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

May 2018 1Q 2018 Earnings Release & Company Supplemental

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, 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

• 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, 2018, unless otherwise indicated.

Blackstone Mortgage Trust 2

BXMT Highlights

8.1%

Dividend Yield(b) Blackstone Real Estate platform provides expert management 100% performing loan portfolio generates current cash income Stable assets financed with long- term, match-funded liabilities Portfolio positioned for yield and value protection in changing rate environment

Information included in this presentation is as of or for the period ended March 31, 2018, unless otherwise indicated. (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.

$0.62

1Q Dividend

62%

Loan-to-Value(c)

$12.1B

Senior Loan Portfolio

94%

Floating Rate

+$0.24

Earnings Impact per 1% Increase in LIBOR(d)

$120B

BX Real Estate Investor Capital under Management

$1.9B

1Q Originations

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)

Expertise Income Stability Protection

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Loan Originations

 Record direct origination volume of $1.9 billion and net fundings of $1.0 billion  Closed €1.0 billion loan secured by portfolio of Spanish assets, and subsequent to

quarter end closed a $1.8 billion office construction loan in Hudson Yards, Manhattan Earnings & Dividends

 1Q EPS of $0.56 and Core Earnings(a) of $0.64 per share, or $69 million  Paid $0.62 per share dividend and increased book value per share by $0.02 to $26.95

First Quarter 2018 Results

Portfolio Composition Financing Interest Rates

 Growth of 9% during 1Q resulted in a $12.1 billion total portfolio of senior loans(b)  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%  Added $2.8 billion of term and currency matched credit facility capacity

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

 94% of the portfolio is floating rate  1.0% increase in LIBOR would increase earnings per share by $0.24 per annum(d)

Blackstone Mortgage Trust 4

$0.60 $0.69 $0.65 $0.64 2Q'17 3Q'17 4Q'17 1Q'18

Dividends per Share

Dividend Coverage(c) 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)

(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) GAAP EPS of $0.53, $0.61, $0.59 and $0.56 as of 2Q’17, 3Q’17, 4Q’17 and 1Q’18, respectively

$0.62

Quarterly Dividend

104%

Dividend Coverage Core Earnings per Share

   

Blackstone Mortgage Trust 5

$1.1 $0.7 $1.1 $1.8 ($0.4) ($0.9) ($0.9) ($1.0) 2Q'17 3Q'17 4Q'17 1Q'18

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)

$0.8

Fundings of New Loans Repayments

Net Fundings

$0.4 Net Fundings $1.3 $0.9 $1.3 $2.0 ($0.0) $1.0

Fundings of Existing Loans

100% senior loans

  100% floating rate

Large loans: $309 million avg. size(b)



1Q Origination Highlights

 Weighted average LTV(a) of 66%

(a) Reflects LTV as of the date loans were originated or acquired by BXMT (b) Excludes loans originated in the BXMT-Walker & Dunlop joint venture

Blackstone Mortgage Trust 6

Spanish Assets

48% 14% 12% 10% 7% 2% 7%

Retail

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

Office Hotel Other Multi

Geographic Diversification(a) Collateral Diversification(a)

(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 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

Weighted Average LTV(b)

62%

States that comprise less than 1% of total loan portfolio

$12.1B

portfolio MA 3% CAN 3% CA 16% WA 2% HI 4% DC 2% GA 3% IL 6% FL 8% VA 6% NY 22% DEU 1% BE 1% UK 7% ES 10%

Condo

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Financing

 Issued $220 million of five-year convertible notes with a coupon of 4.75%  Added $2.8 billion of term and currency matched credit facility capacity with five counterparties

Financing

(outstanding balance)

(a) In addition to $118.2 million of loan participations sold, includes $996 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. (b) Represents (i) total outstanding secured debt agreements and convertible notes, less cash, to (ii) total equity

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

$6.0 $0.8 $1.1 $6.8

Securitized Debt

$1.3

CLO and Single Asset Securitization

($ in billions)

2.3x

Debt-to-Equity Ratio(b)

Senior Syndications

Blackstone Mortgage Trust 8

$0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 1.88% 2.38% 2.88% 3.38% 3.88% 4.38%

