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 26, 2016

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 26, 2016, Blackstone Mortgage Trust, Inc. (the “Company”) issued a press release and detailed presentation announcing its financial results for the second quarter ended June 30, 2016. 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 26, 2016.
99.2	Presentation of Blackstone Mortgage Trust, Inc. dated July 26, 2016.

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 26, 2016
	By:	/s/ Anthony F. Marone, Jr.
	Name:	Anthony F. Marone, Jr.
	Title:	Chief Financial Officer

EX-99.1

Exhibit 99.1

Blackstone Mortgage Trust Reports

Second Quarter 2016 Results

New York, July 26, 2016: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its second quarter 2016 results.

Stephen D. Plavin, Chief Executive Officer, said, “BXMT had another strong quarter, driven by $859 million of originations and $1.8 billion of incremental financing capacity for new loans. Our low volatility, senior mortgage business is thriving in the current market environment.”

Blackstone Mortgage Trust issued a full detailed presentation of its second quarter 2016 results, which can be viewed at www.bxmt.com.

Quarterly Investor Call Details

Blackstone Mortgage Trust will host a conference call on Wednesday, July 27, 2016 at 10:00 a.m. ET to discuss second quarter 2016 results. The conference call can be accessed by dialing +1 (888) 268-4178 (U.S. domestic) or +1 (617) 597-5494 (international), with the passcode 245-054-61# 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 two 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 467-577-32#.

About Blackstone Mortgage Trust

Blackstone Mortgage Trust, Inc. (NYSE:BXMT) is a real estate finance company that originates and acquires senior loans collateralized by properties in North America and Europe. BXMT is a real estate investment trust headquartered in New York City and is externally managed by BXMT Advisors L.L.C., a subsidiary of Blackstone. Further information is available at www.bxmt.com.

About Blackstone

Blackstone (NYSE:BX) is one of the world’s leading investment firms. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies it invests in, and the communities in which it works. Blackstone does this by using extraordinary people and flexible capital to help companies solve problems. Blackstone’s asset management businesses, with over $350 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. 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, including performance of the loan portfolio acquired from GE Capital. 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, 2015 and Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2016, as such factors may be updated from time to time in its periodic filings with the Securities and Exchange Commission (“SEC”) 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.

We refer to “Core Earnings,” which is a non-GAAP financial measure, in this release. A reconciliation to net income attributable to Blackstone Mortgage Trust, the most directly comparable GAAP measure, is included in our full detailed presentation of second quarter 2016 results and is available on our website at www.bxmt.com.

Investor and Media Relations Contacts

Weston Tucker Investor Relations Blackstone +1 (212) 583-5231 tucker@blackstone.com Paula Chirhart Media Relations Blackstone +1 (212) 583-5263 paula.chirhart@blackstone.com

2

EX-99.2

Blackstone Mortgage Trust, Inc.

July 26, 2016

Second Quarter 2016 Results

Exhibit 99.2

Second Quarter 2016 Highlights

Information included in this presentation is as of or for the period ended June 30, 2016, unless otherwise indicated. See Appendix for definitions of Core Earnings and Gross Return on

Investment

(“Gross

ROI”),

as

well

as

certain

per

share

calculations

that

are

referenced

throughout

this

presentation.

Discussion

of

loan

portfolio

and

portfolio

metrics

included

in

this presentation includes $1.1 billion of non-consolidated senior interests, which are senior interests in loans we originated and syndicated to third-parties. These non-recourse loan

participations also constitute additional financing capacity for our portfolio.

(a)

See Appendix for a reconciliation to GAAP net income.

(b)

Total liquidity includes $182 million of cash and $430 million of available borrowings. Potential loan originations assumes 4.0x asset-level leverage on total liquidity, net of $144 million of

minimum liquidity requirements under applicable debt covenants.

Blackstone Mortgage Trust

1

GAAP

net

income

of

$63

million

during

2Q;

book

value

of

$26.54

per

share.

Core

Earnings

of

$0.67

per

share

during

2Q,

(a)

the

fourth

consecutive

quarter

of

105%+

coverage

of

the

$0.62

dividend.

Loan

originations

of

$859

million

were

100%

comprised

of

senior,

floating

rate

mortgage

loans.

Fundings

totaled

$848

million,

with

loan

repayments

of

$966

million.

