Top 12 Beaten-Down REITs Ready for a Rotation Rally

8. Blackstone Mortgage Trust, Inc. (NYSE:BXMT)

Number of Hedge Fund Holders: 15

Year-To-Date Performance: -11.81%

Stock Upside: 21.52%

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.

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.