Attached files
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| EX-99.1 - EX-99.1 - BLACKSTONE MORTGAGE TRUST, INC. | d104742dex991.htm |
| 8-K - 8-K - BLACKSTONE MORTGAGE TRUST, INC. | d104742d8k.htm |
 Blackstone Mortgage Trust, Inc. Fourth Quarter and Full Year 2020 Results FEBRUARY 10, 2021 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 $802 million of Non-Consolidated Senior Interests and investment exposure to the $736 million 2018 Single Asset
Securitization through a $79 million subordinate interest.
(3) Reflects ratio of Distributable Earnings per share to dividends declared for the year ended December 31, 2020.
(4) GAAP EPS of $0.57 and Distributable EPS (1) of $0.60 reflect the stability of our $18.2 billion (2) senior loan portfolio backed by high-quality assets and well-capitalized sponsors
BXMT delivered strong earnings amidst a volatile environment, generating
2020 full year GAAP EPS of $0.97 and Distributable
EPS (1)
of $2.48
100% 2020 coverage of dividends per share (3) 99.7% 2020 interest collection +52% 2020 increase in total liquidity Maintained steady earnings through a challenging period Senior mortgage loan portfolio continues to outperform Grew and maintained liquidity at over $1 billion (4) despite market conditions Consistent Earnings Strong Credit Performance Total liquidity of $1.1 billion primarily includes $290 million of cash and $829 million of available borrowings under credit facilities. |
 Blackstone | Blackstone Mortgage Trust, Inc. 2 FOURTH QUARTER AND FULL YEAR 2020 RESULTS (1) See Appendix for a definition and reconciliation to GAAP net income.
(2) Total liquidity primarily includes $290 million of cash and $829 million of available borrowings under credit
facilities. (3)
Includes $802 million of Non-Consolidated Senior Interests and
investment exposure to the $736 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.
(5) Represents (i) total outstanding secured debt agreements, asset-specific debt agreements, secured term loans, and convertible
notes, less cash, to (ii) total equity.
Earnings
4Q GAAP earnings per share of $0.57 and Distributable
Earnings (1)
per share of
$0.60 ($0.97 and $2.48, respectively, for full year 2020); 100% dividend
coverage in 2020
Generated strong earnings while maintaining elevated liquidity levels
during the year; total liquidity at year end of $1.1
billion, (2)
up 52% from 2019
4Q GAAP EPS includes a $0.04 release of prior CECL reserves; book value
per share of $26.42 is net of a $1.26 CECL reserve
recorded in 2020 Portfolio
99.7% interest collection in 2020 (100% in 4Q) with virtually no
interest deferral reflects the quality of our portfolio
and sponsor commitment to our collateral $18.2
billion (3)
senior loan portfolio secured by institutional quality real estate in
major markets, with a weighted average origination
LTV (3)(4)
of 64%
Loan fundings
of $2.1 billion stayed in step with loan repayments of $2.0 billion
during 2020
Capitalization
Issued $2.5 billion of CRE CLOs in 2020, increasing the
non-recourse, non-mark-to- market
component of our balance sheet and reducing our debt-to-equity ratio (5) to 2.5x from 3.0x Strong capital markets access enabled equity raise and new Term Loan B tranche,
generating $607 million of gross proceeds during the year
Match-funded portfolio financing with no capital markets
mark-to-market and an array of bilateral credit
facilities, securitizations, and syndications |
 Blackstone | Blackstone Mortgage Trust, Inc. (1) Reflects ratio of Distributable Earnings to a quarterly average BXMT book value. GAAP Yield on Book was 8.3% and 3.6% for years
ending December 31, 2019 and 2020, respectively. GAAP Yield on Book above LIBOR was 6.1% and 3.1% for years ended December 31, 2019 and 2020, respectively. See Appendix for a definition and
reconciliation of Distributable Earnings to GAAP net income.
(2) See Appendix for a definition and reconciliation to GAAP net income.
3 EARNINGS Returns relative to base rates increased through a period of economic dislocation
2020 results driven by continued strong credit performance and stable
earnings power of the loan portfolio Attractive
Relative Value $0.97
2020 GAAP
earnings per share
$2.48 2020 Distributable Earnings per share (2) Average Yield on Book (1) Average USD LIBOR 7.3% 8.7% 2.2% 0.5% Yield Above LIBOR 2019 2020 9.5% 9.2% |
 Blackstone | Blackstone Mortgage Trust, Inc. 4 PORTFOLIO (1) Includes $802 million of Non-Consolidated Senior Interests and investment exposure to the $736 million 2018 Single Asset
Securitization through a $79 million subordinate interest.
