8-K
false 0001061630 0001061630 2020-02-11 2020-02-11

 

 

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

Jurisdiction of Incorporation)

  

(Commission File Number)

  

(I.R.S. Employer

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)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

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

 

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.

345 Park Avenue

New York, New York 10154

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

Blackstone

+1 (888) 756-8443

[email protected]

   

Public Affairs

Blackstone

+1 (212) 583-5263

[email protected]

Blackstone Mortgage Trust, Inc.
February 11, 2020
Fourth Quarter and Full Year 2019 Results
Exhibit 99.2

Blackstone Mortgage Trust
1
$15.8
$17.9
YE 2018
YE 2019
BXMT Highlights
Information included in this presentation is as of or for the period ended December 31, 2019, 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 February 10, 2020.
(c)
Reflects ratio of Core Earnings to dividends declared.
(d)
Reflects weighted average LTV as of the date investments were originated or acquired by BXMT.
(e)
Includes $689 million of Non-Consolidated Senior Interests as of December 31, 2019 and investment exposure to the $930 million 2018 Single Asset Securitization through an $89 million
subordinate risk retention interest.
+$2.1bn
($ in billions)
Portfolio Growth
(e)
2019
Dividend
Coverage
(c)
Dividend
Yield
(b)
109%
6.4%
100%
64%
Performing
Loans
Loan-to-Value
(d)(e)
BXMT
generated
4Q
EPS
of
$0.59
and
Core
EPS
(a)
of
$0.68,
reflecting
the
continued
strong
performance
of
its
first
mortgage
origination
business;
2019
full
year
EPS
of
$2.35,
Core
EPS
of
$2.70,
and
dividends
paid
of
$2.48
per
share

Blackstone Mortgage Trust
2
Originations
Originations
4Q
originations
of
$3.0
billion
across
17
(b)
transactions
Originated
48
(b)
loans
in
2019
resulting
in
volume
of
$8.6
billion,
with
a
weighted
average
origination
LTV
(c)
of
65%;
38%
of
2019
originations
from
Europe
Earnings &
Dividends
Earnings &
Dividends
4Q
EPS
of
$0.59
and
Core
Earnings
(a)
per
share
of
$0.68
($2.35
and
$2.70,
respectively,
for
full
year
2019);
109%
dividend
coverage
Book
value
per
share
of
$27.82,
up
$0.62
in
2019;
paid
$0.62
per
share
dividend
Fourth Quarter and Full Year 2019 Results
Portfolio
Composition
Portfolio
Composition
Capitalization
Capitalization
Interest Rates
Interest Rates
Portfolio
grew
13%
in
2019
to
$17.9
billion
(d)
with
$2.1
billion
of
net
fundings
over
the
year,
and
$1.4
billion
in
4Q
2019
100%
performing
portfolio
with
a
weighted
average
origination
LTV
(c)(d)
of
64%
$12.8
billion
(e)
of
outstanding
asset-level
financing
on
a
market
leading,
match-
funded
basis;
increased
capacity
by
$3.7
billion
during
the
year
Increased
Term
Loan
B
by
$250
million
to
$747
million
while
reducing
the
rate
from
L+250bps
to
L+225bps
(a)
See Appendix for a definition and reconciliation to GAAP net income.
(b)
Excluding upsizes.
(c)
Reflects weighted average LTV as of the date investments were originated or acquired by BXMT.
(d)
Includes $689 million of Non-Consolidated Senior Interests as of December 31, 2019 and investment exposure to the $930 million 2018 Single Asset Securitization through an $89 million
subordinate risk retention interest.
(e)
Includes $841 million of securitized debt held by third-parties in the $930 million 2018 Single Asset Securitization, which is not consolidated on BXMT’s balance sheet.
(f)
Includes USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR.
97%
of
the
portfolio
(d)
is
floating
rate;
in-place
LIBOR
(f)
floors
insulate
current
portfolio
earnings
from
potential
decreases
in
rates
Floating
rate
assets
and
matched
liabilities
support
book
value
and
earnings
stability

