8-K

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 10, 2021

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 10, 2021, 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, 2020. 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 10, 2021.

99.2				Presentation of Blackstone Mortgage Trust, Inc. dated February 10, 2021.

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 10, 2021
	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 2020 Results

New York, February 10, 2021: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its fourth quarter and full year 2020 results. Full year EPS, Distributable EPS, and dividends paid per share were $0.97, $2.48, and $2.48, respectively.

Stephen D. Plavin, Chief Executive Officer, said, “BXMT’s strong 2020 results reflect the power and stability of our senior lending business. We generated consistent earnings in an environment of declining rates, while simultaneously maintaining strong credit performance and further fortifying our balance sheet. Our performance showcases the importance of careful sector and asset selection, disciplined underwriting, and deep relationships with our borrowers and lenders, all of which benefit tremendously from our affiliation with Blackstone.”

Blackstone Mortgage Trust issued a full detailed presentation of its fourth quarter and full year 2020 results, which can be viewed at www.bxmt.com.

Quarterly Investor Call Details

Blackstone Mortgage Trust will host a conference call today at 9:00 a.m. ET to discuss fourth quarter and full year 2020 results. To register for the webcast, please use the following link: https://event.webcasts.com/starthere.jsp?ei=1417560&tp_key=c9976f38d2. For those unable to listen to the live broadcast, a recorded replay will be available on the company’s website at www.bxmt.com beginning approximately two hours after the event.

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. Our portfolio is composed primarily of loans secured by high-quality, institutional assets in major markets, sponsored by experienced, well-capitalized real estate investment owners and operators. These senior loans are capitalized by accessing a variety of financing options, depending on our view of the most prudent strategy available for each of our investments. 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 $619 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, 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 and the impact of the COVID-19 pandemic. You can identify these forward-looking statements by the use of words such as “outlook,” “objective,” “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, 2020, as such factors may be further 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 “Distributable 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 2020 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.

Fourth Quarter and Full Year 2020 Results

FEBRUARY 10, 2021

Exhibit 99.2

Blackstone |

Blackstone Mortgage Trust, Inc.

BXMT HIGHLIGHTS

(1)

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

(2)

Includes $802 million of Non-Consolidated Senior Interests and investment exposure to the $736 million 2018 Single Asset Securitization through a $79 million subordinate interest.

(3)

Reflects ratio of Distributable Earnings per share to dividends declared for the year ended December 31, 2020.

(4)

GAAP

EPS

$0.57

and

Distributable

EPS

(1)

$0.60

reflect

the

stability

our

$18.2

billion

(2)

senior

loan portfolio backed by high-quality assets and well-capitalized sponsors

BXMT delivered strong earnings amidst a volatile environment, generating 2020 full year GAAP EPS

of $0.97 and Distributable EPS

(1)

of $2.48

100%

2020 coverage of

dividends

per

(3)

99.7%

2020 interest

collection

+52%

2020 increase

in total liquidity

Maintained steady earnings

through a challenging period

Senior mortgage loan portfolio

continues to outperform

Grew and maintained liquidity at over

$1 billion

(4)

despite market conditions

Consistent Earnings

Strong Credit Performance

Total

liquidity

$1.1

billion

primarily

includes

$290

million

cash

and

$829

million

available

borrowings

under

credit

facilities.

Blackstone |

Blackstone Mortgage Trust, Inc.

FOURTH QUARTER AND FULL YEAR 2020 RESULTS

(1)

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

(2)

Total liquidity primarily includes $290 million of cash and $829 million of available borrowings under credit facilities.

(3)

Includes $802 million of Non-Consolidated Senior Interests and investment exposure to the $736 million 2018 Single Asset Securitization through a $79 million subordinate interest.

(4)

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

(5)

Represents (i) total outstanding secured debt agreements, asset-specific debt agreements, secured term loans, and convertible notes, less cash, to (ii) total equity.

