-

advised investment vehicles acquired an aggregate $33.0 million participation in our $453.1 millionB-7 Term Loan. In the

56

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

second quarter of 2025, Blackstone-advised investment vehicles acquired an aggregate $83.9 million participation in our

$1.0 billionB-6 Term Loan, which has subsequently been repaid in full. All of these transactions were part of broad

syndications led by third-party banks, and were on terms equivalent to those of unaffiliated third parties. BSP was engaged

as a member of the syndicate for these transactions. Our engagements of BSP are on terms equivalent to those of

unaffiliated third parties. See “—Affiliate Services” for further information.

As part of broad syndications led by third-party banks, Blackstone-advised investment vehicles acquired an aggregate

$11.0 million of notes in our $1.0 billion FL6 CLO offering in the first quarter of 2026, and $75.0 million of notes in our

$1.0 billion FL5 CLO offering in the first quarter of 2025. Both of these transactions were on terms equivalent to those of

unaffiliated third parties.

In the second quarter of 2026, we entered into our Homebuilder Finance Joint Venture with an unaffiliated third party,

alongside a Blackstone-advised investment vehicle, that concurrently acquired a $286.7 million portfolio of single family

construction loans in which we made an equity investment of $28.5 million representing our aggregate ownership interest

of 45%.

In the fourth quarter of 2025, we made a $75.0 million capital commitment at the initial closing of a fund managed by

Blackstone Real Estate Debt Strategies, or BREDS, or the BREDS-advised private fund, formed to invest in Core+ real

estate debt investments in the U.S. and Canada. Blackstone affiliates, including us, do not pay management fees or carried

interest with respect to their investments in the BREDS-advised private fund. Our capital commitment represented a

minority of the total capital commitments the BREDS-advised private fund had received as of September 30, 2026. As of

September 30, 2026, the BREDS-advised private fund had not called any capital. To fund its investments, the BREDS-

advised private fund will draw down on capital commitments made by its investors, including us, on a pro rata basis.

In the second quarter of 2025, we entered into our Bank Loan Portfolio Joint Venture with a Blackstone-advised

investment vehicle that concurrently acquired a $1.4 billion portfolio of performing commercial mortgage loans in which

we made an equity investment of $57.6 million and our ownership interest was 29%. In the third quarter of 2025, our Bank

Loan Portfolio Joint Venture acquired a $606.0 million portfolio of performing commercial mortgage loans in which we

made an equity investment of $44.7 million and our ownership interest was 50%. In the fourth quarter of 2024, we entered

into our Net Lease Joint Venture with a Blackstone-advised investment vehicle to invest in triple net lease properties.

We do not consolidate our Bank Loan Portfolio Joint Venture, our Net Lease Joint Venture, our Homebuilder Finance Joint

Venture, or the BREDS-advised private fund, as we do not have a controlling financial interest. As of September 30, 2026,

the aggregate value of our equity investment in our Bank Loan Portfolio Joint Venture was $92.3 million and our

ownership interest was 35%, and the aggregate value of our equity investment in our Net Lease Joint Venture was

$219.3 million and our ownership interest was 75%. As of September 30, 2026, we had not made an equity investment in

the BREDS-advised private fund. We, these joint ventures, these Blackstone-advised investment vehicles, and other

Blackstone affiliates have engaged and may in the future engage in certain investment, financing, derivative and/or hedging

arrangements related to these unconsolidated entities.

In the second quarter of 2026,one of our senior loans to a borrower controlled by Blackstone-advised investment vehicles

was modified. The terms of the modification (including, among other changes, an extension of the maturity date, a

reduction in the contractual interest rate, and a meaningful additional commitment and credit support from the borrower)

were negotiated by our third-party co-lenders. We continue to forgo all non-economic rights under the loan, including

voting rights, so long as the Blackstone-advised investment vehicles control the borrower.

21. COMMITMENTS AND CONTINGENCIES

Unfunded Commitments Under Loans Receivable

As of September 30, 2026, we had aggregate unfunded commitments of $951.0 million across 47 loans receivable, and

$539.6 million of committed or identified financings for those commitments, resulting in net unfunded commitments of

$411.4 million. The unfunded commitments above include$35.6 million related to fiveloans receivable, held-for-sale that

were sold subsequent to September 30, 2026. 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 of1.6 years.

57

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Principal Debt Repayments

Our contractual principal debt repayments as of September 30, 2026 were as follows ($ in thousands):

DownloadSimilarLinkTag

Year		Secured Debt(1)		Asset-Specific Debt(1)		Term Loans(2)		Senior Secured Notes		Convertible Notes(3)		Other Secured Debt(4)		Total(5)
2026 (remaining)		$867,651		$—		$4,810		$—		$—		$—		$872,461
2027		1,135,016		—		19,239		335,316		266,157		—		1,755,728
2028		1,316,905		—		19,239		—		—		—		1,336,144
2029		1,046,590		460,957		453,085		450,000		—		—		2,410,632
2030		1,960,680		528,547		748,851		—		—		38,077		3,276,155
Thereafter		866,068		—		665,000		450,000		—		34,562		2,015,630
Total obligation		$7,192,910		$989,504		$1,910,224		$1,235,316		$266,157		$72,639		$11,666,750

(1)Our secured debt and asset-specific debt agreements are generally term-matched to their underlying collateral.

Therefore, the allocation of payments under such agreements is generally 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.

(2)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 10 for further details on our Term Loans.

(3)Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer

to Note 12 for further details on our Convertible Notes.

(4)Amounts are included in other liabilities on our consolidated balance sheets.

(5)Total does not include $2.7 billion of consolidated securitized debt obligations, as the satisfaction of these liabilities

will not require cash outlays from us.

Board of Directors’ Compensation

As of September 30, 2026, our seven non-employee directors are entitled to annual compensation of $210,000 each, of

which $95,000 is paid in cash and $115,000 is paid in the form of deferred stock units or, at their election, shares of

restricted common stock. As of September 30, 2026, the other two board members are employees of affiliates of our

Manager who also serve as executive officers and they are not compensated by us for their service as directors. In addition,

(i) the lead independent director receives additional annual cash compensation of $30,000, (ii) the chairs of our audit,

compensation, and corporate governance committees receive additional annual cash compensation of $20,000, $15,000,

and $10,000, respectively, and (iii) the members of our audit and investment risk management committees receive

additional annual cash compensation of $10,000 and $7,500, respectively.

Litigation

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of

September 30, 2026, we were not involved in any material legal proceedings.

22. SEGMENT REPORTING

Operating segments are defined as components of a business that can earn revenues and incur expenses for which discrete

financial information is available that is evaluated on a regular basis by the chief operating decision maker, or CODM. Our

CODM is, collectively, our Chief Executive Officer and Chief Financial Officer, who decide how to allocate resources and

assess performance. A single management team reports to the CODM, who manages the entire business.

We have determined that we have one reportable segment based on how the CODM reviews and manages the business,

which originates and acquires commercial mortgage loans and related investments.

Our CODM reviews, among other things, consolidated net income (loss) that is reported on the consolidated statements of

operations to make decisions, allocate resources and assess performance and does not evaluate the net income (loss) from

any separate geography or product line. The measure of segment assets is reported on the consolidated balance sheets as

total consolidated assets.

58

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, 2025. 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, 2025 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 secured credit facilities, issuing collateralized loan obligations,

or CLOs, other securitization transactions, syndicating senior loans and/or participations, and other forms of asset-level

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 Real Estate. Blackstone Real Estate was founded in 1991 and is the world’s largest owner of commercial real

estate.Blackstone Real Estate operates as one globally integrated business withinvestments in North America, Europe,

Asia and Latin America. In the United States, Blackstone Real Estate is one of the largest owners of rental housing,

industrial, office, hospitality and retail assets.The market-leading real estate expertise derived from the strength of the

Blackstone platform deeply informs our credit and underwriting process, and we believe it gives us the tools to 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.

Recent Developments

Loan Portfolio Sale

During the three months ended September 30, 2026, we entered into an agreement to sell eight whole mortgage loans to an

unaffiliated third party for total estimated net sales proceeds of $615.6 million, which resulted in these loans being

classified as loans receivable, held-for-sale on our consolidated balance sheets as of September 30, 2026. This resulted in a

$63.9 million valuation adjustment recognized to reduce the carrying value of these loans, which was $679.5 million prior

to the adjustment. Two of the whole loans consisted of both a performing senior loan and an impaired subordinate loan.

The two subordinate loans carried $61.9 million of previously recorded asset-specific CECL reserves. Six of the loans were

collateralized by office assets and two were collateralized by multifamily assets, all of which were located in the United

States. The valuation adjustment was included in valuation adjustment on loans receivable, held-for-sale on our

consolidated statements of operations during the three months ended September 30, 2026. The sale of these loans closed

subsequent to September 30, 2026.

59

Fourth Quarter Dividend

In October 2026, we declared a dividend of $0.30 per share of common stock for the fourth quarter of 2026, which is

payable on January 15, 2027 to stockholders of record as of December 31, 2026.

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 realized gains and losses, and book value

per share. For the three months endedSeptember 30, 2026, we recorded basic net loss per share of $1.95, declared a

dividend of $0.47 per share, reported $0.38 per share of Distributable Earnings, and reported $0.42 per share of

Distributable Earnings prior to realized gains and losses. In addition, our book value as of September 30, 2026 was $17.06

per share, which is net of cumulative CECL reserves of $3.64 per share, and accumulated depreciation and amortization of

owned real estate assets, including our share related to unconsolidated entities, of $0.93 per share.

As further described below, Distributable Earnings and Distributable Earnings prior to realized gains and losses 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 realized gains and losseshelp 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 loss per share and dividends declared per share ($ in thousands,

except per share data):

DownloadSimilarLinkTag

	Three Months Ended
	September 30, 2026		June 30, 2026
Net loss(1)	$(327,005)		$(81,222)
Weighted-average shares outstanding, basic	167,959,467		168,964,515
Net loss per share, basic	$(1.95)		$(0.48)
Dividends declared per share	$0.47		$0.47

(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

Distributable Earnings and Distributable Earnings prior to realized gains and losses 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 realized gains and losses is calculated net

of the incentive fee expense that would have been recognized if such realized gains or losses had not occurred.

60

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

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 16 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 investment 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 realized gains and losses, which include but

are not limited 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 realized gains or losses. We

may make similar adjustments with respect to other types of investments, if and when applicable transactions occur. During

the period from the first quarter of 2024 to the fourth quarter of 2025, we reported this metric as Distributable Earnings

prior to charge-offs of CECL reserves, as the only applicable realized gains or losses during such period were charge-offs

of CECL reserves. We utilize Distributable Earnings prior to realized gains and losses 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 realized gains and losses is

calculated net of the incentive fee expense that would have been recognized if such realized gains or losses had not

occurred.

Distributable Earnings and Distributable Earnings prior to realized gains and losses 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 realized

gains and losses 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 realized gains and losses may not be comparable to similar metrics reported by other companies.

