EX-99.2 3 d574506dex992.htm EX-99.2 EX-99.2
Blackstone Mortgage Trust, Inc.
July 30, 2013
Second Quarter 2013 Results
Exhibit 99.2

Blackstone Mortgage Trust
1
Second Quarter 2013 Highlights
We
successfully
completed
our
“re-IPO”
offering
of
25.9
million
shares
of
class
A
common
stock
for
$25.50
per share.
•
Yielded gross proceeds of $659.8 million and net proceeds of $633.8 million after underwriter discounts
and expenses.
Closed eight new senior mortgage loans during the quarter with total commitments of $765.2 million.
Subsequent to quarter-end, we closed five loans totaling $289.1 million of commitments, for a total
of $1.1 billion.
An additional $376.4 million of loans with terms agreed are expected to close in the third quarter and we
have a robust pipeline of additional origination opportunities.
•
At our current pace of originations, we expect to be fully invested prior to year-end.
Closed
four
credit
facilities
during
the
quarter,
providing
$1.0
billion
of
credit.
Subsequent
to
quarter-end,
we upsized one of the facilities by $250.0 million, and are in the process of closing and upsizing additional
credit facilities.
Collected
$99.4
million
of
principal
repayments
in
our
CT
Legacy
Portfolio,
and
repaid
all
remaining
legacy
repurchase obligations.
June 30, 2013 consolidated assets, including our CT Legacy Portfolio, were $1.1 billion and consolidated
liabilities
were
$285.4
million,
resulting
in
stockholders’
equity
of
$712.7
million,
(1)
or
$24.67
per
share
($22.45
from
Loan
Originations;
$2.22
from
CT
Legacy
Portfolio).
Net
income
of
$2.7
million,
or
$0.22
per
share
for
the
quarter.
•
Second quarter results driven by recoveries in our CT Legacy Portfolio as the majority of our loan
closings occurred in June.
________________________________________________
(1)
Total equity of $808.7 million includes noncontrolling interests of $89.0 million.

Blackstone Mortgage Trust
2
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)
Includes only our newly originated loan portfolio. For information on loans in our CT Legacy Portfolio, refer to our Form 10-Q, filed on July 30, 2013
(2)
Maximum maturity assumes all extension options are exercised.
Portfolio Diversification
(1)
(Dollars in Millions)
Land
Office
Multifamily
Hotel
Midwest
West
Southeast
Northeast
$64
$366
$190
$133
$424
$81
$200
$48
(Dollars in Thousands)
Portfolio Statistics
(1)
Number of loans
8
Principal balance
756,638
$          
Net book value
753,101
$          
Wtd. Avg. cash coupon
L + 4.44%
Wtd. Avg. all-in yield
L + 5.26%
Wtd. Avg. maximum maturity
(2)
4.0 yrs.

Blackstone Mortgage Trust
3
Loans Receivable Portfolio
________________________________________________
(1)
Includes only our newly originated loan portfolio. For information on loans in our CT Legacy Portfolio, refer to our Form 10-Q, filed on July 30, 2013.
(2)
All loans are floating rate loans indexed to LIBOR as of June 30, 2013. LIBOR was 0.19% as of June 30, 2013.
(3)
Maximum maturity date assumes all extension options are exercised.
(Dollars in Millions)
Loan Type
Principal
Balance
Book
Value
Cash
Coupon
(2)
All-In
Yield
(2)
Maximum
Maturity
(3)
Geographic
Location
Property
Type
Origination
LTV
Loan 1
Sr. mortgage
68.3
$       
68.1
$       
L + 3.95%
L + 4.05%
6/9/18
West
Office
71%
Loan 2
Sr. mortgage
300.0
       
298.5
       
L + 3.80%
L + 3.98%
6/15/18
West
Office
59%
Loan 3
Sr. mortgage
109.8
       
109.0
       
L + 5.25%
L + 8.41%
7/9/14
Northeast
Multifamily
80%
Loan 4
Sr. mortgage
58.0
          
57.4
          
L + 3.50%
L + 4.50%
7/9/18
West
Hotel
74%
Loan 5
Sr. mortgage
48.4
          
48.4
          
L + 5.00%
L + 5.68%
12/9/16
Midwest
Hotel
53%
Loan 6
Sr. mortgage
27.1
          
27.1
          
L + 3.87%
L + 3.87%
7/9/17
Northeast
Hotel
32%
Loan 7
Sr. mortgage
81.0
          
80.6
          
L + 3.85%
L + 4.03%
7/9/18
Southeast
Multifamily
75%
Loan 8
Sr. mortgage
64.0
          
64.0
          
L + 8.00%
L + 9.67%
2/9/15
Northeast
Land
69%
Total/Wtd. Avg.
756.6
$     
753.1
$     
L + 4.44%
L + 5.26%
4.0 years
65%
The
following
table
provides
details
of
our
loan
portfolio
(1)
as
of
June
30,
2013:

