Blackstone Mortgage Trust (BXMT) Holds Its Dividend Steady as a Hotel-Loan Charge Hits Earnings

Blackstone Mortgage Trust, Inc. (NYSE:BXMT) is one of the top beaten-down REITs ready for a rotation rally. On June 15, Blackstone Mortgage Trust, Inc. (NYSE:BXMT) declared a dividend of $0.47 per share of Class A common stock for the second quarter of 2026. The funds will be paid on July 15 to stockholders of record as of June 30.

Blackstone Mortgage Trust (BXMT) Holds Its Dividend Steady Even as a One-Time Charge Hits Earnings

The company has left this rate unchanged since the third quarter of 2024 when it cut it from $0.62. Management chose to go ahead with the $0.47 per share rate even though the distributable earnings in Q1 FY2026 came in at $0.21 per share.

However, management’s preferred coverage metric, which is distributable earnings prior to realized gains and losses, came in at $0.49 per share. This exceeds the $0.47 dividend and marks the third consecutive quarter that this adjusted measure has covered the payout, according to CEO Tim Johnson on the Q1 FY2026 earnings call.

CFO Marcin Urbaszek explained that the gap between the two earnings figures stemmed from $46 million in realized losses tied to resolving an impaired San Francisco hotel loan. The company foreclosed on the hotel and now holds as owned real estate at a 70% discount to the prior owner’s cost basis, a one-time charge that Urbaszek said masked otherwise stable underlying earnings power.

Blackstone Mortgage Trust, Inc. (NYSE:BXMT) is a real estate finance company structured as a REIT. It originates senior loans collateralized by commercial properties in North America, Europe, and Australia. The company participates in the real estate sector through its REIT structure and its relationship with Blackstone, which provides access to deal flow and investment opportunities across global commercial real estate markets.

While we acknowledge the risk and potential of BXMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BXMT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: Top 10 Bank Stocks to Buy Now According to Analysts and Top 10 Stocks to Buy According to Whale Rock Capital Management.

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1