November Q 2017 Earnings Release & Company Supplemental

Transcription

1 November Q 2017 Earnings Release & Company Supplemental

2 Forward-Looking Statements and Other Matters This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect Blackstone Mortgage Trust, Inc. ( BXMT ) current views with respect to, among other things, BXMT s operations and financial performance. You can identify these forward-looking statements by the use of words such as outlook, indicator, believes, expects, potential, continues, may, will, should, seeks, approximately, predicts, intends, plans, estimates, anticipates or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. BXMT believes these factors include but are not limited to those described under the section entitled Risk Factors in its Annual Report on Form 10-K for the fiscal year ended December 31, 2016, 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 These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this presentation and in the filings. BXMT assumes no obligation to update or supplement forward looking statements that become untrue because of subsequent events or circumstances. Slide 19 of this presentation references numerical data relating to Blackstone that includes activities of Blackstone Real Estate s public and private portfolio companies unless otherwise noted. Slide 27 of this presentation includes a reference to imputed core return on equity ( Imputed Core ROE ) and other economic terms relating to an illustrative BXMT loan transaction that are presented solely for purposes of illustrating the impact of using floating rate financing to finance the origination of a floating rate loan and should not be viewed as indicative of the results that will be achieved for any particular loan in BXMT s portfolio or of BXMT s results as a whole. The loan economics presented are hypothetical and based upon a number of assumptions, including no defaults on the loan, and are subject to various risks and uncertainties. Accordingly, there are or will be important factors, including those referred to above, that could cause the actual economics that are achieved on any loan in BXMT s loan portfolio to differ materially from those indicated in this illustration. In particular, it should be noted that as a result of such factors the net spread between whole loan yields and the cost of related leverage, the leverage multiple applicable to any particular loan and allocable overhead may vary materially from period to period and across BXMT s loan portfolio. Imputed Core ROE also excludes potential incentive management fees and is presented before any tax effects. Information included in this presentation is as of or for the period ended September 30, 2017, unless otherwise indicated. Blackstone Mortgage Trust 1

3 BXMT Highlights BXMT s $10.7 billion portfolio of senior commercial real estate loans produced $0.61 of GAAP EPS and $0.69 of Core EPS (a) in 3Q driving TTM dividend coverage to 102% Income Stable Protected Expertise $0.62 3Q dividend $10.7B senior loan portfolio 92% floating rate $1.1B 3Q originations 8.0% dividend yield (b) 61% Loan-to-Value (c) +$0.26 net interest income per 1% increase in LIBOR $111B BX Real Estate investor capital under management 100% performing loan portfolio generates current cash income Stable portfolio financed with longterm, match-funded liabilities Portfolio positioned for yield and value protection in changing rate environment Blackstone Real Estate platform provides expert management Information included in this presentation is as of or for the period ended September 30, 2017, unless otherwise indicated. YTD information is for the nine months ended September 30, (a) See Appendix for a definition and reconciliation to GAAP net income (b) Based on annualized dividend and BXMT closing price as of September 30, 2017 (c) Reflects LTV as of the date loans were originated or acquired by BXMT Blackstone Mortgage Trust 2

4 Third Quarter 2017 Results Earnings & Dividends 3Q EPS of $0.61 and Core Earnings (a) of $0.69 per share; book value of $ Q dividend of $0.62 per share equates to an 8.0% dividend yield (b) Loan Originations 3Q origination of $1.1 billion; YTD volume of $3.6 billion up 33% from prior year Fundings under previously originated commitments in 3Q totaled $172 million Portfolio Composition $10.7 billion portfolio (c) with a weighted average origination LTV (d) of 61% Coastal markets emphasis with 41% of loans secured by assets in CA or NY Financing Debt-to-Equity ratio (e) of 2.6x; match funded long-term leverage $115 million add-on issuance of 4.375% May 2022 convertible notes Interest Rates 92% of the portfolio is floating rate 1.0% increase in LIBOR would increase annual net interest income by $0.26 per share (a) See Appendix for a definition and reconciliation to GAAP net income (b) Based on annualized dividend and BXMT closing price as of September 30, 2017 (c) Includes $988 million of Non-Consolidated Senior Interests, see Appendix for definition (d) Reflects LTV as of the date loans were originated or acquired by BXMT (e) Represents (i) total outstanding secured debt agreements and convertible notes, less cash, to (ii) total equity Blackstone Mortgage Trust 3

