BlackRock 2037 Municipal Target Term Trust

N-CSR 1 d222609dncsr.htm BLACKROCK 2037 MUNICIPAL TARGET TERM TRUST BlackRock 2037 Municipal Target Term Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-23621

Name of Fund: BlackRock 2037 Municipal Target Term Trust (BMN)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock 2037

Municipal Target Term Trust, 50 Hudson Yards, New York, NY 10001

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2025

Date of reporting period: 12/31/2025

Item 1 – Reports to Stockholders

(a) The Reports to Shareholders are attached herewith.

December 31, 2025

2025 Annual Report

BlackRock 2037 Municipal Target Term Trust (BMN)

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents

Page

Annual Report:
Municipal Market Overview	3
The Benefits and Risks of Leveraging	4
Trust Summary	5
Financial Statements:
Schedule of Investments	8
Statement of Assets and Liabilities	13
Statement of Operations	14
Statements of Changes in Net Assets	15
Statement of Cash Flows	16
Financial Highlights	17
Notes to Financial Statements	18
Report of Independent Registered Public Accounting Firm	26
Important Tax Information	27
Investment Objectives, Policies and Risks	28
Automatic Dividend Reinvestment Plan	34
Trustee and Officer Information	35
Additional Information	38
Glossary of Terms Used in this Report	40

Municipal Market Overview For the Reporting Period Ended December 31, 2025

Municipal Market Conditions

The first half of 2025 was defined by the Trump administration’s announcement of reciprocal tariffs in early April that spurred extreme volatility, dislocations across global markets, and a reset of municipal valuations to historically attractive levels. Markets ultimately stabilized and positive absolute returns soon followed, but elevated municipal supply throughout the period was a primary driver of relative underperformance vs. other fixed income asset classes. A softening labor market, the longest government shutdown in history, and a lack of material economic data for the market (and Federal Reserve) to lean on framed the second half of the year. An increasingly dovish central bank cut rates at three consecutive meetings during the period, reducing the Federal Funds rate from 4.50% to 3.75% and creating a strong backdrop for rates. The belly of the curve, single-A rated credits, and the housing, IDR/PCR, and leasing sectors outperformed.

Bloomberg Municipal Bond Index(a)
Total Returns as of December 31, 2025
6	months:	4.61%
12	months:	4.25%

During the 12-months ended December 31, 2025, municipal bond funds experienced net inflows totaling $62 billion (based on data from the Investment Company Institute), with demand concentrated primarily in ETFs, investment-grade, and long-term funds. At the same time, the market absorbed $567 billion in issuance, a new record for supply and a 16% increase year-over-year. Issuance was boosted by an increased need for infrastructure spending, a pull-forward
in perceived vulnerable sectors to front-run potential new legislation, and declining COVID stimulus cash
available to municipalities.

A Closer Look at Yields

AAA Municipal Yield Curves

Source: Thomson Municipal Market Data.

From December 31, 2024, to December 31, 2025, yields on AAA-rated 30-year municipal bonds increased by 34 basis points (bps) from 3.90% to 4.24%, ten-year yields decreased by 30 bps from 3.06% to 2.76%, five-year yields decreased by 46 bps from 2.87% to 2.41%, and two-year yields decreased by 43 bps from 2.82% to 2.39% (as measured by Refinitiv Municipal Market Data). As a result, the municipal yield curve steepened over the 12-month period with the spread between two- and 30-year maturities steepening by 77 bps to a slope of 185 bps, outpaced slightly by the 83 bps of steepening experienced in the Treasury curve.

Municipal curves remain steeper than their 1-, 3-, and 5-year averages, offering investors who are looking for duration an attractive entry point.

Financial Conditions of Municipal Issuers

Municipal credit fundamentals remain exceptionally strong heading into year-end, supported by solid revenue growth, disciplined fiscal management, and historically low leverage. State revenues rose 6.3% year over year in the June quarter, led by an 11.0% increase in personal income taxes and continued strength in corporate receipts, while sales taxes reflected moderating consumer activity. Debt service remains low at 9.77% of revenues, providing states with flexibility as economic growth cools. Quarterly volatility across states largely reflects timing and policy effects rather than credit deterioration. Revenue gains in Oregon, New Hampshire, California, and Nebraska were influenced by tax settlement timing or expiring credits, while softness in energy-producing and consumption-dependent states was cyclical. Policy changes in 2025—including tax adjustments in Maryland, New York, Illinois, Georgia, and Arizona—demonstrate an active but balanced fiscal environment.

