8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 29, 2014

Blackstone Mortgage Trust, Inc.

(Exact name of registrant as specified in its charter)

Maryland	1-14788	94-6181186
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

345 Park Avenue, 42nd Floor

New York, New York 10154

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (212) 655-0220

Not Applicable

(Former Name or Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On July 29, 2014, Blackstone Mortgage Trust, Inc. (the “Company”) issued a press release and detailed presentation announcing its financial results for the second quarter ended June 30, 2014. The press release and full detailed presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K report and are incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information contained under Item 2.02 in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and will not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in that filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press Release of Blackstone Mortgage Trust, Inc. dated July 29, 2014.
99.2	Presentation of Blackstone Mortgage Trust, Inc. dated July 29, 2014.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BLACKSTONE MORTGAGE TRUST, INC.
Date: July 29, 2014
	By:	/s/ Paul D. Quinlan
	Name:	Paul D. Quinlan
	Title:	Chief Financial Officer

EX-99.1

Exhibit 99.1

Blackstone Mortgage Trust Reports

Second Quarter 2014 Results

New York, July 29, 2014: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) (the “Company”) today reported its second quarter 2014 results. Net income for the second quarter was $33.5 million, or $0.70 per share.

Stephen D. Plavin, Chief Executive Officer, said, “BXMT continued to deliver compelling results for shareholders during the quarter as loan originations exceeded $1 billion and we realized $13 million of net promote revenue from our CT Legacy business, contributing to GAAP net income of $0.70 per share. This income, combined with our accretive April equity offering, drove an $0.88 increase in book value per share.”

Blackstone Mortgage Trust issued a full detailed presentation of its second quarter 2014 results, which can be viewed at www.bxmt.com.

Quarterly Investor Call Details

Blackstone Mortgage Trust will host a conference call on Wednesday, July 30, 2014 at 10:00 a.m. ET to discuss second quarter 2014 results. The conference call can be accessed by dialing +1 (877) 384-4189 (U.S. domestic) or +1 (857) 244-7411 (international), with the passcode 558 027 38# or by webcast at www.bxmt.com (listen only). For those unable to listen to the live broadcast, a recorded replay will be available on the Company’s website or by telephone beginning approximately three hours after the event. The replay call number is +1 (888) 286-8010 (U.S. domestic) or +1 (617) 801-6888 (international), with the passcode 612 242 01#.

About Blackstone Mortgage Trust

Blackstone Mortgage Trust, Inc. (NYSE:BXMT) is a real estate finance company that primarily originates senior loans collateralized by properties in the United States and Europe. The Company is externally managed by BXMT Advisors L.L.C., a subsidiary of Blackstone, and is a real estate investment trust traded on the NYSE under the symbol “BXMT.” Blackstone Mortgage Trust, Inc. is headquartered in New York City. Further information is available at www.bxmt.com.

About Blackstone

Blackstone (NYSE:BX) is one of the world’s leading investment and advisory firms. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies it invests in, the companies it advises and the broader global economy. Blackstone does this through the commitment of its extraordinary people and flexible capital. Blackstone’s asset management businesses include investment vehicles focused on private equity, real estate, hedge fund solutions, non-investment grade credit, secondary funds, and multi asset class exposures falling outside of other funds’ mandates. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

Blackstone Mortgage Trust, Inc.

345 Park Avenue

New York, New York 10154

T 212 655 0220

Forward-Looking Statements and Other Matters

This release 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,” “indicator,” “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, 2013, 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 release and in the filings. Blackstone Mortgage Trust assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances.

Investor and Media Relations Contact

Weston Tucker

Blackstone

+1 (888) 756-8443

tucker@blackstone.com

2

EX-99.2

Blackstone Mortgage Trust, Inc.

July 29, 2014

Second Quarter 2014 Results

Exhibit 99.2

1

Blackstone Mortgage Trust

Second Quarter 2014 Highlights

Core

Earnings

of

$0.43

per

share

for

the

quarter

driven

by

a

27%

increase

in

net

interest

income

of

the Loan Origination portfolio over the first quarter.