5 Earnings & Dividends GAAP earnings of $0.61 per share ($58 million) and Core Earnings (a) of $0.69 per share ($65 million) $0.62 per share dividend equates to an 8.0% dividend yield (b) Book value of $26.52 per share, up $0.14 from prior quarter TTM Dividend Coverage (c) Cumulative Dividends ($ in millions) $0.62 $0.61 $0.60 $0.69 $0.62 dividend $550 $ % TTM coverage $317 $122 $21 4Q'16 1Q'17 2Q'17 3Q'17 Core Earnings Per Share (a) See Appendix for a definition and reconciliation to GAAP net income (b) Based on annualized dividend and BXMT closing price as of September 30, 2017 (c) GAAP EPS of $0.57, $0.54, $0.53 and $0.61 as of 4Q 16, 1Q 17, 2Q 17 and 3Q 17, respectively YTD 2017 Dividends Paid Blackstone Mortgage Trust 4

6 Loan Originations Originated $1.1 billion in 3Q with YTD 2017 totaling $3.6 billion of originations, up 33% from prior year Fundings under previously originated commitments in the quarter totaled $172 million 64% of 3Q originations are collateralized by assets located in California Originated 2 new construction loans totaling $284 million that will contribute to outstandings in future periods ($ in billions) 3Q 2017 Originations Origination Growth 100% senior loans 33% YoY growth $ % floating rate Weighted average LTV (a) of 63% 3Q 2Q $2.7 $1.0 $0.9 $1.1 $1.5 Large loans: $116 million avg. size (b) 1Q $0.9 $1.0 1Q - 3Q 2016 YTD 2017 (a) (b) Reflects LTV as of the date loans were originated or acquired by BXMT Excludes loans originated in the BXMT-Walker & Dunlop joint venture Blackstone Mortgage Trust 5

7 Portfolio Composition $10.7 billion portfolio comprising 111 senior loans secured by institutional quality real estate concentrated in major markets; 41% of loans secured by assets located in New York or California Geographic Diversification (a) Collateral Diversification (a) WA 2% CAN 4% MA 2% Other MHC 2% 3% 8% Condo Multifamily 7% 54% Office CA 19% IL 8% NC 1% DC 2% NY 22% Retail 9% HI 5% UK 8% TX 1% GA 3% FL 9% VA 7% Hotel 17% BE 1% NL 1% DEU 1% States that comprise less than 1% of total loan portfolio Weighted Average LTV (b) 61% (a) (b) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 in our Form 10-Q for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $988 million of such Non-Consolidated Senior Interests as of September 30, Reflects LTV as of the date loans were originated or acquired by BXMT Blackstone Mortgage Trust 6

8 Financing Total asset-level financing capacity of $10.7 billion was 68% utilized at quarter-end Closed $450 million of credit facility financing for bridge loans originated in the BXMT-Walker & Dunlop joint venture 3Q $115 million add-on issuance of 4.375% May 2022 convertible notes increased total outstanding to $403 million ($ in billions) Financing Credit Facilities Corporate Debt Coupon of L+1.90% Convertible Notes: 4.64% Secured Facility: L+2.25% $5.9 $ x Debt-to-Equity Ratio (b) Corporate Obligations $6.6 Securitized Coupon of L+1.86% $0.5 Debt Senior Loan Interests (a) Pricing directly related to underlying collateral assets $ x Total Leverage Ratio (c) Total Leverage $8.3 (a) (b) (c) In addition to $33 million of loan participations sold, includes $988 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. Represents (i) total outstanding secured debt agreements, convertible notes, less cash, to (ii) total equity Represents (i) total outstanding secured debt agreements, convertible notes, loan participations sold, Non-Consolidated Senior Interests, and securitized debt obligations, less cash, to (ii) total equity Blackstone Mortgage Trust 7

9 Net Interest Income Per Share Interest Rates Core Earnings are positively correlated to changes in LIBOR, the benchmark index for 92% of BXMT s loans A 1.0% increase in USD LIBOR would increase net interest income per share by $0.26 per annum Portfolio Income Sensitivity to USD LIBOR (Annual Dollars of Net Interest Income Per Share) Portfolio Fixed vs. Floating (% of Total Loan Exposure) $0.80 $0.70 $0.60 $ % Floating (a) $0.40 $0.30 $0.20 $0.10 $ % 1.73% 2.23% 2.73% 3.23% 3.73% USD LIBOR 8% Fixed (a) As of September 30, 2017, $274 million of floating rate loans earned interest based on floors that were above the applicable index, with an average floor of 1.24% Blackstone Mortgage Trust 8

