Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Q2 2019 Earnings Presentation
30 slides from Blackstone Mortgage Trust's earnings presentation, July 2019
Slide 1: 2Q 2019 Earnings Release & Company Supplemental
July 2019 2Q 2019 Earnings Release & Company Supplemental
Slide 2: BXMT Highlights
BXMT Highlights BXMT has increased in scale through strong origination volume while maintaining consistently low leverage In 2Q’19, BXMT generated EPS of $0.59 and Core EPS(a) of $0.68 ($ in billions, except per share data) LTM Performance(b) 6.9% 100% Dividend Yield(c) Performing Loans +$3.0B P
Slide 3: Second Quarter 2019 Results
Second Quarter 2019 Results Earnings & EPS of $0.59 and Core Earnings(a) per share of $0.68, or $86 million Dividends Increased book value per share by $0.53 to $27.85; paid $0.62 per share dividend $1.3 billion of originations and $192 million of fundings under existing commitments Originatio
Slide 4: Earnings & Dividends
Earnings & Dividends 2Q GAAP EPS of $0.59 and Core Earnings(a) of $0.68 per share; $0.62 per share dividend equates to a 6.9% dividend yield(b) Accretive equity issuances and retained earnings enhanced book value per share LTM Core Earnings Per Share(c) Book Value Per Share Growth Retained Core
Slide 5: Originations
Originations $1.3 billion of originations in 2Q’19 and LTM(a) net fundings of $2.6 billion Originations in U.S., U.K. and Germany demonstrate the benefit of Blackstone’s global reach ($ in billions) 2Q 2019 Origination Highlights LTM(a) Net Fundings 100% senior loans 100% floating rate Fundi
Slide 6: Portfolio Composition
Portfolio Composition $15.8 billion portfolio(a) comprised of 124 assets secured by institutional quality real estate, with 71% in gateway markets High quality 100% performing portfolio with low weighted average LTV(a)(b) of 63% Major Market Focus(a) Collateral Diversification(a) 1% CAN Other 1%
Slide 7: Capitalization
Capitalization Entered into a $500 million senior secured term loan B at L+2.50% with a 7-year term $311 million of equity raised at 1.32x P/B resulting in $0.52 per share of book value accretion $10.9 billion of outstanding asset-level financing on a market-leading, match-funded basis Financi
Slide 8: Interest Rates
Interest Rates Floating rate assets and matched liabilities support book value and earnings stability LIBOR floors in certain loans mitigate the impact of potential rate declines Sensitivity to USD LIBOR(a) Portfolio Fixed vs. Floating(b) (Quarterly Earnings per Share) (% of Total Investment Exp
Slide 9: Appendix
Appendix Mortgage Trust
Slide 10: Appendix – Second Quarter 2019 Operating Results & Net Fundings
Appendix – Second Quarter 2019 Operating Results & Net Fundings Operating Results Net Fundings(b) ($ in millions) ($ in billions) GAAP Net Core Income Adjustments Earnings $1.1 ($1.4) Interest Income $ 223.4 $— $ 223.4 $16.1 $15.8 Interest Expense (116.9) — (116.9) Management and (21.0) — (21.0) Inc
Slide 11: Portfolio Details
Portfolio Details ($ in millions) Origination Total Principal Net Book Cash All-in Maximum Property Loan Per Origination (a) (b)(c) (b)(c) (d) (a) Loan Type Date Loan Balance Value Coupon Yield Maturity Location Type SQFT / Unit / Key LTV Loan 1 Senior loan 3/22/2018 $ 1,063 $ 1,063 $ 1,058 L + 3.15
Slide 12: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in thousands, except per share data) June 30, 2019 December 31, 2018 Assets Cash and cash equivalents $ 80,584 $ 105,662 Loans receivable, net 14,280,919 14,191,200 Other assets 203,501 170,513 Total assets $ 14,565,004 $ 14,467,375 Liabilities and equity Secured debt
Slide 13: Consolidated Statements of Operations
Consolidated Statements of Operations ($ in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Income from loans and other investments Interest and related income $ 223,369 $ 191,479 $ 448,128 $ 346,904 Less: Interest and related expenses 116,
Slide 14: Per Share Calculations
