Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Investor Presentation (February 2015)
26 slides from Blackstone Mortgage Trust's investor presentation, February 2015
Slide 1: Mortgage Trust February 2015
Mortgage Trust February 2015
Slide 2: Forward-Looking Statements and Other Matters
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 the current views of Blackstone Mortgage T
Slide 3: Blackstone Mortgage Trust Overview
Blackstone Mortgage Trust Overview Blackstone Mortgage Trust, Inc. (NYSE: BXMT) is a real estate investment trust that originates senior loans collateralized by commercial properties in North America and Europe • Portfolio weighted average LTV of 64% • Approximately 60% of the collateral located i
Slide 4: Superior Real Estate Platform
Superior Real Estate Platform Blackstone Real Estate is a premier debt and equity investment and asset management platform Blackstone Real Estate Equity Debt $72 billion AUM $9 billion AUM 244 professionals 76 professionals Rated / Approved Special Servicer Global Europe Asia Core+ Drawdown Funds
Slide 5: Superior Real Estate Platform
Superior Real Estate Platform Blackstone Real Estate has proprietary insight, long standing expertise and superior access to deal flow Office 96M Largest owner in U.S. Square Feet Hotel 300k Largest operator globally Keys Multifamily 45k Major investor globally Units Retail 154M Most active invest
Slide 6: Seasoned Management Team and Fully Integrated Platform
Seasoned Management Team and Fully Integrated Platform Jonathan Gray John Schreiber Global Head of Real Estate Co‐Founder of Blackstone Real Estate Advisors Member of Blackstone Board of Directors Member of BXMT Board of Directors Member of BXMT Investment Committee Chair of BXMT Investment Committe
Slide 7: Real Estate Market Overview
Real Estate Market Overview Economic conditions are sustaining a favorable commercial real estate market • Liquidity and fundamentals in the commercial real estate market are generally in balance Economy Recovering Positive Capital Feedback Technicals Returning Loop Improving Confidence Growing 6
Slide 8: Real Estate Market Overview
Real Estate Market Overview Limited new supply coupled with modest growth is a favorable investment environment for senior commercial real estate debt U.S. Aggregate Construction U.S. GDP Completions ($ in billions) $17,711 (Office, Industrial, and Retail Sectors) (Office, Industrial, and Retail S
Slide 9: Real Estate Market Overview
Real Estate Market Overview Debt markets are normalizing; CMBS issuance is still below peak levels U.S. CRE Debt Holders Global CMBS Issuance ($ in billions) ($ in billions) (Office, Industrial, and Retail Sectors) (Office, Industrial, and Retail Sectors) $420 Life GSEs Companies $360 $236 $351 Ot
Slide 10: Target Investments
Target Investments Loan Size $50 million to $500 million Collateral First mortgages on stabilized or transitional assets Property Type All commercial property types Geographies North America and Europe Loan to Value Last dollar 60 to 80% Rate LIBOR + 3.50% and higher, scaled to risk Term 3 to 5 year
Slide 11: Capital Deployment
Capital Deployment Since May 2013, BXMT has closed 64 loans representing $5.9 billion of commitments • Average loan size is $92 million Cumulative BXMT Loan Originations ($ in millions) $6,000 Senior Loans $5,500 Floating Rate% of (Net Book Value, Loans Total) (Net Book Value, % of Total) $5,000 9
Slide 12: Portfolio Snapshot
Portfolio Snapshot BXMT’s portfolio is geographically diversified; weighted toward New York, California and the UK WA CAN 2.3% 3.1% OR 0.9% RI MI 0.7% 0.2% NV 0.2% OH 0.2% NY CO IL VA 30.5% 2.1% 7.2% CA KY 1.5% 13.1% 0.1% NC DC AZ 0.2% 1.8% 1.6% GA TX 4.9% 5.2% HI FL NL 1.1% UK 6.3% 0.8% 14.1% ES
Slide 13: Portfolio Snapshot
Portfolio Snapshot Collateral property types are primarily office, hotel and multifamily; loan-to-value ratios are most frequently in the 65% - 70% range The portfolio has a weighted average all-in yield of L + 4.81% Property Type Diversification Loan to Value ($ in millions) $1,600 Retail Other
