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

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april 2019 1q 2019 earnings release amp company

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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

SLIDE 1

April 2019 1Q 2019 Earnings Release & Company Supplemental

SLIDE 2

Blackstone Mortgage Trust 1

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

f the Securities Exchange Act of 1934, as amended, which reflect Blackstone Mortgage Trust, Inc. (“BXMT”) current views with respect to, among
ther 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

rigination 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.

SLIDE 3

Blackstone Mortgage Trust 2

 BXMT’s increased 1Q’19 earnings power reflects the increased scale of its $16.1 billion senior loan portfolio(a)  1Q’19 EPS of $0.62 and Core EPS(b) of $0.71 represent growth of $0.06 and $0.07 over 1Q’18

$12.1 $16.1 $0.64 $0.71

$0.40 $0.45 $0.50 $0.55 $0.60 $0.65 $0.70 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0

1Q'18 1Q'19

Outstanding Portfolio(a)

BXMT Highlights

Information included in this presentation is as of or for the period ended March 31, 2019, unless otherwise indicated. (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.

Increased Scale and Earnings Power

Core EPS

($ in billions, except per share data)

Dividend Coverage(d) Dividend Yield(c)

115% 7.2% 100% 62%

Performing Loans

Loan-to-Value(a)(e)

(f)

SLIDE 4

Blackstone Mortgage Trust 3

Originations

 $699 million of originations and $204 million of fundings under previously

riginated loans

 Net portfolio growth of $298 million and TTM(b) net fundings of $3.6 billion

Earnings & Dividends

 EPS of $0.62 and Core Earnings(a) per share of $0.71, or $88 million  Increased book value per share by $0.12 to $27.32; paid $0.62 per share dividend

First Quarter 2019 Results

Portfolio Composition Capitalization Interest Rates

 $16.1 billion(c) portfolio secured by institutional quality real estate in major markets  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

 $12.0 billion diversified asset-level financing structure; 2.8x debt-to-equity ratio(e)

(a) See Appendix for a definition and reconciliation to GAAP net income. (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.

 Floating rate assets and matched liabilities support book value and earnings stability  Increased LIBOR translates to increased earnings,(f) while LIBOR floors in certain

loans mitigate the impact of potential rate declines

SLIDE 5

Blackstone Mortgage Trust 4

$26.28 $26.95 $27.32 1Q'17 1Q'18 1Q'19 $0.62 $0.09

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

(a) See Appendix for a definition and reconciliation to GAAP net income. (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.

   

$0.62

Quarterly Dividend Dividends Paid Retained Core Earnings

Book Value Per Share Growth 1Q Core Earnings Per Share(c)

SLIDE 6

Blackstone Mortgage Trust 5

$3.1 $6.7

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)

TTM Net Fundings

(a) Represents the twelve months ended March 31, 2019. (b) Excluding upsizes and loans originated in the Walker & Dunlop joint venture.

100% senior loans

  100% floating rate

U.S., Europe, and Canada



1Q 2019 Origination Highlights

 $147 million average loan size(b)

$3.6B

Net Fundings Fundings Repayments

SLIDE 7

Blackstone Mortgage Trust 6

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)

(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. (b) Reflects weighted average LTV as of the date investments were originated or acquired by BXMT.

Weighted Average LTV(a)(b)

62%

States that comprise less than 1% of total portfolio BE CAN ES 7% UK 9% 2% 1% AU 2% 44% 23% 14% 4% 3% 2% 2% 8%

Self-Storage Condo Retail Industrial Office Hotel Other Multi

$16.1B

portfolio 1% AZ CO 1% DC 2% NC 1% OH 1% TN 1% 1% WA GA 3% TX 2% FL 4% HI 5% IL 7% VA 5% CA 15% MD 1% MA 2% NY 26% NV 1%

SLIDE 8

Blackstone Mortgage Trust 7

Capitalization

 $12.0 billion of outstanding asset-level financing on a market-leading, match-funded basis  Issued 1.9 million shares through ATM program at an average 1.27x P/B ($66 million gross proceeds)

(a) Includes $1.3 billion of consolidated securitized debt obligations as well as $0.9 billion of securitized debt held by third-parties in the $1.0 billion 2018 Single Asset Securitization, which is not consolidated on BXMT’s balance sheet. Refer to our consolidated financial statements for further discussion of the subordinated risk retention interest related to the 2018 Single Asset Securitization. (b) Includes $107 million of loan participations sold and $450 million of Non-Consolidated Senior Interests, which result from non-recourse sales of senior loan interests in loans BXMT originates. BXMT’s net investments in these loans are reflected in the form of mezzanine or other subordinate loans on BXMT’s balance sheet. (c) Represents (i) total outstanding secured debt agreements and convertible notes, less cash, to (ii) total equity.

