10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2016

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM                      TO                     

Commission File Number: 001-14788

Blackstone Mortgage Trust, Inc.

(Exact name of Registrant as specified in its charter)

Maryland	94-6181186
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

345 Park Avenue, 42nd Floor

New York, New York 10154

(Address of principal executive offices)(Zip Code)

(212) 655-0220

(Registrant’s telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

The number of the Registrant’s outstanding shares of class A common stock, par value $0.01 per share, as of October 18, 2016 was 93,913,194.

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	2
	Consolidated Financial Statements (Unaudited):
	Consolidated Balance Sheets as of September  30, 2016 and December 31, 2015	2
	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2016 and 2015	3
	Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2016 and 2015	4
	Consolidated Statements of Changes in Equity for the Nine Months Ended September 30, 2016 and 2015	5
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2016 and 2015	6
	Notes to Consolidated Financial Statements	7
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	38
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	58
ITEM 4.	CONTROLS AND PROCEDURES	60
PART II.	OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	61
ITEM 1A.	RISK FACTORS	61
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	61
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	61
ITEM 4.	MINE SAFETY DISCLOSURES	61
ITEM 5.	OTHER INFORMATION	61
ITEM 6.	EXHIBITS	62
SIGNATURES		63

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Blackstone Mortgage Trust, Inc.

Consolidated Balance Sheets (Unaudited)

(in thousands, except share data)

	September 30,			December 31,
	2016			2015
Assets
Cash and cash equivalents	$	94,061		$	96,450
Restricted cash		877			9,556
Loans receivable, net		8,347,712			9,077,007
Equity investments in unconsolidated subsidiaries		1,678			9,441
Other assets		66,613			184,119
Total Assets	$	8,510,941		$	9,376,573
Liabilities and Equity
Secured debt agreements	$	5,320,358		$	6,116,105
Loan participations sold		409,654			497,032
Convertible notes, net		166,064			164,026
Other liabilities		110,067			93,679
Total Liabilities		6,006,143			6,870,842
Commitments and contingencies		—			—
Equity
Class A common stock, $0.01 par value, 200,000,000 shares authorized, 93,912,936 and 93,702,326 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively		939			937
Additional paid-in capital		3,084,948			3,070,200
Accumulated other comprehensive loss		(46,389	)		(32,758	)
Accumulated deficit		(535,804	)		(545,791	)
Total Blackstone Mortgage Trust, Inc. stockholders’ equity		2,503,694			2,492,588
Non-controlling interests		1,104			13,143
Total Equity		2,504,798			2,505,731
Total Liabilities and Equity	$	8,510,941		$	9,376,573

See accompanying notes to consolidated financial statements.

2

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Income from loans and other investments
Interest and related income	$	128,190		$	138,361		$	381,686		$	282,249
Less: Interest and related expenses		45,373			51,329			139,819			106,125
Income from loans and other investments, net		82,817			87,032			241,867			176,124
Other expenses
Management and incentive fees		13,701			13,813			43,161			28,535
General and administrative expenses		7,414			5,295			20,990			28,655
Total other expenses		21,115			19,108			64,151			57,190
Gain (loss) on investments at fair value		2,824			(82	)		13,413			22,108
Income from equity investments in unconsolidated subsidiaries		2,060			17			2,192			5,677
Income before income taxes		66,586			67,859			193,321			146,719
Income tax provision		194			81			281			431
Net income		66,392			67,778			193,040			146,288
Net income attributable to non-controlling interests		(1,598	)		(890	)		(8,119	)		(14,724	)
Net income attributable to Blackstone Mortgage Trust, Inc.	$	64,794		$	66,888		$	184,921		$	131,564
Net income per share of common stock basic and diluted	$	0.69		$	0.72		$	1.97		$	1.69
Weighted-average shares of common stock outstanding basic and diluted		94,071,537			93,357,960			94,067,923			77,752,247
Dividends declared per share of common stock	$	0.62		$	0.62		$	1.86		$	1.66

See accompanying notes to consolidated financial statements.

3

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Net income	$	66,392		$	67,778		$	193,040		$	146,288
Other comprehensive loss
Unrealized loss on foreign currency remeasurement		(10,128	)		(23,148	)		(25,472	)		(27,484	)
Unrealized gain on derivative financial instruments		5,882			14,891			11,841			14,920
Comprehensive income		62,146			59,521			179,409			133,724
Comprehensive income attributable to non-controlling interests		(1,598	)		(890	)		(8,119	)		(14,724	)
Comprehensive income attributable to Blackstone Mortgage Trust, Inc.	$	60,548		$	58,631		$	171,290		$	119,000

See accompanying notes to consolidated financial statements.

4

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Changes in Equity (Unaudited)

(in thousands)

	Blackstone Mortgage Trust, Inc.
	Class A		Additional		Accumulated Other
	Common		Paid-In		Comprehensive			Accumulated			Stockholders’			Non-controlling			Total
	Stock		Capital		Loss			Deficit			Equity			Interests			Equity
Balance at December 31, 2014	$	583	$	2,027,404	$	(15,024	)	$	(547,592	)	$	1,465,371		$	35,515		$	1,500,886
Shares of class A common stock issued, net		349		1,029,186		—			—			1,029,535			—			1,029,535
Restricted class A common stock earned		—		9,599		—			—			9,599			—			9,599
Dividends reinvested		—		192		—			(179	)		13			—			13
Deferred directors’ compensation		—		281		—			—			281			—			281
Other comprehensive loss		—		—		(12,564	)		—			(12,564	)		—			(12,564	)
Net income		—		—		—			131,564			131,564			14,724			146,288
Dividends declared on common stock		—		—		—			(136,674	)		(136,674	)		—			(136,674	)
Distributions to non-controlling interests		—		—		—			—			—			(37,202	)		(37,202	)
Balance at September 30, 2015	$	932	$	3,066,662	$	(27,588	)	$	(552,881	)	$	2,487,125		$	13,037		$	2,500,162
Balance at December 31, 2015	$	937	$	3,070,200	$	(32,758	)	$	(545,791	)	$	2,492,588		$	13,143		$	2,505,731
Shares of class A common stock issued, net		2		—		—			—			2			—			2
Restricted class A common stock earned		—		14,190		—			—			14,190			—			14,190
Dividends reinvested		—		276		—			(256	)		20			—			20
Deferred directors’ compensation		—		282		—			—			282			—			282
Other comprehensive loss		—		—		(13,631	)		—			(13,631	)		—			(13,631	)
Net income		—		—		—			184,921			184,921			8,119			193,040
Dividends declared on common stock		—		—		—			(174,678	)		(174,678	)		—			(174,678	)
Distributions to non-controlling interests		—		—		—			—			—			(20,158	)		(20,158	)
Balance at September 30, 2016	$	939	$	3,084,948	$	(46,389)		$	(535,804)		$	2,503,694		$	1,104		$	2,504,798

See accompanying notes to consolidated financial statements.

5

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

	Nine Months Ended September 30,
	2016			2015
Cash flows from operating activities
Net income	$	193,040		$	146,288
Adjustments to reconcile net income to net cash provided by operating activities
Gain on investments at fair value		(13,413	)		(22,108	)
Income from equity investments in unconsolidated subsidiaries		(2,192	)		(5,677	)
Non-cash compensation expense		16,517			14,470
Distributions of income from unconsolidated subsidiaries		8,167			5,007
Amortization of deferred interest on loans		(31,594	)		(25,489	)
Amortization of deferred financing costs and premiums/discount on debt obligations		15,129			14,684
Changes in assets and liabilities, net
Other assets		8,315			(28,679	)
Other liabilities		(6,405	)		6,114
Net cash provided by operating activities		187,564			104,610
Cash flows from investing activities
Originations and fundings of loans receivable		(2,300,636	)		(6,807,347	)
Principal collections and sale proceeds from loans receivable and other assets		3,054,821			1,584,189
Origination and exit fees received on loans receivable		35,388			26,799
Change in restricted cash		8,678			2,528
Net cash provided by (used in) investing activities		798,251			(5,193,831	)
Cash flows from financing activities
Borrowings under secured debt agreements		2,225,895			6,560,426
Repayments under secured debt agreements		(2,988,217	)		(2,279,837	)
Proceeds from sales of loan participations		54,441			256,000
Repayment of loan participations		(92,000	)		(238,164	)
Payment of deferred financing costs		(12,564	)		(19,932	)
Receipts under derivative financial instruments		31,668			15,653
Payments under derivative financial instruments		(14,266	)		(3,742	)
Distributions to non-controlling interests		(20,158	)		(37,202	)
Net proceeds from issuance of class A common stock		20			1,029,535
Dividends paid on class A common stock		(174,549	)		(109,178	)
Net cash (used in) provided by financing activities		(989,730	)		5,173,559
Net (decrease) increase in cash and cash equivalents		(3,915	)		84,338
Cash and cash equivalents at beginning of period		96,450			51,810
Effects of currency translation on cash and cash equivalents		1,526			2,452
Cash and cash equivalents at end of period	$	94,061		$	138,600
Supplemental disclosure of cash flows information
Payments of interest	$	(123,564	)	$	(85,494	)
Payments of income taxes	$	(131	)	$	(125	)
Supplemental disclosure of non-cash investing and financing activities
Dividends declared, not paid	$	(58,388	)	$	(57,800	)
Participations sold, net	$	37,559		$	17,836
Loan principal payments held by servicer, net	$	9,515		$	232,818

See accompanying notes to consolidated financial statements.

6

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements

(Unaudited)

1. ORGANIZATION

References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us” or “our” refer to Blackstone Mortgage Trust, Inc. and its subsidiaries unless the context specifically requires otherwise.

Blackstone Mortgage Trust is a real estate finance company that originates and purchases senior loans collateralized by properties in North America and Europe. We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of The Blackstone Group L.P., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” We are headquartered in New York City.

We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended. We are organized as a holding company and conduct our business primarily through our various subsidiaries.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated financial statements, including the notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements. Management believes it has made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are presented fairly and that estimates made in preparing its consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the Securities and Exchange Commission.

Basis of Presentation

The accompanying consolidated financial statements include, on a consolidated basis, our accounts, the accounts of our wholly-owned subsidiaries, majority-owned subsidiaries, and variable interest entities, or VIEs, of which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Certain of the assets and credit of our consolidated subsidiaries are not available to satisfy the debt or other obligations of us, our affiliates, or other entities.

One of our subsidiaries, CT Legacy Partners, LLC, or CT Legacy Partners, accounts for its operations in accordance with industry-specific GAAP accounting guidance for investment companies, pursuant to which it reports its investments at fair value. We have retained this accounting treatment in consolidation and, accordingly, report the loans and other investments of CT Legacy Partners at fair value on our consolidated balance sheets.

Certain reclassifications have been made in the presentation of the prior period consolidated statement of cash flows to conform to the current period presentation.

Principles of Consolidation

We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

As of both September 30, 2016 and December 31, 2015, we did not consolidate any VIEs.

7

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may ultimately differ from those estimates.

Revenue Recognition

Interest income from our loans receivable portfolio is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these investments is deferred until the loan is advanced and is then recorded over the term of the loan as an adjustment to yield. Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of our Manager, recovery of income and principal becomes doubtful. Income is then recorded on the basis of cash received until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses are deferred and recognized as a component of interest income, however expenses related to loans we acquire are included in general and administrative expenses as incurred.

Cash and Cash Equivalents

Cash and cash equivalents represent cash held in banks, cash on hand, and liquid investments with original maturities of three months or less. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. We have not experienced, and do not expect, any losses on our cash or cash equivalents.

Restricted Cash

We classify the cash balances held by CT Legacy Partners as restricted because, while these cash balances are available for use by CT Legacy Partners for its operations, they cannot be used by us until our allocable share is distributed from CT Legacy Partners and cannot be commingled with any of our unrestricted cash balances.

Loans Receivable and Provision for Loan Losses

We originate and purchase commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost. We are required to periodically evaluate each of these loans for possible impairment. Impairment is indicated when it is deemed probable that we will not be able to collect all amounts due to us pursuant to the contractual terms of the loan. If a loan is determined to be impaired, we write down the loan through a charge to the provision for loan losses. Impairment of these loans, which are collateral dependent, is measured by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by our Manager. Actual losses, if any, could ultimately differ from these estimates.

Our Manager performs a quarterly review of our portfolio of loans. In conjunction with this review, our Manager assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors, including, without limitation, loan-to-value ratio, or 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: A loan that has a risk of realizing a principal loss.
5 -	Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss.

8

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

During the second quarter of 2015, we acquired a portfolio of loans from General Electric Capital Corporation and certain of its affiliates, or the GE portfolio, for a total purchase price of $4.7 billion. We allocated the aggregate purchase price between each loan based on its fair value relative to the overall portfolio, which allocation resulted in purchase discounts or premiums determined on an asset-by-asset basis. Each loan will accrete from its allocated purchase price to its expected collection value over the life of the loan, consistent with the other loans in our portfolio.

Equity Investments in Unconsolidated Subsidiaries

Our carried interest in CT Opportunity Partners I, LP, or CTOPI, is accounted for using the equity method. CTOPI’s assets and liabilities are not consolidated into our financial statements due to our determination that (i) it is not a VIE and (ii) the other investors in CTOPI have sufficient rights to preclude consolidation by us. As such, we report our allocable percentage of the net assets of CTOPI on our consolidated balance sheets. The recognition of income from CTOPI is generally deferred until cash is collected or appropriate contingencies have been eliminated.

Derivative Financial Instruments

We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets at fair value.

On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all derivatives other than those designated as non-designated hedges, we formally document our hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction.

On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. Changes in the fair value of the effective portion of our hedges are reflected in accumulated other comprehensive income (loss) on our consolidated financial statements. Changes in the fair value of the ineffective portion of our hedges are included in net income. Amounts are reclassified out of accumulated other comprehensive income (loss) and into net income when the hedged item is sold, substantially liquidated, or de-designated. To the extent a derivative does not qualify for hedge accounting and is deemed a non-designated hedge, the changes in its value are included in net income.

Repurchase Agreements

We record investments financed with repurchase agreements as separate assets and the related borrowings under any repurchase agreements are recorded as separate liabilities on our consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the repurchase agreements are reported separately on our consolidated statements of operations.

Senior Loan Participations

In certain instances, we finance our loans through the non-recourse syndication of a senior loan interest to a third-party. Depending on the particular structure of the syndication, the senior loan interest may remain on our GAAP balance sheet or, in other cases, the sale will be recognized and the senior loan interest will no longer be included in our consolidated financial statements. When these sales are not recognized under GAAP we reflect the transaction by recording a loan participations sold liability on our consolidated balance sheet, however this gross presentation does not impact stockholders’ equity or net income. When the sales are recognized, our balance sheet only includes our remaining subordinate loan and not the non-consolidated senior interest we sold.

9

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

Convertible Notes

The “Debt with Conversion and Other Options” Topic of the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. The initial proceeds from the sale of convertible notes are allocated between a liability component and an equity component in a manner that reflects interest expense at the rate of similar nonconvertible debt that could have been issued at such time. The equity component represents the excess initial proceeds received over the fair value of the liability component of the notes as of the date of issuance. We measured the estimated fair value of the debt component of our convertible notes as of the issuance date based on our nonconvertible debt borrowing rate. The equity component of the convertible notes is reflected within additional paid-in capital on our consolidated balance sheet, and the resulting debt discount is amortized over the period during which the convertible notes are expected to be outstanding (through the maturity date) as additional non-cash interest expense. The additional non-cash interest expense attributable to the convertible notes will increase in subsequent periods through the maturity date as the notes accrete to their par value over the same period.

Deferred Financing Costs

The deferred financing costs that are included as a reduction in the net book value of the related liability on our consolidated balance sheets include issuance and other costs related to our debt obligations. These costs are amortized as interest expense using the effective interest method over the life of the related obligations.

Fair Value of Financial Instruments

The “Fair Value Measurements and Disclosures” Topic, or ASC 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP. Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date.

ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows:

• Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date.

• Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates.

• Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third-parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2.

The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed of members of senior management of our Manager, including our Chief Executive Officer, Chief Financial Officer, and other senior officers.

10

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

Certain of our other assets are reported at fair value either (i) on a recurring basis, as of each quarter-end, or (ii) on a nonrecurring basis, as a result of impairment or other events. Our assets that are recorded at fair value are discussed further in Note 14. We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from third-party dealers. For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our Manager’s estimation of the fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations may require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by our Manager.

We are also required by GAAP to disclose fair value information about financial instruments, that are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments.

The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value:

• Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates fair value.

• Restricted cash: The carrying amount of restricted cash approximates fair value.

• Loans receivable, net: The fair values for these loans were estimated by our Manager based on discounted cash flow methodology taking into consideration factors, including capitalization rates, discount rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and indications of market value from other market participants.

• Derivative financial instruments: The fair value of our foreign currency contracts and interest rates caps was valued using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads.

• Secured debt agreements: The fair values for these instruments were estimated based on the rate at which a similar credit facility would have currently priced.

• Loan participations sold: The fair value of these instruments were estimated based on the value of the related loan receivable asset.

• Convertible notes, net: The convertible notes are actively traded and their fair values were obtained using quoted market prices for these instruments.

Income Taxes

Our financial results generally do not reflect provisions for current or deferred income taxes on our REIT taxable income. We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries. If we were to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and penalties. Refer to Note 12 for additional information.

Stock-Based Compensation

Our stock-based compensation consists of awards issued to our Manager and certain of its employees that vest over the life of the awards as well as deferred stock units issued to certain members of our Board of Directors. Stock-based compensation expense is recognized for these awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A common stock. Refer to Note 13 for additional information.

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Notes to Consolidated Financial Statements (continued)

(Unaudited)

Earnings per Share

Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by the weighted-average number of shares of our class A common stock, including restricted class A common stock and deferred stock units outstanding during the period. Our restricted class A common stock is considered a participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or losses.

Diluted earnings per share, or Diluted EPS, is determined using the treasury stock method, and is based on the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by the weighted-average number of shares of our class A common stock, including restricted class A common stock and deferred stock units. Refer to Note 10 for additional discussion of earnings per share.

Foreign Currency

In the normal course of business, we enter into transactions not denominated in United States, or U.S., dollars. Foreign exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statements of operations. In addition, we consolidate entities that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains, and losses are translated at the average exchange rate over the applicable period. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated subsidiaries are recorded in other comprehensive income.

Underwriting Commissions and Offering Costs

Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common stock offering are expensed when incurred.

Recent Accounting Pronouncements

In August 2016, the FASB issued ASU 2016-15 “Statement of Cash Flows (Topic 230),” or ASU 2016-15. ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance addresses the classification of various transactions including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, distributions received from equity method investments, beneficial interests in securitization transactions, and others. We adopted ASU 2016-15 in the third quarter of 2016 and its adoption did not have a material impact on our consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326),” or ASU 2016-13. ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace the “incurred loss” model under existing guidance with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the impact ASU 2016-13 will have on our consolidated financial statements.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting (Topic 718),” or ASU 2016-09. ASU 2016-09 requires all income tax effects of share-based payment awards to be recognized in the income statement relating to the period in which the awards vest or are settled. ASU 2016-09 also allows an employer to repurchase more of an employee’s shares for tax withholding purposes than is permitted under current guidance without triggering liability accounting. Finally, ASU 2016-09 allows a policy election to account for employee forfeitures as they occur. We adopted ASU 2016-09 in the second quarter of 2016 and its adoption did not have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships,” or ASU 2016-05. ASU 2016-05 clarifies that the novation of a derivative contract in a hedge accounting relationship does not, in and of itself, require de-designation of that hedge accounting relationship. Hedge accounting relationships can continue as long as all of the other hedge accounting criteria are met, including the expectation that the hedge will be highly effective when the creditworthiness of the new counterparty to the derivative contract is considered. We adopted ASU 2016-05 in the third quarter of 2016 and its adoption did not have a material impact on our consolidated financial statements, however ASU 2016-05 may allow us to novate derivative contracts in the future without having to de-designate the hedge accounting relationship.

In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” or ASU 2014-15. ASU 2014-15 introduces an explicit requirement for management to assess and provide certain disclosures if there is substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 is effective for the annual period ending after December 15, 2016. We do not anticipate that the adoption of ASU 2014-15 will have a material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” or ASU 2014-09. ASU 2014-09 broadly amends the accounting guidance for revenue recognition. ASU 2014-09 is effective for the first interim or annual period beginning after December 15, 2017, and is to be applied retrospectively. We do not anticipate that the adoption of ASU 2014-09 will have a material impact on our consolidated financial statements.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

3. LOANS RECEIVABLE

The following table details overall statistics for our loans receivable portfolio ($ in thousands):

	September 30, 2016			December 31, 2015
Number of loans		106			125
Principal balance	$	8,381,679		$	9,108,361
Net book value	$	8,347,712		$	9,077,007
Unfunded loan commitments(1)	$	929,030		$	700,658
Weighted-average cash coupon(2)		4.85	%		4.84	%
Weighted-average all-in yield(2)		5.22	%		5.18	%
Weighted-average maximum maturity (years)(3)		3.2			3.1

(1) Unfunded commitments will primarily be funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments will be funded over the term of each loan, subject in certain cases to an expiration date.