61

The following table provides a reconciliation of Distributable Earnings and Distributable Earnings prior to realized gains

and losses to GAAP net loss ($ in thousands, except per share data):

DownloadSimilarLinkTag

	Three Months Ended
	September 30, 2026		June 30, 2026
Net loss(1)	$(327,005)		$(81,222)
Valuation adjustment on loans receivable, held-for-sale(2)	63,909		—
Charge-offs of CECL reserves(3)	(6,874)		(28,620)
Increase in CECL reserves	264,766		134,403
Depreciation and amortization of owned real estate(4)	23,199		21,104
Impairment of owned real estate(5)	36,371		—
Non-cash compensation expense	6,677		6,675
Realized hedging and foreign currency loss, net(6)	(2,900)		(1,098)
Allocable share of adjustments related to unconsolidated entities(7)	7,013		508
Cash income from Agency Multifamily Lending Partnership, net(8)	30		30
Adjustments attributable to non-controlling interests, net	(30)		(26)
Other items	(1,052)		(18)
Distributable Earnings	$64,104		$51,736
Charge-offs of CECL reserves(3)	6,874		28,620
Allocable share of adjustments related to unconsolidated entities(7)	265		51
Distributable Earnings prior to realized gains and losses	$71,243		$80,407
Weighted-average shares outstanding, basic(9)	167,959,467		168,964,515
Distributable Earnings per share, basic	$0.38		$0.31
Distributable Earnings prior to realized gains and losses per share, basic	$0.42		$0.48

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

(2)Represents unrealized losses recognized on loans that were classified as held-for-sale to reduce them to their fair

value.

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

(4)Represents depreciation of owned real estate assets and amortization of intangible real estate assets and liabilities.

(5)Represents non-cash valuation adjustments recognized to reduce the carrying values of owned real estate assets to

their estimated fair value.

(6)Represents realized losses 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 statements.

(7)Allocable share of adjustments related to unconsolidated entities for the three months endedSeptember 30, 2026

reflects our share of non-cash items such as (i) $2.1 million of unrealized losses recorded by such unconsolidated

entities, (ii)$5.2 million of depreciation and amortization, and (iii) $(0.3) million of related adjustments for realized

gains. For the three months endedJune 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.

(8)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 further information

on our Agency Multifamily Lending Partnership.

(9)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 14 to our

consolidated financial statements for the calculation of diluted net income per share.

62

Book Value Per Share

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

DownloadSimilarLinkTag

	September 30, 2026		June 30, 2026
Stockholders’ equity	$2,837,609		$3,261,540
Shares
Class A common stock	165,988,840		168,543,591
Deferred stock units	379,690		369,548
Total outstanding	166,368,530		168,913,139
Book value per share(1)	$17.06		$19.31

(1)The book value per share excludes shares issuable from a potential conversion of our Convertible Notes then

outstanding. Refer to Note 14 to our consolidated financial statements for the calculation of diluted net income per

share.

63

II. Investments

Investment Portfolio

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 investments in debt

securities. The chart below details the composition of our Investment Portfolio as of September 30, 2026:

Investment Portfolio(1)(2)

Included in our Loan Portfolio(3)

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

(i) our Loan Portfolio, which represents net book value of loans held-for-investment, which reflects our 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 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)Represents the types of properties securing the loans in our Loan Portfolio.

Refer to section VII of this Item 2 for details of our Loan Portfolio, on a loan-by-loan basis.

64

Loan Portfolio

Loan Originations

During the three months endedSeptember 30, 2026, we originated or acquired $264.2 million of loans, inclusive of

additional commitments made under existing loans.

Loan Portfolio Activity

During the three months endedSeptember 30, 2026, loan fundings totaled $366.3 million and loan repayments and sales

totaled $2.3 billion.

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

DownloadSimilarLinkTag

	Three Months Ended September 30, 2026		Nine Months Ended September 30, 2026
Loan fundings(1)	$366,277		$1,826,981
Loan repayments and sales(1)(2)	(2,303,252)		(4,122,531)
Total net repayments	$(1,936,975)		$(2,295,550)

(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.

(2)Included in these amounts are sales of $251.5 million of pari passu participations in two loans collateralized by

properties located in the United Kingdom.

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

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	September 30, 2026
Number of loans	114
Principal balance	$14,612,118
Net book value	$13,966,510
Unfunded loan commitments(1)	$915,385
Weighted-average cash coupon(2)	+ 3.08%
Weighted-average all-in yield(2)	+ 3.43%
Weighted-average maximum maturity (years)(3)	3.0
Origination loan-to-value (LTV)(4)	64%

(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 loan. As of

September 30, 2026, 96% of our loans by principal balance earned a floating rate of interest, primarily indexed to

SOFR. The remaining 4% of our loans by principal balance earned a fixed rate of interest.

(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 September 30, 2026,44% of our loans by principal balance were subject to yield maintenance

or other prepayment restrictions and 56% 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.

65

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

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		Loan Portfolio Principal Balance
Index Rate Floors		USD		Non-USD(1)		Total
Fixed Rate		$399,485		$135,303		$534,788
0.00% or no floor(2)		1,199,356		3,203,643		4,402,999
0.01% to 1.00% floor		649,822		819,567		1,469,389
1.01% to 2.00% floor		778,083		1,042,018		1,820,101
2.01% to 3.00% floor		5,343,828		408,157		5,751,985
3.01% or more floor		325,141		307,715		632,856
Total(3)		$8,695,715		$5,916,403		$14,612,118

(1)Includes Euro, British Pound Sterling, Australian Dollar, and Canadian Dollar currencies.

(2)Includes all impaired loans.

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

balance was 1.73%. Excluding 0.00% index rate floors and loans with no floor, the weighted-average index rate

floor was 2.28%.

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

principal balance amounts in thousands):

DownloadSimilarLinkTag

Loan Count		Currency		Loan Portfolio Principal Balance		Floating Rate Index(1)		Cash Coupon(2)		All-in Yield(2)
81		$		$8,695,715		SOFR		+ 3.01%		+ 3.41%
15		£		£1,655,894		SONIA		+ 2.75%		+ 3.00%
13		€		€1,814,831		EURIBOR		+ 2.63%		+ 2.98%
5		Various		$1,663,655		Other(3)		+ 4.32%		+ 4.55%
114				$14,612,118				+ 3.08%		+ 3.43%

(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 CORRA and BBSY indices.

66

The charts below detail the geographic distribution and types of properties securing our Loan Portfolio, as of

September 30, 2026:

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 September 30,

2026, which is our principal balance of loans receivable, held-for-investment, net of (i) $989.5 million of asset-

specific debt, (ii) $4.6 million of cost-recovery proceeds, and (iii) our total loans receivable CECL reserve of

$597.3 million. Our asset-specific debt is 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 property types based on the allocated value of

each property type.

Refer to section VII of this Item 2 for details of our Loan Portfolio, on a loan-by-loan basis.

67

Portfolio Management

As of September 30, 2026,93% of our loans, based on net loan exposure, were performing with risk ratings of “1” through

“4,” and the remaining 7% were impaired with a risk rating of “5.” As of September 30, 2026, one of our performing loans

with an amortized cost basis of $149.8 million was in payment default, was greater than 90 days past due on its interest

payment, and had a risk rating of “4.” This loan was not impaired as of September 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. 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 September 30, 2026, we had an aggregate $444.5 million asset-specific CECL reserve related to

12 of our loans receivable, with an aggregate amortized cost basis of $1.3 billion, net of cost-recovery proceeds. This

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

September 30, 2026.

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

Blackstone Real Estate. Blackstone Real Estate was founded in 1991 and is the world’s largest owner of commercial real

estate with investments in North America, Europe, Asia and Latin America. In the United States, Blackstone Real Estate is

one of the largest owners of rental housing, industrial, office, hospitality and retail assets.

As discussed in Note 2 to our consolidated financial statements, we perform a quarterly review of our loan portfolio, assess

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

September 30, 2026, our loan portfolio had a weighted-average risk rating of 3.1, based on net loan exposure.

The following table allocates the amortized cost basis and net loan exposure balances of our Loan Portfolio based on our

internal risk ratings as of September 30, 2026 ($ in thousands):

DownloadSimilarLinkTag

		September 30, 2026
Risk Rating		Number of Loans		Amortized Cost Basis		Net Loan Exposure(1)
1		1		$60,952		$60,986
2		17		1,970,144		1,802,276
3		76		10,314,438		9,414,183
4		8		893,154		864,194
5		12		1,325,146		879,095
Loans receivable, held-for-investment		114		$14,563,834		$13,020,734

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

2026, which is our principal balance of loans receivable, held-for-investment, net of (i) $989.5 million of asset-

specific debt, (ii) $4.6 million of cost-recovery proceeds, and (iii) our total loans receivable CECL reserve of

$597.3 million. Our asset-specific debt is 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 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.

68

During the three months endedSeptember 30, 2026, the CECL reserves against our loans receivable, held-for-investment

portfolioincreased by $199.5 million. This increase was primarily driven by a $293.8 millionincrease in our asset-specific

CECL reserve, partially offset by a $25.5 milliondecrease in our general CECL reserve. The increase in our asset-specific

reserve was primarily driven by six additional loans with an aggregate amortized cost basis of $787.8 million that were

impaired during the three months endedSeptember 30, 2026, of which five are secured by office properties, and one is

secured by a hospitality 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. During the three months

endedSeptember 30, 2026, we recorded $8.7 million of interest income on these loans. Upon determining that the six loans

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

decrease in our general CECL reserve was primarily driven by changes in risk ratings, including the impact of the six

newly impaired loans moving out of the general CECL reserve pool, and a decrease in our loans receivable, held-for-

investment balance, partially offset by an increase in the historical loss rate used in reserve calculations related to the

additional reserve charge-offs.

The increase in our asset-specific reserve was reduced by (i) the transfer of $61.9 million of CECL reserves related to two

previously impaired subordinate loans that were transferred to held-for-sale as of September 30, 2026, which were sold

subsequent to September 30, 2026, and (ii) charge-offs of $6.9 million primarily related to the resolution of one previously

impaired loan as a result of our acquisition of title through a deed-in-lieu of foreclosure of a mixed-use collateral property

located in Richmond, CA, which is now included on our consolidated balance sheet as an owned real estate asset. As a

result of these changes, our total loans receivable CECL reserves increased to $597.3 million as of September 30, 2026.

As of September 30, 2026, we had an aggregate $444.5 million asset-specific CECL reserve related to 12 of our loans

receivable, held-for-investment, with an aggregate amortized cost basis of $1.3 billion, net of cost-recovery proceeds.

During the three months endedSeptember 30, 2026, we received $4.4 million of cash proceeds from previously impaired

loans that were applied as a reduction to the amortized cost basis of each respective loan. Impairments are each determined

individually as a result of changes in the specific credit quality factors for each such loan. These factors included, among

others, (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and

(iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan. This asset-

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

September 30, 2026.