Earnings

4Q GAAP earnings per share of $0.57 and Distributable Earnings

(1)

per share of

$0.60 ($0.97 and $2.48, respectively, for full year 2020); 100% dividend coverage in

2020

Generated strong earnings while maintaining elevated liquidity levels during the

year; total liquidity at year end of $1.1 billion,

(2)

up 52% from 2019

4Q GAAP EPS includes a $0.04 release of prior CECL reserves; book value per share

of $26.42 is net of a $1.26 CECL reserve recorded in 2020

Portfolio

99.7% interest collection in 2020 (100% in 4Q) with virtually no interest deferral

reflects the quality of our portfolio and sponsor commitment to our collateral

$18.2 billion

(3)

senior loan portfolio secured by institutional quality real estate in

major markets, with a weighted average origination LTV

(3)(4)

of 64%

Loan fundings

of $2.1 billion stayed in step with loan repayments of $2.0 billion

during 2020

Capitalization

Issued $2.5 billion of CRE CLOs in 2020, increasing the non-recourse, non-mark-to-

market component of our balance sheet and reducing our debt-to-equity ratio

(5)

2.5x from 3.0x

Strong capital markets access enabled equity raise and new Term Loan B tranche,

generating $607 million of gross proceeds during the year

Match-funded portfolio financing with no capital markets mark-to-market and an

array of bilateral credit facilities, securitizations, and syndications

Blackstone |

Blackstone Mortgage Trust, Inc.

(1)

Reflects ratio of Distributable Earnings to a quarterly average BXMT book value. GAAP Yield on Book was 8.3% and 3.6% for years ending December 31, 2019 and 2020, respectively. GAAP Yield on

Book above LIBOR was 6.1% and 3.1% for years ended December 31, 2019 and 2020, respectively. See Appendix for a definition and reconciliation of Distributable Earnings to GAAP net income.

(2)

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

EARNINGS

Returns relative to base rates increased through a period of economic dislocation

2020 results driven by continued strong credit performance and stable earnings power of the loan portfolio

Attractive Relative Value

$0.97

2020 GAAP

earnings per share

$2.48

2020 Distributable

Earnings per share

(2)

Average Yield on Book

(1)

Average USD LIBOR

7.3%

8.7%

2.2%

0.5%

Yield

Above

LIBOR

2019

2020

9.5%

9.2%

Blackstone |

Blackstone Mortgage Trust, Inc.

PORTFOLIO

(1)

Includes $802 million of Non-Consolidated Senior Interests and investment exposure to the $736 million 2018 Single Asset Securitization through a $79 million subordinate interest.

(2)

States comprising less than 1% of total loan portfolio are excluded.

$18.2 billion

(1)

senior loan portfolio comprising 121 investments

Since the beginning of the crisis, sponsors have contributed over $500 million of new equity to support their assets

Major Market Focus

(1)(2)

Collateral Diversification

(1)

$18.2B

portfolio

AU, 1%

16%

TN, 1%

22%

VA, 4%

DC, 2%

HI, 3%

DEU, 1%

IT, 1%

NL, 1%

UK, 11%

IR, 7%

ES, 7%

BE, 1%

Hospitality

17%

Self-Storage

Industrial

Retail

Condo

Other

Office

58%

Multi

10%

Blackstone |

Blackstone Mortgage Trust, Inc.

PORTFOLIO

Loan portfolio continued to perform through a challenging credit environment with virtually no missed payments or

interest deferrals during 2020

Stable CECL reserve since the initial impact of COVID-19 in the first half of 2020

CECL Reserves

(1)

($ in millions)

Loan Portfolio Performance

$122.7

167.7

$56.8

$6.1

$5.8

1Q '20

2Q '20

3Q '20

4Q '20

12/31/20

Reserve

(1)

Represents the change in the CECL reserve recognized through net income on our consolidated statement of operations for each respective quarter. Excludes $17.7 million of CECL reserve recorded

upon adoption on January 1, 2020, which is reflected as a direct charge to retained earnings on our consolidated balance sheet.

99.7%

interest

collection

<1%

interest

deferred

Blackstone |

Blackstone Mortgage Trust, Inc.

(1)

Represents (i) total outstanding secured debt agreements, asset-specific debt agreements, secured term loans, and convertible notes, less cash, to (ii) total equity.