Per Share Calculations (Amounts in thousands, except per share data) Three Months Ended June 30, 2019 March 31, 2019 Net income(a) $ 75,174 $ 76,565 Non-cash compensation expense 7,754 7,768 Hedging and foreign currency income, net (b) 3,237 3,271 Core Earnings Other items 58 95 Reconciliation Core
Slide 15: Reconciliation of Net Income to Core Earnings
Reconciliation of Net Income to Core Earnings (Amounts in thousands, except per share data) LTM Ended Three Months Ended, Jun 30, Jun 30, Mar 31, Dec 31, Sept 30, 2019 2019 2019 2018 2018 Net income(a) $ 303,547 $ 75,174 $ 76,565 $ 73,643 $ 78,165 Non-cash compensation expense 29,922 7,754 7,768 7,6
Slide 16: Definitions
Definitions Core Earnings: Blackstone Mortgage Trust, Inc. (“BXMT”) discloses Core Earnings in this presentation. Core Earnings is a financial measure that is calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United S
Slide 17: Forward-Looking Statements
Forward-Looking Statements This presentation may contain 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 BXMT’s current views with respect to, among other things,
Slide 18: Company Supplemental
Company Supplemental Mortgage Trust
Slide 19: Blackstone Mortgage Trust, Inc. Overview
Blackstone Mortgage Trust, Inc. Overview Blackstone Mortgage Trust, Inc. (NYSE: BXMT) is a REIT that originates senior commercial mortgage loans in North America, Europe and Australia Affiliation with BX, largest real estate Superior Sponsorship private equity business in the world Attractive cu
Slide 20: 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 BPP / BREIT Core+ BREP Asia 26% 9% $19 billion AUM 120 professionals BREP Europe 18% $154B BREDS 12% Blackstone BREDS Drawdown BREDS Liquid M
Slide 21: Superior Real Estate Platform: Current Holdings
Superior Real Estate Platform(a) One of the largest real estate owners and operators in every sector and geography Current Holdings Office 231M Square Feet Hospitality 151k Owned Keys Residential 308k Units Industrial 561M Square Feet (a) As of March 31, 2019. In addition to wholly-owned assets, f
Slide 22: Superior Real Estate Platform
Superior Real Estate Platform BXMT operates within Blackstone Real Estate’s highly integrated global business Blackstone Advantage Regular Meetings Single Perspective Global Business Weekly • 527 professionals • 11 global offices • Partners’ Meeting • Global ICMs 1 Global Real Estate Platform • In
Slide 23: 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 Kenneth Caplan Kathleen McCarthy Nadeem Meghji BX Global C0-Head of Real Estate BX Global C0-Head of Real Estate Head of Real Estate Americas
Slide 24: 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, Europe and Australia Loan to Value Last dollar 50% to 80% Rate LIBOR + 3.50% and higher, scaled to risk Ter
Slide 25: Sample Transaction: 123 Mission
Sample Transaction: 123 Mission $187 million floating rate, first mortgage loan secured by 123 Mission in San Francisco • Well located class A office building undergoing value-enhancing repositioning; 65% LTV • Initial funding of $169 million with $18 million future funding commitment for building
Slide 26: Sample Transaction: Westin Maui
Sample Transaction: Westin Maui $339 million floating rate, first mortgage loan secured by Westin Hotel in Maui, Hawaii • Well located in beachfront Ka’anapali surrounded by retail, dining and golf courses; 61% LTV; $551k per key(a) • Initial funding of $267 million with $72 million future funding
Slide 27: Sample Transaction: Woolworth Building
Sample Transaction: Woolworth Building $355 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; 71% LTV Woolwo
Slide 28: 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 29: 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 30: BXMT Relative Value
BXMT Relative Value Blackstone provides compelling relative value compared to other listed real estate products Other Comm Agency Resi Equity mREITs mREITs REITs Yield Dividend Yield Sr. Strategy Senior Loans Floating Rate Low Earnings Volatility Note: The compositi
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