Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Investor Presentation (August 2013)
25 slides from Blackstone Mortgage Trust's investor presentation, Aug 22, 2013
Slide 1: Blackstone Mortgage Trust (BXMT)
Highly Confidential & Trade Secret Blackstone Mortgage Trust (BXMT) August 2013
Slide 2: Disclaimer
Highly Confidential & Trade Secret Disclaimer 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 the current views of Blackstone Mortgage
Slide 3: Blackstone Mortgage Trust Overview
Highly Confidential & Trade Secret Blackstone Mortgage Trust Overview Blackstone Mortgage Trust, Inc. (NYSE: BXMT) is a real estate investment trust that primarily originates and purchases senior mortgage loans collateralized by properties in the United States and Europe. We are managed by Blackston
Slide 4: Superior Real Estate Platform
Highly Confidential & Trade Secret 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 Est
Slide 5: Seasoned and Fully Integrated Platform
Highly Confidential & Trade Secret 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
Slide 6: Real Estate Debt Market Overview
Highly Confidential & Trade Secret Real Estate Debt Market Overview The supply/demand imbalance for debt capital creates an attractive lending environment in the U.S. and Europe U.S. CRE Debt Maturities European CRE Debt Maturities (Dollars in billions) (Euros in billions) $374 $350 $346 $326 $321 €
Slide 7: Banking Environment
Highly Confidential & Trade Secret Banking Environment Increased regulation and overleveraged balance sheets have reduced the lending capacity of European banks in the U.S. and Europe Overleveraged Banks European banks have 2-3x the leverage of U.S. banks 45x 40x 24x 14x U.S. U.K. France Germany ___
Slide 8: Current Investment Environment
Highly Confidential & Trade Secret Current Investment Environment Limited new supply coupled with modest growth is a favorable investment environment for senior commercial real estate debt U.S. Aggregate Construction Starts U.S. GDP (Annualized) ($ in billions) $15,864 4.5% 4.0% 3.5% 3.0% 1984–2008
Slide 9: Current Opportunity
Highly Confidential & Trade Secret Current Opportunity Today’s market conditions provide BXMT the opportunity to take relatively less risk while generating higher returns (1) 2007 Today $100 (2) Equity $80 (2) Mezzanine Debt L + 3.00% Equity Senior Debt BXMT L + 1.50% Target Senior Debt Assets L + 4
Slide 10: Target Investments
Highly Confidential & Trade Secret Target Investments Loan Size $50mm to $500mm 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
Slide 11: Financing
Highly Confidential & Trade Secret Financing Prudent use of leverage to enhance returns and diversification Develop diversified funding sources from traditional lenders and capital markets • Leverage institutional relationships of BX and BREDS Credit Facilities ($1.9 billion in total) Revolving cred
Slide 12: BXMT Investment Highlights
Highly Confidential & Trade Secret BXMT Investment Highlights Superior Sponsorship • Affiliation with Blackstone Real Estate, the largest private equity real estate business in the world Significant Alignment of Interest • $72 million BX investment BX Debt Investment Experience (1) • BREDS has appro
Slide 13: Appendix
Highly Confidential & Trade Secret Appendix Blackstone Mortgage Trust 12
Slide 14: Alignment of Interest and Governance
Highly Confidential & Trade Secret Alignment of Interest and Governance Blackstone $72 million investment by BX (1) Common Share Investment 180-day lockup for Issuer and its directors/officers, and BX affiliates/certain employees Base Management Fee 1.5% of Equity per annum, payable in cash, quarter
Slide 15: BXMT Ownership Structure
Highly Confidential & Trade Secret BXMT Ownership Structure Third Party Stockholders Blackstone Blackstone Corporate Employee/Associate Investment Investment 90% 10% Management Agreement BXMT Advisors 100% L.L.C. CT Legacy Assets (1) Loan Originations $268 million $1.8 billion ______________________
Slide 16: BXMT Investment Committee
Highly Confidential & Trade Secret BXMT Investment Committee Our Manager’s investment committee approves our loans and investments, and advises our senior management team on investment strategy and portfolio holdings Name Years of ExperiencePosition Held with Blackstone or Blackstone Affiliate Inves
Slide 17: Second Quarter 2013 Results *Excerpts*
Confidential Blackstone Mortgage Trust, Inc. Second Quarter 2013 Results *EXCERPTS* Blackstone Mortgage Trust 16
Slide 18: Loan Originations and Portfolio Diversification
Loan Originations During the quarter, we closed eight new loans with total commitments of $765.2 million. Of this amount, we funded $756.6 million as of June 30, 2013. Weighted-average LTV of new loan originations of 65%. All newly originated loans are floating rate senior mortgage loans. (1) Portfo
Slide 19: Loans Receivable Portfolio
Loans Receivable Portfolio The following table provides details of our loan portfolio (1) as of June 30, 2013: Principal Book Cash All-In Maximum Geographic Property Origination (2) (2) (3) (Dollars in Millions) Loan Type Balance Value Coupon Yield Maturity Location Type LTV Loan 1 Sr. mortgage $ 68
Slide 20: Stockholders' Equity and Book Value per Share
Stockholders’ Equity and Book Value per Share Stockholders’ equity totaled $712.7 million, or $24.67 per share as of June 30, 2013. • On May 29, 2013, we completed an offering of 25.9 million shares of class A common stock for gross proceeds of $656.8 million, and net proceeds of $633.6 million afte
Slide 21: CT Legacy Portfolio
CT Legacy Portfolio Our CT Legacy Portfolio consists of: our investment in CT Legacy Partners, our residual interests in CT CDO I, and our carried interest in CT Opportunity Partners I, LP (“CTOPI”). As we focus on the growth of our loan origination business, we continue to aggressively asset manage
Slide 22: CT Legacy Portfolio: CT Legacy Partners
CT Legacy Portfolio: CT Legacy Partners CT Legacy Partners is the March 2011 restructuring vehicle that owns our remaining legacy asset portfolio (1) . Blackstone Mortgage Trust owns a controlling interest in CT Legacy Partners, subject to liabilities under its secured notes and management incentive
Slide 23: CT Legacy Portfolio: CT CDO I
CT Legacy Portfolio: CT CDO I CT CDO I is a collateralized debt obligation issued in 2004. Blackstone Mortgage Trust owns the residual debt and equity positions of CT CDO I. During the second quarter, CT CDO I had $62.5 million of investment repayments. Proceeds were used to repay its senior outstan
Slide 24: CT Legacy Portfolio: CTOPI
CT Legacy Portfolio: CTOPI CTOPI is a private equity real estate fund that we sponsored and formed in 2007. The fund invested $491.5 million in 39 transactions between 2007 and 2012, of which $291.8 million has been realized and $199.7 million remains outstanding (carried at 137% of cost) as of June
Slide 25: Blackstone Mortgage Trust (BXMT)
Highly Confidential & Trade Secret Blackstone Mortgage Trust (BXMT)
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