($ in billions)

Financing

(Outstanding Balance)

Credit Facilities 11 Credit Providers Corporate Debt Convertible Notes and Secured Facility Corporate Obligations Senior Loan Interests(b)

$9.2 $0.6 $0.6 $9.8

Securitized Debt(a)

$2.2

CLO and Single Asset Securitization

2.8x

Debt-to-Equity Ratio(c)

Senior Syndications

SLIDE 9

Blackstone Mortgage Trust 8

2.00%
1.50%
1.00%
0.50%

0.00% 0.50% 1.00% 1.50% 2.00%

4% 96%

Interest Rates

 Floating rate assets and matched liabilities support book value and earnings stability  1.0% increase in USD LIBOR would increase earnings per share by $0.05 per quarter,(a) while LIBOR floors in certain loans

mitigate the impact of potential rate declines

(a) Changes in interest rates and credit spreads may affect our net interest income from loans and other investments and therefore our net income. Reflects impact on net income, net of incentive fees, on U.S. dollar denominated portfolio. See Appendix for important disclosures. (b) 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.

Sensitivity to USD LIBOR(a)

(Quarterly Earnings per Share)

Portfolio Fixed vs. Floating(b)

(% of Total Investment Exposure)

Floating Fixed

USD LIBOR

Floors Protect Against USD LIBOR Declines

$0.00 +$0.03 +$0.05 +$0.08 +$0.10 ($0.02) ($0.03) ($0.04) ($0.03)

SLIDE 10

Appendix

SLIDE 11

Blackstone Mortgage Trust 10

GAAP Net Income Adjustments Core Earnings

Interest Income 224.8 $ $— 224.8 $ Interest Expense (118.7) 0.1 (118.6) Management and Incentive Fees (19.8) — (19.8) General and Administrative Expenses (1.5) — (1.5) Non-Cash Compensation (7.8) 7.8 — Hedging and Foreign Currency Income, net(a) — 3.2 3.2 Net Income Attributable to Non-controlling Interests (0.4) — (0.4) Total 76.6 $ 11.1 $ 87.7 $ 4Q'18 Loans Outstanding Fundings Repayments 1Q'19 Loans Outstanding

Appendix – First Quarter 2019 Operating Results & Net Fundings Net Fundings(b)(c)

($ in billions)

Operating Results

($ in millions)

$16.1 $15.8 ($0.5)

(a) Primarily represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. These amounts are not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements. (b) Excludes the impact of changes in foreign currency rates and related hedges for non-USD investments. (c) 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.