We enter 2026 seeing value in AMT bonds, where limited applicability has created compelling opportunities for additional spread pickup. We favor higher coupons and sectors providing high quality carry, such as transportation, housing, prepaid gas, and healthcare.

The opinions expressed are those of BlackRock as of December 31, 2025 and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (“AMT”). Capital gains distributions, if any, are taxable.

(a) The Bloomberg Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

Municipal Market Overview

The Benefits and Risks of Leveraging

The Trust may utilize leverage to seek to enhance the distribution rate on, and net asset value (“NAV”) of, its common shares (“Common Shares”). However, there is no guarantee that these objectives can be achieved in all interest rate environments.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by the Trust on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Trust’s shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage (after paying the leverage costs) is paid to shareholders in the form of dividends, and the value of these portfolio holdings (less the leverage liability) is reflected in the per share NAV.

To illustrate these concepts, assume the Trust’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Trust’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by the Trust with the proceeds from leverage earn income based on longer-term interest rates. In this case, the Trust’s financing cost of leverage is significantly lower than the income earned on the Trust’s longer-term investments acquired from such leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the Trust’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Trust had not used leverage. In such circumstance, the investment adviser may nevertheless determine to maintain the Trust’s leverage if it deems such action to be appropriate. Furthermore, the value of the Trust’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the amount of the Trust’s obligations under its leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trust’s NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that the Trust’s intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in the Trust’s NAV, market price and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of the Trust’s Common Shares than if the Trust were not leveraged. In addition, the Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Trust to incur losses. The use of leverage may limit the Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. The Trust incurs expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of the Trust’s investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Trust’s investment adviser will be higher than if the Trust did not use leverage.

To obtain leverage, the Trust has issued Variable Rate Demand Preferred Shares (“VRDP Shares” or “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), the Trust is permitted to borrow money (including through the use of TOB Trusts) or issue debt securities up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. The Trust may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, the Trust may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

2025 BlackRock Annual Report to Shareholders

Trust Summary as of December 31, 2025

BlackRock 2037 Municipal Target Term Trust (BMN)

Investment Objective

BlackRock 2037 Municipal Target Term Trust’s (BMN) (the “Trust”) investment objectives are to provide current income that is exempt from regular federal income tax (but which may be subject to the federal alternative minimum tax in certain circumstances) and to return $25.00 per common share (the initial public offering price per common share) to holders of common shares on or about September 30, 2037. Under normal market conditions, the Trust invests at least 80% of its Managed Assets in municipal securities. The Trust invests primarily in investment grade quality securities or securities that are unrated but judged to be of comparable quality by the investment adviser.

There is no assurance that the Trust will achieve its investment objectives, including its investment objective of returning $25.00 per share.

Trust Information

Symbol on New York Stock Exchange	BMN
Initial Offering Date	October 28, 2022
Termination Date	September 30, 2037
Yield on Closing Market Price as of December 31, 2025 ($26.18)(a)	4.30%
Tax Equivalent Yield(b)	7.26%
Current Monthly Distribution per Common Share(c)	$0.093750
Current Annualized Distribution per Common Share(c)	$1.125000
Leverage as of December 31, 2025(d)	39%

(a)	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results.
(b)	Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
(c)	The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.
(d)	Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging.

Market Price and Net Asset Value Per Share Summary

	12/31/25	12/31/24	Change	High	Low
Closing Market Price	$ 26.18	$ 25.59	2.31 %	$ 26.18	$ 23.59
Net Asset Value	25.76	25.72	0.16	26.08	24.23

GROWTH OF $10,000 INVESTMENT

BMN commenced operations on October 28, 2022.

(a)

Represents the Trust’s closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.

(b)

A benchmark that is designed to track the USD-denominated long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

Trust Summary

Trust Summary as of December 31, 2025(continued)

BlackRock 2037 Municipal Target Term Trust (BMN)

Performance

Returns for the period ended December 31, 2025 were as follows:

	Average Annual Total Returns
	1 Year	Since Inception(a)
Trust at NAV(b)(c)	4.76 %	5.39 %
Trust at Market Price(b)(c)	7.01	5.93
Customized Reference Benchmark(d)	5.54	7.71
Bloomberg Municipal Bond Index	4.25	5.29

(a)	BMN commenced operations on October 28, 2022.
(b)	All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices and reflect the Trust’s use of leverage, if any. The performance tables and graph do not reflect the deduction of taxes that a shareholder would pay on Trust distributions or the sale of Trust shares.
(c)	The Trust moved from a discount to NAV to a premium during the period, which accounts for the difference between performance based on market price and performance based on NAV.
(d)	The Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond Index (75%) and the Bloomberg Municipal Bond: High Yield (non-Investment Grade) 2037 Total Return Index (25%).