Slide 14: BXMT Sample Transaction: SFO Airport Hotels
BXMT Sample Transaction: SFO Airport Hotels $100.0 million floating rate, first mortgage loan secured by the Westin and aLoft SFO Airport hotels • 70.7% LTV; $154k per key • Diverse demand drivers including airport traffic and SF/Silicon Valley business overflow Transaction sourced through exist
Slide 15: BXMT Sample Transaction: North Michigan Avenue
BXMT Sample Transaction: 401 North Michigan Avenue $190.0 million floating rate, first mortgage loan secured by 401 North Michigan Avenue in Chicago • Well located class A office building undergoing value-enhancing repositioning; 69.7% LTV • Initial funding of $145.0 million with $45.0 million fut
Slide 16: BXMT Sample Transaction: Westminster UES
BXMT Sample Transaction: Westminster UES $181.0 million floating rate, first mortgage loan secured by The Westminster apartment building located on Manhattan’s Upper East Side • 150 unit multifamily rental building undergoing condominium conversion • 68.3% LTV Sponsored by repeat BXMT borrower t
Slide 17: BXMT Sample Transaction: Aldwych House
BXMT Sample Transaction: Aldwych House £78.0 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 • 50.4% LTV Transaction sourced through existing Blackstone rel
Slide 18: BXMT Illustrative Loan Economics
BXMT Illustrative Loan Economics BXMT’s floating rate senior loans are supported by significant owner’s equity Prudent use of balance sheet leverage drives attractive risk adjusted returns for BXMT shareholders LTV Capital Structure $ Cum. Illustrative Loan Economics(a) Whole Loan Yield(b) L + 4
Slide 19: Financing
Financing The mainstay of BXMT’s financing capacity is comprised of six credit facilities totaling $3.4 billion(a) • Revolving credit facilities provide for efficient liquidity management Capacity $3.4 billion(a) All-in Pricing(b) L + 1.70% - L + 2.00% Advance Rate 75% - 80% Term Term matched to e
Slide 20: Financing (Cont'd)
Financing (Cont’d) Asset specific financings augment BXMT’s leverage strategy • Non-revolving; generally non-recourse • Pricing directly related to underlying collateral assets ($ in Millions) • Non-cross collateralized, with limited recourse and margin call Asset-Specific provisions Repurchase •
Slide 21: BXMT Investment Highlights
BXMT Investment Highlights Superior Sponsorship • Affiliation with BX Real Estate, the largest private equity real estate business in the world • Significant alignment of interest: $111 million BX investment(a) • BREDS has approximately $9 billion AUM Strong Origination Platform • $5.9 billion o
Slide 22: Appendix: 4Q & FY 2014 Earnings Release Excerpts
Appendix: 4Q & FY 2014 Earnings Release Excerpts
Slide 23: Fourth Quarter 2014 Balance Sheet, Net Income, and Core Earnings
Fourth Quarter 2014 Balance Sheet, Net Income, and Core Earnings (Dollars in Millions) Balance Net Core Sheet Income Earnings $4,429 Interest income $57.5 + $- $57.5 Loan Origination portfolio Net results ($4.8) + $4.8 $- CT Legacy portfolio $22 Secured financings $2,865 Interest expense ($21.3) + $
Slide 24: Floating Rate Business Model
Floating Rate Business Model BXMT’s LIBOR-based(a) lending and funding business model generates increasing returns with rising short-term interest rates. All else equal, a 100bp increase in LIBOR would increase annual net interest income by $0.26 per share(b). (c) Loan Capitalization Income Sens
Slide 25: Loan Origination Segment Portfolio Details
Loan Origination Segment Portfolio Details The following table provides details of BXMT’s Loan Origination Segment portfolio: (Dollars in Millions) Origination Total Principal Book Cash All‐In Maximum Geographic Property Origination Date Loan Type Commitment Balance Value Coupon Yield Maturity(a)
Slide 26: Mortgage Trust
Mortgage Trust
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