Weighted

average

risk

rating

of

2.3

with

no

“4”

or

“5”

rated

loans

in

the

portfolio.

Closed

an

additional

$1.8

billion

of

financing

capacity,

including

$1.3

billion

of

additional

capacity

under

existing

revolving

credit

facilities

and

extended

$1.1

billion

of

facility

maturities.

Potential

loan

origination

capacity

of

$2.3

billion

(b)

based

on

quarter-end

liquidity

of

$612

million.

(b)

Operating Results

Balance Sheet

Second

Quarter

2016

Balance

Sheet

and

Operating

Results

(a)

(a)

See Appendix pages 10-13 for Second Quarter 2016 Balance Sheet, Net Income, Core Earnings, and per share calculations. See Appendix page 14 for a definition

of Core Earnings.

(b)

Includes $182 million of cash and cash equivalents, $476,000 of restricted cash, $3 million of equity investments in unconsolidated subsidiaries, and $212  million

of other assets, net of $193

million of other liabilities.

$0.67

Core

Earnings

per

share

(a)

$26.54

Book

Value

per

share

(a)

Loans receivable, net

Secured debt agreements

Loan participations sold

Convertible notes, net

Total equity

$9,091

$6,198

$423

$2,509

(Dollars in Millions)

$165

$204

Blackstone Mortgage Trust

2

GAAP Net

Income

Adjustments

Core

Earnings

(a)

Interest Income

130.2

$   

(1.2)

$       

129.0

$   

Interest Expense

(49.1)

0.4

(48.7)

Management and

Incentive Fees

(15.8)

—

(15.8)

G&A / Other

(1.2)

(0.1)

(1.3)

Non-Cash

Compensation

(4.8)

4.8

—

CT Legacy

Portfolio, net

3.8

(3.8)

—

Total

63.1

$   

-

$     

63.1

$   

Other

assets/liabilities, net

(b)

Loan Portfolio Overview

Closed

four

new

loans

and

modified

three

loans

totaling

$859

million

of

new

originations

and

funded

$848

million,

including

$117

million

of

follow-on

fundings

of

previously

originated

loans.

Loan

repayments

of

$966

million.

Gross

ROI

(a)(b)

of

14.7%

and

LTV

of

62%.

Loan Portfolio Statistics

(a)

See Appendix page 14 for a definition of Gross Return on Investment (“Gross ROI”).

(b)

Assumes applicable floating benchmark rates for weighted-average calculation.

(c)

Maximum maturity assumes all extension options are exercised, however floating rate loans generally may be repaid prior to their final maturity without penalty.

2Q Originations

100% floating rate loans

100% senior loans

Average all-in yield of L+4.67%

and Gross ROI

(a)

of L+13.56%

Average loan size of $161 million

Average origination LTV of 57%

Blackstone Mortgage Trust

3

(Dollars in Millions)

Floating

Fixed

Total

Number of loans

89

27

116

Principal Balance

$7,989

$2,196

$10,185

Wtd. avg. origination LTV

61%

66%

62%

Wtd. avg. cash coupon

(b)

L + 4.02%

5.11%

4.66%

Wtd. avg. all-in yield

(b)

L + 4.43%

5.50%

5.07%

Wtd. avg. Gross ROI

(a)

L + 13.2%

18.2%

14.7%

Wtd. avg. maximum maturity

(c)

3.3 yrs.

2.9 yrs.

3.2 yrs.

Portfolio Diversification

BXMT’s

portfolio

is

diversified

by

collateral

property

type

and

geographic

location.

Loans

secured

by

London

properties

represent

3%

of

the

total

portfolio,

with

a

wtd.

avg.

origination

LTV

of

54%.

Collateral Diversification

(Principal Balance, % of Total)

Office

Multifamily

Hotel

Condo 3%

Other

Retail

Manufactured

Housing (MHC)

Geographic Diversification

(Principal Balance, % of Total)

States that comprise less than 1% of total loan portfolio

(a)

Excludes acquired GE portfolio loans.