CAPITALIZATION

BXMT diversified its financing sources during 2020, with $2.5 billion of CLO issuances across two securitizations and

$325 million of incremental Term Loan B corporate financing

Decreased debt-to-equity to 2.5x from 3.0x during 2020, with no near-term corporate debt maturities

3.0x

12/31/19

12/31/20

Debt-to-Equity Ratio

(1)

Diversified Financing Sources

(outstanding balance)

2.5x

Term Loan B, 8%

Convertibles Notes, 4%

Asset-Specific

Financings, 8%

Securitizations

25%

Secured Debt

Agreements

55%

$14.4B

financings

Blackstone |

Blackstone Mortgage Trust, Inc.

Appendix

Blackstone |

Blackstone Mortgage Trust, Inc.

$18.3

$18.2

$0.5

$0.6

3Q ’20 Loans

Outstanding

Fundings

Repayments

4Q ’20 Loans

Outstanding

APPENDIX

(1)

Primarily represents the repatriation of net interest income earned during the quarter from non-USD investments. The difference between the value of such income on the date of conversion to USD

and our cumulative basis in such income is not included in GAAP net income, but rather as a component of Other Comprehensive Income on our consolidated balance sheet.

(2)

Adjusted to reflect $0.2 billion of non-cash fluctuations in foreign currency rates during the period for comparability to our total loan portfolio as of December 31, 2020.

(3)

Includes $716 million of Non-Consolidated Senior Interests and investment exposure to the $808 million 2018 Single Asset Securitization through a $79 million subordinate interest.

(4)

Includes $802 million of Non-Consolidated Senior Interests and investment exposure to the $736 million 2018 Single Asset Securitization through a $79 million subordinate interest.

Net Fundings

($ in billions)

4Q 2020 Operating Results

($ in millions)

$0.57

net income per share

$0.60

distributable earnings per share

(2)(3)

(4)

GAAP Net

Income

Adjustments

Distributable

Earnings

Interest income

$188.9

$ -

$188.9

Interest expense

(79.4)

0.8

(78.6)

Management and incentive fees

(19.2)

General and administrative

expenses and taxes

(3.1)

Decrease in current expected

credit loss reserve

5.8

(5.8)

Non-cash compensation

(8.6)

8.6

Realized hedging and

foreign currency income, net

(1)

0.6

Net income attributable to non-

controlling interests

(0.8)

0.1

(0.7)

Total

$83.6

$4.3

$87.9

Blackstone |

Blackstone Mortgage Trust, Inc.

APPENDIX

(1)

Portfolio excludes our $79 million subordinate interest in the $736 million 2018 Single Asset Securitization.

(2)

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.

(3)

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, 2020, five loans in

the portfolio have been financed with an aggregate $802 million of Non-Consolidated Senior Interests, which are included in the table above.

(4)

Maximum maturity assumes all extension options are exercised; however, floating rate loans generally may be repaid prior to their final maturity without penalty.

(5)

This loan is accounted for under the cost recovery method.

(6)

Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for weighted-average calculation. Excludes loans under the cost-recovery method.

Portfolio Details

(1)

($ in millions)

Origination

Total

Principal

Net Book

Maximum

Property

Loan Per

Origination

Loan Type

Date

(2)

Loan

(3)

Balance

(3)

Value

Maturity

(4)

Location

Type

SQFT / Unit / Key

LTV

(2)

Loan 1

Senior loan

8/14/2019

$ 1,318

$ 1,309

L + 2.50

L + 2.84

12/23/2024

Dublin - IE

Office

$479 / sqft

74 %

Loan 2

Senior loan

3/22/2018

993

991

L + 3.15

L + 3.37

3/15/2023

Diversified - Spain

Mixed-Use

n/a

71 %

Loan 3

Senior loan

11/25/2019

724

653

654

L + 2.30

L + 2.79

12/9/2024

New York

Office

$936 / sqft

65 %

Loan 4

Senior loan

5/11/2017

647

619

L + 3.40

L + 3.57

6/10/2023

Washington DC

Office

$304 / sqft

62 %

Loan 5

Senior loan

8/22/2018

363

360

359

L + 3.15

L + 3.49

8/9/2023

Maui

Hospitality

$467,454 / key

61 %

Loan 6

Senior loan

10/23/2018

352

348

L + 3.40

L + 3.67

1/23/2022

New York

Mixed-Use

$589 / sqft

65 %

Loan 7

Senior loan

4/11/2018

355

345

344

L + 2.85

L + 3.10

5/1/2023

New York

Office

$437 / sqft

71 %

Loan 8

Senior loan

(3)

