Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Q4 2017 Earnings Presentation
32 slides from Blackstone Mortgage Trust's earnings presentation, February 2018
Slide 1: 4Q 2017 Earnings Release & Company Supplemental
February 2018 4Q 2017 Earnings Release & Company Supplemental
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 Highlights
BXMT Highlights BXMT originated $1.2 billion of senior commercial real estate loans and grew its portfolio to $11.1 billion in 4Q, generating $0.59 of GAAP EPS and $0.65 of Core EPS(a) Income Stability Protection Expertise $0.62 $11.1B 94% $4.8B 4Q dividend senior loan portfolio floating rate 2017 o
Slide 4: Fourth Quarter and Full Year 2017 Results
Fourth Quarter and Full Year 2017 Results 4Q EPS of $0.59 and Core Earnings(a) of $0.65 per share ($2.27 and $2.55, Earnings & respectively for full year 2017) Dividends Book value per share of $26.93, up $0.41 as a result of share issuance at $31.90 or 1.20x P/B Loan 4Q originations of $1.2 b
Slide 5: Earnings & Dividends
Earnings & Dividends 4Q GAAP earnings of $0.59 per share ($58 million) and Core Earnings(a) of $0.65 per share ($65 million) 2017 GAAP earnings of $2.27 per share ($218 million) and Core Earnings(a) of $2.55 per share ($245 million) $0.62 per share dividend equates to an 8.2% dividend yield(b)
Slide 6: Loan Originations
Loan Originations Originated $1.2 billion in 4Q bringing total 2017 originations to $4.8 billion, up 37% from prior year Portfolio growth of $1.2 billion, including $486 million of fundings under previously originated commitments in 2017 ($ in billions) 2017 Originations Origination Growth 100
Slide 7: Portfolio Composition
Portfolio Composition $11.1 billion portfolio comprising 110 senior loans secured by institutional quality real estate concentrated in major markets; 63% of loans secured by assets located in coastal markets Geographic Diversification(a) Collateral Diversification(a) WA CAN Other 2% 4% Condo 2% 9%
Slide 8: Financing
Financing Closed $1.0 billion collateralized loan obligation (CLO), the largest commercial real estate CLO issued post financial crisis Innovative structural features maximize economic efficiency and maintain asset management flexibility Highlights BXMT 2017-FL1(b) Structure $3.4B $1.0B Financ
Slide 9: Financing
Financing Grew capacity by $4.2 billion in 2017 through diversified funding sources including new credit facilities, upsizes of existing facilities, BXMT’s first CLO and large loan securitization, convertible debt issuances, and issuance of common stock Total asset-level financing capacity of $1
Slide 10: Interest Rates
Interest Rates Core Earnings are positively correlated to changes in LIBOR, the benchmark index for 94% of BXMT’s loans A 1.0% increase in USD LIBOR would increase net interest income per share by $0.29 per annum(a) Portfolio Income Sensitivity to USD LIBOR(a) Portfolio Fixed vs. Floating (Annua
Slide 11: Tax Reform
Tax Reform The Tax Cuts and Jobs Act of 2017 includes provisions entitling individual recipients of REIT dividends to a 20% deduction on ordinary dividends, effectively reducing the maximum individual tax rate on REIT dividends from 37.0% to 29.6%(a) An 8% REIT dividend results in an after-tax y
Slide 12: Appendix
Appendix Mortgage Trust
Slide 13: Appendix – Fourth Quarter 2017 Operating Results & Net Funding
Appendix – Fourth Quarter 2017 Operating Results & Net Funding Operating Results Net Funding ($ in millions) ($ in billions) GAAP Net Core Income Adjustments Earnings Interest Income $ 146.1 $ (0.5) $ 145.6 $1.3 $(0.9) $11.1 $10.7 Interest Expense (66.0) 0.5 (65.5) Management and (14.3) — (14.3) Inc
Slide 14: Loan Portfolio Details
Loan Portfolio Details ($ in millions) Origination Total Principal Net Book Cash All-In Maximum Property Loan Per Origination (b) (b) (c) Loan Type Date(a) Loan Balance Value Coupon Yield Maturity Location Type SQFT / Unit / Key LTV(a) Loan 1 Senior Loan 5/11/2017 $ 753 $ 656 $ 653 L + 3.40% L + 3.6
Slide 15: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in thousands, except per share data) December 31, 2017 December 31, 2016 Assets Cash and cash equivalents $ 69,654 $ 75,567 Restricted Cash 32,864 — Loans receivable, net 10,056,732 8,692,978 Other assets 99,575 44,070 Total assets $ 10,258,825 $ 8,812,615 Liabilities
Slide 16: Consolidated Statements of Operations
Consolidated Statements of Operations ($ in thousands, except per share data) Three Months Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Income from loans and other investments Interest and related income $ 146,127 $ 116,288 $ 537,915 $ 497,974 Less: Interest and related expenses 65
Slide 17: Per Share Calculations
Per Share Calculations (Amounts in thousands, except per share data) Three Months Ended December 31, 2017 September 30, 2017 Net income(a) $ 57,891 $ 57,722 Non-cash compensation expense 6,221 5,944 Core Earnings GE purchase discount accretion adjustment(b) (483) (138) Reconciliation Other items 874
Slide 18: Reconciliation of Net Income to Core Earnings
Reconciliation of Net Income to Core Earnings (Amounts in thousands, except per share data) Mar 31, Jun 30, Sep 30, Dec 31, 2017 2017 2017 2017 Net income(a) $ 51,405 $ 50,613 $ 57,722 $ 57,891 Non-cash compensation expense 5,907 5,959 5,944 6,221 GE purchase discount accretion adjustment(b) (216) (
Slide 19: Definitions
Definitions 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 S
Slide 20: Company Supplemental
Company Supplemental Mortgage Trust
Slide 21: Senior Lending Overview
Blackstone Mortgage Trust, Inc. 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 incom
Slide 22: Superior Real Estate Platform
Superior Real Estate Platform Blackstone Real Estate is a premier debt and equity investment and asset management platform Investor Capital Under Management BPP Core BREP Asia 23% 10% $15 billion AUM 110 professionals BREP Europe 17% $115B BREDS 13% Blackstone BREDS Drawdown BREDS Liquid Mortgage
Slide 23: Superior Real Estate Platform
Superior Real Estate Platform Global portfolio drives proprietary insight, leasing advantage and value creation Office 230M One of the largest owners in India and the U.S. Square Feet Retail 82M Active global investor since 2011 Square Feet Hotel 178k One of the largest owners in the U.S. Owned Ke
Slide 24: Superior Real Estate 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 • 43% of RE partners have international experience • Partners’ Meeting • Global ICMs 1 Global Real E
Slide 25: BREDS Investment Committee
Superior Real Estate Platform Blackstone’s unique investment process is complemented by fully-integrated corporate infrastructure BREDS Investment Committee Jonathan Gray Kenneth Caplan Kathleen McCarthy President and Chief Operating Officer of Blackstone Global C0-Head of Real Estate Global Co-He
Slide 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 Note: The composition of t
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