But the firm sees an annualized drop in net income over the same period
Blackstone Mortgage Trust has reported GAAP net income of $50.6 million for the second quarter, a drop from the $63.1 million net income a year before.
Core earnings were $57.4 million, down from prior-quarter core earnings of $58.1 million, and year-ago core earnings of $63.1 million.
“We originated $1.5 billion of new loans in the quarter supported by $762 million of new capital markets transactions as we continue to deliver on our senior, floating rate strategy. Going forward, our results will benefit from our larger, quarter-end asset base and new debt capital as well as any increases in LIBOR,” said CEO Stephen Plavin. Net income for the first three months this year stood at $51.4 million.
The second-quarter originations, which were 100% floating rate, senior loans with a weighted average loan-to-value ratio of 61%, drove total originations in the first half to $2.5 billion, up 44% from the first half of 2016. Second-quarter loan activity included a $753 million portfolio loan, which was subsequently securitized in the 2017-ROSS transaction, and six loans with an average commitment of $114 million.
In terms of its capital markets activity, the company issued $762 million of securities during the quarter. The company issued $288 million of five-year convertible notes to contribute to accretive capital and sold $475 million of CMBS notes to support large loan originations.
The company ended the second quarter with net funding of $811 million. Aside from this funding, Blackstone said future quarters will also benefit from increased funding of construction loans and further deployment of the proceeds from its convertible note issuance.
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Mortgage lenders optimistic about 2017 – survey
Residential loan origination at 3-year low
Core earnings were $57.4 million, down from prior-quarter core earnings of $58.1 million, and year-ago core earnings of $63.1 million.
“We originated $1.5 billion of new loans in the quarter supported by $762 million of new capital markets transactions as we continue to deliver on our senior, floating rate strategy. Going forward, our results will benefit from our larger, quarter-end asset base and new debt capital as well as any increases in LIBOR,” said CEO Stephen Plavin. Net income for the first three months this year stood at $51.4 million.
The second-quarter originations, which were 100% floating rate, senior loans with a weighted average loan-to-value ratio of 61%, drove total originations in the first half to $2.5 billion, up 44% from the first half of 2016. Second-quarter loan activity included a $753 million portfolio loan, which was subsequently securitized in the 2017-ROSS transaction, and six loans with an average commitment of $114 million.
In terms of its capital markets activity, the company issued $762 million of securities during the quarter. The company issued $288 million of five-year convertible notes to contribute to accretive capital and sold $475 million of CMBS notes to support large loan originations.
The company ended the second quarter with net funding of $811 million. Aside from this funding, Blackstone said future quarters will also benefit from increased funding of construction loans and further deployment of the proceeds from its convertible note issuance.
Related stories:
Mortgage lenders optimistic about 2017 – survey
Residential loan origination at 3-year low
