Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Capital Trust — Investor Presentation (March 2008)
28 slides from Blackstone Mortgage Trust's investor presentation, Mar 18, 2008
Slide 1: Company Presentation March 2008
Company Presentation March
Slide 2: Disclaimer
Disclaimer Except for historical information contained herein, the statements in this presentation regarding the Company's business, strategy, portfolio management and results of operations are forward-looking statements that are dependent upon certain risks and uncertainties, including those relate
Slide 3: Table of Contents
TABLE OF CONTENTS I. Overview II. Investment Strategy III. Financial Information
Slide 4: Capital Trust
o CAPITALT RUST
Slide 5: Overview: Capital Trust
OVERVIEW I - · Capital Trust § Largest dedicated commercial real estate subordinate debt investor in the US » Founded by Sam Zell and John Klopp in 1997 » Originated over $10 billion of investments since inception § Unparalleled track record » Less than 1.0% loss experience across all portfolios § F
Slide 6: Unique Business Model
OVERVIEW I - CT Investment Management Co., LLC (TRS) 100% CT Mezzanine Partners III, Inc. · Unique Business Model Balance Sheet Net Interest Margin Investment Management Fee Income + Capital Trust, Inc. (NYSE: “CT”) (Management Contracts) • Investment Manager • CDO Collateral Manager • Special Servi
Slide 7: Board of Directors and Seasoned Management Team
Board of Directors Sam Zell Thomas Dobrowski Martin Edelman Craig Hatkoff Edward Hyman John Klopp Henry Nassau Joshua Polan Lynne Sagalyn OVERVIEW I - · Seasoned Management Team Capital Markets CEO, John Klopp CFO, Geoffrey Jervis COO, Stephen Plavin Finance/Accounting Administration CRE Investing &
Slide 8: Recent Highlights
· Recent Highlights § Operating activity: » 2007 full year diluted net income: $4.77 per share (+40% YoY) » 2007 total dividends: $5.10 per share (+48% YoY) § Capital markets: » Issued $75 million of new trust preferred securities » Closed $100 million (upsized from $50 million) senior unsecured rev
Slide 9: Trailing 12-Month Performance
NYSE: CT · Trailing 12-Month Performance Note: (1) Peer group includes iStar Financial Inc., Anthracite Capital Inc., Newcastle Investment Corp., Arbor Realty Trust, Gramercy Capital Corp., RAIT Investment Trust, NorthStar Realty Finance Corp., and JER Investors Trust Inc. (2) Last quarter regular d
Slide 10: Growth Strategy
OVERVIEW I - · Growth Strategy § Originate accretive assets for the balance sheet § Continue to grow investment management business through the sponsorship of additional vehicles § Create the most efficient and stable capital structure through a diversity of financial instruments and providers § Exp
Slide 11: Investment Strategy
Investment Strategy
Slide 12: Global Capital Markets
INVESTMENT STRATEGY II - · Global Capital Markets § Liquidity crisis and credit crunch continue from mid 2007 § Systemic de-leveraging and re-pricing of risk » Regeneration of structured funding unresolved § Ultimate economic impact unclear » Global, US and regional impact differentials Note: (1) So
Slide 13: CMBS Spreads
INVESTMENT STRATEGY II - Note: (1) Source: JPMorgan Conduit CMBS Spreads Low ’07 High’08 Sr. AAA (10 Yr.) 22 310
Slide 14: Commercial Mortgage Maturities
INVESTMENT STRATEGY II - Total ’08/’09 Floating (1) $38 Fixed 56 $94 Note: (1) Initial maturity date. (2) Source: Bear Stearns. Includes only securitized commercial mortgage loans
Slide 15: Asset selection and underwriting keys to success
INVESTMENT STRATEGY II - While the pendulum has swung, asset selection and underwriting will be the keys to success going forward
Slide 16: Market Opportunity
INVESTMENT STRATEGY II - · Market Opportunity § Result = lenders back in the driver’s seat: » More conservative valuations » Lower advance rates » Tighter loan structures » Better pricing § Current market provides credit driven investors with the opportunity to generate attractive risk adjusted retu
Slide 17: CT Platform
II - INVESTMENT STRATEGY · CT Platform § Fully integrated platform uniquely qualified to take advantage of today’s market opportunities: » Broad origination/sourcing network » Disciplined underwriting culture and process » Deep experience with all financial products » Capital access and structuring
Slide 18: Asset Management
II - INVESTMENT STRATEGY · Asset Management § Asset Manager for all investments since inception » Directly manage all non securities related investments » Approved Special Servicer (Fitch, S&P, Moody’s) to directly control loan workouts for B Notes and first loss CMBS » Experienced CDO collateral ma
Slide 19: Risk Management Principles
II - INVESTMENT STRATEGY · Risk Management Principles § Create diversified portfolios » Asset category, property type and geographic market § Prudently employ leverage » Enhance returns » Increase the size and diversity of the portfolios § Manage a matched book » Control asset/liability mix (index &
Slide 20: Financial Information
Financial Information
Slide 21: Corporate Structure and Balance Sheet
CT High Grade Mezzanine SM (0.0% owned) (4.7% owned) Capital Trust, Inc. 12/31/07 Assets $3,211 Liabilities $2,803 Equity $408 CT Investment Management Co., LLC (TRS) (100% owned) (Management Contracts) III - Net Interest Margin Base and Incentive Management Fees FINANCIAL INFORMATION ($ millions) (
Slide 22: Balance Sheet Summary
FINANCIAL INFORMATION Assets Cash Loans CMBS Equity Investments Total Return Swaps Interest Rate Hedges (Swaps) Other Total Assets Liabilities Secured Debt CDO Debt Credit Facility Junior Sub. Debentures Participations Sold Interest Rate Hedges (Swaps) Other Total Liabilities Common Equity 12/31/07
Slide 23: Loan Portfolio Breakdown
III - FINANCIAL INFORMATION · Loan Portfolio Breakdown Notes: (1) Capital Trust loan portfolio as of 12/31/07.
Slide 24: CMBS Portfolio Breakdown
III - FINANCIAL INFORMATION · CMBS Portfolio Breakdown Notes: (1) Capital Trust CMBS portfolio as of 12/31/07.
Slide 25: Liabilities and Financing
Assets Cash Loans CMBS Equity Investments Total Return Swaps Interest Rate Hedges (Swaps) Other Total Assets Liabilities Secured Debt CDO Debt Credit Facility Junior Sub. Debentures Participations Sold Interest Rate Hedges (Swaps) Other Total Liabilities Common Equity 12/31/07 $31,525 2,257,563 876,
Slide 26: Investment Management
CT Investment Management Co., LLC (TRS) III - FINANCIAL INFORMATION · Investment Management ($ millions) » $1.2 billion of assets under management CT Mezzanine Partners III, Inc. 12/31/07 Assets $47 Liabilities $32 Equity $15 § Inv. period expired § $1.2B of investments § 1.4% mgmt. fee per annum §
Slide 27: Income Statement
Portfolio Net Interest Margin Interest Income Interest Expense Net Interest Margin Other Revenue Management & Advisory Fees Incentive Management Fees Other Subtotal Other Expenses G&A D&A Subtotal Recovery/(Provision) for losses Gain on Sale of Investments Income/(Loss) from Equity Investments Incom
Slide 28: Conclusion
FINANCIAL INFORMATION III - · Conclusion § Best in class management team § Fully aligned » Internally managed » Significant insider ownership § Unparalleled track record § Unique structure: » Balance sheet investments - net interest margin » Assets under management - base and incentive management fe