Blackstone Mortgage Trust, the real estate investment trust managed by Blackstone Group Inc., is facing concerns from short seller Carson Block. Block has grown 'more bearish' on the trust, citing troubles with multifamily properties in the real estate market. He expects the trust to cut its dividend in the second half of this year. Block believes that the property market's woes are likely in the 'early innings' and that the tumult may extend beyond office buildings. The recent surge in borrowing costs has raised investor concerns about office and apartment buildings. Block took a short position in the Blackstone trust in December and anticipates difficulties for the trust in the latter part of this year. Following Block's comments, shares of Blackstone Mortgage Trust fell 2.7% to US$19.68 in New York [dc82cce3].
Despite these concerns, Blackstone Group Inc. continues to attract inflows from institutional investors and ultra-high net worth clients, driving asset under management (AUM) growth. However, some analysts believe that there is a tactical opportunity to take profits on Blackstone and rotate into undervalued themes like residential real estate investment trusts (REITs) [fd1a3311].
The private markets industry has experienced substantial growth in AUM over the past decade, and Blackstone's scale and reputation give it a competitive advantage in this space. However, the stock's valuation multiples have increased, raising concerns about a potential pullback [fd1a3311].
In light of these factors, the rating on Blackstone's stock (BX) has been downgraded from 'Strong Buy' to 'Buy' to manage short-term risk. This rating change reflects the view that while Blackstone remains an attractive investment for the long term, there may be limited upside in the near future [fd1a3311].
Bank of America analyst Derek Hewett is bullish on the business development company (BDC) sector, particularly Golub Capital BDC (GBDC) and Blackstone Secured Lending Fund (BXSL), which both offer dividend yields of at least 9%. Hewett believes that GBDC's value proposition is not fully reflected in its current share price and upgraded the stock from Neutral to Buy with a price target of $17. As for BXSL, Hewett sees it as well-positioned to gain market share and upgraded the stock from Neutral to Buy with a price target of $32. Both stocks are also rated as 'Strong Buys' by analyst consensus. Golub Capital has a high-quality investment portfolio and generated total investment income of $164.77 million in the last reported quarter, supporting a forward yield of 9.5%. Blackstone Secured Lending Fund has a diversified investment portfolio and reported total investment income of $304 million in its latest fiscal quarter, supporting a forward yield of 10%. Bank of America's recommendation highlights the potential for solid returns from investing in high-yield dividend stocks, which provide a regular income stream regardless of market conditions [da19b54d].
Bank of Queensland (ASX: BOQ) offers the highest dividend yield among its peers, with a trailing dividend yield of 6.5%. An $8,000 investment in Bank of Queensland shares would theoretically yield $520 of annual income. The bank's most recent dividend was franked at 100%, bringing the full gross yield to 9.46%. However, the dividend yield is subject to change based on the bank's future dividend rates and share price. Bank of Queensland has a 2.73% share of the Australian residential mortgage market [8014edd1].
Blackstone's $339 billion real estate arm is facing challenges after rates pain. Rising interest rates pose potential risks and challenges for Blackstone's real estate arm. The company's real estate portfolio is vulnerable to interest rate hikes, and there may be difficulties in refinancing its debt. Blackstone's real estate arm has been a major driver of the company's growth and profitability. To mitigate the risks posed by rising interest rates, Blackstone may need to adjust its investment strategy [c4984dde].
This article from Seeking Alpha discusses Blue Owl Capital Corporation (OBDC) and its dividend yield. OBDC investors have experienced downward volatility due to concerns about a more dovish Fed and a challenging lending environment. However, the article argues that OBDC remains well-positioned to navigate a higher-for-longer Fed and compete effectively. The company's uptrend bias is supported by a highly attractive dividend yield. The article maintains a Buy rating for OBDC, highlighting its valuation and scale as competitive advantages in the lending market. Despite recent pullbacks, the article suggests that OBDC's relatively attractive valuation has likely been priced in, reducing significant downside risks unless a severe recession occurs [1625f0df].