Core distributable earnings of $0.48/share remain stable and cover the dividend, but rising CECL reserves ($410M) and declining book value ($19.31) signal ongoing credit stress, particularly in office. Watch for further watchlist migration and the pace of portfolio rotation into residential/industrial to offset legacy office exposure.
Price Chart
Executive Summary
BXMT reported Q2 2026 GAAP net loss of $0.48 per share, but Distributable EPS prior to realized gains and losses was $0.48, covering the $0.47 dividend. Credit quality deteriorated with CECL reserves rising $106M to $410M and three new impaired loans, though portfolio turnover remains active with $1.4B in new investments and $1.2B in repayments. The core earnings power is stable, but rising credit provisions and a declining book value ($19.31 from $20.20) signal ongoing asset quality headwinds.
Key Financial Metrics
Key Facts
- GAAP net loss of $81.2M or $(0.48) per share vs. $0.04 EPS in Q2 2025
- Distributable EPS prior to realized gains and losses was $0.48, covering the $0.47 dividend
- CECL reserves increased by $106M QoQ to $410M, including $219M of asset-specific reserves
- Book value per share fell to $19.31 from $20.20 in Q1 2026
- Loan portfolio 97% performing; three new impaired loans added (two office)
- Q2 investments of $1.4B, with $1.2B in loan repayments (99% pre-2023 originations)
- Debt-to-equity ratio of 3.9x; issued $0.5B Senior Secured Notes due 2031
- Liquidity of $1.2B; 88% non-MTM debt with no capital markets MTM provisions
Financial Impact
CECL reserves increased $106M QoQ to $410M; book value declined $0.89 per share QoQ
Risk Factors
- Further credit deterioration in office loans driving additional CECL reserve builds
- Book value erosion continuing if realized losses exceed current reserve levels
- Dividend sustainability if distributable earnings decline from current $0.48 level
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001061630-26-000071 |
| Exhibit: exhibit9922q26.htm | 0001061630-26-000071 |
| Document: a8-kexhibit9912q2026.htm | 0001061630-26-000071 |
| Document: 0001061630-26-000071-index-headers.html | 0001061630-26-000071 |
| Document: 0001061630-26-000071-index.html | 0001061630-26-000071 |
| Document: 0001061630-26-000071.txt | 0001061630-26-000071 |
| 8-K Data (Synthetic) | 0001061630-26-000071 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 15, 2026 10w ago | Institutional Cluster | $14.24 $13.30 | ▼ −6.60% | ▼ −4.62% | $10.60 (−25.56%) |
Jul 30, 2026 12w ago | 8-K | $14.97 $13.81 | ▼ −7.75% | ▼ −11.71% | $10.60 (−29.19%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers