Segment Reporting

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

14. 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 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.

There were no transactions between our operating segments during the six months ended June 30, 2014 and 2013. For the three and six months ended June 30, 2014, 6% and 9% of our revenues were generated from international sources, respectively. Substantially all of our revenues for the three and six months ended June 30, 2013 were generated from domestic sources.

The following table presents our consolidated statement of operations for each segment for the three months ended June 30, 2014 and 2013 ($ in thousands):

	Three Months Ended June 30, 2014
	Loan			CT Legacy
	Origination			Portfolio			Total
Income from loans and other investments
Interest and related income	$	41,372		$	1,094		$	42,466
Less: Interest and related expenses		15,503			217			15,720
Income from loans and other investments, net		25,869			877			26,746
Other expenses
Management fees		4,410			—			4,410
General and administrative expenses		3,501			11,855			15,356
Total other expenses		7,911			11,855			19,766
Gain on investments at fair value		—			7,163			7,163
Income from equity investments in unconsolidated subsidiaries		—			24,294			24,294
Income before income taxes		17,958			20,479			38,437
Income tax benefit		—			(2	)		(2	)
Net income		17,958			20,481			38,439
Net income attributable to non-controlling interests		—			(4,973	)		(4,973	)
Net income attributable to Blackstone Mortgage Trust, Inc.	$	17,958		$	15,508		$	33,466
	Three Months Ended June 30, 2013
	Loan			CT Legacy
	Origination			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
Management fees		920			—			920
General and administrative expenses		1,233			1,274			2,507
Total other expenses		2,153			1,274			3,427
Valuation allowance on loans held-for-sale		—			2,000			2,000
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

The following table presents our consolidated statement of operations for each segment for the six months ended June 30, 2014 and 2013 ($ in thousands):

	Six Months Ended June 30, 2014
	Loan			CT Legacy
	Origination			Portfolio			Total
Income from loans and other investments
Interest and related income	$	73,408		$	2,714		$	76,122
Less: Interest and related expenses		27,130			664			27,794
Income from loans and other investments, net		46,278			2,050			48,328
Other expenses
Management fees		7,807			—			7,807
General and administrative expenses		6,346			12,208			18,554
Total other expenses		14,153			12,208			26,361
Gain on investments at fair value		—			5,824			5,824
Income from equity investments in unconsolidated subsidiaries		—			24,294			24,294
Income before income taxes		32,125			19,960			52,085
Income tax provision		131			399			530
Net income		31,994			19,561			51,555
Net income attributable to non-controlling interests		—			(5,024	)		(5,024	)
Net income attributable to Blackstone Mortgage Trust, Inc.	$	31,994		$	14,537		$	46,531
	Six Months Ended June 30, 2013
	Loan			CT 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
Management fees		983			—			983
General and administrative expenses		1,900			2,582			4,482
Total other expenses		2,883			2,582			5,465
Valuation allowance on loans held-for-sale		—			1,800			1,800
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	)

The following table presents our consolidated balance sheet for each segment as of June 30, 2014 and December 31, 2013 ($ in thousands):

	June 30, 2014
	Loan		CT Legacy
	Origination		Portfolio		Total
Assets
Cash and cash equivalents	$	120,456	$	—	$	120,456
Restricted cash		—		11,392		11,392
Loans receivable, net		3,488,179		—		3,488,179
Equity investments in unconsolidated subsidiaries		—		14,038		14,038
Accrued interest receivable, prepaid expenses, and other assets		29,803		90,901		120,704
Total assets	$	3,638,438	$	116,331	$	3,754,769
Liabilities and Equity
Accounts payable, accrued expenses, and other liabilities	$	34,036	$	37,309	$	71,345
Repurchase obligations		1,779,650		—		1,779,650
Convertible notes, net		160,671		—		160,671
Participations sold		461,078		—		461,078
Total liabilities		2,435,435		37,309		2,472,744
Equity
Total Blackstone Mortgage Trust, Inc. stockholders’ equity		1,203,003		36,305		1,239,308
Non-controlling interests		—		42,717		42,717
Total equity		1,203,003		79,022		1,282,025
Total liabilities and equity	$	3,638,438	$	116,331	$	3,754,769
	December 31, 2013
	Loan		CT Legacy
	Origination		Portfolio		Total
Assets
Cash and cash equivalents	$	52,342	$	—	$	52,342
Restricted cash		—		10,096		10,096
Loans receivable, net		2,000,223		47,000		2,047,223
Equity investments in unconsolidated subsidiaries		—		22,480		22,480
Accrued interest receivable, prepaid expenses, and other assets		21,020		59,619		80,639
Total assets	$	2,073,585	$	139,195	$	2,212,780
Liabilities and Equity
Accounts payable, accrued expenses, and other liabilities	$	21,104	$	76,049	$	97,153
Repurchase obligations		1,109,353		—		1,109,353
Convertible notes, net		159,524		—		159,524
Participations sold		90,000		—		90,000
Total liabilities		1,379,981		76,049		1,456,030
Equity
Total Blackstone Mortgage Trust, Inc. stockholders’ equity		693,604		24,305		717,909
Non-controlling interests		—		38,841		38,841
Total equity		693,604		63,146		756,750
Total liabilities and equity	$	2,073,585	$	139,195	$	2,212,780