10 Third Quarter 2017 Operating Results & Net Funding Operating Results ($ in millions) Net Funding ($ in billions) GAAP Net Income Adjustments Core Earnings Interest Income $ $ (0.1) $ Interest Expense (67.9) 0.5 (67.4) $10.6 $0.9 $(0.9) $0.1 $10.7 Management and Incentive Fees (13.2) (13.2) G&A / Other (1.6) 1.1 (0.5) Non-Cash Compensation Net income attributable to non-controlling interests (5.9) 5.9 (0.1) (0.1) Total $ 57.7 $ 7.4 $ 65.1 $0.61 Net Income Per Share $0.69 Core Earnings Per Share 2Q'17 Loans (a) Outstanding Fundings Repayments FX Revaluation $10 million (b) Net Repayments 3Q'17 Loans (a) Outstanding (a) (b) Includes $983 million and $988 million of Non-Consolidated Senior Interests as of June 30, 2017 and September 30, 2017, respectively, see Appendix for definition Excludes the impact of changes in foreign currency rates and hedges for non-usd loans and financings Blackstone Mortgage Trust 9

11 Loan Portfolio Details ($ in millions) Loan Type Origination Date (a) Total Loan (b) Principal Balance (b) Net Book Value Cash Coupon All-In Yield Maximum Maturity (c) Location Property Type Loan Per SQFT / Unit / Key Loan 1 Senior Loan 5/11/2017 $ 753 $ 645 $ 641 L % L % 6/10/2023 Virginia Office 316 / sqft 62% Loan 2 Senior Loan (b) 5/15/ L % L % 5/15/2020 Miami Retail 674 / sqft 36% Loan 3 Senior Loan (b) 8/6/ % 5.82% 10/29/2022 Diversified - EUR Other n/a 71% Loan 4 Senior Loan 5/1/ L % L % 5/1/2020 New York Office 375 / sqft 68% Loan 5 Senior Loan 1/7/ L % L % 1/9/2021 New York Office 252 / sqft 53% Loan 6 Senior Loan 6/4/ L % L % 9/2/2020 Diversified - CAN Hotel 42,371 / key 54% Loan 7 Senior Loan 3/31/ L % L % 4/9/2022 Maui Hotel 318,182 / key 75% Loan 8 Senior Loan 6/23/ L % L % 5/8/2022 Washington DC Office 241 / sqft 72% Loan 9 Senior Loan 7/31/ L % L % 8/9/2019 Chicago Office 281 / sqft 64% Loan 10 Senior Loan 8/3/ L % L % 8/9/2021 New York Office 267 / sqft 57% Loan 11 Senior Loan 8/19/ L % L % 9/9/2021 New York Office 579 / sqft 69% Loan 12 Senior Loan 4/15/ L % L % 5/9/2021 New York Office 176 / sqft 40% Loan 13 Senior Loan 2/25/ L % L % 3/9/2019 Diversified - US Hotel 95,113 / key 58% Loan 14 Senior Loan (b) 6/30/ L % L % 8/15/2022 San Francisco Condo 827 / sqft 60% Loan 15 Senior Loan 12/22/ L % L % 1/9/2022 New York Office 242 / sqft 66% Loan Senior Loans Various 7,657 6,362 6, % (d) 5.58% (d) Various Various Various Various 62% Total/Wtd. Avg. $ 12,342 $ 10,669 $ 9, % 5.55% 3.4 years 61% Origination LTV (a) (a) (b) (c) (d) Date loan was originated or acquired by BXMT, and the LTV as of such date Blackstone Mortgage Trust 10 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 September 30, 2017, three loans in the portfolio have been financed with an aggregate $988 million of Non-Consolidated Senior Interests, which are included in the table above. Maximum maturity assumes all extension options are exercised; however, floating rate loans generally may be repaid prior to their final maturity without penalty Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for weighted-average calculation.

