8-K - BXMT - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 11, 2020

Blackstone Mortgage Trust, Inc.

(Exact name of registrant as specified in its charter)

Maryland	1-14788	94-6181186
(State or Other<br> <br>Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer<br> <br>Identification No.)

345 Park Avenue, 42nd Floor

New York, New York 10154

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (212) 655-0220

Not Applicable

(Former Name or Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.01 per share	BXMT	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On February 11, 2020, Blackstone Mortgage Trust, Inc. (the “Company”) issued a press release and detailed presentation announcing its financial results for the fourth quarter and full year ended December 31, 2019. The press release and full detailed presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information contained under Item 2.02 in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and will not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibits
Exhibit<br> <br>No.		Description
---	---	---
	99.1	Press Release of Blackstone Mortgage Trust, Inc. dated February 11, 2020.
	99.2	Presentation of Blackstone Mortgage Trust, Inc. dated February 11, 2020.
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BLACKSTONE MORTGAGE TRUST, INC.
Date: February 11, 2020
	By:	/s/ Anthony F. Marone, Jr.
	Name:	Anthony F. Marone, Jr.
	Title:	Chief Financial Officer

EX-99.1

Exhibit 99.1

LOGO

Blackstone Mortgage Trust Reports

Fourth Quarter and Full Year 2019 Results

New York, February 11, 2020: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its fourth quarter and full year 2019 results. Full year EPS, Core EPS, and dividends paid per share were $2.35, $2.70, and $2.48 respectively.

Stephen D. Plavin, Chief Executive Officer, said, “Strong performance on both sides of the balance sheet drove outstanding 4Q and 2019 results. The $3.0 billion of fourth quarter originations took our total portfolio to a record size of $17.9 billion while we continued to improve the efficiency and structure of our financing. Dividend coverage of 109% from full year Core Earnings demonstrates the quality of our dividend, generated from our large scale, senior lending business.”

Blackstone Mortgage Trust issued a full detailed presentation of its fourth quarter and full year 2019 results, which can be viewed at www.bxmt.com.

Quarterly Investor Call Details

Blackstone Mortgage Trust will host a conference call on Wednesday, February 12, 2020 at 10:00 a.m. ET to discuss fourth quarter and full year 2019 results. The conference call can be accessed by dialing +1 (877) 299-4454 (U.S. domestic) or +1 (617) 597-5447 (international), with the passcode 245-054-61# or by webcast at www.bxmt.com (listen only). For those unable to listen to the live broadcast, a recorded replay will be available on the company’s website or by telephone beginning approximately two hours after the event. The replay call number is +1 (888) 286-8010 (U.S. domestic) or +1 (617) 801-6888 (international), with the passcode 829-145-67#.

About Blackstone Mortgage Trust

Blackstone Mortgage Trust (NYSE:BXMT) is a real estate finance company that originates senior loans collateralized by commercial real estate in North America, Europe, and Australia. Our investment objective is to preserve and protect shareholder capital while producing attractive risk-adjusted returns primarily through dividends generated from current income from our loan portfolio. We are externally managed by BXMT Advisors L.L.C., a subsidiary of Blackstone. Further information is available at www.bxmt.com.

Blackstone Mortgage Trust, Inc.<br> <br>345 Park Avenue<br><br><br>New York, New York 10154<br><br><br>T 212 655 0220

About Blackstone

Blackstone (NYSE:BX) is one of the world’s leading investment firms. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies it invests in, and the communities in which it works. Blackstone does this by using extraordinary people and flexible capital to help companies solve problems. Blackstone’s asset management businesses, with $571 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

Forward-Looking Statements and Other Matters

This release may contain 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’s current views with respect to, among other things, Blackstone Mortgage Trust’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,” “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. Blackstone Mortgage Trust 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, 2019, 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 release and in the filings. Blackstone Mortgage Trust assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances.

We refer to “Core Earnings,” which is a non-GAAP financial measure, in this release. A reconciliation to net income attributable to Blackstone Mortgage Trust, the most directly comparable GAAP measure, is included in our full detailed presentation of fourth quarter and full year 2019 results and is available on our website at www.bxmt.com.

Investor and Public Affairs Contacts

Investor Relations<br><br><br>Blackstone<br> <br>+1 (888) 756-8443<br> <br>BlackstoneShareholderRelations@Blackstone.com	Public Affairs<br><br><br>Blackstone<br> <br>+1 (212) 583-5263<br> <br>PressInquiries@Blackstone.com

