Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Q2 2018 Earnings Presentation
30 slides from Blackstone Mortgage Trust's earnings presentation, July 2018
Slide 1: 2Q 2018 Earnings Release & Company Supplemental
July 2018 2Q 2018 Earnings Release & Company Supplemental
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 Blackstone Mortgage Trust, Inc. (“BXMT”) c
Slide 3: BXMT Highlights
BXMT Highlights Record quarterly originations(a) of $3.9 billion; GAAP EPS of $0.66 and Core EPS(b) of $0.83 Income Stability Protection Growth $0.62 $12.8B 95% $3.9B 2Q Dividend Senior Loan Portfolio Floating Rate 2Q Originations 7.6% 63% +$0.24 15% Dividend Yield(c) Loan-to-Value(d) Earnings Impac
Slide 4: Second Quarter 2018 Results
Second Quarter 2018 Results EPS of $0.66 and Core Earnings per share(a) of $0.83, of which $0.10 was prepayment Earnings & income on a San Francisco office loan and $0.06 was from the GE reserve reversal(b) Dividends Increased book value per share by $0.13 to $27.08; paid $0.62 per share dividen
Slide 5: Earnings & Dividends
Earnings & Dividends 2Q GAAP earnings of $0.66 per share and Core Earnings(a) of $0.83 per share $0.62 per share dividend equates to a 7.6% dividend yield(b) Dividend Coverage(c) $0.83 $0.16 $0.06 $0.10 GE Reserve Reversal SF Office Prepayment Fee 0% Realized Losses in GE Early Repayment from $0
Slide 6: Loan Originations
Loan Originations Origination volume of $3.9 billion,(a) totaling $5.8 billion 1H’18 and up $3.3 billion from 1H’17 BXMT’s scale and reach provides differentiated access to large loans, which generally have superior asset quality, sponsorship, and credit profile ($ in billions) 2Q Origination Hi
Slide 7: Portfolio Composition
Portfolio Composition $12.8 billion portfolio (107 senior loans) secured by institutional quality real estate with 56% of loans in gateway markets Over 77% of the portfolio is secured by office, multifamily and hotel properties; retail declined to 3% from 7% in 1Q Major Market Focus(a) Collatera
Slide 8: Capitalization
Capitalization Total asset-level financing capacity of $12.3 billion was 69% utilized at quarter-end Raised $104 million of equity through ATM program at $32.13 per share, contributing to 10% growth in BVPS since re-IPO ($ in billions) Financing Book Value Per Share Growth (Outstanding Balance)
Slide 9: Interest Rates
Interest Rates 95% of the portfolio is floating rate A 1.0% increase in USD LIBOR would increase earnings per share by $0.24 per annum(a) Earnings Sensitivity to USD LIBOR(a) Portfolio Fixed vs. Floating (Annual Dollars of Earnings per Share) (% of Total Loan Exposure) $0.70 $0.60 Earnings Per S
Slide 10: Appendix
Appendix Mortgage Trust
Slide 11: Appendix – Second Quarter 2018 Operating Results & Net Funding
Appendix – Second Quarter 2018 Operating Results & Net Funding Operating Results Net Funding ($ in millions) ($ in billions) GAAP Net Core Income Adjustments Earnings $2.2 $(1.4) Interest Income $ 191.5 $ 8.7 $ 200.2 $12.8 $12.1 Interest Expense (87.7) 0.6 (87.1) Management and (22.4) — (22.4) Incen
Slide 12: Loan Portfolio Details
Loan Portfolio Details ($ in millions) Origination Total Principal Net Book Cash All-in Maximum Property Loan Per Origination Loan Type Date (a) Loan (b) Balance (b) Value Coupon Yield Maturity (c) Location Type SQFT / Unit / Key LTV (a) Loan 1 Senior loan 3/22/2018 $ 1,168 $ 1,168 $ 1,160 L + 3.15
Slide 13: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in thousands, except per share data) June 30, 2018 December 31, 2017 Assets Cash and cash equivalents $ 107,057 $ 69,654 Restricted Cash — 32,864 Loans receivable, net 12,214,565 10,056,732 Other assets 60,725 99,575 Total assets $ 12,382,347 $ 10,258,825 Liabilities a
Slide 14: Consolidated Statements of Operations
Consolidated Statements of Operations ($ in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Income from loans and other investments Interest and related income $ 191,479 $ 126,825 $ 346,904 $ 245,341 Less: Interest and related expenses 87,7
Slide 15: Per Share Calculations
Per Share Calculations (Amounts in thousands, except per share data) Three Months Ended June 30, 2018 March 31, 2018 Net income(a) $ 72,312 $ 60,958 GE purchase discount accretion adjustment(b) 8,723 (17) Non-cash compensation expense 6,778 6,976 Core Earnings Realized foreign currency gain, net(c)
Slide 16: Reconciliation of Net Income to Core Earnings
Reconciliation of Net Income to Core Earnings (Amounts in thousands, except per share data) Three Months Ended June 30, Mar 31, Dec 31, Sep 30, 2018 2018 2017 2017 Net income(a) $ 72,312 $ 60,958 $ 57,891 $ 57,722 GE purchase discount accretion adjustment(b) 8,723 (17) (483) (138) Non-cash compensat
Slide 17: Definitions
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 S
Slide 18: Company Supplemental
Company Supplemental Mortgage Trust
Slide 19: Senior Lending Overview
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 Affiliation with BX, largest real estate Superior Sponsorship private equity business in the world Attractive current incom
Slide 20: Superior Real Estate Platform
Superior Real Estate Platform Blackstone Real Estate is a premier debt and equity investment and asset management platform Investor Capital Under Management BPP Core 27% BREP Asia $16 billion AUM 11% 107 professionals BREP Europe $119B BREDS 13% Blackstone BREDS Drawdown BREDS Liquid 16% Mortgage
Slide 21: Superior Real Estate Platform
Superior Real Estate Platform(a) One of the largest real estate owners and operators in every sector and geography Current Holdings Office 237M Square Feet Hospitality 176k Owned Keys Residential 296k Units Industrial 332M Square Feet (a) As of March 31, 2018. In addition to wholly-owned assets, f
Slide 22: Superior Real Estate Platform
Superior Real Estate Platform 470+ people, 13 offices, 3 distinct strategies but one fully integrated real estate platform Blackstone Advantage Regular Meetings Single Perspective Global Business Weekly • 41% of RE partners have international experience • Partners’ Meeting • Global ICMs 1 Global R
Slide 23: BREDS Investment Committee
Superior Real Estate Platform Blackstone’s unique investment process is complemented by fully-integrated corporate infrastructure BREDS Investment Committee Kenneth Caplan Kathleen McCarthy Nadeem Meghji Global C0-Head of Real Estate Global Co-Head of Real Estate Head of Real Estate Americas Senio
Slide 24: 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 50% to 80% Rate LIBOR + 3.50% and higher, scaled to risk Term 3 to 5 ye
Slide 25: Sample Transaction: 123 Mission
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
Slide 26: Sample Transaction: Westin Maui
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 co
Slide 27: Sample Transaction: Woolworth Building
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 Woolwo
Slide 28: Sample Transaction: Aldwych House
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
Slide 29: Illustrative Loan Economics
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. L+4.0% Return on Assets(b) L+2.0% All-in Cost(b) Credit Facility Advance
Slide 30: BXMT Relative Value
BXMT Relative Value Blackstone provides compelling relative value compared to other listed real estate products Other Comm Resi Equity mREITs mREITs REITs Yield Dividend Yield Sr. Strategy Senior Loans Floating Rate Low Earnings Volatility Note: The composition of t
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