(2) States comprising less than 1% of total loan portfolio are excluded.
$18.2 billion
(1) senior loan portfolio comprising 121 investments Since the beginning of the crisis, sponsors have contributed over $500 million of new equity to support their assets
Major Market Focus
(1)(2)
Collateral Diversification
(1)
$18.2B portfolio AU, 1% CA 16% MN 1% NV 1% TX 3% IL 4% TN, 1% GA 4% FL 5% NY 22% VA, 4% DC, 2% HI, 3% DEU, 1% IT, 1% NL, 1% UK, 11% IR, 7% ES, 7% BE, 1% AZ 1% Hospitality 17% Self-Storage 2% Industrial 4% Retail 3% Condo 1% Other 5% Office 58% Multi 10% |
 Blackstone | Blackstone Mortgage Trust, Inc. PORTFOLIO 5 Loan portfolio continued to perform through a challenging credit environment with virtually no missed payments or
interest deferrals during 2020
Stable CECL reserve since the initial impact of COVID-19 in the
first half of 2020 CECL Reserves
(1)
($ in millions)
Loan Portfolio Performance
$122.7
167.7
$56.8
$6.1 $5.8 1Q '20 2Q '20 3Q '20 4Q '20 12/31/20 Reserve (1) Represents the change in the CECL reserve recognized through net income on our consolidated statement of operations for each
respective quarter. Excludes $17.7 million of CECL reserve recorded upon adoption on January 1, 2020, which is reflected as a direct charge to retained earnings on our consolidated balance
sheet. 99.7%
interest
collection
<1%
interest
deferred |
 Blackstone | Blackstone Mortgage Trust, Inc. (1) Represents (i) total outstanding secured debt agreements, asset-specific debt agreements, secured term loans, and convertible
notes, less cash, to (ii) total equity. 6
CAPITALIZATION
BXMT diversified its financing sources during 2020, with $2.5 billion of
CLO issuances across two securitizations and $325 million
of incremental Term Loan B corporate financing Decreased
debt-to-equity to 2.5x from 3.0x during 2020, with no near-term corporate debt maturities 3.0x 12/31/19 12/31/20 Debt-to-Equity Ratio (1) Diversified Financing Sources (outstanding balance) 2.5x Term Loan B, 8% Convertibles Notes, 4% Asset-Specific Financings, 8% Securitizations 25% Secured Debt Agreements 55% $14.4B financings |
 Blackstone | Blackstone Mortgage Trust, Inc. Appendix 7 |
 Blackstone | Blackstone Mortgage Trust, Inc. $18.3 $18.2 $0.5 $0.6 3Q ’20 Loans Outstanding Fundings Repayments 4Q ’20 Loans Outstanding 8 APPENDIX (1) Primarily represents the repatriation of net interest income earned during the quarter from non-USD investments. The difference
between the value of such income on the date of conversion to USD and our cumulative basis in such income is not included in GAAP net income, but rather as a component of Other Comprehensive Income
on our consolidated balance sheet. (2)
Adjusted to reflect $0.2 billion of non-cash fluctuations in foreign
currency rates during the period for comparability to our total loan portfolio as of December 31, 2020. (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) Includes $802 million of Non-Consolidated Senior Interests and investment exposure to the $736 million 2018 Single Asset
Securitization through a $79 million subordinate interest. Net Fundings ($ in billions) 4Q 2020 Operating Results ($ in millions) $0.57 net income per share $0.60 distributable earnings per share (2)(3) (4) GAAP Net Income Adjustments Distributable Earnings Interest income $188.9 $ - $188.9 Interest expense (79.4) 0.8 (78.6) Management and incentive fees (19.2) - (19.2) General and administrative expenses and taxes (3.1) - (3.1) Decrease in current expected credit loss reserve 5.8 (5.8) - Non-cash compensation (8.6) 8.6 - Realized hedging and foreign currency income, net (1) - 0.6 0.6 Net income attributable to non- controlling interests (0.8) 0.1 (0.7) Total $83.6 $4.3 $87.9 |
 Blackstone | Blackstone Mortgage Trust, Inc. APPENDIX (1) Portfolio excludes our $79 million subordinate interest in the $736 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 December 31, 2020, five loans in the portfolio have been financed with an aggregate $802 million of Non-Consolidated Senior Interests, which are included in the
table above. (4)
Maximum maturity assumes all extension options are exercised; however,
floating rate loans generally may be repaid prior to their final maturity without penalty. (5) This loan is accounted for under the cost recovery method. (6) Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for