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
Past performance is not an indication of future results.

The Trust is presenting the performance of one or more indices for informational purposes only. The Trust is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Trust’s investment strategies, portfolio components or past or future performance.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

The following discussion relates to the Trust’s absolute performance based on NAV:

The Trust benefited from its allocations to the housing, healthcare, and transportation sectors, all of which delivered strong results in 2025. Income also contributed meaningfully, as many legacy holdings continue to generate attractive cash flows due to their high yields. Selective holdings in high yield development districts further bolstered results.

At a time of positive market performance, there were no sizable detractors. With this said, the Trust experienced periods of pressure in select transportation-linked holdings affected by the financial distress of the rail issuer Brightline West. In addition, temporary cash balances held in early October were a mild drag on performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These views are not intended to be a forecast of future events and are no guarantee of future results.

2025 BlackRock Annual Report to Shareholders

Trust Summary as of December 31, 2025(continued)

BlackRock 2037 Municipal Target Term Trust (BMN)

Overview of the Trust’s Total Investments

SECTOR ALLOCATION
Sector(a)	Percent of Total Investments(b)
Health	21.8 %
Transportation	20.5
County/City/Special District/School District	16.3
Housing	15.5
Corporate	10.1
State	8.3
Education	5.5
Utilities	2.0

CALL/MATURITY SCHEDULE
Calendar Year Ended December 31,(c)	Percent of Total Investments(b)
2026	15.3 %
2027	8.7
2028	4.4
2029	4.8
2030	4.2

CREDIT QUALITY ALLOCATION
Credit Rating(d)	Percent of Total Investments(b)
AAA/Aaa	4.5 %
AA/Aa	35.1
A	21.2
BBB/Baa	19.4
BB/Ba	4.9
B	1.0
N/R	13.9

(a)	For purposes of this report, sector sub-classifications may differ from those utilized by the Trust for compliance purposes.
(b)	Excludes short-term securities.
(c)	Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
(d)	For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

Trust Summary

Schedule of Investments

December 31, 2025

BlackRock 2037 Municipal Target Term Trust (BMN)

(Percentages shown are based on Net Assets)

Security		Par (000)	Value
Municipal Bonds
Alabama(a) — 2.4%
Baldwin County Industrial Development Authority, RB, Series A, AMT, 5.00%, 06/01/55(b)	$	1,235	$ 1,259,045
Black Belt Energy Gas District, RB, Series A, 5.25%, 05/01/56		2,510	2,590,775
			3,849,820
Arizona — 2.0%
Arizona Industrial Development Authority, RB, 5.00%, 07/01/38(b)		460	464,378
La Paz County Industrial Development Authority, RB, 5.00%, 02/15/46(b)		500	483,215
Salt Verde Financial Corp., RB, 5.00%, 12/01/37		2,000	2,169,551
			3,117,144
California — 4.7%
California Community Choice Financing Authority, RB, Series E-2, Sustainability Bonds, 4.19%, 02/01/54(a)		625	627,759
California Enterprise Development Authority, RB, 7.60%, 11/15/37(b)		1,000	1,016,301
California Infrastructure & Economic Development Bank, Refunding RB, Sustainability Bonds, 12.00%, 01/01/65(a)(b)		440	325,600
California Public Finance Authority, RB(b)
Series A, 5.88%, 06/01/39		750	759,986
Sustainability Bonds, 5.00%, 11/15/36		1,000	1,005,806
California School Finance Authority, RB, Series A, 5.00%, 07/01/45(b)		1,000	996,880
California School Finance Authority, Refunding RB, Sustainability Bonds, 5.25%, 08/01/38(b)		125	129,267
California Statewide Communities Development Authority, RB, Series A, 5.00%, 12/01/41(b)		2,500	2,505,956
			7,367,555
Colorado — 3.6%
Colorado Health Facilities Authority, Refunding RB
Series A, 4.00%, 08/01/39		750	741,464
Series A, 4.00%, 11/15/50		1,575	1,415,335
Denver Convention Center Hotel Authority, Refunding RB, 5.00%, 12/01/40		2,000	2,008,250
Eagle County Airport Terminal Corp., ARB, Series B, AMT, 5.00%, 05/01/41		1,000	1,003,474
Southlands Metropolitan District No. 1, Refunding GO, Series A-1, 5.00%, 12/01/37		500	502,662
			5,671,185
Delaware — 0.3%
Delaware State Economic Development Authority, Refunding RB, Series A, 4.00%, 10/01/45(a)		400	400,740
District of Columbia — 0.7%
District of Columbia, RB, Series A, AMT, Sustainability Bonds, 5.50%, 02/28/37		1,000	1,153,461
Florida — 8.3%
County of Miami-Dade Seaport Department, Refunding RB, Series A, AMT, 5.00%, 10/01/42		2,000	2,069,968
County of Osceola Florida Transportation Revenue, Refunding RB, CAB(c)
Series A-2, 0.00%, 10/01/43		2,750	1,125,996
Series A-2, 0.00%, 10/01/46		6,175	2,052,404
Florida Development Finance Corp., RB(a)(b)
AMT, 6.13%, 07/01/32		400	401,734
Series A, Class A, AMT, 4.38%, 10/01/54		250	252,904