Blackstone Mortgage Trust
4
Credit Facilities
During the quarter, we closed four credit facilities, providing $1.0 billion of credit. We had outstanding
borrowings of $165.2 million, with immediately available additional borrowings of $304.6 million based
on collateral pledged as of quarter-end.
All of our borrowings are term-matched to their collateral assets, contain margin call provisions limited to
asset-specific credit events,
and
are
limited
recourse.
Our
weighted-average cash coupon was LIBOR plus
1.98%
(1)
on
our outstanding borrowings as of June 30, 2013.
________________________________________________
$1.0 billion
Total Credit Facilities
$165.2 million
Outstanding Borrowings
L + 1.98%
(1)
Wtd. Average Cash Coupon
(1)
Represents the cash coupon (excluding fees) paid on our outstanding borrowings of $165.2 million as of June 30, 2013. Our credit facilities incur interest at LIBOR
plus spreads ranging between 1.75% and 3.25% per annum, depending on the attributes of the collateral assets.
(2)
Available borrowings is based on assets pledged as collateral under credit facilities as of June 30, 2013. There were two loans with an aggregate principal balance of
$173.8 million as of June 30, 2013 that were not pledged under repurchase agreements, and therefore are available to be pledged as collateral in the future.
Collateral Assets
Repurchase Balances
Principal
Net Book
Maximum
Current
Available
(Dollars in Thousands)
Facility Size
Balance
Value
Borrowings
Borrowings
Borrowings
(2)
Lender 1
250,000
$     
126,300
$ 
125,557
$ 
101,040
$     
46,400
$       
54,640
$         
Lender 2
250,000
       
300,000
   
298,533
   
250,000
       
-
                 
250,000
         
Lender 3
250,000
       
156,438
   
156,039
   
118,839
       
118,839
       
-
                   
Lender 4
250,000
       
-
            
-
            
-
                 
-
                 
-
                   
Total
1,000,000
$ 
582,738
$ 
580,129
$ 
469,879
$     
165,239
$     
304,640
$       

Blackstone Mortgage Trust
5
Loan Capitalization
(1)
(Dollars in Millions)
Floating-Rate
Loans
Floating-Rate
Borrowings
•
$756.6 million of floating-rate loans, indexed
to one-month LIBOR.
•
$165.2 million of floating-rate liabilities, also
indexed to one-month LIBOR.
•
Return on $591.4 million of equity capital is
highly correlated to LIBOR.
–
All else equal, as of June 30, 2013, a
100bps increase in LIBOR would increase
our
net
income
by
$5.9
million
(2)
per
annum.
•
Our equity value is insulated from changes in
interest rates because both our loans and
borrowings are LIBOR-based.
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.
________________________________________________
(1)
Includes only our newly originated loan portfolio of $756.6 million, capitalized with $165.2 million of debt and $591.4 million of equity. Excludes the assets, liabilities, and equity
of our CT Legacy Portfolio.
(2)
Excludes the impact of LIBOR floors on certain of our loans receivable investments.
Equity Capital
$756.6
$165.2
$591.4

Blackstone Mortgage Trust
6
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 after underwriter discounts and
expenses.
•
On July 26, 2013, we filed an S-3 universal shelf registration with the SEC, which permits us to
periodically offer various debt and equity securities to the public. Future equity offerings remain
subject to the 180-day lock-up agreement we executed in conjunction with our May 2013 offering of
class A common stock.
•
Our book value per share includes $22.45 attributable to our loan origination business and $2.22
attributable to our CT Legacy Portfolio.
________________________________________________
(Dollars in Thousands, Except per Share Data)
Loan Origination
CT Legacy
Portfolio
Total
Stockholders' equity
648,693
$              
63,996
$              
712,689
$           
Shares
Class A common stock
28,801,651
          
28,801,651
        
28,801,651
        
Stock units
(1)
92,824
                   
92,824
                 
92,824
                 
Total
28,894,475
          
28,894,475
        
28,894,475
        
Book value per share
22.45
$                   
2.22
$                   
24.67
$                 
(1)
Stock units are granted to certain members of our board of directors in lieu of cash compensation for services and in lieu of dividends earned on previously
granted stock units. See Note 12 to our financial statements contained in the Form 10-Q, filed on July 30, 2013, for additional details.

