The Capital Bite

Blackstone has agreed to finance the acquisition of HSBC's A$36bn Australian home loan portfolio in a deal that is expected to complete during the first half of 2027. The transaction will see funds managed by Blackstone Credit & Insurance, Blackstone Tactical Opportunities, and Blackstone Real Estate Debt Strategies provide capital for the purchase. Pepper Money will act as the loan management partner for the portfolio following completion. HSBC has stated that it will continue to invest in its Corporate and Institutional Banking operations in Australia and New Zealand, while closing its retail operations in stages over the next 18 months.

HSBC has sold its $36 billion book of home and personal loans to private equity giant Blackstone in one of the largest ever mortgage portfolio transactions, marking the end of a four-decade retail banking presence in Australia for the London-headquartered financial giant.

Blackstone Mortgage Trust (BXMT) has reported quarterly earnings of $0.48 per share for the quarter ended June 2026, surpassing the Zacks Consensus Estimate of $0.38 per share by +26.32%. This marks the fourth time in four quarters that the company has exceeded consensus EPS estimates. The company's revenues for the quarter were $82.57 million, also exceeding expectations. Blackstone Mortgage shares have lost 14.3% since the beginning of the year, underperforming the S&P 500's gain of 6.9%. The company's earnings outlook will be a key factor in determining its future performance.

Blackstone Mortgage Trust Inc. reported a net loss of $81.2 million for the second quarter of 2026, with earnings per share (EPS) at $(0.48). CEO Tim Johnson stated that the company is executing its goal of accelerating portfolio turnover and reallocating capital into high-conviction investment themes. The company's balance sheet is well-structured, and it has access to Blackstone's global platform resources. A conference call was held on July 30, 2026, to discuss the results, and an updated investor presentation can be viewed on the company's website.

The headline suggests that Pepper Money, a non-bank lender, is once again in the spotlight due to rumors of potential interest from private equity firm KKR. This stems from KKR's previous investments in Australian financial institutions and its reputation for acquiring stakes in companies with growth potential. As a result, Pepper Money may be considering a sale or partial sale of its business.

Kuwait Petroleum Corporation has signed a $16 billion lease and leaseback agreement with Blackstone, KKR, and Brookfield for its crude oil pipeline network, known as Project Peregrine. The deal will generate $7.85 billion in upfront proceeds and see the three investment groups collectively own 49% of the venture, while Kuwait Oil Company retains a controlling 51% stake. The agreement allows Kuwait to unlock capital tied to established infrastructure without selling the strategic asset or transferring responsibility for its operations. The pipeline network comprises 13 pipelines extending about 320 kilometres, or 199 miles. Kuwait controls about 6% of the world's proven oil reserves and relies heavily on crude exports for government revenue.

Blackstone, an alternative asset manager, has declared a quarterly variable dividend of $1.29 per share, up from $1.16 in the prior quarter, representing a 13-cent or almost 11 percent increase. This boost gives shareholders a bigger payout in the immediate term, but future dividends may not stay at current levels due to Blackstone's flexible dividend setup. The ex-dividend date is Monday, August 3rd, and the dividend payment will be made on Friday, August 10th to stockholders of record on August 3rd.

Blackstone Mortgage Trust (BXMT) is expected to release its quarterly earnings on July 30, with analysts predicting a year-over-year increase in earnings of $0.38 per share, representing a +100% change from the previous quarter. However, revenues are expected to be down 13.1% from the same period last year, at $82.4 million. The Zacks Earnings ESP (Expected Surprise Prediction) model suggests that analysts have recently become bearish on the company's earnings prospects, with an Earnings ESP of -15.05%. This makes it difficult to conclusively predict whether Blackstone Mortgage will beat the consensus EPS estimate.