AZ

1%

CO

1%

HI

1%

IA

1%

MD

1%

NC

1%

OK

1%

OR

1%

PA

1%

SC

1%

TN, 1%

ES

1%

NL

1%

DC

3%

GA

4%

VA

2%

WA

2%

DEU

3%

CAN

5%

FL

9%

TX

6%

UK

13%

CA

14%

NY

19%

Average Loan Size

(a)

(Direct Originations Only)

$120 million

IL

7%

Blackstone Mortgage Trust

4

41%

19%

12%

12%

6%

7%

Portfolio Credit Quality

BXMT’s

senior

loan

portfolio

is

100%

performing,

with

no

defaulted

or

impaired

loans.

Upgraded

the

only

"4"

rated

loan

after

it

was

reduced

to

$11

million

by

a

$43

million

repayment

that

delevered

the

position.

Risk Rating Distribution

(b)

(Principal Balance, Dollars in Millions)

15               63              38               0                 0

Loan Count:

Origination Loan-to-Value

(a)

(Principal Balance, Dollars in Millions)

2.3

Weighted Average

62%

Weighted Average

Blackstone Mortgage Trust

5

(a)

Reflects LTV as of the date loans were originated or acquired by BXMT.

(b)

Risk rating is assigned based on a variety of factors, including, without limitation, LTV, debt yield, property type, geographic and local market dynamics, physical condition,

cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a 5-point scale, our loans are rated “1” through “5,” from less

risk to greater risk, which ratings are defined as follows: 1 – very low risk, 2 – low risk, 3 – medium risk, 4 – high risk/potential for loss, 5 – impaired/loss likely.

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

1

2

3

4

5

$0

$500

$1,000

$1,500

$2,000

$2,500

Financing Capacity

Closed

$1.8

billion

of

new

financing

capacity,

and

extended

maturities

on

$1.1

billion

of

facilities.

Total

liquidity

of

$612

million

(a)

at

quarter-end,

providing

for

$2.3

billion

(a)

of

potential

loan

originations

and

fundings.

(a)

Total liquidity includes $182 million of cash and $430 million of available borrowings. Potential loan originations assumes 4.0x asset-level leverage on total liquidity,

net of $144 million of minimum liquidity requirements under applicable debt covenants.

(b)

Includes $1.2 billion of capacity and $1.1 billion of non-consolidated senior interests, which result from non-recourse sales of senior loan interests in loans BXMT originates.

BXMT’s net investments in these loans are reflected in the form of mezzanine or other subordinate loans on BXMT’s balance sheet.

(c)

Ratio of (i) total debt outstanding, less cash to (ii) stockholders’ equity. Excludes structural leverage provided by loan participations sold and non-consolidated senior interests.

(d)

Ratio of (i) total debt outstanding, loan participations sold, and non-consolidated senior interests, less cash to (ii) stockholders’ equity.

2.5x

Debt-to-Equity

Ratio

(c)

3.1x

Total Leverage

(d)

Revolving

Credit Facilities

All-in cost of L+2.04%

Asset-Specific

Financings

Primarily GE portfolio financing at an all-in cost of

L+1.86%

Corporate Debt

Convertible

Notes:

Unsecured

debt

with

an

all-in

cost

of 5.87%

Revolving

Credit

Agreement:

Secured

corporate

facility with a coupon of L+2.75%

Total Debt

Senior Loan

Participations

(b)

Pricing directly related to underlying collateral

assets

Total Financing

$5.5

$3.1

$3.5

$3.1

$0.3

$0.2

$9.3

$6.4

$1.6

$1.5

$10.9

$7.9

Capacity

Outstanding

(Dollars in Billions)

Blackstone Mortgage Trust

6

Interest Rates

Core

Earnings

are

positively

correlated

to

changes

in

USD

and

GBP

LIBOR,

the

benchmark

indices

for

76%

of

BXMT’s

total

loan

exposure

and

related

secured

financings.

(a)

(a)

Core Earnings are inversely correlated to EURIBOR and CDOR such that an increase of 50bps in either would decrease Core Earnings per share by $0.01 per year.

(b)

As of June 30, 2016, $146 million of floating rate loans earned interest based on floors that were above the applicable index, with an average floor of 1.80%, based on

loan principal balance.