Blackstone Mortgage Trust
3
$24.67
$27.82
Re-IPO
2Q '13
4Q '19
$2.48
$0.22
Earnings & Dividends
Earnings & Dividends
4Q
GAAP
EPS
of
$0.59
and
Core
Earnings
(a)
of
$0.68
per
share,
$0.62
per
share
dividend
equates
to
a
6.4%
dividend
yield
(b)
BXMT
has
a
consistently
well-covered
dividend,
with
retained
excess
earnings
resulting
in
book
value
growth
(a)
See Appendix for a definition and reconciliation to GAAP net income.
(b)
Based on annualized dividend and BXMT closing price as of February 10, 2020.
(c)
2019 GAAP EPS was $2.35; retained Core Earnings refers to the amount of Core Earnings in excess of dividends paid for the periods presented.
+$3.15
Dividends Paid
Retained
Core Earnings
Book Value Per Share Growth
2019
Core
Earnings
Per
Share
(c)
109%
2019 Dividend Coverage

Blackstone Mortgage Trust
4
$9.8
$11.1
$15.8
$17.9
$139
$142
$246
$232
2016
2017
2018
2019
Originations
Originations
Origination
volume
of
$3.0
billion
in
4Q
and
$8.6
billion
in
2019,
while
maintaining
a
consistent
credit
profile
Increase
in
scale
of
originations
has
yielded
consistent
portfolio
growth
($ in billions, except avg. loan size)
(a)
Includes
non-consolidated
senior
interests
and
investment
exposure
to
the
2018
Single
Asset
Securitization
through
a
subordinate
risk
retention
interest.
(b)
Excludes upsizes and loans originated in the Walker & Dunlop joint venture.
Portfolio Size
Average Originated Loan Size
($mm)
(b)
Total
Investment
Portfolio
(a)
$8.6B
2019 Originations
4Q ‘19 Originations
$3.0B

Blackstone Mortgage Trust
5
Portfolio Composition
$17.9
billion
portfolio
(a)
comprising
129
assets
secured
by
institutional
quality
real
estate,
with
74%
in
gateway
markets
High
quality
100%
performing
portfolio
with
low
weighted
average
LTV
(a)(b)
of
64%
(a)
Includes $689 million of Non-Consolidated Senior Interests as of December 31, 2019 and investment exposure to the $930 million 2018 Single Asset Securitization through an $89 million
subordinate risk retention interest.
(b)
Reflects weighted average LTV as of the date investments were originated or acquired by BXMT.
Major
Market
Focus
(a)
Collateral
Diversification
(a)
Condo
Self-Storage
Retail
Industrial
Office
Hotel
Other
Multi
$17.9B
portfolio
AU
2%
ES
7%
2%
DEU
U.K.
12%
IE
7%
1%
IT
IL
5%
OH
1%
MN
1%
NY
22%
BE
FL
4%
GA
3%
DC
2%
TN
1%
1%
2%
NV
TX
CO
1%
1%
AZ
CA
17%
HI
States that comprise less than 1% of total loan portfolio
3%
VA
5%
58%
18%
9%
3%
2%
2%
1%
7%

Blackstone Mortgage Trust
6
Capitalization
Increased
Term
Loan
B
by
$250
million
to
$747
million
while
reducing
the
rate
from
L+250bps
to
L+225bps
$12.8
billion
(a)
of
outstanding
asset-level
financing
on
a
market
leading,
match-funded
basis
(a)
Includes $841 million of securitized debt held by third-parties in the $930 million 2018 Single Asset Securitization, which is not consolidated on BXMT’s balance sheet.
(b)
Includes $331 million of asset specific financings as of December 31, 2019.
(c)
Includes $1.2 billion of consolidated securitized debt obligations as well as $841 million of securitized debt held by third-parties in the $930 million 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.
(d)
Represents $689 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.
(e)
Represents (i) total outstanding secured debt agreements, secured term loans, and convertible notes, less cash, to (ii) total equity.
Credit
Facilities
(b)
14 Credit Facilities
Corporate Debt
Term Loan and Convertible Notes
Corporate Obligations
Senior Loan
Interests
(d)
$10.1
$1.4
$0.7
$11.5
Securitized
Debt
(c)
$2.0
CLO and Single Asset Securitizations
3.0x
Debt-to-Equity Ratio
(e)
Senior Syndications
Financing
(Outstanding Balance)
($ in billions)