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

our CECL reserves.

69

Owned Real Estate

As part of our portfolio management strategy to maximize economic outcomes, we may hold certain owned real estate

assets, resulting from transactions in which we assume legal title, physical possession, or control 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. As of September 30, 2026, we had 15

owned real estate assets with an aggregate carrying value of $1.5 billion.

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

DownloadSimilarLinkTag

		Acquisition Date		Location		Property Type		Acquisition Date Fair Value		SQFT / Units / Keys
1		September 2025		New York, NY		Hospitality		$228,253		933 keys
2		December 2024		San Francisco, CA		Hospitality		201,530		686 keys
3		June 2026		Dallas, TX		Multifamily		149,906		1,530 units
4		December 2024		El Segundo, CA		Office		145,363		494,532 sqft
5		December 2025		New York, NY		Mixed-use		133,313		709,204 sqft
6		September 2025		Atlanta, GA		Office		132,974		1,184,916 sqft
7		November 2025		Denver, CO		Office		114,748		538,179 sqft
8		October 2024		Washington, DC		Office		107,016		892,480 sqft
9		September 2026		Richmond, CA		Mixed-use		82,901		486,804 sqft
10		September 2024		Burlington, MA		Office		64,628		379,018 sqft
11		March 2024		Mountain View, CA		Office		60,203		150,507 sqft
12		February 2025		Chicago, IL		Office		45,045		517,115 sqft
13		March 2026		San Francisco, CA		Hospitality		41,082		459 keys
14		December 2024		Denver, CO		Office		33,337		170,304 sqft
15		July 2024		San Antonio, TX		Multifamily		17,491		198 units
								$1,557,790

Bank Loan Portfolio Joint Venture

In the second quarter of 2025, we entered into a joint venture with a Blackstone-advised investment vehicle to acquire

portfolios of performing commercial mortgage loans, or our Bank Loan Portfolio Joint Venture. In the second quarter of

2025, the Bank Loan Portfolio Joint Venture acquired a $1.4 billion portfolio of 171 performing senior commercial real

estate loans from a regional bank. The loans are secured primarily by retail and multifamily properties located across

various markets in the Mid-Atlantic region, are primarily fixed rate, and were acquired at a discount to par. In the third

quarter of 2025, the Bank Loan Portfolio Joint Venture acquired a $606.0 million portfolio of 425 performing senior

commercial real estate loans from a regional bank. The loans are secured primarily by net lease retail assets located

throughout the United States, are fixed rate, and were acquired at a discount to par. We have an aggregate 35% ownership

interest in the joint venture as of September 30, 2026. As of September 30, 2026, our share of the fair value of the loans

held by our Bank Loan Portfolio Joint Venture was $451.9 million.

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

entities. As of September 30, 2026, our investment in the joint venture totaled $92.3 million. During the nine months ended

September 30, 2026, we did not make any contributions to the joint venture, received $29.6 million of distributions, and

recorded $10.9 million of income from unconsolidated entities in our consolidated statements of operations.

70

Net Lease Joint Venture

In the fourth quarter of 2024, we entered into a joint venture with a Blackstone-advised investment vehicle to invest in

triple net lease properties, or our Net Lease Joint Venture. Our investment in the joint venture is recorded on our

consolidated balance sheets in investments in unconsolidated entities. As of September 30, 2026, our investment in the

joint venture totaled $219.3 million. During the nine months endedSeptember 30, 2026, we contributed $129.6 million to

the joint venture, received $29.2 million of distributions, and recorded $2.0 million of income from unconsolidated entities

in our consolidated statements of operations, inclusive of $12.7 million of depreciation and amortization expense. We have

an aggregate 75% ownership interest in the joint venture as of September 30, 2026. As of September 30, 2026, our share of

the carrying value of investments held by our Net Lease Joint Venture was $747.2 million.

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

Venture as of September 30, 2026:

DownloadSimilarLinkTag

Tenant Industry		Number of Properties		% of Annualized Base Rent
Medical / Dental		64		20%
Early Childhood Education		42		15
Car Washes		32		15
Restaurants - Quick Service		73		14
Automotive Service		51		13
Pet Care		50		10
Industrial		4		3
Home Improvement		9		3
Convenience Stores		13		2
Wholesale Trade		1		1
Grocery		3		1
Other		6		3
Total		348		100%
State		Number of Properties		% of Annualized Base Rent
Texas		44		13%
Florida		28		12
Illinois		30		8
Georgia		20		7
California		9		6
Missouri		18		5
South Carolina		11		5
Minnesota		17		4
Indiana		15		4
Arizona		9		4
Other (26 states)		147		32
Total		348		100%

As of September 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 3x.

71

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 originate, acquire, and fund construction loans collateralized by single family homes located

in various markets across the United States, which we refer to as ourHomebuilder Finance Joint Venture. Our aggregate

ownership interest in our Homebuilder Finance Joint Venture was 45% as of September 30, 2026. Our Homebuilder

Finance Joint Venture initially acquired a seed portfolio of 36 loans with an aggregate outstanding balance of

$286.7 million, and has since originated and acquired additional loans. As of September 30, 2026, our share of fair value of

the loans held by this joint venture was $191.2 million.

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

entities. As of September 30, 2026, our investment in the joint venture totaled $59.1 million. During the nine months ended

September 30, 2026, we made $56.6 million of contributions to the joint venture, did not receive any distributions, and

recorded $2.6 million of income from unconsolidated entities in our consolidated statements of operations.

Core+ Real Estate Debt Fund Investment

In the fourth quarter of 2025, we made a $75.0 million capital commitment at the initial closing of a new BREDS-advised

private fund formed to invest in Core+ real estate debt investments in the U.S. and Canada. Blackstone affiliates, including

us, do not pay management fees or carried interest with respect to their investments in the BREDS-advised private fund.

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

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

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

including us, on a pro rata basis.

Investments in Debt Securities

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

DownloadSimilarLinkTag

Investment

Issuance Date

Asset Class

Credit Rating

Face Value

Fair Value

Interest Rate(1)

Swapped Rate

All-in Yield

Maturity

UK Bank Loan Portfolio SRT(2)

Mar 27, 2026

Various

n/a

$66,325

$66,325

+ 7.00%

n/a

+ 7.00%

Oct 30, 2037

Senior secured notes

Aug 27, 2026

Data Center

BBB-

50,000

48,750

(3)

6.63%

+ 2.58%

(4)

+ 3.07%

Sep 1, 2031

Senior secured notes

Aug 27, 2026

Home Building

BBB

28,980

28,980

+ 3.25%

n/a

+ 3.25%

Dec 20, 2030

Total debt securities

$145,305

$144,055

(1)The UK Bank Loan Portfolio SRT is indexed to SONIA and the Home Building senior secured notes are indexed to

one-month SOFR.

(2)Represents an investment in a significant risk transfer, or SRT, transaction with a UK financial institution structured

as a credit-linked note, or the UK Bank Loan Portfolio SRT. The investment constitutes the first-loss tranche of a

reference portfolio comprising a diversified, granular portfolio of low-leverage commercial real estate loans held by

the UK financial institution. As of September 30, 2026, no realized credit losses have been incurred with respect to

the underlying reference loan portfolio.

(3)These senior secured notes were issued at 97.5% of par.

(4)In connection with this investment, we entered into an interest rate swap to effectively convert our fixed-rate

exposure to floating-rate exposure, indexed to one-month SOFR. Refer to Note 13 to our consolidated financial

statements for additional information.

Agency Multifamily Lending Partnership

In the second quarter of 2024, we entered into an agreement with M&T Realty Capital Corporation, or MTRCC, a

subsidiary of M&T Bank, that allows our borrowers to access multifamily agency financing through MTRCC’s Fannie

Mae DUS and Freddie Mac Optigo lending platforms, or our Agency Multifamily Lending Partnership. We will receive a

portion of origination, servicing, and other fees for loans that we refer to MTRCC for origination under both the Fannie

72

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 nine months endedSeptember 30, 2026, we did not

refer any loans to MTRCC.

III. Financings

Loan Portfolio Financings

Our loan portfolio financing consists of secured debt, securitizations, and asset-specific debt. The following table details

our portfolio financing ($ in thousands):

DownloadSimilarLinkTag

	Portfolio Financing Outstanding Principal Balance
	September 30, 2026		December 31, 2025
Secured debt	$7,192,910		$10,125,839
Securitizations	2,653,545		2,149,496
Asset-specific debt	989,504		999,810
Total loan portfolio financing	$10,835,959		$13,275,145

Secured Debt

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

DownloadSimilarLinkTag

																		Recourse Limitation
Currency		Lenders(1)		Borrowings		Wtd. Avg. Maturity(2)		Wtd. Avg. All-in Cost(3)(4)(5)			Loan Count		Collateral(6)		Wtd. Avg. All-in Yield(3)(4)			Wtd. Avg.		Range
USD		14		$3,159,868		Sep 2028		+1.74%			70		$5,524,804		+2.83%			37%		25% - 100%
GBP		6		1,708,884		Apr 2029		+1.67%			13		2,153,769		+2.92%			25%		25%
EUR		6		1,164,756		Dec 2030		+1.61%			13		1,818,916		+2.97%			41%		10% - 100%
Others(7)		4		1,159,402		Dec 2029		+2.36%			5		1,470,430		+4.69%			27%		25% - 50%
Total		16		$7,192,910		May 2029		+1.80%			101		$10,967,919		+3.17%			33%		10% - 100%

(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.

(4)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 owned real estate assets.

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

applicable to recent or future borrowings.

(6)Represents the principal balance of the collateral loans receivable, held-for-investment and the carrying value of the

collateral owned real estate assets and loans receivable, held-for-sale.

(7)Includes Australian Dollar and Canadian Dollar currencies.

73

Securitizations

We have financed certain pools of our loans through CLOs and have also financed one of our loans through a securitization

vehicle, or the European Loan Securitization. The following table details our securitized debt obligations and the

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

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	September 30, 2026
Securitized Debt Obligations		Count		Principal Balance		Book Value(1)		Wtd. Avg. Yield/Cost(2)		Term(3)
CLOs
2026 FL6 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1		$880,000		$872,928		+ 1.84%		August 2043
Underlying Collateral Assets		19		999,379		999,379		+ 3.03%		October 2029
2025 FL5 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1		831,250		823,848		+ 2.15%		October 2042
Underlying Collateral Assets		18		939,000		939,000		+ 3.35%		September 2029
2021 FL4 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1		376,967		376,967		+ 1.88%		May 2038
Underlying Collateral Assets		10		446,529		443,144		+ 3.18%		August 2027
2020 FL2 Collateralized Loan Obligation
Senior CLO Securities Outstanding		1		377,313		377,313		+ 1.98%		February 2038
Underlying Collateral Assets		8		570,241		570,241		+ 3.07%		March 2027
Total CLOs
Senior CLO Securities Outstanding		4		$2,465,530		$2,451,056		+ 1.97%
Underlying Collateral Assets		55		2,955,149		2,951,764		+ 3.17%
Securitizations
European Loan Securitization
Financing Provided		1		$188,015		$185,814		+ 1.71%		July 2030
Underlying Collateral Assets(4)		1		242,399		240,192		+ 2.97%		July 2030
Total
Senior CLO Securities Outstanding / Financing Provided(5)		5		$2,653,545		$2,636,870		+ 1.95%
Underlying Collateral Assets		56		3,197,548		3,191,956		+ 3.15%

(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, while all-in cost includes the amortization of deferred

origination fees and financing costs.The weighted-average all-in yield and cost are expressed as a spread over the

relevant floating benchmark rates, which is SOFR for the CLOs and EURIBOR for theEuropean Loan

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

owned real estate assets, and cash from repayment proceeds held in certain of our CLOs that may be used to add

new eligible collateral assets.