Portfolio Income Sensitivity to USD LIBOR

(Annual Dollars of Net Interest Income Per Share)

Portfolio Fixed vs. Floating

(% of Principal Balance)

Floating

(b)

Fixed

Blackstone Mortgage Trust

7

78%

22%

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

0.47%

0.97%

1.47%

1.97%

2.47%

2.97%

USD LIBOR

Appendix

Loan Portfolio Details

(Dollars in Millions)

Blackstone Mortgage Trust

9

Loan Type

Origination

Date

(a)

Total

Loan

(b)

Principal

Balance

(b)

Net Book

Value

Cash

Coupon

All-In

Yield

Maximum

Maturity

(c)

Location

Property

Type

Loan Per

SQFT / Unit / Key

Origination

LTV

(a)

Loan 1

Senior loan

(b)

8/6/2015

495

$

495

$

89

$  

4.48%

5.91%

10/29/2022

Diversified -

EUR

Other

n/a

72%

Loan 2

Senior loan

4/18/2016

457

457

452

L+4.20%

L+4.48%

12/31/2019

Diversified -

UK

Hotel

123,636 /  key

59%

Loan 3

Senior loan

(b)

5/15/2015

590

450

76

L+4.25%

L+4.81%

5/15/2020

Miami

Retail

565 / sqft

36%

Loan 4

Senior loan

6/11/2015

336

336

337

4.90%

(d)

4.94%

(d)

4/30/2019

Diversified -

US

MHC

25,824 / unit

78%

Loan 5

Senior loan

(b)

6/30/2015

330

303

60

L+4.75%

L+5.15%

7/9/2020

San Francisco

Condo

902 / sqft

66%

Loan 6

Senior loan

6/23/2015

302

302

303

5.30%

(d)

5.46%

(d)

8/31/2016

Diversified -

US

MHC

15,804 / unit

60%

Loan 7

Senior loan

5/1/2015

320

295

293

L+3.45%

L+3.83%

5/1/2020

New York

Office

374 / sqft

68%

Loan 8

Senior loan

1/7/2015

315

280

279

L+3.50%

L+3.87%

1/9/2020

New York

Office

240 / sqft

53%

Loan 9

Senior loan

6/4/2015

267

267

270

5.53%

(d)

5.48%

(d)

2/17/2019

Diversified -

CAN

Hotel

34,957 /  key

54%

Loan 10

Senior loan

4/27/2016

208

208

206

L+4.35%

L+4.88%

5/9/2021

Chicago

Office

219 / sqft

72%

Loan 11

Senior loan

6/23/2015

207

207

206

5.38%

5.44%

1/18/2017

Diversified -

GER

Retail

62 / sqft

53%

Loan 12

Senior loan

6/23/2015

224

205

204

L+3.65%

L+3.79%

10/1/2020

Washington DC

Office

253 / sqft

72%

Loan 13

Senior loan

6/11/2015

204

204

204

4.79%

(d)

4.95%

(d)

8/31/2016

Diversified -

US

MHC

18,947 / unit

65%

Loan 14

Senior loan

7/31/2014

215

179

178

L+3.50%

L+3.57%

8/9/2019

Chicago

Office

238 / sqft

65%

Loan 15

Senior loan

4/15/2016

200

173

172

L+4.25%

L+4.86%

5/9/2021

New York

Office

160 / sqft

47%

Loan 16-116

Various

Various

6,583

5,824

5,762

4.63%

5.03%

(c)

Various

Various

Various

Various

63%

Total/Wtd. Avg.

11,253

$

10,185

$

9,091

$  

4.66%

5.07%

3.2 years

62%

(a)

Date loan was originated or acquired by BXMT, and the LTV as of such date.

(b)

In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. As of

June 30, 2016, four loans in our portfolio have been financed with an aggregate $1.1 billion of non-consolidated senior interest, which are included in the table above.

(c)

Maximum maturity assumes all extension options are exercised, however floating rate loans generally may be repaid prior to their final maturity without penalty.

(d)

Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for weighted-average calculation.

Consolidated Balance Sheets

(Dollars in Thousands, Except per Share Data)

Blackstone Mortgage Trust

10

June 30, 2016

December 31, 2015

Assets

Cash and cash equivalents

181,796

$                   

96,450

$                     

Restricted cash

476

9,556

Loans receivable, net

9,090,934

9,077,007

Equity investments in unconsolidated subsidiaries

2,806

9,441

Other assets

212,449

184,119

Total assets

9,488,461

$               

9,376,573

$               

Liabilities and equity

Secured debt agreements

6,198,093

$               

6,116,105

$               

Loan participations sold

422,585

497,032

Convertible notes, net

165,373

164,026

Other liabilities

193,316

93,679

Total liabilities

6,979,367

6,870,842

Commitments and contingencies

—

—

Equity

Class A common stock, $0.01 par value

939

937

Additional paid-in capital

3,079,903

3,070,200

Accumulated other comprehensive loss

(42,143)