$0.71

Core Earnings per Share

$0.62

Net Income per Share

$298 million

1Q’19 Net Fundings

$0.8

SLIDE 12

Blackstone Mortgage Trust 11

Origination Total Principal Net Book Maximum Property Loan Per Origination Loan Type Date (a) Loan (b)(c) Balance (b)(c) Value Maturity (d) Location Type SQFT / Unit / Key LTV (a) Loan 1 Senior loan 3/22/2018 $ 1,076 $ 1,076 $ 1,069 L + 3.15 % L + 3.40 % 3/15/2023 Diversified - Spain Mixed-Use n/a 71 % Loan 2 Senior loan 5/11/2017 753 691 688 L + 3.40 % L + 3.60 % 6/10/2023 Washington DC Office $338 / sqft 62 % Loan 3 Senior loan (b) 8/6/2015 481 481 87 5.75 % 5.77 % 10/29/2022 Diversified - EUR Other n/a 71 % Loan 4 Senior loan 5/1/2015 355 342 342 L + 2.85 % L + 3.02 % 5/1/2023 New York Office $434 / sqft 68 % Loan 5 Senior loan 2/13/2018 330 325 325 L + 3.42 % L + 3.52 % 3/9/2023 New York Multi $786,898 / unit 62 % Loan 6 Senior loan 1/7/2015 350 325 324 L + 2.50 % L + 2.76 % 1/9/2021 New York Office $278 / sqft 53 % Loan 7 Senior loan 10/23/2018 352 316 314 L + 3.40 % L + 3.72 % 10/23/2021 New York Mixed-Use $287 / sqft 65 % Loan 8 Senior loan 1/11/2019 313 313 309 L + 4.35 % L + 4.70 % 1/11/2026 Diversified - UK Other $151 / sqft 59 % Loan 9 Senior loan 3/31/2017 339 303 300 L + 3.50 % L + 3.87 % 8/9/2023 Maui Hotel $398,832 / key 61 % Loan 10 Senior loan 11/30/2018 291 275 272 L + 2.83 % L + 3.20 % 12/9/2023 New York Hotel $224,913 / key 73 % Loan 11 Senior loan 11/30/2018 254 247 245 L + 2.80 % L + 3.17 % 12/9/2023 San Francisco Hotel $363,291 / key 73 % Loan 12 Senior loan 12/11/2018 310 241 238 L + 2.55 % L + 2.96 % 12/9/2023 Chicago Office $203 / sqft 78 % Loan 13 Senior loan 8/3/2016 276 236 237 L + 4.66 % L + 5.32 % 8/9/2021 New York Office $325 / sqft 57 % Loan 14 Senior loan 12/22/2017 225 225 224 L + 2.80 % L + 3.16 % 1/9/2023 Chicago Multi $326,087 / unit 65 % Loan 15 Senior loan 5/9/2018 219 219 218 L + 3.00 % L + 3.24 % 5/9/2023 New York Industrial $62 / sqft 70 % Loans 16 - 122 Senior loans Various 12,316 9,437 9,317 5.85 % (e) 6.24 % (e) Various Various Various Various 62 % Total/Wtd. avg. $ 18,240 $ 15,053 $ 14,509 5.59 % 5.95 % 3.8 yrs 64 % Cash All-in Coupon Yield

Portfolio Details

($ in millions)

(a) Date loan was originated or acquired by BXMT, and the LTV as of such date. (b) In certain instances, loans are financed through the non-recourse sale of a senior loan interest that is not included in the consolidated financial statements. As of March 31, 2019, three loans in the portfolio have been financed with an aggregate $450 million of Non-Consolidated Senior Interests, which are included in the table above. (c) Portfolio excludes our $99 million subordinate risk retention interest in the $1.0 billion 2018 Single Asset Securitization. (d) Maximum maturity assumes all extension options are exercised; however, floating rate loans generally may be repaid prior to their final maturity without penalty. (e) Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for weighted-average calculation.

SLIDE 13

Blackstone Mortgage Trust 12

Consolidated Balance Sheets

($ in thousands, except per share data)

March 31, 2019 December 31, 2018 Assets Cash and cash equivalents 79,437 $ 105,662 $ Loans receivable, net 14,508,735 14,191,200 Other assets 208,048 170,513 Total assets 14,796,220 $ 14,467,375 $ Liabilities and equity Secured debt agreements, net 9,208,010 $ 8,974,756 $ Loan participations sold, net 107,237 94,418 Securitized debt obligations, net 1,286,417 1,285,471 Convertible notes, net 610,684 609,911 Other liabilities 132,283 128,212 Total liabilities 11,344,631 11,092,768 Commitments and contingencies — — Equity Class A common stock, $0.01 par value 1,257 1,234 Additional paid-in capital 4,039,805 3,966,540 Accumulated other comprehensive loss (30,756) (34,222) Accumulated deficit (570,908) (569,428) Total Blackstone Mortgage Trust, Inc. stockholdersʼ equity 3,439,398 3,364,124 Non-controlling interests 12,191 10,483 Total equity 3,451,589 3,374,607 Total liabilities and equity 14,796,220 $ 14,467,375 $

SLIDE 14

Blackstone Mortgage Trust 13

Three Months Ended March 31, 2019 2018 Income from loans and other investments Interest and related income 224,759 $ 155,425 $ Less: Interest and related expenses 118,688 69,989 Income from loans and other investments, net 106,071 85,436 Other expenses Management and incentive fees 19,790 15,492 General and administrative expenses 9,313 8,708 Total other expenses 29,103 24,200 Income before income taxes 76,968 61,236 Income tax provision 101 120 Net income 76,867 $ 61,116 $ Net income attributable to non-controlling interests (302) (158) Net income attributable to Blackstone Mortgage Trust, Inc. 76,565 $ 60,958 $ Per share information (basic and diluted) Weighted-average shares of common stock outstanding 124,333,048 108,397,598 Net income per share of common stock 0.62 $ 0.56 $

