Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Investor Presentation (November 2015)
24 slides from Blackstone Mortgage Trust's investor presentation, November 2015
Slide 1: Blackstone Mortgage Trust, November 2015
Mortgage Trust November 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 Blackstone Mortgage Trust, Inc.’s (“BXMT”)
Slide 3: Blackstone Mortgage Trust Overview
Blackstone Mortgage Trust Overview Blackstone Mortgage Trust, Inc. (NYSE: BXMT) is a real estate investment trust that originates and acquires senior loans collateralized by commercial properties in North America and Europe • Portfolio weighted average LTV of 64% • Large scale loan portfolio: $10.
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 $84 billion AUM $10 billion AUM 281 professionals 106 professionals Rated / Approved Special Servicer Global Europe Asia Core+ Drawdown Fund
Slide 5: Superior Real Estate Platform
Superior Real Estate Platform Blackstone Real Estate has proprietary insight, long standing expertise and superior access to deal flow Office 122M Largest owner in U.S. Square Feet Hotel 304k Major investor globally Keys(a) Multifamily 110k Major investor globally Units Retail 166M Most active inv
Slide 6: Seasoned Management Team and Fully Integrated Platform
Seasoned Management Team and Fully Integrated Platform Jonathan Gray John Schreiber Global Head of Real Estate Co‐Founder of Blackstone Real Estate Advisors Member of Blackstone Board of Directors Member of BXMT Board of Directors Member of BREDS Investment Committee Chair of BREDS Investment Commit
Slide 7: Real Estate Market Overview
Real Estate Market Overview Economic conditions are sustaining a favorable commercial real estate market • Liquidity and fundamentals in the commercial real estate market are generally in balance Economy Recovering Positive Capital Feedback Technicals Returning Loop Improving Confidence Growing 6
Slide 8: Real Estate Market Overview
Real Estate Market Overview Limited new supply coupled with modest growth is a favorable investment environment for senior commercial real estate debt U.S. Aggregate Construction U.S. GDP Completions ($ in billions) (Office, Industrial, and Retail Sectors) (Office, Industrial, and Retail Sectors)
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: Sample Transaction: SFO Airport Hotels
Sample Transaction: SFO Airport Hotels $130 million floating rate, first mortgage loan secured by the Westin and aLoft SFO Airport hotels • 72% LTV; $200k per key • Diverse demand drivers including airport traffic and SF/Silicon Valley business overflow Loan upsized by $30 million 15 months afte
Slide 12: Sample Transaction: North Michigan Avenue
Sample Transaction: 401 North Michigan Avenue $190 million floating rate, first mortgage loan secured by 401 North Michigan Avenue in Chicago • Well located class A office building undergoing value-enhancing repositioning; 70% LTV • Initial funding of $145 million with $45 million future funding c
Slide 13: Sample Transaction: Westminster UES
Sample Transaction: Westminster UES $181 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% LTV Sponsored by repeat BXMT borrower that speci
Slide 14: 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 15: Portfolio Diversification
Portfolio Diversification BXMT’s portfolio is diversified by collateral property type and geographic location, and is comprised of primarily senior mortgages and similar credit quality loans. Geographic Diversification (Net Book Value,% of Total) WA CAN Senior Loans(a) 6% (Net Book Value, % of Tot
Slide 16: Interest Rates
Interest Rates Earnings are positively correlated to changes in USD and GBP LIBOR, the benchmark indices for 74% of BXMT’s loan portfolio and related secured financings. Concentration of fixed rate assets in EUR and CAD results in an inverse correlation to EURIBOR and CDOR; an increase in either
Slide 17: Revolving Credit Facilities and Asset-Specific Financing
Financing BXMT has developed $10.4 billion of market leading financing capacity with an emphasis on efficiency and stability ($ in billions) • Seven cross collateralized, bilateral credit agreements Revolving credit facilities provide for efficient liquidity management and all- Revolving • Credit
Slide 18: Illustrative Loan Economics
Illustrative Loan Economics 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. Illustrative Loan Economics(a) Whole Loan Yield(b) L + 4.00% Leverage: Adva
Slide 19: Investment Highlights
Investment Highlights Superior Sponsorship • Affiliation with BX Real Estate, the largest private equity real estate business in the world • Significant alignment of interest: $167 million BX investment(a) • BREDS has approximately $10 billion of AUM Strong Origination Platform • $14.3 billion o
Slide 20: Appendix: 3Q 2015 Earnings Release Excerpts
Appendix: 3Q 2015 Earnings Release Excerpts
Slide 21: Third Quarter 2015 Balance Sheet, Net Income, and Core Earnings
Third Quarter 2015 Balance Sheet, Net Income, and Core Earnings (Dollars in Millions) Balance Net Core Sheet Income Earnings Loan portfolio $9,378 Interest income $136.8 + ($2.0) $134.8 Secured financings $7,093 Interest expense ($51.3) + $0.4 ($50.9) Convertible notes, $164 net CT Legacy net income
Slide 22: 3Q Dividend Analysis
3Q Dividend Analysis The $0.62 dividend reflects the stabilized earnings power of the senior floating rate investment strategy at its increased scale and Core Earnings of $0.72 includes the accretive effects of the GE portfolio acquisition. Core Earnings Stabilization(a) Additional yield from add-
Slide 23: Loan Portfolio Details
Loan Portfolio Details The following table provides details of BXMT’s loan portfolio: (Dollars in Millions) Origination Total Principal Book Cash All‐In Maximum Geographic Property Origination Loan Type Date(a) Loan Balance Value Coupon Yield Maturity(b) Location Type LTV(a) Loan 1 Senior loan 6/1
Slide 24: Mortgage Trust
Mortgage Trust
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