EX-99.2

<br> <br>Blackstone Mortgage Trust, Inc.<br> <br>February 11, 2020<br> <br>Fourth Quarter and Full Year 2019 Results<br> <br>Exhibit 99.2
<br> <br>Blackstone Mortgage Trust<br> <br>1<br> <br>$15.8<br> <br>$17.9<br> <br>YE 2018<br> <br>YE 2019<br> <br>BXMT Highlights<br> <br>Information included in this presentation is as of or for the period ended December 31, 2019, unless otherwise indicated.<br><br><br>(a)<br> <br>See Appendix for a definition and reconciliation to GAAP net income.<br> <br>(b)<br> <br>Based on annualized dividend and BXMT closing price as of February 10, 2020.<br><br><br>(c)<br> <br>Reflects ratio of Core Earnings to dividends declared.<br> <br>(d)<br> <br>Reflects weighted average LTV as of the date investments were originated or acquired by BXMT.<br><br><br>(e)<br> <br>Includes $689 million of Non-Consolidated Senior Interests as of December 31, 2019 and investment exposure to the $930 million 2018<br>Single Asset Securitization through an $89 million<br> <br>subordinate<br>risk retention interest.<br> <br>+$2.1bn<br><br><br>($ in billions)<br><br><br>Portfolio Growth<br><br><br>(e)<br><br><br>2019<br><br><br>Dividend<br><br><br>Coverage<br><br><br>(c)<br><br><br>Dividend<br><br><br>Yield<br><br><br>(b)<br><br><br>109%<br><br><br>6.4%<br><br><br>100%<br><br><br>64%<br><br><br>Performing<br><br><br>Loans<br><br><br>Loan-to-Value<br><br><br>(d)(e)<br><br><br>BXMT<br><br><br>generated<br><br><br>4Q<br><br><br>EPS<br><br><br>of<br><br><br>$0.59<br><br><br>and<br><br><br>Core<br><br><br>EPS<br><br><br>(a)<br><br><br>of<br><br><br>$0.68,<br><br><br>reflecting<br><br><br>the<br><br><br>continued<br><br><br>strong<br><br><br>performance<br><br><br>of<br><br><br>its<br><br><br>first<br><br><br>mortgage<br><br><br>origination<br><br><br>business;<br><br><br>2019<br><br><br>full<br><br><br>year<br><br><br>EPS<br><br><br>of<br><br><br>$2.35,<br><br><br>Core<br><br><br>EPS<br><br><br>of<br><br><br>$2.70,<br><br><br>and<br><br><br>dividends<br><br><br>paid<br><br><br>of<br><br><br>$2.48<br><br><br>per<br><br><br>share
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<br> <br>Blackstone Mortgage Trust<br> <br>2<br> <br>Originations<br> <br>Originations<br> <br>4Q<br> <br>originations<br> <br>of<br> <br>$3.0<br> <br>billion<br> <br>across<br> <br>17<br> <br>(b)<br> <br>transactions<br> <br>Originated<br> <br>48<br> <br>(b)<br> <br>loans<br> <br>in<br> <br>2019<br> <br>resulting<br> <br>in<br> <br>volume<br> <br>of<br> <br>$8.6<br> <br>billion,<br> <br>with<br> <br>a<br> <br>weighted<br> <br>average<br> <br>origination<br> <br>LTV<br> <br>(c)<br> <br>of<br> <br>65%;<br> <br>38%<br> <br>of<br> <br>2019<br> <br>originations<br> <br>from<br> <br>Europe<br> <br>Earnings &<br> <br>Dividends<br> <br>Earnings &<br> <br>Dividends<br> <br>4Q<br> <br>EPS<br> <br>of<br> <br>$0.59<br> <br>and<br> <br>Core<br> <br>Earnings<br> <br>(a)<br> <br>per<br> <br>share<br> <br>of<br> <br>$0.68<br> <br>($2.35<br> <br>and<br> <br>$2.70,<br> <br>respectively,<br> <br>for<br> <br>full<br> <br>year<br> <br>2019);<br> <br>109%<br> <br>dividend<br> <br>coverage<br> <br>Book<br> <br>value<br> <br>per<br> <br>share<br> <br>of<br> <br>$27.82,<br> <br>up<br> <br>$0.62<br> <br>in<br> <br>2019;<br> <br>paid<br> <br>$0.62<br> <br>per<br> <br>share<br> <br>dividend<br> <br>Fourth Quarter and Full Year 2019 Results<br> <br>Portfolio<br> <br>Composition<br> <br>Portfolio<br> <br>Composition<br> <br>Capitalization<br> <br>Capitalization<br> <br>Interest Rates<br> <br>Interest Rates<br> <br>Portfolio<br> <br>grew<br> <br>13%<br> <br>in<br> <br>2019<br> <br>to<br> <br>$17.9<br> <br>billion<br> <br>(d)<br> <br>with<br> <br>$2.1<br> <br>billion<br> <br>of<br> <br>net<br> <br>fundings<br> <br>over<br> <br>the<br> <br>year,<br> <br>and<br> <br>$1.4<br> <br>billion<br> <br>in<br> <br>4Q<br> <br>2019<br> <br>100%<br> <br>performing<br> <br>portfolio<br> <br>with<br> <br>a<br> <br>weighted<br> <br>average<br> <br>origination<br> <br>LTV<br> <br>(c)(d)<br> <br>of<br> <br>64%<br> <br>$12.8<br> <br>billion<br> <br>(e)<br> <br>of<br> <br>outstanding<br> <br>asset-level<br> <br>financing<br> <br>on<br> <br>a<br> <br>market<br> <br>leading,<br> <br>match-<br> <br>funded<br> <br>basis;<br> <br>increased<br> <br>capacity<br> <br>by<br> <br>$3.7<br> <br>billion<br> <br>during<br> <br>the<br> <br>year<br> <br>Increased<br> <br>Term<br> <br>Loan<br> <br>B<br> <br>by<br> <br>$250<br> <br>million<br> <br>to<br> <br>$747<br> <br>million<br> <br>while<br> <br>reducing<br> <br>the<br> <br>rate<br> <br>from<br> <br>L+250bps<br> <br>to<br> <br>L+225bps<br> <br>(a)<br> <br>See Appendix for a definition and reconciliation to GAAP net income.<br> <br>(b)<br> <br>Excluding upsizes.<br> <br>(c)<br> <br>Reflects weighted average LTV as of the date investments were originated or acquired by BXMT.<br><br><br>(d)<br> <br>Includes $689 million of Non-Consolidated Senior Interests as of December 31, 2019 and investment exposure to the $930 million 2018<br>Single Asset Securitization through an $89 million<br> <br>subordinate<br>risk retention interest.<br> <br>(e)<br><br><br>Includes $841 million of securitized debt held by third-parties in the $930<br>million 2018 Single Asset Securitization, which is not consolidated on BXMT’s balance sheet.<br> <br>(f)<br> <br>Includes USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR.<br> <br>97%<br> <br>of<br> <br>the<br> <br>portfolio<br> <br>(d)<br> <br>is<br> <br>floating<br> <br>rate;<br> <br>in-place<br> <br>LIBOR<br> <br>(f)<br> <br>floors<br> <br>insulate<br> <br>current<br> <br>portfolio<br> <br>earnings<br> <br>from<br> <br>potential<br> <br>decreases<br> <br>in<br> <br>rates<br> <br>Floating<br> <br>rate<br> <br>assets<br> <br>and<br> <br>matched<br> <br>liabilities<br> <br>support<br> <br>book<br> <br>value<br> <br>and<br> <br>earnings<br> <br>stability
