Slide 1: Blackstone Mortgage Trust September 2014
Exhibit 99.1 Mortgage Trust September 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 originates senior loans collateralized by commercial properties in the U.S. and Europe • Portfolio weighted average LTV of 63% • Over 60% of the collateral located in major markets-
Slide 4: Superior Real Estate Platform
Superior Real Estate Platform Blackstone Real Estate is a premier debt and equity investment and asset management platform Blackstone Real Estate Equity Debt $70 billion AUM $10 billion AUM 226 professionals 67 professionals Rated / Approved Special Servicer Global Europe Asia International Drawdown
Slide 5: Superior Real Estate Platform
Superior Real Estate Platform Blackstone Real Estate has proprietary insight, long standing expertise and superior access to deal flow Office 54M Largest owner in U.S. Square Feet Hotel 298k Largest operator globally Keys Multifamily 32,764 Major investor nationally Units Retail 101M Most active inv
Slide 6: Seasoned Management Team and Fully Integrated Platform
Seasoned Management Team and Fully Integrated Platform Jonathan Gray John Schreiber Global Head of Real Estate Co-Founder of Blackstone Real Estate Advisors Member of Blackstone Board of Directors Member of BXMT Board of Directors Member of BXMT Investment Committee Chair of BXMT Investment Committe
Slide 7: Real Estate Market Overview
Real Estate Market Overview Economic conditions are sustaining a favorable commercial real estate market • Liquidity and fundamentals in the commercial real estate market are generally in balance Economy Recovering Positive Capital Feedback Technicals Returning Loop Improving Confidence Growing 6
Slide 8: Real Estate Market Overview
Real Estate Market Overview Limited new supply coupled with modest growth is a favorable investment environment for senior commercial real estate debt U.S. Aggregate Construction U.S. GDP Completions ($ in billions) 3.5% $17,295 3.0% 2.5% 2.0% $14,381 1.5% 1.0% 0.5% 0.0% '99 '00 '01 '02 '03 '04 '05
Slide 9: Real Estate Market Overview
Real Estate Market Overview Debt markets are normalizing, but CMBS issuance is still below peak levels U.S. CRE Debt Holders Global CMBS Issuance ($ in billions) ($ in billions) (Office, Industrial and RetailSectors) (Office, Industria and Retail Sectors) $420 $360 Life GSEs, $239 Companies, $300 $3
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 to 80% Rate LIBOR + 3.50% and higher, scaled to risk Term 3 to 5 year
Slide 11: Capital Deployment
Capital Deployment Since May 2013, BXMT has closed 50 loans representing $4.5 billion of commitments • Average loan size is $90 million Cumulative BXMT Loan Originations ($ in millions) $5,000 SeniorRate Floating Loans Loans (Net Book Value, % of Total) $4,500 (Net Book Value, % of Total) $4,000 94.
Slide 12: Portfolio Snapshot
Portfolio Snapshot BXMT’s portfolio is geographically diversified, but weighted toward New York, California and the UK WA 6.0% OR 0.9% RI MI 0.2% 1.3% NV 0.3% IL OH CO NY 0.2% 2.5% 31.6% 2.6% VA CA 18.9% 1.4% DC AZ 2.3% 2.0% GA 3.9% TX UK NL 3.8% 1.4% 14.6% 1.1% HI FL 5.0% 11
Slide 13: Portfolio Snapshot
Portfolio Snapshot Collateral property types are primarily office, hotel and multifamily; loan-to-value ratios are most frequently in the 65% - 70% range The portfolio has a weighted average all-in yield of L + 5.02% Property Type Diversification Loan to Value ($ in millions) $1,400 Other $1,200 Con
Slide 14: BXMT Sample Transaction: SFO Airport Hotels
BXMT Sample Transaction: SFO Airport Hotels $100.0 million floating rate, first mortgage loan secured by the Westin and aLoft SFO Airport hotels • 70.7% LTV; $154k per key • Diverse demand drivers including airport traffic and SF/Silicon Valley business overflow Transaction sourced through existing
Slide 15: BXMT Sample Transaction: North Michigan Avenue