(2) As of September 30, 2016, our floating rate loans were indexed to various benchmark rates, with 85% of floating rate loans indexed to USD LIBOR. In addition, $277.3 million of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 1.13%, as of September 30, 2016. As of December 31, 2015, our floating rate loans were indexed to various benchmark rates, with 84% of floating rate loans indexed to USD LIBOR. In addition, $147.9 million of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 1.80%, as of December 31, 2015. In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs, purchase discounts, and accrual of both extension and exit fees. Cash coupon and all-in yield assume applicable floating benchmark rate for weighted-average calculation.

(3) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of September 30, 2016, 66% of our loans were subject to yield maintenance or other prepayment restrictions and 34% were open to repayment by the borrower without penalty. As of December 31, 2015, 64% of our loans were subject to yield maintenance or other prepayment restrictions and 36% were open to repayment by the borrower without penalty.

Activity relating to our loans receivable portfolio was as follows ($ in thousands):

	Principal Balance			Deferred Fees / Other Items(1)			Net Book Value
December 31, 2015	$	9,108,361		$	(31,354)		$	9,077,007
Loan fundings		2,300,636			—			2,300,636
Loan repayments and sales		(2,942,705	)		—			(2,942,705	)
Unrealized (loss) gain on foreign currency translation		(84,613	)		1,181			(83,432	)
Deferred fees and other items(1)		—			(35,388	)		(35,388	)
Amortization of fees and other items(1)		—			31,594			31,594
September 30, 2016	$	8,381,679		$	(33,967	)	$	8,347,712

(1) Other items primarily consist of purchase discounts or premiums, exit fees, and deferred origination expenses.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio ($ in thousands):

September 30, 2016
Property Type	Number of Loans		Net Book Value		Total Loan Exposure(1)		Percentage of Portfolio
Office		55	$	4,540,394	$	4,610,800		50	%
Hotel		17		1,761,751		1,832,501		19
Retail		10		823,184		1,215,822		13
Multifamily		8		586,910		588,809		6
Condominium		2		85,436		315,816		3
Manufactured housing		9		297,726		297,847		3
Other		5		252,311		575,948		6
		106	$	8,347,712	$	9,437,543		100	%
Geographic Location	Number of Loans		Net Book Value		Total Loan Exposure(1)		Percentage of Portfolio
United States
Northeast		25	$	2,449,223	$	2,461,548		25	%
Southeast		20		1,343,942		1,739,465		18
West		21		1,496,295		1,733,491		18
Midwest		6		618,939		621,012		7
Southwest		9		444,381		443,653		5
Northwest		4		245,934		293,039		3
Subtotal		85		6,598,714		7,292,208		76
International
United Kingdom		9		930,677		1,276,234		14
Canada		8		477,466		474,182		5
Germany		1		218,855		271,922		3
Spain		1		68,572		69,198		1
Netherlands		2		53,428		53,799		1
Subtotal		21		1,748,998		2,145,335		24
Total		106	$	8,347,712	$	9,437,543		100	%

(1) 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. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.1 billion of such non-consolidated senior interests as of September 30, 2016.

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Notes to Consolidated Financial Statements (continued)

(Unaudited)

December 31, 2015
Property Type	Number of Loans		Net Book Value		Total Loan Exposure(1)		Percentage of Portfolio
Office		55	$	4,039,521	$	4,085,007		41	%
Hotel		20		1,903,544		1,986,113		20
Manufactured housing		18		1,361,572		1,359,132		13
Retail		9		684,944		1,031,405		10
Multifamily		11		580,112		582,545		6
Condominium		3		127,434		353,144		3
Other		9		379,880		750,780		7
		125	$	9,077,007	$	10,148,126		100	%
Geographic Location	Number of Loans		Net Book Value		Total Loan Exposure(1)		Percentage of Portfolio
United States
Northeast		25	$	2,260,392	$	2,272,163		22	%
Southeast		27		1,836,766		2,185,609		21
West		22		1,125,238		1,356,301		13
Southwest		15		1,035,839		1,034,732		10
Midwest		5		616,964		617,774		6
Northwest		5		390,307		415,207		4
Subtotal		99		7,265,506		7,881,786		76
International
United Kingdom		10		888,998		1,283,644		13
Canada		11		561,023		558,724		6
Germany		2		235,294		296,424		3
Spain		1		66,661		67,416		1
Netherlands		2		59,525		60,132		1
Subtotal		26		1,811,501		2,266,340		24
Total		125	$	9,077,007	$	10,148,126		100	%

(1) 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. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.0 billion of such non-consolidated senior interests as of December 31, 2015.

Loan Risk Ratings

As further described in Note 2, our Manager evaluates our loan portfolio on a quarterly basis. In conjunction with our quarterly loan portfolio review, our Manager assesses the risk factors of each loan, and assigns a risk rating based on several factors. Factors considered in the assessment include, but are not limited to, risk of loss, current LTV, debt yield, collateral performance, structure, exit plan, and sponsorship. Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2.

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Notes to Consolidated Financial Statements (continued)

(Unaudited)

The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings ($ in thousands):

September 30, 2016						December 31, 2015
Risk Rating	Number of Loans	Net Book Value		Total Loan Exposure(1)		Risk Rating		Number of Loans	Net Book Value		Total Loan Exposure(1)
1	10	$	456,047	$	456,905		1	12	$	919,991	$	925,443
2	53		3,882,247		3,935,513		2	77		5,929,447		6,316,890
3	43		4,009,418		5,045,125		3	35		2,114,531		2,792,510
4	—		—		—		4	1		113,038		113,283
5	—		—		—		5	—		—		—
	106	$	8,347,712	$	9,437,543			125	$	9,077,007	$	10,148,126

(1) 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. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.1 billion and $1.0 billion of such non-consolidated senior interests as of September 30, 2016 and December 31, 2015, respectively.

The weighted-average risk rating of our total loan exposure was 2.5 and 2.2 as of September 30, 2016 and December 31, 2015, respectively. The increase in weighted-average portfolio risk rating was primarily driven by repayments of loans with lower risk ratings and origination of loans with a “3” risk rating, and not rating downgrades in the existing portfolio.

We did not have any impaired loans, nonaccrual loans, or loans in maturity default as of September 30, 2016 or December 31, 2015. During the third quarter of 2015, one of the loans in our portfolio experienced a maturity default as a result of not meeting certain loan covenants. The loan was subsequently modified to include, among other changes: a redetermination of asset release pricing; an additional contribution of capital by the borrower; and an extension of the maturity date to February 28, 2017. During the nine months ended September 30, 2016, three of the assets collateralizing the $113.3 million loan were sold and the loan was partially repaid by $102.6 million, resulting in a net book value of $10.2 million as of September 30, 2016. The loan’s risk rating was upgraded from “4” as of December 31, 2015 to a “2” as of September 30, 2016 as a result of the collateral asset sales and resulting loan repayments, and positive leasing activity at the remaining collateral assets. As of September 30, 2016 and December 31, 2015, the borrower was current with all terms of the loan and we expect to collect all contractual amounts due thereunder.

4. EQUITY INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

As of September 30, 2016, our equity investments in unconsolidated subsidiaries consisted solely of our carried interest in CTOPI, a fund sponsored and managed by an affiliate of our Manager. Activity relating to our equity investments in unconsolidated subsidiaries was as follows ($ in thousands):

	CTOPI Carried Interest
Total as of December 31, 2015	$	9,441
Distributions		(8,167	)
Income allocation(1)		404
Total as of September 30, 2016	$	1,678

(1) In instances where we have not received cash or all appropriate contingencies have not been eliminated, we have deferred the recognition of promote revenue allocated to us from CTOPI in respect of our carried interest in CTOPI, and recorded an offsetting liability as a component of other liabilities on our consolidated balance sheets.

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Notes to Consolidated Financial Statements (continued)

(Unaudited)

Our carried interest in CTOPI entitles us to earn promote revenue 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 partners. As of September 30, 2016, we had been allocated $1.7 million of promote revenue from CTOPI based on a hypothetical liquidation of the fund at its net asset value. Accordingly, we have recognized this allocation as an equity investment in CTOPI on our consolidated balance sheets. Generally, we defer recognition of income from CTOPI until cash is received or earned, pending distribution, and appropriate contingencies have been eliminated. We recognized $2.2 million of promote income from CTOPI in respect of our carried interest and recorded such amounts as income in our consolidated statement of operations during the nine months ended September 30, 2016, compared to $5.7 million during the same period in 2015. This carried interest was either received in cash, or was earned and available in cash at CTOPI pending future distribution as of each respective balance sheet date.

CTOPI Incentive Management Fee Grants

In January 2011, we created a management compensation pool for employees equal to 45% of the CTOPI promote distributions received by us. Approximately 68% of the pool is two-thirds vested as of September 30, 2016, with the remainder contingent on continued employment with an affiliate of our Manager and upon our receipt of promote distributions from CTOPI. The remaining 32% of the pool is fully vested as a result of an acceleration event. During the nine months ended September 30, 2016, we recognized $1.1 million under the CTOPI incentive plan, compared to $2.6 million for the same period in 2015. Such amounts were recognized as a component of general and administrative expenses in our consolidated statement of operations.

5. OTHER ASSETS AND LIABILITIES

The following table details the components of our other assets ($ in thousands):

	September 30,		December 31,
	2016		2015
Loan portfolio payments held by servicer(1)	$	33,050	$	122,666
Accrued interest receivable		31,323		37,161
Real estate debt and equity investments, at fair value(2)		1,441		14,220
Prepaid expenses		325		890
Derivative assets		268		8,657
Prepaid taxes		206		525
Total	$	66,613	$	184,119

(1) Represents loan principal and interest payments held by our third-party loan servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle.

(2) Real estate debt and equity investments consists of assets held by CT Legacy Partners and are measured at fair value.

As of September 30, 2016, our other liabilities primarily included $58.2 million of accrued dividends payable, $22.8 million of secured debt repayments pending servicer remittance as of the balance sheet date, and $13.7 million of accrued management and incentive fees payable to our Manager. As of December 31, 2015, our other liabilities primarily included $58.1 million of accrued dividends payable and $14.4 million of accrued management and incentive fees payable to our Manager.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

6. SECURED DEBT AGREEMENTS

Our secured debt agreements include revolving repurchase facilities, the GE portfolio acquisition facility, asset-specific financings, and a revolving credit agreement. The following table details our secured debt agreements ($ in thousands):

	Secured Debt Agreements
	Borrowings Outstanding
	September 30, 2016			December 31, 2015
Revolving repurchase facilities	$	3,044,434		$	2,495,805
GE portfolio acquisition facility		1,587,822			3,161,291
Asset-specific financings		653,652			474,655
Revolving credit agreement		50,000			—
Total secured debt agreements	$	5,335,908		$	6,131,751
Deferred financing costs(1)		(15,550	)		(15,646	)
Net book value of secured debt	$	5,320,358		$	6,116,105

(1) Costs incurred in connection with our secured debt agreements are recorded on our consolidated balance sheet when incurred and recognized as a component of interest expense over the life of each related agreement.

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Notes to Consolidated Financial Statements (continued)

(Unaudited)

Revolving Repurchase Facilities

The following table details our revolving repurchase facilities ($ in thousands):

	September 30, 2016
	Maximum		Collateral		Repurchase Borrowings
Lender	Facility Size(1)		Assets(2)		Potential(3)		Outstanding		Available(3)
Wells Fargo	$	2,000,000	$	1,390,190	$	1,085,153	$	801,271	$	283,882
MetLife		1,000,000		967,359		756,054		756,054		—
Bank of America		750,000		742,081		577,694		577,694		—
JP Morgan(4)		500,000		524,516		403,483		353,630		49,853
Citibank		500,000		623,857		481,572		252,175		229,397
Morgan Stanley(5)		324,200		254,803		200,665		200,665		—
Société Générale(6)		448,880		166,369		131,000		102,945		28,055
	$	5,523,080	$	4,669,175	$	3,635,621	$	3,044,434	$	591,187

	December 31, 2015
	Maximum		Collateral		Repurchase Borrowings
Lender	Facility Size(1)		Assets(2)		Potential(3)		Outstanding		Available(3)
Bank of America	$	750,000	$	840,884	$	665,861	$	618,944	$	46,917
Wells Fargo		1,000,000		879,155		687,200		562,382		124,818
JP Morgan(4)		524,547		589,752		464,723		382,042		82,681
Citibank		500,000		568,032		436,217		344,879		91,338
MetLife		750,000		593,273		462,849		324,587		138,262
Morgan Stanley(5)		370,400		273,280		212,050		209,038		3,012
Société Générale(6)		437,320		67,416		53,933		53,933		—
	$	4,332,267	$	3,811,792	$	2,982,833	$	2,495,805	$	487,028

(1) Maximum facility size represents the largest amount of borrowings available under a given facility once sufficient collateral assets have been approved by the lender and pledged by us.

(2) Represents the principal balance of the collateral assets.

(3) Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each revolving credit facility.

(4) As of September 30, 2016, the JP Morgan maximum facility size was composed of a general $500.0 million facility size, under which U.S. Dollars and British Pound Sterling borrowings are contemplated. As of December 31, 2015, the JP Morgan maximum facility was composed of general $250.0 million facility size plus a general £153.0 million ($226.7 million) facility size provided under a related agreement that contemplated U.S. Dollars and British Pound Sterling borrowings, and additional capacity of ₤32.3 million ($47.8 million) on the ₤153.0 million facility.

(5) The Morgan Stanley maximum facility size represents a £250.0 million facility size that was translated to $324.2 million as of September 30, 2016, and $370.4 million as of December 31, 2015.

(6) The Société Générale maximum facility size represents a €400.0 million facility size that was translated to $448.9 million as of September 30, 2016, and $437.3 million as of December 31, 2015.

The weighted-average outstanding balance of our revolving repurchase facilities was $2.9 billion for the nine months ended September 30, 2016. As of September 30, 2016, we had aggregate borrowings of $3.0 billion outstanding under our revolving repurchase facilities, with a weighted-average cash coupon of LIBOR plus 1.82% per annum, a weighted-average all-in cost of credit, including associated fees and expenses, of LIBOR plus 2.01% per annum, and a weighted-average advance rate of 79.1%. As of September 30, 2016, outstanding borrowings under these facilities had a weighted-average maturity, excluding extension options and term-out provisions, of 1.4 years.

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Notes to Consolidated Financial Statements (continued)

(Unaudited)

The weighted-average outstanding balance of our revolving repurchase facilities was $2.5 billion for the nine months ended December 31, 2015. As of December 31, 2015, we had aggregated borrowings of $2.5 billion outstanding under our revolving repurchase facilities, with a weighted-average cash coupon of LIBOR plus 1.83% per annum, a weighted-average all-in cost of credit, including associated fees and expenses, of LIBOR plus 2.05% per annum, and a weighted-average advance rate of 78.8%. As of December 31, 2015, outstanding borrowings under these facilities had a weighted-average maturity, excluding extension options and term-out provisions, of 1.3 years.

Borrowings under each facility are subject to the initial approval of eligible collateral loans by the lender and the maximum advance rate and pricing rate of individual advances are determined with reference to the attributes of the respective collateral loan.

The following table outlines the key terms of our revolving repurchase facilities as of September 30, 2016:

Lender	Currency	Rate(1)	Guarantee(2)	Advance Rate(3)	Margin Call(4)	Term/Maturity
Wells Fargo	$	L+1.77%	25%	79.6%	Collateral marks only	Term matched(5)
MetLife	$	L+1.84%	50%	78.8%	Collateral marks only	April 22, 2022(6)
Bank of America	$	L+1.67%	50%	79.3%	Collateral marks only	May 21, 2021(7)
JP Morgan	$ / £	L+1.84%	50%	78.8%	Collateral marks only	January 7, 2019
Citibank	$	L+1.85%	25%	78.3%	Collateral marks only	Term matched(5)
Morgan Stanley	£  / €	L+2.35%	25%	78.8%	Collateral marks only	March 1, 2019
Société Générale	£  / €	L+1.71%	25%	80.0%	Collateral marks only	Term matched(5)

(1) Represents weighted-average cash coupon based on borrowings outstanding. In instances where our borrowings are denominated in currencies other than the U.S. Dollar, interest accrues at a rate equivalent to a margin plus a base rate other than 1-month USD LIBOR, such as 3-month GBP LIBOR, 3-month EURIBOR, or 3-month CDOR.

(2) Other than amounts guaranteed based on specific collateral asset types, borrowings under our revolving repurchase facilities are non-recourse to us.

(3) Represents weighted-average advance rate based on the outstanding principal balance of the collateral assets pledged.

(4) Margin call provisions under our revolving repurchase facilities do not permit valuation adjustments based on capital markets events, and are limited to collateral-specific credit marks.

(5) These revolving repurchase facilities have various availability periods during which new advances can be made and which are generally subject to each lender’s discretion. Maturity dates for advances outstanding are tied to the term of each respective collateral asset.

(6) Includes five one-year extension options which may be exercised at our sole discretion.

(7) Includes two one-year extension options which may be exercised at our sole discretion.

GE Portfolio Acquisition Facility

During the second quarter of 2015, concurrently with our acquisition of the GE portfolio, we entered into an agreement with Wells Fargo to provide us with secured financing for the acquired portfolio. During the second quarter of 2016, we increased the facility size by $125.0 million. As of September 30, 2016, this facility provided for $1.8 billion of financing, of which $1.6 billion was outstanding and an additional $200.5 million was available to finance future loan fundings in the GE portfolio. The GE portfolio acquisition facility is non-revolving and consists of a single master repurchase agreement providing for both (i) asset-specific borrowings for each collateral asset as well as (ii) a sequential pay advance feature.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

Asset-Specific Borrowings

The asset-specific borrowings under the GE portfolio acquisition facility were advanced at a weighted-average rate of 80% of our purchase price of the collateral assets and will be repaid pro rata from collateral asset repayment proceeds. The asset-specific borrowings are currency matched to the collateral assets and accrue interest at a rate equal to the sum of (i) the applicable base rate plus (ii) a margin of 1.75%, which will increase to 1.80% and 1.85% in year four and year five, respectively. As of September 30, 2016, those borrowings were denominated in U.S. Dollars, Canadian Dollars, British Pounds Sterling, and Euros. The asset-specific borrowings are term matched to the underlying collateral assets with an outside maturity date of May 20, 2020, which may be extended pursuant to two one-year extension options. We guarantee obligations under the GE portfolio acquisition facility in an amount equal to the greater of (i) 25% of outstanding asset-specific borrowings, and (ii) $250.0 million. We had outstanding asset-specific borrowings of $1.6 billion and $3.1 billion under the GE portfolio acquisition facility as of September 30, 2016 and December 31, 2015, respectively.

Sequential Pay Advance

The GE portfolio acquisition facility also included a sequential pay advance feature that provided for $237.2 million of borrowings, representing an additional 5% advance against each collateral asset pledged under the facility. As of September 30, 2016, the sequential pay advance borrowings under the GE portfolio acquisition facility had been fully repaid. As of December 31, 2015, we had outstanding sequential pay advance borrowings of $40.7 million. Borrowings under the sequential pay advance accrued interest at a rate equal to the sum of (i) 30-day LIBOR plus (ii) a margin of 3.10%. The sequential pay advance was denominated in U.S. Dollars and was repaid from collateral loan principal repayments, after repayment of the related asset-specific borrowing. The sequential pay advances each had a maturity date that was one year from the date of funding, and we had guaranteed 100% of outstanding borrowings of the sequential pay advance.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

Asset-Specific Financings

The following table details statistics for our asset-specific financings ($ in thousands):

	September 30, 2016
Lender	Count		Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)		Guarantee(2)		Wtd. Avg. Term
JP Morgan(3)
Collateral assets		1		$    280,415		$    278,963		L+3.88%		n/a		Jan. 2020
Financing provided		1		233,679		233,541		L+1.89%		$116,839		Jan. 2020
Citibank(3)
Collateral assets		2		201,270		201,135		L+4.45%		n/a		Nov. 2020
Financing provided		2		158,652		158,605		L+2.48%		39,663		Nov. 2020
Deutsche Bank
Collateral assets		1		180,740		178,107		L+5.17%		n/a		Aug. 2021
Financing provided		1		135,075		133,599		L+3.00%		67,538		Aug. 2021
Bank of the Ozarks
Collateral assets		2		108,423		105,630		L+6.20%		n/a		Feb. 2020
Financing provided		2		81,907		80,603		L+3.59%		—		Feb. 2020
Wells Fargo
Collateral assets		1		63,341		62,955		L+6.05%		n/a		Dec. 2019
Financing provided		1		44,339		44,067		L+3.20%		8,868		Dec. 2019
Total
Collateral assets		7		$    834,189		$    826,790		L+4.76%		n/a
Financing provided		7		$    653,652		$    650,415		L+2.57%		$232,908

(1) These floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs.

