April 2019 1Q 2019 Earnings Release & Company Supplemental - PowerPoint PPT Presentation

April 2019 1Q 2019 Earnings Release & Company Supplemental

Forward-Looking Statements and Other Matters This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect Blackstone Mortgage Trust, Inc. (“BXMT”) current views with respect to, among other things, BXMT’s operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. BXMT believes these factors include but are not limited to those described under the section entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended December 31, 2018, as such factors may be updated from time to time in its periodic filings with the Securities and Exchange Commission (“SEC”) which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this presentation and in the filings. BXMT assumes no obligation to update or supplement forward ‐ looking statements that become untrue because of subsequent events or circumstances. Slide 20 of this presentation references numerical data relating to Blackstone that includes activities of Blackstone Real Estate’s public and private portfolio companies unless otherwise noted. Slide 28 of this presentation includes a reference to imputed core return on equity (“Imputed Core ROE”) and other economic terms relating to an illustrative BXMT loan transaction that are presented solely for purposes of illustrating the impact of using floating rate financing to finance the origination of a floating rate loan and should not be viewed as indicative of the results that will be achieved for any particular loan in BXMT’s portfolio or of BXMT’s results as a whole. The loan economics presented are hypothetical and based upon a number of assumptions, including no defaults on the loan, and are subject to various risks and uncertainties. Accordingly, there are or will be important factors, including those referred to above, that could cause the actual economics that are achieved on any loan in BXMT’s loan portfolio to differ materially from those indicated in this illustration. In particular, it should be noted that as a result of such factors the net spread between whole loan yields and the cost of related leverage, the leverage multiple applicable to any particular loan and allocable overhead may vary materially from period to period and across BXMT’s loan portfolio. Imputed Core ROE also excludes potential incentive management fees and is presented before any tax effects. Information included in this presentation is as of or for the period ended March 31, 2019, unless otherwise indicated. Blackstone Mortgage Trust 1

BXMT Highlights  BXMT’s increased 1 Q’ 19 earnings power reflects the increased scale of its $16.1 billion senior loan portfolio (a)  1 Q’ 19 EPS of $0.62 and Core EPS (b) of $0.71 represent growth of $0.06 and $0.07 over 1 Q’ 18 ($ in billions, except per share data) Increased Scale and Earnings Power 7.2% 115% $0.71 $18.0 $0.70 $16.0 Dividend Yield (c) Dividend Coverage (d) $16.1 $0.64 $0.65 $14.0 $12.0 $12.1 $0.60 $10.0 $0.55 $8.0 100% $6.0 62% $0.50 $4.0 $0.45 Performing Loans Loan-to-Value (a)(e) $2.0 $0.0 $0.40 (f) 1Q'18 1Q'19 Outstanding Portfolio (a) Core EPS Information included in this presentation is as of or for the period ended March 31, 2019, unless otherwise indicated. Blackstone Mortgage Trust 2 (a) Includes $447 million and $450 million of Non-Consolidated Senior Interests as of December 31, 2018 and March 31, 2019, respectively, and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $99 million subordinate risk retention interest. (b) See Appendix for a definition and reconciliation to GAAP net income. (c) Based on annualized dividend and BXMT closing price as of April 22, 2019. (d) Reflects ratio of Core Earnings to dividends declared. (e) Reflects weighted average LTV as of the date investments were originated or acquired by BXMT. (f) 1Q 2018 GAAP EPS was $0.56. See Appendix for a definition and reconciliation to GAAP net income.

First Quarter 2019 Results  EPS of $0.62 and Core Earnings (a) per share of $0.71, or $88 million Earnings & Dividends  Increased book value per share by $0.12 to $27.32; paid $0.62 per share dividend  $699 million of originations and $204 million of fundings under previously originated loans Originations  Net portfolio growth of $298 million and TTM (b) net fundings of $3.6 billion  $16.1 billion (c) portfolio secured by institutional quality real estate in major markets Portfolio Composition  100% performing portfolio with a weighted average origination LTV (c)(d) of 62%  Post quarter end, closed a $500 million senior secured term loan at L+2.50% (99.75 OID) with a 7-year term Capitalization  $12.0 billion diversified asset-level financing structure; 2.8x debt-to-equity ratio (e)  Floating rate assets and matched liabilities support book value and earnings stability Interest Rates  Increased LIBOR translates to increased earnings, (f) while LIBOR floors in certain loans mitigate the impact of potential rate declines (a) See Appendix for a definition and reconciliation to GAAP net income. Blackstone Mortgage Trust 3 (b) Represents the twelve months ended March 31, 2019. (c) Includes $450 million of Non-Consolidated Senior Interests and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $99 million subordinate risk retention interest. (d) Reflects weighted average LTV as of the date investments were originated or acquired by BXMT. (e) Represents (i) total outstanding secured debt agreements and convertible notes, less cash, to (ii) total equity. (f) Changes in interest rates and credit spreads may affect our net interest income from loans and other investments and therefore our net income. See Appendix for important disclosures.

   Earnings & Dividends   1Q GAAP EPS of $0.62 and Core Earnings (a) of $0.71 per share; $0.62 per share dividend equates to a 7.2% dividend yield (b)  Retained earnings in excess of quarterly dividends enhanced book value per share 1Q Core Earnings Per Share (c) Book Value Per Share Growth Retained $0.09 $27.32 Core Earnings $ 0.62 $26.95 Quarterly Dividend $26.28 Dividends Paid $0.62 1Q'17 1Q'18 1Q'19 (a) See Appendix for a definition and reconciliation to GAAP net income. Blackstone Mortgage Trust 4 (b) Based on annualized dividend and BXMT closing price as of April 22, 2019. (c) 1Q GAAP EPS was $0.62; retained Core Earnings refers to the amount of Core Earnings in excess of dividends paid for the periods presented.

Originations  $699 million of originations and $204 million of fundings under previously originated loans  Net portfolio growth of $298 million and TTM (a) net fundings of $3.6 billion  Originations in U.S., Europe, and Canada demonstrate our global reach, taking advantage of Blackstone’s scale ($ in billions) 1Q 2019 Origination Highlights TTM Net Fundings  100% senior loans  100% floating rate $6.7 Fundings  $147 million average loan size (b) $ 3.6B Net Fundings Repayments  $3.1 U.S., Europe, and Canada (a) Represents the twelve months ended March 31, 2019. Blackstone Mortgage Trust 5 (b) Excluding upsizes and loans originated in the Walker & Dunlop joint venture.

Portfolio Composition  $16.1 billion portfolio (a) comprising 123 assets secured by institutional quality real estate, with 71% in gateway markets  High quality 100% performing portfolio with low weighted average LTV (a)(b) of 62% Major Market Focus (a) Collateral Diversification (a) Other Condo 1% WA Self-Storage CAN 2% 8% MA 2% Retail 2% 2% 3% Industrial Office 44% 4% NY 26% 1% NV 1% $16.1B IL CA 1% OH 7% Multi 14% 15% CO 1% MD portfolio DC 2% 1% NC 1% 1% TN AZ VA 5% HI GA 23% 5% 3% TX 2% Hotel UK FL 9% 4% Weighted Average LTV (a)(b) BE 1% 62% AU ES 2% States that comprise less than 1% of total portfolio 7% (a) Includes $450 million of Non-Consolidated Senior Interests and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $99 million subordinate risk retention interest. Blackstone Mortgage Trust 6 (b) Reflects weighted average LTV as of the date investments were originated or acquired by BXMT.