BXMT Sample Transaction: 401 North Michigan Avenue $190.0 million floating rate, first mortgage loan secured by 401 North Michigan Avenue in Chicago • Well located class A office building undergoing value-enhancing repositioning; 69.7% LTV • Initial funding of $145.0 million with $45.0 million futur
Slide 16: BXMT Sample Transaction: Westminster UES
BXMT Sample Transaction: Westminster UES $181.0 million floating rate, first mortgage loan secured by The Westminster apartment building located on Manhattan’s Upper East Side • 150 unit multifamily rental building undergoing condominium conversion • 68.3% LTV Sponsored by repeat BXMT borrower that
Slide 17: BXMT Sample Transaction: Aldwych House
BXMT Sample Transaction: Aldwych House £78.0 million floating rate, first mortgage loan secured by Aldwych House in central London • Well located 162k sf prime office building undergoing £28 million, value-enhancing, refurbishment • 50.4% LTV Transaction sourced through existing Blackstone relations
Slide 18: BXMT Illustrative Loan Economics
BXMT Illustrative Loan Economics BXMT’s floating rate senior loans are supported by significant owner’s equity Prudent use of balance sheet leverage drives attractive risk adjusted returns for BXMT shareholders (a) LTV Capital Structure $ Cum. Illustrative Loan Economics (b) Whole Loan Yield L + 4.0
Slide 19: Financing
Financing (a) The mainstay of BXMT’s financing capacity is comprised of six credit facilities totaling $2.9 billion • Revolving credit facilities provide for efficient liquidity management Capacity $2.9 billion (a) All-in Pricing (b) L + 1.70% - L + 2.00% Advance Rate 75% - 80% Term Term matched to
Slide 20: Financing (Cont'd)
Financing (Cont’d) Asset specific financings augment BXMT’s leverage strategy • Non-revolving; generally non-recourse • Pricing directly related to underlying collateral assets ($ in Millions) • Non-cross collateralized, with limited recourse and margin call Asset-Specific provisions Repurchase • Ba
Slide 21: BXMT Investment Highlights
BXMT Investment Highlights Superior Sponsorship • Affiliation with BX Real Estate, the largest private equity real estate business in the world Significant alignment of interest: $99 million BX investment (a) • • BREDS has approximately $10 billion AUM Strong Origination Platform • $4.5 billion of l
Slide 22: Appendix: 2Q 2014 Earnings Release Excerpts
Appendix: 2Q 2014 Earnings Release Excerpts
Slide 23: Second Quarter 2014 Balance Sheet, Results, and Core Earnings
Second Quarter 2014 Balance Sheet, Results, and Core Earnings ($ in Millions) Balance Sheet Net Core Income Earnings Loan Origination $41.4 $3,488 portfolio Interest income + $- $41.4 $36 CT Legacy portfolio Net results $15.5 + ($15.5) $- $2,241 Secured debt obligations ($15.3) Interest expense ($15
Slide 24: Floating-Rate Business Model: Loan Capitalization
Floating-Rate Business Model Because of BXMT’s LIBOR-based lending and funding business model, its returns increase with rising short-term interest rates. $3.5 billion of floating-rate loans, indexed to LIBOR. Loan Capitalization (a) (Principal Balance, $ in Millions) $2.2 billion of floating-rate l
Slide 25: Loan Origination Segment Portfolio Details
Loan Origination Segment Portfolio Details The following table provides details of BXMT’s Loan Origination Segment portfolio: ($ in Millions) Principal Book Cash All-In Maximum Geographic Property Origination (a) (a) (b) Origination Date Loan Type Balance Value Coupon Yield Maturity Location Type LT
Slide 26: CT Legacy Portfolio
CT Legacy Portfolio BXMT received its first CTOPI promote distribution resulting in $13.1 million of net income, after amounts paid under legacy compensation plans. Additionally, CTOPI’s net unrealized promote allocable to BXMT increased by $2.3 million, representing incremental future value. CT Leg
Slide 27: Mortgage Trust
Mortgage Trust