Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Investor Presentation (July 2017)
25 slides from Blackstone Mortgage Trust's investor presentation, Jul 28, 2017
Slide 1: Mortgage Trust July 2017
Mortgage Trust July 2017
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 Blackstone Mortgage Trust, Inc. (“BXMT”) c
Slide 3: BXMT Overview
BXMT Overview Blackstone Mortgage Trust, Inc. (NYSE: BXMT) is a REIT that originates senior commercial mortgage loans in North America and Europe Affiliation with BX, largest real estate Superior Sponsorship private equity business in the world Attractive current income, conservative Senior Lend
Slide 4: Superior Real Estate Platform
Superior Real Estate Platform Global portfolio drives proprietary insight, leasing advantage and value creation Office 222M One of the largest owners in the U.S. Square Feet Retail 79M Active global investor since 2011 Square Feet Hotel 211k One of the largest owners in the U.S. Owned Keys Multifa
Slide 5: Superior Real Estate Platform: Blackstone Real Estate Investment Platform
Superior Real Estate Platform Blackstone Real Estate is a premier debt and equity investment and asset management platform Investor Capital Under Management BREP Asia 6% BPP $15 billion AUM 16% 111 professionals BREP Europe 23% BREDS BREDS $104B BREDS Blackstone Drawdown Liquid 15% Mortgage Trust
Slide 6: Superior Real Estate Platform: Integrated Platform
Superior Real Estate Platform 450+ people, 12 offices, 3 business units but one fully integrated real estate platform Blackstone Advantage Regular Meetings Single Perspective Global Business Weekly • 44% of RE partners have international experience • Partners’ Meeting • Global ICMs 1 Global Real E
Slide 7: Superior Real Estate Platform: BREDS Investment Committee
Superior Real Estate Platform Blackstone’s unique investment process is complemented by fully-integrated corporate infrastructure BREDS Investment Committee Jonathan Gray Stephen Plavin Jonathan Pollack Global Head of Real Estate CEO & President of BXMT Global Head of BREDS Member of Blackstone Bo
Slide 8: Commercial Real Estate Fundamentals
Commercial Real Estate Fundamentals Real estate continues to benefit from limited supply and moderate growth U.S. Construction Completions(a) U.S. Public REIT NOI(b) Office, Retail, and Industrial Sectors Same Store NOI Growth 27 3% 6% Consecutive Quarters 5% 1Q’17 4.1% 4% 2% Down 3% 53% 2% 1% 1%
Slide 9: Commercial Real Estate Debt Market
Commercial Real Estate Debt Market CMBS and bank lenders are reducing CRE lending activity under regulatory pressure U.S. CRE Debt Holders(a) U.S. CMBS Issuance(b) ($ in billions) ($ in billions) (Office, Industrial, and Retail Sectors) (Office, Industrial, and Retail Sectors) U.S Other Depository
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 50% to 80% Rate LIBOR + 3.50% and higher, scaled to risk Term 3 to 5 ye
Slide 11: Sample Transaction: 123 Mission
Sample Transaction: 123 Mission $187 million floating rate, first mortgage loan secured by 123 Mission in San Francisco • Well located class A office building undergoing value-enhancing repositioning; 65% LTV • Initial funding of $169 million with $18 million future funding commitment for building
Slide 12: Sample Transaction: Westin Maui
Sample Transaction: Westin Maui $258 million floating rate, first mortgage loan secured by Westin Hotel in Maui, Hawaii • Well located in beachfront Ka’anapali surrounded by retail, dining and golf courses; 75% LTV; $488k per key • Initial funding of $241 million with $17 million future funding co
Slide 13: Sample Transaction: Woolworth Building
Sample Transaction: Woolworth Building $320 million floating rate, first mortgage loan secured by the Woolworth Building, an iconic office tower located in Downtown Manhattan • Adjacent to City Hall with convenient access to transportation hubs • 789k sf, including 12k sf of retail; 68% LTV Woolwo
