UPDATE: JMP Securities Initiates Coverage on Blackstone Mortgage Trust on Continued Good Results

In a report published Tuesday, JMP Securities analyst Steven C. DeLaney initiated coverage on

with a Market Outperform rating and $27.50 price target. In the report, JMP Securities noted, “We are initiating coverage on Blackstone Mortgage, a recently recapitalized senior floating-rate commercial real estate lender, with a Market Outperform investment rating and a $27.50 price target, which is supported by an implied dividend yield of ~7.25% on our stabilized quarterly dividend projection of $0.50 for 2Q14 and is equal to 1.10x current adjusted book value per share of $25.09. BXMT was recently recapitalized through a May 2013 offering that raised net proceeds of $634M and increased the market capitalization of the company to over $700M. Since that offering, the company has already originated or closed approximately $1.8B of senior, floating-rate commercial mortgages toward its goal of an initial target portfolio of $2.2B. Thus far, the pace of originations has mildly exceeded our expectations due to a robust transaction pipeline.” Blackstone Mortgage Trust closed on Monday at $25.45.