Blackstone Mortgage Trust stock rating reiterated by Citizens JMP

Published 17/06/2025, 09:54
Blackstone Mortgage Trust stock rating reiterated by Citizens JMP

Citizens JMP reiterated its Market Perform rating on Blackstone Mortgage Trust (NYSE:BXMT), a $3.25 billion market cap mortgage REIT, following the release of the company’s first quarter 2025 earnings and subsequent regulatory filings. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The mortgage real estate investment trust reported $1.6 billion in new originations during the first quarter, marking its most active quarter for new loans since the second quarter of 2022. This lending momentum has continued into the second quarter, with $2 billion in loans in the process of closing as of April 30. The company maintains a robust 9.78% dividend yield and has consistently paid dividends for 14 consecutive years, as highlighted by InvestingPro.

Citizens JMP noted that Blackstone Mortgage Trust shares currently trade at 0.90 times book value, significantly above the 0.72 times median price-to-book value ratio for its 23-company Commercial MREIT peer group. The research firm views the shares as "reasonably fairly valued" at current levels.

The firm pointed out that BXMT shares have historically traded at or above book value. The Federal Reserve’s monetary tightening policies have created "significant property valuation uncertainty" for the commercial real estate industry in the near term.

The mortgage REIT has shifted back to an offensive strategy in its lending approach, according to Citizens JMP’s analysis of the company’s Form 10-Q filing and updated financial models.

In other recent news, Blackstone Mortgage Trust reported first-quarter 2025 earnings that exceeded expectations, with earnings per share reaching $0.42, surpassing the forecasted $0.32. The company’s revenue also outperformed projections, coming in at $126.95 million against an expected $105.36 million. Additionally, Blackstone Mortgage Trust declared a quarterly dividend of $0.47 per share for the second quarter of 2025, payable on July 15, 2025. The company has been focusing on strategic shifts, reducing its U.S. office exposure to 21% of the portfolio and expanding into sectors such as multifamily, industrial, and self-storage, which now constitute nearly 50% of its holdings.

Despite these positive financial results, the stock experienced a decline, reflecting investor concerns about broader market trends. Blackstone Mortgage Trust has also been active in managing its portfolio, with $1.8 billion in repayments and $1.6 billion in new investments, indicating a proactive approach to capital allocation. The company plans to continue growing its portfolio towards $20 billion, focusing on resilient sectors and issuing additional CLOs. Analyst discussions have highlighted the company’s strong relationships with credit facility providers, which are seen as a significant advantage in the current market environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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