Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Investor Presentation (November 2016)
23 slides from Blackstone Mortgage Trust's investor presentation, November 2016
Slide 1: Blackstone Mortgage Trust November 2016
Mortgage Trust November 2016
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
To Be Updated Superior Real Estate Platform Blackstone Real Estate has proprietary insight, long standing expertise and superior access to deal flow Office 144M One of the largest owners in the U.S. Square Feet Retail 83M Active investor since 2011 Square Feet Hotel 284k One of the largest global
Slide 5: 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 BREP Asia BREP 6% BPP $14 billion AUM Europe 13% 105 professionals 21% BREDS BREDS $102B BREDS 14% Blackstone Mortgage Trust Drawdown Funds L
Slide 6: Superior Real Estate Platform
Superior Real Estate Platform 420+ people, 12 offices, 3 business units but one fully integrated real estate platform Blackstone Advantage Regular Meetings Single Perspective Global Business Weekly • 43% of RE partners have international experience • Partners’ Meeting • Global ICMs 1 Global Real E
Slide 7: Superior Real Estate Platform: BREDS Investment Committee
Superior Real Estate Platform Blackstone’s unique investment process is complemented by fully-integrated corporate infrastructure BREDS Investment Committee Jonathan Gray Stephen Plavin Jonathan Pollack Global Head of Real Estate CEO & President of BXMT Global Head of BREDS Member of Blackstone Bo
Slide 8: Commercial Real Estate Fundamentals
Commercial Real Estate Fundamentals Real estate continues to benefit from limited supply and moderate growth U.S. Construction Completions(a) U.S. Public REIT NOI(b) Office, Retail, and Industrial Sectors Same Store NOI Growth 3% 6% 5% 2Q’16 4.6% New Completions as % of Inventory 4% 2% 3% Down 58%
Slide 9: Commercial Real Estate Debt Market
Commercial Real Estate Debt Market CMBS and bank lenders are reducing CRE lending activity under regulatory pressure U.S. CRE Debt Holders(a) Global CMBS Issuance(b) ($ in billions) ($ in billions) (Office, Industrial, and Retail Sectors) (Office, Industrial, and Retail Sectors) $229B Down U.S 70%
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 yea
Slide 11: Sample Transaction: SFO Airport Hotels
Sample Transaction: SFO Airport Hotels $130 million floating rate, first mortgage loan secured by the Westin and aLoft SFO Airport hotels • 72% LTV; $200k per key • Diverse demand drivers including airport traffic and SF/Silicon Valley business overflow Loan upsized by $30 million 15 months afte
Slide 12: Sample Transaction: North Michigan Avenue
Sample Transaction: 401 North Michigan Avenue $190 million floating rate, first mortgage loan secured by 401 North Michigan Avenue in Chicago • Well located class A office building undergoing value-enhancing repositioning; 70% LTV • Initial funding of $145 million with $45 million future funding c
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 Blac
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: Portfolio Diversification
Portfolio Diversification BXMT’s $9.4 billion portfolio is diversified by collateral property type and geographic location Origination LTV(a) of 60% provides a 40% equity cushion against decreases in underlying real estate values Geographic Diversification Collateral Diversification (Principal B
Slide 16: 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) (Principal Balance, Dollars in Millions) (Principal Balance, Dollars in Millions) $2,500 6,000 Weighted Avg Weighted Avg 60% 2.5 5,
Slide 17: Financing
Financing BXMT has developed $9.8 billion of market leading financing capacity with an emphasis on stability through its long-term, matched funding, non-MTM strategy ($ in billions) Leverage Financing Capacity Credit $10.0 All-in cost of L+2.01% $3.0 $9.8 Facilities Asset-Specific All-in cost of L
Slide 18: 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 19: Interest Rates
Interest Rates Core Earnings are positively correlated to changes in USD and GBP LIBOR, the benchmark indices for 83% of BXMT’s loan portfolio and related secured financings(a) Portfolio Fixed vs. Floating Portfolio Income Sensitivity to USD LIBOR (% of Principal Balance) (Annual Dollars of Net In
Slide 20: 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 60% 50% $6.84 Dividends Paid 40% 30% 20% 10% $2.03 BVPS Accretion 0% Book Value Total Return -10% 2013 2014 20
Slide 21: BXMT Investor Base
BXMT Investor Base Blackstone and Blackstone employees combined are BXMT’s largest shareholder BXMT Ownership Equity Research Coverage (a) BX 7% Buy ratings from 9 of 9 research analysts(b) Retail 23% Institutional 70% $31.78 consensus stock price target 7.8% dividend yield and 1.19x price t
Slide 22: 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 23: Mortgage Trust
Mortgage Trust
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