Multifamily Investment Boosts Blackstone Mortgage Results

Multifamily investment focus drives Blackstone Mortgage’s strong performance as it reduces office exposure and boosts portfolio performance.

February 12, 2026

Valerija I.

Blackstone Mortgage improved loan portfolio to 99% performing as of year-end.
Shifted over 80% of new capital to multifamily, industrial, bank loans, and net lease properties.
Office real estate exposure reduced by 50% since 2021, now just 20% of net loan holdings
Real estate owned assets rose, but several are slated for sale and capital redeployment.

Key Takeaways

Loan Portfolio Strengthens

According to CoStar, Blackstone Mortgage Trust (BXMT) reported strong year-end results, marking a significant turnaround from 2024. The real estate investment trust resolved $2.3B in impaired loans since Q3 2024, bringing its portfolio to 99% performing as of December 31. Key to this improvement was a strategic move away from office real estate, reducing office loan exposure to 20% of the net portfolio.

Multifamily Investment Drives Diversification

BXMT concentrated over 80% of its 2025 capital deployment into multifamily and industrial investments, as well as discounted bank loan portfolios and net lease acquisitions. The REIT originated $5.7B in loans last year, with fourth quarter originations ($1.4B) fully allocated to multifamily and industrial sectors. Its joint ventures acquired over $700M in bank loans and nearly $422M in triple net lease properties, now comprising 5% of BXMT’s $20B portfolio.

Managing Real Estate Owned Assets

Real estate owned (REO) assets increased to $1.3B after new office foreclosures in Denver and New York. BXMT expects to sell some of these properties, including a multifamily asset in Texas currently under contract. The firm’s defensive repositioning follows a period of heightened stress that included a dividend reduction tied to rising loan defaults and office-related pressures, highlighting how materially its portfolio strategy has shifted. Management anticipates ongoing REO sales, using proceeds to support earnings and redeploy capital toward core sectors like multifamily investment and industrial real estate.

Portfolio Composition and Market Focus

BXMT’s portfolio of 131 loans features 26% exposure to multifamily, 24% to industrial, and 11% to hospitality assets. Geographically, the US Sun Belt leads with 23% of loan exposure, followed by the United Kingdom at 21% and other European markets at 18%. The company’s focus on multifamily investment and continued reduction in office exposure position it for further stability and growth.