6% 94%

Interest Rates

 Earnings are positively correlated to changes in USD LIBOR, the benchmark index for 82% of BXMT’s net loan equity  A 1.0% increase in USD LIBOR would increase earnings per share by $0.24 per annum(a)

(a) 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 Sensitivity to USD LIBOR(a)

(Annual Dollars of Earnings per Share)

Earnings Per Share USD LIBOR

Portfolio Fixed vs. Floating

(% of Total Loan Exposure)

Floating Fixed

Appendix

Blackstone Mortgage Trust 10

4Q'17 Loans Outstanding Fundings Repayments 1Q'18 Loans Outstanding

GAAP Net Income Adjustments Core Earnings

Interest Income 155.4 $

• $

155.4 $ Interest Expense (70.0) 0.5 (69.5) Management and Incentive Fees (15.5) — (15.5) G&A / Other (1.7) 0.8 (0.9) Non-Cash Compensation (7.0) 7.0 — Net income attributable to non-controlling interests (0.2) — (0.2) Total 61.0 $ 8.3 $ 69.3 $

— —

Appendix – First Quarter 2018 Operating Results & Net Funding

$1.0 billion(b)

Net Fundings

Net Funding

($ in billions)

Operating Results

($ in millions)

$11.1 $2.0 $(1.0) $12.1

(a) Includes $985 million and $996 million of Non-Consolidated Senior Interests as of December 31, 2017 and March 31, 2018, respectively; see Appendix for definition (b) Excludes the impact of changes in foreign currency rates and hedges for non-USD loans and financings

$0.64

Core Earnings per Share

$0.56

Net Income per Share

(a) (a)

Blackstone Mortgage Trust 11

Origination Total Principal Net Book Maximum Property Loan Per Origination Loan Type Date (a) Loan (b) Balance (b) Value Maturity (c) Location Type SQFT / Unit / Key LTV (a) Loan 1 Senior loan 3/22/2018 $ 1,230 $ 1,230 $ 1,220 L + 3.15 % L + 3.40 % 3/15/2023 Diversified - Spain Spanish Assets n/a 67 % Loan 2 Senior loan 5/11/2017 753 669 665 L + 3.40 % L + 3.60 % 6/10/2023 Northern Virginia Office 327 / sqft 62 % Loan 3 Senior loan (b) 5/15/2015 590 555 94 L + 4.25 % L + 4.58 % 5/15/2020 Miami Retail 704 / sqft 36 % Loan 4 Senior loan (b) 8/6/2015 518 518 94 4.49 % 5.81 % 10/29/2022 Diversified - EUR Other n/a 71 % Loan 5 Senior loan 1/7/2015 315 298 297 L + 3.50 % L + 3.71 % 1/9/2021 New York Office 255 / sqft 53 % Loan 6 Senior loan 5/1/2015 320 295 294 L + 3.45 % L + 3.83 % 5/1/2020 New York Office 375 / sqft 68 % Loan 7 Senior loan 2/13/2018 330 294 293 L + 3.42 % L + 3.54 % 3/9/2023 New York Multi 711,951 / unit 62 % Loan 8 Senior loan 3/31/2017 258 242 240 L + 4.15 % L + 4.54 % 4/9/2022 Maui Hotel 318,182 / key 75 % Loan 9 Senior loan 12/22/2017 225 225 223 L + 2.80 % L + 3.16 % 1/9/2023 Chicago Multi 326,087 / unit 65 % Loan 10 Senior loan 6/4/2015 223 223 225 L + 4.20 % L + 4.20 % 3/19/2021 Diversified - CAN Hotel 37,447 / key 54 % Loan 11 Senior loan 6/23/2015 222 215 215 L + 3.65 % L + 4.00 % 5/8/2022 Washington DC Office 241 / sqft 72 % Loan 12 Senior loan 8/3/2016 276 208 207 L + 4.66 % L + 5.23 % 8/9/2021 New York Office 286 / sqft 57 % Loan 13 Senior loan 2/25/2014 195 195 194 L + 4.01 % L + 4.46 % 3/9/2021 Diversified - US Hotel 102,470 / key 55 % Loan 14 Senior loan 8/19/2016 200 190 190 L + 3.64 % L + 4.10 % 9/9/2021 New York Office 580 / sqft 69 % Loan 15 Senior loan 4/15/2016 200 189 189 L + 4.25 % L + 4.86 % 5/9/2021 New York Office 176 / sqft 40 % Loans 16 - 106 Senior loans Various 7,787 6,593 6,441 5.68 % (d) 6.09 % (d) Various Various Various Various 62 % Total/Wtd. avg. $ 13,641 $ 12,137 $ 11,082 5.36 % 5.78 % 3.7 yrs 62 % Cash All-in Coupon Yield (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, 2018, three loans in the portfolio have been financed with an aggregate $996 million of Non-Consolidated Senior Interests, which are included in the table above. (c) Maximum maturity assumes all extension options are exercised; however, floating rate loans generally may be repaid prior to their final maturity without penalty (d) Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for weighted-average calculation.