12 Consolidated Balance Sheets ($ in thousands, except per share data) September 30, 2017 December 31, 2016 Assets Cash and cash equivalents $ 61,221 $ 75,567 Restricted Cash 32,864 Loans receivable, net 9,637,152 8,692,978 Other assets 45,680 44,070 Total assets $ 9,776,917 $ 8,812,615 Liabilities and equity Secured debt agreements, net $ 6,079,135 $ 5,716,354 Loan participations sold, net 33, ,077 Securitized debt obligations, net 474,298 Convertible notes, net 562, ,762 Other liabilities 101,758 87,819 Total liabilities 7,251,125 6,319,012 Commitments and contingencies Equity Class A common stock, $0.01 par value Additional paid-in capital 3,109,094 3,089,997 Accumulated other comprehensive loss (32,362) (56,202) Accumulated deficit (558,066) (541,137) Total Blackstone Mortgage Trust, Inc. stockholdersʼ equity 2,519,614 2,493,603 Non-controlling interests 6,178 Total equity 2,525,792 2,493,603 Total liabilities and equity $ 9,776,917 $ 8,812,615 Blackstone Mortgage Trust 11

13 Consolidated Statements of Operations ($ in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, Income from loans and other investments Interest and related income $ 146,446 $ 128,190 $ 391,787 $ 381,686 Less: Interest and related expenses 67,891 45, , ,819 Income from loans and other investments, net 78,555 82, , ,867 Other expenses Management and incentive fees 13,243 13,701 40,557 43,161 General and administrative expenses 7,419 7,414 22,219 20,990 Total other expenses 20,662 21,115 62,776 64,151 Gain on investments at fair value 2,824 13,413 Income from equity investment in unconsolidated subsidiary 2,060 2,192 Income before income taxes 57,893 66, , ,321 Income tax provision Net income $ 57,810 $ 66,392 $ 159,829 $ 193,040 Net income attributable to non-controlling interests (88) (1,598) (88) (8,119) Net income attributable to Blackstone Mortgage Trust, Inc. $ 57,722 $ 64,794 $ 159,741 $ 184,921 Per share information (basic and diluted) Weighted-average shares of common stock outstanding 95,013,087 94,071,537 95,004,188 94,067,923 Net income per share of common stock $ 0.61 $ 0.69 $ 1.68 $ 1.97 Blackstone Mortgage Trust 12

14 Per Share Calculations (Amounts in thousands, except per share data) Core Earnings Reconciliation Three Months Ended September 30, 2017 June 30, 2017 Net income (a) $ 57,722 $ 50,613 Non-cash compensation expense 5,944 5,959 GE purchase discount accretion adjustment (b) (138) (198) Other items 1,610 1,001 Core Earnings $ 65,138 $ 57,375 Weighted-average shares outstanding, basic and diluted 95,013 95,006 Core Earnings per share, basic and diluted $ 0.69 $ 0.60 Book Value per Share September 30, 2017 June 30, 2017 Stockholdersʼ equity $ 2,519,614 $ 2,506,473 Shares Class A common stock 94,828 94,828 Deferred stock units Total outstanding 95,018 95,010 Book value per share $ $ Earnings per Share Three Months Ended September 30, 2017 June 30, 2017 Net income (a) $ 57,722 $ 50,613 Weighted-average shares outstanding, basic and diluted 95,013 95,006 Earnings per share, basic and diluted $ 0.61 $ 0.53 (a) (b) Represents net income attributable to Blackstone Mortgage Trust, Inc. Adjustment in respect of the deferral in Core Earnings of the accretion of a total $9.1 million of purchase discount attributable to a certain pool of GE portfolio loans pending the repayment of those loans Blackstone Mortgage Trust 13

15 Reconciliation of Net Income to Core Earnings (Amounts in Thousands, Except per Share Data) Dec 31, 2016 Three Months Ended Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Net income (a) $ 53,375 $ 51,405 $ 50,613 $ 57,722 CT Legacy Portfolio net income (502) Non-cash compensation expense 4,955 5,907 5,959 5,944 GE purchase discount accretion adjustment (b) (320) (216) (198) (138) Other items 742 1,024 1,001 1,610 Core Earnings $ 58,250 $ 58,120 $ 57,375 $ 65,138 Weighted-average shares outstanding, basic and diluted 94,456 94,993 95,006 95,013 Net income per share, basic and diluted $ 0.57 $ 0.54 $ 0.53 $ 0.61 Core Earnings per share, basic and diluted $ 0.62 $ 0.61 $ 0.60 $ 0.69 (a) (b) Represents net income attributable to Blackstone Mortgage Trust, Inc. Adjustment in respect of the deferral in Core Earnings of the accretion of a total $9.1 million of purchase discount attributable to a certain pool of GE portfolio loans pending the repayment of those loans Blackstone Mortgage Trust 14