GAAP

net

income

of

$0.70

per

share

driven

by

$13

million

of

net

income

related

to

the

realization

of

BXMT’s first promote distribution from its legacy private equity fund, CTOPI.

BXMT

closed

11

floating-rate

senior

mortgage

loans

during

the

quarter

representing

total

commitments

of

$1.1

billion,

including

$387

million

of

loans

in

the

U.K.,

and

its

first

loan

in

Continental Europe.

Second

quarter

net

loan

fundings

of

$828

million,

bringing

the

total

Loan

Origination

portfolio

to

$3.5

billion with a weighted average LTV of

63%.

Addition

of

$1.1

billion

of

financing

capacity

during

the

quarter,

bringing

total

capacity

to

$3.8

billion,

with $2.2 billion outstanding.

Book

value

per

share

increased

by

$0.88

to

$25.51,

resulting

from

retained

earnings

generated

by

the CT

Legacy portfolio and an accretive April common stock issuance.

Second quarter dividend of $0.48 per share paid on July 15, 2014.

Information included in this presentation is as of or for the period ended June 30, 2014, unless otherwise indicated. See Appendix for a definition of Core Earnings and a 

reconciliation to GAAP net income, as well as certain per share calculations that are referenced throughout this presentation.

Blackstone Mortgage Trust

2

Second Quarter 2014 Balance Sheet, Results, and Core Earnings

($ in Millions)

CT Legacy portfolio

$15.5

Secured debt

obligations

($15.5)

Equity and other

(a)

($2.4)

($5.5)

Loan Origination

portfolio

$41.4

$33.5

($15.5)

$0.2

(b)

$2.4

$-

$-

Interest income

Interest expense

Non-cash comp.

G&A expenses

Net results

$41.4

$-

($15.3)

$-

($5.5)

Core

Earnings

Net

Income

$20.5

+

+

+

+

Convertible notes,

net

Balance Sheet

$3,488

$36

$2,241

$161

$1,122

Includes stockholders’ equity of $1.2 billion, less the net of (i) cash and cash equivalents of $120.5 million, (ii) accrued interest receivable, prepaid

expenses, and other assets of $29.8 million, and (iii) accounts payable, accrued expenses, and other liabilities of $34.0 million.

Adjustment represents non-cash amortization of the deemed issue discount on convertible notes resulting from the conversion option value accounting under

GAAP.

(a)

(b)

Blackstone Mortgage Trust

3

Loan Origination Portfolio

During the quarter, BXMT closed 11 new loans with total commitments of $1.1 billion.

BXMT funded $1.0

billion of loan commitments, and received $173.0 million of full

or partial repayments

from five loans.

BXMT’s

portfolio

includes

$546.4

million

of

U.K./EU

loans,

16%

of

the

total.

Loan Origination Portfolio Statistics

($ in Millions)

Loan Origination Portfolio

(Net Book Value, $ in Millions)

Number of loans

48

Principal balance

3,514

$           

Net book value

3,488

$           

Wtd. avg. LTV

63%

Wtd. avg. cash coupon

(a)

L + 4.46%

Wtd. avg. all-in yield

(a)

L + 5.02%

Wtd. avg. gross return on investment

(a)(b)

L + 12.7%

Wtd. avg. maximum maturity

(c)

4.1 yrs.

$753

$1,286

$2,000

$2,663

$3,488

2Q'13

3Q'13

4Q'13

1Q'14

2Q'14

(a)

Includes 83% of loans indexed to one-month LIBOR and 17% indexed to three-month LIBOR; and 18% of loans that earn interest based on LIBOR floors.