Loan Portfolio Details

($ in millions)

Blackstone Mortgage Trust 12

March 31, 2018 December 31, 2017 Assets Cash and cash equivalents 57,396 $ 69,654 $ Restricted Cash 17,082 32,864 Loans receivable, net 11,081,716 10,056,732 Other assets 55,096 99,575 Total assets 11,211,290 $ 10,258,825 $ Liabilities and equity Secured debt agreements, net 5,996,880 $ 5,273,855 $ Loan participations sold, net 117,926 80,415 Securitized debt obligations, net 1,282,279 1,282,412 Convertible notes, net 778,070 563,911 Other liabilities 109,624 140,826 Total liabilities 8,284,779 7,341,419 Commitments and contingencies — — Equity Class A common stock, $0.01 par value 1,082 1,079 Additional paid-in capital 3,515,418 3,506,861 Accumulated other comprehensive loss (21,903) (29,706) Accumulated deficit (573,384) (567,168) Total Blackstone Mortgage Trust, Inc. stockholdersʼ equity 2,921,213 2,911,066 Non-controlling interests 5,298 6,340 Total equity 2,926,511 2,917,406 Total liabilities and equity 11,211,290 $ 10,258,825 $

Consolidated Balance Sheets

($ in thousands, except per share data)

Blackstone Mortgage Trust 13

Three Months Ended March 31, 2018 2017 Income from loans and other investments Interest and related income 155,425 $ 118,517 $ Less: Interest and related expenses 69,989 46,674 Income from loans and other investments, net 85,436 71,843 Other expenses Management and incentive fees 15,492 12,921 General and administrative expenses 8,708 7,428 Total other expenses 24,200 20,349 Income before income taxes 61,236 51,494 Income tax provision 120 89 Net income 61,116 $ 51,405 $ Net income attributable to non-controlling interests (158) — Net income attributable to Blackstone Mortgage Trust, Inc. 60,958 $ 51,405 $ Per share information (basic and diluted) Weighted-average shares of common stock outstanding 108,397,598 94,993,386 Net income per share of common stock 0.56 $ 0.54 $

Consolidated Statements of Operations

($ in thousands, except per share data)

Blackstone Mortgage Trust 14

Three Months Ended March 31, 2018 December 31, 2017 Net income(a) 60,958 $ 57,891 $ Non-cash compensation expense 6,976 6,221 GE purchase discount accretion adjustment(b) (17) (483) Other items 1,388 874 Core Earnings 69,305 $ 64,503 $ Weighted-average shares outstanding, basic and diluted 108,398 98,811 Core Earnings per share, basic and diluted 0.64 $ 0.65 $

Per Share Calculations

(a) Represents net income attributable to Blackstone Mortgage Trust, Inc. (b) Adjustment in respect of the deferral in Core Earnings of the accretion of a total $9.1 million of purchase discount attributable to a certain pool of GE portfolio loans until repayment in full of the remaining loans in the pool is substantially assured

Core Earnings Reconciliation Book Value per Share Earnings per Share

March 31, 2018 December 31, 2017 Stockholdersʼ equity 2,921,213 $ 2,911,066 $ Shares Class A common stock 108,194 107,884 Deferred stock units 205 197 Total outstanding 108,399 108,081 Book value per share 26.95 $ 26.93 $ Three Months Ended March 31, 2018 December 31, 2017 Net income(a) 60,958 $ 57,891 $ Weighted-average shares outstanding, basic and diluted 108,398 98,811 Earnings per share, basic and diluted 0.56 $ 0.59 $