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<br> <br>Blackstone Mortgage Trust<br> <br>3<br> <br>$24.67<br> <br>$27.82<br> <br>Re-IPO<br> <br>2Q '13<br> <br>4Q '19<br> <br>$2.48<br> <br>$0.22<br> <br>Earnings & Dividends<br> <br>Earnings & Dividends<br> <br>4Q<br> <br>GAAP<br> <br>EPS<br> <br>of<br> <br>$0.59<br> <br>and<br> <br>Core<br> <br>Earnings<br> <br>(a)<br> <br>of<br> <br>$0.68<br> <br>per<br> <br>share,<br> <br>$0.62<br> <br>per<br> <br>share<br> <br>dividend<br> <br>equates<br> <br>to<br> <br>a<br> <br>6.4%<br> <br>dividend<br> <br>yield<br> <br>(b)<br> <br>BXMT<br> <br>has<br> <br>a<br> <br>consistently<br> <br>well-covered<br> <br>dividend,<br> <br>with<br> <br>retained<br> <br>excess<br> <br>earnings<br> <br>resulting<br> <br>in<br> <br>book<br> <br>value<br> <br>growth<br> <br>(a)<br> <br>See Appendix for a definition and reconciliation to GAAP net income.<br> <br>(b)<br> <br>Based on annualized dividend and BXMT closing price as of February 10, 2020.<br><br><br>(c)<br> <br>2019 GAAP EPS was $2.35; retained Core Earnings refers to the amount of Core Earnings in excess of dividends paid for the periods<br>presented.<br> <br>+$3.15<br><br><br>Dividends Paid<br><br><br>Retained<br><br><br>Core Earnings<br><br><br>Book Value Per Share Growth<br><br><br>2019<br><br><br>Core<br><br><br>Earnings<br><br><br>Per<br><br><br>Share<br><br><br>(c)<br><br><br>109%<br><br><br>2019 Dividend Coverage
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<br> <br>Blackstone Mortgage Trust<br> <br>4<br> <br>$9.8<br> <br>$11.1<br> <br>$15.8<br> <br>$17.9<br> <br>$139<br> <br>$142<br> <br>$246<br> <br>$232<br> <br>2016<br> <br>2017<br> <br>2018<br> <br>2019<br> <br>Originations<br> <br>Originations<br> <br>Origination<br> <br>volume<br> <br>of<br> <br>$3.0<br> <br>billion<br> <br>in<br> <br>4Q<br> <br>and<br> <br>$8.6<br> <br>billion<br> <br>in<br> <br>2019,<br> <br>while<br> <br>maintaining<br> <br>a<br> <br>consistent<br> <br>credit<br> <br>profile<br> <br>Increase<br> <br>in<br> <br>scale<br> <br>of<br> <br>originations<br> <br>has<br> <br>yielded<br> <br>consistent<br> <br>portfolio<br> <br>growth<br> <br>($ in billions, except avg. loan size)<br> <br>(a)<br> <br>Includes<br> <br>non-consolidated<br> <br>senior<br> <br>interests<br> <br>and<br> <br>investment<br> <br>exposure<br> <br>to<br> <br>the<br> <br>2018<br> <br>Single<br> <br>Asset<br> <br>Securitization<br> <br>through<br> <br>a<br> <br>subordinate<br> <br>risk<br> <br>retention<br> <br>interest.<br> <br>(b)<br> <br>Excludes upsizes and loans originated in the Walker & Dunlop joint venture.<br><br><br>Portfolio Size<br><br><br>Average Originated Loan Size<br><br><br>($mm)<br><br><br>(b)<br><br><br>Total<br><br><br>Investment<br><br><br>Portfolio<br><br><br>(a)<br><br><br>$8.6B<br><br><br>2019 Originations<br><br><br>4Q ‘19 Originations<br><br><br>$3.0B
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<br> <br>Blackstone Mortgage Trust<br> <br>5<br> <br>Portfolio Composition<br> <br>$17.9<br> <br>billion<br> <br>portfolio<br> <br>(a)<br> <br>comprising<br> <br>129<br> <br>assets<br> <br>secured<br> <br>by<br> <br>institutional<br> <br>quality<br> <br>real<br> <br>estate,<br> <br>with<br> <br>74%<br> <br>in<br> <br>gateway<br> <br>markets<br> <br>High<br> <br>quality<br> <br>100%<br> <br>performing<br> <br>portfolio<br> <br>with<br> <br>low<br> <br>weighted<br> <br>average<br> <br>LTV<br> <br>(a)(b)<br> <br>of<br> <br>64%<br> <br>(a)<br> <br>Includes $689 million of Non-Consolidated Senior Interests as of December 31, 2019 and investment exposure to the $930 million 2018<br>Single Asset Securitization through an $89 million<br> <br>subordinate<br>risk retention interest.<br> <br>(b)<br><br><br>Reflects weighted average LTV as of the date investments were originated or<br>acquired by BXMT.<br> <br>Major<br><br><br>Market<br><br><br>Focus<br><br><br>(a)<br><br><br>Collateral<br><br><br>Diversification<br><br><br>(a)<br><br><br>Condo<br><br><br>Self-Storage<br><br><br>Retail<br><br><br>Industrial<br><br><br>Office<br><br><br>Hotel<br><br><br>Other<br><br><br>Multi<br><br><br>$17.9B<br><br><br>portfolio<br><br><br>AU<br> <br>2%<br> <br>ES<br> <br>7%<br> <br>2%<br> <br>DEU<br> <br>U.K.<br> <br>12%<br> <br>IE<br> <br>7%<br> <br>1%<br> <br>IT<br> <br>IL<br> <br>5%<br> <br>OH<br> <br>1%<br> <br>MN<br> <br>1%<br> <br>NY<br> <br>22%<br> <br>BE<br> <br>FL<br> <br>4%<br> <br>GA<br> <br>3%<br> <br>DC<br> <br>2%<br> <br>TN<br> <br>1%<br> <br>1%<br> <br>2%<br> <br>NV<br> <br>TX<br> <br>CO<br> <br>1%<br> <br>1%<br> <br>AZ<br> <br>CA<br> <br>17%<br> <br>HI<br> <br>States that comprise less than 1% of total loan portfolio<br> <br>3%<br> <br>VA<br> <br>5%<br> <br>58%<br> <br>18%<br> <br>9%<br> <br>3%<br> <br>2%<br> <br>2%<br> <br>1%<br> <br>7%
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<br> <br>Blackstone Mortgage Trust<br> <br>6<br> <br>Capitalization<br> <br>Increased<br> <br>Term<br> <br>Loan<br> <br>B<br> <br>by<br> <br>$250<br> <br>million<br> <br>to<br> <br>$747<br> <br>million<br> <br>while<br> <br>reducing<br> <br>the<br> <br>rate<br> <br>from<br> <br>L+250bps<br> <br>to<br> <br>L+225bps<br> <br>$12.8<br> <br>billion<br> <br>(a)<br> <br>of<br> <br>outstanding<br> <br>asset-level<br> <br>financing<br> <br>on<br> <br>a<br> <br>market<br> <br>leading,<br> <br>match-funded<br> <br>basis<br> <br>(a)<br> <br>Includes $841 million of securitized debt held by third-parties in the $930 million 2018 Single Asset Securitization, which is not<br>consolidated on BXMT’s balance sheet.<br> <br>(b)<br><br><br>Includes $331 million of asset specific financings as of December 31,<br>2019.<br> <br>(c)<br><br><br>Includes $1.2 billion of consolidated securitized debt obligations as well as<br>$841 million of securitized debt held by third-parties in the $930 million 2018 Single Asset Securitization, which is not<br> <br>consolidated on BXMT’s balance sheet. Refer to our consolidated financial statements for further discussion of the subordinated risk<br>retention interest related to the 2018 Single Asset<br><br><br>Securitization.