Attached files
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| EX-99.1 - EX-99.1 - BLACKSTONE MORTGAGE TRUST, INC. | d48237dex991.htm |
| 8-K - 8-K - BLACKSTONE MORTGAGE TRUST, INC. | d48237d8k.htm |
 Blackstone Mortgage Trust, Inc. Third Quarter 2020 Results OCTOBER 29, 2020 Exhibit 99.2 |
 Blackstone | Blackstone Mortgage Trust, Inc. 1 BXMT HIGHLIGHTS (1) See Appendix for a definition and reconciliation to GAAP net income.
(2) Includes $716 million of Non-Consolidated Senior Interests and investment exposure to the $808 million 2018 Single Asset
Securitization through an $79 million subordinate interest.
(3) Reflects ratio of Core Earnings to dividends declared for the three months ended September 30, 2020.
(4) Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit
facilities. BXMT
continued
to deliver strong earnings in 3Q, generating $0.61 EPS and $0.63 Core EPS (1) $18.1 billion (2) senior loan portfolio backed by high-quality assets and well-capitalized sponsors
102% dividend coverage (3) 99% interest collection $1.2B total liquidity (4) Consistent earnings through a historically volatile period Senior mortgage loan portfolio continues to outperform Match-funded liability structure with substantial liquidity Stable Earnings Stable Credit Performance |
 Blackstone | Blackstone Mortgage Trust, Inc. 2 THIRD QUARTER 2020 RESULTS (1) See Appendix for a definition and reconciliation to GAAP net income.
(2) Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit
facilities. (3)
Includes $716 million of Non-Consolidated Senior Interests and
investment exposure to the $808 million 2018 Single Asset Securitization through a $79 million subordinate interest. (4) Reflects weighted average LTV as of the date investments were originated or acquired by BXMT.
Earnings
3Q GAAP earnings per share of $0.61 and Core Earnings (1) per share of $0.63; book value per share of $26.51 Generated strong earnings while maintaining elevated liquidity levels during the
quarter;
total
liquidity
at quarter end of $1.2 billion (2) Earnings and book value reflect $0.04 per share decrease in 3Q CECL reserve from
ordinary course loan portfolio migration; no specific CECL reserves
recorded in 3Q Portfolio
$18.1
billion
(3) senior loan portfolio secured by institutional quality real estate in major markets, with a weighted average origination LTV (3)(4) of 64% 99% interest collection in 3Q reflects the quality of our portfolio and sponsor
commitment to our collateral
$484 million of loan repayments and $342 million of loan
fundings Capitalization
Stable corporate debt structure with no near-term
maturities Match-funded asset level financing with no
capital markets mark-to-market from an array of
bilateral credit facilities, securitizations and asset-specific syndications Priced a $1.0 billion CRE CLO post-quarter end, increasing the non-recourse
component of our balance sheet and further diversifying financing
sources |
 Blackstone | Blackstone Mortgage Trust, Inc. (1) See Appendix for a definition and reconciliation to GAAP net income.
3 EARNINGS 3Q results driven by continued strong credit performance and earnings power of the loan portfolio
BXMT earnings remained steady
through a period of economic dislocation and a significant decline in
LIBOR Strong Results
Through
Volatile
Period
(1)
$0.61 3Q GAAP Earnings per share $0.63 3Q Core Earnings per share Average USD LIBOR Core Earnings per Share 1.40% 0.35% 0.16% $0.64 $0.62 $0.63 1Q ‘20 2Q ‘20 3Q ‘20 |
 Blackstone | Blackstone Mortgage Trust, Inc. Office 56% Multi 11% Retail 3% Condo 1% Other 5% 4 PORTFOLIO (1) Includes $716 million of Non-Consolidated Senior Interests and investment exposure to the $808 million 2018 Single Asset
Securitization through a $79 million subordinate interest.
(2) States comprising less than 1% of total loan portfolio are excluded.