(b)

Weighted average gross return on investment is based on each asset’s all-in yield, assuming current pay rates with no dispositions, early payments, or defaults,

and all-in cost of secured debt, assuming full leverage at the asset level based on the maximum available leverage in place or in negotiation with respect to each

investment, notwithstanding the amount actually borrowed in a given period. Gross return on investment excludes costs related to BXMT’s convertible notes,

management fees, and corporate-level expenses.

(c)

Maximum maturity assumes all extension options are exercised, however BXMT’s loans may be repaid prior to such date.

Blackstone Mortgage Trust

4

Portfolio Diversification

BXMT’s $3.5 billion floating-rate portfolio is diversified by collateral property type and geographic

location, and is comprised of senior mortgages and similar credit quality loans.

$316,934,052

$416,559,099

Collateral Diversification

(Net Book Value, % of Total)

Floating-rate Loans

(Net Book Value, % of Total)

100.0%

Office

Multifamily

Hotel

Condo

Senior Loans

(Net Book Value, % of Total)

94.2%

Geographic Diversification

(Net Book Value, $ in Millions)

AZ

CA

18.9%

CO

FL

5.0%

GA

3.9%

IL

MI

0.2%

NV

0.3%

NY

31.6%

OH

0.2%

OR

0.9%

2.0%

2.6%

TX

3.8%

VA

1.4%

2.5%

HI

1.4%

DC

2.3%

RI

1.3%

1.1%

Other

UK

14.6%

NL

WA

6.0%

Blackstone Mortgage Trust

5

Credit Facilities and Liquidity

During the quarter, BXMT closed a $500.0 million revolving credit facility, bringing total credit

facility capacity to $2.9 billion, including $686.5 million of GBP and EUR multi-currency facilities.

Total

liquidity

of

$352.4

million

(a)

,

providing

for

$1.3

billion

(a)

of

potential

loan

originations

and

fundings.

$232.0 million

Available Borrowings

L + 2.19%

Wtd. Avg. All-in Cost of Credit Facilities

$2.9 billion

Total Credit Facility Capacity

Maximum

Collateral Asset

Debt Obligations

(b)

($ in Thousands)

Facility Size

Principal Balance

Potential

Outstanding

Available

Lender 1

500,000

$        

517,280

$               

406,653

$        

387,653

$        

19,000

$          

Lender 2

500,000

611,459

461,556

351,245

110,311

Lender 3

(c)

510,697

467,722

354,776

293,600

61,176

Lender 4

500,000

301,083

231,600

190,125

41,475

Lender 5

(c)

425,875

169,804

135,765

135,765

-

Lender 6

500,000

214,524

165,369

165,369

-

Total

2,936,572

$     

2,281,872

$           

1,755,719

$     

1,523,757

$     

231,962

$        

(a)

Total liquidity includes $120.5 million of cash and $232.0 million of available borrowings. Potential loan originations assumes 3.5x asset-level leverage

on total liquidity, net of $63.3 million of minimum liquidity requirements under applicable debt covenants.

(b)

Potential borrowings represent the total amount that could be drawn under each facility based on collateral already approved and pledged. When undrawn,

these amounts do not incur interest, but are immediately available to BXMT at its sole discretion under the terms of each revolving credit facility.

(c)

The maximum facility size for Lender 3 is composed of a $250.0 million facility and a £153.0 million ($260.7 million) facility. The maximum facility size for

Lender 5 represents a £250.0 million ($425.9 million) facility that may be drawn in GBP or EUR.

Blackstone Mortgage Trust

6

Asset-Specific Financings

(a)

$912.9

Total Asset-Specific Financing Capacity

($ in Millions)

$342.5

•

Non-cross collateralized, with limited recourse and margin call provisions

•

Three agreements with $255.9 million outstanding and $86.6 million of

future funding commitments

•

$324.4 million of collateral assets

Asset-Specific

Repurchase

Agreements

$461.1

•

Senior loan participations sold by BXMT

•

Three participation sales totaling $461.1 million

•

$632.5 million of whole loans financed

Participations

Sold

$109.3

•

Transaction structures resulting in off-balance sheet senior interests

•

A $109.3 million senior interest sold in a $142.9 million property

financing

•

$33.6 million mezzanine loan remains in BXMT’s portfolio

Off-Balance

Sheet Senior

Interests

(a)

BXMT’s balance sheet includes asset-specific financings of $255.9 million classified as repurchase agreements and $461.1 million classified as

participations sold. See pages 11-12, Consolidated and Segment Balance Sheets.

