October 2018 3Q 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 September 30, 2018, unless otherwise indicated. Blackstone Mortgage Trust 1
BXMT Highlights BXMT generated 3Q EPS of $0.67 and Core EPS (a) of $0.75 through continued growth in its first mortgage origination business ($ in billions) Portfolio Growth (d) 7.5% 62% $13.8 +24% Dividend Yield (b) Loan-to-Value (c)(d) $11.1 100% 95% Performing Floating Rate (d) YE 2017 3Q'18 Information included in this presentation is as of or for the period ended September 30, 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 October 22, 2018 (c) Reflects weighted average LTV as of the date investments were originated or acquired by BXMT (d) Includes $467 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
Third Quarter 2018 Results EPS of $0.67 and Core Earnings (a) per share of $0.75 Earnings & Book value per share increased to $27.53, up 12% since 2013 re-IPO; paid $0.62 per Dividends share dividend $1.4 billion of originations in 3Q and record YTD originations of $7.2 billion, more than doubling 1Q-3Q 2017 volume Originations Continued international growth: originated $316 million of loans in Australia bringing YTD non-US originations to $1.9 billion Portfolio grew 24% YTD to $13.8 billion (b) Portfolio Composition 100% performing portfolio with a weighted average origination LTV (b)(c) of 62% Issued 8.2 million shares at 1.21x P/B, generating $270 million of gross proceeds and adding $0.38 to book value per share through accretive issuance levels Capitalization Grew credit capacity by $2.2 billion YTD and expanded multi-currency funding capabilities 95% of the portfolio (b) 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) Includes $467 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 (c) Reflects weighted average LTV as of the date investments were originated or acquired by BXMT
Earnings & Dividends 3Q GAAP EPS of $0.67 and Core Earnings (a) of $0.75 per share, $0.62 per share dividend equates to a 7.5% dividend yield (b) Earnings in excess of $0.62 quarterly dividend contributed to book value, which has grown 12% since 2013 re-IPO Book Value Per Share Growth TTM Core Earnings Per Share (c) Retained $0.40 Core Earnings +12% $27.53 $ 0.62 Quarterly Dividend $24.67 $2.48 Dividends Paid Re-IPO 3Q'18 116% 2Q'13 TTM 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 October 22, 2018 (c) TTM GAAP EPS was $2.49; retained Core Earnings refers to the amount of Core Earnings in excess of dividends paid for the periods presented
Originations Origination volume of $1.4 billion in 3Q; $7.2 billion YTD volume is more than double 1Q-3Q 2017 volume Blackstone Real Estate’s scale and reach provide opportunities to access attractive investments in a wide range of markets ($ in billions) Origination Volume YTD 2018 Origination Highlights $ 7.2 100% performing $0.3 +102% $1.6 100% floating rate $3.6 $0.1 59% LTV (a) $5.3 $3.5 $286 million average loan size (b) 1Q'17 - 3Q'17 1Q'18 - 3Q'18 North America Europe Australia (a) Reflects weighted average LTV as of the date investments were originated or acquired by BXMT Blackstone Mortgage Trust 5 (b) Excludes loans originated in the Walker & Dunlop joint venture
Portfolio Composition $13.8 billion portfolio (a) (113 assets) secured by institutional quality real estate, with 54% 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 1% WA Condo 1% 2% CAN 8% Retail MA 2% 1% 2% Spanish Office OR 44% Assets 8% NY 25% 1% PA NV 1% $13.8B 2% IL CA 1% OH 6% 14% Multi 15% portfolio CO 1% MD DC 2% 1% NC 1% 1% TN AZ VA HI 6% 23% GA 5% 2% 1% TX Hotel 2% LA U.K. FL 6% 4% Weighted Average LTV (a)(b) BE 1% 62% AU 2% States that comprise less than 1% of total portfolio ES 8% (a) Includes $467 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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