$18.1 billion (1) senior loan portfolio comprising 124 loans; large average loan balance of $146 million reflects significant equity investment from our institutional sponsors $342 million of loan fundings under previously originated loans funded through loan repayments of $484 million
Major Market Focus
(1)(2)
Collateral Diversification
(1)
$18.1B portfolio AU, 1% CA 17% MN 1% NV 1% TX 3% IL 4% TN, 1% GA 3% FL 5% NY 23% VA, 4% DC, 2% HI, 3% DEU, 1% IT, 1% NL, 1% UK, 11% IR, 7% ES, 7% BE, 1% Self-Storage 2% Industrial 5% Hospitality 17% |
 Blackstone | Blackstone Mortgage Trust, Inc. COVID-Related Loan Modifications (1) PORTFOLIO (1) Includes loans modified during the six months ended September 30, 2020 as a result of COVID-19; excludes ordinary course loan
modifications during the period. (2)
Cash-in
modifications
includes
loan modifications involving an additional financial commitment from sponsors in the form of loan paydowns, guaranties, additional equity, or other, similar provisions. 5 Loan portfolio continues to perform with minimal interest deferral
80% of loans performing on pre-COVID terms; COVID-related
modifications have generally involved significant new
financial commitments from sponsors
—
Minor reserve deferrals or reallocations
—
Extension of business plan milestones
—
Well-capitalized sponsors supporting assets
through COVID period
—
New cash equity contributed in exchange for
more time to complete business plans
No Modifications
80% COVID-Related 20% Cash-in (2) 15% Other 5% |
 Blackstone | Blackstone Mortgage Trust, Inc. (1) Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit
facilities. (2)
Represents (i) total outstanding secured debt agreements, secured term
loans and convertible notes, less cash, to (ii) total equity.
(3) Excludes $11 million per annum of scheduled amortization payments under the Term Loan B.
6 CAPITALIZATION Maintained substantial liquidity of $1.2 billion (1) at quarter end and a consistent debt-to-equity ratio (2) of 2.6x Majority of corporate debt has over 5 years of remaining term, with no maturities prior to 2022
Corporate Debt
(3)
(outstanding balance; $ in millions)
$403 $220 $1,009 2020 2021 2022 2023 2024 2025 2026 Debt-to-Equity Ratio (2) 3.0x 2.8x 2.6x 12/31/19 3/31/20 6/30/20 9/30/20 2.6x |
 Blackstone | Blackstone Mortgage Trust, Inc. Appendix 7 |
 Blackstone | Blackstone Mortgage Trust, Inc. $18.3 $18.1 $0.3 $0.5 2Q ’20 Loans Outstanding Fundings Repayments 3Q ’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) Includes the impact of changes in foreign currency rates and related hedges for non-USD investments of $0.3 billion for the
three months ending September 30, 2020. (3)
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. (4) Includes $716 million of Non-Consolidated Senior Interests and investment exposure to the $808 million 2018 Single Asset
Securitization through a $79 million subordinate interest. Net Fundings ($ in billions) Operating Results ($ in millions) $0.61 net income per share $0.63 core earnings per share (2)(3) (4) GAAP Net Income Adjustments Core Earnings Interest income $193.9 $ - $193.9 Interest expense (79.0) (0.2) (79.2) Management and incentive fees (19.0) - (19.0) General and administrative expenses and taxes (2.6) - (2.6) Decrease in current expected credit loss reserve 6.1 (6.1) - Non-cash compensation (8.6) 8.6 - Realized hedging and foreign currency income, net (1) - - - Net income attributable to non- controlling interests (0.9) 0.1 (0.8) Total $89.9 $2.4 $92.3 |