<br><br><br>(d)<br> <br>Represents $689 million of Non-Consolidated Senior Interests, which result from non-recourse sales of senior loan interests in<br>loans BXMT originates. BXMT’s net investments in these loans are<br> <br>reflected in the form of mezzanine or other subordinate loans on BXMT’s balance sheet.<br><br><br>(e)<br> <br>Represents (i) total outstanding secured debt agreements, secured term loans, and convertible notes, less cash, to (ii) total<br>equity.<br> <br>Credit<br><br><br>Facilities<br><br><br>(b)<br><br><br>14 Credit Facilities<br><br><br>Corporate Debt<br><br><br>Term Loan and Convertible Notes<br><br><br>Corporate Obligations<br><br><br>Senior Loan<br><br><br>Interests<br><br><br>(d)<br><br><br>$10.1<br><br><br>$1.4<br><br><br>$0.7<br><br><br>$11.5<br><br><br>Securitized<br><br><br>Debt<br><br><br>(c)<br><br><br>$2.0<br><br><br>CLO and Single Asset Securitizations<br><br><br>3.0x<br><br><br>Debt-to-Equity Ratio<br><br><br>(e)<br><br><br>Senior Syndications<br><br><br>Financing<br><br><br>(Outstanding Balance)<br><br><br>($ in billions)
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<br> <br>Blackstone Mortgage Trust<br> <br>7<br> <br>-2.00%<br> <br>-1.50%<br> <br>-1.00%<br> <br>-0.50%<br> <br>0.00%<br> <br>0.50%<br> <br>1.00%<br> <br>1.50%<br> <br>2.00%<br> <br>3%<br> <br>97%<br> <br>Interest Rates<br> <br>97%<br> <br>of<br> <br>the<br> <br>portfolio<br> <br>(a)<br> <br>is<br> <br>floating<br> <br>rate;<br> <br>in-place<br> <br>LIBOR<br> <br>(b)<br> <br>floors<br> <br>insulate<br> <br>current<br> <br>portfolio<br> <br>earnings<br> <br>from<br> <br>potential<br> <br>decreases<br> <br>in<br> <br>rates<br> <br>A<br> <br>1.0%<br> <br>increase<br> <br>or<br> <br>decrease<br> <br>in<br> <br>USD<br> <br>LIBOR<br> <br>would<br> <br>increase<br> <br>earnings<br> <br>per<br> <br>share<br> <br>by<br> <br>$0.03<br> <br>per<br> <br>quarter<br> <br>(c)<br> <br>(a)<br> <br>Includes $689 million of Non-Consolidated Senior Interests as of December 31, 2019 and investment exposure to the $930 million 2018<br>Single Asset Securitization through an $89 million<br> <br>subordinate<br>risk retention interest.<br> <br>(b)<br><br><br>Includes USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR.<br><br><br>(c)<br> <br>Changes in interest rates and credit spreads may affect our net interest income from loans and other investments. Reflects impact on net<br>income, net of incentive fees. See Appendix for<br> <br>important<br>disclosures.<br> <br>Earnings<br><br><br>Sensitivity<br><br><br>to<br><br><br>USD<br><br><br>LIBOR<br><br><br>(c)<br><br><br>(Quarterly Earnings per Share)<br><br><br>Portfolio<br><br><br>Fixed<br><br><br>vs.<br><br><br>Floating<br><br><br>(a)<br><br><br>(% of Total Portfolio Exposure)<br><br><br>Floating<br><br><br>Fixed<br><br><br>$0.08<br><br><br>$0.06<br><br><br>$0.03<br><br><br>$0.00<br><br><br>$0.00<br><br><br>$0.01<br><br><br>$0.03<br><br><br>$0.05<br><br><br>$0.07
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<br> <br>Appendix
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<br> <br>Blackstone Mortgage Trust<br> <br>9<br> <br>4Q '18 Loans<br> <br>Outstanding<br> <br>Fundings<br> <br>Repayments<br> <br>4Q '19 Loans<br> <br>Outstanding<br> <br>Fourth Quarter and Full Year 2019 Operating Results & Net Fundings<br> <br>Net Fundings<br> <br>(b)<br> <br>($ in billions)<br> <br>Operating Results<br> <br>($ in millions)<br> <br>(a)<br> <br>Primarily represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials<br>between the applicable base rate for our foreign currency<br><br><br>investments and USD LIBOR. These forward contracts effectively convert the rate<br>exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. These amounts are<br> <br>not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial<br>statements.<br> <br>(b)<br><br><br>Excludes the impact of changes in foreign currency rates and related hedges for<br>non-USD investments.<br> <br>(c)<br><br><br>Includes $406 million of Non-Consolidated Senior Interests and investment<br>exposure to the $1.0 billion 2018 Single Asset Securitization through a $97 million subordinate risk retention interest.<br> <br>(d)<br> <br>Includes $689 million of Non-Consolidated Senior Interests and investment exposure to the $930 million 2018 Single Asset<br>Securitization through an $89 million subordinate risk retention interest.<br> <br>GAAP Net<br> <br>Income<br> <br>Adjustments<br> <br>Core<br> <br>Earnings<br> <br>Interest Income<br> <br>220.7<br> <br>$<br> <br>$ —<br> <br><br> <br>220.7<br> <br>$<br> <br>Interest Expense<br> <br>(111.0)<br> <br><br> <br>—<br> <br><br><br><br>(111.0)<br><br><br><br><br><br>Management and<br><br><br>Incentive Fees<br><br><br>(20.2)<br><br><br><br><br><br>—<br><br><br><br> <br>(20.2)<br><br><br><br><br><br>General and Administrative<br><br><br>Expenses and Taxes<br><br><br>(2.5)<br><br><br><br><br><br>—<br><br><br><br> <br>(2.5)<br><br><br><br><br><br>Non-Cash<br><br><br>Compensation<br><br><br>(7.4)<br><br><br><br><br><br>7.4<br><br><br><br> <br>—<br><br><br><br> <br>Hedging and Foreign<br><br><br>Currency Income, net<br><br><br>(a)<br><br><br>—<br><br><br><br> <br>4.8<br><br><br><br> <br>4.8<br><br><br><br> <br>Net Income Attributable to<br><br><br>Non-controlling Interests<br><br><br>(0.7)<br><br><br><br><br><br>—<br><br><br><br> <br>(0.7)<br><br><br><br><br><br>Total<br><br><br>78.9<br><br><br>$<br><br><br>12.2<br><br><br>$<br><br><br>91.1<br><br><br>$<br><br><br>$0.68<br><br><br>Core Earnings per Share<br><br><br>$0.59<br><br><br>Net Income per Share<br><br><br>$15.8<br><br><br>($4.9)<br><br><br>$7.0<br><br><br>$17.9<br><br><br>(c)<br><br><br>(d)