8/6/2015

333

5.75

5.81

10/29/2022

Diversified - EUR

Other

n/a

71 %

Loan 9

Senior loan

1/11/2019

328

325

L + 4.35

L + 4.70

1/11/2026

Diversified - UK

Other

$324 / sqft

74 %

Loan 10

Senior loan

(3)

8/7/2019

746

306

L + 3.12

L + 3.56

9/9/2025

Los Angeles

Office

$207 / sqft

59 %

Loan 11

Senior loan

11/30/2018

286

285

n/m

(5)

n/m

(5)

8/9/2025

New York

Hospitality

$306,870 / key

73 %

Loan 12

Senior loan

2/27/2020

300

282

280

L + 2.70

L + 3.03

3/9/2025

New York

Mixed-Use

$884 / sqft

59 %

Loan 13

Senior loan

7/31/2018

280

278

277

L + 3.10

L + 3.52

8/9/2022

San Francisco

Office

$701 / sqft

50 %

Loan 14

Senior loan

9/30/2019

306

267

268

L + 3.66

L + 3.75

9/9/2024

Chicago

Office

$232 / sqft

58 %

Loan 15

Senior loan

12/11/2018

310

259

258

L + 2.55

L + 2.96

12/9/2023

Chicago

Office

$218 / sqft

78 %

Loans 16 - 120

Senior loans

(3)

Various

13,778

10,480

10,136

L + 3.31

(6)

L + 3.66

(6)

Various

63 %

CECL reserve

(174)

Total/Wtd. avg.

$ 21,418

$ 17,455

$ 16,399

L + 3.24

(6)

L + 3.58

(6)

3.1 yrs

65 %

Cash

All-in

Coupon

Yield

Blackstone |

Blackstone Mortgage Trust, Inc.

APPENDIX

Consolidated Balance Sheets

($ in thousands, except per share data)

December 31, 2020

December 31, 2019

Assets

Cash and cash equivalents

$289,970

$150,090

Loans receivable

16,572,715

16,164,801

Current expected credit loss reserve

(173,549)

—

Loans receivable, net

$16,399,166

$16,164,801

Other assets

269,819

236,980

Total assets

$16,958,955

$16,551,871

Liabilities and equity

Secured debt agreements, net

$7,880,536

$9,731,426

Securitized debt obligations, net

2,922,499

1,187,084

Asset-specific debt agreements, net

391,269

323,504

Secured term loans, net

1,041,704

736,142

Convertible notes, net

616,389

613,071

Other liabilities

202,327

175,963

Total liabilities

$13,054,724

$12,767,190

Commitments and contingencies

—

Equity

Class A common stock, $0.01 par value

1,468

1,350

Additional paid-in capital

4,702,713

4,370,014

Accumulated other comprehensive income (loss)

11,170

(16,233)

Accumulated deficit

(829,284)

(592,548)

Total Blackstone Mortgage Trust, Inc. stockholders’

equity

$3,886,067

$3,762,583

Non-controlling interests

18,164

22,098

Total equity

$3,904,231

$3,784,681

Total liabilities and equity

$16,958,955

$16,551,871

Blackstone |

Blackstone Mortgage Trust, Inc.

APPENDIX

Consolidated Statements of Operations

($ in thousands, except per share data)

2020

2019

2020

2019

Income from loans and other investments

Interest and related income

$188,851

$220,678

$779,648

$882,679

Less: Interest and related expenses

79,401

110,967

347,471

458,503

Income from loans and other investments, net

$109,450

$109,711

$432,177

$424,176

Other expenses

Management and incentive fees

19,158

20,159

77,916

78,435

General and administrative expenses

11,551

9,904

45,871

38,854

Total other expenses

$30,709

$30,063

$123,787

$117,289

Decrease (increase) in current expected credit loss reserve

5,813

(167,653)

Income before income taxes

$84,554

$79,648

$140,737

$306,887

Income tax provision (benefit)

131

323

(506)

Net income

$84,423

$79,581

$140,414

$307,393

Net income attributable to non-controlling interests

(807)

(650)

(2,744)

(1,826)

Net income attributable to Blackstone Mortgage Trust, Inc.