Slide 14: Sample Transaction: Aldwych House
Sample Transaction: Aldwych House £78 million floating rate, first mortgage loan secured by Aldwych House in central London • Well located 162k sf prime office building undergoing £28.0 million, value-enhancing, refurbishment; 50% LTV Transaction sourced through existing Blackstone relationship
Slide 15: BXMT Earnings & Dividends
BXMT Earnings & Dividends Since May 2013 re-IPO, cumulative Core Earnings of $668 million have been fully distributed to investors via $668 million of cash dividends Cumulative Dividends $668 million dividends paid since re-IPO $0.62* $0.52* $0.50* $0.48* $0.27* $0.45 * 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 16: BXMT Senior Lending Business
BXMT Senior Lending Business 1H 2017 originations of $2.5 billion, up 44% from 1H 2016 2Q 2017 outstanding total loan portfolio of $10.6 billion, up 9% YTD ($ in billions) Originations Growth Loan Portfolio(a) $2.5 44% originations YoY growth +9% YTD $1.5 $10.6 $9.4 $9.8 $1.7 originations $1.0 $
Slide 17: Portfolio Diversification
Portfolio Diversification $10.6 billion portfolio comprising 102 senior loans secured by institutional quality real estate concentrated in major markets: loans secured by assets located in New York and California comprise 38% of the portfolio Geographic Diversification(a) Collateral Diversificatio
Slide 18: Portfolio Credit Quality
Portfolio Credit Quality BXMT’s senior loan portfolio is 100% performing, with no defaulted or impaired loans Origination Loan-to-Value(a) Risk Rating Distribution(b) (Total Loan Exposure, Dollars in Millions) (Total Loan Exposure, Dollars in Millions) $3,000 7,000 Weighted Avg Weighted Avg 60.9%
Slide 19: Financing
Financing Total asset-level financing capacity of $10.5 billion was 72% utilized at quarter end In 2Q 2017, raised $288 million of five-year convertible debt with a 4.375% coupon and an initial conversion price of $35.67 per share (1.35x P/B) ($ in billions) Outstanding Leverage Asset-Level Fina
Slide 20: Illustrative Loan Economics
Illustrative Loan Economics(a) BXMT’s senior loans are supported by significant owner’s equity Prudent use of balance sheet leverage drives attractive risk adjusted returns for BXMT stockholders LTV Capital Structure $ Cum. L+4.0% Return on Assets(b) L+2.0% All-in Cost(b) Credit Facility Advance
Slide 21: Interest Rates
Interest Rates Core Earnings are positively correlated to changes in LIBOR, the benchmark index for 92% of the loans A 1.0% increase in USD LIBOR would increase net interest income per share by $0.23 per annum Portfolio Income Sensitivity to USD LIBOR Portfolio Fixed vs. Floating (Annual Dollars
Slide 22: BXMT Total Return
BXMT Total Return BXMT's simple net interest margin business model and capital markets discipline has delivered strong current yield and book value growth to shareholders BXMT Performance 70% $8.70 Dividends Paid 60% 50% 40% 30% 20% 10% $1.80 BVPS Accretion 0% 2013 2014 2015 2016 6/30/17 -10% Book
Slide 23: BXMT Investor Base
BXMT Investor Base Blackstone and Blackstone employees combined are BXMT’s largest shareholder BXMT Ownership 8% $32.43 BX(a) Consensus Stock Price Target 33% 59% Retail Institutional 7.65% Consensus Dividend Yield 1.23x Average Daily Trading Volume(b) Consensus Price to Book 647k shares | $20 mil
Slide 24: BXMT Relative Value
BXMT Relative Value Blackstone provides compelling relative value compared to other listed real estate products Other Comm Resi Equity mREITs mREITs REITs Yield Dividend Yield Sr. Strategy Senior Loans Floating Rate Low Earnings Volatility __________________________
Slide 25: Mortgage Trust
Mortgage Trust
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