During the quarter, BXMT closed three asset-specific financings totaling $565.5 million of financing

capacity, bringing total asset-specific capacity to $912.9 million and total financing capacity to 

$3.8 billion including credit facilities.

7

$3.5

billion

of

floating-rate

loans,

indexed

to

LIBOR.

$2.2

billion

of

floating-rate

liabilities,

also

indexed to LIBOR.

Return

on

net

investment

of

$1.3

billion

increases with increasing LIBOR.

All

else

equal,

a

100bp

increase

in

LIBOR

would

increase

net

interest

income

by

$11.8

million

(b)

per year, or $0.24 per share.

Floating-Rate Business Model

Because of BXMT’s LIBOR-based lending and funding business model, its returns increase with rising

short-term interest rates.

Loan Capitalization

(a)

(Principal Balance, $ in Millions)

Floating-rate

loans

Floating-rate

borrowings

Floating-rate

Net investment

•

Blackstone Mortgage Trust

(a)

Includes only the Loan Origination portfolio with an aggregate principal balance of $3.5 billion, capitalized with $2.2 billion of secured borrowings, and 

with a $1.3 billion net investment. Excludes the assets, liabilities, and equity of the CT Legacy portfolio.

(b)

Includes the impact of LIBOR floors for loan receivable investments.

$1,273

$2,241

$3,514

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

Legacy

Partners

reported

a

$7.2

million

gain

on

investments

carried

at

fair

value,

reflecting

improved

recovery expectations of legacy assets.

In

July,

CT

Legacy

Partners

received

a

$19.6

million

loan

repayment,

which

resulted

in

a

net

distribution

of $6.9

million to BXMT.

2Q’14 Book Value

($ per share)

CTOPI Net Promote

(a)

($ in Millions)

CT Legacy Portfolio

Component Book Value

($ per share)

Total

$0.75

CT CDO I

and other

$0.21

CT Legacy

Partners

$0.54

CTOPI

$ -

$0.75

$24.76

Loan

Origination

CT Legacy

Total

Book Value

$25.51

$14.9

$18.0

$18.5

7.7

$13.1

3Q'13

4Q'13

1Q'14

2Q'14

Unrealized

Realized

Blackstone Mortgage Trust

8

$

(a)

Represents the cumulative net realized and unrealized promote allocable to BXMT, after amounts payable under legacy compensation plans.

Appendix

Blackstone Mortgage Trust

10

Loan Origination Segment Portfolio Details

The following table provides details of BXMT’s Loan Origination Segment portfolio:

(a)

Includes 83% of loans indexed to one-month LIBOR and 17% indexed to three-month LIBOR; and 18% of loans that earn interest based on LIBOR floors.

(b)

Maximum maturity date assumes all extension options are exercised, however BXMT’s loans may be repaid prior to such date.

(c)

Includes (i) 32 senior mortgage loans with an aggregate principal balance of $1.6 billion, and (ii) one mezzanine loan with a principal balance of $33.6 million where

BXMT originated the entire loan and sold a senior interest to finance its overall investment.

($ in Millions)

Origination Date

Loan Type

Principal

Balance

Book

Value

Cash

Coupon

(a)

All-In

Yield

(a)

Maximum

Maturity

(b)

Geographic

Location

Property

Type

Origination

LTV

Loan 1

5/22/14

Senior loan

338.0

$ 

335.7

$       

L + 4.00%

L + 4.34%

5/22/19

UK

Hotel

57%

Loan 2

11/21/13

Senior loan

181.0

179.5

L + 4.50%

L + 4.86%

11/9/18

NY

Multifamily

68%

Loan 3

10/23/13

Sub. mortgage part.

