Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Investor Presentation (January 2014)
22 slides from Blackstone Mortgage Trust's investor presentation, Jan 27, 2014
Slide 1: Blackstone Mortgage Trust, January 2014
Exhibit 99.1 Mortgage Trust January 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 Exchange Act of 1934, as amended, which reflect the current views of Blackstone Mortgage T
Slide 3: Blackstone Mortgage Trust Overview
Blackstone Mortgage Trust Overview Blackstone Mortgage Trust, Inc. (NYSE: BXMT) is a real estate investment trust that primarily originatesandpurchasesseniormortgageloanscollateralizedby propertiesin the U.S.andEurope We are managed by Blackstone (“BX”), a world leader in real estate investing with
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 Economy Recovering Positive Capital Feedback Technicals Returning Loop Improving Confidence Growing 5
Slide 7: Real Estate Market Overview: Limited New Supply
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) Sources: REIS & Federal Reserve Economic Data as of Q3 2013. 6
Slide 8: Real Estate Market Overview: Improving Fundamentals
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 Q3 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) RealEstateDeleveraging (2) European banks have over 2x the leverage of U.S. banks… …and have only shed 25% of expected RE dispositions 33x €600B 23x €450B to come 21x Positive F
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 $89.8millionfloatingrate, first mortgageloansecuredby the WestinandaLoftSanFranciscoAirport hotels(1) 70.7% LTV; $138,290 per key Diverse demand drivers including airport traffic and SF/Silicon Valley business overflow Transaction sourced through existing
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) Illustrative Loan Economics (2) Whole Loan Yield L + 4.50% Leverage:
Slide 13: Capital Deployment
(1) Capital Deployment BXMT has executed on its first mortgage direct origination strategy with rapid success Since May, BXMT has closed $2.0 billion of loans; and another $282 million of loans are currently in closing 22 loans closed; 3 in closing; median loan size is $68 million Cumulative BXMT Lo
Slide 14: Portfolio Snapshot
Portfolio Snapshot The BXMT loan portfolio is comprised of a diversified portfolio of senior loans 100% of BXMT’s new loans are floating rate High quality owners and sponsors The$2.2 billionportfolio hasaweightedaverageLTVof 65%andall-inyieldof L+ 4.88% Property Type Geography Loan to Value ($ in mi
Slide 15: Financing
Financing Prudent use of leverage to enhance returns and diversification with an emphasis on stability of the right hand side of the balance sheet Debt Facilities ($1.8 billion in total) • Revolvingdebt facilitiestotaling$1.5 billion(1) from threelenders All-in Pricing (2) L + 2.00% L- + 2.50% Advan
Slide 16: BXMT Investment Highlights
BXMT Investment Highlights Superior Sponsorship • Affiliation with BXRealEstate,the largestprivate equity real estatebusinessin the world • Significantalignmentof interest: $96 million BXinvestment(1) • BREDS has approximately $10 billion AUM Strong Origination Platform • $2.2 billion of loanshavecl
Slide 17: Appendix
Appendix
Slide 18: Third Quarter 2013 Balance Sheet, Results and Core Earnings
Third Quarter 2013 Balance Sheet, Results and Core Earnings Balance Sheet and 3Q Results Core Earnings ($ in millions) ($ in thousands) Net income $8,320 - CT Legacy net income (437) Loan portfolio $1,286 Interest income $15.1 + Non-cash compensation 94 Core earnings $7,977 CT Legacy portfolio, net
Slide 19: Floating-Rate Business Model
Floating-Rate Business Model Due to our LIBOR-based lending and funding business model, our returns increase with rising short-term interest rates and therefore our asset and equity values are insulated from such increases As of September 30, 2013: (1) Loan Capitalization • $1.3 billion of floating-
Slide 20: Loan Origination Portfolio Details
Loan Origination Portfolio Details Thefollowing table providesdetails of our loan portfolio (1) asof September30, 2013: Principal Book Cash All-In Maximum Geographic Property Origination (2) (2) (3) ($ in millions) Loan Type Balance Value Coupon Yield Maturity Location Type LTV Loan 1 Sr. mortgage $
Slide 21: CT Legacy Portfolio – September 30, 2013
CT Legacy Portfolio – September 30, 2013 The CT Legacy Portfolio consists of our investment in CT Legacy Partners, our residual interests in CTCDOI, andour carriedinterest in CTOpportunity PartnersI, LP(“CTOPI”). CT Legacy Portfolio book value was $64.3 million as of quarter-end, which represents ad
Slide 22: Mortgage Trust
Mortgage Trust
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