$83,616

$78,931

$137,670

$305,567

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

146,675,431

134,832,323

141,795,977

130,085,398

Net income per share of common stock

$0.57

$0.59

$0.97

$2.35

Three Months Ended December 31,

Twelve Months Ended December 31,

Blackstone |

Blackstone Mortgage Trust, Inc.

APPENDIX

(1)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(2)

Primarily represents the repatriation of net interest income earned during the quarter from non-USD investments. The difference between the value of such income on the date of conversion to USD

and our cumulative basis in such income is not included in GAAP net income, but rather as a component of Other Comprehensive Income on our consolidated balance sheet.

Per Share Calculations

(in thousands, except per share data)

Distributable Earnings

Reconciliation

Book Value

per Share

Earnings

per Share

December 31, 2020

September 30, 2020

Net income

(1)

$83,616

$89,860

Decrease in current expected credit loss reserve

(5,813)

(6,055)

Non-cash compensation expense

8,554

8,649

Realized hedging and foreign currency income (loss), net

(2)

582

(7)

Other items

921

(240)

Adjustments attributable to non-controlling interests, net

143

Distributable Earnings

$87,934

$92,350

Weighted-average shares outstanding, basic and diluted

146,675

146,485

Distributable Earnings per share, basic and diluted

$0.60

$0.63

Three Months Ended

December 31, 2020

September 30, 2020

Stockholders' equity

$3,886,067

$3,883,364

Class A common stock

146,780

146,197

Deferred stock units

307

294

Total outstanding

147,087

146,491

Book value per share

$26.42

$26.51

Three Months Ended

December 31, 2020

September 30, 2020

Net income

(1)

$83,616

$89,860

Weighted-average shares outstanding, basic and diluted

146,675

146,485

Earnings per share, basic and diluted

$0.57

$0.61

Three Months Ended

Blackstone |

Blackstone Mortgage Trust, Inc.

APPENDIX

(1)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(2)

For the years ended December 31, 2020 and 2019, 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 were not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.

Reconciliation of Net Income to Distributable Earnings

(in thousands, except per share data)

Years Ended December 31,

2020

2019

Net income

(1)

$137,670

$305,567

Increase in current expected credit loss reserve

167,653

Non-cash compensation expense

34,532

30,656

Realized

hedging

and

foreign

currency

income,

net

(2)

10,852

14,172

Other items

1,487

300

Adjustments attributable to non-controlling interests, net

(204)

Distributable Earnings

$351,990

$350,695

Weighted-average shares outstanding, basic and diluted

141,796

130,085

Net income per share, basic and diluted

$0.97

$2.35

Distributable Earnings per share, basic and diluted

$2.48

$2.70

Blackstone |

Blackstone Mortgage Trust, Inc.

DEFINITIONS

Distributable

Earnings:

Blackstone

Mortgage

Trust,

Inc.

(“BXMT”)

discloses

Distributable

Earnings

this

presentation.

Distributable

Earnings

financial

measure

that

calculated

and

presented

the

basis

methodologies

other

than

accordance

with

generally

accepted

accounting

principles

the

United

States

America

(“GAAP”).

Distributable

Earnings

non-GAAP

measure,

which

define

GAAP

net

income

(loss),

including

realized

gains

and

losses

not

otherwise

included

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

our

legacy

portfolio,

and

(v)

certain

non-cash

items.

Distributable

Earnings

may

also

adjusted

from

time

exclude

one-time

events

pursuant

changes

GAAP

and

certain

other

non-cash

charges

determined

our

Manager,

subject

approval

majority

our

independent

directors.