Consolidated Statements of Operations

($ in thousands, except per share data)

SLIDE 15

Blackstone Mortgage Trust 14

Three Months Ended March 31, 2019 December 31, 2018 Net income(a) 76,565 $ 73,643 $ Weighted-average shares outstanding, basic and diluted 124,333 121,588 Earnings per share, basic and diluted 0.62 $ 0.61 $ Three Months Ended March 31, 2019 December 31, 2018 Net income(a) 76,565 $ 73,643 $ Non-cash compensation expense 7,768 7,666 Hedging and foreign currency income, net(b) 3,271 1,942 Other items 95 394 Core Earnings 87,699 $ 83,645 $ Weighted-average shares outstanding, basic and diluted 124,333 121,588 Core Earnings per share, basic and diluted 0.71 $ 0.69 $ Three Months Ended March 31, 2019 December 31, 2018 Stockholdersʼ equity 3,439,398 $ 3,364,124 $ Shares Class A common stock 125,667 123,436 Deferred stock units 237 229 Total outstanding 125,904 123,665 Book value per share 27.32 $ 27.20 $

Per Share Calculations

(a) Represents net income attributable to Blackstone Mortgage Trust, Inc. (b) Primarily represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. These amounts are not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.

Core Earnings Reconciliation Book Value per Share Earnings per Share

(Amounts in thousands, except per share data)

SLIDE 16

Blackstone Mortgage Trust 15

2019 2018 Net income(a) 76,565 $ 60,958 $ Non-cash compensation expense 7,768 6,976 Hedging and foreign currency income, net(b) 3,271 854 GE purchase discount accretion adjustment(c) — (17) Other items 95 534 Core Earnings 87,699 $ 69,305 $ Weighted-average shares outstanding, basic and diluted 124,333 108,398 Net income per share, basic and diluted 0.62 $ 0.56 $ Core Earnings per share, basic and diluted 0.71 $ 0.64 $ Three Months Ended March 31,

Reconciliation of Net Income to Core Earnings

f the remaining loans in the pool is substantially assured.

(Amounts in thousands, except per share data)

SLIDE 17

Blackstone Mortgage Trust 16

Definitions

Core Earnings: Blackstone Mortgage Trust, Inc. (“BXMT”) discloses Core Earnings in this presentation. Core Earnings is a financial measure that is calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Core Earnings is an adjusted measure that helps BXMT evaluate its performance excluding the effects of certain transactions and GAAP adjustments that it believes are not necessarily indicative of its current loan origination portfolio and operations. Although according to its management agreement BXMT calculates the incentive and base management fees due to its Manager using Core Earnings before incentive fees expense, BXMT reports Core Earnings after incentive fees expense, as BXMT believes this is a more meaningful presentation of the economic performance of its class A common stock. Core Earnings is defined as GAAP net income (loss), including realized gains and losses not otherwise included in GAAP net income (loss), and excluding (i) net income (loss) attributable to the CT Legacy Portfolio, (ii) non-cash equity compensation expense, (iii) depreciation and amortization, (iv) unrealized gains (losses), and (v) certain non-cash items. Core Earnings may also be adjusted from time to time to exclude one-time events pursuant to changes in GAAP and certain other non-cash charges as determined by BXMT’s manager, subject to approval by a majority of its independent directors. Core Earnings does not represent net income or cash generated from operating activities and should not be considered as an alternative to GAAP net income, or an indication of BXMT’s GAAP cash flows from operations, a measure of BXMT’s liquidity, or an indication of funds available for its cash needs. In addition, BXMT’s methodology for calculating Core Earnings may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, its reported Core Earnings may not be comparable to the Core Earnings reported by other companies. Non-Consolidated Senior Interests: Senior interests in loans originated and syndicated to third parties. These non-recourse loan participations, which are excluded from the GAAP balance sheet, constitute additional financing capacity and are included in discussions of the loan portfolio. Earnings Sensitivity to LIBOR: Reflects the impact on net income, net of incentive fees, assuming no changes in credit spreads, portfolio composition, or asset performance. Assumes no change in general and administrative expenses, management fees, or

ther non-interest expenses relative to those incurred for the quarter ended March 31, 2019.

