Blackstone Mortgage Trust, Inc. (BXMT) Income Statement

The dramatic revenue drop in 2026Q2, following a 4.0% increase in 2026Q1, suggests a significant reduction in the loan portfolio, likely due to repayments, paydowns, or asset sales. This contraction is consistent with the broader trend of declining revenue since 2024Q1, when revenue was $482.1M. The pace of decline appears to be accelerating, which may indicate a strategic deleveraging or a lack of new originations in a challenging credit environment.

The extreme volatility in NOI margin, from 86.0% in 2024Q4 to 20.4% in 2026Q1 and then to 100.0% in 2026Q2, is atypical for a mortgage REIT and suggests that the reported NOI may be distorted by one-time items or changes in the classification of expenses. The 100% margin in 2026Q2 implies that operating expenses were negligible, which could indicate a near-total cessation of lending activity or a shift in how costs are recognized. Investors should monitor whether this margin is sustainable or a result of non-recurring adjustments.

After two consecutive quarters of negative FFO in 2024, BXMT reported positive FFO in 2025, with a notable jump in 2025Q3 to $0.46 per share. However, FFO per share fell to $0.14 in 2025Q2 and then to $0.35 in 2025Q4, indicating volatility. The positive FFO may be driven by lower credit costs or gains, but the underlying revenue decline suggests that core earnings power is weakening. The dividend yield, currently around 2.5%, appears low for a mortgage REIT, which may indicate that the market is pricing in further dividend cuts or earnings deterioration.

Unlike equity REITs, BXMT's business model involves holding loans, so depreciation is not a major factor. Instead, the large net income losses, such as -$81.2M in 2026Q2 and -$123.8M in 2024Q1, are likely driven by credit loss provisions or impairments on the loan portfolio. These non-cash charges can distort GAAP earnings, making FFO a more relevant metric. However, the absence of FFO data for 2026Q1 and Q2 limits the ability to assess the quality of earnings in the most recent periods.

The lack of same-store data makes it difficult to isolate organic performance from portfolio changes. However, the consistent decline in revenue across most quarters indicates that the company is not growing its earning assets organically. The 59.8% year-over-year drop in 2026Q2 is particularly stark and may reflect a combination of loan repayments, defaults, and a deliberate reduction in leverage. Investors should seek clarity on the composition of the portfolio and the drivers of the revenue decline.