weighted-average calculation. Excludes loans under the cost-recovery method. 9 Portfolio Details (1) ($ 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 $ 1,318 $ 1,318 $ 1,309 L + 2.50 % L + 2.84 % 12/23/2024 Dublin - IE Office $479 / sqft 74 % Loan 2 Senior loan 3/22/2018 993 993 991 L + 3.15 % L + 3.37 % 3/15/2023 Diversified - Spain Mixed-Use n/a 71 % Loan 3 Senior loan 11/25/2019 724 653 654 L + 2.30 % L + 2.79 % 12/9/2024 New York Office $936 / sqft 65 % Loan 4 Senior loan 5/11/2017 647 619 619 L + 3.40 % L + 3.57 % 6/10/2023 Washington DC Office $304 / sqft 62 % Loan 5 Senior loan 8/22/2018 363 360 359 L + 3.15 % L + 3.49 % 8/9/2023 Maui Hospitality $467,454 / key 61 % Loan 6 Senior loan 10/23/2018 352 348 348 L + 3.40 % L + 3.67 % 1/23/2022 New York Mixed-Use $589 / 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 333 333 61 5.75 % 5.81 % 10/29/2022 Diversified - EUR Other n/a 71 % Loan 9 Senior loan 1/11/2019 328 328 325 L + 4.35 % L + 4.70 % 1/11/2026 Diversified - UK Other $324 / sqft 74 % Loan 10 Senior loan (3) 8/7/2019 746 306 59 L + 3.12 % L + 3.56 % 9/9/2025 Los Angeles Office $207 / sqft 59 % Loan 11 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 12 Senior loan 2/27/2020 300 282 280 L + 2.70 % L + 3.03 % 3/9/2025 New York Mixed-Use $884 / sqft 59 % Loan 13 Senior loan 7/31/2018 280 278 277 L + 3.10 % L + 3.52 % 8/9/2022 San Francisco Office $701 / sqft 50 % Loan 14 Senior loan 9/30/2019 306 267 268 L + 3.66 % L + 3.75 % 9/9/2024 Chicago Office $232 / sqft 58 % Loan 15 Senior loan 12/11/2018 310 259 258 L + 2.55 % L + 2.96 % 12/9/2023 Chicago Office $218 / sqft 78 % Loans 16 - 120 Senior loans (3) Various 13,778 10,480 10,136 L + 3.31 % (6) L + 3.66 % (6) Various Various Various Various 63 % CECL reserve (174) Total/Wtd. avg. $ 21,418 $ 17,455 $ 16,399 L + 3.24 % (6) L + 3.58 % (6) 3.1 yrs 65 % Cash All-in Coupon Yield |
 Blackstone | Blackstone Mortgage Trust, Inc. APPENDIX 10 Consolidated Balance Sheets ($ in thousands, except per share data) December 31, 2020 December 31, 2019 Assets Cash and cash equivalents $289,970 $150,090 Loans receivable 16,572,715 16,164,801 Current expected credit loss reserve (173,549) — Loans receivable, net $16,399,166 $16,164,801 Other assets 269,819 236,980 Total assets $16,958,955 $16,551,871 Liabilities and equity Secured debt agreements, net $7,880,536 $9,731,426 Securitized debt obligations, net 2,922,499 1,187,084 Asset-specific debt agreements, net 391,269 323,504 Secured term loans, net 1,041,704 736,142 Convertible notes, net 616,389 613,071 Other liabilities 202,327 175,963 Total liabilities $13,054,724 $12,767,190 Commitments and contingencies — — Equity Class A common stock, $0.01 par value 1,468 1,350 Additional paid-in capital 4,702,713 4,370,014 Accumulated other comprehensive income (loss) 11,170 (16,233) Accumulated deficit (829,284) (592,548) Total Blackstone Mortgage Trust, Inc. stockholders’ equity $3,886,067 $3,762,583 Non-controlling interests 18,164 22,098 Total equity $3,904,231 $3,784,681 Total liabilities and equity $16,958,955 $16,551,871 |
 Blackstone | Blackstone Mortgage Trust, Inc. APPENDIX 11 Consolidated Statements of Operations ($ in thousands, except per share data) 2020 2019 2020 2019 Income from loans and other investments Interest and related income $188,851 $220,678 $779,648 $882,679 Less: Interest and related expenses 79,401 110,967 347,471 458,503 Income from loans and other investments, net $109,450 $109,711 $432,177 $424,176 Other expenses Management and incentive fees 19,158 20,159 77,916 78,435 General and administrative expenses 11,551 9,904 45,871 38,854 Total other expenses $30,709 $30,063 $123,787 $117,289 Decrease (increase) in current expected credit loss reserve 5,813 - (167,653) - Income before income taxes $84,554 $79,648 $140,737 $306,887 Income tax provision (benefit) 131 67 323 (506) Net income $84,423 $79,581 $140,414 $307,393 Net income attributable to non-controlling interests (807) (650) (2,744) (1,826) Net income attributable to Blackstone Mortgage Trust, Inc. $83,616 $78,931 $137,670 $305,567 Per share information (basic and diluted) Weighted-average shares of common stock outstanding 146,675,431 134,832,323 141,795,977 130,085,398 Net income per share of common stock $0.57 $0.59 $0.97 $2.35 Three Months Ended December 31, Twelve Months Ended December 31, |
 Blackstone | Blackstone Mortgage Trust, Inc. APPENDIX (1) Represents net income attributable to Blackstone Mortgage Trust, Inc.