16 Definitions Core Earnings: Blackstone Mortgage Trust, Inc. ( BXMT ) discloses Core Earnings, 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 ) in this presentation. 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, beginning with the third quarter of 2015, BXMT reports Core Earnings after incentive fees expense, as BXMT believes this is a more meaningful presentation of the economic performance of its class A common stock. Core Earnings is defined as GAAP net income (loss), including realized gains and losses not otherwise included in GAAP net income (loss), and excluding (i) net income (loss) attributable to the CT Legacy Portfolio, (ii) non-cash equity compensation expense, (iii) depreciation and amortization, (iv) unrealized gains (losses), and (v) certain non-cash items. Core Earnings may also be adjusted from time to time to exclude one-time events pursuant to changes in GAAP and certain other non-cash charges as determined by BXMT s manager, subject to approval by a majority of its independent directors. Core Earnings does not represent net income or cash generated from operating activities and should not be considered as an alternative to GAAP net income, or an indication of BXMT s GAAP cash flows from operations, a measure of BXMT s liquidity, or an indication of funds available for its cash needs. In addition, BXMT s methodology for calculating Core Earnings may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, its reported Core Earnings may not be comparable to the Core Earnings reported by other companies. Non-Consolidated Senior Interests: Senior interests in loans originated and syndicated to third parties. These non-recourse loan participations constitute additional financing capacity and are included in discussions of the loan portfolio. Blackstone Mortgage Trust 15

17 Company Supplemental

18 Blackstone Mortgage Trust, Inc. Overview Blackstone Mortgage Trust, Inc. (NYSE: BXMT) is a REIT that originates senior commercial mortgage loans in North America and Europe Superior Sponsorship Affiliation with BX, largest real estate private equity business in the world Senior Lending Focused Attractive current income, conservative credit and efficient leverage to drive returns Large-Scale Portfolio Institutional quality real estate located in major markets Floating Rate Business Returns increase with rising shortterm USD interest rates Blackstone Mortgage Trust 17

19 Superior Real Estate Platform Blackstone Real Estate is a premier debt and equity investment and asset management platform Investor Capital Under Management BREP Asia 10% BPP Core 16% $15 billion AUM BREP Europe 23% $111B BREDS 14% Blackstone 109 professionals BREDS Drawdown BREDS Liquid Mortgage Trust Funds Funds Senior loans Mezzanine debt CMBS strategy BREP Global 38% $10.7B (a) of assets $3.0B equity market capitalization $9B strategy $3B equity under management Note: There can be no assurance that any Blackstone Fund or investment will be able to implement its investment strategy, achieve its objectives or avoid losses (a) Includes $988 million of non-consolidated senior interests Blackstone Mortgage Trust 18

20 Superior Real Estate Platform Global portfolio drives proprietary insight, leasing advantage and value creation Office 220M Square Feet One of the largest owners in the U.S. Retail 75M Square Feet Active global investor since 2011 Hotel 207k Owned Keys One of the largest owners in the U.S. Multifamily 195k Units Major investor globally Blackstone Mortgage Trust 19

21 Superior Real Estate Platform 450+ people, 12 offices, 3 business units but one fully integrated real estate platform Blackstone Advantage Regular Meetings Single Perspective Global Business 44% of RE partners have international experience Scale Capital $111 billion RE AUM $12 billion raised YTD 2017 Long View Long term capital commitments Never a forced seller Weekly Partners Meeting Global ICMs Investment Review Committees Quarterly Board Meetings Portfolio Asset Review Annual Global Asset Reviews Strategy Sessions 1 Global Real Estate Platform 27 Partners average 13 years at Blackstone Blackstone Mortgage Trust 20

22 Superior Real Estate Platform Blackstone s unique investment process is complemented by fully-integrated corporate infrastructure BREDS Investment Committee Jonathan Gray Global Head of Real Estate Member of Blackstone Board of Directors Michael Nash Executive Chairman of BXMT Global Chairman of BREDS Tim Johnson Head of North American Originations Senior Managing Director of BREDS Stephen Plavin CEO & President of BXMT Senior Managing Director of BREDS Kenneth Caplan Global CIO of Real Estate Senior Managing Director of Blackstone Real Estate Joshua Mason PM Liquid Funds Senior Managing Director of BREDS Jonathan Pollack Global Head of BREDS Senior Managing Director of BREDS Kathleen McCarthy Global COO of Real Estate Senior Managing Director of Blackstone Real Estate Rob Harper Head of US Asset Management Senior Managing Director of Blackstone Real Estate Originations (US. & Europe) 34 professionals Michael Eglit Managing Director of BREDS (U.S.) Katie Keenan Managing Director of BREDS (U.S.) Jimmy Yung Managing Director of BREDS (U.S.) Michael Zerda Managing Director of BREDS (Europe) Asset Management 13 professionals Thomas Ruffing Managing Director of BREDS Legal / Compliance 3 professionals Leon Volchyok Principal of BREDS Capital Markets / IR / Finance 17 professionals Douglas Armer Managing Director of BREDS Weston Tucker Managing Director of Blackstone External Relations Anthony Marone CFO and Managing Director of BREDS Blackstone Mortgage Trust 21

