Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Investor Presentation (October 2013)
28 slides from Blackstone Mortgage Trust's investor presentation, Oct 1, 2013
Slide 1: Blackstone Mortgage Trust (BXMT)
Exhibit 99.1 Blackstone Mortgage Trust (BXMT) October 2013
Slide 2: Disclaimer
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 Trust, Inc. (“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 originates and purchases senior mortgage loans collateralized by properties in the United States and Europe. We are managed by Blackstone (“BX”), a world leader in real es
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 Debt Market Overview
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 $321 €285 €261 €240 2013 2014 2015 2016 2
Slide 7: Banking Environment
Banking Environment Increased regulation and overleveraged balance sheets have reduced the lending capacity of European banks in the U.S. and Europe Overleveraged Banks European banks have 2-3x the leverage of U.S. banks ________________________________________________ Source: IMF (October 2012). Bl
Slide 8: Current Investment Environment
Current Investment Environment Limited new supply coupled with modest growth is a favorable investment environment for senior commercial real estate debt U.S. Aggregate Construction Starts U.S. GDP (Annualized) ($ in billions) ________________________________________________ Source: Citi (June 2013)
Slide 9: Current Opportunity
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 + 4.00% ______________________________
Slide 10: Target Investments
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 risk Term 3 to 5 years Amortization
Slide 11: Capital Deployment
Capital Deployment BXMT has executed on its first mortgage direct origination strategy with rapid success • Since May, BXMT has closed $1.5 billion of loans; and another $529 million of loans are currently in closing • 18 transactions closed; 5 in closing; Median loan size is $68 million Cumulative
Slide 12: Portfolio Snapshot
Portfolio Snapshot The BXMT loan portfolio is comprised of select transitional, senior lending opportunities • 100% of BXMT’s new loans are floating rate • The portfolio has a weighted average LTV of 67% and all-in yield of L+5.44% Property Type Geography Loan to Value $600 $500 $400 $300 $200 $100
Slide 13: Financing
Financing Prudent use of leverage to enhance returns and diversification Develop diversified funding sources from traditional lenders and capital markets • Obtained leverage that is advantageous in terms of structuring and pricing Debt Facilities ($1.8 billion in total) Revolving debt facilities tot
Slide 14: BXMT Investment Highlights
BXMT Investment Highlights Superior Sponsorship • Affiliation with Blackstone Real Estate, the largest private equity real estate business in the world • Significant Alignment of Interest: $70 million BX Investment (1) BX Debt Investment Experience • BREDS has approximately $10 billion AUM (2) Stron
Slide 15: Appendix
Appendix Blackstone Mortgage Trust 14
Slide 16: Alignment of Interest and Governance
Alignment of Interest and Governance $70 million investment by BX (1) Blackstone Common Share 180-day lockup for Issuer and its directors/officers, and BX affiliates/certain employees, Investment entered into May 2013 Base Management Fee 1.5% of Equity per annum, payable in cash, quarterly in arrear
Slide 17: BXMT Ownership Structure
BXMT Ownership Structure Third Party Stockholders Blackstone Corporate Blackstone Investment Employee/Associate Investment 90% 10% Management Agreement BXMT Advisors 100% L.L.C. CT Legacy Assets (1) Loan Originations $268 million $2.0 billion ________________________________________ (1) CT Legacy As
Slide 18: BXMT Investment Committee
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 Investment Committee John Schreiber (Cha
Slide 19: Second Quarter 2013 Results *Excerpts*
Blackstone Mortgage Trust, Inc. Second Quarter 2013 Results *EXCERPTS* Blackstone Mortgage Trust 18
Slide 20: Loan Originations
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 21: 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 22: Loan Capitalization
Floating-Rate Business Model Because of 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. $756.6 million of floating-rate loans, indexed Loan Capitalization (1)
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 28: Blackstone Mortgage Trust (BXMT)
Blackstone Mortgage Trust (BXMT)
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