Blackstone Mortgage Trust
7
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 the
remaining investments in our CT Legacy Portfolio.
•
$99.4 million of principal collections on legacy assets during the quarter.
•
$6.0 million of positive valuation and mark-to-market adjustments on the CT Legacy Partners and CT
CDO I loan portfolios during the quarter.
•
Net carried interest allocation from CTOPI increased $1.7 million during the quarter to $12.1 million.
Recognition
of
the
revenue
related
to
the
CTOPI
carried
interest
has
been
deferred,
resulting
in
a
net
book value of zero as of June 30, 2013.
•
Repaid $102.9 million of legacy debt and interest rate swap liabilities during the quarter.
Refer to Appendix for additional discussion of the CT Legacy Portfolio.
$2.22
CT Legacy Portfolio
Book Value per Share
$6.0 million
Positive Valuation Adjustments in 2Q
CT Legacy
Partners
CT CDO I
Other
Net Book Value
(Dollars in Millions)
$9.0
$4.9
$50.1

Appendix

Blackstone Mortgage Trust
9
Consolidated Balance Sheet
(Dollars in Thousands)
Jun. 30, 2013
Dec. 31, 2012
Assets
Cash and cash equivalents
59,746
$          
15,423
$          
Restricted cash
21,972
            
14,246
            
Loans receivable, net
830,101
          
141,500
          
Loans held-for-sale, net
3,800
              
-
                   
Loans receivable, at fair value
117,549
          
-
                   
Investment in CT Legacy Asset, at fair value
-
                   
132,000
          
Equity investments in unconsolidated subsidiaries
23,240
            
13,306
            
Accrued interest receivable, prepaid expenses, and other assets
30,697
            
5,868
              
Total assets
1,087,105
$    
322,343
$       
Liabilities & Equity
Accounts payable, accrued expenses and other liabilities
36,879
$          
21,209
$          
Secured notes
8,848
              
8,497
              
Repurchase obligations
165,239
          
-
                   
Securitized debt obligations
74,472
            
139,184
          
Total liabilities
285,438
          
168,890
          
Commitments and contingencies
-
                   
-
                   
Equity
Class A common stock, $0.01 par value
288
                  
293
                  
Additional paid-in capital
1,242,892
      
609,002
          
Accumulated deficit
(530,491)
        
(535,851)
        
Total Blackstone Mortgage Trust, Inc. stockholders' equity
712,689
          
73,444
            
Noncontrolling interests
88,978
            
80,009
            
Total equity
801,667
          
153,453
          
Total liabilities and equity
1,087,105
$    
322,343
$       

Blackstone Mortgage Trust
Consolidated Balance Sheet: Segment Allocation
June 30, 2013
(Dollars in Thousands)
Loan
Origination
CT Legacy
Portfolio
Total
Assets
Cash and cash equivalents
59,746
$          
-
$                 
59,746
$       
Restricted cash
-
                   
21,972
            
21,972
         
Loans receivable, net
753,101
          
77,000
            
830,101
       
Loans held-for-sale, net
-
                   
3,800
              
3,800
           
Loans receivable, at fair value
-
                   
117,549
          
117,549
       
Equity investments in unconsolidated subsidiaries
-
                   
23,240
            
23,240
         
Accrued interest receivable, prepaid expenses, and other assets
5,912
              
24,785
            
30,697
         
Total assets
818,759
$       
268,346
$       
1,087,105
$ 
Liabilities & Equity
Accounts payable, accrued expenses and other liabilities
4,827
$            
32,052
$          
36,879
$       
Secured notes
-
                   
8,848
              
8,848
           
Repurchase obligations
165,239
          
-
                   
165,239
       
Securitized debt obligations
-
                   
74,472
            
74,472
         
Total liabilities
170,066
          
115,372
          
285,438
      
Equity
Total Blackstone Mortgage Trust, Inc. stockholders' equity
648,693
          
63,996
            
712,689
       
Noncontrolling interests
-
                   
88,978
            
88,978
         
Total equity
648,693
          
152,974
          
801,667
      
Total liabilities and equity
818,759
$       
268,346
$       
1,087,105
$ 
10

Blackstone Mortgage Trust
Consolidated Statement of Operations
Three Months Ended June 30,
Six Months Ended June 30,
(Dollars in Thousands, Except Share and per Share Data)
2013
2012
2013
2012
Income from loans and other investments:
Interest and related income
6,017
$           
6,763
$           
7,473
$           
21,479
$         
Less: Interest and related expenses
1,306
             
