Shares of Blackstone Mortgage Trust (NYSE: BXMT) tumbled 5.06% in pre-market trading on Friday, despite reporting improved first-quarter 2025 financial results. The mortgage real estate investment trust (REIT) saw its losses narrow significantly, but investors appear to be focusing on underlying concerns.

Blackstone Mortgage Trust reported a net loss of $357,000 for Q1 2025, a substantial improvement from the previous year. The loss per share came in at $0.002, markedly better than the $0.71 loss per share recorded in Q1 2024. While these figures represent a positive trend for the company, the pre-market stock reaction suggests that investors may have been expecting even stronger results or are wary of other factors affecting the company's outlook.

The negative market reaction could be attributed to several factors. First, despite the improved financial performance, the company is still reporting a loss, albeit a small one. Additionally, the earnings report mentioned three warning signs about Blackstone Mortgage Trust, with two of them described as potentially concerning. These unspecified risks may be contributing to investor unease. Furthermore, while the company's revenue is forecast to grow at an impressive 52% per annum over the next three years, outpacing the 16% growth expected for the US Mortgage REITs industry, investors might be questioning the company's ability to meet these projections in the current economic climate.