Blackstone Mortgage Trust slumps after dividend cut
24/07/2024 14:56
** Shares of Blackstone Mortgage Trust BXMT.N drop 10% to
$17.60
** Commercial mortgage REIT cuts its dividend to $0.47 per
share for Q3 from $0.62 paid in Q2
** Non-performing loans were concentrated in U.S. office,
which recorded $140 mln net increase in reserve for current
expected credit losses
** Q2 earnings were weighed down by interest expense from
non-performing loans; loan resolutions will unlock earnings
potential over time, company says
** Commercial office space is being closely watched as $929
bln of the $4.7 trillion of outstanding commercial mortgages
held by lenders and investors will come due in 2024, according
to the Mortgage Bankers Association
** This looming maturity comes against a backdrop of
declining property values and lower rent rolls
** While the dividend cut is discouraging, it is a crucial
step for BXMT to shore up its capital base as it continues to
deal with challenged loans in H2 and, likely, into 2025 - BTIG
** In February, KKR Real Estate Finance Trust KREF.N
slashed its dividend amid souring loans
(Reporting by Medha Singh)
((medha.singh@thomsonreuters.com))