SLIDE 18

Company Supplemental

SLIDE 19

Blackstone Mortgage Trust 18

Blackstone Mortgage Trust, Inc. Overview

 Blackstone Mortgage Trust, Inc. (NYSE: BXMT) is a REIT that originates senior commercial mortgage loans in North

America, Europe and Australia

Large-Scale Portfolio



Institutional quality real estate located in major markets

Superior Sponsorship



Affiliation with BX, largest real estate private equity business in the world

Senior Lending Focused Floating Rate Business



Returns increase with rising short- term USD interest rates



Attractive current income, conservative credit and efficient leverage to drive returns

SLIDE 20

Blackstone Mortgage Trust 19

Superior Real Estate Platform

 Blackstone Real Estate is a premier debt and equity investment and asset management platform

Investor Capital Under Management

113 professionals

$18 billion AUM

Senior loans
$16.1B(a) of assets
$4.4B equity market

capitalization(b)

Mezzanine debt
$7.5B strategy

$140B

CMBS strategy
$5.2B equity under

management

Blackstone

BREDS Drawdown BREDS Liquid

Mortgage Trust Funds Funds

Note: Totals may not sum due to rounding. There can be no assurance that any Blackstone Fund or investment will be able to implement its investment strategy, achieve its objectives or avoid losses. (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. (b) As of April 16, 2019.

BREP Global 39% BREP Europe 13% BREP Asia 10% BPP Core+ 26% BREDS 13%

SLIDE 21

Blackstone Mortgage Trust 20

Superior Real Estate Platform(a)

 One of the largest real estate owners and operators in every sector and geography

(a) As of December 31, 2018. In addition to wholly-owned assets, figures include leased assets, collateral, assets managed through stakes in publicly-traded companies and assets owned through joint-ventures (reflected at 100%), as applicable.

Residential

300k

Units

Hospitality

158k

Owned Keys

Office

232M

Square Feet

Industrial

543M

Square Feet

Current Holdings

SLIDE 22

Blackstone Mortgage Trust 21

Superior Real Estate Platform

 BXMT operates within Blackstone Real Estate’s highly integrated global business

Blackstone Advantage

Global Business

499 professionals
11 global offices

Scale Capital

$140 billion RE AUM
$29 billion raised in 2018(a)

Long View

Long term capital

commitments

Never a forced seller

Regular Meetings Single Perspective

1

Global Real Estate Platform

Investment Process:

Same People, Same Process Weekly

Partners’ Meeting
Global ICMs
Investment Review

Committees Quarterly

Board Meetings
Portfolio Asset Review

Annual

Regional Strategy Sessions

(a) Represents gross fundraising as of December 31, 2018.

SLIDE 23

Blackstone Mortgage Trust 22

Nadeem Meghji

Head of Real Estate Americas Senior Managing Director of Blackstone Real Estate

Kathleen McCarthy

Global Co-Head of Real Estate Senior Managing Director of Blackstone Real Estate

Superior Real Estate Platform(a)

 Blackstone’s unique investment process is complemented by fully-integrated corporate infrastructure

BREDS Investment Committee

Kenneth Caplan

Global C0-Head of Real Estate Senior Managing Director of Blackstone Real Estate

Jonathan Pollack

Global Head of BREDS Senior Managing Director of BREDS

Stephen Plavin

President and CEO of BXMT Senior Managing Director of BREDS

Michael Nash

Executive Chairman of BXMT Global Chairman of BREDS

Tim Johnson

Global Head of Originations Senior Managing Director of BREDS

Rob Harper

Head of US Asset Management Senior Managing Director of Blackstone Real Estate

Originations (US. & Europe)

38 professionals

Michael Nagelberg

Managing Director of BREDS (U.S.)

Katie Keenan

Managing Director of BREDS (U.S.) and BXMT Executive Vice President, Investments

Michael Eglit

Managing Director of BREDS (U.S.)

Asset Management

9 professionals

Thomas Ruffing

Managing Director of BREDS

Leon Volchyok

Managing Director of BREDS

Capital Markets / IR / Finance

17 professionals

Douglas Armer

Managing Director of BREDS and BXMT Executive Vice President, Capital Markets

Weston Tucker

Senior Managing Director of Blackstone External Relations

Anthony Marone

CFO and Managing Director of BREDS

Legal / Compliance

3 professionals

Jimmy Yung

Managing Director of BREDS (U.S.)

