$X.XX the share, Thanks, the reserve increase our Tim. share, reflecting per an credit our two more distributable CECL our The book BXMT per challenging environment. $X.XX snapshot to of numbers, earnings, and this record quarter’s of to earnings comes given net key down impact value all-time change for
and is short-term income performance in XX related. pressuring the for precipitous integrally cycle XXX factor tightening XXXX, our points interest status are the basis rates, credit two in over is course the also The years. primary rise driving record that of business The
share credit the as are also stream powerful cycle. through we work a for for lion’s integrally our related investors, our returns of protects company, earnings They our
current XX.X% the book excess delivering income of yields, on well a of X.X% Our nearly impact increase. dividend is value reserve in our
protected, non-accruals. coverage quarter, And well the XX of the equity, book value. recurring. is earn against straight this as dividend We meaningful increased cushion out retained credit creating offsetting is we additional is dividend, That our when XXX% impact reserves on further difference paid it quarters. for It our
interplay drive will This and will are they and estate current some hedge same made stay time. the power that return, real challenged increasing like the persist, This for high outsized for rates to earnings continue businesses Fed the assets. still will credit At elevated a rates clear powerful performance most time, ours. pressure has for
has all market immune sectors, of does out. XXXX This broader fixed an inherently our are is income Few better is to robust. today. defensive year far economic are will and from we credit After outflows floating well even The massive we be so believe a in can businesses slowdown. rate withstand assets into inflows from business this Credit mean, not it. be, positioned but figured
of asset significant We loans start borrowers made best-in-class subordinate an with base to equity. with
for from our difficult gleaned insights footprint, far up reaching of benefit the the Blackstone a then With defenses built we environment. more
loans well proactively deep credit relationships. existing capital benefits recourse, And and well with cushion, We for of to themes while we paydowns maintaining Having and the on at seen We tier worked our outset raised to posture of cracks borrowers capital structured BXMT we $X focusing a the raised corporate highest reaping of of importantly conviction more our to the over our in shifted markets, bar XXXX. lending enhance a accumulating constructive liquidity. billion conservative top our the borrowers. our activities, collect
important the most concept. time, valuations The market to estate is an and costs, same liquidity on uneven. and environment the weigh assets. carry will real on continue of the interest is impact the impact current on economic At This of rate rates vulnerable
robust become assets best multifamily, to Income a hospitality supply fundamentals. more and in performing in is providing strong has and to term even more concentrated Capital constrained rising industrial demand assets, longer these growth support valuations. tailwind remains providing construction due costs, to
evidenced On the facing not and segment post-COVID known at are well headwinds setting the trophy true A and scarcity other from quality by hand, Class and slowing in outcomes uneven. is here too rents The space, basis There work economy. But office matter. offices assets. is patterns the as record monolithic
Meanwhile, experiencing sharpest headwinds. cities commodity growth the COVID facing that were already in office are slowing prior to
asset as are these assets Our our concentrated reserves of efforts. the bulk are management in
date utilization. model new suited realignment time. bearing backed to government and four demand, the the three these well assets with loans brunt are COVID, the office post-COVID in their in by notably that office The on of where of are before well on The the loans a significant back specific at in not properties tenant reduction quarter, most was that COVID reserves XXXX markets to average, this
The sponsor loans also of a the the material share in assets. towards change commonality wherewithal
impacting are loan about challenged imply asset and balance our office. of to On of reductions value XX% not are typical of commodity broader the But sober office nearly assets average, our clients are value We these of the most portfolio. XX%. our reserves
year. recently that office credit XXXX leverage, of substantially XX%. high LTV vintage qualities, an in by as loans office newly of of assets most with high the and built or of or yield, portfolio, debt enhancing one are particularly last renovated, origination average an average more our material location of additional commitment or XX% XX% are backed the such equity sponsor Sunbelt significant markets the low growth remainder, carries in
of reserves we round and we see BXMT where the the and the overall small four A our credit for out fraction rest loans portfolio. represent office challenges today. meaningfully rated account only have increased five Our X% to
XX% overall is nearly year, were performing. $X.X loans. Our of collected repayments, which XX% we This office billion loan portfolio of on
in assets. invest continuing incremental equity, to contributed $XXX their borrowers Our million of
structural primarily an and average or And in captured performance a on for most existing carrying course, million XX% We important $XXX partial loans, our tests, in of requirements. resulting the to cash negotiate protections, plan. reduction leverage able protection because our of We sweeps, were rate flow guarantees many paydowns nearly XX cap basis. office, deleveraging, lender loans increased this is recourse
loan not time, and contributed to provided a structure in because protection by along vast our the assets values majority and has capital in estate over have our it our the in be embedded committed business more experience sponsors the credit take remained de-risked position their been our to enhancing real portfolio. insulation further equity way, basis of would us our overlooked, of should to The the declines lasting XX% XX% loss at for
impact appropriate. office we XXXX, unprecedented loans, that today, where credit enhancement our as real the time negotiating asset appropriate managing address In the rating disruption actively on challenge for an providing much addressing encountered risk and adjustments, and for We estate are making delayed COVID reserve we market.
It create is on sentiment to combined job asset taking our deep impacts the to proactively long view look experience underperformance, broad-brush behavior the workout fundamental our where investor as portfolio and past and a based markets the a and Blackstone’s dynamic. sponsor and manage judiciously capital of
world and experience to owners value credit time, largest as through the have a We the real the that the in preservation for estate of become the cycles. path the one increasingly differentiator over best will identify of and execute important infrastructure
create become is that values and a the At believe risk. time, business are origination capital still capital will relief Debt outsized new the uniquely well on Blackstone started GST We cycle more opportunistic as trades adjust in the and environment same positioned in to needed. the underwritten access we we the once returns
attractive regular XXX than well, In of as overall the current exemplified our of points wider originations way pockets were market, yields lending portfolio. with found that industrial $XXX our second XX% basis nearly we by have half opportunities million
attractive risk can existing we portfolio established we the of So both and more addressable new below with of return been originations to be earnings the is to capital, our today opportunity deals must universe already be with up norm, have Most means, and transaction new afford the standard well perspective. activity our importantly, cost far stand to power from smaller the outstanding patient. the
As reopened historic corporate retracing XX% in market ahead, wides AAA Thanks, from mixed. debt cleared shoots see market turn calendar. active. of green We the outlook we with The the the is The XX% stress are their to spreads having has with market signed. December. look is some CMBS tests
geopolitical values But for rates uncertainty rational the interest sustained borrowing economies of pressure an dynamic asset important create high that are there should and rates, markets. support slowing long-term world. around and long-term headwinds, liquid Stabilizing costs, to more accumulating still the lead
balance record to As that to supported continuing earnings a substantial year. the continue Well position a a well and sheet. capitalize structured performing performance this our challenging withstand we liquidity the portfolio, advantages on while result, business to power, period, more
year navigate creates there Blackstone. better no to environment this While is and platform upcoming present challenges, challenge may than placed opportunity
information with largest We are alternative unparalleled experience world the in and asset relationships. manager the
four a track look have for here market investors our forward of continuing in We decade cycles. shareholders. to performance to we for BXMT And at all our deliver record
it will over Tony. to turn With that, I
