Blackstone Mortgage Trust: I Am Giving Up (Downgrade)
Portfolio Pulse from
Blackstone Mortgage Trust has been downgraded to 'Hold' due to concerns over dividend sustainability and credit issues. The trust's pay-out ratio exceeded 100%, and it faces significant credit problems with its office loan portfolio. Despite a 24% dividend cut, BXMT failed to cover its dividend with distributable profits in 4Q24, increasing the risk of another cut.
February 18, 2025 | 6:45 pm
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Blackstone Mortgage Trust has been downgraded to 'Hold' due to concerns over dividend sustainability and credit issues. The trust's pay-out ratio exceeded 100%, and it faces significant credit problems with its office loan portfolio. Despite a 24% dividend cut, BXMT failed to cover its dividend with distributable profits in 4Q24, increasing the risk of another cut.
The downgrade to 'Hold' reflects significant concerns about BXMT's ability to sustain its dividend, given the pay-out ratio above 100% and credit issues in its office loan portfolio. The failure to cover dividends with distributable profits in 4Q24 suggests financial strain, increasing the likelihood of further dividend cuts, which is negative for the stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100