(3)Underlying collateral assets term represents the weighted-average final maturity of such loans, assuming all

extension options are exercised by the borrower, and excludes owned real estate 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.

(4)We financed our $55.8 million retained interests in the securitization under a repurchase agreement structured

without capital markets-based mark-to-market provisions. The amount of the financing is included in other liabilities

on our consolidated balance sheets.

(5)During the nine months endedSeptember 30, 2026, we recorded $114.1 million of interest expense related to our

securitized debt obligations.

74

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

obligations.

Asset-Specific Debt

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

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		September 30, 2026
Asset-Specific Debt		Count		Principal Balance		Book Value(1)		Wtd. Avg. Yield/Cost(2)		Wtd. Avg. Term(3)
Financing provided		4		$989,504		$988,546		+ 2.75%		February 2030
Collateral assets		4		$1,230,842		$1,224,637		+ 4.12%		February 2030

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

(2)The weighted-average all-in yield and cost are expressed as a spread over 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):

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	Corporate Financing Outstanding Principal Balance
	September 30, 2026		December 31, 2025
Term loans	$1,910,224		$1,847,726
Senior secured notes	1,235,316		785,316
Convertible notes	266,157		266,157
Total corporate financings	$3,411,697		$2,899,199

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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 September 30, 2026 ($ in thousands):

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Corporate Financing		Face Value		Interest Rate(1)		Swapped Rate(2)		All-in Cost(1)(3)		Maturity
Term Loans
B-7 Term Loan		$448,574		+ 2.50%		n/a		+ 3.10%		May 9, 2029
B-8 Term Loan		694,750		+ 2.50%		n/a		+ 2.95%		December 19, 2032
B-9 Term Loan		766,900		+ 2.50%		n/a		+ 2.97%		December 10, 2030
Total term loans		$1,910,224
Senior Secured Notes
October 2021		$335,316		3.75%		n/a		4.06%		January 15, 2027
December 2024		450,000		7.75%		+ 3.95%		8.14%		December 1, 2029
May 2026		450,000		6.25%		+ 2.50%		6.68%		June 1, 2031
Total senior secured notes		$1,235,316
Convertible Notes
Convertible Notes(4)		$266,157		5.50%		n/a		5.79%		March 15, 2027
Total corporate financings		$3,411,697

(1)The B-7 Term Loan and B-9 Term Loan borrowings are subject to a benchmark interest rate floor of0.50%.

(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.

(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 September 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

Generally, our business model is such that rising interest rates will increase our net income, while declining interest rates

will decrease net income. However, in periods in which our floating rate liabilities exceed our floating rate assets, including

as a result of floating rate corporate debt or a greater concentration in owned real estate, loans on nonaccrual status, or

similar assets that do not generate floating rate interest income, rising interest rates may decrease our net income. As of

September 30, 2026, 96% 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 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.

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

(amounts in thousands):

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	USD		GBP		EUR		All Other(1)
Floating rate loans(2)(3)(4)(5)	$7,887,109		£1,543,544		€1,613,478		$1,663,655
Floating rate portfolio financings(2)(5)(6)(7)	(6,419,891)		(1,288,265)		(1,193,972)		(1,318,814)
Floating rate corporate financings(8)	(2,810,224)		—		—		—
Net floating rate exposure	$(1,343,006)		£255,279		€419,506		$344,841
Net floating rate exposure in USD(9)	$(1,343,006)		$338,627		$475,301		$344,841

(1)Includes Australian Dollar and Canadian Dollar 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 $1.3 billion of principal balance on floating rate impaired loans.

(4)Our loan agreements generally require our borrowers to purchase interest rate caps, which mitigates our borrowers’

exposure to an increase in interest rates.

(5)Excludes amounts related to our investments in unconsolidated entities and investments in debt securities.

(6)Includes amounts outstanding under secured debt, securitizations, and asset-specific debt. Excludes amounts related

to the indebtedness of unconsolidated entities.

(7)Excludes 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.

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

due 2031. 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 September 30, 2026.

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.

77

IV. Our Results of Operations

Operating Results

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

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

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	Three Months Ended				Change
	September 30, 2026		June 30, 2026		$
Income from loans and other investments
Interest and related income	$280,614		$309,748		$(29,134)
Less: Interest and related expenses	216,192		227,182		(10,990)
Income from loans and other investments, net	64,422		82,566		(18,144)
Revenue from owned real estate	77,481		75,497		1,984
Total net revenue	141,903		158,063		(16,160)
Expenses
Management and incentive fees	14,481		14,641		(160)
General and administrative expenses	13,034		14,918		(1,884)
Expenses from owned real estate	81,222		81,440		(218)
Total expenses	108,737		110,999		(2,262)
Increase in current expected credit loss reserve	(264,766)		(134,403)		(130,363)
Income from unconsolidated entities	5,489		8,570		(3,081)
Impairment of owned real estate	(36,371)		—		(36,371)
Valuation adjustment on loans receivable, held-for-sale	(63,909)		—		(63,909)
Other income, net	2		3		(1)
Loss before income taxes	(326,389)		(78,766)		(247,623)
Income tax provision	1,256		2,501		(1,245)
Net loss	(327,645)		(81,267)		(246,378)
Net loss attributable to non-controlling interests	640		45		595
Net loss attributable to Blackstone Mortgage Trust, Inc.	$(327,005)		$(81,222)		$(245,783)
Net loss per share of common stock, basic and diluted	$(1.95)		$(0.48)		$(1.47)
Weighted-average shares of common stock outstanding, basic and diluted	167,959,467		168,964,515		(1,005,048)
Dividends declared per share	$0.47		$0.47		$—

Income from loans and other investments, net

Income from loans and other investments, net decreased $18.1 million during the three months endedSeptember 30, 2026

compared to the three months endedJune 30, 2026. The decrease was primarily driven by (i) a decrease in interest income

due to a $1.9 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 during the three months ended

September 30, 2026. These decreases were partially offset by a decrease in interest expense due to a $1.5 billion decrease

in the weighted-average principal balance of our outstanding financing arrangements during the three months ended

September 30, 2026.

Revenue from owned real estate

Revenue from owned real estateincreased by $2.0 million during the three months endedSeptember 30, 2026 compared to

the three months endedJune 30, 2026. The increase was primarily due to the three months endedSeptember 30, 2026

representing the first full quarter of revenue from one additional owned real estate asset that was acquired during the three

months endedJune 30, 2026. This increase was partially offset by the seasonality of the operations at our hospitality assets.

78

Expenses

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

expenses from owned real estate. Expenses decreased by $2.3 million during the three months endedSeptember 30, 2026

compared to the three months endedJune 30, 2026, primarily due to (i) a $1.9 milliondecrease in general and

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

Venture during the three months endedJune 30, 2026, and (ii) a $0.2 milliondecrease in expenses from owned real estate,

primarily due to a $6.1 million decrease in tax expense from the benefit of a property tax abatement received by one of our

owned real estate assets during the three months endedSeptember 30, 2026, which was mostly offset by the three months

endedSeptember 30, 2026 representing the first full quarter of expenses from one additional owned real estate asset that

was acquired during the three months endedJune 30, 2026.

Changes in current expected credit loss reserve

During the three months endedSeptember 30, 2026, we recorded a $264.8 millionincrease in our CECL reserves, as

compared to a $134.4 million increase during the three months endedJune 30, 2026. The increase during the three months

endedSeptember 30, 2026 was primarily due to an increase in our asset-specific CECL reserves, driven by six additional

loans that were impaired during the three months endedSeptember 30, 2026. This was partially offset by a decrease in our

general CECL reserves driven by changes in risk ratings, including the impact of the six newly impaired loans moving out

of the general CECL reserve pool, and a decrease in our loans receivable, held-for-investment balance, partially offset by

an increase in the historical loss rate used in reserve calculations related to the additional reserve charge-offs.

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

loan portfolio and changes in broader market conditions, and there may be volatility in the level of our CECL reserves.

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 ofSeptember 30, 2026.

Income from unconsolidated entities

During the three months endedSeptember 30, 2026, we recorded income from unconsolidated entities of $5.5 million

compared to $8.6 million during the three months endedJune 30, 2026. 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 endedSeptember 30, 2026, compared to unrealized gains during the three months endedJune 30,

2026.

Impairment of owned real estate

During the three months endedSeptember 30, 2026, we recognized an aggregate $36.4 million of impairment charges

related to three owned real estate assets as a result of updated undiscounted cash flow assumptions, primarily to account for

shorter expected hold periods. We did not recognize impairment charges during the three months endedJune 30, 2026.

Valuation adjustment on loans receivable, held-for-sale

During the three months endedSeptember 30, 2026, we recognized a $63.9 millionvaluation adjustment on loans

receivable, held-for-sale related to eight whole loans that were transferred to held-for-sale as of September 30, 2026. The

adjustment reflects the difference between the loans’ carrying value and fair value. We did not recognize such a valuation

adjustment during the three months endedJune 30, 2026.

Income tax provision

The income tax provision decreased by $1.2 million during the three months endedSeptember 30, 2026 compared to the

three months endedJune 30, 2026, primarily due to a decrease in the income tax provisions related to our taxable REIT

subsidiaries.

79

Dividends per share

During the three months endedSeptember 30, 2026, we declared dividends of $0.47 per share, or $78.0 million in

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

aggregate.

