Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Investor Presentation (March 2014)
23 slides from Blackstone Mortgage Trust's investor presentation, Mar 14, 2014
Slide 1: March 2014
* Exhibit 99.1 * * * * * **** March 2014
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 ExchangeAct of 1934, as amended, which reflect the current views of Blackstone Mortgage Tr
Slide 3: Blackstone Mortgage Trust Overview
Blackstone Mortgage Trust Overview BlackstoneMortgageTrust, Inc.(NYSE:BXMT)is a real estateinvestmenttrust that primarily originatesandpurchasesseniormortgageloanscollateralizedby propertiesin the U.S.andEurope We are managed by Blackstone (“BX”), a world leader in real estate investing with nearly
Slide 4: Superior Real Estate Platform
Superior Real Estate Platform BX investment committee process and investment philosophy Superior sourcing capabilities through long-standing industry relationships Underwriting process includes proprietary data from extensive investment holdings Blackstone Real Estate Blackstone Real Estate Blacksto
Slide 5: Seasoned and Fully Integrated Platform
Seasoned and Fully Integrated Platform Jonathan Gray John Schreiber Global Head of Real Estate Co-Founder of Blackstone Real Estate Advisors Member of Blackstone Board of Directors Member of BXMT Board of Directors Member of BXMT Investment Committee Chair of BXMT Investment Committee Michael Nash E
Slide 6: Real Estate Market Overview
Real Estate Market Overview Market conditions are sustaining a favorable commercial real estate environment • Liquidity and fundamentals in the commercial real estate market are generally in balance Positive Feedback Loop 5
Slide 7: Real Estate Market Overview: Limited new supply and modest growth
Real Estate Market Overview Limited new supply coupled with modest growth is a favorable investment environment for senior commercial real estate debt U.S. Aggregate Construction Completions U.S. GDP ($ in billions) (Office, Industrial, and Retail Sectors) (Office, Industrial, and Retail Sectors) So
Slide 8: Real Estate Market Overview: Improving fundamentals and demand
Real Estate Market Overview Improving fundamentals and increased demand are driving volume U.S. Aggregate Property Sale Volume ($ in billions) Source: Real Capital Analytics as of Q4 2013 7
Slide 9: Real Estate Market Overview: European banks overleveraged
Real Estate Market Overview European banks remain overleveraged with enormous real estate exposure Overleveraged Banks (1) Real Estate Deleveraging (2) European banks have over 2x the leverage of U.S. banks… …and have only shed 25% of expected RE dispositions €450B to come (1) SNL, ECB, April 2013;
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 60-80% Rate LIBOR + 3.75% and higher, scaled to risk Term 3 to 5 years A
Slide 11: BXMT Sample Transaction: SFO Airport Hotels
BXMT Sample Transaction: SFO Airport Hotels $89.8 million floating rate, first mortgage loan secured by the Westin and aLoft San Francisco Airport(1) hotels • 70.7% LTV; $138,290 per key • Diverse demand drivers including airport traffic and SF/Silicon Valley business overflow Transaction sourced th
Slide 12: BXMT Sample Transaction: SFO Airport Hotels
BXMT Sample Transaction: SFO Airport Hotels BXMT’s floating rate senior mortgage loans are supported by significant owner’s equity Prudent use of balance sheet leverage drives strong risk adjusted returns for BXMT shareholders (1) LTV Capital Structure $ Cum. $/Unit Illustrative Loan Economics (2) W
Slide 13: Capital Deployment
(1) Capital Deployment Since May, BXMT has closed $2.8 billion of loans; and another $666 million of loans are currently in closing • 32 loans closed; 8 in closing; median loan size is $68 million (2) The $2.8 billion portfolio has a weighted average all-in yield of L + 5.28% • 100% of BXMT’s new lo
Slide 14: Portfolio Snapshot
Portfolio Snapshot BXMT’sportfolio is geographicallydiversified,but weightedtowards New York andCalifornia WA 7.7% U.K. 4.4% OR 1.2% NY 37.8% MI 0.3% NV RI 0.4% 1.6% OH 0.2% IL CO 7.1% CA 3.3% 18.6% VA 1.7% AZ 2.5% GA 4.1% TX 3.9% FL 3.3% HI 1.8% Note: Portfolio data as of February 19, 2014; include
Slide 15: Portfolio Snapshot
Portfolio Snapshot Collateralproperty type tends towards office, lodgingandresidential;portfolio LTVscluster aroundthe 65%- 70%range Property Type Diversification Loan to Value ($ in millions) ($ in millions) Note: Portfolio data as of February 19, 2014; includes loans closed and in closing; exclude
Slide 16: Financing
Financing Prudentuseof leverageto enhancereturns anddiversificationwith an emphasison stability of the right hand sideof the balancesheet Debt Facilities ($2.8 billion in total) • Revolvingdebt facilitiestotaling$2.5 billion(1) from five lenders All-inPricing(2) L + 2.00% L- + 2.50% Advance Rate 75%
Slide 17: BXMT Investment Highlights
BXMT Investment Highlights Superior Sponsorship • Affiliation with BXRealEstate,the largestprivate equity real estatebusinessin the world (1) • Significant alignment of interest: $99 million BX investment • BREDS has approximately $9 billion AUM Strong Origination Platform (2) since May 2013 equity
Slide 18: Appendix
Appendix
Slide 19: Fourth Quarter 2013 Balance Sheet, Results and Core Earnings
Fourth Quarter 2013 Balance Sheet, Results and Core Earnings ($ in millions) Net Core Income Earnings Interest income $24.6 + $- $24.6 Net results ($3.7) + $3.7 $- Interest expense ($9.1) + $0.1 (2) ($9.0) Non-cash comp. ($1.2) $1.2 $- G&A expenses + ($3.5) $- ($3.5) $7.1 $12.0 (1) Includes stockhol
Slide 20: Floating-Rate Business Model
Floating-Rate Business Model Because of BXMT’s LIBOR-based lending and funding business model, its returns increase with rising short-term interest rates. (1) As of December 31, 2013: Loan Capitalization ($ in millions) • $2.0 billion of floating-rate loans, indexed to LIBOR. • $1.2 billion of float
Slide 21: Loan Origination Portfolio Details
Loan Origination Portfolio Details (1) as of December 31, 2013: The following table provides details of our loan portfolio ($ in Millions) Principal Book Cash All-In Maximum Geographic Property Origination (2) Origination Date Loan Type Balance Value Coupon(3) Yield(3) Maturity(4) Location Type LTV
Slide 22: CT Legacy Portfolio – 4Q Highlights
CT Legacy Portfolio – 4Q Highlights The CT Legacy Portfolio primarily consists of BXMT’s carried interest in CTOPI, its investment in CT Legacy Partners, and its residual interests in CT CDO I. CT Legacy Portfolio Receivedan $8.8 million tax-advancedistribution from CTOPI. Component Book Value BXMT’
Slide 23: Mortgage Trust
Mortgage Trust
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