Blackstone Mortgage Trust
7
-2.00%
-1.50%
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
3%
97%
Interest Rates
97%
of
the
portfolio
(a)
is
floating
rate;
in-place
LIBOR
(b)
floors
insulate
current
portfolio
earnings
from
potential
decreases
in
rates
A
1.0%
increase
or
decrease
in
USD
LIBOR
would
increase
earnings
per
share
by
$0.03
per
quarter
(c)
(a)
Includes $689 million of Non-Consolidated Senior Interests as of December 31, 2019 and investment exposure to the $930 million 2018 Single Asset Securitization through an $89 million
subordinate risk retention interest.
(b)
Includes USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR.
(c)
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
(c)
(Quarterly Earnings per Share)
Portfolio
Fixed
vs.
Floating
(a)
(% of Total Portfolio Exposure)
Floating
Fixed
$0.08
$0.06
$0.03
$0.00
$0.00
$0.01
$0.03
$0.05
$0.07

Appendix

Blackstone Mortgage Trust
9
4Q '18 Loans
Outstanding
Fundings
Repayments
4Q '19 Loans
Outstanding
Fourth Quarter and Full Year 2019 Operating Results & Net Fundings
Net Fundings
(b)
($ in billions)
Operating Results
($ in millions)
(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 $406 million of Non-Consolidated Senior Interests and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $97 million subordinate risk retention interest.
(d)
Includes $689 million of Non-Consolidated Senior Interests and investment exposure to the $930 million 2018 Single Asset Securitization through an $89 million subordinate risk retention interest.
GAAP Net
Income
Adjustments
Core
Earnings
Interest Income
220.7
$  
$    —
     
220.7
$  
Interest Expense
(111.0)
     
—
           
(111.0)
     
Management and
Incentive Fees
(20.2)
     
—
           
(20.2)
     
General and Administrative
Expenses and Taxes
(2.5)
        
—
           
(2.5)
        
Non-Cash
Compensation
(7.4)
        
7.4
         
—
           
Hedging and Foreign
Currency Income, net
(a)
—
           
4.8
         
4.8
         
Net Income Attributable to
Non-controlling Interests
(0.7)
        
—
           
(0.7)
        
Total
78.9
$   
12.2
$   
91.1
$    
$0.68
Core Earnings per Share
$0.59
Net Income per Share
$15.8
($4.9)
$7.0
$17.9
(c)
(d)