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<br> <br>Blackstone Mortgage Trust<br> <br>10<br> <br>(a)<br> <br>Date loan was originated or acquired by us, and the LTV as of such date. Origination dates are subsequently updated to reflect material<br>loan modifications.<br> <br>(b)<br><br><br>In certain instances, loans are financed through the non-recourse sale of a<br>senior loan interest that is not included in the consolidated financial statements. As of<br> <br>December 31, 2019, four loans in the portfolio have been financed with an aggregate $689 million of Non-Consolidated Senior Interests,<br>which are included in the table above.<br> <br>(c)<br><br><br>Portfolio excludes our $89 million subordinate risk retention interest in the<br>$930 million 2018 Single Asset Securitization.<br> <br>(d)<br><br><br>Maximum maturity assumes all extension options are exercised; however, floating<br>rate loans generally may be repaid prior to their final maturity without penalty.<br> <br>(e)<br> <br>Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for weighted-average<br>calculation.<br> <br>Portfolio Details<br><br><br>($ in millions)<br><br><br>Origination<br> <br>Total<br> <br>Principal<br> <br>Net Book<br> <br>Maximum<br> <br>Property<br> <br>Loan Per<br> <br>Origination<br> <br>Loan Type<br> <br>Date<br> <br>(a)<br> <br>Loan<br> <br>(b)(c)<br> <br>Balance<br> <br>(c)<br> <br>Value<br> <br>Maturity<br> <br>(d)<br> <br>Location<br> <br>Type<br> <br>SQFT / Unit / Key<br> <br>LTV<br> <br>(a)<br> <br>Loan 1<br> <br>Senior loan<br> <br>8/14/2019<br> <br>$ 1,331<br> <br>$ 1,331<br> <br>$ 1,318<br> <br>L + 2.50<br> <br>%<br> <br>L + 2.85<br> <br>%<br> <br>12/23/2024<br> <br>Dublin - IE<br> <br>Office<br> <br>$459 / sqft<br> <br>74 %<br> <br>Loan 2<br> <br>Senior loan<br> <br>3/22/2018<br> <br>1,009<br> <br>1,009<br> <br>1,005<br> <br>L + 3.15<br> <br>%<br> <br>L + 3.37<br> <br>%<br> <br>3/15/2023<br> <br>Diversified - Spain<br> <br>Mixed-Use<br> <br>n/a<br> <br>71 %<br> <br>Loan 3<br> <br>Senior loan<br> <br>5/11/2017<br> <br>753<br> <br>712<br> <br>710<br> <br>L + 3.40<br> <br>%<br> <br>L + 3.60<br> <br>%<br> <br>6/10/2023<br> <br>Washington DC<br> <br>Office<br> <br>$348 / sqft<br> <br>62 %<br> <br>Loan 4<br> <br>Senior loan<br> <br>11/25/2019<br> <br>724<br> <br>586<br> <br>585<br> <br>L + 2.30<br> <br>%<br> <br>L + 2.75<br> <br>%<br> <br>12/9/2024<br> <br>New York<br> <br>Office<br> <br>$840 / sqft<br> <br>65 %<br> <br>Loan 5<br> <br>Senior loan<br> <br>(c)<br> <br>8/6/2015<br> <br>489<br> <br>489<br> <br>88<br> <br>5.74<br> <br>%<br> <br>5.77<br> <br>%<br> <br>10/29/2022<br> <br>Diversified - EUR<br> <br>Other<br> <br>n/a<br> <br>71 %<br> <br>Loan 6<br> <br>Senior loan<br> <br>4/11/2018<br> <br>355<br> <br>345<br> <br>344<br> <br>L + 2.85<br> <br>%<br> <br>L + 3.02<br> <br>%<br> <br>5/1/2023<br> <br>New York<br> <br>Office<br> <br>$437 / sqft<br> <br>71 %<br> <br>Loan 7<br> <br>Senior loan<br> <br>8/22/2018<br> <br>363<br> <br>338<br> <br>336<br> <br>L + 3.15<br> <br>%<br> <br>L + 3.49<br> <br>%<br> <br>8/9/2023<br> <br>Maui<br> <br>Hotel<br> <br>$444,674 / key<br> <br>61 %<br> <br>Loan 8<br> <br>Senior loan<br> <br>10/23/2018<br> <br>352<br> <br>334<br> <br>333<br> <br>L + 3.40<br> <br>%<br> <br>L + 3.72<br> <br>%<br> <br>10/23/2021<br> <br>New York<br> <br>Mixed-Use<br> <br>$565 / sqft<br> <br>65 %<br> <br>Loan 9<br> <br>Senior loan<br> <br>1/11/2019<br> <br>318<br> <br>318<br> <br>314<br> <br>L + 4.35<br> <br>%<br> <br>L + 4.70<br> <br>%<br> <br>1/11/2026<br> <br>Diversified - UK<br> <br>Other<br> <br>$314 / sqft<br> <br>66 %<br> <br>Loan 10<br> <br>Senior loan<br> <br>11/30/2018<br> <br>293<br> <br>279<br> <br>277<br> <br>L + 2.85<br> <br>%<br> <br>L + 3.20<br> <br>%<br> <br>12/9/2023<br> <br>New York<br> <br>Hotel<br> <br>$228,186 / key<br> <br>73 %<br> <br>Loan 11<br> <br>Senior loan<br> <br>11/30/2018<br> <br>254<br> <br>248<br> <br>246<br> <br>L + 2.80<br> <br>%<br> <br>L + 3.17<br> <br>%<br> <br>12/9/2023<br> <br>San Francisco<br> <br>Hotel<br> <br>$363,499 / key<br> <br>73 %<br> <br>Loan 12<br> <br>Senior loan<br> <br>7/31/2018<br> <br>285<br> <br>246<br> <br>244<br> <br>L + 3.10<br> <br>%<br> <br>L + 3.54<br> <br>%<br> <br>8/9/2022<br> <br>San Francisco<br> <br>Office<br> <br>$617 / sqft<br> <br>50 %<br> <br>Loan 13<br> <br>Senior loan<br> <br>12/11/2018<br> <br>310<br> <br>245<br> <br>243<br> <br>L + 2.55<br> <br>%<br> <br>L + 2.96<br> <br>%<br> <br>12/9/2023<br> <br>Chicago<br> <br>Office<br> <br>$206 / sqft<br> <br>78 %<br> <br>Loan 14<br> <br>Senior loan<br> <br>5/9/2018<br> <br>243<br> <br>233<br> <br>232<br> <br>L + 2.60<br> <br>%<br> <br>L + 3.03<br> <br>%<br> <br>5/9/2023<br> <br>New York<br> <br>Industrial<br> <br>$66 / sqft<br> <br>70 %<br> <br>Loan 15<br> <br>Senior loan<br> <br>9/23/2019<br> <br>280<br> <br>229<br> <br>227<br> <br>L + 3.00<br> <br>%<br> <br>L + 3.22<br> <br>%<br> <br>11/15/2024<br> <br>Diversified - Spain<br> <br>Hotel<br> <br>$228,228 / key<br> <br>62 %<br> <br>Loans 16 - 128<br> <br>Senior loans<br> <br>Various<br> <br>14,270<br> <br>10,026<br> <br>9,663<br> <br>L + 3.37<br> <br>%<br> <br>(e)<br> <br>L + 3.73<br> <br>%<br> <br>(e)<br> <br>Various<br> <br>Various<br> <br>Various<br> <br>Various<br> <br>62 %<br> <br>Total/Wtd. avg.<br> <br>$ 21,628<br> <br>$ 16,966<br> <br>$ 16,165<br> <br>L + 3.25<br> <br>%<br> <br>(e)<br> <br>L + 3.59<br> <br>%<br> <br>(e)<br> <br>3.8 yrs<br> <br>65 %<br> <br>Cash<br> <br>All-in<br> <br>Coupon<br> <br>Yield
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<br> <br>Blackstone Mortgage Trust<br> <br>11<br> <br>Consolidated Balance Sheets<br> <br>($ in thousands, except per share data)<br> <br>December 31, 2019<br> <br>December 31, 2018<br> <br>Assets<br> <br>Cash and cash equivalents<br> <br>150,090<br> <br>$<br><br><br>105,662<br> <br>$<br><br><br>Loans receivable, net<br><br><br>16,164,801<br> <br><br><br><br>14,191,200<br> <br><br><br><br>Other assets<br><br><br>236,980<br> <br><br><br><br>170,513<br> <br><br><br><br>Total assets<br> <br>16,551,871<br> <br>$<br><br><br>14,467,375<br> <br>$<br><br><br>Liabilities and equity<br><br><br>Secured debt agreements, net<br><br><br>10,054,930<br> <br>$<br><br><br>8,974,756<br> <br>$<br><br><br>Loan participations sold, net<br><br><br>—<br> <br><br> <br>94,418<br><br><br><br><br><br>Securitized debt obligations, net<br><br><br>1,187,084<br> <br><br><br><br>1,285,471<br> <br><br><br><br>Secured term loans, net<br><br><br>736,142<br> <br><br><br><br>—<br> <br><br> <br>Convertible