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I rate Blackstone Mortgage Trust, Inc. (NYSE:BXMT) a Hold for income investors interested in mortgage real estate investment trusts (mREITs). The fund is run by a strong team with a long history of paying
Blackstone Mortgage Trust: Buying Net Lease Properties Will Make It Stronger
Summary
- Blackstone Mortgage Trust, Inc. is recovering from a loss, creating a new strategy for profitability.
- Blackstone’s global scale, conservative loan-to-value, and new joint venture into net lease properties provide strategic advantages and potential for stabilization.
- BXMT’s 9.3% yield is appealing, but recent dividend cuts and sector headwinds warrant caution until Q2 results confirm a turnaround.
- I remain watchful for further dividend cuts; Q2’s progress on the net lease strategy will be pivotal for future rating upgrades.
David A. Johnson is founder and principal of Endurance Capital Management, a New Jersey Limited Liability Company. As an investor entrepreneur, David invests in stocks, bonds, options, ETFs, REITs, real estate, closed end funds and alternative investment funds such as hedge funds and private credit. With over 30 years’ experience in investing, David holds a Master of Science (MS) Degree in Finance, with a concentration in Investment Analysis, from Boston University, a Certificate in Financial Planning, and a Master’s in Business Administration (MBA) from Fordham University.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of BXMT, ARI,STWD, ABR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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