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

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

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	Nine Months Ended September 30,				Change
	2026		2025		$
Income from loans and other investments
Interest and related income	$895,919		$1,037,553		$(141,634)
Less: Interest and related expenses	664,110		754,015		(89,905)
Income from loans and other investments, net	231,809		283,538		(51,729)
Revenue from owned real estate	227,572		109,578		117,994
Total net revenue	459,381		393,116		66,265
Expenses
Management and incentive fees	43,935		51,120		(7,185)
General and administrative expenses	41,933		38,937		2,996
Expenses from owned real estate	244,637		137,198		107,439
Total expenses	330,505		227,255		103,250
Increase in current expected credit loss reserve	(454,224)		(94,111)		(360,113)
Income from unconsolidated entities	15,442		1,035		14,407
Net loss on disposition of owned real estate	(160)		—		(160)
Impairment of owned real estate	(36,371)		—		(36,371)
Valuation adjustment on loans receivable, held-for-sale	(63,909)		—		(63,909)
Other income, net	9		389		(380)
(Loss) income before income taxes	(410,337)		73,174		(483,511)
Income tax provision	4,915		3,133		1,782
Net (loss) income	(415,252)		70,041		(485,293)
Net loss (income) attributable to non-controlling interests	728		(32)		760
Net (loss) income attributable to Blackstone Mortgage Trust, Inc.	$(414,524)		$70,009		$(484,533)
Net (loss) income per share of common stock, basic and diluted	$(2.46)		$0.41		$(2.87)
Weighted-average shares of common stock outstanding, basic and diluted	168,663,353		171,903,127		(3,239,774)
Dividends declared per share	$1.41		$1.41		$—

Income from loans and other investments, net

Income from loans and other investments, net decreased $51.7 million during the nine months endedSeptember 30, 2026

compared to the nine months endedSeptember 30, 2025. The decrease was primarily due to (i) a $1.8 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

nine months endedSeptember 30, 2026. These decreases were partially offset by a decrease in interest expense due to (i) a

$261.9 million decrease in the weighted-average principal balance of our outstanding financing arrangements, and (ii)

declines in floating-rate indices.

80

Revenue from owned real estate

Revenue from owned real estateincreased by $118.0 million during the nine months endedSeptember 30, 2026 compared

to the nine months endedSeptember 30, 2025, primarily due to the acquisition or consolidation of five additional owned

real estate assets.

Expenses

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

expenses from owned real estate. Expenses increased by $103.3 million during the nine months endedSeptember 30, 2026

compared to the nine months endedSeptember 30, 2025 primarily due to (i) a $107.4 millionincrease in expenses from

owned real estate due to the acquisition or consolidation of five additional owned real estate assets, and (ii) a $3.0 million

increase in general and administrative expenses due to an increase in professional service fees, partially offset by lower

restricted stock amortization. These increases were partially offset by a $7.2 milliondecreasein 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 nine months endedSeptember 30, 2026, we recorded a $454.2 millionincrease in our CECL reserves, as

compared to a $94.1 million increase during the nine months endedSeptember 30, 2025. The increase during the nine

months endedSeptember 30, 2026 was primarily due to an increase in our asset-specific CECL reserves, driven by 11

additional loans that were impaired during the nine months endedSeptember 30, 2026. This was partially offset by a

decrease in our general CECL reserves driven by changes in risk ratings, including the impact of the 11 newly impaired

loans moving out of the general CECL reserve, partially offset by an increase in the historical loss rate used in reserve

calculations related to the additional CECL charge-offs.

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

loan portfolio and changes in broader market conditions, and there may be volatility in the level of our CECL reserves.

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 ofSeptember 30, 2026.

Income from unconsolidated entities

During the nine months endedSeptember 30, 2026, we recorded income from unconsolidated entities of $15.4 million

compared to income of $1.0 million during the nine months endedSeptember 30, 2025. The increase was primarily due to

(i) higher earnings from our Bank Loan Portfolio Joint Venture, primarily due to realized gains on loan repayments within

the portfolio, (ii) higher earnings from our Net Lease Joint Venture reflecting growth in the portfolio, and (iii) earnings

generated by our Homebuilder Finance Joint Venture, which was formed during the nine months endedSeptember 30,

2026.

Impairment of owned real estate

During the nine months endedSeptember 30, 2026, we recognized an aggregate $36.4 million of impairment charges

related to three owned real estate assets as a result of updated undiscounted cash flow assumptions, primarily to account for

shorter expected hold periods. We did not recognize impairment charges during the nine months endedSeptember 30,

2025.

Valuation adjustment on loans receivable, held-for-sale

During the nine months endedSeptember 30, 2026, we recognized a $63.9 millionvaluation adjustment on loans

receivable, held-for-sale related to eight whole loans that were transferred to held-for-sale as of September 30, 2026. The

adjustment reflects the difference between the loans’ carrying value and fair value. We did not recognize such a valuation

adjustment during the nine months endedSeptember 30, 2025.

81

Income tax provision

The income tax provision increased by $1.8 million during the nine months endedSeptember 30, 2026 as compared to the

nine months endedSeptember 30, 2025, due to an increase in the income tax provisions related to our taxable REIT

subsidiaries.

Dividends per share

During the nine months endedSeptember 30, 2026, we declared dividends of $1.41 per share, or $236.5 million in

aggregate. During the nine months endedSeptember 30, 2025, we declared dividends of $1.41 per share, or $241.5 million

in aggregate.

V. 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 September 30, 2026, our capitalization structure included $2.8 billion of

common equity, $3.4 billion of corporate debt, and $10.8 billion of asset-level financings. Our $3.4 billion of corporate

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

Convertible Notes. Our $10.8 billion of asset-level financings includes $7.2 billion of secured debt, $2.7 billion of

securitizations, and $989.5 million of asset-specific debt. Our asset-level financings are generally structured to provide

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

As of September 30, 2026, we had $1.3 billionof 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 consolidated financial statements for additional details regarding our other

secured debt, secured debt, securitized debt obligations, asset-specific debt, 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:

	September 30, 2026		December 31, 2025
Debt-to-equity ratio(1)(2)	3.9x		3.9x
Total leverage ratio(1)(3)	4.9x		4.5x

(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, the ratio of (i) total outstanding secured debt, other 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, the ratio of (i) total outstanding secured debt, other secured debt,

securitizations, asset-specific debt, Term Loans, Senior Secured Notes, and convertible notes, less cash, to (ii) total

equity.

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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):

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	September 30, 2026		December 31, 2025
Cash and cash equivalents	$511,504		$452,526
Available borrowings under secured debt	782,280		551,552
Loan principal payments held by servicer, net(1)	8,576		15,626
	$1,302,360		$1,019,704

(1)Represents loan principal payments held by our third-party servicers 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 nine months endedSeptember 30, 2026, we generated cash flow from operating activities of $216.5 million and

received $4.0 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, 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 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

9,938,472 shares of class A common stock were available for issuance as of September 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 September 30, 2026. Refer to Note 14 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 outstanding borrowings under secured debt, our asset-

specific debt, our Term Loans, our Senior Secured Notes, and our Convertible Notes. 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.

In October 2025, our board of directors authorized the repurchase of up to$150.0 million of shares of our class A common

stock under our repurchase program. Repurchases may be made from time to time in open market transactions, in privately

negotiated transactions, in agreements and arrangements structured in a manner consistent with Rules 10b-18 and 10b5-1

under the Exchange Act or otherwise. The timing and the actual amounts repurchased will depend on a variety of factors,

including legal requirements, price and economic and market conditions. The repurchase program may be changed,

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

During the nine months endedSeptember 30, 2026, we repurchased 2,766,237 shares of class A common stock at a

weighted-average price per share of $14.39, for a total cost of $39.8 million. As of September 30, 2026, the amount

remaining available for repurchases under the program was $109.8 million.

As of September 30, 2026, we had unfunded commitments of $951.0 million related to 47 loans receivable and $539.6

million of committed or identified financing for those commitments resulting in net unfunded commitments of $411.4

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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 1.6 years.

Contractual Obligations and Commitments

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

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			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)	$950,970		$270,084		$577,599		$103,287		$—
Principal repayments under secured debt(3)	7,192,910		1,942,173		1,890,157		3,058,834		301,746
Principal repayments under asset-specific debt(3)	989,504		—		460,957		528,547		—
Principal repayments of term loans(4)	1,910,224		19,239		473,458		757,778		659,749
Principal repayments of senior secured notes	1,235,316		335,316		—		900,000		—
Principal repayments of convertible notes(5)	266,157		266,157		—		—		—
Principal repayments of other secured debt(6)	72,639		—		—		72,639		—
Interest payments(3)(7)	2,001,024		606,959		920,373		399,192		74,500
Total(8)	$14,618,744		$3,439,928		$4,322,544		$5,820,277		$1,035,995

(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 10 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 12 to our consolidated financial statements for further details on our Convertible Notes.

(6)Amounts are included in other liabilities on our consolidated balance sheets.

(7)Represents interest payments on our secured debt, asset-specific debt, Term Loans, Senior Secured Notes,

Convertible Notes, and other secured debt. Future interest payment obligations are estimated assuming the interest

rates in effect as of September 30, 2026 will remain constant into the future. This is only an estimate as actual

amounts borrowed and interest rates will vary over time.

(8)Total does not include $2.7 billion of consolidated securitized debt obligations, 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 13 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 15 to our consolidated financial statements

for additional terms and details of the fees payable under our Management Agreement.

84

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.

Cash Flows

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

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	Nine Months Ended September 30,
	2026		2025
Cash flows provided by operating activities	$216,483		$139,565
Cash flows provided by investing activities	1,934,529		601,564
Cash flows used in financing activities	(2,089,077)		(694,160)
Net increase in cash and cash equivalents	$61,935		$46,969

We experienced a net increase in cash and cash equivalents of $61.9 million for the nine months endedSeptember 30,

2026, compared to a net increase of $47.0 million for the nine months endedSeptember 30, 2025. During the nine months

endedSeptember 30, 2026, we (i) received $4.0 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 $58.8 million from unconsolidated entities, from

both our Bank Loan Portfolio Joint Venture as a result of repayments, and our Net Lease Joint Venture as a result of

refinancing its portfolio through an asset-backed securitization transaction. Also, during the nine months ended

September 30, 2026, we (i) funded $1.8 billion of loans, (ii) repaid a net $2.8 billion of secured debt borrowings and asset-

specific financings, (iii) repaid $371.3 million of securitized debt obligations, (iv) paid $237.6 million of dividends on our

class A common stock, and (v) invested $186.2 million in unconsolidated entities.

Refer to Note 3 to our consolidated financial statements for further discussion of our loan activity. Refer to Notes 5, 7, 8,

and 14 to our consolidated financial statements for further discussion of our investments in unconsolidated entities, secured

debt, securitized debt obligations, and equity, respectively.

VI. 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 September 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.

Refer to Note 16 to our consolidated financial statements for further discussion of our income taxes.

85

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 us

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. We evaluated our critical

accounting policies and believe them to be appropriate. The following is a summary of our significant accounting policies

that we believe are the most affected by our judgments, estimates, and assumptions:

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 historical loan losses relevant to our portfolio, we have

augmented our historical loan performance with market loan loss data licensed from Trepp LLC. This database

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

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 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 September 30, 2026.