notes, net<br><br><br>613,071<br> <br><br><br><br>609,911<br> <br><br><br><br>Other liabilities<br><br><br>175,963<br> <br><br><br><br>128,212<br> <br><br><br><br>Total liabilities<br><br><br>12,767,190<br> <br><br><br><br>11,092,768<br> <br><br><br><br>Commitments and contingencies<br><br><br>—<br> <br><br> <br>—<br><br><br><br> <br>Equity<br> <br>Class A common stock, $0.01 par value<br> <br>1,350<br> <br><br> <br>1,234<br><br><br><br><br><br>Additional paid-in capital<br><br><br>4,370,014<br> <br><br><br><br>3,966,540<br> <br><br><br><br>Accumulated other comprehensive loss<br><br><br>(16,233)<br> <br><br> <br>(34,222)<br><br><br><br> <br>Accumulated<br>deficit<br> <br>(592,548)<br><br><br><br> <br>(569,428)<br><br><br><br> <br>Total Blackstone Mortgage Trust,<br>Inc. stockholders' equity<br> <br>3,762,583<br><br><br><br> <br>3,364,124<br><br><br><br> <br>Non-controlling interests<br><br><br>22,098<br> <br><br> <br>10,483<br><br><br><br> <br>Total<br>equity<br> <br>3,784,681<br><br><br><br> <br>3,374,607<br><br><br><br> <br>Total liabilities and equity<br><br><br>16,551,871<br> <br>$<br><br><br>14,467,375<br> <br>$
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<br> <br>Blackstone Mortgage Trust<br> <br>12<br> <br>Consolidated Statements of Operations<br> <br>($ in thousands, except per share data)<br> <br>Three Months Ended December 31,<br> <br>Year Ended December 31,<br> <br>2019<br> <br>2018<br> <br>2019<br> <br>2018<br> <br>Income from loans and other investments<br> <br>Interest and related income<br> <br>220,678<br> <br>$<br> <br>206,098<br> <br>$<br> <br>882,679<br> <br>$<br> <br>756,109<br> <br>$<br> <br>Less: Interest and related expenses<br> <br>110,967<br> <br><br><br><br>103,948<br> <br><br><br><br>458,503<br> <br><br><br><br>359,625<br> <br><br><br><br>Income from loans and other investments, net<br><br><br>109,711<br> <br><br><br><br>102,150<br> <br><br><br><br>424,176<br> <br><br><br><br>396,484<br> <br><br><br><br>Other expenses<br><br><br>Management and incentive fees<br><br><br>20,159<br> <br><br><br><br>18,586<br> <br><br><br><br>78,435<br> <br><br><br><br>74,834<br> <br><br><br><br>General and administrative expenses<br><br><br>9,904<br> <br><br><br><br>9,632<br> <br><br><br><br>38,854<br> <br><br><br><br>35,529<br> <br><br><br><br>Total other expenses<br><br><br>30,063<br> <br><br><br><br>28,218<br> <br><br><br><br>117,289<br> <br><br><br><br>110,363<br> <br><br><br><br>Income before income taxes<br><br><br>79,648<br> <br><br><br><br>73,932<br> <br><br><br><br>306,887<br> <br><br><br><br>286,121<br> <br><br><br><br>Income tax provision (benefit)<br><br><br>67<br> <br><br> <br>36<br><br><br><br><br><br>(506)<br> <br><br><br><br>308<br> <br><br><br><br>Net income<br> <br>79,581<br> <br>$<br><br><br>73,896<br> <br>$<br><br><br>307,393<br> <br>$<br> <br>285,813<br> <br>$<br> <br>Net income attributable to non-controlling interests<br> <br>(650)<br> <br><br><br><br>(253)<br> <br><br><br><br>(1,826)<br> <br><br><br><br>(735)<br> <br><br><br><br>Net income attributable to Blackstone Mortgage Trust, Inc.<br><br><br>78,931<br> <br>$<br><br><br>73,643<br> <br>$<br><br><br>305,567<br> <br>$<br> <br>285,078<br> <br>$<br> <br>Per share information (basic and diluted)<br> <br>Weighted-average shares of common stock outstanding<br> <br>134,832,323<br> <br><br> <br>121,588,404<br> <br><br> <br>130,085,398<br> <br><br> <br>113,857,238<br> <br><br> <br>Net income per share of common stock<br> <br>0.59<br> <br>$<br><br><br>0.61<br> <br>$<br><br><br>2.35<br> <br>$<br><br><br>2.50<br> <br>$
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<br> <br>Blackstone Mortgage Trust<br> <br>13<br> <br>Per Share Calculations<br> <br>(Amounts in thousands, except per share data)<br> <br>Three Months Ended<br> <br>December 31, 2019<br> <br>September 30, 2019<br> <br>Net income<br> <br>(a)<br> <br>78,931<br> <br>$<br><br><br>74,897<br> <br>$<br> <br>Weighted-average shares outstanding, basic and<br>diluted<br> <br>134,832<br><br><br><br> <br>134,537<br><br><br><br> <br>Earnings per<br>share, basic and diluted<br> <br>0.59<br><br><br>$<br><br><br>0.56<br> <br>$<br> <br>Three Months Ended<br><br><br>December 31, 2019<br><br><br>September 30, 2019<br><br><br>Stockholders' equity<br><br><br>3,762,583<br> <br>$<br><br><br>3,742,793<br> <br>$<br><br><br>Shares<br> <br>Class A common stock<br> <br>135,004<br> <br><br><br><br>134,289<br> <br><br> <br>Deferred stock units<br><br><br>260<br> <br><br> <br>252<br><br><br><br> <br>Total outstanding<br> <br>135,264<br> <br><br><br><br>134,541<br> <br><br> <br>Book value per share<br><br><br>27.82<br> <br>$<br> <br>27.82<br><br><br>$<br> <br>Core Earnings<br> <br>Reconciliation<br> <br>Book Value<br> <br>per Share<br> <br>Earnings<br> <br>per Share<br> <br>(a)<br> <br>Represents net income attributable to Blackstone Mortgage Trust, Inc.<br> <br>(b)<br> <br>Primarily<br> <br>represents<br> <br>the<br> <br>forward<br> <br>points<br> <br>earned<br> <br>on<br> <br>our<br> <br>foreign<br> <br>currency<br> <br>forward<br> <br>contracts,<br> <br>which<br> <br>reflect<br> <br>the<br> <br>interest<br> <br>rate<br> <br>differentials<br> <br>between<br> <br>the<br> <br>applicable<br> <br>base<br> <br>rate<br> <br>for<br> <br>our<br> <br>foreign<br> <br>currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional<br>interest income earned in U.S. dollar terms. These<br> <br>amounts are not<br>included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.<br> <br>Three Months Ended<br> <br>December 31, 2019<br> <br>September 30, 2019<br> <br>Net income<br> <br>(a)<br> <br>78,931<br> <br>$<br><br><br>74,897<br> <br>$<br> <br>Non-cash compensation expense<br><br><br>7,380<br> <br>7,754<br> <br>Hedging<br> <br>and<br> <br>foreign<br> <br>currency<br> <br>income,<br> <br>net<br> <br>(b)<br> <br>4,767<br> <br>2,898<br> <br>Other items<br> <br>68<br> <br>78<br> <br>Core Earnings<br> <br>91,146<br> <br>$<br><br><br>85,627<br> <br>$<br> <br>Weighted-average shares outstanding, basic and<br>diluted<br> <br>134,832<br><br><br>134,537<br> <br>Core Earnings per share, basic and diluted<br> <br>0.68<br> <br>$<br> <br>0.64<br><br><br>$
