NEW YORK - Blackstone Mortgage Trust, Inc. (NYSE: NYSE:BXMT), a real estate finance company, has initiated a private offering aimed at raising $450 million through the issuance of senior secured notes due 2029. The company announced today that the proceeds from the offering will be allocated for general corporate purposes, which includes the repayment of existing secured debts.
This offering is being conducted privately, relying on an exemption from the registration requirements set by the Securities Act of 1933. It targets qualified institutional buyers in the United States under Rule 144A and certain international investors in accordance with Regulation S. The securities involved have not been registered under the Securities Act or any state securities laws and will not be offered or sold within the United States absent registration or an applicable exemption from such registration requirements.
Blackstone (NYSE:BX) Mortgage Trust focuses on originating senior loans secured by commercial real estate across North America, Europe, and Australia. The company's primary investment goal is to safeguard shareholder capital while aiming for attractive risk-adjusted returns, primarily through dividends from its loan portfolio. The portfolio mainly consists of loans backed by high-quality institutional properties, managed by experienced real estate investors.
The announcement of the notes offering comes with the disclaimer that it does not constitute an offer to sell or a solicitation of an offer to buy the securities. Moreover, the sale of these securities will not be permissible in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Blackstone Mortgage Trust is externally managed by BXMT Advisors L.L.C., a subsidiary of Blackstone, which is recognized as the world's largest alternative asset manager with over $1.1 trillion in assets under management.
The information regarding this offering is based on a press release statement by Blackstone Mortgage Trust. The company cautions that this press release contains forward-looking statements that involve risks and uncertainties, and actual events or results may differ materially from those expressed or implied by such statements. The company has directed interested parties to its SEC filings for a more comprehensive understanding of the risks involved.
In other recent news, Blackstone Mortgage Trust has reported mixed results in its Q3 2024 earnings call, with a GAAP net loss of $0.32 per share but distributable earnings (DE) of $0.39 per share and $0.49 per share before charge-offs. Amid a changing interest rate environment, the company managed repayments totaling $1.8 billion and new originations close to $700 million. Blackstone Mortgage Trust also anticipates an increase in quarterly DE, reflecting confidence in its long-term strategy.
Despite an expected short-term earnings pressure due to loan resolutions and impairments, the company maintains an optimistic outlook. It expects to recover over half of the $2.3 billion in impaired loans and is considering share buybacks alongside new loan originations. Blackstone Mortgage Trust also projects a rise in real estate valuations, which have been increasing for three consecutive quarters.
These recent developments suggest that the company is strategically navigating the complexities of the current economic landscape. While managing the risks associated with a U.S. rate cut cycle and loan resolutions, Blackstone Mortgage Trust continues to explore investment opportunities in various sectors, including U.S. multi-family sector, industrial properties, and data centers, particularly in Europe.
InvestingPro Insights
Blackstone Mortgage Trust's recent move to raise $450 million through senior secured notes comes at a time when the company faces some financial challenges, as revealed by InvestingPro data. The company's revenue for the last twelve months as of Q3 2024 stands at -$102.52 million, with a significant revenue decline of 126.65% over the same period. This context sheds light on why BXMT might be seeking additional funding through this private offering.
Despite these challenges, BXMT maintains a strong dividend policy. According to InvestingPro Tips, the company pays a significant dividend to shareholders and has maintained dividend payments for 13 consecutive years. As of the latest data, BXMT's dividend yield stands at an impressive 10.08%, which could be attractive to income-focused investors.
However, investors should note that 6 analysts have revised their earnings downwards for the upcoming period, as per InvestingPro Tips. This, coupled with the expectation of a sales decline in the current year, suggests that BXMT may face continued headwinds in the near term.
For a more comprehensive analysis, InvestingPro offers additional tips and insights on Blackstone Mortgage Trust. The platform currently lists 9 additional tips that could provide valuable context for investors considering BXMT's recent offering and overall financial position.
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