Carson Block Shorts Blackstone Publicly Traded Mortgage REIT

Short seller said the trust may face a liquidity crisis
Block said the REIT has extended maturities on its loans

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By Katherine Burton, Laura Benitez, and Liza Tetley

December 6, 2023 at 5:27 PM UTC

Updated on

December 6, 2023 at 10:35 PM UTC

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Carson Block said he’s short Blackstone Mortgage Trust, saying the publicly traded real estate investment trust is exposed to a perfect storm of economic conditions hitting commercial real estate and may face a liquidity crisis.

The Blackstone Mortgage Trust makes loans collateralized by commercial real estate. Block, who heads short-selling firm Muddy Waters, said the trust is facing a possible liquidity crisis and may default on its loans, and he expects it will have to cut its dividend by at least half.