 Blackstone | Blackstone Mortgage Trust, Inc. APPENDIX (1) Portfolio excludes our $79 million subordinate interest in the $808 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 September 30, 2020, five loans in the portfolio have been financed with an aggregate $716 million of Non-Consolidated Senior Interests, which are included in the
table above. (4)
Maximum maturity assumes all extension options are exercised; however,
floating rate loans generally may be repaid prior to their final maturity without penalty. (5) This loan is accounted for under the cost-recovery method. (6) Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for
weighted-average calculation. Excludes loans under the cost-recovery method. 9 Portfolio Details (1) ($ 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 $ 1,264 $ 1,264 $ 1,256 L + 2.50 % L + 2.83 % 12/23/2024 Dublin - IE Office $460 / sqft 74 % Loan 2 Senior loan 3/22/2018 995 995 992 L + 3.15 % L + 3.37 % 3/15/2023 Diversified - Spain Mixed-Use n/a 71 % Loan 3 Senior loan 11/25/2019 724 646 646 L + 2.30 % L + 3.18 % 12/9/2024 New York Office $925 / sqft 65 % Loan 4 Senior loan 5/11/2017 647 616 615 L + 3.40 % L + 3.57 % 6/10/2023 Washington DC Office $302 / sqft 62 % Loan 5 Senior loan 8/22/2018 363 357 356 L + 3.15 % L + 3.49 % 8/9/2023 Maui Hospitality $463,671 / key 61 % Loan 6 Senior loan 10/23/2018 352 347 347 L + 3.40 % L + 3.67 % 1/23/2022 New York Mixed-Use $588 / sqft 65 % Loan 7 Senior loan 4/11/2018 355 345 344 L + 2.85 % L + 3.10 % 5/1/2023 New York Office $437 / sqft 71 % Loan 8 Senior loan (3) 8/6/2015 315 315 58 5.75 % 5.81 % 10/29/2022 Diversified - EUR Other n/a 71 % Loan 9 Senior loan 1/11/2019 310 310 307 L + 4.35 % L + 4.70 % 1/11/2026 Diversified - UK Other $306 / sqft 74 % Loan 10 Senior loan 11/30/2018 286 286 285 n/m (5) n/m (5) 8/9/2025 New York Hospitality $306,870 / key 73 % Loan 11 Senior loan 2/27/2020 300 282 279 L + 2.70 % L + 3.03 % 3/9/2025 New York Mixed-Use $884 / sqft 59 % Loan 12 Senior loan 7/31/2018 280 278 277 L + 3.10 % L + 3.52 % 8/9/2022 San Francisco Office $701 / sqft 50 % Loan 13 Senior loan (3) 8/7/2019 746 270 52 L + 3.12 % L + 3.55 % 9/9/2025 Los Angeles Office $183 / sqft 59 % Loan 14 Senior loan 12/11/2018 310 257 255 L + 2.55 % L + 2.96 % 12/9/2023 Chicago Office $216 / sqft 78 % Loan 15 Senior loan 11/30/2018 254 248 247 L + 2.80 % L + 3.17 % 12/9/2023 San Francisco Hospitality $364,513 / key 73 % Loans 16 - 123 Senior loan (3) Various 13,973 10,453 10,151 L + 3.31 (6) L + 3.65 (6) Various Various Various Various 62 % CECL reserve (177) Total/Wtd. avg. $ 21,475 $ 17,270 $ 16,292 L + 3.22 (6) L + 3.58 (6) 3.3 yrs 65 % Cash All-in Coupon Yield |
 Blackstone | Blackstone Mortgage Trust, Inc. APPENDIX 10 Consolidated Balance Sheets ($ in thousands, except per share data) September 30, 2020 December 31, 2019 Assets Cash and cash equivalents $427,028 $150,090 Loans receivable 16,468,703 16,164,801 Current expected credit loss reserve (177,026) — Loans receivable, net 16,291,677 16,164,801 Other assets 158,099 236,980 Total assets $16,876,804 $16,551,871 Liabilities and equity Secured debt agreements, net $8,973,810 $10,054,930 Securitized debt obligations, net 2,168,083 1,187,084 Secured term loans, net 1,043,441 736,142 Convertible notes, net 615,541 613,071 Other liabilities 171,977 175,963 Total liabilities 12,972,852 12,767,190 Commitments and contingencies — — Equity Class A common stock, $0.01 par value 1,462 1,350 Additional paid-in capital 4,693,982 4,370,014 Accumulated other comprehensive income (loss) 9,645 (16,233) Accumulated deficit (821,725) (592,548) Total Blackstone Mortgage Trust, Inc. stockholders’ equity 3,883,364 3,762,583 Non-controlling interests 20,588 22,098 Total equity 3,903,952 3,784,681 Total liabilities and equity $16,876,804 $16,551,871 |
