Segment Reporting

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting

Note 19. Segment Reporting

We operate our real estate finance business through a Loan Origination segment and a CT Legacy Portfolio segment. The Loan Origination segment includes our activities associated with the origination and acquisition of mortgage loans, the capitalization of our loan portfolio, and the costs associated with operating our business generally. The CT Legacy Portfolio segment includes our activities specifically related to CT Legacy Partners, CT CDO I, and our equity investment in CTOPI. Our Manager identifies, makes operating decisions, and assesses the performance of each of our business segments based on financial and operating data and metrics generated from our internal information systems.

Our Loan Origination business commenced during 2013. Accordingly, no comparable segment data exists for 2012 or any other prior period, and we have therefore not retrospectively restated our previously reported information.

The following table presents our results of operations for each segment for the three months ended June 30, 2013 ($ in thousands):

	Loan Origination			CT Legacy Portfolio			Total
Income from loans and other investments:
Interest and related income	$	1,908		$	4,109		$	6,017
Less: Interest and related expenses		168			1,138			1,306
Income from loans and other investments, net		1,740			2,971			4,711
Other expenses:
General and administrative		2,153			1,274			3,427
Total other expenses		2,153			1,274			3,427
Valuation allowance on loans held-for-sale		—			2,000			2,000
Unrealized gain on investments at fair value		—			4,000			4,000
Gain on extinguishment of debt		—			38			38
(Loss) income before income taxes		(413	)		7,735			7,322
Income tax provision		2			552			554
Net (loss) income	($	415	)	$	7,183		$	6,768
Net income attributable to non-controlling interests		—			(4,020	)		(4,020	)
Net (loss) income attributable to Blackstone Mortgage Trust, Inc.	($	415	)	$	3,163		$	2,748

All consolidated revenues for the three months ended June 30, 2013 were generated from external domestic sources. There were no transactions between our operating segments during the six months ended June 30, 2013.

The following table presents the key components of our results of operations for each segment for the six months ended June 30, 2013 ($ in thousands):

	Loan			Legacy
	Origination			Portfolio			Total
Income from loans and other investments:
Interest and related income	$	1,908		$	5,565		$	7,473
Less: Interest and related expenses		168			1,915			2,083
Income from loans and other investments, net		1,740			3,650			5,390
Other expenses:
General and administrative		2,883			2,582			5,465
Total other expenses		2,883			2,582			5,465
Valuation allowance on loans held-for-sale		—			1,800			1,800
Unrealized gain on investments at fair value		—			4,000			4,000
Gain on extinguishment of debt		—			38			38
(Loss) income before income taxes		(1,143	)		6,906			5,763
Income tax provision		40			553			593
Net (loss) income	($	1,183	)	$	6,353		$	5,170
Net income attributable to non-controlling interests		—			(5,537	)		(5,537	)
Net (loss) income attributable to Blackstone Mortgage Trust, Inc.	($	1,183	)	$	816		($	367	)

All consolidated revenues for the six months ended June 30, 2013 were generated from external domestic sources. There were no transactions between our operating segments during the six months ended June 30, 2013.

The following table presents our consolidated statement of financial condition for each segment as of June 30, 2013 ($ in thousands):

	Loan Origination		Legacy Portfolio		Total
Assets
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
Liabilities:
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
Non-controlling interests		—		88,978		88,978
Total equity		648,693		152,974		801,667
Total liabilities and equity	$	818,759	$	268,346	$	1,087,105