Nicholas Menzies

Managing Director of BREDS, Head of BREDS Capital Markets

Michael Zerda

Managing Director of BREDS (Europe)

SLIDE 24

Blackstone Mortgage Trust 23

Target Investments

$50 million to $500+ million

Loan Size

First mortgages on stabilized or transitional assets

Collateral

All commercial property types

Property Type

North America, Europe and Australia

Geographies

LIBOR + 3.50% and higher, scaled to risk

Rate

Last dollar 50% to 80%

Loan to Value

3 to 5 years

Term

Typically interest only

Amortization

Typically 1.0% origination fee and 0.25% to 0.50% extension fees

Fees

12 to 24 months of spread maintenance

Prepayment

SLIDE 25

Blackstone Mortgage Trust 24

Sample Transaction: 123 Mission

 $187 million floating rate, first mortgage loan secured by 123 Mission in San Francisco

Well located class A office building undergoing value-enhancing repositioning; 65% LTV
Initial funding of $169 million with $18 million future funding commitment for building improvements and leasing

 Blackstone offered a one-stop solution for a repeat borrower in a major transaction 123 Mission

SLIDE 26

Blackstone Mortgage Trust 25

Sample Transaction: Westin Maui

 $339 million floating rate, first mortgage loan secured by Westin Hotel in Maui, Hawaii

Well located in beachfront Ka’anapali surrounded by retail, dining and golf courses; 61% LTV; $551k per key(a)
Initial funding of $267 million with $72 million future funding commitment for hotel improvements

 Located in a core hospitality market where Blackstone has been an active investor Westin Maui

Airport

(a) Includes value of ground lease.

SLIDE 27

Blackstone Mortgage Trust 26

Sample Transaction: Woolworth Building

 $355 million floating rate, first mortgage loan secured by the Woolworth Building, an iconic office tower located in

Downtown Manhattan

Adjacent to City Hall with convenient access to transportation hubs
789k sf, including 12k sf of retail; 71% LTV

Woolworth Building

SLIDE 28

Blackstone Mortgage Trust 27

Sample Transaction: Aldwych House

 £78 million floating rate, first mortgage loan secured by Aldwych House in central London

Well located 162k sf prime office building undergoing £28.0 million, value-enhancing, refurbishment; 50% LTV

 Transaction sourced through existing Blackstone relationship with local operating partner paired with a well capitalized

institutional sponsor

Aldwych House

SLIDE 29

Blackstone Mortgage Trust 28

Illustrative Loan Economics(a)

 BXMT’s senior loans are supported by significant owner’s equity  Prudent use of balance sheet leverage drives attractive risk adjusted returns for BXMT stockholders

LTV Capital Structure $ Cum. Credit Facility Advance $80.0 million 53.3% $80.0 million BXMT Equity $20.0 million 66.7% $100.0 million Owner Equity $50.0 million 100.0% $150.0 million

L+4.0%

Return on Assets(b)

L+12.0%

Gross ROI

L+8.7%

Imputed Core ROE

L+2.0% All-in Cost(b) 80% Advance Rate 4x Leverage Multiple 2.0% Spread 1.5% Management Fee 0.4% G&A 1.0% Working Capital 0.4% Incentive Fee

Overhead(c) Leverage

(a) This illustration is presented solely for demonstrating our business model 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 aggregate results. The loan economics presented are hypothetical and are subject to various risks and uncertainties. See “Forward‐Looking Statements and Other Matters” at the beginning of the presentation for further discussion of such risks and uncertainties. (b) Whole loan yield and all-in cost of leverage include amortization of fees and expenses pursuant to GAAP in addition to current pay rates, and assume no defaults. (c) Overhead allocations are illustrative, actual allocations vary materially and depend on expenses incurred, working capital and defensive liquidity needs, overall capital deployment and performance among other factors.

SLIDE 30

Blackstone Mortgage Trust 29

BXMT Relative Value

 Blackstone provides compelling relative value compared to other listed real estate products

Note: The composition of the various categories of REITs being compared with BXMT, as well as the characteristics compared, reflect our current views as of the date appearing in this material

nly and are not based on any index or other established categorization.

Agency Resi mREITs Other Comm mREITs Equity REITs

           

Yield

Sr. Strategy

   

Dividend Yield Senior Loans Floating Rate Low Earnings Volatility