173.8

169.0

L + 5.66%

L + 9.25%

4/9/15

WA

Office

67%

Loan 4

12/17/13

Senior loan

140.0

139.0

L + 4.75%

L + 5.27%

1/9/19

NY

Office

70%

Loan 5

1/30/14

Senior loan

125.0

124.4

L + 4.30%

L + 4.63%

12/1/17

NY

Hotel

38%

Loan 6

6/20/14

Senior loan

114.6

113.2

L + 5.75%

L + 6.39%

6/20/16

CA

Hotel

43%

Loan 7

6/7/13

Senior loan

105.9

105.6

L + 3.80%

L + 3.97%

6/15/18

CA

Office

43%

Loan 8

2/25/14

Senior loan

101.0

99.6

L + 4.40%

L + 4.81%

3/9/19

Diversified

Hotel

49%

Loan 9

2/20/14

Senior loan

95.7

95.2

L + 4.40%

L + 4.58%

3/9/19

NY

Office

69%

Loan 10

10/30/13

Senior loan

95.2

94.7

L + 4.38%

L + 4.61%

11/9/18

CA

Hotel

72%

Loan 11

1/7/14

Senior loan

91.0

89.6

L + 4.75%

L + 5.43%

1/7/19

Diversified

Other

65%

Loan 12

9/30/13

Senior loan

89.5

89.4

L + 3.70%

L + 3.83%

9/30/20

NY

Multifamily

62%

Loan 13

6/26/14

Senior loan

87.0

86.1

L + 4.30%

L + 4.83%

7/15/19

NY

Multifamily

79%

Loan 14

8/8/13

Senior loan

85.5

85.1

L + 4.25%

L + 4.62%

8/10/18

Diversified

Diversified

59%

Loan 15

3/4/14

Senior loan

83.3

83.8

L + 4.00%

L + 4.63%

3/4/18

UK

Office

50%

Loans 16-48

Various

Various

(c)

1,607.5

1,598.3

L + 4.45%

L + 4.87%

Various

Various

Various

68%

Total/Wtd. avg.

3,514.0

$    

3,488.2

$    

L + 4.46%

L + 5.02%

4.1 years

63%

Blackstone Mortgage Trust

11

Consolidated Balance Sheet

($ in Thousands, Except per Share Data)

June 30, 2014

December 31, 2013

Assets

Cash and cash equivalents

120,456

$                 

52,342

$                   

Restricted cash

11,392

10,096

Loans receivable, net

3,488,179

2,047,223

Equity investments in unconsolidated subsidiaries

14,038

22,480

Accrued interest receivable, prepaid expenses, and other assets

120,704

80,639

Total assets

3,754,769

$            

2,212,780

$            

Liabilities and equity

Accounts payable, accrued expenses, and other liabilities

71,345

$                   

97,153

$                   

Repurchase obligations

1,779,650

1,109,353

Convertible notes, net

160,671

159,524

Participations sold

461,078

90,000

Total liabilities

2,472,744

1,456,030

Equity

Class A common stock, $0.01 par value

479

$                         

288

$                         

Restricted class A common stock, $0.01 par value

5

7

Additional paid-in capital

1,767,954

1,252,986

Accumulated other comprehensive income

2,728

798

Accumulated deficit

(531,858)

(536,170)

Total

Blackstone

Mortgage

Trust,

Inc.

stockholders’

equity

1,239,308

717,909

Non-controlling interests

42,717

38,841

Total equity

1,282,025

756,750

Total liabilities and equity

3,754,769

$            

2,212,780

$            

Consolidated Balance Sheet: Segment Allocation

Blackstone Mortgage Trust

12

Blackstone Mortgage Trust

13

Consolidated Statement of Operations

Three Months Ended June 30,

Six Months Ended June 30,

($ in Thousands, Except per Share Data)