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<br> <br>Blackstone Mortgage Trust<br> <br>14<br> <br>Reconciliation of Net Income to Core Earnings<br> <br>(Amounts in thousands, except per share data)<br> <br>Year Ended<br> <br>Dec 31,<br> <br>2019<br> <br>Dec 31,<br> <br>2019<br> <br>Sept 30,<br> <br>2019<br> <br>Jun 30,<br> <br>2019<br> <br>Mar 31,<br> <br>2019<br> <br>Net income<br> <br>(a)<br> <br>305,567<br> <br>$<br> <br>78,931<br> <br>$<br> <br>74,897<br> <br>$<br> <br>75,174<br> <br>$<br> <br>76,565<br> <br>$<br> <br>Non-cash compensation expense<br> <br>30,656<br> <br><br><br><br>7,380<br> <br><br><br><br>7,754<br> <br><br><br><br>7,754<br> <br><br><br><br>7,768<br> <br><br><br><br>Hedging and foreign currency income, net<br><br><br>(b)<br> <br>14,172<br> <br><br><br><br>4,767<br> <br><br><br><br>2,898<br> <br><br><br><br>3,237<br> <br><br><br><br>3,271<br> <br><br><br><br>Other items<br> <br>300<br> <br><br><br><br>68<br> <br><br> <br>78<br><br><br><br><br><br>58<br> <br><br><br><br>95<br> <br><br><br><br>Core Earnings<br><br><br>350,695<br> <br>$<br> <br>91,146<br> <br>$<br> <br>85,627<br> <br>$<br> <br>86,223<br> <br>$<br> <br>87,699<br> <br>$<br> <br>Weighted-average shares outstanding, basic and diluted<br> <br>130,085<br> <br><br> <br>134,832<br> <br><br> <br>134,537<br> <br><br> <br>126,475<br> <br><br> <br>124,333<br> <br><br> <br>Net income per share, basic and diluted<br> <br>2.35<br> <br>$<br><br><br>0.59<br> <br>$<br><br><br>0.56<br> <br>$<br><br><br>0.59<br> <br>$<br><br><br>0.62<br> <br>$<br><br><br>Core Earnings per share, basic and diluted<br><br><br>2.70<br> <br>$<br><br><br>0.68<br> <br>$<br><br><br>0.64<br> <br>$<br><br><br>0.68<br> <br>$<br><br><br>0.71<br> <br>$<br><br><br>Three Months Ended,<br><br><br>(a)<br> <br>Represents net income attributable to Blackstone Mortgage Trust, Inc.<br> <br>(b)<br> <br>Primarily represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials<br>between the applicable base rate for our foreign<br> <br>currency<br>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<br> <br>amounts are not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial<br>statements.
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<br> <br>Blackstone Mortgage Trust<br> <br>15<br> <br>Definitions<br> <br>Core<br> <br>Earnings:<br> <br>Blackstone<br> <br>Mortgage<br> <br>Trust,<br> <br>Inc.<br> <br>(“BXMT”)<br> <br>discloses<br> <br>Core<br> <br>Earnings<br> <br>in<br> <br>this<br> <br>presentation.<br> <br>Core<br> <br>Earnings<br> <br>is<br> <br>a<br> <br>financial<br> <br>measure<br> <br>that<br> <br>is<br> <br>calculated<br> <br>and<br> <br>presented<br> <br>on<br> <br>the<br> <br>basis<br> <br>of<br> <br>methodologies<br> <br>other<br> <br>than<br> <br>in<br> <br>accordance<br> <br>with<br> <br>generally<br> <br>accepted<br> <br>accounting<br> <br>principles<br> <br>in<br> <br>the<br> <br>United<br> <br>States<br> <br>of<br> <br>America<br> <br>(“GAAP”).<br> <br>Core<br> <br>Earnings<br> <br>is<br> <br>an<br> <br>adjusted<br> <br>measure<br> <br>that<br> <br>helps<br> <br>BXMT<br> <br>evaluate<br> <br>its<br> <br>performance<br> <br>excluding<br> <br>the<br> <br>effects<br> <br>of<br> <br>certain<br> <br>transactions<br> <br>and<br> <br>GAAP<br> <br>adjustments<br> <br>that<br> <br>it<br> <br>believes<br> <br>are<br> <br>not<br> <br>necessarily<br> <br>indicative<br> <br>of<br> <br>its<br> <br>current<br> <br>loan<br> <br>origination<br> <br>portfolio<br> <br>and<br> <br>operations.<br> <br>Although<br> <br>according<br> <br>to<br> <br>its<br> <br>management<br> <br>agreement<br> <br>BXMT<br> <br>calculates<br> <br>the<br> <br>incentive<br> <br>and<br> <br>base<br> <br>management<br> <br>fees<br> <br>due<br> <br>to<br> <br>its<br> <br>Manager<br> <br>using<br> <br>Core<br> <br>Earnings<br> <br>before<br> <br>incentive<br> <br>fees<br> <br>expense,<br> <br>BXMT<br> <br>reports<br> <br>Core<br> <br>Earnings<br> <br>after<br> <br>incentive<br> <br>fees<br> <br>expense,<br> <br>as<br> <br>BXMT<br> <br>believes<br> <br>this<br> <br>is<br> <br>a<br> <br>more<br> <br>meaningful<br> <br>presentation<br> <br>of<br> <br>the<br> <br>economic<br> <br>performance<br> <br>of<br> <br>its<br> <br>class<br> <br>A<br> <br>common<br> <br>stock.<br> <br>Core<br> <br>Earnings<br> <br>is<br> <br>defined<br> <br>as<br> <br>GAAP<br> <br>net<br> <br>income<br> <br>(loss),<br> <br>including<br> <br>realized<br> <br>gains<br> <br>and<br> <br>losses<br> <br>not<br> <br>otherwise<br> <br>included<br> <br>in<br> <br>GAAP<br> <br>net<br> <br>income<br> <br>(loss),<br> <br>and<br> <br>excluding<br> <br>(i)<br> <br>non-cash<br> <br>equity<br> <br>compensation<br> <br>expense,<br> <br>(ii)<br> <br>depreciation<br> <br>and<br> <br>amortization,<br> <br>(iii)<br> <br>unrealized<br> <br>gains<br> <br>(losses),<br> <br>(iv)<br> <br>net<br> <br>income<br> <br>(loss)<br> <br>attributable<br> <br>to<br> <br>our<br> <br>legacy<br> <br>portfolio,<br> <br>and<br> <br>(v)<br> <br>certain<br> <br>non-cash<br> <br>items.<br> <br>Core<br> <br>Earnings<br> <br>may<br> <br>also<br> <br>be<br> <br>adjusted<br> <br>from<br> <br>time<br> <br>to<br> <br>time<br> <br>to<br> <br>exclude<br> <br>one-time<br> <br>events<br> <br>pursuant<br> <br>to<br> <br>changes<br> <br>in<br> <br>GAAP<br> <br>and<br> <br>certain<br> <br>other<br> <br>non-cash<br> <br>charges<br> <br>as<br> <br>determined<br> <br>by<br> <br>BXMT’s<br> <br>manager,<br> <br>subject<br> <br>to<br> <br>approval<br> <br>by<br> <br>a<br> <br>majority<br> <br>of<br> <br>its<br> <br>independent<br> <br>directors.