Blackstone Mortgage Trust
10
(a)
Date loan was originated or acquired by us, and the LTV as of such date. Origination dates are subsequently updated to reflect material loan modifications.
(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
December 31, 2019, four loans in the portfolio have been financed with an aggregate $689 million of Non-Consolidated Senior Interests, which are included in the table above.
(c)
Portfolio excludes our $89 million subordinate risk retention interest in the $930 million 2018 Single Asset Securitization.
(d)
Maximum maturity assumes all extension options are exercised; however, floating rate loans generally may be repaid prior to their final maturity without penalty.
(e)
Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for weighted-average calculation.
Portfolio Details
($ in millions)
Origination
Total
Principal
Net Book
Maximum
Property
Loan Per
Origination
Loan Type
Date
(a)
Loan
(b)(c)
Balance
(c)
Value
Maturity
(d)
Location
Type
SQFT / Unit / Key
LTV
(a)
Loan 1
Senior loan
8/14/2019
$  1,331
$  1,331
$  1,318
L + 2.50
%
L + 2.85
%
12/23/2024
Dublin - IE
Office
$459 / sqft
74 %
Loan 2
Senior loan
3/22/2018
1,009
1,009
1,005
L + 3.15
%
L + 3.37
%
3/15/2023
Diversified - Spain
Mixed-Use
n/a
71 %
Loan 3
Senior loan
5/11/2017
753
712
710
L + 3.40
%
L + 3.60
%
6/10/2023
Washington DC
Office
$348 / sqft
62 %
Loan 4
Senior loan
11/25/2019
724
586
585
L + 2.30
%
L + 2.75
%
12/9/2024
New York
Office
$840 / sqft
65 %
Loan 5
Senior loan
(c)
8/6/2015
489
489
88
5.74
%
5.77
%
10/29/2022
Diversified - EUR
Other
n/a
71 %
Loan 6
Senior loan
4/11/2018
355
345
344
L + 2.85
%
L + 3.02
%
5/1/2023
New York
Office
$437 / sqft
71 %
Loan 7
Senior loan
8/22/2018
363
338
336
L + 3.15
%
L + 3.49
%
8/9/2023
Maui
Hotel
$444,674 /  key
61 %
Loan 8
Senior loan
10/23/2018
352
334
333
L + 3.40
%
L + 3.72
%
10/23/2021
New York
Mixed-Use
$565 / sqft
65 %
Loan 9
Senior loan
1/11/2019
318
318
314
L + 4.35
%
L + 4.70
%
1/11/2026
Diversified - UK
Other
$314 / sqft
66 %
Loan 10
Senior loan
11/30/2018
293
279
277
L + 2.85
%
L + 3.20
%
12/9/2023
New York
Hotel
$228,186 /  key
73 %
Loan 11
Senior loan
11/30/2018
254
248
246
L + 2.80
%
L + 3.17
%
12/9/2023
San Francisco
Hotel
$363,499 /  key
73 %
Loan 12
Senior loan
7/31/2018
285
246
244
L + 3.10
%
L + 3.54
%
8/9/2022
San Francisco
Office
$617 / sqft
50 %
Loan 13
Senior loan
12/11/2018
310
245
243
L + 2.55
%
L + 2.96
%
12/9/2023
Chicago
Office
$206 / sqft
78 %
Loan 14
Senior loan
5/9/2018
243
233
232
L + 2.60
%
L + 3.03
%
5/9/2023
New York
Industrial
$66 / sqft
70 %
Loan 15
Senior loan
9/23/2019
280
229
227
L + 3.00
%
L + 3.22
%
11/15/2024
Diversified - Spain
Hotel
$228,228 /  key
62 %
Loans 16 - 128
Senior loans
Various
14,270
10,026
9,663
L + 3.37
%
(e)
L + 3.73
%
(e)
Various
Various
Various
Various
62 %
Total/Wtd. avg.
$  21,628
$  16,966
$  16,165
L + 3.25
%
(e)
L + 3.59
%
(e)
3.8 yrs
65 %
Cash
All-in
Coupon
Yield

Blackstone Mortgage Trust
11
Consolidated Balance Sheets
($ in thousands, except per share data)
December 31, 2019
December 31, 2018
Assets
Cash and cash equivalents
150,090
$                 
105,662
$                 
Loans receivable, net
16,164,801
              
14,191,200
              
Other assets
236,980
                    
170,513
                    
Total assets
16,551,871
$            
14,467,375
$            
Liabilities and equity
Secured debt agreements, net
10,054,930
$            
8,974,756
$              
Loan participations sold, net
—
                           
94,418
                       
Securitized debt obligations, net
1,187,084
                
1,285,471
                
Secured term loans, net
736,142
                    
—
                           
Convertible notes, net
613,071
                    
609,911
                    
Other liabilities
175,963
                    
128,212
                    
Total liabilities
12,767,190
              
11,092,768
              
Commitments and contingencies
—
                           
—
                           
Equity
Class A common stock, $0.01 par value
1,350
                         
1,234
                         
Additional paid-in capital
4,370,014
                
3,966,540
                
Accumulated other comprehensive loss
(16,233)
                     
(34,222)
                      
Accumulated deficit
(592,548)
                   
(569,428)
                   
Total Blackstone Mortgage Trust, Inc. stockholders' equity
3,762,583
                 
3,364,124
                 
Non-controlling interests
22,098
                      
10,483
                       
Total equity
3,784,681
                 
3,374,607
                 
Total liabilities and equity
16,551,871
$            
14,467,375
$            

Blackstone Mortgage Trust
12
Consolidated Statements of Operations
($ in thousands, except per share data)
Three Months Ended December 31,
Year Ended December 31,
2019
2018
2019
2018
Income from loans and other investments
Interest and related income
220,678
$          
206,098
$          
882,679
$          
756,109
$          
Less: Interest and related expenses
110,967
            
