Carson Block Shorts Blackstone’s Publicly Traded Mortgage REIT
Carson Block, the founder of Muddy Waters Research, has recently taken a short position on Blackstone Group Inc.’s publicly traded mortgage real estate investment trust (REIT). The REIT, known as Blackstone Mortgage Trust, Inc. (NYSE: BXMT), is a publicly traded mortgage REIT that invests in commercial real estate debt.
Background of Blackstone Mortgage Trust
Blackstone Mortgage Trust, Inc. is a publicly traded REIT that was founded in 2007. The REIT is managed by Blackstone Group Inc., a global investment firm that specializes in alternative investments. The REIT invests in commercial real estate debt, including first mortgages, mezzanine loans, and preferred equity investments. The REIT has a portfolio of over $20 billion in assets and is one of the largest publicly traded mortgage REITs in the United States.
Carson Block’s Short Position
Carson Block, the founder of Muddy Waters Research, recently announced that he has taken a short position on Blackstone Mortgage Trust, Inc. Block believes that the REIT is overvalued and that its stock price is not supported by its fundamentals. He believes that the REIT is overleveraged and that its dividend is unsustainable.
Reaction to Carson Block’s Short Position
The announcement of Carson Block’s short position on Blackstone Mortgage Trust, Inc. has caused a stir in the markets. The stock price of the REIT has dropped significantly since the announcement and analysts have been quick to weigh in on the situation. Many analysts have expressed concern about the REIT’s leverage and dividend sustainability.
Blackstone’s Response
Blackstone Group Inc. has responded to Carson Block’s short position by defending the REIT’s fundamentals. The company has stated that the REIT is well-capitalized and that its dividend is sustainable. Blackstone has also stated that the REIT is well-positioned to benefit from the current market conditions.
Outlook for Blackstone Mortgage Trust
The outlook for Blackstone Mortgage Trust, Inc. is uncertain. The stock price of the REIT has dropped significantly since Carson Block’s short position was announced and analysts are divided on the REIT’s future prospects. Some analysts believe that the REIT is overvalued and that its dividend is unsustainable, while others believe that the REIT is well-positioned to benefit from the current market conditions. Only time will tell how the REIT will fare in the future.