February 2019 4Q 2018 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 December 31, 2018, unless otherwise indicated. Blackstone Mortgage Trust 1
BXMT Highlights BXMT generated 4Q EPS of $0.61 and Core EPS (a) of $0.69 through continued growth in its first mortgage origination business; 2018 full year EPS of $2.50, Core EPS of $2.90 and dividends paid of $2.48 per share ($ in billions) Portfolio Growth (e) 7.2% 117% $15.8 +42% Dividend Yield (b) 2018 Dividend Coverage (c) $11.1 100% 62% Performing Loans Loan-to-Value (d)(e) YE 2017 YE 2018 Information included in this presentation is as of or for the period ended December 31, 2018, unless otherwise indicated. Blackstone Mortgage Trust 2 (a) See Appendix for a definition and reconciliation to GAAP net income. (b) Based on annualized dividend and BXMT closing price as of February 11, 2019. (c) Reflects ratio of Core Earnings to dividends declared. (d) Reflects weighted average LTV as of the date investments were originated or acquired by BXMT. (e) Includes $447 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.
Fourth Quarter and Full Year 2018 Results 4Q EPS of $0.61 and Core Earnings (a) per share of $0.69 ($2.50 and $2.90, Earnings & respectively for full year 2018) Dividends Book value per share of $27.20, up $0.27 in 2018; paid $0.62 per share dividend 4Q originations of $3.5 billion across 21 transactions (b) Originations Originated 52 loans (b) in 2018 resulting in record volume of $10.7 billion, with a weighted average origination LTV (c) of 61% Portfolio grew 42% in 2018 to $15.8 billion (d) Portfolio Composition 100% performing portfolio with a weighted average origination LTV (c)(d) of 62% Sourced new credit capacity of $3.0 billion in the quarter and $6.5 billion in 2018 Capitalization Issued 14.6 million shares at an average 1.22x P/B in 2018, generating $483 million of gross proceeds 96% of the portfolio (d) is floating rate Interest Rates Floating rate assets and matched liabilities support book value and earnings stability (a) See Appendix for a definition and reconciliation to GAAP net income. Blackstone Mortgage Trust 3 (b) Excluding upsizes. (c) Reflects weighted average LTV as of the date investments were originated or acquired by BXMT. (d) Includes $447 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.
Earnings & Dividends 4Q GAAP EPS of $0.61 and Core Earnings (a) of $0.69 per share, $0.62 per share dividend equates to a 7.2% dividend yield (b) Earnings in excess of quarterly dividends enhanced book value per share, which has grown 10% since 2013 re-IPO 2018 Core Earnings Per Share (c) Book Value Per Share Growth Retained $0.42 Core Earnings +10% $ 0.62 $27.20 Quarterly Dividend $24.67 Dividends Paid $2.48 Re-IPO 4Q'18 117% 2Q'13 2018 Dividend Coverage (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 February 11, 2019. (c) 2018 GAAP EPS was $2.50; retained Core Earnings refers to the amount of Core Earnings in excess of dividends paid for the periods presented.
Originations Origination volume grew to $3.5 billion in 4Q and $10.7 billion in 2018 while maintaining a consistent credit profile Originations were driven by an increase in both large loans and more granular deal flow ($ in billions) Origination Volume and Deal Count Origination LTV and Volume (b) $3.9 62% 61% $3.5 $10.7 $1.9 $1.4 $4.8 2017 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2018 Deal 7 14 10 21 Count (a) (a) Excluding upsizes. Blackstone Mortgage Trust 5 (b) Reflects weighted average LTV as of the date investments were originated or acquired by BXMT.
Portfolio Composition $15.8 billion portfolio (a) comprising 126 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) Condo 1% Self-Storage Other WA Retail 2% CAN Industrial 2% 3% 2% MA 2% 4% 2% Spanish Office Assets 45% 7% NY 25% NV IL 1% 2% $15.8B 7% 1% OH CA Multi 13% 16% CO 1% MD portfolio DC 2% 1% NC 1% TN VA HI GA 5% 6% 23% 3% TX 2% Hotel FL UK 4% 7% Weighted Average LTV (a)(b) BE 1% 62% AU ES 2% States that comprise less than 1% of total portfolio 7% (a) Includes $447 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.
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