(2) Other than amounts guaranteed on an asset-by-asset basis, borrowings under our asset-specific financings are non-recourse to us.

(3) Borrowings under these asset specific financings are cross collateralized with the related revolving repurchase facility with the same lender.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

	December 31, 2015
Lender	Count		Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)			Guarantee(2)		Wtd. Avg. Term
Wells Fargo(3)
Collateral assets		3	$	319,897	$	318,693		L+4.92	%		n/a		Jun. 2019
Financing provided		3		234,850		234,115		L+2.37	%	$	42,627		Jun. 2019
JP Morgan(3)
Collateral assets		1		274,878		272,632		L+3.88	%		n/a		Jan. 2020
Financing provided		1		214,491		214,391		L+1.94	%		53,623		Jan. 2020
Citibank(3)
Collateral assets		1		36,749		36,514		L+4.42	%		n/a		Oct. 2018
Financing provided		1		25,314		25,293		L+2.08	%		6,329		Oct. 2018
Total
Collateral assets		5	$	631,524	$	627,839		L+4.44	%		n/a
Financing provided		5	$	474,655	$	473,799		L+2.16	%	$	102,579

(1) These floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs.

(2) Other than amounts guaranteed on an asset-by-asset basis, borrowings under our asset-specific financings are non-recourse to us.

(3) Borrowings under these asset specific financings are cross collateralized with the related revolving repurchase facility with the same lender.

The weighted-average outstanding balance of our asset-specific financings was $557.9 million for the nine months ended September 30, 2016 and $574.3 million for the nine months ended December 31, 2015.

Revolving Credit Agreement

During the second quarter of 2016, we entered into a $125.0 million full recourse secured revolving credit agreement with Barclays that is designed to finance first mortgage originations for up to six months as a bridge to term financing or syndication. Advances under the agreement are subject to availability under a specified borrowing base and accrue interest at a per annum pricing rate equal to the sum of (i) an applicable base rate or Eurodollar rate and (ii) an applicable margin, in each case, dependent on the applicable type of loan collateral. The initial maturity date of the facility is April 4, 2018 and is subject to two one-year extension options, exercisable at our option.

During the three months ended September 30, 2016, the weighted-average outstanding borrowings under the revolving credit agreement were $24.5 million, and we recorded interest expense of $421,000, including $127,000 of amortization of deferred fees and expenses. During the nine months ended September 30, 2016, the weighted-average outstanding borrowings under the revolving credit agreement were $29.7 million and we recorded interest expense of $915,000, including $248,000 of amortization of deferred fees and expenses. As of September 30, 2016 we had $50.0 million outstanding borrowings under the agreement.

Debt Covenants

Each of the guarantees related to our secured debt agreements contain the following uniform financial covenants: (i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to fixed charges, as defined in the agreements, shall be not less than 1.4 to 1.0; (ii) our tangible net worth, as defined in the agreements, shall not be less than $1.9 billion as of each measurement date plus 75% of the net cash proceeds of future equity issuances subsequent to September 30, 2016; (iii) cash liquidity shall not be less than the greater of (x) $10.0 million or (y) 5% of our recourse indebtedness; and (iv) our indebtedness shall not exceed 83.33% of our total assets. As of September 30, 2016 and December 31, 2015, we were in compliance with these covenants.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

7. LOAN PARTICIPATIONS SOLD

The financing of a loan by the non-recourse sale of a senior interest in the loan through a participation agreement generally does not qualify as a sale under GAAP. Therefore, in the instance of such sales, we present the whole loan as an asset and the loan participation sold as a liability on our consolidated balance sheet until the loan is repaid. The obligation to pay principal and interest on these liabilities is generally based on the performance of the related loan obligation. The gross presentation of loan participations sold does not impact stockholders’ equity or net income.

The following table details statistics for our loan participations sold ($ in thousands):

	September 30, 2016
Loan Participations Sold	Count	Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)			Guarantee(2)		Wtd. Avg. Term
Total loan	2	$	495,912	$	492,133		L+4.51	%		n/a	Sep. 2019
Senior participation(3)(4)	2		411,427		409,654		L+2.71	%	$	31,123	Sep. 2019
	December 31, 2015
Loan Participations Sold	Count	Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)			Guarantee(2)		Wtd. Avg. Term
Total loan	3	$	608,554	$	604,321		L+4.15	%		n/a	Nov. 2018
Senior participation(3)(4)	3		498,992		497,032		L+2.49	%	$	35,558	Nov. 2018

(1) Our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred fees / financing costs.

(2) Other than one instance where we entered into a related guarantee agreement for £24.0 million ($31.1 million as of September 30, 2016), our loan participations sold are non-recourse to us.

(3) During the three and nine months ended September 30, 2016, we recorded $3.4 million and $10.7 million, respectively, of interest expense related to our loan participations sold, of which $3.2 million and $10.3 million was paid in cash. During the three and nine months ended September 30, 2015, we recorded $5.2 million and $14.4 million, respectively, of interest expense related to our loan participations sold, of which $4.5 million and $13.2 million was paid in cash.

(4) The difference between principal balance and book value of loan participations sold is due to deferred financing costs of $1.8 million and $2.0 million as of September 30, 2016 and December 31, 2015, respectively.

8. CONVERTIBLE NOTES, NET

In November 2013, we issued $172.5 million of 5.25% convertible senior notes due on December 1, 2018, or Convertible Notes. The Convertible Notes’ issuance costs are amortized through interest expense over the life of the Convertible Notes using the effective interest method. Including this amortization, our all-in cost of the Convertible Notes is 5.87% per annum.

The Convertible Notes are convertible at the holders’ option into shares of our class A common stock, only under specific circumstances prior to the close of business on August 31, 2018, at the applicable conversion rate in effect on the conversion date. Thereafter, the Convertible Notes are convertible at the option of the holder at any time until the second scheduled trading day immediately preceding the maturity date. The Convertible Notes were not convertible as of September 30, 2016. The conversion rate was initially set to equal 34.8943 shares of class A common stock per $1,000 principal amount of Convertible Notes, which was equivalent to an initial conversion price of $28.66 per share of class A common stock, subject to adjustment upon the occurrence of certain events. As a result of exceeding the cumulative dividend threshold as defined in the Convertible Notes Supplemental Indenture, the conversion rate was adjusted on September 28, 2016 to 35.7236 shares of Class A common stock per $1,000 principal amount of Convertible Notes, which is equivalent to a conversion price of $27.99 per share of class A common stock. We may not redeem the Convertible Notes prior to maturity. The average share price of our Class A common stock of $28.95 during the three months ended September 30, 2016 was greater than the per share conversion price of the Convertible Notes. We have the intent and ability to settle the Convertible Notes in cash and, as a result, the Convertible Notes did not have any impact on our diluted earnings per share.

25

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

Upon issuance of the Convertible Notes, we recorded a $9.1 million discount based on the implied value of the conversion option and an assumed effective interest rate of 6.50%, as well as $4.1 million of initial issuance costs. Including the amortization of this discount and the issuance costs, our total cost of the Convertible Notes is 7.16% per annum. During the three months ended September 30, 2016, we incurred total interest on our convertible notes of $3.0 million, of which $2.3 million related to cash coupon and $691,000 related to the amortization of discount and certain issuance costs. During the nine months ended September 30, 2016, we incurred total interest on our convertible notes of $8.8 million, of which $6.8 million related to cash coupon and $2.0 million related to the amortization of discount and certain issuance costs. During the three months ended September 30, 2015, we incurred total interest on our convertible notes of $2.9 million, of which $2.3 million related to cash coupon and $649,000 related to the amortization of discount and certain issuance costs. During the nine months ended September 30, 2015, we incurred total interest on our convertible notes of $8.7 million, of which $6.8 million related to cash coupon and $1.9 million related to the amortization of discount and certain issuance costs.

As of September 30, 2016, the Convertible Notes were carried on our consolidated balance sheet at $166.1 million, net of an unamortized discount of $6.2 million and deferred financing costs of $231,000. As of December 31, 2015, the Convertible Notes were carried on our consolidated balance sheet at $164.0 million, net of an unamortized discount of $8.2 million and deferred financing costs of $305,000. Accrued interest payable for the Convertible Notes was $3.0 million and $755,000 as of September 30, 2016 and December 31, 2015, respectively. Refer to Note 2 for additional discussion of our accounting policies for the Convertible Notes.

9. DERIVATIVE FINANCIAL INSTRUMENTS

The sole objective of our use of derivative financial instruments is to minimize the risks and/or costs associated with our investments and/or financing transactions. These derivatives may or may not qualify as net investment, cash flow, or fair value hedges under the hedge accounting requirements of ASC 815 – “Derivatives and Hedging.” Derivatives not designated as hedges are not speculative and are used to manage our exposure to interest rate movements and other identified risks. For more information on the accounting for designated and non-designated hedges, refer to Note 2.

The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these contractual arrangements do not perform as agreed. To mitigate this risk, we only enter into derivative financial instruments with counterparties that have appropriate credit ratings and are major financial institutions with which we and our affiliates may also have other financial relationships. We do not anticipate that any of the counterparties will fail to meet their obligations.

Net Investment Hedges of Foreign Currency Risk

Certain of our international investments expose us to fluctuations in foreign interest rates and currency exchange rates. These fluctuations may impact the value of our cash receipts and payments in terms of our functional currency, the U.S. Dollar. We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S. Dollar.

The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amount in thousands):

September 30, 2016				December 31, 2015
Foreign Currency Derivatives	Number of Instruments	Notional Amount		Foreign Currency Derivatives	Number of Instruments	Notional Amount
Sell CAD Forward	1	C$	119,600	Sell CAD Forward	2	C$	154,900
Sell GBP Forward	1	£	117,900	Sell GBP Forward	2	£	90,400
Sell EUR Forward	1	€	44,900	Sell EUR Forward	1	€	49,000

Cash Flow Hedges of Interest Rate Risk

Certain of our financing transactions expose us to a fixed versus floating rate mismatch between our assets and liabilities. We use derivative financial instruments, which include interest rate caps and swaps, and may also include interest rate options, floors, and other interest rate derivative contracts, to hedge interest rate risk associated with our borrowings where there is potential for an index mismatch.

26

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

The following tables detail our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (notional amount in thousands):

September 30, 2016
Interest Rate Derivatives	Number of Instruments	Notional Amount		Rate/ Strike	Index	Wtd.-Avg. Maturity (Years)
Interest Rate Swaps	2	C$	17,273	1.0%	CDOR	3.9
Interest Rate Caps	25	$	1,086,261	2.0%	USD LIBOR	0.6
Interest Rate Caps	6	C$	439,320	2.0%	CDOR	0.6
Interest Rate Caps	1	£	15,142	2.0%	GBP LIBOR	0.6
December 31, 2015
Interest Rate Derivatives	Number of Instruments	Notional Amount		Strike	Index	Wtd.-Avg. Maturity (Years)
Interest Rate Caps	26	$	1,097,632	2%	USD LIBOR	1.3
Interest Rate Caps	7	C$	483,286	2%	CDOR	1.2
Interest Rate Caps	1	€	152,710	2%	EURIBOR	1.0
Interest Rate Caps	1	£	15,142	2%	GBP LIBOR	1.3

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our floating rate debt. During the twelve months following September 30, 2016, we estimate that an additional $1.4 million will be reclassified from accumulated other comprehensive income as an increase to interest expense. Additionally, during the three and nine months ended September 30, 2016 and 2015, we did not record any hedge ineffectiveness in our consolidated statements of operations.

Non-designated Hedges

During the three and nine months ended September 30, 2016, we recorded unrealized losses of $528,000 and $2.2 million, respectively, related to non-designated hedges that were reported as a component of interest expense in our consolidated financial statements. We recorded losses of $748,000 and $759,000 during the three and nine months ended September 30, 2015, respectively.

The following table summarizes our non-designated hedges (notional amount in thousands):

September 30, 2016				December 31, 2015
Non-designated Hedges	Number of Instruments	Notional Amount		Non-designated Hedges	Number of Instruments	Notional Amount
Interest Rate Caps	2	€	152,710	Interest Rate Caps	4	C$	67,303
Interest Rate Caps	3	C$	52,630	Interest Rate Caps	1	$	13,387
Buy GBP / Sell EUR	1	€	12,857	Buy GBP / Sell EUR Forward	1	€	12,857
Buy USD / Sell CAD	1	C$	7,000	Buy GBP / Sell USD Forward	1	£	10,400
Buy CAD / Sell USD	1	C$	7,000	Buy USD / Sell GBP Forward	1	£	10,400
				Buy CAD / Sell USD Forward	1	C$	1,000
				Buy USD / Sell CAD Forward	1	C$	1,000

27

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

Valuation of Derivative Instruments

The following table summarizes the fair value of our derivative financial instruments ($ in thousands):

	Fair Value of Derivatives in an Asset Position(1) as of				Fair Value of Derivatives in a Liability Position(2) as of
	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	251	$	7,999	$	895	$	511
Interest rate derivatives		—		238		25		—
Total derivatives designated as hedging instruments	$	251	$	8,237	$	920	$	511
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	17	$	419	$	221	$	937
Interest rate derivatives		—		1		—		—
Total derivatives not designated as hedging instruments	$	17	$	420	$	221	$	937
Total Derivatives	$	268	$	8,657	$	1,141	$	1,448

(1) Included in other assets in our consolidated balance sheets.

(2) Included in other liabilities in our consolidated balance sheets.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

The following table presents the effect of our derivative financial instruments on our consolidated statements of operations ($ in thousands):

	Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)					Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion)
Derivatives in Hedging Relationships	Three Months Ended September 30, 2016		Nine Months Ended September 30, 2016					Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
Net Investment
Foreign exchange contracts(1)	$	5,627	$	11,748			Interest Expense	$	—		$	—
Cash Flow Hedges
Interest rate derivatives		14		(274	)		Interest Expense		(241	)		(367	)
Total	$	5,641	$	11,474				$	(241	)	$	(367	)

(1) During the three and nine months ended September 30, 2016, we received net cash settlements of $19.2 million and $17.4 million, respectively, on our foreign currency forward contracts, compared to receiving $10.8 million and $13.7 million during the same periods in 2015. Those amounts are included as a component of accumulated other comprehensive loss on our consolidated balance sheets.

Credit-Risk Related Contingent Features

We have entered into agreements with certain of our derivative counterparties that contain provisions where if we were to default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, we may also be declared in default on our derivative obligations. In addition, certain of our agreements with our derivative counterparties require that we post collateral to secure net liability positions. As of September 30, 2016, we were in a net asset position of $48,000 with one of our derivative counterparties and a net liability position of $921,000 with another of our derivative counterparties. While we were in a net liability position with one counterparty as of September 30, 2016, we were not required to post collateral as our liability position was below the threshold defined in our agreement with this counterparty.

10. EQUITY

Stock and Stock Equivalents

Authorized Capital

As of September 30, 2016, we had the authority to issue up to 300,000,000 shares of stock, consisting of 200,000,000 shares of class A common stock and 100,000,000 shares of preferred stock. Subject to applicable NYSE listing requirements, our board of directors is authorized to cause us to issue additional shares of authorized stock without stockholder approval. In addition, to the extent not issued, currently authorized stock may be reclassified between class A common stock and preferred stock. We did not have any shares of preferred stock issued and outstanding as of September 30, 2016.

Class A Common Stock and Deferred Stock Units

Holders of shares of our class A common stock are entitled to vote on all matters submitted to a vote of stockholders and are entitled to receive such dividends as may be authorized by our board of directors and declared by us, in all cases subject to the rights of the holders of shares of outstanding preferred stock, if any.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

We also issue restricted class A common stock under our stock-based incentive plans. Refer to Note 13 for additional discussion of these long-term incentive plans. In addition to our class A common stock, we also issue deferred stock units to certain members of our board of directors in lieu of cash compensation for services rendered. These deferred stock units are non-voting, but carry the right to receive dividends in the form of additional deferred stock units in an amount equivalent to the cash dividends paid to holders of shares of class A common stock.

The following table details the movement in our outstanding shares of class A common stock, including restricted class A common stock and deferred stock units:

	Nine Months Ended September 30,
Common Stock Outstanding(1)	2016		2015
Beginning balance		93,843,847		58,388,808
Issuance of class A common stock		812		34,780,443
Issuance of restricted class A common stock, net		209,798		162,531
Issuance of deferred stock units		20,850		16,288
Ending balance		94,075,307		93,348,070

(1) Deferred stock units held by members of our board of directors totaled 162,371 and 135,207 as of September 30, 2016 and 2015, respectively.

Dividend Reinvestment and Direct Stock Purchase Plan

On March 25, 2014, we adopted a dividend reinvestment and direct stock purchase plan, under which we registered and reserved for issuance, in the aggregate, 10,000,000 shares of class A common stock. Under the dividend reinvestment component of this plan, our class A common stockholders can designate all or a portion of their cash dividends to be reinvested in additional shares of class A common stock. The direct stock purchase component allows stockholders and new investors, subject to our approval, to purchase shares of class A common stock directly from us. During the three and nine months ended September 30, 2016, we issued 262 shares and 812 shares, respectively, of class A common stock under the dividend reinvestment component of the plan compared to 145 shares and 418 shares for the same periods in 2015. As of September 30, 2016, a total of 9,998,585 shares of class A common stock remained available for issuance under the dividend reinvestment and direct stock purchase plan.

At the Market Stock Offering Program

On May 9, 2014, we entered into equity distribution agreements, or ATM Agreements, pursuant to which we may sell, from time to time, up to an aggregate sales price of $200.0 million of our class A common stock. On July 29, 2016, in connection with filing a new universal shelf registration statement on Form S-3, we entered into amendments to each of the ATM Agreements. Sales of class A common stock made pursuant to the ATM Agreements may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Actual sales will depend on a variety of factors including market conditions, the trading price of our class A common stock, our capital needs, and our determination of the appropriate sources of funding to meet such needs. We did not sell any shares of our class A common stock under the ATM Agreements during the nine months ended September 30, 2016 and 2015. As of September 30, 2016, sales of our class A common stock with an aggregate sales price of $188.6 million remained available for issuance under the ATM Agreements.

Dividends

We generally intend to distribute substantially all of our taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to our stockholders each year to comply with the REIT provisions of the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. Our dividend policy remains subject to revision at the discretion of our board of directors. All distributions will be made at the discretion of our board of directors and will depend upon our taxable income, our financial condition, our maintenance of REIT status, applicable law, and other factors as our board of directors deems relevant.

30

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

On September 13, 2016, we declared a dividend of $0.62 per share, or $58.2 million, that was paid on October 14, 2016 to stockholders of record as of September 30, 2016. The following table details our dividend activity ($ in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Dividends declared per share of common stock	$	0.62	$	0.62	$	1.86	$	1.66
Total dividends declared	$	58,226	$	57,800	$	174,678	$	136,674

Earnings Per Share

We calculate our basic and diluted earnings per share using the two-class method for all periods presented as the unvested shares of our restricted class A common stock qualify as participating securities, as defined by GAAP. These restricted shares have the same rights as our other shares of class A common stock, including participating in any dividends, and therefore have been included in our basic and diluted net income per share calculation. Our Convertible Notes are excluded from dilutive earnings per share as we have the intent and ability to settle these instruments in cash.

The following table sets forth the calculation of basic and diluted net income per share of class A common stock based on the weighted-average of both restricted and unrestricted class A common stock outstanding ($ in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Net income(1)	$	64,794	$	66,888	$	184,921	$	131,564
Weighted-average shares outstanding, basic and diluted		94,071,537		93,357,960		94,067,923		77,752,247
Per share amount, basic and diluted	$	0.69	$	0.72	$	1.97	$	1.69

(1) Represents net income attributable to Blackstone Mortgage Trust, Inc.

Other Balance Sheet Items

Accumulated Other Comprehensive Loss

As of September 30, 2016, total accumulated other comprehensive loss was $46.4 million, primarily representing (i) $83.3 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign currencies and (ii) offsetting $36.9 million realized and unrealized gains related to changes in the fair value of derivative instruments. As of December 31, 2015, total accumulated other comprehensive loss was $32.8 million, primarily representing (i) $57.8 million of cumulative unrealized currency translation adjustment on assets and liabilities denominated in foreign currencies and (ii) an offsetting $25.0 million unrealized gain related to changes in the fair value of derivative instruments.

