May 2018 1Q 2018 Earnings Release & Company Supplemental - PowerPoint PPT Presentation

May 2018 1Q 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, 2017, 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, 2018, unless otherwise indicated. Blackstone Mortgage Trust 1

BXMT Highlights BXMT originated $1.9 billion of senior commercial real estate loans growing its portfolio by $1.0 billion in 1Q and generating $0.56 of GAAP EPS and $0.64 of Core EPS (a) Income Stability Protection Expertise $0.62 $12.1B 94% $1.9B Floating Rate 1Q Dividend Senior Loan Portfolio 1Q Originations 8.1% 62% +$0.24 $120B Dividend Yield (b) Loan-to-Value (c) BX Real Estate Investor Earnings Impact per 1% Capital under Management Increase in LIBOR (d) 100% performing Stable assets Portfolio positioned for Blackstone Real loan portfolio financed with long- yield and value Estate platform generates current term, match-funded protection in changing provides expert cash income liabilities rate environment management Information included in this presentation is as of or for the period ended March 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 April 23, 2018 (c) Reflects LTV as of the date loans were originated or acquired by BXMT (d) Changes in interest rates and credit spreads may affect our net interest income from loans and other investments. Reflects impact on net income, net of incentive fees. See Appendix for important disclosures.

First Quarter 2018 Results  1Q EPS of $0.56 and Core Earnings (a) of $0.64 per share, or $69 million Earnings & Dividends  Paid $0.62 per share dividend and increased book value per share by $0.02 to $26.95  Record direct origination volume of $1.9 billion and net fundings of $1.0 billion Loan  Closed € 1.0 billion loan secured by portfolio of Spanish assets, and subsequent to Originations quarter end closed a $1.8 billion office construction loan in Hudson Yards, Manhattan  Growth of 9% during 1Q resulted in a $12.1 billion total portfolio of senior loans (b) Portfolio Composition  100% performing portfolio with a weighted average origination LTV (c) of 62%  Issued $220 million of five-year convertible notes with a coupon of 4.75% Financing  Added $2.8 billion of term and currency matched credit facility capacity  94% of the portfolio is floating rate Interest Rates  1.0% increase in LIBOR would increase earnings per share by $0.24 per annum (d) (a) See Appendix for a definition and reconciliation to GAAP net income Blackstone Mortgage Trust 3 (b) Includes $996 million of Non-Consolidated Senior Interests; see Appendix for definition (c) Reflects LTV as of the date loans were originated or acquired by BXMT (d) Changes in interest rates and credit spreads may affect our net interest income from loans and other investments. Reflects impact on net income, net of incentive fees. See Appendix for important disclosures.

   Earnings & Dividends   1Q GAAP earnings of $0.56 per share and Core Earnings (a) of $0.64 per share  $0.62 per share dividend equates to a 8.1% dividend yield (b) Dividend Coverage (c) $0.69 $0.65 $0.64 $0.62 $0.60 Quarterly Dividend 104% Dividend Coverage 2Q'17 3Q'17 4Q'17 1Q'18 Core Earnings per Share Dividends per Share (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 23, 2018 (c) GAAP EPS of $0.53, $0.61, $0.59 and $0.56 as of 2Q’17, 3Q’17, 4Q’17 and 1Q’18, respectively

Loan Originations  Origination volume of $1.9 billion, up $651 million from 4Q and net fundings of $1.0 billion, up $601 million  $180 million in fundings of previously originated commitments resulting in total gross fundings of $2.0 billion, up $692 million from 4Q ($ in billions) Net Fundings 1Q Origination Highlights  100% senior loans $2.0 Fundings of Existing Loans $1.8 $1.3  100% floating rate $1.3 $0.9 $1.1 Fundings of $1.1 New Loans $0.7  Weighted average LTV (a) of 66% ($0.4) Repayments ($0.9)  ($0.9) ($1.0) Large loans: $309 million avg. size (b) $0.8 ($0.0) $0.4 $1.0 Net Fundings 2Q'17 3Q'17 4Q'17 1Q'18 (a) Reflects LTV as of the date loans were originated or acquired by BXMT Blackstone Mortgage Trust 5 (b) Excludes loans originated in the BXMT-Walker & Dunlop joint venture

Portfolio Composition  $12.1 billion portfolio (106 senior loans) secured by institutional quality real estate with 59% of loans in gateway markets  Sole previously “ 4 ” risk rated loan ($20 million) was upgraded to “ 3 ” during 1Q and repaid in full subsequent to quarter end Geographic Diversification (a) Collateral Diversification (a) Other WA CAN 3% Condo 2% 2% 7% Retail MA 7% Office 3% 48% Spanish 10% Assets $12.1B NY IL 22% CA 6% portfolio 16% 12% Multi DC 2% HI GA 14% VA 4% 3% 6% Hotel FL UK 8% 7% Weighted Average LTV (b) DEU BE 1% 1% 62% ES 10% States that comprise less than 1% of total loan portfolio (a) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note Blackstone Mortgage Trust 6 2 in our Form 10-Q for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $996 million of such Non-Consolidated Senior Interests as of March 31, 2018. (b) Reflects LTV as of the date loans were originated or acquired by BXMT