Blackstone Mortgage Trust, Inc.

Good day and welcome to Blackstone Mortgage Trust third quarter 2025 investor call. Today's call is being recorded. At this time, all participants are in listen-only mode. If you require operator assistance at any time, please press star zero. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. At this time, I'd like to turn the conference over to Tim Hayes, Vice President, Shareholder Relations. Please go ahead.

Good morning, and welcome, everyone, to Blackstone Mortgage Trust's third quarter 2025 earnings conference call. I'm joined today by Katie Keenan, Chief Executive Officer, Tim Johnson, Chair of BX&T's Board and Global Head of Breds, Tony Marrone, Chief Financial Officer, Austin Pena, Executive Vice President of Investments, and Marcin Urbasic, Deputy Chief Financial Officer. This morning, we filed our 10-Q and issued a press release with a presentation of our results, which are available on our website and have been filed with the SEC. I'd like to remind everyone that today's call may include forward-looking statements, which are subject to risks, uncertainties, and other factors outside of the company's control. Actual results may differ materially. For discussion of some of the risks that could affect results, please see the risk factors section of our most recent 10-K. We do not undertake any duty to update forward-looking statements. We will also refer to certain non-GAAP measures on this call, and for reconciliations, you should refer to the press release and 10-Q. This audio cast is copyrighted material of Blackstone Mortgage Trust and may not be duplicated without our consent. For the third quarter, we reported GAAP net income of 37 cents per share and distributable earnings of 24 cents per share. Distributable earnings prior to charge-offs were 48 cents per share. A few weeks ago, we paid a dividend of 47 cents per share with respect to the third quarter. Please let me know if you have any questions following today's call. With that, I'll now turn it over to Katie.

Thanks, Tim. The XMT's strong third quarter results underscore the continued forward momentum across all aspects of our business, including earnings power, credit, investment activity, and balance sheet optimization. We reported distributable earnings prior to charge-off of $0.48 per share, covering the $0.47 dividend and continuing this year's positive trajectory. Book value was essentially flat, reflecting a stable credit backdrop with no new impaired loans. We continued our robust investment activity, looking across channels, originations, portfolio acquisitions, and net lease, and across geographies to find compelling relative value. And we continued to drive a more attractive cost of capital to enhance our competitiveness, improving terms on both corporate and asset level financing to reflect the strong positioning and track record of our business through this period. BX&T's 3Q performance also reflects our ability to capitalize on the continuing recovery in market conditions. Real estate fundamentals remain strong, with demand stable or improving and new supply constraints. Liquidity and transaction activity are increasing, with SASB CMBS on track for a record issuance year. This dynamic continues to generate robust repayment levels in our pre-rate hike portfolio, $1.6 billion this quarter, and affords us a strong investment pipeline. with $1.7 billion of total originations closed or in closing post-quarter ends, building on the $1 billion of investment activity in 3Q. While spreads have normalized as liquidity has returned to the market, the diversity and reach of our platform's vast sourcing engine are crucial differentiating factors. And with a market-leading capital markets team, we've continued to drive down our cost of borrowing. These advantages on both sides of our business allow BXMT to produce compelling returns on both an absolute and relative basis. I'll turn it over to Austin to speak in more detail about our investments, portfolio, and balance sheet. Before I do, I'd like to spend a minute on BXMT's opportune positioning today. Our portfolio is turning over, unlocking earnings from more challenged legacy deals and steadily increasing the proportion of our capital invested in high-quality current vintage assets. Our balance sheet is in fantastic shape and we remain at the forefront of both structural and cost of capital innovation. And all of this has translated to healthy earnings generation, supporting our dividend. The forward trajectory of our business is embedded in this quarter's results, though BXM2's stock price has yet to catch up. Notwithstanding the tremendous progress we have made in the last several years, Our stock today trades within 10% of the lows through this period and continues to provide a highly attractive 10.4% dividend yield. This disconnect has created the opportunity for us to repurchase over $100 million of stock so far this year at a meaningful discount to book value. As my tenure as CEO comes to a close, I could not be more excited about the momentum of this business and our highly capable leadership team. I'd also like to express my deep gratitude to the analyst and investor community for your support and attention to BXMT over the years. Congratulations to Tim and Austin on their new roles, and Austin, over to you.