Non-Controlling Interests

The non-controlling interests included on our consolidated balance sheets represent the equity interests in CT Legacy Partners that are not owned by us. A portion of CT Legacy Partners’ consolidated equity and results of operations are allocated to these non-controlling interests based on their pro rata ownership of CT Legacy Partners. As of September 30, 2016, CT Legacy Partners’ total equity was $1.9 million, of which $786,000 was owned by Blackstone Mortgage Trust, and $1.1 million was allocated to non-controlling interests. As of December 31, 2015, CT Legacy Partners’ total equity was $22.5 million, of which $9.4 million was owned by Blackstone Mortgage Trust, and $13.1 million was allocated to non-controlling interests.

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Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

11. OTHER EXPENSES

Our other expenses consist of the management and incentive fees we pay to our Manager and our general and administrative expenses.

Management and Incentive Fees

Pursuant to our management agreement, our Manager earns a base management fee in an amount equal to 1.50% per annum multiplied by our outstanding equity balance, as defined in the management agreement. In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i) 20% and (ii) the excess of (a) our Core Earnings (as defined in our management agreement) for the previous 12-month period over (b) an amount equal to 7.00% per annum multiplied by our outstanding Equity, provided that our Core Earnings over the prior three-year period is greater than zero. Core Earnings, as defined in our management agreement, is generally equal to our net income (loss) prepared in accordance with GAAP, excluding (i) certain non-cash items (ii) the net income (loss) related to our legacy portfolio and (iii) incentive management fees.

During the three and nine months ended September 30, 2016, we incurred $9.5 million and $28.4 million, respectively, of management fees payable to our Manager, compared to $9.4 million and $22.9 million during the same periods in 2015. In addition, during the three and nine months ended September 30, 2016, we incurred $4.2 million and $14.8 million, respectively, of incentive fees payable to our Manager, compared to $4.5 million and $5.7 million during the same periods in 2015.

As of September 30, 2016 we had accrued management and incentive fees payable to our Manager of $13.7 million, compared to $14.4 million as of December 31, 2015.

General and Administrative Expenses

General and administrative expenses consisted of the following ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Professional services	$	828	$	898	$	2,474	$	2,375
Operating and other costs		305		671		1,695		1,783
GE transaction costs		—		370		—		9,583
Subtotal		1,133		1,939		4,169		13,741
Non-cash and CT Legacy Portfolio compensation expenses
Management incentive awards plan - CTOPI(1)		938		8		1,106		2,605
Management incentive awards plan - CT Legacy Partners(2)		354		89		1,112		2,151
Restricted class A common stock earned		4,855		3,095		14,190		9,601
Director stock-based compensation		94		94		282		281
Subtotal		6,241		3,286		16,690		14,638
Total BXMT expenses		7,374		5,225		20,859		23,154
Expenses of consolidated subsidiaries		40		70		131		276
Total general and administrative expenses	$	7,414	$	5,295	$	20,990	$	28,655

(1) Represents the portion of CTOPI promote revenue accrued under compensation awards. See Note 4 for further discussion.

(2) Represents the accrual of amounts payable under the CT Legacy Partners management incentive awards during the period. See below for discussion of the CT Legacy Partners management incentive awards plan.

32

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

CT Legacy Partners Management Incentive Awards Plan

In conjunction with our March 2011 restructuring, we created an employee pool for up to 6.75% of the distributions paid to the common equity holders of CT Legacy Partners (subject to certain caps and priority distributions). Approximately 50% of the pool was 75% vested as of September 30, 2016, with the remainder contingent on continued employment with an affiliate of our Manager and our receipt of distributions from CT Legacy Partners. Of the remaining 50% of the pool, 27% is fully vested as a result of an acceleration event, and 23% vest only upon our receipt of distributions from CT Legacy Partners. We accrue a liability for the amounts due under these grants based on the value of CT Legacy Partners and the periodic vesting of the awards granted. Accrued payables for these awards were $114,000 as of September 30, 2016 and $1.3 million as of December 31, 2015.

12. INCOME TAXES

We elected to be taxed as a REIT, effective January 1, 2003, under the Internal Revenue Code for U.S. federal income tax purposes. We generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings that we distribute. To the extent that we satisfy this distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws.

Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Internal Revenue Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to the nature of our assets and the sources of our income. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full taxable years. As of September 30, 2016 and December 31, 2015, we were in compliance with all REIT requirements.

During the three and nine months ended September 30, 2016, we recorded an income tax provision of $194,000 and an income tax provision of $281,000, respectively, primarily related to various state and local taxes. During the three and nine months ended September 30, 2015, we recorded an income tax provision of $81,000 and $431,000, respectively. We did not have any deferred tax assets or liabilities as of September 30, 2016 or December 31, 2015.

As a result of our issuance of 25,875,000 shares of class A common stock in May 2013, the availability of our net operating losses, or NOLs, and net capital losses, or NCLs, is generally limited to $2.0 million per annum by change of control provisions promulgated by the Internal Revenue Service with respect to the ownership of Blackstone Mortgage Trust. As of December 31, 2015, we had NOLs of $159.0 million and NCLs of $602,000 available to be carried forward and utilized in current or future periods. If we are unable to utilize our NOLs, they will expire in 2029. If we are unable to utilize our NCLs, they will expire in 2017.

As of September 30, 2016, tax years 2013 through 2015 remain subject to examination by taxing authorities.

13. STOCK-BASED INCENTIVE PLANS

We do not have any employees as we are externally managed by our Manager. However, as of September 30, 2016, our Manager, certain individuals employed by an affiliate of our Manager, and certain members of our board of directors were compensated, in part, through the issuance of stock-based instruments.

We had stock-based incentive awards outstanding under seven benefit plans as of September 30, 2016: (i) our amended and restated 1997 non-employee director stock plan, or 1997 Plan; (ii) our 2007 long-term incentive plan, or 2007 Plan; (iii) our 2011 long-term incentive plan, or 2011 Plan; (iv) our 2013 stock incentive plan, or 2013 Plan; (v) our 2013 manager incentive plan, or 2013 Manager Plan; (vi) our 2016 stock incentive plan, or 2016 Plan; and (vii) our 2016 manager incentive plan, or 2016 Manager Plan. We refer to our 1997 Plan, our 2007 Plan, our 2011 Plan, our 2013 Plan, and our 2013 Manager Plan, collectively, as our Expired Plans and we refer to our 2016 Plan and 2016 Manager Plan, collectively, as our Current Plans.

33

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

Our Expired Plans have expired and no new awards may be issued under them. Under our Current Plans, a maximum of 2,400,000 shares of our class A common stock may be issued to our Manager, our directors and officers, and certain employees of affiliates of our Manager. As of September 30, 2016, there were 2,389,910 shares available under the Current Plans.

The following table details the movement in our outstanding shares of restricted class A common stock and the weighted-average grant date fair value per share:

	Restricted Class A Common Stock			Weighted-Average Grant Date Fair Value Per Share
Balance as of December 31, 2015		1,114,908		$	27.64
Granted		245,225			26.51
Vested		(513,849	)		27.10
Forfeited		(35,427	)		27.49
Balance as of September 30, 2016		810,857		$	27.64

These shares generally vest in quarterly installments over a three-year period, pursuant to the terms of the respective award agreements and the terms of the Current Plans. The 810,857 shares of restricted class A common stock outstanding as of September 30, 2016 will vest as follows: 127,932 shares will vest in 2016; 446,781 shares will vest in 2017; and 236,144 shares will vest in 2018. As of September 30, 2016, total unrecognized compensation cost relating to nonvested share-based compensation arrangements was $23.9 million based on the September 30, 2016 closing price of our class A common stock of $29.45. This cost is expected to be recognized over a weighted average period of 1.0 years from September 30, 2016.

14. FAIR VALUES

Assets and Liabilities Measured at Fair Value

The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands):

	September 30, 2016								December 31, 2015
	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Assets
Derivatives	$	—	$	268	$	—	$	268	$	—	$	8,657	$	—	$	8,657
Other assets(1)	$	—	$	241	$	1,200	$	1,441	$	—	$	1,659	$	12,561	$	14,220
Liabilities
Derivatives	$	—	$	1,141	$	—	$	1,141	$	—	$	1,448	$	—	$	1,448

(1) Other assets include loans, securities, equity investments, and other receivables measured at fair value.

34

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

The following table reconciles the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands):

	Nine Months Ended September 30,
	2016			2015
January 1,	$	12,561		$	47,507
Proceeds from investment realizations		(2,406	)		(57,039	)
Transfers out of level 3		(20,745	)		—
Adjustments to fair value included in earnings
Gain on investments at fair value		11,790			22,228
September 30,	$	1,200		$	12,696

During the second quarter of 2016, $20.7 million of collateralized debt obligations, or CDOs, were transferred out of Level 3 and into Level 1 as a result of a binding agreement to sell the underlying collateral assets of the CDO to an independent third-party. These investments were realized in the third quarter of 2016. Refer to Note 2 for further discussion regarding fair value measurement.

Fair Value of Financial Instruments

As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the statement of financial position, for which it is practicable to estimate that value. The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands):

	September 30, 2016						December 31, 2015
	Carrying		Face		Fair		Carrying		Face		Fair
	Amount		Amount		Value		Amount		Amount		Value
Financial assets
Cash and cash equivalents	$	94,061	$	94,061	$	94,061	$	96,450	$	96,450	$	96,450
Restricted cash		877		877		877		9,556		9,556		9,556
Loans receivable, net		8,347,712		8,381,679		8,392,677		9,077,007		9,108,361		9,121,732
Financial liabilities
Secured debt agreements		5,320,358		5,335,908		5,335,908		6,116,105		6,131,751		6,131,751
Loan participations sold		409,654		411,427		411,427		497,032		498,992		498,992
Convertible notes, net		166,064		172,500		190,181		164,026		172,500		171,344

Estimates of fair value for cash and cash equivalents, restricted cash and convertible notes are measured using observable, quoted market prices, or Level 1 inputs. All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding fair value measurement of certain of our assets and liabilities.

15. TRANSACTIONS WITH RELATED PARTIES

We are managed by our Manager pursuant to a management agreement, the current term of which expires on December 19, 2016, and will be automatically renewed for a one-year term each anniversary thereafter unless earlier terminated.

35

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

As of September 30, 2016, our consolidated balance sheet included $13.7 million of accrued management and incentive fees payable to our Manager. During the three and nine months ended September 30, 2016, we paid $15.8 million and $43.8 million, respectively, of management and incentive fees to our Manager, compared to $8.1 million and $21.0 million during the same periods of 2015. In addition, during the three and nine months ended September 30, 2016, we reimbursed our Manager for $82,000 and $462,000, respectively, of expenses incurred on our behalf. During the nine months ended September 30, 2015, we reimbursed our Manager for $139,000 of expenses incurred on our behalf. We did not reimburse our Manager for any expenses incurred on our behalf during the three months ended September 30, 2015. As of September 30, 2016, our consolidated balance sheet includes $31,000 of preferred distributions payable by CT Legacy Partners to an affiliate of our Manager, compared to $83,000 as of December 31, 2015. During the three and nine months ended September 30, 2016, CT Legacy Partners made aggregate preferred distributions of $146,000 and $491,000, respectively, to such affiliate, compared to $216,000 and $1.1 million during the same periods of 2015.

As of September 30, 2016, our Manager held 391,871 shares of unvested restricted class A common stock, which had an aggregate grant date fair value of $10.9 million. We did not issue any shares of restricted class A common stock to our Manager during the nine months ended September 30, 2016. The shares of restricted class A common stock vest ratably in quarterly installments over three years from the date of issuance. During the three and nine months ended September 30, 2016, we recorded non-cash expense related to shares granted to our Manager of $2.5 million and $7.1 million, respectively, compared to $1.6 million and $4.9 million during the same periods of 2015. Refer to Note 13 for further discussion of our restricted class A common stock.

During the three months ended September 30, 2016, we originated a loan to a borrower who engaged an affiliate of our Manager to act as title insurance agent in connection with the transaction. The borrower paid the title insurance agent a fee of $196,000 for its services. We did not incur any expenses or receive any revenues as a result of this transaction.

On May 8, 2015, a joint venture of CT Legacy Partners, certain affiliates of our Manager, and other non-affiliated parties, which we refer to as the Three-Pack JV, sold a hotel portfolio it owned to an investment vehicle managed by an affiliate of our Manager. We consented to the sale of the hotel portfolio by the Three-Pack JV, which will result in the ultimate liquidation of the Three-Pack JV and distribution of net sale proceeds to CT Legacy Partners in respect of its investment therein. An aggregate of $40.1 million of net sales proceeds has been received to date by CT Legacy Partners, of which $2.4 million was received during the nine months ended September 30, 2016. As a result of the sale transaction, employees of our Manager, including certain of our executive officers, received incentive compensation payments totaling $2.7 million under the CT Legacy Partners Management Incentive Awards Plan, of which $2.5 million was paid during 2015, and the remaining $162,000 was paid during the nine months ended September 30, 2016. See Note 11 for further discussion of the CT Legacy Partners Management Incentive Awards Plan.

During the three and nine months ended September 30, 2016, we incurred $112,000 and $282,000, respectively, of expenses for various administrative and capital market data services to third-party service providers that are affiliates of our Manager, compared to $178,000 and $307,000 during the same periods of 2015.

16. COMMITMENTS AND CONTINGENCIES

Unfunded Commitments Under Loans Receivable

As of September 30, 2016, we had unfunded commitments of $929.0 million related to 58 loans receivable, which amounts will generally be funded to finance lease-related or capital expenditures by our borrowers. These future commitments will expire variously over the next three years.

36

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(Unaudited)

Income Tax Audits of CTIMCO

The State of New York is currently examining the income tax returns for the years ended December 31, 2012 and 2011 of our former subsidiary, CT Investment Management Co., LLC, or CTIMCO. The examination is on-going, and no final adjustments have been made or agreed to. When we sold CTIMCO in December 2012, we provided certain indemnifications related to its operations, and any amounts determined to be owed by CTIMCO would ultimately be paid by us. As of September 30, 2016, there were no reserves recorded for the CTIMCO examination. The Internal Revenue Service, or IRS, separately examined the income tax return of CTIMCO for the year ended December 31, 2012. During the three months ended September 30, 2016, the IRS completed its examination with no adjustments.

Litigation

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of September 30, 2016, we were not involved in any material legal proceedings.

Board of Directors’ Compensation

As of September 30, 2016, of the eight members of our board of directors, our five independent directors are entitled to annual compensation of $125,000 each. The other three board members, including our chairman and our chief executive officer, serve as directors with no compensation. As of September 30, 2016, the annual compensation for our directors was paid 40% in cash and 60% in the form of deferred stock units. In addition, the member of our board of directors that serves as the chairperson of the audit committee of our board of directors receives additional annual cash compensation of $12,000. Compensation to the board of directors is payable in four equal quarterly installments.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us,” or “our” refer to Blackstone Mortgage Trust, Inc. and its subsidiaries unless the context specifically requires otherwise.

The following discussion should be read in conjunction with the unaudited consolidated financial statements and notes thereto appearing elsewhere in this quarterly report on Form 10-Q. In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Our actual results may differ materially from those in this discussion as a result of various factors, including but not limited to those discussed in Item 1A. Risk Factors in our annual report on Form 10-K for the year ended December 31, 2015, Item 1A of our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016, and elsewhere in this quarterly report on Form 10-Q.

Introduction

Blackstone Mortgage Trust is a real estate finance company that originates and purchases senior loans collateralized by properties in North America and Europe. We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of The Blackstone Group L.P., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” We are headquartered in New York City.

We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended. We are organized as a holding company and conduct our business primarily through our various subsidiaries.

I. Key Financial Measures and Indicators

As a real estate finance company, we believe the key financial measures and indicators for our business are earnings per share, dividends declared, Core Earnings, and book value per share. For the three months ended September 30, 2016 we recorded earnings per share of $0.69, declared a dividend of $0.62 per share, and reported $0.71 per share of Core Earnings. In addition, our book value per share as of September 30, 2016 was $26.61. As further described below, Core Earnings is a measure that is not prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. We use Core Earnings to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan activity and operations.

Earnings Per Share and Dividends Declared

The following table sets forth the calculation of basic and diluted net income per share and dividends per share ($ in thousands, except per share data):

	Three Months Ended
	September 30, 2016		June 30, 2016
Net income (1)	$	64,794	$	63,081
Weighted-average shares outstanding, basic and diluted		94,071,537		94,064,423
Net income per share, basic and diluted	$	0.69	$	0.67
Dividends per share	$	0.62	$	0.62

(1) Represents net income attributable to Blackstone Mortgage Trust, Inc.

38

Core Earnings

Core Earnings is a non-GAAP measure, which we define 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 our 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 our Manager, subject to approval by a majority of our independent directors.

We believe that Core Earnings provides meaningful information to consider in addition to our net income and cash flow from operating activities determined in accordance with GAAP. This adjusted measure helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations. Although, according to our management agreement, we calculate the incentive and base management fees due to our Manager using Core Earnings before incentive fees expense, we report Core Earnings after incentive fee expense, as we believe this is a more meaningful presentation of the economic performance of our class A common stock.

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 our GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs. In addition, our 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, our reported Core Earnings may not be comparable to the Core Earnings reported by other companies.

The following table provides a reconciliation of Core Earnings to GAAP net income ($ in thousands, except per share data):

	Three Months Ended
	September 30, 2016			June 30, 2016
Net income(1)	$	64,794		$	63,081
CT Legacy Portfolio net income		(1,805	)		(3,825	)
Non-cash compensation expense		4,949			4,836
GE purchase discount accretion adjustment(2)		(929	)		(1,247	)
Other items		(65	)		278
Core Earnings	$	66,944		$	63,123
Weighted-average shares outstanding, basic and diluted		94,071,537			94,064,423
Core Earnings per share, basic and diluted	$	0.71		$	0.67

(1) Represents net income attributable to Blackstone Mortgage Trust.

(2) 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.

Book Value Per Share

The following table calculates our book value per share ($ in thousands, except per share data):

	September 30, 2016		June 30, 2016
Stockholders’ equity	$	2,503,694	$	2,496,417
Shares
Class A common stock		93,912,936		93,912,674
Deferred stock units		162,371		155,676
Total outstanding		94,075,307		94,068,350
Book value per share	$	26.61	$	26.54

39

II. Loan Portfolio

During the quarter ended September 30, 2016, we originated $956.6 million of loans. Loan fundings during the quarter totaled $925.8 million, including $27.1 million of non-consolidated senior interests. Loan repayments and sales during the quarter totaled $1.6 billion, which included the repayment of an aggregate $865.1 million from four related loans to a single sponsor, contributing to decreases in the manufactured housing and fixed rate loan components of our overall portfolio. We generated interest income of $128.2 million and incurred interest expense of $45.4 million during the quarter, which resulted in $82.8 million of net interest income during the three months ended September 30, 2016.

Portfolio Overview

The following table details our loan origination activity ($ in thousands):

	Three Months Ended			Nine Months Ended
	September 30, 2016			September 30, 2016
Loan originations(1)	$	956,583		$	2,677,128
Loan fundings(2)	$	925,840		$	2,392,739
Loan repayments and sales(3)		(1,621,090	)		(2,962,904	)
Total net fundings	$	(695,250	)	$	(570,165	)

(1) Includes new loan originations and additional commitments made under existing loans.

(2) Loan fundings during the three months ended September 30, 2016 include $27.1 million of additional fundings under related non-consolidated senior interests, and loan fundings during the nine months ended September 30, 2016 include $92.1 million of additional fundings under related non-consolidated senior interests.

(3) Loan repayments and sales during the three and nine months ended September 30, 2016 include $20.2 million of additional repayments under related non-consolidated senior interests.

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The following table details overall statistics for our loan portfolio as of September 30, 2016 ($ in thousands):

				Total Loan Exposure(1)
	Balance Sheet Portfolio			Total Loan Portfolio			Floating Rate Loans			Fixed Rate Loans
Number of loans		106			106			89			17
Principal balance	$	8,381,679		$	9,437,543		$	8,147,417		$	1,290,126
Net book value	$	8,347,712		$	9,398,383		$	8,107,348		$	1,291,035
Unfunded loan commitments(2)	$	929,030		$	1,061,572		$	1,061,572		$	—
Weighted-average cash coupon(3)		4.85	%		4.66	%		L+4.03	%		5.07	%
Weighted-average all-in yield(3)		5.22	%		5.09	%		L+4.44	%		5.62	%
Weighted-average maximum maturity (years)(4)		3.2			3.3			3.3			3.5
Loan to value (LTV)(5)		61.0	%		60.5	%		59.8	%		64.5	%

(1) 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. Total loan exposure encompasses the entire loan we originated and financed, including $1.1 billion of such non-consolidated senior interests.

(2) Unfunded commitments will primarily be funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments will be funded over the term of each loan, subject in certain cases to an expiration date.