2014

2013

2014

2013

Income from loans and other investments

Interest and related income

42,466

$           

6,017

$             

76,122

$           

7,473

$             

Less: Interest and related expenses

15,720

1,306

27,794

2,083

Income from loans and other investments, net

26,746

4,711

48,328

5,390

Other expenses

Management fees

4,410

920

7,807

983

General and administrative

15,356

2,507

18,554

4,482

Total other expenses

19,766

3,427

26,361

5,465

Impairments, provisions, and valuation adjustments

7,163

6,000

5,824

5,800

Income from equity investments in unconsolidated subsidiaries

24,294

-

24,294

-

Gain on extinguishment of debt

-

38

-

38

Income before income taxes

38,437

7,322

52,085

5,763

Income tax (benefit) provision

(2)

554

530

593

Net income

38,439

$           

6,768

$             

51,555

$           

5,170

$             

Net income attributable to non-controlling interests

(4,973)

(4,020)

(5,024)

(5,537)

Net income (loss) attributable to Blackstone Mortgage Trust, Inc.

33,466

$           

2,748

$             

46,531

$           

(367)

$               

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

47,977,813

12,401,274

43,000,242

7,734,774

Net income (loss) per share of common stock

0.70

$               

0.22

$               

1.08

$               

(0.05)

$              

Blackstone Mortgage Trust

14

Consolidated Statement of Operations: Segment Allocation

Three Months Ended June 30, 2014

Six Months Ended June 30, 2014

($ in Thousands)

Loan

Origination

CT Legacy

Portfolio

Total

Loan

Origination

CT Legacy

Portfolio

Total

Income from loans and other investments

Interest and related income

41,372

$    

1,094

$       

42,466

$    

73,408

$    

2,714

$       

76,122

$    

Less: Interest and related expenses

15,503

217

15,720

27,130

664

27,794

Income from loans and other investments, net

25,869

877

26,746

46,278

2,050

48,328

Other expenses

Management fees

4,410

-

4,410

7,807

-

7,807

General and administrative expenses

3,501

11,855

15,356

6,346

12,208

18,554

Total other expenses

7,911

11,855

19,766

14,153

12,208

26,361

Impairments, provisions, and valuation adjustments

-

7,163

7,163

-

5,824

5,824

Income from equity investments in unconsolidated subsidiaries

-

24,294

24,294

-

24,294

24,294

Income before income taxes

17,958

20,479

38,437

32,125

19,960

52,085

Income tax (benefit) provision

-

(2)

(2)

131

399

530

Net income

17,958

$    

20,481

$    

38,439

$    

31,994

$    

19,561

$    

51,555

$    

Net income attributable to non-controlling interests

-

(4,973)

(4,973)

-

(5,024)

(5,024)

Net income attributable to Blackstone Mortgage Trust, Inc.

17,958

$    

15,508

$    

33,466

$    

31,994

$    

14,537

$    

46,531

$    

Blackstone Mortgage Trust

15

Consolidated Statement of Operations: Loan Origination Segment

Three Months Ended

($ in Thousands)

June 30, 2014

March 31, 2014

$ Change

% Change

Income from loans and other investments

Interest and related income

41,372

$              

32,035

$              

9,337

$        

29.1%

Less: Interest and related expenses

15,503

11,626

3,877

33.3%

Income from loans and other investments, net

25,869

20,409

5,460

26.8%

Other expenses

Management fees

4,410

3,397

1,013

29.8%

General and administrative expenses

3,501

2,846

655

23.0%

Total other expenses

7,911

6,243

1,668

26.7%

Income before income taxes

17,958

14,166

3,792

26.8%

Income tax provision

-

131

(131)

N/M

Net income

17,958

$              

14,035

$              

3,923

$        

28.0%

Blackstone Mortgage Trust

16

Per Share Calculations

(in Thousands, Except per Share Data)