•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 to the book value of the respective loan. These valuations require

86

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, 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 nine months endedSeptember 30, 2026, our CECL reserves increased by $310.3 million, bringing our total

reserves to $606.4 million as of September 30, 2026. Refer to Notes 2, 3, and 6 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 loan using the effective interest

method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these

investments is deferred and recorded over the term of the loan as an adjustment to yield. Income accrual is generally

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

of income and principal becomes doubtful. Interest received is then recorded as income or as a reduction in the amortized

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

current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses

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

in general and administrative expenses as incurred.

The sources of revenue from our owned real estate assets, which are included in revenue from owned real estate on our

consolidated statements of operations, and the related revenue recognition policies are as follows:

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 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.

Revenue from our hospitality properties consists primarily of room revenue and food and beverage revenue. Room revenue

is recognized when the related room is occupied and other hospitality revenue is recognized when the service is rendered.

Tenant reimbursement income primarily consists of amounts due from tenants for costs related to common area

maintenance, real estate taxes, and other recoverable costs included in lease agreements.

We evaluate the collectability of receivables related to rental revenue on an individual lease basis and exercise judgment in

assessing collectability considering the length of time a receivable has been outstanding, tenant creditworthiness, payment

history, available information about the financial condition of the tenant, and current economic trends, among other factors.

Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue.

Owned Real Estate

We may assume legal title, physical possession, or control 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 owned real estate 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,” or ASC 805.

Upon acquisition of owned real estate assets, 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

87

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, 15 years for land improvements, and 10 years for building and 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 is 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 exceeds 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 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 costs to sell. If circumstances arise and we decide not to

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

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

sale, adjusted for depreciation expense that would have been recognized had the real estate been classified as held for

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

As of September 30, 2026, we had 15 owned real estate assets that were all classified as held for investment.

88

VII. Loan Portfolio Details

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

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Senior Loan Portfolio, Held-For-Investment(1)
		Property Type		Location		Origination Date(2)		Total Commitment(3)		Principal Balance		Amortized Cost Basis(4)		Cash Coupon(5)			All-in Yield(5)			Maximum Maturity(6)		Loan Per SQFT / Unit / Key / Acre / MW		Origination LTV(2)		Risk Rating
1		Hospitality		Diversified, AU		6/24/2022		$917		$917		$914		+4.75	%		+4.93	%		6/21/2030		$417 / sqft		59%		3
2		Mixed-Use		Austin		6/28/2022		675		576		574		+4.60	%		+5.08	%		7/9/2029		$479 / sqft		53%		3
3		Mixed-Use		Diversified, Spain		3/22/2018		449		449		449		+2.00	%		+2.00	%		3/15/2036		n / a		71%		3
4		Self-Storage		Diversified, CAN		2/20/2025		439		439		439		+3.50	%		+3.50	%		2/9/2030		$151 / sqft		58%		2
5		Industrial		Diversified, US		10/28/2025		419		419		416		+2.65	%		+3.01	%		11/9/2030		$100 / sqft		78%		3
6		Mixed-Use		New York		12/9/2021		385		385		384		+2.76	%		+3.00	%		12/9/2026		$132 / sqft		50%		3
7		Office		Chicago		12/11/2018		356		346		344		+1.75	%		+1.75	%		12/9/2026		$293 / sqft		n/m		5
8		Office		Seattle		1/26/2022		338		314		313		+4.10	%		+6.14	%		2/9/2027		$640 / sqft		56%		3
9		Office		Dublin, IE		8/14/2019		310		301		306		+3.20	%		+4.17	%		1/29/2027		$190 / sqft		74%		3
10		Industrial		Diversified, UK		5/15/2025		300		300		300		+2.70	%		+2.89	%		5/15/2028		$142 / sqft		69%		3
11		Office		Washington, DC		9/29/2021		293		293		293		+2.81	%		+3.05	%		10/9/2026		$382 / sqft		66%		2
12		Industrial		Diversified, UK		8/15/2025		322		270		268		+2.63	%		+3.10	%		10/1/2030		$207 / sqft		70%		3
13		Office		New York		4/11/2018		243		243		243		+2.25	%		+2.62	%		3/7/2028		$307 / sqft		52%		4
14		Industrial		Diversified, EUR		6/5/2025		242		242		240		+2.70	%		+2.97	%		7/19/2030		$66 / sqft		70%		3
15		Office		Berlin, DEU		6/27/2019		251		228		228		+1.00	%		+1.00	%		6/6/2030		$472 / sqft		n/m		5
16		Industrial		Diversified, US		2/13/2025		224		224		222		+3.10	%		+3.44	%		3/9/2030		$786,827 / acre		62%		3
17		Multifamily		Charlotte		9/29/2026		214		214		212		+2.75	%		+3.11	%		10/9/2031		$259,080 / unit		74%		3
18		Industrial		Diversified, UK		3/28/2025		203		203		202		+2.45	%		+2.74	%		3/28/2030		$127 / sqft		69%		3
19		Multifamily		New York		5/4/2026		212		202		201		+2.05	%		+2.32	%		5/9/2031		$423,214 / unit		57%		3
20		Industrial		Diversified, UK		4/11/2025		199		199		198		+2.40	%		+2.77	%		4/11/2030		$115 / sqft		69%		3
21		Office		New York		7/23/2021		244		188		188		+0.00	%	(7)	+0.00	%		8/9/2028		$598 / sqft		n/m		5
22		Retail		Diversified, UK		3/9/2022		179		179		179		+2.75	%		+2.88	%		8/15/2028		$152 / sqft		55%		2
23		Industrial		Diversified, UK		4/7/2025		172		172		173		+2.55	%		+2.71	%		4/7/2030		$343 / sqft		67%		3
24		Industrial		Diversified, EUR		12/17/2025		170		170		169		+3.25	%		+3.61	%		12/17/2030		$87 / sqft		66%		3
25		Hospitality		Los Angeles		6/22/2026		159		159		158		+3.00	%		+3.35	%		6/9/2031		$634,640 / key		58%		3
26		Industrial		Diversified, US		4/9/2026		174		155		154		+2.55	%		+2.97	%		4/9/2031		$1,034,346 / acre		52%		3
27		Self-Storage		London, UK		11/18/2021		150		150		150		+3.25	%		+3.51	%		11/18/2026		$190 / sqft		65%		2
28		Multifamily		San Jose		4/2/2025		182		150		149		+2.35	%		+2.76	%		4/9/2030		$319,691 / unit		67%		3
29		Multifamily		Melbourne, AU		1/10/2025		149		149		150		+3.85	%		+4.52	%		1/10/2028		$449,881 / unit		76%		4
30		Mixed-Use		New York		1/17/2020		183		141		141		+3.12	%		+3.44	%		2/9/2028		$111 / sqft		43%		3

89

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Senior Loan Portfolio, Held-For-Investment(1)
		Property Type		Location		Origination Date(2)		Total Commitment(3)		Principal Balance		Amortized Cost Basis(4)		Cash Coupon(5)			All-in Yield(5)			Maximum Maturity(6)		Loan Per SQFT / Unit / Key / Acre / MW		Origination LTV(2)		Risk Rating
31		Multifamily		Dublin, IE		12/15/2021		$142		$140		$140		+2.75	%		+3.05	%		12/9/2026		$351,349 / unit		79%		3
32		Multifamily		Manchester, UK		6/30/2025		138		138		138		+2.30	%		+2.65	%		6/30/2029		$296,043 / unit		63%		3
33		Office		London, UK		12/20/2019		135		135		135		4.00	%		4.00	%		3/31/2029		$687 / sqft		68%		4
34		Industrial		Diversified, US		2/2/2026		134		134		133		+2.32	%		+2.68	%		2/9/2031		$126 / sqft		70%		3
35		Retail		Diversified, Spain		4/8/2026		145		132		131		+2.55	%		+2.78	%		4/8/2031		$141 / sqft		71%		3
36		Office		Houston		7/15/2019		136		128		127		+3.01	%		+3.21	%		8/9/2028		$231 / sqft		58%		3
37		Office		Diversified, UK		11/23/2018		128		128		127		+3.50	%		+3.74	%		11/15/2029		$1,065 / sqft		50%		3
38		Industrial		Diversified, US		5/19/2026		140		126		125		+2.50	%		+2.88	%		6/9/2031		$1,061,500 / acre		54%		3
39		Multifamily		Miami		11/27/2024		125		125		125		+2.80	%		+3.17	%		12/9/2029		$260,417 / unit		71%		3
40		Multifamily		Dallas		6/4/2026		125		125		124		+2.35	%		+2.86	%		6/9/2031		$137,280 / unit		71%		3
41		Life Sciences/ Studio		Boston		5/13/2021		143		122		122		3.25	%		3.25	%		9/9/2030		$608 / sqft		80%		4
42		Multifamily		Melbourne, AU		6/13/2025		254		122		120		+4.75	%		+5.70	%		8/8/2029		$255,399 / unit		76%		3
43		Multifamily		Denver		11/26/2025		120		120		119		+2.35	%		+2.71	%		12/9/2030		$469,762 / unit		65%		2
44		Multifamily		Miami		6/1/2021		120		120		120		+2.65	%		+2.95	%		6/9/2029		$298,507 / unit		61%		3
45		Multifamily		Diversified, UK		3/29/2021		115		115		115		+4.52	%		+4.52	%		12/17/2026		$50,269 / unit		61%		4
46		Multifamily		Phoenix		12/29/2021		110		110		110		+2.85	%		+3.11	%		7/9/2027		$189,003 / unit		64%		3
47		Industrial		Diversified, US		5/22/2025		115		108		107		+3.00	%		+3.36	%		6/9/2030		$914,351 / acre		56%		3
48		Office		Chicago		9/30/2021		106		106		106		5.00	%		5.00	%		10/9/2029		$118 / sqft		43%		3
49		Multifamily		Tampa		2/15/2022		106		106		105		+2.85	%		+3.09	%		3/9/2027		$241,972 / unit		73%		3
50		Life Sciences/ Studio		Los Angeles		6/28/2019		106		106		106		+8.75	%		+8.75	%		2/1/2026		$531 / sqft		n/m		5
51		Multifamily		Washington, DC		11/17/2025		105		105		104		+2.50	%		+2.83	%		12/9/2030		$295,775 / unit		72%		3
52		Multifamily		Various, TX		10/15/2025		105		104		103		+2.60	%		+2.93	%		11/9/2030		$232,053 / unit		73%		3
53		Industrial		Diversified, FR		12/11/2025		103		103		103		+2.65	%		+2.99	%		12/11/2030		$68 / sqft		68%		3
54		Mixed-Use		New York		3/10/2020		103		103		103		+3.00	%		+3.01	%		7/11/2029		$630 / sqft		48%		2
55		Retail		New York		9/24/2025		121		102		102		+3.35	%		+3.76	%		10/9/2030		$137 / sqft		56%		3
56		Hospitality		Honolulu		1/30/2020		99		99		100		+3.50	%		+3.50	%		2/9/2027		$270,109 / key		n/m		5
57		Office		Washington, DC		12/21/2021		103		98		98		+2.70	%		+2.70	%		1/9/2027		$336 / sqft		n/m		5
58		Multifamily		San Antonio		3/20/2025		97		97		97		+2.80	%		+3.16	%		4/9/2030		$449,074 / unit		72%		3
59		Multifamily		Diversified, NL		3/27/2025		97		97		97		+2.70	%		+2.97	%		3/31/2028		$114,641 / unit		62%		2
60		Multifamily		Seattle		9/13/2024		94		94		94		+3.25	%		+3.49	%		11/9/2027		$509,389 / unit		68%		3