(3) As of September 30, 2016, our floating rate loans were indexed to various benchmark rates, with 86% of floating rate loans indexed to USD LIBOR based on total loan exposure. In addition, $277.3 million of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 1.13%, as of September 30, 2016. In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs, and accrual of both extension and exit fees. Coupon and all-in yield for the total portfolio assume applicable floating benchmark rate for weighted-average calculation.

(4) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of September 30, 2016, 70% of our loans were subject to yield maintenance or other prepayment restrictions and 30% were open to repayment by the borrower without penalty, based on total loan exposure.

(5) Based on LTV as of the dates loans were originated or acquired by us.

The charts below detail the geographic distribution and types of properties securing these loans, as of September 30, 2016:

Refer to section VI of this Item 2 for details of our loan portfolio, on a loan-by-loan basis.

Asset Management

We actively manage the investments in our loan portfolio and exercise the rights afforded to us as a lender, including collateral level budget approvals, lease approvals, loan covenant enforcement, escrow/reserve management/collection, collateral release approvals and other rights that we may negotiate.

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As discussed in Note 2 to our consolidated financial statements, our Manager performs a quarterly review of our loan portfolio, assesses the performance of each loan, and assigns it a risk rating between “1” and “5,” from less risk to greater risk. The following table allocates the principal balance and total loan exposure balances based on our internal risk ratings ($ in thousands):

	September 30, 2016
Risk Rating	Number of Loans		Net Book Value		Total Loan Exposure(1)
1		10	$	456,047	$	456,905
2		53		3,882,247		3,935,513
3		43		4,009,418		5,045,125
4		—		—		—
5		—		—		—
		106	$	8,347,712	$	9,437,543

(1) 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. See Note 2 to our consolidated financial statements for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.1 billion of such non-consolidated senior interests as of September 30, 2016.

The weighted-average risk rating of our total loan exposure was 2.5 and 2.3 as of September 30, 2016 and June 30, 2016, respectively. The increase in weighted-average risk rating was primarily driven by repayments of loans with lower risk ratings, and not rating downgrades in the existing portfolio.

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Portfolio Financing

Our portfolio financing arrangements include revolving repurchase facilities, the GE portfolio acquisition facility, asset-specific financings, a revolving credit agreement, loan participations sold, and non-consolidated senior interests.

The following table details our portfolio financing ($ in thousands):

	Portfolio Financing
	Outstanding Principal Balance
	September 30, 2016		December 31, 2015
Revolving repurchase facilities	$	3,044,434	$	2,495,805
GE portfolio acquisition facility		1,587,822		3,161,291
Asset-specific financings		653,652		474,655
Revolving credit agreement		50,000		—
Loan participations sold		411,427		498,992
Non-consolidated senior interests		1,055,864		1,039,765
Total portfolio financing	$	6,803,199	$	7,670,508

Revolving Repurchase Facilities

The following table details our revolving repurchase facilities ($ in thousands):

	September 30, 2016
	Maximum		Collateral		Repurchase Borrowings
Lender	Facility Size(1)		Assets(2)		Potential(3)		Outstanding		Available(3)
Wells Fargo	$	2,000,000	$	1,390,190	$	1,085,153	$	801,271	$	283,882
MetLife		1,000,000		967,359		756,054		756,054		—
Bank of America		750,000		742,081		577,694		577,694		—
JP Morgan(4)		500,000		524,516		403,483		353,630		49,853
Citibank		500,000		623,857		481,572		252,175		229,397
Morgan Stanley(5)		324,200		254,803		200,665		200,665		—
Société Générale(6)		448,880		166,369		131,000		102,945		28,055
	$	5,523,080	$	4,669,175	$	3,635,621	$	3,044,434	$	591,187

(1) Maximum facility size represents the largest amount of borrowings available under a given facility once sufficient collateral assets have been approved by the lender and pledged by us.

(2) Represents the principal balance of the collateral assets.

(3) Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each revolving credit facility.

(4) The JP Morgan maximum facility size was composed of a general $500.0 million facility size, under which U.S. Dollars and British Pound Sterling borrowings are contemplated.

(5) The Morgan Stanley maximum facility size represents a £250.0 million facility size that was translated to $324.2 million as of September 30, 2016.

(6) The Société Générale maximum facility size represents a €400.0 million facility size that was translated to $448.9 million as of September 30, 2016.

The weighted-average outstanding balance of our revolving repurchase facilities was $2.9 billion for the nine months ended September 30, 2016. As of September 30, 2016, we had aggregate borrowings of $3.0 billion outstanding under our revolving repurchase facilities, with a weighted-average cash coupon of LIBOR plus 1.82% per annum, a weighted-average all-in cost of credit, including associated fees and expenses, of LIBOR plus 2.01% per annum, and a weighted-average advance rate of 79.1%. As of September 30, 2016, outstanding borrowings under these facilities had a weighted-average maturity, excluding extension options and term-out provisions, of 1.4 years.

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Borrowings under each facility are subject to the initial approval of eligible collateral loans by the lender and the maximum advance rate and pricing rate of individual advances are determined with reference to the attributes of the respective collateral loan.

GE Portfolio Acquisition Facility

During the second quarter of 2015, concurrently with our acquisition of the GE portfolio, we entered into an agreement with Wells Fargo to provide us with secured financing for the acquired portfolio. During the second quarter of 2016, we increased the facility size by $125.0 million. As of September 30, 2016, this facility provided for $1.8 billion of financing, of which $1.6 billion was outstanding and an additional $200.5 million was available to finance future loan fundings in the GE portfolio. The GE portfolio acquisition facility is non-revolving and consists of a single master repurchase agreement providing for both (i) asset-specific borrowings for each collateral asset as well as (ii) a sequential pay advance feature.

The asset-specific borrowings under the GE portfolio acquisition facility were advanced at a weighted-average rate of 80% of our purchase price of the collateral assets and will be repaid pro rata from collateral asset repayment proceeds. The asset-specific borrowings are currency matched to the collateral assets and accrue interest at a rate equal to the sum of (i) the applicable base rate plus (ii) a margin of 1.75%, which will increase to 1.80% and 1.85% in year four and year five, respectively. As of September 30, 2016, those borrowings were denominated in U.S. Dollars, Canadian Dollars, British Pounds Sterling, and Euros. The asset-specific borrowings are term matched to the underlying collateral assets with an outside maturity date of May 20, 2020, which may be extended pursuant to two one-year extension options. We guarantee obligations under the GE portfolio acquisition facility in an amount equal to the greater of (i) 25% of outstanding asset-specific borrowings, and (ii) $250.0 million. We had outstanding asset-specific borrowings of $1.6 billion and $3.1 billion under the GE portfolio acquisition facility as of September 30, 2016 and December 31, 2015, respectively.

As of September 30, 2016, the sequential pay advance borrowings under the GE portfolio acquisition facility had been fully repaid.

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Asset-Specific Financings

During the nine months ended September 30, 2016, we entered into four asset-specific financings providing an additional $512.9 million of credit capacity. The following table details statistics for our asset-specific financings ($ in thousands):

	September 30, 2016
			Principal		Book		Wtd. Avg.					Wtd. Avg.
Lender	Count		Balance		Value		Yield/Cost(1)			Guarantee(2)		Term
JP Morgan(3)
Collateral assets		1	$	280,415	$	278,963		L+3.88	%		n/a		Jan. 2020
Financing provided		1		233,679		233,541		L+1.89	%	$	116,839		Jan. 2020
Citibank(3)
Collateral assets		2		201,270		201,135		L+4.45	%		n/a		Nov. 2020
Financing provided		2		158,652		158,605		L+2.48	%		39,663		Nov. 2020
Deutsche Bank
Collateral assets		1		180,740		178,107		L+5.17	%		n/a		Aug. 2021
Financing provided		1		135,075		133,599		L+3.00	%		67,538		Aug. 2021
Bank of the Ozarks
Collateral assets		2		108,423		105,630		L+6.20	%		n/a		Feb. 2020
Financing provided		2		81,907		80,603		L+3.59	%		—		Feb. 2020
Wells Fargo
Collateral assets		1		63,341		62,955		L+6.05	%		n/a		Dec. 2019
Financing provided		1		44,339		44,067		L+3.20	%		8,868		Dec. 2019
Total
Collateral assets		7	$	834,189	$	826,790		L+4.76	%		n/a
Financing provided		7	$	653,652	$	650,415		L+2.57	%	$	232,908

(1) These floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs.

(2) Other than amounts guaranteed on an asset-by-asset basis, borrowings under our asset-specific financings are non-recourse to us.

(3) Borrowings under these asset specific financings are cross collateralized with the related revolving repurchase facility with the same lender.

Refer to Note 6 to our consolidated financial statements for additional terms and details of our secured debt agreements, including certain financial covenants.

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Revolving Credit Agreement

During the second quarter of 2016, we entered into a $125.0 million full recourse secured revolving credit agreement with Barclays that is designed to finance first mortgage originations for up to six months as a bridge to term financing or syndication. Advances under the agreement are subject to availability under a specified borrowing base and accrue interest at a per annum pricing rate equal to the sum of (i) an applicable base rate or Eurodollar rate and (ii) an applicable margin, in each case, dependent on the applicable type of loan collateral. The initial maturity date of the facility is April 4, 2018 and is subject to two one-year extension options, exercisable at our option.

During the three months ended September 30, 2016, the weighted-average outstanding borrowings under the revolving credit agreement were $24.5 million, and we recorded interest expense of $421,000, including $127,000 of amortization of deferred fees and expenses. During the nine months ended September 30, 2016, the weighted-average outstanding borrowings under the revolving credit agreement were $29.7 million and we recorded interest expense of $915,000, including $248,000 of amortization of deferred fees and expenses. As of September 30, 2016 we had $50.0 million outstanding borrowings under the agreement.

Loan Participations Sold

The following table details statistics for our loan participations sold ($ in thousands):

September 30, 2016

Principal

Book

Wtd. Avg.

Wtd. Avg.

Loan Participations Sold

Count

Balance

Value

Yield/Cost(1)

Guarantee(2)

Term

Total loan

2

$

495,912

$

492,133

L+4.51

%

n/a

Sep. 2019

Senior participation(3)(4)

2

411,427

409,654

L+2.71

%

$

31,123

Sep. 2019

(1) Our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred fees / financing costs.

(2) Other than one instance where we entered into a related guarantee agreement for £24.0 million ($31.1 million as of September 30, 2016), our loan participations sold are non-recourse to us.

(3) During the three and nine months ended September 30, 2016, we recorded $3.4 million and $10.7 million, respectively, of interest expense related to our loan participations sold, of which $3.2 million and $10.3 million was paid in cash.

(4) The difference between principal balance and book value of loan participations sold is due to deferred financing costs of $1.8 million as of September 30, 2016.

Refer to Note 7 to our consolidated financial statements for additional details related to our loan participations sold.

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Non-Consolidated Senior Interests

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. These non-consolidated senior interests provide structural leverage for our net investments which are reflected in the form of mezzanine loans or other subordinate interests on our balance sheet and our results of operations. The following table details the subordinate interests retained on our balance sheet and the related non-consolidated senior interests as of September 30, 2016 ($ in thousands):

	September 30, 2016
		Principal		Book		Wtd. Avg.					Wtd. Avg.
Non-Consolidated Senior Interests	Count	Balance		Value		Yield/Cost(1)			Guarantee		Term
Total loan	4	$	1,297,548		$  n/a		5.66	%		n/a	Apr. 2021
Senior participation	4		1,055,864		n/a		4.02	%		n/a	Apr. 2021

(1) Our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, all-in yield/cost includes the amortization of deferred fees / financing costs.

Floating Rate Portfolio

Generally, our business model is such that rising interest rates will increase our net income, while declining interest rates will decrease net income. As of September 30, 2016, 86% of our loans by principal balance earned a floating rate of interest and were financed with liabilities that pay interest at floating rates, which resulted in an amount of net equity that is positively correlated to rising interest rates, subject to the impact of interest rate floors on certain of our floating rate loans. As of September 30, 2016, the remaining 14% of our loans by principal balance earned a fixed rate of interest, but are financed with liabilities that pay interest at floating rates, which resulted in a negative correlation to rising interest rates to the extent of our financing. In certain instances where we have financed fixed rate assets with floating rate liabilities, we have purchased interest rate swaps or caps to limit our exposure to increases in interest rates on such liabilities.

Our liabilities are generally currency and index-matched to each collateral asset, resulting in a net exposure to movements in benchmark rates that varies by currency silo based on the relative proportion of floating rate assets and liabilities. The following table details our loan portfolio’s net exposure to interest rates by currency as of September 30, 2016 ($/£/€/C$ in thousands):

	USD			GBP			EUR			CAD
Floating rate loans(1)	$	7,015,870		£	664,892		€	109,604		C$	192,349
Floating rate debt(1)(2)(3)		(5,100,802	)		(528,979	)		(213,444	)		(489,223	)
Net floating rate exposure(4)	$	1,915,068		£	135,913		€	(103,840	)	C$	(296,874	)

(1) Our floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate.

(2) Includes borrowings under secured debt agreements, loan participations sold, and non-consolidated senior interests.

(3) Liabilities balance includes a C$17.3 million ($13.2 million as of September 30, 2016) interest rate swap used to hedge a portion of our fixed rate debt.

(4) In addition, we have interest rate caps of $1.1 billion, £15.1 million, €152.7 million, and C$491.9 million to limit our exposure to increases in interest rates.

Convertible Notes

In November 2013, we issued $172.5 million of 5.25% convertible senior notes due on December 1, 2018, or the Convertible Notes. The Convertible Notes issuance costs, including underwriter discounts, are amortized through interest expense over the life of the Convertible Notes using the effective interest method. Including this amortization, our all-in cost of the Convertible Notes is 5.87%.

Refer to Notes 2 and 8 to our consolidated financial statements for additional discussion of our Convertible Notes.

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Debt-to-Equity Ratio and Total Leverage

The following table presents our debt-to-equity ratio and total leverage:

	September 30,		December 31,
	2016		2015
Debt-to-equity ratio(1)		2.2x		2.5x
Total leverage(2)		2.7x		3.1x

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

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

CT Legacy Portfolio

As of September 30, 2016, our CT Legacy Portfolio consists of (i) our interests in CT Legacy Partners, LLC and (ii) our carried interest in CT Opportunity Partners I, LP, or CTOPI, a private investment fund that was previously under our management and is now managed by an affiliate of our Manager.

During the nine months ended September 30, 2016 we recognized (i) $13.4 million of gain on investments at fair value, (ii) $2.2 million of income from equity investments in unconsolidated subsidiaries, (iii) $2.3 million of general and administrative expenses, and (iv) $8.1 million of net income attributable to non-controlling interest related to our CT Legacy Portfolio. In addition, we received $22.2 million of distributions related to assets in the CT Legacy Portfolio.

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III. Our Results of Operations

Operating Results

The following table sets forth information regarding our consolidated results of operations and certain key operating metrics ($ in thousands, except per share data):

	Three Months Ended						2016 vs			Nine Months Ended						2016 vs
	September 30,						2015			September 30,						2015
	2016			2015			$			2016			2015			$
Income from loans and other investments
Interest and related income	$	128,190		$	138,361		$	(10,171	)	$	381,686		$	282,249		$	99,437
Less: Interest and related expenses		45,373			51,329			(5,956	)		139,819			106,125			33,694
Income from loans and other investments, net		82,817			87,032			(4,215	)		241,867			176,124			65,743
Other expenses
Management and incentive fees		13,701			13,813			(112	)		43,161			28,535			14,626
General and administrative expenses		7,414			5,295			2,119			20,990			28,655			(7,665	)
Total other expenses		21,115			19,108			2,007			64,151			57,190			6,961
Gain (loss) on investments at fair value		2,824			(82	)		2,906			13,413			22,108			(8,695	)
Income from equity investments in unconsolidated subsidiaries		2,060			17			2,043			2,192			5,677			(3,485	)
Income before income taxes		66,586			67,859			(1,273	)		193,321			146,719			46,602
Income tax provision		194			81			113			281			431			(150	)
Net income		66,392			67,778			(1,386	)		193,040			146,288			46,752
Net income attributable to non-controlling interests		(1,598	)		(890	)		(708	)		(8,119	)		(14,724	)		6,605
Net income attributable to Blackstone Mortgage Trust, Inc.	$	64,794		$	66,888		$	(2,094	)	$	184,921		$	131,564		$	53,357
Net income per share - basic and diluted	$	0.69		$	0.72		$	(0.03	)	$	1.97		$	1.69		$	0.28
Dividends declared per share	$	0.62		$	0.62		$	0.00		$	1.86		$	1.66		$	0.20

Income from loans and other investments, net

Income from loans and other investments, net decreased $4.2 million during the three months ended September 30, 2016 as compared to the corresponding period in 2015. The decrease was primarily due to repayments of the loans in the GE portfolio, which closed during the second quarter of 2015. This was partially offset by the reduction of interest expense incurred on the GE portfolio acquisition facility.

Income from loans and other investments, net increased $65.7 million during the nine months ended September 30, 2016 as compared to the corresponding period in 2015. The increase was primarily due to the accretive effects of the GE portfolio acquisition and the resulting increase in the total size of our loan portfolio. This was partially offset by the additional interest expense incurred on the GE portfolio acquisition facility.

Other expenses

Other expenses are composed of management and incentive fees payable to our Manager and general and administrative expenses. Other expenses increased by $2.0 million during the three months ended September 30, 2016 compared to the corresponding period in 2015 due to (i) an increase of $1.8 million of additional non-cash restricted stock amortization related to shares awarded under our long-term incentive plans, and (ii) an increase of $1.2 million of compensation expenses associated with our CT Legacy Portfolio incentive plans. These were offset by (i) a decrease of $467,000 of general operating expenses, (ii) a decrease of $370,000 of transaction costs related the GE loan portfolio acquisition, and (iii) a decrease of $263,000 of incentive fees payable to our Manager.

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Other expenses increased by $7.0 million during the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015 due to (i) an increase of $9.1 million of incentive fees payable to our Manager, primarily as a result of Core Earnings (before any incentive fees) exceeding the performance hurdle, (ii) an increase of $5.5 million of management fees payable to our Manager, primarily as a result of additional net proceeds received from the sale of our class A common stock in 2015, and (iii) an increase of $4.6 million of additional non-cash restricted stock amortization related to shares awarded under our long-term incentive plans. These were offset by (i) a decrease of $9.6 million of transaction costs related the GE loan portfolio acquisition, (ii) a decrease of $2.5 million of compensation expenses associated with our CT Legacy Portfolio incentive plans and (iii) a decrease of $132,000 of additional general operating expenses.

Gain on investments at fair value

During the three months ended September 30, 2016, we recognized $2.8 million of net gains, primarily on investments held by CT Legacy Partners compared to $82,000 of net losses during the three months ended September 30, 2015.

During the nine months ended September 30, 2016, we recognized $13.4 million of net gains, primarily on investments held by CT Legacy Partners compared to $22.1 million during the nine months ended September 30, 2015.

Income from equity investments in unconsolidated subsidiaries

During the three months ended September 30, 2016, we recognized $2.1 million of promote income from CTOPI compared to $17,000 of promote income during the three months ended September 30, 2015.

During the nine months ended September 30, 2016, we recognized $2.2 million of promote income from CTOPI compared to $5.7 million of promote income during the nine months ended September 30, 2015.

Net income attributable to non-controlling interests

During the three months ended September 30, 2016, we recognized $1.6 million of net income attributable to non-controlling interests compared with $890,000 during the three months ended September 30, 2015. The non-controlling interests represent the portion of CT Legacy Partners net income that is not owned by us. The increase in income attributable to non-controlling interests is primarily a result of the increase of $2.9 million of gain on investments at fair value recognized by CT Legacy Partners during the three months ended September 30, 2016 compared to the three months ended September 30, 2015.

During the nine months ended September 30, 2016, we recognized $8.1 million of net income attributable to non-controlling interests compared with $14.7 million during the nine months ended September 30, 2015. The decrease in income attributable to non-controlling interests is primarily a result of the decrease of $8.7 million of gain on investments at fair value recognized by CT Legacy Partners during the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015.

Dividends per share

During the three months ended September 30, 2016, we declared a dividend of $0.62 per share, or $58.2 million, which was paid on October 14, 2016 to common stockholders of record as of September 30, 2016. During the three months ended September 30, 2015, we declared a dividend of $0.62 per share, or $57.8 million.

During the nine months ended September 30, 2016, we declared aggregate dividends of $1.86 per share, or $174.7 million. During the nine months ended September 30, 2015, we declared aggregate dividends of $1.66 per share, or $136.7 million.

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IV. Liquidity and Capital Resources

Capitalization

We have capitalized our business to date through, among other things, the issuance and sale of shares of our class A common stock, borrowings under secured debt agreements, and the issuance and sale of Convertible Notes. As of September 30, 2016, we had 93,912,936 shares of our class A common stock outstanding representing $2.5 billion of stockholders’ equity, $5.3 billion of outstanding borrowings under secured debt agreements, and $172.5 million of Convertible Notes outstanding.

