Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - BLACKSTONE MORTGAGE TRUST, INC. | d716896d8k.htm |
| EX-99.1 - EX-99.1 - BLACKSTONE MORTGAGE TRUST, INC. | d716896dex991.htm |
 Blackstone Mortgage Trust, Inc.
April 29, 2014
First Quarter 2014 Results
Exhibit 99.2 |
 First Quarter 2014
Highlights Core
Earnings
(a)
of
$0.43
per
share
for
the
quarter
driven
by
a
32%
increase
in
net
interest
margin
in
our Loan Origination portfolio over the fourth quarter of 2013.
BXMT
closed
10
floating-rate
senior
mortgage
loans
during
the
quarter
representing
total
commitments of $892 million, including its second loan in the U.K.
Total
Loan
Origination
portfolio
of
$2.7
billion
as
of
March
31,
2014,
with
a
weighted
average
LTV
of
63%.
Closed
two
new
revolving
credit
facilities
during
the
quarter,
including
a
£250
million
pound
sterling
denominated
credit
facility,
bringing
total
credit
capacity
to
$2.7
billion.
Net
income
of
$13
million,
or
$0.34
per
share,
for
the
quarter
and
consolidated
book
value
of
$970
million, or $24.63 per share, as of March 31, 2014.
First quarter dividend of $0.48 per share, up from $0.45 per share in the fourth quarter of
2013. Issued
9.8
million
shares
of
common
stock
in
January
generating
net
proceeds
of
$256
million;
and
in
April,
issued
an
additional
9.2
million
shares
of
common
stock
at
a re-offer
price
of
$28.15
per
share,
generating
net
proceeds
of
$255
million
and
increasing
book
value
by
$0.58 to a pro forma $25.21
per share.
________________________________________________
Blackstone Mortgage Trust
1
(a)
See page 2, First Quarter 2014 Balance Sheet, Results, and Core Earnings, for a reconciliation
of Core Earnings to GAAP net income.
|
 Blackstone Mortgage Trust
2
Totals may not add due to
rounding. (a) See pages 9-10, Consolidated and Segment Balance Sheets; pages
11-12, Consolidated and Segment Statements of Operations; and page 15, Definitions.
(b)
Includes stockholders’ equity of $970.1 million, less the net of (i) cash and cash
equivalents of $70.8 million, (ii) accrued interest receivable, prepaid expenses, and other assets of
$22.2 million, and (iii) accounts payable, accrued expenses, and other liabilities of $29.9
million. (c) Adjustment represents non-cash amortization of the deemed
issue discount on convertible notes resulting from the conversion option value accounting
under GAAP.
First
Quarter
2014
Balance
Sheet,
Results,
and
Core
Earnings
(a)
________________________________________________
($ in Millions)
CT Legacy Portfolio
($1.0)
Secured debt
obligations
($11.6)
Equity
and
other
(b)
($1.8)
($4.4)
Loan Origination
portfolio
$32.0
$13.1
$1.0
$0.4
(c)
$1.8
$-
$-
Interest income
Interest expense
Non-cash comp.
G&A expenses
Net results
$32.0
$-
($11.2)
$-
($4.4)
Core
Earnings
Net
Income
$16.3
+
+
+
+
Convertible notes,
net
Balance Sheet
$907
$160
$24
$1,620
$2,663 |
 Blackstone Mortgage Trust
3
Loan Origination Portfolio
Loan Origination Portfolio Statistics
($ in Millions)
Loan Origination Portfolio
(Net Book Value, $ in Millions)
Mar. 31, 2014
Number of loans
38
Principal balance
2,686
$
Net book value
2,663
$
Wtd. avg. LTV
63%
Wtd. avg. cash coupon
(a)
L + 4.59%
Wtd. avg. all-in yield
(a)
L + 5.16%
Wtd. avg. gross return on investment
(a)(b)
L + 12.7%
Wtd. avg. maximum maturity
(c)
4.0 yrs.
(a)
As of March 31, 2014, 95% of BXMT’s loans are indexed to one-month LIBOR and 5% are
indexed to three-month LIBOR. In addition, 26% of BXMT’s loans have LIBOR floors, with an
average floor of 0.35% as of March 31, 2014. (b)
Weighted average gross return on investment is based on each asset’s
all-in yield, assuming current pay rates with no dispositions, early payments, or defaults, and all-in cost of secured
debt, assuming full leverage at the asset level based on the maximum available leverage in
place or in negotiation with respect to each investment, notwithstanding the amount actually
borrowed in a given period. Gross return on investment excludes costs related to BXMT’s
convertible notes, management fees, and corporate-level expenses.