 Blackstone | Blackstone Mortgage Trust, Inc. APPENDIX 11 Consolidated Statements of Operations ($ in thousands, except per share data) 2020 2019 2020 2019 Income from loans and other investments Interest and related income $193,939 $213,873 $590,797 $662,001 Less: Interest and related expenses 78,978 111,957
268,070
347,536
Income from loans and other investments, net
114,961
101,916
322,727
314,465
Other expenses
Management and incentive fees
18,985
17,502
58,758
58,276
General and administrative expenses
11,242
9,741
34,320
28,951
Total other expenses
30,227
27,243
93,078
87,227
Decrease (increase) in current expected credit loss
reserve 6,055
-
(173,466)
-
Income before income
taxes 90,789
74,673
56,183
227,238
Income tax provision (benefit)
20 (721)
192
(573)
Net income
$90,769
$75,394
$55,991
$227,811
Net income attributable to non-controlling interests
(909)
(497)
(1,937)
(1,176)
Net income attributable to Blackstone Mortgage Trust,
Inc. $89,860
$74,897
$54,054
$226,635
Per share information (basic and diluted)
Weighted-average shares of common stock outstanding
146,484,651
134,536,683
140,157,620
128,485,701
Net income per share of common stock
$0.61 $0.56 $0.39 $1.76 Three Months Ended September 30, Nine Months Ended September 30, |
 Blackstone | Blackstone Mortgage Trust, Inc. APPENDIX (1) Represents net income attributable to Blackstone Mortgage Trust, Inc.
(2) Represents realized gains on the repatriation of unhedged foreign currency. 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 Realized hedging and foreign currency (loss) income, net September 30, 2020 June 30, 2020 Net income (1) $89,860 $17,544 (Decrease) increase in current expected credit loss reserve (6,055) 56,819 Non-cash compensation expense 8,649 8,652 (2) (7) 1,810 Other items (240) 210 Adjustments attributable to non-controlling interests, net 143 139 Core Earnings $92,350 $85,174 Weighted-average shares outstanding, basic and diluted 146,485 138,299 Core Earnings per share, basic and diluted $0.63 $0.62 Three Months Ended September 30, 2020 June 30, 2020 Stockholders' equity $3,883,364 $3,874,763 Shares Class A common stock 146,197 146,197 Deferred stock units 294 281 Total outstanding 146,491 146,478 Book value per share $26.51 $26.45 Three Months Ended September 30, 2020 June 30, 2020 Net income (1) $89,860 $17,544 Weighted-average shares outstanding, basic and diluted 146,485 138,299 Earnings per share, basic and diluted $0.61 $0.13 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 September 30, 2020 and 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.
13 Reconciliation of Net Income to Core Earnings (in thousands, except per share data) Three Months Ended, Sept 30, 2020 June 30, 2020 Mar 31, 2020 Net income (loss) (1) 89,860 17,544 (53,350) (Decrease) increase in current expected credit loss reserve (6,055) 56,819 122,702 Non-cash compensation expense 8,649 8,652 8,678 Realized hedging and foreign currency (loss) income, net (2) (7) 1,810 8,467 Other items (240) 210 596 Adjustments attributable to non-controlling interests, net 143 139 (561) Core Earnings 92,350 85,174 86,532 Weighted-average shares outstanding, basic and diluted 146,485 138,299 135,619 Net income (loss) per share, basic and diluted $0.61 $0.13 ($0.39) Core Earnings per share, basic and diluted $0.63 $0.62 $0.64 |
 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 nine months ended September 30, 2020, we recorded a $173.5 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 BXMT’s 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 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. BXMT assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances. |