Blackstone Mortgage Trust (BXMT) just took a bad hit.
However, the crisis may soon become an opportunity.
Down about 8%, short-selling hedge fund Muddy Waters is to blame. According to Reuters, “Carson Block, the CEO of Muddy Waters, told attendees at the Sohn Conference in London that Blackstone’s real estate investment trust (REIT) faced issues of oversupply, under-funded loan commitments, expiring leases and that its net operating income was compromised.”
Muddy Waters also said the firm could cut its dividend by the second half of 2024.
Blackstone responded that the short-selling report is “self-interested and misleading,” adding, “We will respond in greater detail – however the steps we have taken on both sides of our balance sheet, including proactive asset management, a conservative liquidity posture, and a patient approach to new investments, leave us well positioned to navigate this environment.”
For now, keep an eye on BXMT. This could turn into a blood-in-the-street opportunity.