(c)
Maximum maturity assumes all extension options are exercised, however BXMT’s loans may be
repaid prior to such date.
$753
$1,286
$2,000
$2,663
2Q'13
3Q'13
4Q'13
1Q'14
________________________________________________
Loan
Origination
portfolio
totaled
$2.7
billion
of
floating-rate
loans
as
of
March
31,
2014,
with
a
weighted
average LTV of 63%.
During
the
quarter,
BXMT
closed
10
new
loans
with
total
commitments
of
$892.0
million.
BXMT
funded
$740.2
million
of
new
and
existing
loan
commitments,
and
received
$72.8
million
of
partial
repayments
from four loans. |
 Blackstone Mortgage Trust
4
Portfolio Diversification
Geographic
Diversification
(Net Book Value, $ in Millions)
2.6%
3.2%
OH
0.2%
1.7%
1.7%
3.4%
4.4%
$316,934,052
$416,559,099
Collateral Diversification
(Net Book Value, $ in Millions)
Floating-rate Loans
(Net Book Value, % of Total)
100.0%
Office
Multifamily
Hotel
Other
Senior Mortgage Loans
(Net Book Value, % of Total)
92.4%
$1,080
MI
0.3%
NV
0.4%
1.2%
OR
RI
VA
AZ
IL
3.4%
CO
FL
TX
U.K.
4.5%
GA
4.9%
WA
7.8%
CA
19.3%
NY
41.0%
$1,080
$692
$275
$616
________________________________________________
Information as of March 31, 2014. (a) Includes only loans in the Loan Origination portfolio. (b)
Includes senior mortgage loans, related contiguous subordinate loans with a net
book value of $53.7 million, and pari passu participations in senior mortgages.
(a)
(a)
(a)(b)
(a)
BXMT’s floating-rate portfolio is diversified by collateral property type
and geographic location, and is primarily comprised of senior mortgages and
similar credit quality loans.
|
 Blackstone Mortgage Trust
5
Secured Credit Facilities
(a)
and Liquidity
________________________________________________
`
$220.9 million
Available Borrowings
L + 2.36%
Wtd. Avg. All-in Cost of Secured Credit
$2.7 billion
Total
Credit
Capacity
(a)
(a)
Excludes $90.0 million of loan participations sold as of March 31, 2014. (b)
Potential borrowings represent the total amount that could be drawn under each
facility based on collateral already approved and pledged. When undrawn, these
amounts are immediately available to BXMT at its sole discretion under the terms of each revolving credit facility.
(c)
The maximum facility size is composed of a $250.0 million facility, a £153.0 million
($252.5 million) facility, and $71.6 million related solely to a specific asset with
a repurchase date of June 27,
2014. (d) The maximum facility size is composed of a $500.0 million
revolving facility and three asset-specific financings totaling $253.5 million.
(e)
The maximum facility size represents a £250.0 million ($412.6 million) facility. Collateral Asset
Maximum
Principal
Debt Obligations
(a)(b)
($ in Thousands)
Facility Size
Balance
Potential
Outstanding
Available
Lender 1
500,000
$
461,041
$
364,813
$
364,813
$
-
$
Lender 2
500,000
654,924
489,340
307,175
182,165
Lender 3
(c)
574,130
567,368
437,867
429,978
7,889
Lender 4
(d)
753,479
522,507
392,681
361,806
30,875
Lender 5
(e)
412,600
83,335
66,016
66,016
-
Total
2,740,209
$
2,289,175
$
1,750,717
$
1,529,788
$
220,929
$
During
the
quarter,
BXMT
closed
two
additional
credit
facilities,
totaling
$912.6
million,
including
a
£250.0
million
pound
sterling
denominated
credit
facility,
bringing
total
credit
capacity
to
$2.7
billion.
Total
liquidity
was
$291.8
million
as
of
March
31,
2014,
including
cash
and
available
borrowings.
•
Undrawn
revolving
debt
does
not
incur
interest,
but
represents
immediately
accessible
liquidity. |
 Blackstone Mortgage Trust
6
As of March 31, 2014:
•
$2.7
billion
of
floating-rate
loans,
indexed
to
LIBOR.
•
$1.6
billion
of
floating-rate
liabilities,
also
indexed to LIBOR.
•
Return
on
net
investment
of
$1.1
billion
increases with increasing LIBOR.
–
All
else
equal,
as
of
March
31,
2014,
a
100bp
increase
in
LIBOR
would
increase
net
interest
income
by
$9.6
million
(b)
per
year, or $0.25 per share.