(32,758)

Accumulated deficit

(542,282)

(545,791)

Total Blackstone Mortgage Trust, Inc. stockholders’ equity

2,496,417

2,492,588

Non-controlling interests

12,677

13,143

Total equity

2,509,094

2,505,731

Total liabilities and equity

9,488,461

$               

9,376,573

$               

Consolidated Statements of Operations

(Dollars in Thousands, Except per Share Data)

Blackstone Mortgage Trust

11

Three Months Ended June 30,

Six Months Ended June 30,

2016

2015

2016

2015

Income from loans and other investments

Interest and related income

130,471

$      

80,481

$        

253,496

$      

143,889

$      

Less: Interest and related expenses

49,065

30,634

94,446

54,796

Income from loans and other investments, net

81,406

49,847

159,050

89,093

Other expenses

Management and incentive fees

15,847

8,051

29,460

14,721

General and administrative expenses

6,781

15,698

13,576

23,359

Total other expenses

22,628

23,749

43,036

38,080

Gain on investments at fair value

10,524

4,714

10,589

22,190

(Loss) income from equity investments in unconsolidated subsidiaries

(6)

1,710

133

5,659

Income before income taxes

69,296

32,522

126,736

78,862

Income tax (benefit) provision

(154)

105

87

350

Net income

69,450

$        

32,417

$        

126,649

$      

78,512

$        

Net income attributable to non-controlling interests

(6,369)

(3,133)

(6,521)

(13,833)

Net income attributable to Blackstone Mortgage Trust, Inc.

63,081

$        

29,284

$        

120,128

$      

64,679

$        

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

94,064,423

80,940,535

94,066,096

69,820,061

Net income per share of common stock

0.67

$             

0.36

$             

1.28

$             

0.93

$             

Per Share Calculations

(Amounts in Thousands, Except per Share Data)

Core Earnings

Reconciliation

Book Value

per Share

Earnings

per Share

(a)

Represents net income attributable to Blackstone Mortgage Trust.

(b)

Adjustment in respect of the deferral in Core Earnings of the accretion of a total $9.1 million of purchase discount attributable to a certain pool of GE portfolio loans

pending the repayment of those loans.

Three Months Ended

June 30, 2016

March 31, 2016

Net income

(a)

63,081

$                    

57,047

$                      

Weighted-average shares outstanding, basic and diluted

94,064

94,068

Earnings per share, basic and diluted

0.67

$                         

0.61

$                            

Blackstone Mortgage Trust

12

Three Months Ended

June 30, 2016

March 31, 2016

Net income

(a)

63,081

$                   

57,047

$                     

CT Legacy Portfolio net (income) loss

(3,825)

183

Non-cash compensation expense

4,836

4,687

GE purchase discount accretion adjustment

(b)

(1,247)

(1,166)

Other items

278

418

Core Earnings

63,123

$                   

61,169

$                     

Weighted-average shares outstanding, basic and diluted

94,064

94,068

Core Earnings per share, basic and diluted

0.67

$                       

0.65

$                           

June 30, 2016

March 31, 2016

Stockholders’

equity

2,496,417

$             

2,495,417

$                

Shares

Class A common stock

93,913

93,912

Deferred stock units

155

149

Total outstanding

94,068

94,061

Book value per share

26.54

$                     

26.53

$                         

Reconciliation of Net Income to Core Earnings

(a)

and G&A Expenses Included in Core Earnings

(a)

Beginning in the third quarter of 2015, Core Earnings is net of incentive fee expenses. Prior period Core Earnings have also been presented above net of incentive

fees to allow for comparability.

(b)

Represents net income attributable to Blackstone Mortgage Trust.

(c)

Adjustment in respect of the deferral in Core Earnings of the accretion of a total $9.1 million of purchase discount attributable to a certain pool of GE portfolio loans

pending the repayment of those loans.

(d)

Includes expenses related to the GE portfolio acquisition of $9.0 million, $370,000, and $40,000 in 2Q 2015, 3Q 2015, and 4Q 2015, respectively.