(Amounts in thousands, except per share data)

Blackstone Mortgage Trust 15

Reconciliation of Net Income to Core Earnings

(a) Represents net income attributable to Blackstone Mortgage Trust, Inc. (b) Adjustment in respect of the deferral in Core Earnings of the accretion of a total $9.1 million of purchase discount attributable to a certain pool of GE portfolio loans until repayment in full of the remaining loans in the pool is substantially assured

(Amounts in thousands, except per share data)

Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Net income(a) 60,958 $ 57,891 $ 57,722 $ 50,613 $ Non-cash compensation expense 6,976 6,221 5,944 5,959 GE purchase discount accretion adjustment(b) (17) (483) (138) (198) Other items 1,388 874 1,610 1,001 Core Earnings 69,305 $ 64,503 $ 65,138 $ 57,375 $ Weighted-average shares outstanding, basic and diluted 108,398 $ 98,811 $ 95,013 $ 95,006 $ Net income per share, basic and diluted 0.56 $ 0.59 $ 0.61 $ 0.53 $ Core Earnings per share, basic and diluted 0.64 $ 0.65 $ 0.69 $ 0.60 $ Three Months Ended

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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, 2018.

Company Supplemental

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 and Europe

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

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

109 professionals

$15 billion AUM

• Senior loans
• $12.1B(a) of assets
• $3.4B equity market

capitalization

• Mezzanine debt
• $8.3B strategy

$120B

• CMBS strategy
• $2.4B equity under

management

Blackstone

BREDS Drawdown BREDS Liquid

Mortgage Trust Funds Funds

Note: 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 $996 million of non-consolidated senior interests

BREP Global 34% BREP Europe 17% BREP Asia 11% BPP Core 25% BREDS 13%

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Superior Real Estate Platform

 Global portfolio drives proprietary insight, leasing advantage and value creation

(a) Represents owned, leased, and joint venture hotel rooms at 100%.

Office

242M

Square Feet One of the largest owners in the U.S. and India

Multifamily

Major investor globally

296k

Units

Logistics

Active buyer/seller globally since 2010

332M

Square Feet

Hotel

176k

Owned Keys(a) One of the largest

• wners in the U.S.

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Superior Real Estate Platform

 450+ people, 12 offices, 3 distinct strategies but one fully integrated real estate platform

Blackstone Advantage

Global Business

• 44% of RE partners have

international experience Scale Capital

• $120 billion RE AUM
• $22 billion raised in 2017

Long View

• Long term capital

commitments

• Never a forced seller

Regular Meetings Single Perspective

1

Global Real Estate Platform

27

Partners average 12 years at Blackstone Weekly

• Partners’ Meeting
• Global ICMs
• Investment Review

Committees Quarterly

• Board Meetings
• Portfolio Asset Review

Annual

• Global Asset Reviews
• Strategy Sessions

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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

 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)

32 professionals

Michael Nagelberg

Managing Director of BREDS (U.S.)

Michael Eglit

Managing Director of BREDS (U.S.)

Katie Keenan

Managing Director of BREDS (U.S.)

Asset Management

11 professionals

Thomas Ruffing

Managing Director of BREDS

Leon Volchyok

Managing Director of BREDS

Capital Markets / IR / Finance

20 professionals

Douglas Armer

Managing Director of BREDS, Head of BXMT Capital Markets

Weston Tucker

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)

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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 and Europe

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

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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

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Sample Transaction: Westin Maui

 $258 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; 75% LTV; $488k per key
• Initial funding of $241 million with $17 million future funding commitment for hotel improvements

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

Airport

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Sample Transaction: Woolworth Building

 $320 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; 68% LTV

Woolworth Building

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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

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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

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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

Resi mREITs Other Comm mREITs Equity REITs

           

Yield

• Sr. Strategy

   

Dividend Yield Senior Loans Floating Rate Low Earnings Volatility