During

the

twelve

months

ended

December

31,

2020,

recorded

$167.7

million

increase

current

expected

credit

loss

reserve,

CECL

reserve,

which

has

been

excluded

from

Distributable

Earnings

consistent

with

other

unrealized

gains

(losses)

pursuant

our

existing

policy

for

reporting

Distributable

Earnings

and

the

terms

the

management

agreement

between

our

Manager

and

us.

believe

that

Distributable

Earnings

provides

meaningful

information

consider

addition

our

net

income

and

cash

flow

from

operating

activities

determined

accordance

with

GAAP.

This

adjusted

measure

helps

evaluate

our

performance

excluding

the

effects

certain

transactions

and

GAAP

adjustments

that

believe

are

not

necessarily

indicative

our

current

loan

portfolio

and

operations.

believe

Distributable

Earnings

useful

financial

metric

for

existing

and

potential

future

holders

our

class

common

stock

historically,

over

time,

Distributable

Earnings

has

been

strong

indicator

our

dividends

per

share.

Distributable

Earnings

mirrors

the

terms

our

management

agreement

between

our

Manager

and

us,

our

Management

Agreement,

for

purposes

calculating

our

incentive

fee

expense.

Distributable

Earnings

does

not

represent

net

income

cash

generated

from

operating

activities

and

should

not

considered

alternative

GAAP

net

income,

indication

our

GAAP

cash

flows

from

operations,

measure

our

liquidity,

indication

funds

available

for

our

cash

needs.

addition,

our

methodology

for

calculating

Distributable

Earnings

may

differ

from

the

methodologies

employed

other

companies

calculate

the

same

similar

supplemental

performance

measures,

and

accordingly,

our

reported

Distributable

Earnings

may

not

comparable

the

Distributable

Earnings

reported

other

companies.

Non-Consolidated

Senior

Interests:

Senior

interests

loans

originated

and

syndicated

third

parties.

These

non-recourse

loan

participations,

which

are

excluded

from

the

GAAP

balance

sheet,

constitute

additional

financing

capacity

and

are

included

discussions

the

loan

portfolio.

Non-Consolidated

Securitized

Debt

Obligations:

Senior

securitized

debt

held

third-parties

the

2018

Single

Asset

Securitization.

These

non-recourse

securitized

debt

obligations,

which

are

excluded

from

the

GAAP

balance

sheet,

constitute

additional

financing

capacity

and

are

included

discussions

the

loan

portfolio.

Blackstone |

Blackstone Mortgage Trust, Inc.

FORWARD-LOOKING STATEMENTS

This

presentation

may

contain

forward-looking

statements

within

the

meaning

Section

27A

the

Securities

Act

1933,

amended,

and

Section

21E

the

Securities

Exchange

Act

1934,

amended,

which

reflect

BXMT’s

current

views

with

respect

to,

among

other

things,

its

operations

and

financial

performance

and

the

impact

the

COVID-19

pandemic.

You

can

identify

these

forward-

looking

statements

the

use

words

such

“outlook,”

“objective,”

“indicator,”

“believes,”

“expects,”

“potential,”

“continues,”

“may,”

“will,”

“should,”

“seeks,”

“predicts,”

“intends,”

“plans,”

“estimates,”

“anticipates”

the

negative

version

these

words

other

comparable

words.

Such

forward-looking

statements

are

subject

various

risks

and

uncertainties.

Accordingly,

there

are

will

important

factors

that

could

cause

actual

outcomes

results

differ

materially

from

those

indicated

these

statements.

BXMT

believes

these

factors

include

but

are

not

limited

those

described

under

the

section

entitled

“Risk

Factors”

its

Annual

Report

Form

10-K

for

the

fiscal

year

ended

December

31,

2020,

such

factors

may

further

updated

from

time

its

periodic

filings

with

the

Securities

and

Exchange

Commission

(“SEC”)

which

are

accessible

the

SEC’s

website

www.sec.gov.

These

factors

should

not

construed

exhaustive

and

should

read

conjunction

with

the

other

cautionary

statements

that

are

included

this

presentation

and

the

filings.

BXMT

assumes

obligation

update

supplement

forward-looking

statements

that

become

untrue

because

subsequent

events

circumstances.