Our analysis is based on comparing Blackstone Mortgage Trust, Inc. with the following peers – Colony Capital, Inc. Class A, CIM Commercial Trust Corporation, Starwood Property Trust, Inc., RAIT Financial Trust, Vestin Realty Mortgage II, Inc., NorthStar Realty Finance Corp. and Arbor Realty Trust, Inc. (CLNY-US, CMCT-US, STWD-US, RAS-US, VRTB-US, NRF-US and ABR-US).
Blackstone Mortgage Trust, Inc.’s dividend yield is 8.16 percent and its dividend payout is 91.85 percent. This compares to a peer average dividend yield of 8.31 percent and a payout level of 94.31 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 42 out of a possible score of 100 is only about average.
Dividend Quality Overview
- Over the last twelve months (prior to June 30, 2016), BXMT-US paid a high quality dividend, which represents a yield of 8.16% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during 4 of these years — of these 2 were medium quality and 2 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
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Over the last twelve months (prior to June 30, 2016), BXMT-US paid a high quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 1.30x), investing cash flow (coverage of 3.79x), issuance cash flow (coverage of -3.79x) and twelve-month prior cash (coverage of 0.50x), for a total dividend coverage of 1.82x.
BXMT-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -3.82x) and net share buybacks (coverage of -1.80E-5x). Thus, the total coverage including share buybacks is 1.82x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.
|Dividend Yield (%)||0||79.66||1||4.96||6.66||8.16|
|Dividend Payout (%)||0||0||88.89||106.45||94.61||91.85|
A complete list of metrics and analysis is available on the company page.
Blackstone Mortgage Trust, Inc. is a real estate investment trust, which focuses primarily on loans and securities backed by commercial real estate assets. It operates through two segments: Loan Origination and CT Legacy Portfolio. The company was founded by Samuel Zell, John R. Klopp and Craig M. Hatkoff in July 1997 and is headquartered in New York, NY.
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