Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Capital Trust — Investor Presentation (May 2008)
29 slides from Blackstone Mortgage Trust's investor presentation, May 16, 2008
Slide 1: Company Presentation
Exhibit 99.1 Company Presentation May 2008
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: Overview
Overview =a CAPITALTRUST
Slide 5: Overview: Capital Trust
OVERVIEW · 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 § Fully
Slide 6: Unique Business Model
OVERVIEW · Unique Business Model Capital Trust, Inc. Balance Sheet (NYSE: “CT”) Net Interest Margin 100% CT Investment Management Co., LLC (TRS) + • Investment Manager Investment Management • CDO Collateral Manager Fee Income • Special Servicer (Management Contracts) CT Mezzanine CT Large Loan CT Hi
Slide 7: Seasoned Management Team
OVERVIEW · Seasoned Management Team Board of Directors Sam Zell John Klopp Thomas Henry Nassau Martin Edelman Dobrowski Joshua Polan Craig Hatkoff Lynne Sagalyn Edward Hyman CEO, John Klopp COO, Stephen CFO, Geoffrey Plavin Jervis CCO, Thomas Ruffing CRE Investing CRE Underwriting PRN Capital Financ
Slide 8: Recent Highlights
OVERVIEW · Recent Highlights § Operating activity: » 1Q 2008 diluted net income: $0.82 per share » 1Q 2008 dividend: $0.80 per share § Portfolio performance: » Recorded no losses or reserves for losses during the quarter in any portfolio. At quarter end, two balance sheet loans aggregating $22 milli
Slide 9: Trailing 12-Month Performance
OVERVIEW · Trailing 12-Month Performance NYSE: CT 2Q’ 07 Div. 4Q ’07 Div. ($0.80 per share) (Regular $0.80 per share) (’07 Special $1.90 per share) 1Q’ 08 Div. ($0.80 per share) 3Q’ 07 Div. ($0.80 per share) (2) Note: (1) Peer group includes iStar Financial Inc., Anthracite Capital Inc., Newcastle I
Slide 10: Growth Strategy
OVERVIEW · 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 § Expand
Slide 11: Investment Strategy
Investment Strategy © CAPITALTRUST
Slide 12: Global Capital Markets / Debt Market Impact
INVESTMENT STRATEGY · 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) Source:
Slide 13: Source: JPMorgan note
Note: (1) Source: JPMorgan II - 2
Slide 14: Market Capacity
INVESTMENT STRATEGY · Market Capacity § Securitized lenders originated +/-50% of all CRE debt in 2006/H1 2007 § Portfolio lenders (banks, insurance companies and pension funds) represent the only active lenders in today’s market § Current lending universe has insufficient capacity to address financi
Slide 15: The Landscape
INVESTMENT STRATEGY · The Landscape § Today » Dealer inventory backlogs/forced liquidations by leveraged investors » Investor uncertainty + lack of financing = markets have not cleared » CMBS and loan spreads have widened to historic levels » However, not all collateral has been created equal § Tomo
Slide 16: Market Opportunity
INVESTMENT STRATEGY · 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 returns a
Slide 17: CT Platform
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 exper
Slide 18: Asset Management
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 manager
Slide 19: Risk Management Principles
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 & dura
Slide 20: Financial Information
Financial Information * ° CAPITALTRUST
Slide 21: Financial Information
FINANCIAL INFORMATION ($ millions) Capital Trust, Inc. 3/31/08 Assets $3,306 Liabilities $2,803 Net Interest Margin Equity $503 (100% owned) CT Investment Management Base and Incentive Co., LLC (TRS) Management Fees (Management Contracts) (4.7% owned) (0.0% owned) (1) (0.0% owned) (0.01% owned) (1)
Slide 22: Financial Information: Assets, Liabilities and Portfolio Statistics
FINANCIAL INFORMATION Loans # of Loans: 80 Face: $2,259,465 3/31/08 Variable/Fixed: 92% / 8% (1) Assets GAAP Yield: 6.06% WAL: 3.7 years Cash $138,284 WALTV: (2) 67% Loans 2,251,614 NOI Yield: 10% CMBS 873,493 Equity Investments 905 Total Return Swaps - CMBS Interest Rate Hedges - Issues/Bonds: 58/7
Slide 23: Loan Portfolio Breakdown
FINANCIAL INFORMATION · Loan Portfolio Breakdown Notes: (1) Capital Trust loan portfolio as of 3/31/08. III - 3
Slide 24: CMBS Portfolio Breakdown
FINANCIAL INFORMATION · CMBS Portfolio Breakdown Notes: (1) Capital Trust CMBS portfolio as of 3/31/08. III - 4
Slide 25: Financial Information: Secured Debt, CDOs and Credit Facility
FINANCIAL INFORMATION Secured Debt • $1.6 billion of committed credit facilities • Multiple providers (Morgan Stanley, Goldman Sachs, JPMorgan, Bank of America, Lehman Brothers, Citigroup) • Coupon: LIBOR + 45 bps to LIBOR + 250 bps • GAAP Cost of Funds: 3.97% 3/31/08 Assets Collateralized Debt Obli
Slide 26: Investment Management
FINANCIAL INFORMATION · Investment Management ($ millions) CT Investment Management Co., LLC (TRS) (Management Contracts) (1) (1) (3) (CT: 4.7%) (CT: 0.0%) (CT: 0.0%) (CT: 0.01%) (CT: 6.4%) CT Mezzanine CT Large Loan CT High Grade CTX Fund I, CT Opportunity Partners III, Inc. 2006, Inc. MezzanineSM
Slide 27: Income Statement
FINANCIAL INFORMATION · Income Statement ($000s) 3 Months Ended 3 Months Ended 3/31/08 3/31/07 Portfolio Net Interest Margin Interest Income $56,554 $57,449 Interest Expense (37,944 ) (36,100 ) Net Interest Margin 18,610 21,349 Other Revenue Management & Advisory Fees 2,197 749 Incentive Management
Slide 28: Conclusion
FINANCIAL INFORMATION · 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 fees § E
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