Three Months Ended June 30, 2014

Three Months Ended March 31, 2014

Loan

Origination

CT Legacy

Portfolio

Total

Loan

Origination

CT Legacy

Portfolio

Total

Net income

17,958

$     

15,508

$     

33,466

$     

14,035

$     

(970)

$          

13,065

$     

Weighted-average shares

  outstanding, basic and diluted

47,978

47,978

47,978

37,967

37,967

37,967

Earnings per share, basic and diluted

0.38

$          

0.32

$          

0.70

$          

0.37

$          

(0.03)

$        

0.34

$          

Three Months Ended

June 30, 2014

March 31, 2014

Net income

33,466

$            

13,065

$            

CT Legacy Portfolio segment net (income) loss

(15,508)

970

Amortization of discount on convertible notes

397

391

Unrealized (gain) loss on foreign currency remeasurement

(235)

32

Non-cash compensation expense

2,382

1,834

Core Earnings

20,502

$            

16,292

$            

Weighted-average shares outstanding, basic and diluted

47,978

37,967

Core Earnings per share, basic and diluted

0.43

$                  

0.43

$                  

June 30, 2014

March 31, 2014

Loan

Origination

CT Legacy

Portfolio

Total

Loan

Origination

CT Legacy

Portfolio

Total

Stockholders’

equity

1,203,003

$

36,305

$    

1,239,308

$

946,352

$  

23,731

$    

970,083

$  

Shares

Class A common stock

47,935

47,935

47,935

38,655

38,655

38,655

Restricted class A common stock

544

544

544

622

622

622

Stock units

108

108

108

106

106

106

48,587

48,587

48,587

39,383

39,383

39,383

Book value per share

24.76

$       

0.75

$         

25.51

$       

24.03

$       

0.60

$         

24.63

$       

Core Earnings

Reconciliation

Book Value per

Share:

Segment Allocation

Earnings per Share:

Segment Allocation

Blackstone Mortgage Trust

17

Definitions

Blackstone Mortgage Trust, Inc. (“BXMT”) discloses Core Earnings, a financial measure that is calculated and

presented on

the

basis

of

methodologies

other

than

in

accordance

with

generally

accepted

accounting

principles

in

the

United States of America (“GAAP”) in this presentation.

Core Earnings is an adjusted measure that helps BXMT evaluate its performance excluding the effects of certain

transactions and GAAP adjustments that it believes are not necessarily indicative of its current loan origination

portfolio and operations. BXMT also uses Core Earnings to calculate the incentive and base management fees due to

its manager under its management agreement and, as such, BXMT believes that the disclosure of Core Earnings is

useful to investors.

Core Earnings is defined as GAAP net income (loss), including realized losses not otherwise included in GAAP net

income (loss), and excluding (i) net income (loss) attributable to the CT Legacy Portfolio segment, (ii) non-cash equity

compensation expense, (iii) incentive management fees, (iv) depreciation and amortization, and (v) unrealized gains

(losses)

or

similar

non-cash

items.

Core

Earnings

may

also

be

adjusted

from

time

to

time

to

exclude

one-time

events

pursuant to changes in GAAP and certain other non-cash charges as determined by BXMT’s manager, subject to

approval by a majority of its independent directors.

Core Earnings does not represent net income or cash generated from operating activities and should not be

considered as an alternative to GAAP net income, or an indication of cash flow from GAAP operating activities, a

measure of BXMT’s liquidity, or an indication of funds available for its cash needs. In addition, BXMT’s methodology

for calculating Core Earnings may differ from the methodologies employed by other companies to calculate the same

or similar supplemental performance measures, and accordingly, its reported Core Earnings may not be comparable

to the Core Earnings reported by other companies.

Blackstone Mortgage Trust

18

Forward-Looking Statements

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,” “indicator,” “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, 2013, 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 Mortgage Trust assumes no obligation to

update or supplement forward-looking statements that become untrue because of subsequent events or

circumstances.