103,948
            
458,503
            
359,625
            
Income from loans and other investments, net
109,711
            
102,150
            
424,176
            
396,484
            
Other expenses
Management and incentive fees
20,159
              
18,586
              
78,435
              
74,834
              
General and administrative expenses
9,904
                 
9,632
                 
38,854
              
35,529
              
Total other expenses
30,063
              
28,218
              
117,289
            
110,363
            
Income before income taxes
79,648
              
73,932
              
306,887
            
286,121
            
Income tax provision (benefit)
67
                      
36
                       
(506)
                   
308
                    
Net income
79,581
$            
73,896
$            
307,393
$          
285,813
$          
Net income attributable to non-controlling interests
(650)
                   
(253)
                   
(1,826)
               
(735)
                   
Net income attributable to Blackstone Mortgage Trust, Inc.
78,931
$            
73,643
$            
305,567
$          
285,078
$          
Per share information (basic and diluted)
Weighted-average shares of common stock outstanding
134,832,323
    
121,588,404
    
130,085,398
    
113,857,238
    
Net income per share of common stock
0.59
$                 
0.61
$                 
2.35
$                 
2.50
$                 

Blackstone Mortgage Trust
13
Per Share Calculations
(Amounts in thousands, except per share data)
Three Months Ended
December 31, 2019
September 30, 2019
Net income
(a)
78,931
$                    
74,897
$                      
Weighted-average shares outstanding, basic and diluted
134,832
                     
134,537
                       
Earnings per share, basic and diluted
0.59
$                         
0.56
$                            
Three Months Ended
December 31, 2019
September 30, 2019
Stockholders' equity
3,762,583
$              
3,742,793
$                
Shares
Class A common stock
135,004
                    
134,289
                      
Deferred stock units
260
                             
252
                                
Total outstanding
135,264
                    
134,541
                      
Book value per share
27.82
$                      
27.82
$                          
Core Earnings
Reconciliation
Book Value
per Share
Earnings
per Share
(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.
Three Months Ended
December 31, 2019
September 30, 2019
Net income
(a)
78,931
$                   
74,897
$                     
Non-cash compensation expense
7,380
7,754
Hedging
and
foreign
currency
income,
net
(b)
4,767
2,898
Other items
68
78
Core Earnings
91,146
$                   
85,627
$                     
Weighted-average shares outstanding, basic and diluted
134,832
134,537
Core Earnings per share, basic and diluted
0.68
$                       
0.64
$                           

Blackstone Mortgage Trust
14
Reconciliation of Net Income to Core Earnings
(Amounts in thousands, except per share data)
Year Ended
Dec 31,
2019
Dec 31,
2019
Sept 30,
2019
Jun 30,
2019
Mar 31,
2019
Net income
(a)
305,567
$        
78,931
$           
74,897
$           
75,174
$       
76,565
$       
Non-cash compensation expense
30,656
             
7,380
                
7,754
                
7,754
            
7,768
            
Hedging and foreign currency income, net
(b)
14,172
             
4,767
                
2,898
                
3,237
            
3,271
            
Other items
300
                   
68
                      
78
                       
58
                  
95
                  
Core Earnings
350,695
$        
91,146
$           
85,627
$           
86,223
$       
87,699
$       
Weighted-average shares outstanding, basic and diluted
130,085
           
134,832
           
134,537
           
126,475
       
124,333
       
Net income per share, basic and diluted
2.35
$               
0.59
$                
0.56
$                
0.59
$            
0.62
$            
Core Earnings per share, basic and diluted
2.70
$               
0.68
$                
0.64
$                
0.68
$            
0.71
$            
Three Months Ended,
(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.

Blackstone Mortgage Trust
15
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)
non-cash
equity
compensation
expense,
(ii)
depreciation
and
amortization,
(iii)
unrealized
gains
(losses),
(iv)
net
income
(loss)
attributable
to
our
legacy
portfolio,
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
other
non-interest
expenses
relative
to
those
incurred
for
the
quarter
ended
December
31,
2019.

Blackstone Mortgage Trust
16
Forward-Looking Statements
This
presentation
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
BXMT’s
current
views
with
respect
to,
among
other
things,
its
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.
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,
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
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.