Floating-Rate Business Model
Loan Capitalization
(a)
(Principal Balance, $ in Millions)
________________________________________________
Floating-rate
loans
Floating-rate
borrowings
Floating-rate
Net investment
$1,066
$1,620
$2,686
(a)
Includes only the Loan Origination portfolio with an aggregate principal balance of $2.7
billion, capitalized with $1.6 billion of secured borrowings, and with a $1.1
billion net investment as of March 31, 2014. Excludes the assets, liabilities, and equity of the CT Legacy Portfolio.
(b)
Includes the impact of LIBOR floors for loan receivable investments, where such floors are
paying relative to LIBOR of 0.15% as of March 31, 2014.
Because of BXMT’s LIBOR-based lending and funding business model, its
returns increase with rising
short-term interest rates. |
 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.
Deferred
revenue
from
this
investment
produced
a
negative
component
book
value
due
to
prior
tax-advance
distributions.
CT Legacy Portfolio’s taxable income contributes to BXMT’s quarterly
dividends. CT
Legacy
Portfolio
loss
during
the
quarter
due
to
continued
volatility
in
the
recovery
of
legacy
assets,
and
the resultant $1.3 million loss on investments at fair value.
Book Value
(a)
($ per share)
________________________________________________
(a)
For calculation of segment Book Value per share, refer to BXMT’s Form 10-Q for the
three months ended March 31, 2014. (b)
Represents the net unrealized promote allocable to BXMT, after amounts payable under legacy
compensation plans. Unrealized CTOPI
Promote
(b)
($ in Millions)
CT Legacy Portfolio
Component Book Value
($ in Millions)
$0.60
$24.03
Loan
Origination
CT Legacy
Blackstone Mortgage Trust
7
$13.5
$14.9
$18.0
$18.5
2Q'13
3Q'13
4Q'13
1Q'14
1Q'14
CTOPI
CT Legacy
Partners
CT CDO I
and other
Total
($10.2)
$23.5
$10.4
$23.7 |
 Appendix |
 Blackstone Mortgage Trust
9
Consolidated Balance Sheet
($ in Thousands, Except per Share Data)
Mar. 31, 2014
Dec. 31, 2013
Assets
Cash and cash equivalents
70,834
$
52,342
$
Restricted cash
10,677
10,096
Loans receivable, net
2,710,159
2,047,223
Equity investments in unconsolidated subsidiaries
23,394
22,480
Accrued interest receivable, prepaid expenses, and other assets
79,323
80,639
Total assets
2,894,387
$
2,212,780
$
Liabilities and equity
Accounts payable, accrued expenses, and other liabilities
66,711
$
56,972
$
Repurchase obligations
1,529,788
1,109,353
Convertible notes, net
160,094
159,524
Securitized debt obligations
39,394
40,181
Participations sold
90,000
90,000
Total liabilities
1,885,987
1,456,030
Equity
Class A common stock, $0.01 par value
387
$
288
$
Restricted class A common stock, $0.01 par value
6
7
Additional paid-in capital
1,510,860
1,252,986
Accumulated other comprehensive income
834
798
Accumulated deficit
(542,004)
(536,170)
Total Blackstone Mortgage Trust, Inc. stockholders' equity
970,083
717,909
Non-controlling interests
38,317
38,841
Total equity
1,008,400
756,750
Total liabilities and equity
2,894,387
$
2,212,780
$ |
 Blackstone Mortgage Trust
10
Consolidated Balance Sheet: Segment Allocation
March 31, 2014
($ in Thousands)
Loan
Origination
CT Legacy
Portfolio
Total
Assets
Cash and cash equivalents
70,834
$
-
$
70,834
$
Restricted cash
-
10,677
10,677
Loans receivable, net
2,663,159
47,000
2,710,159
Equity investments in unconsolidated subsidiaries
-
23,394
23,394
Accrued interest receivable, prepaid expenses, and other assets
22,163
57,160
79,323
Total assets
2,756,156
$
138,231
$
2,894,387
$
Liabilities and equity
Accounts payable, accrued expenses, and other liabilities
29,922
$
36,789
$
66,711
$
Repurchase obligations
1,529,788
-
1,529,788
Convertible notes, net
160,094
-
160,094
Securitized debt obligations
-
39,394
39,394
Participations sold
90,000
-
90,000
Total liabilities
1,809,804
76,183
1,885,987
Equity
Total Blackstone Mortgage Trust, Inc. stockholders' equity
946,352
23,731
970,083
Non-controlling interests
-
38,317
38,317
Total equity
946,352
62,048
1,008,400
Total liabilities and equity
2,756,156
$
138,231
$
2,894,387
$ |
 Blackstone Mortgage Trust
11
Consolidated Statement of Operations
Three Months Ended March 31,
($ in Thousands, Except per Share Data)
2014
2013
Income from loans and other investments
Interest and related income
33,656
$
1,456
$
Less: Interest and related expenses
12,074
777
Income from loans and other investments, net
21,582
679
Other expenses
Management fees
3,397
63
General and administrative
3,199
1,975
Total other expenses
6,596
2,038
Impairments, provisions, and valuation adjustments
(1,339)
(200)
Income (loss) before income taxes
13,647
(1,559)
Income tax provision
531
38
Net income (loss)
13,116
$
(1,597)
$
Net income attributable to non-controlling interests
(51)
(1,518)
Net income (loss) attributable to Blackstone Mortgage Trust, Inc.
13,065
$
(3,115)
$
Per share information (basic)
Weighted-average shares of common stock outstanding
37,967,365
3,016,425
Net income (loss) per share of common stock
0.34
$
(1.03)
$
Per share information (diluted)
Weighted-average shares of common stock outstanding
37,967,365
3,016,425
Net income (loss) per share of common stock
0.34
$
(1.03)
$
|
 Blackstone Mortgage Trust
12
Consolidated Statement of Operations: Segment Allocation
Three Months Ended March 31, 2014
($ in Thousands)
Loan
Origination
CT Legacy
Portfolio
Total
Income from loans and other investments
Interest and related income
32,035
$
1,621
$
33,656
$
Less: Interest and related expenses
11,626
448
12,074
Income from loans and other investments, net
20,409
1,173
21,582
Other expenses
Management fees
3,397
-
3,397
General and administrative expenses
2,846
353
3,199
Total other expenses
6,243
353
6,596
Loss on investments at fair value
-
(1,339)
(1,339)
Income (loss) before income taxes
14,166
(519)
13,647
Income tax provision
131
400
531
Net income (loss)
14,035
$
(919)
$
13,116
$
Net income attributable to non-controlling interests
-
(51)
(51)
Net income (loss) attributable to Blackstone Mortgage Trust, Inc.
14,035
$
(970)
$
13,065
$ |
 Blackstone Mortgage Trust
13
Consolidated Statement of Operations: Loan Origination Segment
Three Months Ended
($ in Thousands)
Mar 31, 2014
Dec 31, 2013
$ Change
% Change
Income from loans and other investments
Interest and related income
32,035
$
24,570
$
7,465
$
30.4%
Less: Interest and related expenses
11,626
9,063
2,563
28.3%
Income from loans and other investments, net
20,409
15,507
4,902
31.6%
Other expenses
Management fees
3,397
2,521
876
34.7%
General and administrative expenses
2,846
2,225
621
27.9%
Total other expenses
6,243
4,746
1,497
31.5%
Income before income taxes
14,166
10,761
3,405
31.6%
Income tax provision
131
12
119
N/M
Net income
14,035
$
10,749
$
3,286
$
30.6% |
 Blackstone Mortgage Trust
14
Loan Origination Segment Portfolio Details
The following table provides details of BXMT’s Loan Origination Segment
portfolio as of March 31, 2014: ________________________________________________
(a)
Includes senior mortgage loans, related contiguous subordinate loans with a net book value of
$53.7 million, and pari passu participations in mortgages. (b)
As of March 31, 2014, 95% of BXMT’s loans are indexed to one-month LIBOR and 5% are
indexed to three-month LIBOR. In addition, 26% of BXMT’s loans have LIBOR floors,
with an average floor of 0.35% as of March 31, 2014.
(c)
Maximum maturity date assumes all extension options are exercised, however BXMT’s loans
may be repaid prior to such date. (d)
Includes 22 senior mortgage loans with an aggregate principal balance of $988.9 million and
one mezzanine loan with a principal balance of $33.6 million. BXMT also originated the
loan directly senior to this mezzanine loan, but sold the senior loan to finance its overall investment.
($ in Millions)
Origination Date
Loan Type
(a)
Principal
Balance
Book
Value
Cash
Coupon
(b)
All-In
Yield
(b)
Maximum
Maturity
(c)
Geographic
Location
Property
Type
Origination
LTV
Loan 1
6/7/13
Senior mortgage loan
194.0
$
193.3
$
L + 3.80%
L + 3.97%
6/15/18
CA
Office
51%
Loan 2
11/21/13
Senior mortgage loan
181.0
179.4
L + 4.50%
L + 4.86%
11/9/18
NY
Multifamily
68%
Loan 3
10/23/13
Sub. mortgage part.
173.8
167.6
L + 5.66%
L + 9.25%
4/9/15
WA
Office
67%
Loan 4
12/17/13
Senior mortgage loan
140.0
138.8
L + 4.75%
L + 5.27%
1/9/19
NY
Office
70%
Loan 5
1/30/14
Senior mortgage loan
125.0
124.3
L + 4.30%
L + 4.63%
12/1/17
NY
Hotel
38%
Loan 6
2/25/14
Senior mortgage loan
101.0
99.5
L + 4.40%
L + 4.81%
3/9/19
Diversified
Hotel
49%
Loan 7
2/20/14
Senior mortgage loan
93.2
92.8
L + 4.40%
L + 4.59%
3/9/19
NY
Office
68%
Loan 8
10/30/13
Senior mortgage loan
91.8
91.3
L + 4.38%
L + 4.62%
11/9/18
CA
Hotel
71%
Loan 9
9/30/13
Senior mortgage loan
89.5
89.4
L + 3.70%
L + 3.83%
9/30/20
NY
Multifamily
62%
Loan 10
8/8/13
Senior mortgage loan
86.0
85.5
L + 4.25%
L + 4.64%
8/10/18
Diversified
60%
Loan 11
3/4/14
Senior mortgage loan
83.3
81.1
L + 4.00%
L + 4.63%
3/4/18
UK
Office
50%
Loan 12
6/27/13
Senior mortgage loan
80.6
80.3
L + 3.85%
L + 4.03%
7/9/18
GA
Multifamily
75%
Loan 13
10/2/13
Senior mortgage loan
78.2
77.5
L + 5.00%
L + 5.38%
9/14/18
Diversified
64%
Loan 14
3/17/14
Senior mortgage loan
73.3
73.1
L + 4.75%
L + 4.95%
12/28/16
NY
Multifamily
66%
Loan 15
5/21/13
Senior mortgage loan
73.0
72.9
L + 3.95%
L + 3.89%
6/9/18
CA
Office
72%
Loans 16-38
Various
Various
(d)
1,022.5
1,016.4
L + 4.85%
L + 5.32%
Various
Various
Various
65%
Total/Wtd. avg.
2,686.2
$
2,663.2
$
L + 4.59%
L + 5.16%
4.0 years
63%
Diversified
Other |
 Blackstone Mortgage Trust
15
Definitions
Core
Earnings
is
an
adjusted
measure
that
helps
BXMT
to
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.
BXMT
also
uses
Core
Earnings
to
calculate
the
incentive
and
base
management
fees
due
to
its
manager
under
its
management
agreement
and,
as
such,
BXMT
believes
that
the
disclosure
of
Core
Earnings
is useful to investors.
Core
Earnings
is
defined
as
GAAP
net
income
(loss),
including
realized
losses
not
otherwise
included
in
GAAP
net
income
(loss),
and
excluding
(i)
net
income
(loss)
attributable
to
CT
Legacy
Portfolio
segment,
(ii)
non-cash
equity
compensation
expense,
(iii)
incentive
management
fees,
(iv)
depreciation
and
amortization,
and
(v)
unrealized
gains
(losses)
or
similar
non-cash
items,
including
the
amortization
of
the
deemed
issue
discount
on
BXMT’s
convertible
notes
resulting
from
the
conversion
option
value
accounting
under
GAAP.
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
cash
flow
from
GAAP
operating
activities,
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.
Blackstone
Mortgage
Trust
discloses
the
following
financial
measures
that
are
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: |
 Blackstone Mortgage Trust
Forward-Looking Statements
16
This
presentation
may
contain
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’s
current
views
with
respect
to,
among
other
things,
Blackstone
Mortgage
Trust’s
operations
and
financial
performance.
You
can
identify
these
forward-looking
statements
by
the
use
of
words
such
as
“outlook,”
“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.
Blackstone
Mortgage
Trust
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,
2013,
as
such
factors
may
be
updated
from
time
to
time
in
its
periodic
filings
with
the
Securities
and
Exchange
Commission
which
are
accessible
on
the
SEC’s
website
at
www.sec.gov.
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.
Blackstone
Mortgage
Trust
assumes
no
obligation
to
update
or
supplement
forward-looking
statements
that
become
untrue
because of subsequent events or circumstances. |