Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Investor Presentation (May 2014)
23 slides from Blackstone Mortgage Trust's investor presentation, May 2014
Slide 1: Blackstone Mortgage Trust, May 2014
Mortgage Trust May 2014
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 primarily originates senior mortgage loans collateralized by commercial properties in the U.S. and Europe We are managed by Blackstone (“BX”), a world leader in real estate inve
Slide 4: Superior Real Estate Platform
Superior Real Estate Platform(1) BX investment committee process and investment philosophy Superior sourcing capabilities through long‐standing industry relationships Underwriting process includes proprietary data from extensive investment holdings Blackstone Real Estate Blackstone Real Estate
Slide 5: Seasoned and Fully Integrated Platform
Seasoned 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 Committee Michael Nash E
Slide 6: Real Estate Market Overview
Real Estate Market Overview Market conditions are sustaining a favorable commercial real estate environment • Liquidity and fundamentals in the commercial real estate market are generally in balance Economy Recovering Positive Capital Feedback Technicals Returning Loop Improving Confidence Growing
Slide 7: Real Estate Market Overview: Limited New Supply
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 Completions U.S. GDP ($ in billions) (Office, Industrial, and Retail Sectors) (Office, Industrial, and Retail Sectors)
Slide 8: Positive Feedback Loop: Property Sale Volume
Real Estate Market Overview Improving fundamentals and increased demand are driving volume U.S. Aggregate Property Sale Volume ($ in billions) 600 $571 500 $423 400 $362 Positive $355 Feedback $299 300 Loop $233 $212 200 $174 $147 $130 $106 100 $67 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 20
Slide 9: Positive Feedback Loop: European Banks
Real Estate Market Overview European banks remain overleveraged with enormous real estate exposure Overleveraged Banks(1) Real Estate Deleveraging(2) European banks have over 2x the leverage of U.S. banks… … and have only shed 25% of expected RE dispositions 33x €600B 23x €450B to come 21x Positiv
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 ‐ 80% Rate LIBOR + 3.75% and higher, scaled to risk Term 3 to 5 years
Slide 11: BXMT Sample Transaction: SFO Airport Hotels
BXMT Sample Transaction: SFO Airport Hotels $89.8 million(1) floating rate, first mortgage loan secured by the Westin and aLoft San Francisco Airport hotels • 70.7% LTV; $138,290 per key • Diverse demand drivers including airport traffic and SF/Silicon Valley business overflow Transaction source
Slide 12: BXMT Sample Transaction: SFO Airport Hotels
BXMT Sample Transaction: SFO Airport Hotels BXMT’s floating rate senior mortgage loans are supported by significant owner’s equity Prudent use of balance sheet leverage drives strong risk adjusted returns for BXMT shareholders LTV Capital Structure $ Cum. $/Unit Illustrative Loan Economics(1) Wh
Slide 13: Capital Deployment
Capital Deployment(1) Since May, BXMT has closed $3.5 billion of loans; and another $662 million of loans are currently in closing • 40 loans closed; median loan size is $67 million 100% of BXMT’s new loans are floating rate; 93% are senior mortgage loans Cumulative BXMT Loan Originations ($ in
Slide 14: Portfolio Snapshot: Geographic Diversification
Portfolio Snapshot(1) BXMT’s portfolio is geographically diversified, but weighted toward New York and California WA 7.8% OR 1.2% RI MI 0.3% 1.7% NV 0.4% IL OH NY CO 0.2% 41.0% 3.2% 3.4% VA CA 19.3% 1.7% AZ 2.6% GA TX 4.9% 4.4% U.K. 4.5% FL 3.4% (1) Based on loans outstanding as of March 31, 2014;
Slide 15: Portfolio Snapshot: Property Type and LTV
Portfolio Snapshot(1) Collateral property type tends toward office, hotel and multifamily; portfolio LTVs cluster around the 65% ‐ 70% range The portfolio has a weighted average all‐in yield of L + 5.16% Property Type Diversification Loan to Value ($ in millions) ($ in millions) $1,400 $616 $1,2
Slide 16: Financing
Financing Prudent use of leverage to enhance returns and diversification with an emphasis on stability of the right hand side of the balance sheet Debt Facilities ($2.9 billion in total) • Revolving debt facilities totaling $2.5 billion(1) from five lenders All‐in Pricing(2) L + 2.00% ‐ L + 2.50
Slide 17: 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: $99 million BX investment(1) • BREDS has over $9 billion AUM Strong Origination Platform • $4.2 billion of loans cl
Slide 18: Appendix: 1Q 2014 Earnings Release Excerpts
Appendix: 1Q 2014 Earnings Release Excerpts
Slide 19: First Quarter 2014 Balance Sheet, Results, and Core Earnings
First Quarter 2014 Balance Sheet, Results, and Core Earnings(a) ($ in millions) Balance Sheet Net Core Income Earnings Loan Origination $32.0 $2,663 portfolio Interest income + $- $32.0 $24 CT Legacy Portfolio Net results ($1.0) + $1.0 $- $1,620 Secured debt obligations ($11.2) Interest expense ($11
Slide 20: Floating-Rate Business Model: Loan Capitalization
Floating‐Rate Business Model Because of BXMT’s LIBOR-based lending and funding business model, its returns increase with rising short-term interest rates. As of March 31, 2014: Loan Capitalization(a) (Principal Balance, $ in millions) • $2.7 billion of floating-rate loans, indexed to LIBOR. • $1
Slide 21: Loan Origination Segment Portfolio Details
Loan Origination Segment Portfolio Details The following table provides details of BXMT’s Loan Origination Segment portfolio as of March 31, 2014: ($ in millions) Principal Book Cash All‐In Maximum Geographic Property Origination Origination Date Loan Type(a) Balance Value Coupon(b) Yield(b) Matur
Slide 22: CT Legacy Portfolio
CT Legacy Portfolio The CT Legacy Portfolio primarily consists of BXMT’s carried interest in CT Opportunity Partners I, LP (“CTOPI”), its investment in CT Legacy Partners, and its residual interests in CT CDO I. CTOPI’s net unrealized promote allocable to BXMT increased to $18.5 million. Deferre
Slide 23: Mortgage Trust
Mortgage Trust
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