5,413
             
2,083
             
28,754
           
Income (loss) from loans and other investments, net
4,711
             
1,350
             
5,390
             
(7,275)
            
Other expenses:
General and administrative
3,427
             
1,567
             
5,465
             
2,323
             
Total other expenses
3,427
             
1,567
             
5,465
             
2,323
             
Impairments, provisions, and valuation adjustments
6,000
             
3,704
             
5,800
             
7,506
             
Gain on extinguishment of debt
38
                    
-
                  
38
                    
-
                  
Gain on deconsolidation of subsidiaries
-
                  
-
                  
-
                  
146,380
         
Income from equity investments in unconsolidated subsidiaries
-
                  
205
                  
-
                  
901
                  
Income before income taxes
7,322
             
3,692
             
5,763
             
145,189
         
Income tax provision
554
                  
-
                  
593
                  
301
                  
Income from continuing operations
6,768
$           
3,692
$           
5,170
$           
144,888
$      
Loss from discontinued operations, net of tax
-
                  
(341)
               
-
                  
(914)
               
Net income
6,768
$           
3,351
$           
5,170
$           
143,974
$      
Net income attributable to noncontrolling interests
(4,020)
            
(1,068)
            
(5,537)
            
(75,137)
          
Net income (loss) attributable to Blackstone Mortgage Trust, Inc.
2,748
$           
2,283
$           
(367)
$             
68,837
$         
Per share information (Basic)
Income (loss) from continuing operations per share of common stock
0.22
$             
1.15
$             
(0.05)
$            
30.50
$           
Loss from discontinued operations per share of common stock
-
$               
(0.15)
$            
-
$               
(0.40)
$            
Net income (loss) per share of common stock
0.22
$             
1.00
$             
(0.05)
$            
30.10
$           
Weighted average shares of common stock outstanding
12,401,274
   
2,289,352
     
7,734,774
     
2,286,582
     
Per share information (Diluted)
Income (loss) from continuing operations per share of common stock
0.22
$             
1.08
$             
(0.05)
$            
28.67
$           
Loss from discontinued operations per share of common stock
-
$               
(0.15)
$            
-
$               
(0.40)
$            
Net income (loss) per share of common stock
0.22
$             
0.93
$             
(0.05)
$            
28.27
$           
Weighted average shares of common stock outstanding
12,401,274
   
2,442,686
     
7,734,774
     
2,435,339
     
11

Blackstone Mortgage Trust
Consolidated Statement of Operations: Segment Allocation
Three Months Ended June 30, 2013
Six Months Ended June 30, 2013
(Dollars in Thousands)
Loan
Origination
CT Legacy
Portfolio
Total
Loan
Origination
CT Legacy
Portfolio
Total
Income from loans and other investments:
Interest and related income
1,908
$       
4,109
$       
6,017
$       
1,908
$       
5,565
$       
7,473
$       
Less: Interest and related expenses
168
            
1,137
         
1,306
         
168
            
1,915
         
2,083
         
Income from loans and other investments, net
1,739
         
2,972
         
4,711
         
1,739
         
3,651
         
5,390
         
Other expenses:
General and administrative
2,153
         
1,274
         
3,427
         
2,883
         
2,582
         
5,465
         
Total other expenses
2,153
         
1,274
         
3,427
         
2,883
         
2,582
         
5,465
         
Valuation adjustments
-
             
6,000
         
6,000
         
-
             
5,800
         
5,800
         
Gain on extinguishment of debt
-
             
38
              
38
              
-
             
38
              
38
              
Income before income taxes
(413)
           
7,736
         
7,322
         
(1,144)
        
6,907
         
5,763
         
Income tax provision
2
                  
552
            
554
            
40
              
553
            
593
            
Net (loss) income
(415)
$         
7,183
$       
6,768
$       
(1,184)
$     
6,354
$       
5,170
$       
Net income attributable to noncontrolling interests
-
             
(4,020)
        
(4,020)
        
-
             
(5,537)
        
(5,537)
        