23 Target Investments Loan Size $50 million to $500+ million Collateral Property Type Geographies Loan to Value Rate Term Amortization Fees Prepayment First mortgages on stabilized or transitional assets All commercial property types North America and Europe Last dollar 50% to 80% LIBOR % and higher, scaled to risk 3 to 5 years Typically interest only Typically 1.0% origination fee and 0.25% to 0.50% extension fees 12 to 24 months of spread maintenance Blackstone Mortgage Trust 22

24 Sample Transaction: 123 Mission $187 million floating rate, first mortgage loan secured by 123 Mission in San Francisco Well located class A office building undergoing value-enhancing repositioning; 65% LTV Initial funding of $169 million with $18 million future funding commitment for building improvements and leasing Blackstone offered a one-stop solution for a repeat borrower in a major transaction 123 Mission Blackstone Mortgage Trust 23

25 Sample Transaction: Westin Maui $258 million floating rate, first mortgage loan secured by Westin Hotel in Maui, Hawaii Well located in beachfront Ka anapali surrounded by retail, dining and golf courses; 75% LTV; $488k per key Initial funding of $241 million with $17 million future funding commitment for hotel improvements Located in a core hospitality market where Blackstone has been an active investor Westin Maui Airport Blackstone Mortgage Trust 24

26 Sample Transaction: Woolworth Building $320 million floating rate, first mortgage loan secured by the Woolworth Building, an iconic office tower located in Downtown Manhattan Adjacent to City Hall with convenient access to transportation hubs 789k sf, including 12k sf of retail; 68% LTV Woolworth Building Blackstone Mortgage Trust 25

27 Sample Transaction: Aldwych House 78 million floating rate, first mortgage loan secured by Aldwych House in central London Well located 162k sf prime office building undergoing 28.0 million, value-enhancing, refurbishment; 50% LTV Transaction sourced through existing Blackstone relationship with local operating partner paired with a well capitalized institutional sponsor Aldwych House Blackstone Mortgage Trust 26

28 Illustrative Loan Economics (a) BXMT s senior loans are supported by significant owner s equity Prudent use of balance sheet leverage drives attractive risk adjusted returns for BXMT stockholders LTV Capital Structure $ Cum. Credit Facility Advance $80.0 million 53.3% $80.0 million BXMT Equity $20.0 million 66.7% $100.0 million Owner Equity $50.0 million 100.0% $150.0 million L+4.0% Return on Assets (b) Leverage L+12.0% Gross ROI Overhead (c) L+8.7% Imputed Core ROE L+2.0% All-in Cost (b) 80% Advance Rate 4x Leverage Multiple 2.0% Spread 1.5% Management Fee 0.4% G&A 1.0% Working Capital 0.4% Incentive Fee (a) (b) (c) This illustration is presented solely for demonstrating our business model and should not be viewed as indicative of the results that will be achieved for any particular loan in BXMT s portfolio or of BXMT s aggregate results. The loan economics presented are hypothetical and are subject to various risks and uncertainties. See Forward Looking Statements and Other Matters at the beginning of the presentation for further discussion of such risks and uncertainties. Whole loan yield and all-in cost of leverage include amortization of fees and expenses pursuant to GAAP in addition to current pay rates, and assume no defaults Overhead allocations are illustrative, actual allocations vary materially and depend on expenses incurred, working capital and defensive liquidity needs, overall capital deployment and performance among other factors Blackstone Mortgage Trust 27

29 BXMT Relative Value Blackstone provides compelling relative value compared to other listed real estate products Other Comm mreits Resi mreits Equity REITs Yield Dividend Yield Sr. Strategy Senior Loans Floating Rate Low Earnings Volatility Note: The composition of the various categories of REITs being compared with BXMT, as well as the characteristics compared, reflect our current views as of the date appearing in this material only and are not based on any index or other established categorization Blackstone Mortgage Trust 28