(Amounts in Thousands, Except per Share Data)

Net Income

Reconciliation

G&A

Reconciliation

Three Months Ended

June 30,

2015

September 30,

2015

December 31,

2015

March 31,

2016

June 30,

2016

Net income

(b)

29,284

$            

66,888

$            

65,264

$            

57,047

$            

63,081

$            

CT Legacy Portfolio net (income) loss

(1,857)

(401)

(3,408)

183

(3,825)

Non-cash compensation expense

3,396

3,188

3,460

4,687

4,836

GE purchase discount accretion adjustment

(c)

(459)

(2,008)

(1,542)

(1,166)

(1,247)

Other items

416

(119)

310

418

278

Core Earnings

30,780

$            

67,548

$            

64,084

$            

61,169

$            

63,123

$            

Weighted-average shares outstanding, basic and diluted

80,941

93,358

93,574

94,068

94,064

Net income per share, basic and diluted

0.36

$                 

0.72

$                 

0.70

$                 

0.61

$                 

0.67

$                

Core Earnings per share, basic and diluted

0.38

$                 

0.72

$                 

0.68

$                 

0.65

$                 

0.67

$                

Blackstone Mortgage Trust

13

Three Months Ended

(d)

June 30,

2015

September 30,

2015

December 31,

2015

March 31,

2016

June 30,

2016

General and administrative expenses (GAAP)

15,698

$             

5,295

$               

8,053

$               

6,795

$               

6,781

$               

CT Legacy Portfolio expenses

(1,957)

(167)

(2,849)

(349)

(668)

Non-cash compensation expense

(3,396)

(3,188)

(3,460)

(4,687)

(4,836)

General and administrative expenses (Core Earnings)

10,345

$             

1,940

$               

1,744

$               

1,759

$               

1,277

$               

Definitions

Core

Earnings:

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.

Although

according

to

its

management

agreement

BXMT

calculates

the

incentive

and

base

management

fees

due

to

its

Manager

using

Core

Earnings

before

incentive

fees

expense,

beginning

with

the

third

quarter

of

2015,

BXMT

will

report

Core

Earnings

after

incentive

fees

expense,

as

BXMT

believes

this

is

a

more

meaningful

presentation

of

the

economic

performance

of

its

class

A

common

stock.

Core

Earnings

is

defined

as

GAAP

net

income

(loss),

including

realized

gains

and

losses

not

otherwise

included

in

GAAP

net

income

(loss),

and

excluding

(i)

net

income

(loss)

attributable

to

the

CT

Legacy

Portfolio,

(ii)

non-cash

equity

compensation

expense,

(iii)

depreciation

and

amortization,

(iv)

unrealized

gains

(losses),

and

(v)

certain

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

BXMT’s

GAAP

cash

flows

from

operations,

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.

Weighted

average

gross

return

on

investment

(“Gross

ROI”):

Investment

return

based

on

each

asset’s

all-in

yield,

assuming

no

early

repayments

or

defaults

and

the

all-in

cost

of

related

asset-level

secured

debt,

assuming

maximum

available

leverage

in

place

or

in

negotiation

for

each

investment,

notwithstanding

the

amount

actually

borrowed.

Gross

ROI

excludes

the

impact

of

un-deployed

capital

and

liquidity,

the

impact

of

the

corporate-level

revolving

credit

agreement

and

convertible

notes,

and

management

fees

and

other

corporate-level

expenses.

Gross

ROI

is

presented

solely

for

informational

purposes

and

is

not

representative

of

net

income

recognized

in

prior

or

future

periods.

Blackstone Mortgage Trust

14

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

(“BXMT”)

current

views

with

respect

to,

among

other

things,

BXMT’s

operations

and

financial

performance,

including

performance

of

the

loan

portfolio

acquired

from

GE

Capital.

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.

BXMT

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,

2015

and

Quarterly

Report

on

Form

10-Q

for

the

fiscal

quarter

ended

June

30,

2016,

as

such

factors

may

be

updated

from

time

to

time

in

its

periodic

filings

with

the

Securities

and

Exchange

Commission

(“SEC”)

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.

BXMT

assumes

no

obligation

to

update

or

supplement

forward-looking

statements

that

become

untrue

because

of

subsequent

events

or

circumstances.

Blackstone Mortgage Trust

15