<br> <br>Core<br> <br>Earnings<br> <br>does<br> <br>not<br> <br>represent<br> <br>net<br> <br>income<br> <br>or<br> <br>cash<br> <br>generated<br> <br>from<br> <br>operating<br> <br>activities<br> <br>and<br> <br>should<br> <br>not<br> <br>be<br> <br>considered<br> <br>as<br> <br>an<br> <br>alternative<br> <br>to<br> <br>GAAP<br> <br>net<br> <br>income,<br> <br>or<br> <br>an<br> <br>indication<br> <br>of<br> <br>BXMT’s<br> <br>GAAP<br> <br>cash<br> <br>flows<br> <br>from<br> <br>operations,<br> <br>a<br> <br>measure<br> <br>of<br> <br>BXMT’s<br> <br>liquidity,<br> <br>or<br> <br>an<br> <br>indication<br> <br>of<br> <br>funds<br> <br>available<br> <br>for<br> <br>its<br> <br>cash<br> <br>needs.<br> <br>In<br> <br>addition,<br> <br>BXMT’s<br> <br>methodology<br> <br>for<br> <br>calculating<br> <br>Core<br> <br>Earnings<br> <br>may<br> <br>differ<br> <br>from<br> <br>the<br> <br>methodologies<br> <br>employed<br> <br>by<br> <br>other<br> <br>companies<br> <br>to<br> <br>calculate<br> <br>the<br> <br>same<br> <br>or<br> <br>similar<br> <br>supplemental<br> <br>performance<br> <br>measures,<br> <br>and<br> <br>accordingly,<br> <br>its<br> <br>reported<br> <br>Core<br> <br>Earnings<br> <br>may<br> <br>not<br> <br>be<br> <br>comparable<br> <br>to<br> <br>the<br> <br>Core<br> <br>Earnings<br> <br>reported<br> <br>by<br> <br>other<br> <br>companies.<br> <br>Non-Consolidated<br> <br>Senior<br> <br>Interests:<br> <br>Senior<br> <br>interests<br> <br>in<br> <br>loans<br> <br>originated<br> <br>and<br> <br>syndicated<br> <br>to<br> <br>third<br> <br>parties.<br> <br>These<br> <br>non-recourse<br> <br>loan<br> <br>participations,<br> <br>which<br> <br>are<br> <br>excluded<br> <br>from<br> <br>the<br> <br>GAAP<br> <br>balance<br> <br>sheet,<br> <br>constitute<br> <br>additional<br> <br>financing<br> <br>capacity<br> <br>and<br> <br>are<br> <br>included<br> <br>in<br> <br>discussions<br> <br>of<br> <br>the<br> <br>loan<br> <br>portfolio.<br> <br>Earnings<br> <br>Sensitivity<br> <br>to<br> <br>LIBOR:<br> <br>Reflects<br> <br>the<br> <br>impact<br> <br>on<br> <br>net<br> <br>income,<br> <br>net<br> <br>of<br> <br>incentive<br> <br>fees,<br> <br>assuming<br> <br>no<br> <br>changes<br> <br>in<br> <br>credit<br> <br>spreads,<br> <br>portfolio<br> <br>composition,<br> <br>or<br> <br>asset<br> <br>performance.<br> <br>Assumes<br> <br>no<br> <br>change<br> <br>in<br> <br>general<br> <br>and<br> <br>administrative<br> <br>expenses,<br> <br>management<br> <br>fees,<br> <br>or<br> <br>other<br> <br>non-interest<br> <br>expenses<br> <br>relative<br> <br>to<br> <br>those<br> <br>incurred<br> <br>for<br> <br>the<br> <br>quarter<br> <br>ended<br> <br>December<br> <br>31,<br> <br>2019.
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<br> <br>Blackstone Mortgage Trust<br> <br>16<br> <br>Forward-Looking Statements<br> <br>This<br> <br>presentation<br> <br>may<br> <br>contain<br> <br>forward-looking<br> <br>statements<br> <br>within<br> <br>the<br> <br>meaning<br> <br>of<br> <br>Section<br> <br>27A<br> <br>of<br> <br>the<br> <br>Securities<br> <br>Act<br> <br>of<br> <br>1933,<br> <br>as<br> <br>amended,<br> <br>and<br> <br>Section<br> <br>21E<br> <br>of<br> <br>the<br> <br>Securities<br> <br>Exchange<br> <br>Act<br> <br>of<br> <br>1934,<br> <br>as<br> <br>amended,<br> <br>which<br> <br>reflect<br> <br>BXMT’s<br> <br>current<br> <br>views<br> <br>with<br> <br>respect<br> <br>to,<br> <br>among<br> <br>other<br> <br>things,<br> <br>its<br> <br>operations<br> <br>and<br> <br>financial<br> <br>performance.<br> <br>You<br> <br>can<br> <br>identify<br> <br>these<br> <br>forward-looking<br> <br>statements<br> <br>by<br> <br>the<br> <br>use<br> <br>of<br> <br>words<br> <br>such<br> <br>as<br> <br>“outlook,”<br> <br>“indicator,”<br> <br>“believes,”<br> <br>“expects,”<br> <br>“potential,”<br> <br>“continues,”<br> <br>“may,”<br> <br>“will,”<br> <br>“should,”<br> <br>“seeks,”<br> <br>“predicts,”<br> <br>“intends,”<br> <br>“plans,”<br> <br>“estimates,”<br> <br>“anticipates”<br> <br>or<br> <br>the<br> <br>negative<br> <br>version<br> <br>of<br> <br>these<br> <br>words<br> <br>or<br> <br>other<br> <br>comparable<br> <br>words.<br> <br>Such<br> <br>forward-<br> <br>looking<br> <br>statements<br> <br>are<br> <br>subject<br> <br>to<br> <br>various<br> <br>risks<br> <br>and<br> <br>uncertainties.<br> <br>Accordingly,<br> <br>there<br> <br>are<br> <br>or<br> <br>will<br> <br>be<br> <br>important<br> <br>factors<br> <br>that<br> <br>could<br> <br>cause<br> <br>actual<br> <br>outcomes<br> <br>or<br> <br>results<br> <br>to<br> <br>differ<br> <br>materially<br> <br>from<br> <br>those<br> <br>indicated<br> <br>in<br> <br>these<br> <br>statements.<br> <br>BXMT<br> <br>believes<br> <br>these<br> <br>factors<br> <br>include<br> <br>but<br> <br>are<br> <br>not<br> <br>limited<br> <br>to<br> <br>those<br> <br>described<br> <br>under<br> <br>the<br> <br>section<br> <br>entitled<br> <br>“Risk<br> <br>Factors”<br> <br>in<br> <br>its<br> <br>Annual<br> <br>Report<br> <br>on<br> <br>Form<br> <br>10-K<br> <br>for<br> <br>the<br> <br>fiscal<br> <br>year<br> <br>ended<br> <br>December<br> <br>31,<br> <br>2019,<br> <br>as<br> <br>such<br> <br>factors<br> <br>may<br> <br>be<br> <br>updated<br> <br>from<br> <br>time<br> <br>to<br> <br>time<br> <br>in<br> <br>its<br> <br>periodic<br> <br>filings<br> <br>with<br> <br>the<br> <br>Securities<br> <br>and<br> <br>Exchange<br> <br>Commission<br> <br>(“SEC”)<br> <br>which<br> <br>are<br> <br>accessible<br> <br>on<br> <br>the<br> <br>SEC’s<br> <br>website<br> <br>at<br> <br>www.sec.gov.<br> <br>These<br> <br>factors<br> <br>should<br> <br>not<br> <br>be<br> <br>construed<br> <br>as<br> <br>exhaustive<br> <br>and<br> <br>should<br> <br>be<br> <br>read<br> <br>in<br> <br>conjunction<br> <br>with<br> <br>the<br> <br>other<br> <br>cautionary<br> <br>statements<br> <br>that<br> <br>are<br> <br>included<br> <br>in<br> <br>this<br> <br>presentation<br> <br>and<br> <br>in<br> <br>the<br> <br>filings.<br> <br>BXMT<br> <br>assumes<br> <br>no<br> <br>obligation<br> <br>to<br> <br>update<br> <br>or<br> <br>supplement<br> <br>forward-looking<br> <br>statements<br> <br>that<br> <br>become<br> <br>untrue<br> <br>because<br> <br>of<br> <br>subsequent<br> <br>events<br> <br>or<br> <br>circumstances.
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