As of September 30, 2016, our secured debt agreements consisted of revolving repurchase facilities with an outstanding balance of $3.0 billion, the GE portfolio acquisition facility with an outstanding balance of $1.6 billion, and $653.7 million of asset-specific financings. We also finance our business through the sale of loan participations and non-consolidated senior interests. As of September 30, 2016 we had $411.4 million of loan participations sold and $1.1 billion of non-consolidated senior interests outstanding.

See Notes 6, 7, and 8 to our consolidated financial statements for additional details regarding our secured debt agreements, loan participations sold, and Convertible Notes.

Sources of Liquidity

Our primary sources of liquidity include cash and cash equivalents and available borrowings under our revolving repurchase facilities and revolving credit agreement, which are set forth in the following table ($ in thousands):

	September 30, 2016		December 31, 2015
Cash and cash equivalents	$	94,061	$	96,450
Available borrowings under secured debt agreements		666,187		504,778
	$	760,248	$	601,228

In addition to our current sources of liquidity, we have access to liquidity through public offerings of debt and equity securities. To facilitate such offerings, in July 2016, we filed a shelf registration statement with the Securities and Exchange Commission, or the SEC, that is effective for a term of three years and expires in July 2019. The amount of securities to be issued pursuant to this shelf registration statement was not specified when it was filed and there is no specific dollar limit on the amount of securities we may issue. The securities covered by this registration statement include: (i) class A common stock, (ii) preferred stock, (iii) debt securities, (iv) depositary shares representing preferred stock, (v) warrants, (vi) subscription rights, (vii) purchase contracts, and (viii) units consisting of one or more of such securities or any combination of these securities. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering materials, at the time of any offering.

We may also access liquidity through a dividend reinvestment plan and direct stock purchase plan, under which 9,998,585 shares of class A common stock were available for issuance as of September 30, 2016, and our at-the-market stock offering program, pursuant to which we may sell, from time to time, up to $188.6 million of additional shares of our class A common stock as of September 30, 2016. Refer to Note 10 to our consolidated financial statements for additional details.

Our existing loan portfolio also provides us with liquidity as loans are repaid or sold, in whole or in part, and the proceeds from such repayments become available for us to reinvest.

Liquidity Needs

In addition to our ongoing loan origination activity, our primary liquidity needs include interest and principal payments under our $5.3 billion of outstanding borrowings under secured debt agreements, our Convertible Notes, our unfunded loan commitments, dividend distributions to our stockholders, and operating expenses.

51

Contractual Obligations and Commitments

Our contractual obligations and commitments as of September 30, 2016 were as follows ($ in thousands):

			Payment Timing
	Total		Less Than		1 to 3		3 to 5		More Than
	Obligation		1 Year		Years		Years		5 Years
Unfunded loan commitments(1)	$	929,030	$	286,526	$	642,504	$	—	$	—
Secured debt agreements(2)(3)		5,556,575		2,201,189		3,101,853		253,533		—
Convertible notes, net		195,418		12,201		183,217		—		—
Other liabilities(4)		22,769		22,769		—		—		—
Total(5)	$	6,703,792	$	2,522,685	$	3,927,574	$	253,533	$	—

(1) The allocation of our unfunded loan commitments is based on the earlier of the commitment expiration date or the loan maturity date.

(2) The allocation of our revolving repurchase facilities is based on the current maturity date of each individual borrowing under the facilities. Includes the related future interest payment obligations, which are estimated by assuming the amounts outstanding under our revolving repurchase facilities and the interest rates in effect as of September 30, 2016 will remain constant into the future; this is only an estimate, as actual amounts borrowed and rates will vary over time.

(3) Assumes repayment date based on initial maturity of each instrument. Future interest payment obligations are determined using the relevant benchmark rates in effect as of September 30, 2016, as applicable.

(4) Other liabilities consist of secured debt repayments pending servicer remittance as of the balance sheet date.

(5) Total does not include $411.4 million of loan participations sold and $1.1 billion of non-consolidated senior interests as the satisfaction of these liabilities will not require cash outlays from us.

We are also required to settle our foreign currency forward contracts and interest rate swaps with our derivative counterparties upon maturity which, depending on foreign exchange and interest rate movements, may result in cash received from or due to the respective counterparty. The table above does not include these amounts as they are not fixed and determinable. Refer to Note 9 to our consolidated financial statement for details regarding our derivative contracts.

We are required to pay our Manager a base management fee, an incentive fee, and reimbursements for certain expenses pursuant to our Management Agreement. The table above does not include the amounts payable to our Manager under our Management Agreement as they are not fixed and determinable. Refer to Note 11 to our consolidated financial statements for additional terms and details of the fees payable under our Management Agreement.

As a REIT, we generally must distribute substantially all of our net taxable income to shareholders in the form of dividends to comply with the REIT provisions of the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. Our taxable income does not necessarily equal our net income as calculated in accordance with GAAP, or our Core Earnings as described above.

Cash Flows

The following table provides a breakdown of the net change in our cash and cash equivalents ($ in thousands):

	Nine Months Ended September 30,
	2016			2015
Cash flows from operating activities	$	187,564		$	104,610
Cash flows from investing activities		798,251			(5,193,831	)
Cash flows from financing activities		(989,730	)		5,173,559
Net (decrease) increase in cash and cash equivalents	$	(3,915	)	$	84,338

52

We experienced a net decrease in cash of $3.9 million for the nine months ended September 30, 2016, compared to a net increase of $84.3 million for the nine months ended September 30, 2015. During the nine months ended September 30, 2016, we originated and funded $2.3 billion of loans and repaid $3.0 billion under secured debt agreements. This decrease in cash was offset by $3.1 billion of principal collections and sales of loans receivable and $2.2 billion of borrowings under secured debt agreements.

Refer to Notes 6 and 7 to our consolidated financial statements for additional discussion of our secured debt obligations and participations sold. Refer to Note 3 to our consolidated financial statements for further discussion of our loan activity.

V. Other Items

Income Taxes

We elected to be taxed as a REIT, effective January 1, 2003, under the Internal Revenue Code for U.S. federal income tax purposes. We generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings that we distribute. To the extent that we satisfy this distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws.

Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Internal Revenue Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to the nature of our assets and the sources of our income. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full taxable years. As of September 30, 2016 and December 31, 2015, we were in compliance with all REIT requirements.

Refer to Note 12 to our consolidated financial statements for additional discussion of our income taxes.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Critical Accounting Policies

Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires our Manager to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. There have been no material changes to our critical accounting policies described in our annual report on Form 10-K filed with the SEC on February 16, 2016.

Refer to Note 2 to our consolidated financial statements for the description of our significant accounting policies.

53

VI. Loan Portfolio Details

The following table provides details of our loan portfolio, on a loan-by-loan basis, as of September 30, 2016 ($ in millions):

	Loan Type(1)	Origination Date(2)	Total Loan(3)		Principal Balance(3)		Net Book Value		Cash Coupon(4)			All-in Yield(4)			Maximum Maturity(5)	Location	Property Type	Loan Per SQFT / Unit /Key	LTV(2)		Risk Rating
1	Senior loan(3)	8/6/2015		$       478.6		$     478.6		$      86.5		4.48%			5.92%		10/29/2022	Diversified - EUR	Other	n/a		71%	3
2	Senior loan(3)	5/15/2015		590.0		470.0		79.2		L + 4.25%			L + 4.80%		5/15/2020	Miami	Retail	$       595 / sqft		36%	3
3	Senior loan	5/22/2014		440.9		440.9		437.2		L + 4.20%			L + 4.48%		12/31/2019	Diversified - UK	Hotel	119,391 / key		59%	3
4	Senior loan	5/1/2015		320.3		294.5		292.8		L + 3.45%			L + 3.83%		5/1/2020	New York	Office	374 / sqft		68%	3
5	Senior loan(3)	6/30/2015		304.8		286.9		56.6		L + 4.75%			L + 5.16%		7/9/2020	San Francisco	Condo	908 / sqft		66%	3
6	Senior loan	1/7/2015		315.0		280.4		279.0		L + 3.50%			L + 3.88%		1/9/2020	New York	Office	242 / sqft		53%	2
7	Senior loan	6/4/2015		244.0		244.0		246.6		5.54%	(6)		5.48%	(6)	2/20/2019	Diversified - CAN	Hotel	31,972 / key		54%	2
8	Senior loan	6/23/2015		223.5		210.9		210.1		L + 3.65%			L + 3.77%		10/1/2020	Washington DC	Office	237 / sqft		72%	2
9	Senior loan	6/23/2015		207.3		207.3		207.2		5.38%			5.41%		1/18/2017	Diversified - GER	Retail	62 / sqft		53%	2
10	Senior loan	8/19/2016		200.0		187.5		186.6		L + 3.64%			L + 4.10%		9/9/2021	New York	Office	558 / sqft		69%	3
11	Senior loan	7/31/2014		215.0		186.4		186.3		L + 3.50%			L + 3.57%		8/9/2019	Chicago	Office	249 / sqft		65%	2
12	Senior loan	8/3/2016		275.9		180.7		178.1		L + 4.66%			L + 5.17%		8/9/2021	New York	Office	249 / sqft		57%	3
13	Senior loan	4/15/2016		200.0		176.6		175.0		L + 4.25%			L + 4.86%		5/9/2021	New York	Office	163 / sqft		40%	3
14	Senior loan	8/17/2016		187.0		169.0		167.2		L + 3.75%			L + 4.13%		9/9/2021	San Francisco	Office	488 / sqft		65%	3
15	Senior loan	2/25/2014		166.0		166.0		165.6		L + 4.60%			L + 5.13%		3/9/2019	Diversified - US	Hotel	87,231 / key		49%	2
16	Senior loan	6/3/2016		160.0		160.0		160.0		L + 4.42%			L + 4.42%		6/9/2021	Los Angeles	Office	86 / sqft		41%	3
17	Senior loan	3/8/2016		181.2		143.8		142.3		L + 3.55%			L + 3.90%		3/9/2021	Orange County	Office	181 / sqft		52%	3
18	Senior loan	10/30/2013		140.0		140.0		139.6		L + 4.38%			L + 4.54%		9/9/2020	San Francisco	Hotel	215,716 / key		71%	2
19	Senior loan	1/30/2014		133.5		133.2		132.7		L + 4.30%			L + 4.81%		12/1/2017	New York	Hotel	212,341 / key		38%	2
20	Senior loan	12/9/2014		165.0		130.8		130.7		L + 3.80%			L + 4.13%		12/9/2019	Diversified - US	Office	74 / sqft		65%	2
21	Senior loan	9/22/2015		122.0		122.0		121.9		L + 3.40%			L + 4.28%		11/9/2019	New York	Multi	243,513 / unit		74%	3
22	Senior loan	6/23/2015		116.6		116.6		118.6		L + 3.30%			L + 3.23%		11/1/2016	Diversified - US	Other	287,898 / unit		57%	3
23	Senior loan	8/28/2014		125.0		111.1		111.0		L + 4.35%			L + 4.50%		12/9/2018	New York	Office	116 / sqft		78%	3
24	Senior loan	9/30/2013		113.5		105.7		105.7		L + 3.94%			L + 3.93%		9/30/2020	New York	Multi	131,811 / unit		67%	2
25	Senior loan	2/18/2016		103.7		103.7		102.8		L + 3.75%			L + 4.41%		4/20/2019	London - UK	Office	870 / sqft		44%	3
26	Senior loan	7/28/2016		116.5		101.1		100.0		L + 3.60%			L + 4.02%		8/9/2021	Atlanta	Office	160 / sqft		70%	3
27	Senior loan	4/27/2016		100.8		100.8		100.0		L + 4.35%			L + 5.02%		5/9/2021	Chicago	Office	133 / sqft		74%	3
28	Senior loan	2/20/2014		100.0		100.0		99.8		L + 4.40%			L + 4.94%		3/9/2019	Long Island	Office	146 / sqft		68%	2
29	Senior loan	3/12/2015		101.2		100.0		99.5		L + 3.25%			L + 3.61%		3/11/2020	Orange County	Office	266 / sqft		66%	1
30	Senior loan	6/24/2015		100.0		100.0		99.6		L + 3.50%			L + 3.86%		12/1/2019	Virginia	Office	186 / sqft		43%	2

continued…

54

	Loan Type(1)	Origination Date(2)	Total Loan(3)		Principal Balance(3)		Net Book Value		Cash Coupon(4)			All-in Yield(4)			Maximum Maturity(5)	Location	Property Type	Loan Per SQFT / Unit /Key	LTV(2)		Risk Rating
31	Senior loan	6/24/2015		107.3		98.7		98.0		L + 4.25%			L + 4.67%		7/9/2020	Honolulu	Hotel	165,531 / key		67%	2
32	Senior loan	3/4/2014		137.5		97.2		96.3		L + 4.00%			L + 5.78%		3/4/2018	London - UK	Office	581 / sqft		42%	3
33	Senior loan	1/22/2016		128.5		94.7		93.8		L + 4.25%			L + 4.76%		2/9/2021	Los Angeles	Retail	247 / sqft		64%	3
34	Senior loan	3/10/2016		104.0		90.5		89.6		L + 4.10%			L + 4.52%		4/9/2021	Chicago	Multi	591,326 /unit		63%	3
35	Senior loan	6/23/2015		96.8		87.7		87.6		L + 3.40%			L + 3.51%		7/31/2019	Virginia	Office	142 / sqft		75%	3
36	Senior loan	5/16/2014		86.8		86.8		86.6		L + 3.85%			L + 4.11%		6/9/2019	Miami	Office	187 / sqft		74%	3
37	Senior loan	2/18/2015		89.9		84.3		84.1		L + 3.75%			L + 4.30%		3/9/2020	Diversified - CA	Office	174 / sqft		71%	2
38	Senior loan	10/28/2014		85.0		82.1		81.8		L + 3.75%			L + 4.12%		11/9/2019	New York	Retail	1,534 / sqft		78%	2
39	Senior loan	5/22/2014		93.7		81.8		81.6		L + 4.00%			L + 4.89%		6/15/2019	Orange County	Office	148 / sqft		67%	2
40	Senior loan	6/23/2015		81.7		81.7		82.0		L + 3.65%			L + 3.63%		11/30/2018	Diversified - US	Hotel	69,086 / key		83%	2
41	Senior loan	12/18/2015		79.4		79.4		79.1		L + 4.15%			L + 4.47%		1/9/2021	New York	Hotel	274,800 / key		67%	3
42	Senior loan	7/11/2014		82.2		79.2		79.0		L + 3.65%			L + 4.03%		8/9/2019	Chicago	Office	150 / sqft		64%	2
43	Senior loan	2/12/2016		100.0		77.0		76.5		L + 4.15%			L + 4.68%		3/9/2021	Long Island	Office	115 / sqft		65%	3
44	Senior loan	6/23/2015		77.0		76.8		76.9		4.95%	(6)		5.02%	(6)	8/31/2020	Diversified - FL	MHC	22,236 / unit		69%	1
45	Senior loan	6/4/2015		79.1		75.8		76.6		5.04%	(6)		4.98%	(6)	3/28/2019	Diversified - CAN	Retail	39 / sqft		74%	3
46	Senior loan	7/23/2014		80.0		72.1		71.5		L + 5.00%			L + 5.86%		8/9/2019	Atlanta	Office	144 / sqft		43%	2
47	Senior loan	5/1/2015		83.5		71.7		71.3		L + 3.95%			L + 4.20%		5/9/2020	Maryland	Hotel	183,829 / key		67%	2
48	Senior loan	6/11/2015		70.3		70.3		70.2		L + 3.52%			L + 3.54%		11/30/2018	Dallas	Office	52 / sqft		50%	2
49	Senior loan	9/8/2014		69.2		69.2		68.6		L + 4.00%			L + 4.44%		11/20/2019	Madrid - ES	Retail	128 / sqft		70%	2
50	Senior loan	6/5/2014		63.5		63.5		63.4		L + 4.50%			L + 4.90%		6/5/2019	London - UK	Retail	2,693 / sqft		80%	2
51	Senior loan	11/17/2014		70.5		63.3		63.0		L + 5.50%			L + 6.05%		12/9/2019	Diversified - CAN	Office	53 / sqft		53%	2
52	Senior loan	3/11/2014		65.0		62.1		62.0		L + 4.50%			L + 5.00%		4/9/2019	New York	Multi	697,418 /unit		65%	3
53	Senior loan	6/29/2016		75.4		62.0		61.3		L + 3.65%			L + 4.08%		7/9/2021	Fort Lauderdale	Office	240 / sqft		64%	3
54	Senior loan(3)	9/3/2015		88.0		62.0		17.3		L + 5.50%			L + 6.29%		9/2/2019	Seattle	Office	213 / sqft		59%	2
55	Senior loan	9/1/2016		61.5		61.5		60.9		L + 4.35%			L + 5.02%		9/1/2021	Atlanta	Multi	268,559 /unit		72%	3
56	Senior loan	10/6/2014		67.0		61.0		60.7		L + 4.35%			L + 4.78%		10/9/2019	Long Island	Hotel	99,187 / key		65%	2
57	Senior loan	1/13/2014		60.0		60.0		58.7		L + 3.45%			L + 4.89%		6/9/2020	New York	Office	284 / sqft		53%	2
58	Senior loan	2/27/2015		73.7		55.8		55.5		L + 3.55%			L + 4.06%		2/26/2020	Chicago	Office	113 / sqft		64%	2
59	Senior loan	6/4/2015		55.1		55.1		55.1		L + 3.25%			L + 3.30%		7/6/2017	Norwich - UK	Retail	164 / sqft		55%	1
60	Senior loan	3/4/2015		55.0		55.0		55.0		L + 4.70%			L + 4.76%		5/6/2017	Bellevue	Office	160 / sqft		48%	1

continued…

55

	Loan Type(1)	Origination Date(2)	Total Loan(3)		Principal Balance(3)		Net Book Value		Cash Coupon(4)			All-in Yield(4)			Maximum Maturity(5)	Location	Property Type	Loan Per SQFT / Unit /Key	LTV(2)		Risk Rating
61	Senior loan	5/20/2015		53.3		52.9		53.1		L + 3.50%			L + 3.53%		12/31/2018	Chicago	Office	134 / sqft		67%	3
62	Senior loan	9/9/2014		56.0		50.4		50.3		L + 4.00%			L + 4.31%		9/9/2019	Ft. Lauderdale	Office	145 / sqft		71%	2
63	Senior loan	4/1/2014		50.0		50.0		50.0		L + 4.20%			L + 4.73%		4/9/2019	Honolulu	Hotel	161,290 / key		69%	2
64	Senior loan	5/20/2015		58.0		48.1		48.0		5.23%	(6)		5.27%	(6)	6/30/2019	Charlotte	Office	95 / sqft		71%	3
65	Senior loan	7/2/2013		49.8		46.1		46.0		L + 4.25%			L + 4.53%		7/10/2018	Denver	Hotel	124,822 / key		69%	2
66	Senior loan	9/22/2016		46.0		45.5		45.0		L + 4.25%			L + 4.90%		10/9/2019	New York	Office	456 / sqft		51%	3
67	Senior loan	12/19/2014		44.0		44.0		43.9		L + 4.25%			L + 4.44%		1/9/2017	New York	Multi	511,628 / unit		50%	2
68	Senior loan	9/26/2014		51.0		43.8		43.8		L + 4.00%			L + 4.05%		10/9/2019	Dallas	Office	99 / sqft		70%	2
69	Senior loan	3/26/2014		43.3		42.9		42.8		L + 4.30%			L + 4.70%		4/9/2019	East Bay	Office	123 / sqft		71%	2
70	Senior loan	11/19/2015		50.0		41.3		41.1		L + 4.00%			L + 4.56%		10/9/2018	New York	Office	1,059 / sqft		57%	3
71	Senior loan	11/28/2013		60.9		40.8		40.4		L + 4.38%			L + 5.56%		1/20/2019	London - UK	Office	500 / sqft		49%	3
72	Senior loan	6/11/2015		40.7		40.5		40.7		5.05%	(6)		5.07%	(6)	9/30/2020	Diversified - US	MHC	23,126 / unit		79%	2
73	Senior loan	6/12/2014		39.9		39.9		39.9		L + 4.00%			L + 6.14%		6/30/2018	Los Angeles	Office	40 / sqft		44%	3
74	Senior loan	8/8/2013		39.4		39.4		39.5		L + 4.25%			L + 4.73%		8/10/2018	Newport - RI	Hotel	153,418 / key		61%	1
75	Senior loan	5/28/2015		38.0		38.0		37.6		L + 3.90%			L + 4.25%		6/30/2018	Houston	Hotel	97,938 / key		45%	2
76	Senior loan	5/28/2015		40.2		37.6		37.6		L + 5.25%			L + 5.30%		3/5/2017	Atlanta	Office	108 / sqft		48%	2
77	Senior loan	8/25/2015		43.8		36.8		36.6		L + 4.50%			L + 5.13%		9/9/2018	Los Angeles	Office	164 / sqft		46%	3
78	Senior loan	6/26/2015		42.1		36.5		36.3		L + 3.75%			L + 4.36%		7/9/2020	San Diego	Office	166 / sqft		73%	2
79	Senior loan	2/12/2016		225.0		36.4		34.1		L + 5.75%			L + 7.17%		2/11/2021	Seattle	Office	48 / sqft		48%	3
80	Senior loan	6/11/2015		35.5		35.5		35.6		4.79%	(6)		4.81%	(6)	7/31/2019	Tampa	MHC	30,967 / unit		80%	3
81	Senior loan	5/20/2015		38.5		34.9		34.8		4.66%	(6)		4.90%	(6)	1/31/2019	Los Angeles	Office	171 / sqft		59%	2
82	Senior loan	6/11/2015		34.5		34.5		34.7		5.34%			5.36%		5/31/2020	Diversified - US	MHC	21,129 / unit		65%	2
83	Senior loan	10/22/2015		33.7		33.7		33.5		L + 4.50%			L + 5.03%		10/22/2018	London - UK	Office	2,547 / sqft		64%	3
84	Senior loan	5/20/2015		36.5		32.0		32.0		L + 3.60%			L + 3.60%		7/11/2019	Los Angeles	Office	388 / sqft		46%	1
85	Senior loan	4/17/2015		30.3		30.3		30.1		L + 4.50%			L + 4.95%		4/20/2020	Hague - NL	Hotel	99,018 / key		71%	3
86	Senior loan	4/4/2014		30.7		30.0		30.0		L + 4.25%			L + 4.57%		4/9/2019	San Francisco	Office	289 / sqft		65%	2
87	Senior loan	6/23/2015		38.9		28.9		28.9		L + 3.75%			L + 3.75%		8/31/2019	New York	Condo	327 / sqft		50%	1
88	Senior loan	12/30/2013		31.5		27.8		27.8		L + 4.50%			L + 4.92%		1/9/2019	Phoenix	Office	86 / sqft		67%	2
89	Senior loan	5/28/2015		31.9		27.4		27.4		L + 4.35%			L + 4.63%		12/31/2017	San Jose	Office	73 / sqft		48%	2
90	Senior loan	6/4/2015		27.2		27.2		27.1		L + 3.75%			L + 4.02%		4/26/2017	Liverpool - UK	Retail	52 / sqft		56%	1

