Blackstone Mortgage Trust, Inc. (NYSE:BXMT) Q2 2023 Earnings Call Transcript

Stephen Laws: Thanks Katie. And then as a follow-up, I wanted to touch on the CECL reserve. I know I think of the $27 million increase, $7 million was on the new specific loan or refi rated, but it looks like $9 million increase on non-US loans. Can you talk about what drove that increase on the non-US loans and what you’re seeing there?

Tony Marone: Sure. So the general reserve changes, yeah, as you probably are aware, those are not impairment decisions where we’re making decisions loan by loan. That’s where we’re pooling these loans. Generally speaking, our loans are pretty comparable from a credit perspective across the US and outside the US, but we do run our CECL math on two pools because of the natural geographic differences. So I’d say it’s really movements in the macro metrics that drive our general reserve, things like the assumption around repayment date or the timing of future fundings and things like that, that we just saw moved the needle a little bit more in the non-U.S. general reserve relative to the U.S. general reserves. So I wouldn’t read too much into that other than how some of those data metrics move quarter-over-quarter.

Stephen Laws: Great. Appreciate those details. Thank you.

Operator: And now I’ll turn the call over to Tim Hayes for closing remarks.

Tim Hayes: Thank you, operator, and to everyone for joining today’s call. Please reach out with any questions.

Operator: Goodbye.