Security		Par (000)	Value
Florida (continued)
Florida Development Finance Corp., Refunding RB, AMT, (AGM), 5.00%, 07/01/44	$	315	$ 309,132
Gas Worx Community Development District, SAB, 5.00%, 05/01/36(b)		615	643,160
Greater Orlando Aviation Authority, ARB, AMT, 5.50%, 11/01/37		1,500	1,619,156
Normandy Community Development District, SAB, 4.63%, 05/01/31(b)		520	525,665
Orange County Health Facilities Authority, RB, 5.00%, 08/01/35		500	500,484
Rookery Community Development District, SAB, 5.00%, 05/01/44		500	491,824
Village Community Development District No. 15, SAB, 4.85%, 05/01/38(b)		400	414,881
Village Community Development District No. 16, SAB, 4.50%, 05/01/40		2,750	2,792,211
			13,199,519
Georgia — 2.2%
DeKalb County Housing Authority, Refunding RB, 4.13%, 12/01/34		250	252,031
Development Authority of Cobb County, RB, Series A, 5.70%, 06/15/38(b)		625	633,821
Gainesville & Hall County Hospital Authority, RB, 4.00%, 02/15/46		1,010	929,396
Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/37		1,500	1,634,242
			3,449,490
Illinois — 7.3%
Chicago Board of Education, GO, Series C, 5.25%, 12/01/39		2,675	2,667,518
Chicago Midway International Airport, Refunding ARB, Series A, AMT, Senior Lien, 5.25%, 01/01/42		1,250	1,325,204
Chicago O’Hare International Airport, ARB, Series D, AMT, Senior Lien, 5.00%, 01/01/47		1,000	999,638
City of Chicago Illinois, GO
Series A, 5.50%, 01/01/41		1,855	1,892,420
Series C, 6.00%, 01/01/43		1,000	1,066,483
Illinois Finance Authority, RB, Series A, 6.50%, 05/15/42		250	267,550
Illinois Finance Authority, Refunding RB
4.00%, 08/15/41		1,170	1,130,793
Series A, 5.00%, 05/15/41		310	301,237
Metropolitan Pier & Exposition Authority, RB, Series A, (NPFGC), 0.00%, 06/15/37(c)		2,000	1,286,462
Rock Island County School District No. 41 Rock Island/Milan, GO, Series A, (AGM), 5.00%, 01/01/44		600	628,962
			11,566,267
Iowa — 2.2%
Iowa Finance Authority, RB
4.75%, 08/01/42		2,000	2,000,031
Series A, 5.00%, 05/15/43		1,500	1,469,974
			3,470,005
Louisiana — 0.8%
Louisiana Housing Corp., RB, S/F Housing, Series B, (FHLMC, FNMA, GNMA), 4.60%, 12/01/42		995	1,024,526
Louisiana Public Facilities Authority, Refunding RB, Series A2, 5.00%, 12/15/43(b)		335	321,879
			1,346,405
Maine — 0.1%
Finance Authority of Maine, Refunding RB, AMT, 4.63%, 12/01/47(a)(b)		100	100,761

2025 BlackRock Annual Report to Shareholders

Schedule of Investments (continued)

December 31, 2025

BlackRock 2037 Municipal Target Term Trust (BMN)

(Percentages shown are based on Net Assets)

Security		Par (000)	Value
Maryland — 2.5%
City of Baltimore MD, RB, 5.00%, 06/01/45(b)	$	825	$ 818,418
Maryland Economic Development Corp., RB, Class B, AMT, Sustainability Bonds, 5.00%, 1

SEC Form N-CSR filed by BlackRock 2037 Municipal Target Term Trust