continued…

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	Loan Type(1)	Origination Date(2)	Total Loan(3)		Principal Balance(3)		Net Book Value		Cash Coupon(4)			All-in Yield(4)			Maximum Maturity(5)	Location	Property Type	Loan Per SQFT / Unit /Key	LTV(2)		Risk Rating
91	Senior loan	6/4/2015		26.7		26.7		26.6		5.97%			6.13%		7/1/2017	Edmonton - CAN	MHC	30,739 / unit		49%	1
92	Senior loan	2/28/2014		26.0		26.0		26.0		L + 4.00%			L + 4.27%		3/9/2019	Phoenix	Other	130,653 / unit		69%	2
93	Senior loan	6/11/2015		26.0		26.0		25.9		5.22%	(6)		5.42%	(6)	11/30/2020	West Palm Beach	MHC	53,608 / unit		75%	3
94	Senior loan	5/28/2015		51.9		24.9		24.9		L + 4.00%			L + 4.00%		6/30/2018	Los Angeles	Office	25 / sqft		53%	3
95	Senior loan	6/11/2015		24.5		24.5		24.4		5.32%	(6)		5.53%	(6)	11/30/2020	Ft. Lauderdale	MHC	49,696 / unit		70%	2
96	Senior loan	6/18/2014		23.5		23.5		23.3		L + 4.00%			L + 4.43%		7/20/2019	Diversified - NL	Office	61 / sqft		69%	2
97	Senior loan	5/20/2015		21.2		21.2		21.2		L + 4.25%			L + 4.35%		9/30/2018	Phoenix	Multi	69,058 / unit		73%	2
98	Senior loan	5/28/2015		20.9		20.9		20.9		L + 3.95%			L + 4.17%		3/31/2019	Pittsburgh	Hotel	93,533 / key		71%	3
99	Senior loan	6/11/2015		18.3		18.3		18.2		4.80%	(6)		5.06%	(6)	11/30/2020	Ft. Lauderdale	MHC	26,742 / unit		51%	2
100	Senior loan	6/4/2015		17.6		17.6		17.6		4.63%			4.80%		3/1/2017	Ontario - CAN	Other	51,742 / unit		59%	2
101	Senior loan	6/4/2015		16.7		16.7		16.7		4.47%	(6)		4.70%	(6)	12/23/2018	Montreal - CAN	Office	46 / sqft		45%	2
102	Senior loan	6/4/2015		16.4		16.4		16.4		5.17%			5.28%		9/4/2020	Diversified - CAN	Other	3,555 / unit		61%	2
103	Senior loan	5/28/2015		15.7		15.7		15.6		L + 3.70%			L + 4.00%		8/31/2019	Albuquerque	Hotel	115,239 / key		51%	1
104	Senior loan	6/11/2015		15.0		15.0		14.9		5.31%	(6)		5.54%	(6)	9/30/2020	Tampa	MHC	39,474 / unit		64%	2
105	Senior loan	6/4/2015		13.6		13.6		14.1		L + 4.50%			L + 4.30%		12/1/2016	Toronto - CAN	Office	81 / sqft		58%	3
106	Senior loan	5/28/2015		10.6		10.6		10.2		L + 4.75%			L + 7.10%		8/31/2017	Diversified - US	Office	40 / sqft		86%	2
				$10,499.1		$9,437.5		$8,347.7		4.66%			5.09%		3.3 yrs					60%	2.5

(1) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans.

(2) Date loan was originated or acquired by us, and the LTV as of such date. Dates are not updated for subsequent loan modifications or upsizes.

(3) 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 September 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.

(4) As of September 30, 2016, our floating rate loans were indexed to various benchmark rates, with 86% of floating rate loans indexed to USD LIBOR. In addition, $277.3 million of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 1.13%, as of September 30, 2016. In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs, and accrual of both extension and exit fees.

(5) Maximum maturity assumes all extension options are exercised, however our loans may be repaid prior to such date.

(6) Loan consists of one or more floating and fixed rate tranches. Coupon and all-in yield assume applicable floating benchmark rate for weighted-average calculation.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

Loan Portfolio Net Interest Income

Generally, our business model is such that rising interest rates will increase our net income, while declining interest rates will decrease net income. As of September 30, 2016, 86% of our loans by principal balance earned a floating rate of interest and were financed with liabilities that pay interest at floating rates, which resulted in an amount of net equity that is positively correlated to rising interest rates, subject to the impact of interest rate floors on certain of our floating rate loans. As of September 30, 2016, the remaining 14% of our loans by principal balance earned a fixed rate of interest, but are financed with liabilities that pay interest at floating rates, which resulted in a negative correlation to rising interest rates to the extent of our financing. In certain instances where we have financed fixed rate assets with floating rate liabilities, we have purchased interest rate swaps or caps to limit our exposure to increases in interest rates on such liabilities.

The following table projects the impact on our interest income and expense for the twelve month period following September 30, 2016, assuming an immediate increase or decrease of both 25 and 50 basis points in the applicable interest rate benchmark by currency ($ in thousands):

Currency	Assets (Liabilities)     Subject to Interest     Rate Sensitivity(1)				25 Basis Point       Increase			25 Basis Point       Decrease			50 Basis Point       Increase			50 Basis Point       Decrease
USD(2)	$	7,015,870		Interest income	$	17,248		$	(17,248	)	$	34,496		$	(33,456	)
		(5,100,802	)	Interest expense		(12,752	)		12,752			(25,504	)		25,504
				Total	$	4,496		$	(4,496	)	$	8,992		$	(7,952	)
GBP(2)	$	862,232		Interest income	$	1,967		$	(1,754	)	$	4,123		$	(3,508	)
		(685,980	)	Interest expense		(1,715	)		1,715			(3,430	)		3,430
				Total	$	252		$	(39	)	$	693		$	(78	)
EUR	$	122,998		Interest income	$	—		$	—		$	245		$	—
		(239,527	)	Interest expense		(108	)		108			(606	)		215
				Total	$	(108	)	$	108		$	(361	)	$	215
CAD(3)	$	146,318		Interest income	$	366		$	(366	)	$	732		$	(732	)
		(372,146	)	Interest expense		(930	)		930			(1,861	)		1,861
				Total	$	(564	)	$	564		$	(1,129	)	$	1,129
				Total	$	4,076		$	(3,863	)	$	8,195		$	(6,686	)

(1) Our floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate.

(2) Includes borrowings under secured debt agreements, loan participations sold, and non-consolidated senior interests.

(3) Liabilities balance includes two interest rate swaps totaling C$17.3 million ($13.2 million as of September 30, 2016) that are used to hedge a portion of our fixed rate debt.

Loan Portfolio Value

As of September 30, 2016, 14% of our loans earned a fixed rate of interest and as such, the values of such loans are sensitive to changes in interest rates. We generally hold all of our loans to maturity and so do not expect to realize gains or losses on our fixed rate loan portfolio as a result of movements in market interest rates.

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Risk of Non-Performance

In addition to the risks related to fluctuations in cash flows and asset values associated with movements in interest rates, there is also the risk of non-performance on floating rate assets. In the case of a significant increase in interest rates, the additional debt service payments due from our borrowers may strain the operating cash flows of the collateral real estate assets and, potentially, contribute to non-performance or, in severe cases, default. This risk is partially mitigated by various facts we consider during our underwriting process, which in certain cases include a requirement for our borrower to purchase an interest rate cap contract.

Credit Risks

Our loans and investments are also subject to credit risk. The performance and value of our loans and investments depend upon the sponsors’ ability to operate the properties that serve as our collateral so that they produce cash flows adequate to pay interest and principal due to us. To monitor this risk, our Manager’s asset management team reviews our investment portfolios and in certain instances is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary.

In addition, we are exposed to the risks generally associated with the commercial real estate market, including variances in occupancy rates, capitalization rates, absorption rates, and other macroeconomic factors beyond our control. We seek to manage these risks through our underwriting and asset management processes.

Capital Market Risks

We are exposed to risks related to the equity capital markets, and our related ability to raise capital through the issuance of our class A common stock or other equity instruments. We are also exposed to risks related to the debt capital markets, and our related ability to finance our business through borrowings under credit facilities or other debt instruments. As a REIT, we are required to distribute a significant portion of our taxable income annually, which constrains our ability to accumulate operating cash flow and therefore requires us to utilize debt or equity capital to finance our business. We seek to mitigate these risks by monitoring the debt and equity capital markets to inform our decisions on the amount, timing, and terms of capital we raise.

Counterparty Risk

The nature of our business requires us to hold our cash and cash equivalents and obtain financing from various financial institutions. This exposes us to the risk that these financial institutions may not fulfill their obligations to us under these various contractual arrangements. We mitigate this exposure by depositing our cash and cash equivalents and entering into financing agreements with high credit-quality institutions.

The nature of our loans and investments also exposes us to the risk that our counterparties do not make required interest and principal payments on scheduled due dates. We seek to manage this risk through a comprehensive credit analysis prior to making an investment and active monitoring of the asset portfolios that serve as our collateral.

Currency Risk

Our loans and investments that are denominated in a foreign currency are also subject to risks related to fluctuations in currency rates. We mitigate this exposure by matching the currency of our foreign currency assets to the currency of the borrowings that finance those assets. As a result, we substantially reduce our exposure to changes in portfolio value related to changes in foreign currency rates. In certain circumstances, we may also enter into foreign currency derivative contracts to further mitigate this exposure.

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The following table outlines our assets and liabilities that are denominated in a foreign currency (£/€/C$ in thousands):

	September 30, 2016
Foreign currency assets(1)	£	1,038,592		€	338,960		C$	635,200
Foreign currency liabilities(1)		(830,721	)		(213,649	)		(506,628	)
Foreign currency contracts - notional		(117,900	)		(44,900	)		(119,600	)
Net exposure to exchange rate fluctuations	£	89,971		€	80,411		C$	8,972

(1) Balances include non-consolidated senior interests of £302.0 million.

We estimate that a 10% appreciation of the United States Dollar relative to the British Pound Sterling and the Euro would result in a decline in our net assets in U.S. Dollar terms of $27.0 million and $14.1 million, respectively, as of September 30, 2016. Substantially all of our net asset exposure to the Canadian Dollar has been hedged with foreign currency forward contracts.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

An evaluation of the effectiveness of the design and operation of our “disclosure controls and procedures” (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of the end of the period covered by this quarterly report on Form 10-Q was made under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer. Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (a) are effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Controls over Financial Reporting

There have been no changes in our “internal control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the period covered by this quarterly report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of September 30, 2016, we were not involved in any material legal proceedings.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors previously disclosed under Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2015, as updated by the information disclosed under Item 1A of our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Section 13(r) Disclosure

Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, or ITRA, which added Section 13(r) of the Exchange Act, we hereby incorporate by reference herein Exhibit 99.1 of this report, which includes disclosures publicly filed by NCR Corporation, which may be considered an affiliate of Blackstone and therefore our affiliate.

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ITEM 6. EXHIBITS

10.1	Amendment No. 1 to Amended and Restated Master Repurchase Agreement, dated as of July 25,2016, among Parlex 4 UK Finco, LLC, Parlex 4 Finance, LLC, Blackstone Mortgage Trust, Inc. and JPMorgan Chase Bank, National Association
10.2	First Amendment to Amended and Restated Master Repurchase Agreement, dated as of July 28, 2016, among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Blackstone Mortgage Trust, Inc. and Citibank, N.A.
31.1	Certification of Chief Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 +	Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2 +	Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.1	Section 13(r) Disclosure
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

+ This exhibit shall not be deemed “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. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

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SIGNATURES

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 thereunto duly authorized.

	BLACKSTONE MORTGAGE TRUST, INC.
October 25, 2016	/s/ Stephen D. Plavin
Date	Stephen D. Plavin
	Chief Executive Officer
	(Principal Executive Officer)
October 25, 2016	/s/ Anthony F. Marone, Jr.
Date	Anthony F. Marone, Jr.
	Chief Financial Officer
	(Principal Financial Officer and
	Principal Accounting Officer)

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EX-10.1

Exhibit 10.1

AMENDMENT NO. 1 TO AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT AND GUARANTEE AGREEMENT

AMENDMENT NO. 1 TO AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT AND GUARANTEE AGREEMENT, dated as of July 25, 2016 (this “Amendment”), among PARLEX 4 UK FINCO, LLC and PARLEX 4 FINANCE, LLC (the “Sellers”), BLACKSTONE MORTGAGE TRUST, INC. (“Guarantor”) and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, a national banking association (“Buyer”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Repurchase Agreement (as defined below).

RECITALS

WHEREAS, Sellers and Buyer are parties to that certain Amended and Restated Master Repurchase Agreement, dated as of January 29, 2016 (as amended hereby, and as further amended, restated, supplemented or otherwise modified and in effect from time to time, the “Repurchase Agreement”);

WHEREAS, in connection therewith, Guarantor entered into that certain Guarantee Agreement in favor of Buyer, dated as of December 20, 2013 (as amended by that certain Amendment No. 1 to Guarantee Agreement, dated as of March 3, 2014, as amended hereby, and as further amended, restated, supplemented or otherwise modified and in effect from time to time, the “Guarantee Agreement”).

WHEREAS, Sellers, Guarantor and Buyer have agreed, subject to the terms and conditions hereof, that the Repurchase Agreement and the Guarantee Agreement shall each be amended as set forth in this Amendment.

NOW THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Sellers, Guarantor and Buyer each agree as follows:

SECTION 1. Amendments to Repurchase Agreement.

(a) Clause (i) of the definition of “Applicable Spread”, as set forth in Article 2 of the Repurchase Agreement, is hereby amended by inserting the text “or Loan Spread, as applicable,” immediately following the words “applicable LTV” in the fifth line thereof.

(b) Article 2 of the Repurchase Agreement is hereby amended by inserting the following new definitions in correct alphabetical order:

“Loan Spread” shall have the meaning set forth in the Fee Letter.

“New Purchased Asset” shall mean any Purchased Asset for which the related Purchase Date occurred on or after July 25, 2016.

“Vintage Purchased Asset” shall mean any Purchased Asset for which the related Purchase Date occurred prior to July 25, 2016.

(c) The definition of “Maturity Date”, as set forth in Article 2 of the Repurchase Agreement, is hereby amended by deleting the date “January 7, 2018” and inserting the date “January 7, 2019” in lieu thereof.

(d) Article 11 of the Repurchase Agreement is hereby amended by inserting the following new Article 11(cc) in correct alphabetical order:

(cc) Sellers shall promptly (and in any event not later than two (2) Business Days following any Seller’s Knowledge thereof) deliver to Buyer notice of (i) any increase to, amendment of or other modification affecting the Loan Spread of any Purchased Asset and/or (ii) any payment by a Mortgagor of, or the incurrence of any obligation by a Mortgagor to make payment of, any fee approximating a portion of the Loan Spread for any Purchased Asset pursuant to the terms of the related Purchased Asset Documents, in each case, occurring after the Purchase Date of the related Purchased Asset.

SECTION 2. Amendments to Guarantee Agreement.

(a) Section 2(b)(i) of the Guarantee Agreement is hereby amended by deleting the percentage “twenty-five percent (25%)” and inserting the percentage “fifty percent (50%)” in lieu thereof.

SECTION 3. Conditions Precedent. This Amendment shall become effective on the date (the “Amendment Effective Date”) on which this Amendment is executed and delivered by a duly authorized officer of each of Guarantor, Sellers and Buyer, along with delivery to Buyer of a fully-executed Amendment No. 2 to Fee and Pricing Letter between Sellers and Buyer, dated as of the date hereof; provided, that Guarantor and Sellers acknowledge and agree that it shall be a condition subsequent to the effectiveness of this amendment that Guarantor and Sellers shall deliver to Buyer within four (4) Business Days following the Amendment Effective Date customary opinions as to enforceability and corporate matters with respect to Sellers and Guarantor and a bring down letter affirming the legal opinion with respect to the applicability of the Bankruptcy Code safe harbors that was provided to Buyer on the Amendment and Restatement Date.

SECTION 4. Sellers’ Representations and Warranties. On and as of the date first above written, each Seller hereby represents and warrants to Buyer that (a) it is in compliance with all the terms and provisions set forth in the Repurchase Agreement on its part to be observed or performed, (b) after giving effect to this Amendment, no Default or Event of Default under the Repurchase Agreement has occurred and is continuing, and (c) after giving effect to this Amendment, the representations and warranties contained in Article 9 of the Repurchase Agreement are true and correct in all material respects as though made on such date (except for any such representation or warranty that by its terms refers to a specific date other than the date first above written, in which case it shall be true and correct in all material respects as of such other date), (d) such Seller has taken all necessary action to authorize the execution,

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delivery and performance of this Amendment and (e) this Amendment has been duly executed and delivered by or on behalf of such Seller and constitutes the legal, valid and binding obligation of such Seller enforceable against such Seller in accordance with its terms subject to bankruptcy, insolvency, and other limitations on creditors’ rights generally and to equitable principles.

SECTION 5. Guarantor’s Representations and Warranties. On and as of the date first above written, Guarantor hereby represents and warrants to Buyer that (a) Guarantor is in compliance with all of the terms and provisions set forth in the Guarantee Agreement on its part to be observed or performed, (b) after giving effect to this Amendment, no Default or Event of Default under the Repurchase Agreement has occurred and is continuing, (c) after giving effect to this Amendment, the representations and warranties contained in Section 8 of the Guarantee Agreement are true and correct in all material respects as though made on such date (except for any such representation or warranty that by its terms refers to a specific date other than the date first above written, in which case it shall be true and correct in all material respects as of such other date), (d) Guarantor has taken all necessary action to authorize the execution, delivery and performance of this Amendment and (e) this Amendment has been duly executed and delivered by or on behalf of Guarantor and constitutes the legal, valid and binding obligation of Guarantor enforceable against Guarantor in accordance with its terms subject to bankruptcy, insolvency, and other limitations on creditors’ rights generally and to equitable principles.

SECTION 6. Acknowledgments of Guarantor. In connection with the amendments to the Repurchase Agreement set forth in Section 1 of this Amendment, Guarantor hereby acknowledges (a) the execution and delivery of this Amendment by Sellers and agrees that it continues to be bound by the Guarantee Agreement, as amended hereby, notwithstanding the execution and delivery of this Amendment and the impact of the changes set forth herein, and (b) that, as of the date hereof, Buyer is in compliance with its undertakings and obligations under the Repurchase Agreement, the Guarantee Agreement and each of the other Transaction Documents.