90

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Senior Loan Portfolio, Held-For-Investment(1)
		Property Type		Location		Origination Date(2)		Total Commitment(3)		Principal Balance		Amortized Cost Basis(4)		Cash Coupon(5)			All-in Yield(5)			Maximum Maturity(6)		Loan Per SQFT / Unit / Key / Acre / MW		Origination LTV(2)		Risk Rating
61		Multifamily		Orlando		10/27/2021		$93		$93		$93		+2.61	%		+2.85	%		11/9/2026		$155,612 / unit		75%		3
62		Multifamily		Philadelphia		10/28/2021		91		91		90		+2.80	%		+3.10	%		11/9/2029		$336,019 / unit		79%		3
63		Hospitality		Boston		3/3/2022		89		89		89		+2.75	%		+3.09	%		3/9/2027		$404,364 / key		64%		3
64		Multifamily		Charlotte		7/29/2021		82		82		82		+2.76	%		+3.23	%		8/9/2027		$223,735 / unit		78%		3
65		Hospitality		Honolulu		3/13/2018		79		79		79		+3.11	%		+3.66	%		4/9/2029		$122,594 / key		50%		3
66		Multifamily		Miami		4/10/2026		78		78		78		+2.05	%		+2.35	%		5/9/2031		$433,180 / unit		73%		3
67		Industrial		Diversified, BE		3/7/2025		82		77		77		+2.75	%		+3.29	%		3/7/2030		$40 / sqft		57%		2
68		Mixed-Use		New York		6/25/2025		221		74		73		+3.75	%		+4.30	%		12/25/2028		$124,949 / unit		44%		3
69		Multifamily		Tampa		12/21/2021		74		74		74		+2.70	%		+2.94	%		1/9/2027		$217,353 / unit		77%		3
70		Industrial		Diversified, UK		11/12/2025		76		74		73		+2.80	%		+3.15	%		11/7/2029		$128 / sqft		72%		2
71		Retail		Utrecht, NL		5/30/2025		71		71		71		+2.80	%		+3.16	%		5/30/2030		$167 / sqft		62%		2
72		Multifamily		Miami		7/31/2025		68		68		68		+2.60	%		+2.96	%		8/9/2030		$229,730 / unit		72%		3
73		Multifamily		Las Vegas		3/31/2022		67		67		67		+2.90	%		+3.26	%		4/9/2027		$146,519 / unit		71%		3
74		Industrial		Berlin, DEU		4/21/2026		65		65		64		+2.65	%		+2.99	%		4/9/2031		$135 / sqft		65%		3
75		Office		Nashville		6/30/2021		65		63		62		+2.95	%		+2.95	%		7/9/2026		$259 / sqft		n/m		5
76		Office		Los Angeles		4/6/2021		62		62		62		6.00	%		6.00	%		1/9/2030		$254 / sqft		65%		2
77		Office		New York		5/28/2025		68		61		61		+3.25	%		+3.66	%		6/9/2030		$399 / sqft		60%		1
78		Hospitality		Bermuda		4/26/2024		69		61		61		+4.95	%		+5.62	%		5/9/2029		$693,780 / key		39%		2
79		Hospitality		Napa Valley		4/29/2022		60		60		60		+2.65	%		+2.93	%		4/9/2028		$626,382 / key		66%		2
80		Multifamily		Seattle		10/28/2021		59		59		58		+2.95	%		+3.18	%		11/9/2027		$177,550 / unit		70%		3
81		Industrial		Minneapolis		12/12/2024		61		59		58		+2.85	%		+3.23	%		1/9/2030		$83 / sqft		59%		3
82		Multifamily		Phoenix		12/17/2021		58		58		58		+2.70	%		+2.97	%		1/9/2028		$209,601 / unit		69%		3
83		Office		Miami		6/14/2021		58		58		58		+2.30	%		+2.30	%		3/9/2027		$122 / sqft		65%		2
84		Multifamily		Salt Lake City		7/30/2021		56		56		56		+2.95	%		+3.22	%		8/9/2027		$204,253 / unit		73%		3
85		Multifamily		Atlanta		10/17/2025		57		56		56		+2.30	%		+2.57	%		11/9/2030		$212,121 / unit		64%		3
86		Industrial		Diversified, US		12/14/2018		54		54		54		+3.51	%		+3.91	%		1/9/2027		$40 / sqft		57%		3
87		Self-Storage		Diversified, US		2/18/2025		53		53		52		+3.10	%		+3.47	%		3/9/2030		$90 / sqft		67%		3
88		Multifamily		Denver		3/19/2025		51		51		51		+2.60	%		+2.92	%		5/9/2030		$221,739 / unit		64%		4
89		Hospitality		Waimea		2/27/2025		50		50		50		+2.80	%		+2.92	%		2/9/2030		$823,353 / key		52%		2
90		Office		Los Angeles		8/22/2019		47		47		47		+2.66	%		+2.66	%		3/9/2027		$277 / sqft		n/m		5

91

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Senior Loan Portfolio, Held-For-Investment(1)
		Property Type		Location		Origination Date(2)		Total Commitment(3)		Principal Balance		Amortized Cost Basis(4)		Cash Coupon(5)			All-in Yield(5)			Maximum Maturity(6)		Loan Per SQFT / Unit / Key / Acre / MW		Origination LTV(2)		Risk Rating
91		Multifamily		Dallas		12/23/2025		45		45		44		5.74	%		6.45	%		1/1/2031		$148,333 / unit		77%		3
92		Multifamily		Columbus		12/8/2021		44		44		44		+2.75	%		+2.99	%		12/9/2026		$144,479 / unit		69%		2
93		Multifamily		Dublin, IE		12/8/2025		40		40		40		+2.65	%		+2.83	%		12/2/2030		$344,826 / unit		73%		3
94		Multifamily		Las Vegas		3/31/2022		38		38		38		+2.90	%		+3.26	%		4/9/2027		$149,984 / unit		72%		3
95		Multifamily		Savannah		10/10/2025		40		38		37		+2.85	%		+2.94	%		11/9/2030		$241,935 / unit		69%		3
96		Office		Canberra, AU		5/8/2025		37		37		37		+3.80	%		+3.98	%		5/8/2028		$411 / sqft		75%		3
97		Office		Atlanta		5/27/2025		51		36		36		+3.65	%		+4.03	%		6/9/2030		$124 / sqft		39%		2
98		Retail		Hamburg, DEU		3/19/2026		41		33		32		+2.90	%		+3.20	%		3/4/2030		$106 / sqft		65%		3
99		Mixed-Use		New York		2/21/2025		24		24		24		+3.25	%		+3.52	%		3/9/2030		$775 / sqft		59%		3
100		Multifamily		Las Vegas		8/4/2021		22		22		22		+2.70	%		+2.94	%		8/9/2029		$180,000 / unit		73%		3
101		Multifamily		Atlanta		5/9/2025		21		21		21		+2.85	%		+2.94	%		5/9/2030		$205,882 / unit		65%		4
Subtotal: senior loan portfolio, held-for-investment								$14,984		$14,186		$14,142		+2.99	%		+3.33	%		3.0 yrs				64%		3.1

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Subordinate Loan Portfolio, Held-For-Investment(8)
		Property Type		Location		Origination Date(2)		Total Commitment(3)		Principal Balance		Amortized Cost Basis(4)		Cash Coupon(5)			All-in Yield(5)			Maximum Maturity(6)		Loan Per SQFT / Unit / Key / Acre / MW		Origination LTV(2)		Risk Rating
102		Office		Los Angeles		11/22/2019		133		126		126		+2.50	%		+2.50	%		12/9/2027		$827 / sqft		n/m		5
103		Life Sciences/ Studio		San Francisco		11/10/2021		72		57		57		+8.71	%		+8.95	%		12/9/2026		$448 / sqft		66%		4
104		Industrial		Diversified, US		3/10/2025		56		56		56		+5.00	%		+5.12	%		3/9/2030		$111 / sqft		70%		3
105		Multifamily		Los Angeles		12/30/2021		42		39		39		+8.80	%		+9.00	%		1/9/2030		$575,531 / unit		50%		3
106		Multifamily		London, UK		7/18/2025		29		29		29		+8.98	%		+9.38	%		7/5/2030		$741,890 / unit		69%		3
107		Other		Manassas, VA		1/9/2026		26		26		25		12.98	%		14.23	%		1/9/2031		$9,840,909 / MW		64%		3
108		Industrial		New York		1/8/2026		23		23		20		5.79	%		9.67	%		1/9/2031		$12 / sqft		63%		3
109		Hospitality		Miami		5/2/2025		23		21		21		+9.50	%		+10.15	%		5/9/2030		$946,478 / key		53%		3
110		Mixed-Use		New York		5/20/2025		28		17		17		10.00	%		10.06	%		10/1/2034		$1,038 / sqft		59%		3
111		Office		London, UK		12/20/2019		14		14		14		n/m	(9)		n/m			3/31/2029		$832 / sqft		n/m		5
112		Office		Chicago		9/30/2021		44		11		11		n/m	(9)		n/m			10/9/2029		$162 / sqft		n/m		5
113		Other		Honolulu		3/2/2026		41		7		6		+9.72	%		+11.17	%		3/9/2032		$186,759 / unit		69%		3
114		Life Sciences/ Studio		Boston		5/13/2021		15		1		1		n/m	(9)		n/m			9/9/2030		$646 / sqft		n/m		5
Subtotal: subordinate loan portfolio, held-for-investment								$544		$426		$421		+7.43	%		+8.07	%		3.3 yrs				63%		3.9
Subtotal: loans receivable, held-for-investment portfolio								$15,528		$14,613		$14,564
Total loans receivable CECL reserve												(597)
Total loans receivable, held-for-investment portfolio								$15,528		$14,613		$13,966		+3.08	%		+3.43	%		3.0 yrs				64%		3.1

92

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Loans Held-For-Sale

Property Type

Location

Origination Date(2)

Total Commitment(3)

Principal Balance

Net Book Value

Cash Coupon(5)(10)

All-in Yield(5)(10)

Maximum Maturity(6)(10)

Loan Per SQFT / Unit / Key / Acre / MW

Origination LTV(2)

Risk Rating

115 - 124

Various

Various, US

Various

$797

$761

$616

+2.83

%

+3.11

%

1.8 yrs

n/m

n/m

n/a

Subtotal: loans receivable, held-for-sale portfolio

$797

$761

$616

Total: loans receivable portfolio

$16,324

$15,374

$14,582

+3.07

%

+3.41

%

2.9 yrs

64%

3.1

(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.

