Attached files
file | filename |
---|---|
EX-99.1 - EX-99.1 - BLACKSTONE MORTGAGE TRUST, INC. | d68500dex991.htm |
8-K - 8-K - BLACKSTONE MORTGAGE TRUST, INC. | d68500d8k.htm |
Blackstone Mortgage Trust, Inc. Second Quarter 2020 Results JULY 29, 2020 Exhibit 99.2 |
Blackstone | Blackstone Mortgage Trust, Inc. 1 BXMT HIGHLIGHTS (1) Includes $740 million of Non-Consolidated Senior Interests and investment exposure to the $857 million 2018 Single Asset
Securitization through an $82 million subordinate interest.
(2) Reflects weighted average LTV as of the date investments were originated or acquired by BXMT.
(3) Represents $13.5 billion of asset-specific financings, consisting of $3.0 billion of securitizations, $1.0 billion of senior
syndications and $9.4 billion of credit facilities (of which $8.9 billion are term matched to the current maturity of their respective loans) (4) Represents (i) total outstanding secured debt agreements, secured term loans, and convertible notes, less cash, to (ii) total
equity. (5)
Total liquidity includes $1,260 million of cash and $97 million of
available borrowings under credit facilities, reduced by $22 million of pending net principal payments. BXMT delivered strong earnings in 2Q from its $18.0 billion (1) senior loan portfolio Raised $607 million of capital in 2Q, further fortifying its balance sheet and growing liquidity
100% senior loans (1) 64% origination loan-to-value (1)(2) 96% term matched financing (3) 2.6x debt-to-equity ratio (4) $1.3B total liquidity (5) +60% 2Q increase All senior loan portfolio with significant equity cushion Long duration liabilities, with no capital markets mark-to-market Substantial liquidity to defend assets and fund new loans Protected Credit Stable Balance Sheet |
Blackstone | Blackstone Mortgage Trust, Inc. 2 SECOND QUARTER 2020 RESULTS (1) See Appendix for a definition and reconciliation to GAAP net income.
(2) Includes $740 million of Non-Consolidated Senior Interests and investment exposure to the $857 million 2018 Single Asset
Securitization through an $82 million subordinate interest.
(3) Reflects weighted average LTV as of the date investments were originated or acquired by BXMT.
(4) Includes $740 million of Non-Consolidated Senior Interests and $775 million of Non-Consolidated Securitized Debt
Obligations. (5)
Total liquidity includes $1,260 million of cash and $97 million of
available borrowings under credit facilities, reduced by $22 million of pending net principal payments. Earnings 2Q GAAP earnings per share of $0.13 and Core Earnings (1) per share of $0.62; book value per share of $26.45 GAAP EPS and BVPS reflect $57 million increase in 2Q CECL reserve, primarily
resulting from specific CECL reserves recorded on two impaired
loans $8.8 billion of the loan portfolio benefits from
active USD LIBOR floors with an average strike price of
1.47% as of quarter end Portfolio
$18.0 billion
(2) senior loan portfolio secured by institutional quality real estate in
major markets, with a weighted average origination LTV
(2)(3)
of 64%
$386 million of loan repayments and $317 million of loan fundings
during the quarter
100% interest collection in 2Q reflects quality of our portfolio and
commitment by sponsors to their assets
Capitalization
$13.5 billion
(4) of match-funded, asset-level financing on pre-pandemic terms with
no capital markets mark-to-market provisions
Executed agreements with seven largest credit facility lenders to
temporarily suspend credit mark provisions and increase
asset management flexibility for certain collateral
assets Generated $607 million of gross proceeds from
capital markets transactions, bringing total liquidity to
$1.3 billion (5) |
Blackstone | Blackstone Mortgage Trust, Inc. 3 EARNINGS (1) See Appendix for a definition and reconciliation to GAAP net income.
(2) Weighted average strike price of floating rate loans indexed to USD LIBOR with active floors as of June 30, 2020.
2Q GAAP earnings per share of $0.13 and Core Earnings (1) per share of $0.62 BXMT earnings power is insulated from declining USD LIBOR by interest rate floors in its loan portfolio
Average USD LIBOR
Core Earnings per Share
$8.8B loans with active USD LIBOR floors 1.47% weighted average strike price (2) 2.2% 1.8% 1.4% 0.4% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 3Q '19 4Q '19 1Q '20 2Q '20 $0.64 $0.68 $0.64 $0.62 |
Blackstone | Blackstone Mortgage Trust, Inc. 4 PORTFOLIO (1) Includes $740 million of Non-Consolidated Senior Interests and investment exposure to the $857 million 2018 Single Asset
Securitization through an $82 million subordinate interest.
(2) States comprising less than 1% of total loan portfolio are excluded.
$18.0 billion senior loan portfolio,
(1) comprising 129 loans with 76% of collateral in gateway markets Specific CECL reserves recorded on two NYC assets one hotel and one rent-regulated apartment building particularly challenged by the impact of COVID-19 on revenue generation and high operating costs
Major Market Focus
(1)(2)
Collateral Diversification
(1)
$18.0B portfolio CA 16% MN 1% NV 1% TX 3% CO 1% IL 5% TN, 1% GA 3% FL 5% NY 23% DEU, 2% IT, 1% NL, 1% UK, 11% IR, 7% ES, 7% VA, 4% DC, 2% NJ, 1% MA, 1% AU, 1% HI, 3% Hospitality 17% Multi 11% Industrial 5% Retail 3% Self-Storage 2% Condo 1% Other 6% Office 55% NYC Regulated Multi 1% $18.0B portfolio NYC Hospitality 3% |
Blackstone | Blackstone Mortgage Trust, Inc. 5 CAPITALIZATION (1) Excludes $11 million per annum of scheduled amortization payments under the Term Loan B.
(2) Includes $740 million of Non-Consolidated Senior Interests. (3) Includes $775 million of Non-Consolidated Securitized Debt Obligations.
Asset-level financing is generally term-matched; no corporate
debt maturities until 2022 $13.5 billion of asset-level
financing reflects pre-pandemic economic terms Modified
credit facilities with lenders representing 84% of outstandings to temporarily suspend credit mark provisions and provide increased asset management flexibility for certain collateral assets
Corporate Debt
(1)
(outstanding balance; $ in millions)
$403 $220 $1,009 2020 2021 2022 2023 2024 2025 2026 Convertible Notes Term Loan B Asset-Level Financing (outstanding balance; $ in billions) $13.5B financings (2) (3) Securitizations $3.0% Senior syndications $1.0 Credit facilities $9.4 |
Blackstone | Blackstone Mortgage Trust, Inc. 3/31/2020 Term Loan B Equity Cash Flow Dividends Funding 6/30/2020 Borrowing, net Offering, net From Operations Paid Activity / Other Increased Liquidity ($ in millions) 6 CAPITALIZATION (1) Total liquidity includes $1,260 million of cash and $97 million of available borrowings under credit facilities, reduced by $22
million of pending net principal payments. (2)
Includes a LIBOR floor of 1.00%.
(3) Total liquidity includes $355 million of cash and $480 million of available borrowings under credit facilities, and $1 million of
pending net principal receipts. (4)
Funding Activity / Other includes borrowings and repayments under secured
debt agreements, fundings and repayments of existing loans, and other cash items. Increased liquidity to $1.3 billion; (1) 60% increase from prior quarter end Added a new Term Loan B tranche with a coupon of L+4.75% (2) and completed an equity offering at a 1.04x premium to book value (3) (1) (4) $1,334 $118 $84 $107 $278 $315 $836 |
Blackstone | Blackstone Mortgage Trust, Inc. Appendix 7 |
Blackstone | Blackstone Mortgage Trust, Inc. GAAP Net Income Adjustments Core Earnings Interest income $192.0 $ - $192.0 Interest expense (84.9) 0.3 (84.6) Management and incentive fees (20.5) - (20.5) General and administrative expenses and taxes (2.6) - (2.6) Increase in current expected credit loss reserve (56.8) 56.8 - Non-cash compensation (8.7) 8.7 - Realized hedging and foreign currency income, net (1) - 1.8 1.8 Net income attributable to non- controlling interests (1.0) 0.1 (0.9) Total $17.5 $67.7 $85.2 $18.0 $18.0 $0.3 $0.4 1Q 20 Loans Outstanding Fundings Repayments 2Q 20 Loans Outstanding 8 APPENDIX (1) Primarily represents realized gains on the repatriation of unhedged foreign currency. These amounts are not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements. (2) Excludes the impact of changes in foreign currency rates and related hedges for non-USD investments.
(3) Includes $692 million of Non-Consolidated Senior Interests and investment exposure to the $881 million 2018 Single Asset
Securitization through an $84 million subordinate interest.
(4) Includes $740 million of Non-Consolidated Senior Interests and investment exposure to the $857 million 2018 Single Asset
Securitization through an $82 million subordinate interest. Net Fundings (2) ($ in billions) Operating Results ($ in millions) $0.13 net income per share $0.62 core earnings per share (3) (4) |
Blackstone | Blackstone Mortgage Trust, Inc. APPENDIX (1) Portfolio excludes our $82 million subordinate interest in the $857 million 2018 Single Asset Securitization.
(2) Date loan was originated or acquired by us, and the LTV as of such date. Origination dates are subsequently updated to reflect
material loan modifications. (3)
In certain instances, loans are financed through the non-recourse
sale of a senior loan interest that is not included in the consolidated financial statements. As of June 30, 2020, five loans in the portfolio have been financed with an aggregate $740 million of Non-Consolidated Senior Interests, which are included in the
table above. (4)
Maximum maturity assumes all extension options are exercised; however,
floating rate loans generally may be repaid prior to their final maturity without penalty. (5) Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for
weighted-average calculation. 9
Portfolio Details
(1) ($ in millions) Origination Total Principal Net Book Maximum Property Loan Per Origination Loan Type Date (2) Loan (3) Balance (3) Value Maturity (4) Location Type SQFT / Unit / Key LTV (2) Loan 1 Senior loan 8/14/2019 $ 1,333 $ 1,333 $ 1,323 L + 2.50 % L + 2.85 % 12/23/2024 Dublin - IE Office $460 / sqft 74 % Loan 2 Senior loan 3/22/2018 980 980 977 L + 3.15 % L + 3.37 % 3/15/2023 Diversified - Spain Mixed-Use n/a 71 % Loan 3 Senior loan 11/25/2019 724 625 625 L + 2.30 % L + 2.75 % 12/9/2024 New York Office $896 / sqft 65 % Loan 4 Senior loan 5/11/2017 647 615 614 L + 3.40 % L + 3.57 % 6/10/2023 Washington DC Office $302 / sqft 62 % Loan 5 Senior loan (3) 8/6/2015 458 458 84 5.75 % 5.77 % 10/29/2022 Diversified - EUR Other n/a 71 % Loan 6 Senior loan 8/22/2018 363 350 348 L + 3.15 % L + 3.49 % 8/9/2023 Maui Hospitality $454,293 / key 61 % Loan 7 Senior loan 10/23/2018 352 345 345 L + 3.40 % L + 3.87 % 10/23/2021 New York Mixed-Use $585 / sqft 65 % Loan 8 Senior loan 4/11/2018 355 345 344 L + 2.85 % L + 3.10 % 5/1/2023 New York Office $437 / sqft 71 % Loan 9 Senior loan 1/11/2019 298 298 295 L + 4.35 % L + 4.70 % 1/11/2026 Diversified - UK Other $294 / sqft 74 % Loan 10 Senior loan 11/30/2018 293 281 280 L + 2.85 % L + 3.20 % 12/9/2023 New York Hospitality $301,581 / key 73 % Loan 11 Senior loan 2/27/2020 300 279 277 L + 2.70 % L + 3.03 % 3/9/2025 New York Mixed-Use $875 / sqft 59 % Loan 12 Senior loan 7/31/2018 280 277 276 L + 3.10 % L + 3.52 % 8/9/2022 San Francisco Office $698 / sqft 50 % Loan 13 Senior loan 12/11/2018 310 254 253 L + 2.55 % L + 2.96 % 12/9/2023 Chicago Office $214 / sqft 78 % Loan 14 Senior loan 11/30/2018 254 248 247 L + 2.80 % L + 3.17 % 12/9/2023 San Francisco Hospitality $364,513 / key 73 % Loan 15 Senior loan 9/23/2019 281 234 232 L + 3.00 % L + 3.22 % 11/15/2024 Diversified - Spain Hospitality $125,124 / key 62 % Loans 16 - 128 Senior loan (3) Various 14,489 10,252 9,819 L + 3.31 (5) L + 3.67 (5) Various Various Various Various 62 % CECL reserve (178) Total/Wtd. avg. $ 21,717 $ 17,174 $ 16,161 L + 3.23 (5) L + 3.58 (5) 3.5 yrs 65 % Cash All-in Coupon Yield |
Blackstone | Blackstone Mortgage Trust, Inc. June 30, 2020 December 31, 2019 Assets Cash and cash equivalents $1,259,836 $150,090 Loans receivable 16,339,403 16,164,801 Current expected credit loss reserve (178,050) Loans receivable, net 16,161,353 16,164,801 Other assets 241,934 236,980 Total assets $17,663,123 $16,551,871 Liabilities and equity Secured debt agreements, net $9,689,541 $10,054,930 Securitized debt obligations, net 2,240,612 1,187,084 Secured term loans, net 1,045,163 736,142 Convertible notes, net 614,710 613,071 Other liabilities 177,313 175,963 Total liabilities 13,767,339 12,767,190 Commitments and contingencies Equity Class A common stock, $0.01 par value 1,462 1,350 Additional paid-in capital 4,685,159 4,370,014 Accumulated other comprehensive income (loss) 8,925 (16,233) Accumulated deficit (820,783) (592,548) Total Blackstone Mortgage Trust, Inc. stockholders 3,874,763 3,762,583 Non-controlling interests 21,021 22,098 Total equity 3,895,784 3,784,681 Total liabilities and equity $17,663,123 $16,551,871 APPENDIX 10 Consolidated Balance Sheets ($ in thousands, except per share data) equity |
Blackstone | Blackstone Mortgage Trust, Inc. APPENDIX 11 Consolidated Statements of Operations ($ in thousands, except per share data) 2020 2019 2020 2019 Income from loans and other investments Interest and related income $191,982 $223,369 $396,857 $448,128 Less: Interest and related expenses 84,853 116,891 189,092 235,579 Income from loans and other investments, net 107,129 106,478 207,765 212,549 Other expenses Management and incentive fees 20,496 20,984 39,773 40,774 General and administrative expenses 11,286 9,897 23,078 19,210 Total other expenses 31,782 30,881 62,851 59,984 Increase in current expected credit loss reserve (56,819) - (179,521) - Income (loss) before income taxes 18,528 75,597 (34,607) 152,565 Income tax provision 23 46 173 147 Net income (loss) $18,505 $75,551 $(34,780) $152,418 Net income attributable to non-controlling interests (961) (377) (1,028) (680) Net income (loss) attributable to Blackstone Mortgage Trust, Inc. $17,544 $75,174 $(35,808) $151,738 Per share information (basic and diluted) Weighted-average shares of common stock outstanding 138,299,418 126,475,244 136,959,341 125,410,064 Net income (loss) per share of common stock $0.13 $0.59 ($0.26) $1.21 Three Months Ended June 30, Six Months Ended June 30, `` |
Blackstone | Blackstone Mortgage Trust, Inc. APPENDIX (1) Represents net (loss) income attributable to Blackstone Mortgage Trust, Inc.
(2) For the three months ended June 30, 2020, represents realized gains on the repatriation of unhedged foreign currency. For the three months ended March 31, 2020, primarily represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar
terms. These amounts were not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.
12 Per Share Calculations (in thousands, except per share data) Core Earnings Reconciliation Book Value per Share Earnings per Share June 30, 2020 March 31, 2020 Net income (loss) (1) $17,544 ($53,350) Increase in current expected credit loss reserve 56,819 122,702 Non-cash compensation expense 8,652 8,678 Realized hedging and foreign currency income, net (2) 1,810 8,467 Other items 210 596 Adjustments attributable to non-controlling interests, net 139 (561) Core Earnings $85,174 $86,532 Weighted-average shares outstanding, basic and diluted 138,299 135,619 Core Earnings per share, basic and diluted $0.62 $0.64 Three Months Ended June 30, 2020 March 31, 2020 Net income (loss) (1) $17,544 ($53,350) Weighted-average shares outstanding, basic and diluted 138,299 135,619 Earnings (loss) per share, basic and diluted $0.13 ($0.39) Three Months Ended June 30, 2020 March 31, 2020 Stockholders' equity $3,874,763 $3,650,920 Shares Class A common stock 146,197 135,355 Deferred stock units 281 268 Total outstanding 146,478 135,623 Book value per share $26.45 $26.92 Three Months Ended |
Blackstone | Blackstone Mortgage Trust, Inc. APPENDIX (1) Represents net (loss) income attributable to Blackstone Mortgage Trust, Inc.
(2) For the three months ended June 30, 2020, represents realized gains on the repatriation of unhedged foreign currency. For the three months ended March 31, 2020, December 31, 2019, and September 30, 2019, primarily represents the forward points earned on our foreign currency forward contracts, which reflect the
interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting
in additional interest income earned in U.S. dollar terms. These amounts were not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial
statements. 13
Reconciliation of Net Income to Core Earnings
(in thousands, except per share data)
June 30,
2020 Mar 31, 2020 Dec 31, 2019 Sept 30, 2019 Net income (loss) (1) 17,544 (53,350) 78,931 74,897 Increase in current expected credit loss reserve 56,819 122,702 - - Non-cash compensation expense 8,652 8,678 7,380 7,754 Realized hedging and foreign currency income, net (2) 1,810 8,467 4,767 2,898 Other items 210 596 68 78 Adjustments attributable to non-controlling interests, net 139 (561) - - Core Earnings 85,174 86,532 91,146 85,627 Weighted-average shares outstanding, basic and diluted 138,299 135,619 134,832 134,537 Net income (loss) per share, basic and diluted $0.13 ($0.39) $0.59 $0.56 Core Earnings per share, basic and diluted $0.62 $0.64 $0.68 $0.64 Three Months Ended, |
Blackstone | Blackstone Mortgage Trust, Inc. DEFINITIONS 14 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 States of America (GAAP). Core Earnings is a non-GAAP measure, which we define as GAAP net income (loss), including realized gains and losses not otherwise included in GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), (iv) net income (loss) attributable to our legacy portfolio, and (v) certain non-cash items. 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 our Manager, subject to approval by a majority of our independent directors. During the six months ended June 30, 2020, we recorded a $179.5 million increase in current expected credit loss reserve, or CECL reserve, which has been excluded from Core Earnings consistent with other unrealized gains (losses) pursuant to our existing policy for reporting Core Earnings and the terms of the management agreement between our Manager and us. We believe that Core Earnings provides meaningful information to consider in addition to our net income and cash flow from operating activities determined in accordance with GAAP. This adjusted measure helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations. Although, according to the management agreement between our Manager and us, or our Management Agreement, we calculate the incentive and base management fees due to our Manager using Core Earnings before our incentive fee expense, we report Core Earnings after incentive fee expense, as we believe this is a more meaningful presentation of the economic performance of our Class A common stock. 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 our GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs. In addition, our 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, our reported Core Earnings may not be comparable to the Core Earnings reported by other companies. Non-Consolidated Senior Interests: Senior interests in loans originated and syndicated to third parties. These non-recourse loan participations, which are excluded from the GAAP balance sheet, constitute additional financing capacity and are included in discussions of the loan portfolio. Non-Consolidated Securitized Debt Obligations: Senior securitized debt held by third-parties in the 2018 Single Asset Securitization. These non-recourse securitized debt obligations, which are excluded from the GAAP balance sheet, constitute additional financing capacity and are included in discussions of the loan portfolio. |
Blackstone | Blackstone Mortgage Trust, Inc. FORWARD-LOOKING STATEMENTS 15 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 BXMTs current views with respect to, among other things, its operations and financial performance and the impact of the COVID-19 pandemic. You can identify these forward- looking statements by the use of words such as outlook, objective, indicator, believes, expects, potential, continues, may, will, should, seeks, 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. BXMT 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, 2019 and its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2020, as such factors may be further updated from time to time in its periodic filings with the Securities and Exchange Commission (SEC) which are accessible on the SECs 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. BXMT assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances. |