Net (loss) income attributable to Blackstone Mortgage Trust, Inc.
(415)
$         
3,164
$       
2,749
$       
(1,184)
$     
817
$          
(367)
$         
12

Blackstone Mortgage Trust
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 awards plan.
During the second quarter, CT Legacy Partners had $36.9 million of realizations. Proceeds were used
to repay the remaining $20.2 million outstanding under its repurchase facility and terminate its
remaining interest rate swap agreements.
•
Refer
to
our
Form
10-Q,
filed
on
July
30,
2013,
for
additional
details
of
CT
Legacy
Partners’
loans
receivable portfolio.
________________________________________________
(Dollars in Thousands)
June 30, 2013
Gross investment in CT Legacy Partners
Restricted cash
21,972
$                  
Loans receivable, at fair value
117,549
                  
Equity investments (three-hotel portfolio)
4,108
                      
Accrued interest receivable, other assets, and accounts payable, net
17,355
                    
Noncontrolling interests
(88,978)
                  
Total gross investment in CT Legacy Partners
72,006
$                 
Secured notes, including prepayment premium
(1)(2)
(11,059)
                  
Management incentive awards plan, fully vested
(1)(3)
(10,867)
                  
Net investment in CT Legacy Partners
50,080
$                 
13
(1)
See Note 8 to our financial statements contained in the Form 10-Q, filed on July 30, 2013, for additional details on the CT Legacy Partners structure.
(2)
Includes the full potential prepayment premium on secured notes. This liability is carried at its amortized basis of $8.8 million on our balance sheet as of
June 30, 2013.
(3)
Assumes full payment of the management incentive awards plan based on a hypothetical GAAP liquidation value of CT Legacy Partners as of June 30,
2013. As of June 30, 2013, our balance sheet includes $6.8 million in accounts payable and accrued expenses for the management incentive awards plan.

Blackstone Mortgage Trust
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 outstanding securitized debt obligations.
•
Refer to our Form 10-Q, filed on July 30, 2013, for additional details of CT CDO I’s loans receivable
portfolio.
(Dollars in Thousands)
June 30, 2013
Assets and liabilities of CT CDO I
Loans receivable, net
77,000
$                  
Loans held-for-sale, net
3,800
                      
Accrued interest receivable, prepaid expenses, and other assets
2,838
                      
Total assets
83,638
                    
Accounts payable, accrued expenses and other liabilities
155
                         
Securitized debt obligations
74,472
                    
Total liabilities
74,627
                    
Net investment in CT CDO I
9,011
$                    
14

Blackstone Mortgage Trust
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
30,
2013.
The carried interest in CTOPI entitles us to earn incentive compensation in an amount equal to 17.7% of
the fund’s profits, after a 9% preferred return and 100% return of capital to the CTOPI limited partners.
•
We own a net 55% of the carried interest of CTOPI’s general partner; the remaining 45% is payable
under incentive awards to our former employees.
As of June 30, 2013, Blackstone Mortgage Trust was allocated $13.5 million of carried interest from
CTOPI based on a hypothetical liquidation of the fund, reduced by tax-advance distributions received
for a net asset of $12.1 million. Other than tax-advance distributions, we have not received any cash
payments from CTOPI.
•
The net carried interest allocation of $12.1 million, increased $1.7 million from 1Q, and is based on
the fair value of CTOPI’s net assets.
•
Recognition
of
the
revenue
related
to
the
CTOPI
carried
interest
has
been
deferred,
resulting
in
no
contribution
to
book
value
from
the
$12.7
million
of
net
carried
interest.
15

Blackstone Mortgage Trust
Forward-Looking Statements
16
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
Blackstone Mortgage Trust’s current views with respect to, among other things, Blackstone Mortgage Trust’s
operations and financial performance. You can identify these forward-looking statements by the use of words such
as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,”
“predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other
comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly,
there are or will be important factors that could cause actual outcomes or results to differ materially from those
indicated in these statements. Blackstone Mortgage Trust believes these factors include but are not limited to
those described under the section entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year
ended December 31, 2012, as such factors may be updated from time to time in its periodic filings with the
Securities and Exchange Commission, which are accessible on the SEC’s website at www.sec.gov. These factors
should not be construed as exhaustive and should be read in conjunction with the other cautionary statements
that are included in this presentation and in the filings. Blackstone undertakes no obligation to publicly update or
review any forward-looking statement, whether as a result of new information, future developments or otherwise.