(3)Total commitment reflects outstanding principal balance as well as any related unfunded loan commitment.

(4)Amortized cost basis 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 September 30, 2026, 96% of our loans by principal balance earned a floating rate of interest, primarily

indexed to SOFR. The remaining 4% of our loans by principal balance earned a fixed rate of interest. 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)This loan has an interest rate of SOFR plus 0.00% with a SOFR floor of 3.50%, for an all-in rate of 3.91% as of September 30, 2026.

(8)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 a

subordinate loan.

(9)These subordinate loans are the result of a loan modification which resulted in a restructured senior loan and a subordinate loan. Each of the subordinate loans is

accounted for under the cost-recovery method.

(10)The cash coupon, all-in yield, and maximum maturity of held-for-sale loans represent the weighted-average of all loans classified as held-for-sale as of September 30,

2026.

93

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

Loan Portfolio Net Interest Income

Generally, our business model is such that rising interest rates will increase our net income, while declining interest rates

will decrease net income. However, in periods in which our floating rate liabilities exceed our floating rate assets, including

as a result of floating rate corporate debt or a greater concentration in owned real estate, loans on nonaccrual status, or

similar assets that do not generate floating rate interest income, rising interest rates may decrease our net income. As of

September 30, 2026, 96% 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 amount of net equity that is

positively correlated to changing interest rates, subject to the impact of interest rate floors on certain of our floating rate

loans.

The following table projects the impact on our net interest income, presented net of implied changes in incentive fees, for

the twelve-month period following September 30, 2026, of an increase or decrease in the various floating-rate indices

referenced by our portfolio, assuming no change in credit spreads, portfolio composition, or asset performance, relative to

the average indices during the three months endedSeptember 30, 2026 ($ in thousands):

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		Assets (Liabilities) Sensitive to Changes in Interest Rates(1)		Interest Rate Sensitivity as of September 30, 2026(2)(3)
				Increase in Rates				Decrease in Rates
				50 Basis Points		100 Basis Points		50 Basis Points		100 Basis Points
Floating rate assets(4)(5)(6)(7)		$13,426,346		$53,705		$107,411		$(53,326)		$(99,342)
Floating rate liabilities(5)(6)(7)(8)		(13,610,583)		(54,442)		(108,885)		54,442		108,885
Net exposure		$(184,237)		$(737)		$(1,474)		$1,116		$9,543

(1)Reflects the USD equivalent value of floating rate assets and liabilities denominated in foreign currencies.

(2)Increases (decreases) in interest income and expense are presented net of theoretical impact of incentive fees. Refer

to Note 15 to our consolidated financial statements for additional details of our incentive fee calculation.

(3)Excludes income from loans accounted for under the cost-recovery method.

(4)Excludes $1.3 billion of principal balance on floating rate impaired loans.

(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)Excludes amounts related to our investments in unconsolidated entities.

(7)Excludes amounts related to our investments in debt securities.

(8)Includes amounts outstanding under our secured debt, securitizations, asset-specific debt, Term Loans, 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 that effectively convert our fixed rate exposure to floating rate exposure for the

Senior Secured Notes due 2029 and Senior Secured Notes due 2031. Excludes amounts related to the indebtedness

of our unconsolidated entities.

Loan Portfolio Value

As of September 30, 2026, 96% of our loans by principal balance earned a floating rate of interest, so the value of such

investments is generally not impacted by changes in market interest rates. Additionally, we generally intend to hold all of

our loans to maturity and so do not generally expect to realize gains or losses resulting from any mark-to-market valuation

adjustments on our loan portfolio.

Risk of Non-Performance

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

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interest rate cap contract with an unaffiliated third party, provide an interest reserve deposit, and/or provide interest

guarantees or other structural protections.

Credit Risks

Our loans are subject to credit risk, including the risk of default. The performance and value of our loans depend upon the

borrowers’ ability to operate the properties that serve as our collateral so that they produce cash flows adequate to pay

interest and principal due to us. To monitor this risk, our asset management team reviews our loan portfolios and, in certain

instances, is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as

necessary.

In addition, we are exposed to the risks generally associated with the commercial real estate market, including changes in

occupancy rates, capitalization rates, absorption rates, and other macroeconomic factors beyond our control. We seek to

manage these risks through our underwriting and asset management processes.

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 loans. As of September 30, 2026, we had an aggregate $444.5 million asset-specific CECL reserve related to 12 of

our loans receivable, with an aggregate amortized cost basis of $1.3 billion, net of cost-recovery proceeds. This CECL

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

September 30, 2026.

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 has built the world's

preeminent global real estate business, with 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 asset manage

our portfolio and work with our borrowers throughout periods of economic stress and uncertainty.

Capital Market Risks

We are exposed to risks related to the equity capital markets, and our related ability to raise capital through the issuance of

our class A common stock or other equity instruments. We are also exposed to risks related to the debt capital markets, and

our related ability to finance our business through borrowings under credit facilities or other debt instruments. As a REIT,

we are required to distribute a significant portion of our taxable income annually, which constrains our ability to

accumulate operating cash flow and therefore requires us to utilize debt or equity capital to finance our business. We seek

to mitigate these risks by monitoring the debt and equity capital markets to inform our decisions on the amount, timing, and

terms of capital we raise.

Our master repurchase agreements and secured credit facilities are generally structured without capital markets-based

mark-to-market provisions, which means the margin call provisions do not permit valuation adjustments based on capital

markets events. The majority of our master repurchase agreements and secured credit facilities are non-mark-to-market,

which means the margin call provisions only permit valuation adjustments if the loan or collateral pledged or sold by us

becomes defaulted, and the margin call provisions for the remainder are limited to collateral-specific credit marks generally

determined on a commercially reasonable basis. There can be no assurance we will not experience margin calls under any

asset-level financing that contains margin call provisions.

Counterparty Risk

The nature of our business requires us to hold our cash and cash equivalents and obtain financing from various financial

institutions. This exposes us to the risk that these financial institutions may not fulfill their obligations to us under these

various contractual arrangements. We mitigate this exposure by depositing our cash and cash equivalents and entering into

financing agreements with high credit-quality institutions.

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The nature of our loans also exposes us to the risk that our counterparties do not make required interest and principal

payments on scheduled due dates. We seek to manage this risk through a comprehensive credit analysis prior to making a

loan and active monitoring of the asset portfolios that serve as our collateral, as further discussed above.

Currency Risk

Our loans that are denominated in a foreign currency are also subject to risks related to fluctuations in currency rates. We

generally mitigate this exposure by matching the currency of our assets to the currency of the financing for our assets. As a

result, we substantially reduce our exposure to changes in portfolio value related to changes in foreign currency rates. In

addition, substantially all of our net asset exposure to foreign currencies has been hedged with foreign currency forward

contracts as of September 30, 2026.

The following table outlines our assets and liabilities that are denominated in a foreign currency (amounts in thousands):

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	September 30, 2026
	GBP		EUR		All Other(1)
Foreign currency assets	£1,732,395		€1,843,618		$1,710,216
Foreign currency liabilities	(1,295,100)		(1,233,593)		(1,327,036)
Foreign currency contracts – notional	(433,513)		(649,527)		(375,839)
Net exposure to exchange rate fluctuations	£3,782		€(39,502)		$7,341
Net exposure to exchange rate fluctuations in USD(2)	$5,016		$(44,755)		$7,341

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

(2)Represents the U.S. Dollar equivalent as of September 30, 2026.

ITEM 4.CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as that term is defined in Rules 13a–15(e) and 15d–15(e) under the

Exchange Act) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act

is recorded, processed, and summarized and reported within the time periods specified in the SEC’s rules and forms, and

that such information is accumulated and communicated to our management, including our Chief Executive Officer and

Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and

procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired

control objectives. An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures

as of the end of the period covered by this Quarterly Report on Form 10-Q was made under the supervision and with the

participation of our management, including our Chief Executive Officer and Chief Financial Officer. Based upon this

evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and

procedures (a) are effective to ensure that information required to be disclosed by us in reports filed or submitted under the

Exchange Act is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms

and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by

us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including

our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required

disclosure.

Changes in Internal Control Over Financial Reporting

There have been no changes in our “internal control over financial reporting” (as defined in Rule 13a–15(f) of the

Exchange Act) that occurred during our most recent quarter that have materially affected, or are reasonably likely to

materially affect, our internal control over financial reporting.

96

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of

September 30, 2026, we were not involved in any material legal proceedings.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors previously disclosed under “Part I, Item 1A. Risk Factors” of our

Annual Report on Form 10-K for the year ended December 31, 2025.

97

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth information regarding repurchases of shares of our class A common stock during thethree

months endedSeptember 30, 2026:

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Period		Total Number of Shares Purchased		Average Price Paid per Share(1)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program ($ in thousands)(2)
July 1 - July 31, 2026		—		$—		—		$145,792
August 1 - August 31, 2026		1,748,597		14.20		1,748,597		120,958
September 1 - September 30, 2026		804,765		13.85		804,765		109,816
Total		2,553,362		$14.09		2,553,362		$109,816

(1)The average price paid per share is calculated on a trade date basis and excludes associated commissions.

(2)In October 2025, our board of directors authorized the repurchase of up to$150.0 million of shares of our class A

common stock under our repurchase program. Repurchases may be made from time to time in open market

transactions, in privately negotiated transactions, in agreements and arrangements structured in a manner

consistent with Rules 10b-18 and 10b5-1 under the Exchange Act or otherwise. The timing and the actual amounts

repurchased will depend on a variety of factors, including legal requirements, price and economic and market

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

specified expiration date. See Note 14 to our consolidated financial statements and “Part I. Item 2. Management’s

Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources —

Uses of Liquidity” for further information regarding this repurchase program.

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ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

99

ITEM 6.	EXHIBITS

31.1		*	Certification of Chief Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		*	Certification of Chief Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 +			Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2 +			Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS			XBRL Instance Document – the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document
101.SCH			Inline XBRL Taxonomy Extension Schema Document With Embedded Linkbase Documents
101.CAL			Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB			Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE			Inline XBRL Taxonomy Extension Presentation Linkbase Document
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

___________

*Filed herewith.

+This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the

liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act or the

Exchange Act.

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other

disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely

on them for that purpose. In particular, any representations and warranties made by us in these agreements or other

documents were made solely within the specific context of the relevant agreement or document and may not describe the

actual state of affairs as of the date they were made or at any other time.

100

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be

signed on its behalf by the undersigned thereunto duly authorized.

		BLACKSTONE MORTGAGE TRUST, INC.
October 29, 2026		/s/ Timothy S. Johnson
Date		Timothy S. Johnson
		Chief Executive Officer
		(Principal Executive Officer)
October 29, 2026		/s/ Marcin Urbaszek
Date		Marcin Urbaszek
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)