(2) Primarily represents the repatriation of net interest income earned during the quarter from non-USD investments. The difference
between the value of such income on the date of conversion to USD and our cumulative basis in such income is not included in GAAP net income, but rather as a component of Other Comprehensive Income
on our consolidated balance sheet. 12
Per Share Calculations
(in thousands, except per share data)
Distributable Earnings
Reconciliation
Book Value
per Share
Earnings
per Share
December 31, 2020
September 30, 2020
Net income
(1) $83,616 $89,860 Decrease in current expected credit loss reserve (5,813) (6,055) Non-cash compensation expense 8,554 8,649 Realized hedging and foreign currency income (loss), net (2) 582 (7) Other items 921 (240) Adjustments attributable to non-controlling interests, net 74 143 Distributable Earnings $87,934 $92,350 Weighted-average shares outstanding, basic and diluted 146,675 146,485 Distributable Earnings per share, basic and diluted $0.60 $0.63 Three Months Ended December 31, 2020 September 30, 2020 Stockholders' equity $3,886,067 $3,883,364 Shares Class A common stock 146,780 146,197 Deferred stock units 307 294 Total outstanding 147,087 146,491 Book value per share $26.42 $26.51 Three Months Ended December 31, 2020 September 30, 2020 Net income (1) $83,616 $89,860 Weighted-average shares outstanding, basic and diluted 146,675 146,485 Earnings per share, basic and diluted $0.57 $0.61 Three Months Ended |
 Blackstone | Blackstone Mortgage Trust, Inc. APPENDIX (1) Represents net income attributable to Blackstone Mortgage Trust, Inc.
(2) For the years ended December 31, 2020 and 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 Distributable Earnings
(in thousands, except per share data)
Years Ended December 31,
2020 2019 Net income (1) $137,670 $305,567 Increase in current expected credit loss reserve 167,653 - Non-cash compensation expense 34,532 30,656 Realized hedging and foreign currency income, net (2) 10,852 14,172 Other items 1,487 300 Adjustments attributable to non-controlling interests, net (204) - Distributable Earnings $351,990 $350,695 Weighted-average shares outstanding, basic and diluted 141,796 130,085 Net income per share, basic and diluted $0.97 $2.35 Distributable Earnings per share, basic and diluted $2.48 $2.70 |
 Blackstone | Blackstone Mortgage Trust, Inc. DEFINITIONS 14 Distributable Earnings: Blackstone Mortgage Trust, Inc. (“BXMT”) discloses Distributable Earnings in this presentation. Distributable 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”). Distributable 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. Distributable 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 twelve months ended December 31, 2020, we recorded a $167.7 million increase in current expected credit loss reserve, or CECL reserve, which has been excluded from Distributable Earnings consistent with other unrealized gains (losses) pursuant to our existing policy for reporting Distributable Earnings and the terms of the management agreement between our Manager and us. We believe that Distributable 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. We believe Distributable Earnings is a useful financial metric for existing and potential future holders of our class A common stock as historically, over time, Distributable Earnings has been a strong indicator of our dividends per share. Distributable Earnings mirrors the terms of our management agreement between our Manager and us, or our Management Agreement, for purposes of calculating our incentive fee expense. Distributable 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 Distributable Earnings may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported Distributable Earnings may not be comparable to the Distributable 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, 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. |