SECTION 7. Limited Effect. Except as expressly amended and modified by this Amendment, the Repurchase Agreement and the Guarantee Agreement shall each continue to be, and shall remain, in full force and effect in accordance with their respective terms; provided, however, that upon the Amendment Effective Date, all references in the Repurchase Agreement or the Guarantee Agreement to the “Transaction Documents” shall be deemed to include, in any event, this Amendment. Each reference to Repurchase Agreement or the Guarantee Agreement in any of the Transaction Documents shall be deemed to be a reference to the Repurchase Agreement or the Guarantee Agreement, as applicable, as amended hereby.

SECTION 8. Counterparts. This Amendment may be executed in counterparts, each of which so executed shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment in Portable Document Format (.PDF) or by facsimile transmission shall be effective as delivery of a manually executed original counterpart thereof.

SECTION 9. Costs and Expenses. Sellers and Guarantor shall pay Buyer’s reasonable actual out of pocket costs and expenses, including reasonable fees and expenses of accountants, attorneys and advisors, incurred in connection with the preparation, negotiation, execution and consummation of this Amendment.

-3-

SECTION 10. Submission to Jurisdiction. Each party irrevocably and unconditionally (i) submits to the non-exclusive jurisdiction of any United States Federal or New York State court sitting in Manhattan, and any appellate court from any such court, solely for the purpose of any suit, action or proceeding brought to enforce its obligations under this Amendment or relating in any way to this Amendment and (ii) waives, to the fullest extent it may effectively do so, any defense of an inconvenient forum to the maintenance of such action or proceeding in any such court and any right of jurisdiction on account of its place of residence or domicile.

To the extent that any party has or hereafter may acquire any immunity (sovereign or otherwise) from any legal action, suit or proceeding, from jurisdiction of any court or from set off or any legal process (whether service or notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) with respect to itself or any of its property, such party hereby irrevocably waives and agrees not to plead or claim such immunity in respect of any action brought to enforce its obligations under this Amendment or relating in any way to this Amendment.

The parties hereby irrevocably waive, to the fullest extent each may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding and irrevocably consent to the service of any summons and complaint and any other process by the mailing of copies of such process to them at their respective address specified in the Repurchase Agreement. The parties hereby agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Section 10 shall affect the right of Buyer to serve legal process in any other manner permitted by law or affect the right of Buyer to bring any action or proceeding against any Seller or Guarantor or their property in the courts of other jurisdictions.

SECTION 11. WAIVER OF JULY TRIAL. EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AMENDMENT.

SECTION 12. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5 1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

[SIGNATURES FOLLOW]

-4-

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first above written.

BUYER:
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, a national banking association organized under the laws of the United States
By:	/s/ Thomas N. Cassino
Name:	Thomas N. Cassino
Title:	Executive Director

SELLERS:
PARLEX 4 FINANCE, LLC, a Delaware limited liability company
By:	/s/ Douglas N. Armer
Name:	Douglas N. Armer
Title:	Managing Director, Head of Capital
	Markets and Treasurer
PARLEX 4 UK FINCO, LLC, a Delaware limited liability company
By:	/s/ Douglas N. Armer
Name:	Douglas N. Armer
Title:	Managing Director, Head of Capital
	Markets and Treasurer
GUARANTOR:
BLACKSTONE MORTGAGE TRUST, INC., a Maryland corporation
By:	/s/ Douglas N. Armer
Name:	Douglas N. Armer
Title:	Managing Director, Head of Capital
	Markets and Treasurer

EX-10.2

Exhibit 10.2

FIRST AMENDMENT TO AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT

THIS FIRST AMENDMENT TO AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT (this “Amendment”), dated as of July 28, 2016 (the “Amendment Effective Date”), is made by and among CITIBANK, N.A., having an address at 388 Greenwich Street, 19^th Floor, New York, New York 10013 (together with its successors and/or assigns, “Buyer”), PARLEX 2 FINANCE, LLC, a Delaware limited liability company, having an address c/o Blackstone Mortgage Trust, Inc., 345 Park Avenue, New York, New York 10154 (“Original Seller”), PARLEX 2A FINCO, LLC, a Delaware limited liability company, having an address c/o Blackstone Mortgage Trust, Inc., 345 Park Avenue, New York, New York 10154 (“Joined Seller”; together with Original Seller, collectively, “Seller”) and, for the purpose of acknowledging and agreeing to the provision set forth in Section 3 hereof, BLACKSTONE MORTGAGE TRUST, INC., a Maryland corporation, having an address at 345 Park Avenue, New York, New York 10154 (“Guarantor”).

W I T N E S S E T H: 

WHEREAS, Seller and Buyer have entered into that certain Amended and Restated Master Repurchase Agreement dated as of July 28, 2014 (as the same may be further amended, supplemented, extended, restated, replaced or otherwise modified from time to time, the “Repurchase Agreement”);

WHEREAS, all capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Repurchase Agreement; and

WHEREAS, Seller and Buyer desire to modify certain terms and provisions of the Repurchase Agreement as set forth herein.

NOW, THEREFORE, in consideration of ten dollars ($10) and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Seller and Buyer covenant and agree as follows as of the Amendment Effective Date, and Guarantor acknowledges and agrees as to the provision set forth in Section 3 as of the Amendment Effective Date:

1. Amendment to Repurchase Agreement. The following definition in Section 2 of the Repurchase Agreement is hereby deleted in its entirety and the following corresponding definition is substituted therefor in its proper alphabetical order:

“Facility Availability Period” shall mean the period commencing on June 12, 2013 and ending on July 28, 2019 (or if such day is not a Business Day, the next succeeding Business Day). Notwithstanding anything herein to the contrary, at any time during the Facility Availability Period, Seller may request an extension of the Facility Availability Period which extension shall be in Buyer’s sole discretion and subject to the terms and conditions determined by Buyer in its sole discretion.

2. Omnibus Amendment to Transaction Documents. Any references to the Repurchase Agreement in the Transaction Documents shall hereinafter refer to the Repurchase Agreement as modified by this Amendment.

3. Seller’s Representations. Seller has taken all necessary action to authorize the execution, delivery and performance of this Amendment. This Amendment has been duly executed and delivered by or on behalf of Seller and constitutes the legal, valid and binding obligation of Seller enforceable against Seller in accordance with its terms subject to bankruptcy, insolvency, and other limitations on creditors’ rights generally and to equitable principles. No Event of Default has occurred and is continuing, and no Event of Default will occur as a result of the execution, delivery and performance by Seller of this Amendment. Any consent, approval, authorization, order, registration or qualification of or with any Governmental Authority required for the execution, delivery and performance by Seller of this Amendment has been obtained and is in full force and effect (other than consents, approvals, authorizations, orders, registrations or qualifications that if not obtained, are not reasonably likely to have a Material Adverse Effect).

4. Reaffirmation of Guaranty. Guarantor has executed this Amendment for the purpose of acknowledging and agreeing that, notwithstanding the execution and delivery of this Amendment and the amendment of the Repurchase Agreement hereunder, all of Guarantor’s obligations under the Guaranty remain in full force and effect and the same are hereby irrevocably and unconditionally ratified and confirmed by Guarantor in all respects.

5. Full Force and Effect. Except as expressly modified hereby, all of the terms, covenants and conditions of the Repurchase Agreement and the other Transaction Documents remain unmodified and in full force and effect and are hereby ratified and confirmed by Seller. Any inconsistency between this Amendment and the Repurchase Agreement (as it existed before this Amendment) shall be resolved in favor of this Amendment, whether or not this Amendment specifically modifies the particular provision(s) in the Repurchase Agreement inconsistent with this Amendment. All references to the “Agreement” in the Repurchase Agreement or to the “Repurchase Agreement” in any of the other Transaction Documents shall mean and refer to the Repurchase Agreement as modified and amended hereby.

6. No Waiver. The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Buyer under the Repurchase Agreement, the Guaranty, any of the other Transaction Documents or any other document, instrument or agreement executed and/or delivered in connection therewith.

7. Headings. Each of the captions contained in this Amendment are for the convenience of reference only and shall not define or limit the provisions hereof.

8. Counterparts. This Amendment may be executed in any number of counterparts, and all such counterparts shall together constitute the same agreement. Signatures delivered by email (in PDF format) shall be considered binding with the same force and effect as original signatures

9. Governing Law. This Amendment shall be governed in accordance with the terms and provisions of Section 20 of the Repurchase Agreement.

2

[No Further Text on this Page; Signature Pages Follow]

3

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly authorized representatives as of the day and year first above written and effective as of the Amendment Effective Date.

SELLER:
PARLEX 2 FINANCE, LLC,
a Delaware limited liability company
By:	/s/ Douglas N. Armer
Name:	Douglas N. Armer
Title:	Managing Director, Head of Capital Markets and Treasurer
PARLEX 2A FINCO, LLC,
a Delaware limited liability company
By:	/s/ Douglas N. Armer
Name:	Douglas N. Armer
Title:	Managing Director, Head of Capital Markets and Treasurer
GUARANTOR:
BLACKSTONE MORTGAGE TRUST, INC.,
a Maryland corporation
By:	/s/ Douglas N. Armer
Name:	Douglas N. Armer
Title:	Managing Director, Head of Capital Markets and Treasurer

:

[Signatures Continued on Next Page]

BUYER:
CITIBANK, N.A.
By:	/s/ Richard B. Schlenger
Name:	Richard B. Schlenger
Title:	Authorized Signatory

EX-31.1

Exhibit 31.1

CERTIFICATION

PURSUANT TO 17 CFR 240.13a-14

PROMULGATED UNDER

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Stephen D. Plavin, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Blackstone Mortgage Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 25, 2016

/s/ Stephen D. Plavin

Stephen D. Plavin

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

PURSUANT TO 17 CFR 240.13a-14

PROMULGATED UNDER

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Anthony F. Marone, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Blackstone Mortgage Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 25, 2016

/s/ Anthony F. Marone, Jr.

Anthony F. Marone, Jr.

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Blackstone Mortgage Trust, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Stephen D. Plavin, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Stephen D. Plavin

Stephen D. Plavin

Chief Executive Officer

October 25, 2016

This certification accompanies each Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Blackstone Mortgage Trust, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Anthony F. Marone, Jr., Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Anthony F. Marone, Jr.

Anthony F. Marone, Jr.

Chief Financial Officer

October 25, 2016

This certification accompanies each Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-99.1

Exhibit 99.1

SECTION 13(r) DISCLOSURE

After Blackstone Mortgage Trust, Inc. (“BXMT”) filed its Form 10-Q for the fiscal quarter ended June 30, 2016 with the Securities and Exchange Commission (the “SEC”), NCR Corporation (“NCR”) which may be considered an affiliate of The Blackstone Group L.P. (“Blackstone”), and, therefore, an affiliate of BXMT, filed the disclosure reproduced below with respect to such period, in accordance with Section 13(r) of the Securities Exchange Act of 1934, as amended. As of the date BXMT filed its Form 10-Q for the quarter ended September 30, 2016 with the SEC, neither Blackstone nor NCR had filed their respective Form 10-Qs for such period. Therefore, the disclosures reproduced below do not include information for the quarter ended September 30, 2016. BXMT did not independently verify or participate in the preparation of the disclosure reproduced below.

NCR included the following disclosure in its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016:

“Disclosure Pursuant to Section 13(r)(1)(D)(iii) of the Securities Exchange Act. Pursuant to Section 13(r)(1)(D)(iii) of the Securities Exchange Act of 1934, as amended, we note that, during the period from April 1, 2016 through April 30, 2016, we continued to maintain a bank account and guarantees at the Commercial Bank of Syria (“CBS”), which was designated as a Specially Designated National pursuant to Executive Order 13382 (“EO 13382”) on August 10, 2011. This bank account and the guarantees at CBS were maintained in the normal course of business prior to the listing of CBS pursuant to EO 13382. We note that the last known account balance as of April 30, 2016 was approximately $3,468. The bank account did not generate interest from April 1, 2016 through April 30, 2016, and the guarantees did not generate any revenue or profits for the Company. Pursuant to a license granted to the Company by OFAC on January 3, 2013, and subsequent licenses granted on April 29, 2013, July 12, 2013, February 28, 2014, November 12, 2014, and October 24, 2015, the Company had been engaged in winding down its past operations in Syria. The Company’s last such license expired on April 30, 2016. In addition, the Company’s application to renew its license to transact business with CBS, which was submitted to OFAC on May 18, 2015, was not acted upon prior to the expiration of the Company’s last such license. As a result, and in connection with the license expiration, the Company abandoned its remaining property in Syria, which, including the CBS account, was commercially insignificant, and ended the employment of its final two employees in Syria, who had remained employed by the Company to assist with the execution of the Company’s wind-down activities pursuant to authority granted by the OFAC licenses. The Company does not intend to engage in any further business activities with CBS.”

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 18, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Trading Symbol	BXMT
Entity Registrant Name	BLACKSTONE MORTGAGE TRUST, INC.
Entity Central Index Key	0001061630
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		93,913,194

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 94,061	$ 96,450
Restricted cash	877	9,556
Loans receivable, net	8,347,712	9,077,007
Equity investments in unconsolidated subsidiaries	1,678	9,441
Other assets	66,613	184,119
Total Assets	8,510,941	9,376,573
Liabilities and Equity
Secured debt agreements	5,320,358	6,116,105
Loan participations sold	409,654	497,032
Convertible notes, net	166,064	164,026
Other liabilities	110,067	93,679
Total Liabilities	6,006,143	6,870,842
Commitments and contingencies
Equity
Class A common stock, $0.01 par value, 200,000,000 shares authorized, 93,912,936 and 93,702,326 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively	939	937
Additional paid-in capital	3,084,948	3,070,200
Accumulated other comprehensive loss	(46,389)	(32,758)
Accumulated deficit	(535,804)	(545,791)
Total Blackstone Mortgage Trust, Inc. stockholders' equity	2,503,694	2,492,588
Non-controlling interests	1,104	13,143
Total Equity	2,504,798	2,505,731
Total Liabilities and Equity	$ 8,510,941	$ 9,376,573

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value in dollars per share	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	93,912,936	93,702,326
Common stock, shares outstanding	93,912,936	93,702,326

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income from loans and other investments
Interest and related income	$ 128,190	$ 138,361	$ 381,686	$ 282,249
Less: Interest and related expenses	45,373	51,329	139,819	106,125
Income from loans and other investments, net	82,817	87,032	241,867	176,124
Other expenses
Management and incentive fees	13,701	13,813	43,161	28,535
General and administrative expenses	7,414	5,295	20,990	28,655
Total other expenses	21,115	19,108	64,151	57,190
Gain (loss) on investments at fair value	2,824	(82)	13,413	22,108
Income from equity investments in unconsolidated subsidiaries	2,060	17	2,192	5,677
Income before income taxes	66,586	67,859	193,321	146,719
Income tax provision	194	81	281	431
Net income	66,392	67,778	193,040	146,288
Net income attributable to non-controlling interests	(1,598)	(890)	(8,119)	(14,724)
Net income attributable to Blackstone Mortgage Trust, Inc.	$ 64,794	$ 66,888	$ 184,921	$ 131,564
Net income per share of common stock basic and diluted	$ 0.69	$ 0.72	$ 1.97	$ 1.69
Weighted-average shares of common stock outstanding basic and diluted	94,071,537	93,357,960	94,067,923	77,752,247
Dividends declared per share of common stock	$ 0.62	$ 0.62	$ 1.86	$ 1.66

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Net income	$ 66,392	$ 67,778	$ 193,040	$ 146,288
Other comprehensive loss
Unrealized loss on foreign currency remeasurement	(10,128)	(23,148)	(25,472)	(27,484)
Unrealized gain on derivative financial instruments	5,882	14,891	11,841	14,920
Comprehensive income	62,146	59,521	179,409	133,724
Comprehensive income attributable to non-controlling interests	(1,598)	(890)	(8,119)	(14,724)
Comprehensive income attributable to Blackstone Mortgage Trust, Inc.	$ 60,548	$ 58,631	$ 171,290	$ 119,000

XML

Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Class A Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]	Stockholders' Equity [Member]	Non-Controlling Interests [Member]
Balance at Dec. 31, 2014	$ 1,500,886	$ 583	$ 2,027,404	$ (15,024)	$ (547,592)	$ 1,465,371	$ 35,515
Shares of class A common stock issued, net	1,029,535	349	1,029,186			1,029,535
Restricted class A common stock earned	9,599		9,599			9,599
Dividends reinvested	13		192		(179)	13
Deferred directors' compensation	281		281			281
Other comprehensive loss	(12,564)			(12,564)		(12,564)
Net income	146,288				131,564	131,564	14,724
Dividends declared on common stock	(136,674)				(136,674)	(136,674)
Distributions to non-controlling interests	(37,202)						(37,202)
Balance at Sep. 30, 2015	2,500,162	932	3,066,662	(27,588)	(552,881)	2,487,125	13,037
Balance at Dec. 31, 2015	2,505,731	937	3,070,200	(32,758)	(545,791)	2,492,588	13,143
Shares of class A common stock issued, net	2	2				2
Restricted class A common stock earned	14,190		14,190			14,190
Dividends reinvested	20		276		(256)	20
Deferred directors' compensation	282		282			282
Other comprehensive loss	(13,631)			(13,631)		(13,631)
Net income	193,040				184,921	184,921	8,119
Dividends declared on common stock	(174,678)				(174,678)	(174,678)
Distributions to non-controlling interests	(20,158)						(20,158)
Balance at Sep. 30, 2016	$ 2,504,798	$ 939	$ 3,084,948	$ (46,389)	$ (535,804)	$ 2,503,694	$ 1,104

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net income	$ 193,040	$ 146,288
Adjustments to reconcile net income to net cash provided by operating activities
Gain on investments at fair value	(13,413)	(22,108)
Income from equity investments in unconsolidated subsidiaries	(2,192)	(5,677)
Non-cash compensation expense	16,517	14,470
Distributions of income from unconsolidated subsidiaries	8,167	5,007
Amortization of deferred interest on loans	(31,594)	(25,489)
Amortization of deferred financing costs and premiums/discount on debt obligations	15,129	14,684
Changes in assets and liabilities, net
Other assets	8,315	(28,679)
Other liabilities	(6,405)	6,114
Net cash provided by operating activities	187,564	104,610
Cash flows from investing activities
Originations and fundings of loans receivable	(2,300,636)	(6,807,347)
Principal collections and sale proceeds from loans receivable and other assets	3,054,821	1,584,189
Origination and exit fees received on loans receivable	35,388	26,799
Change in restricted cash	8,678	2,528
Net cash provided by (used in) investing activities	798,251	(5,193,831)
Cash flows from financing activities
Borrowings under secured debt agreements	2,225,895	6,560,426
Repayments under secured debt agreements	(2,988,217)	(2,279,837)
Proceeds from sales of loan participations	54,441	256,000
Repayment of loan participations	(92,000)	(238,164)
Payment of deferred financing costs	(12,564)	(19,932)
Receipts under derivative financial instruments	31,668	15,653
Payments under derivative financial instruments	(14,266)	(3,742)
Distributions to non-controlling interests	(20,158)	(37,202)
Net proceeds from issuance of class A common stock	20	1,029,535
Dividends paid on class A common stock	(174,549)	(109,178)
Net cash (used in) provided by financing activities	(989,730)	5,173,559
Net (decrease) increase in cash and cash equivalents	(3,915)	84,338
Cash and cash equivalents at beginning of period	96,450	51,810
Effects of currency translation on cash and cash equivalents	1,526	2,452
Cash and cash equivalents at end of period	94,061	138,600
Supplemental disclosure of cash flows information
Payments of interest	(123,564)	(85,494)
Payments of income taxes	(131)	(125)
Supplemental disclosure of non-cash investing and financing activities
Dividends declared, not paid	(58,388)	(57,800)
Participations sold, net	37,559	17,836
Loan Principal payments held by servicer, net	$ 9,515	$ 232,818

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Organization

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

1. ORGANIZATION

References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us” or “our” refer to Blackstone Mortgage Trust, Inc. and its subsidiaries unless the context specifically requires otherwise.

Blackstone Mortgage Trust is a real estate finance company that originates and purchases senior loans collateralized by properties in North America and Europe. We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of The Blackstone Group L.P., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” We are headquartered in New York City.

We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended. We are organized as a holding company and conduct our business primarily through our various subsidiaries.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated financial statements, including the notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements. Management believes it has made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are presented fairly and that estimates made in preparing its consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the Securities and Exchange Commission.

Basis of Presentation

The accompanying consolidated financial statements include, on a consolidated basis, our accounts, the accounts of our wholly-owned subsidiaries, majority-owned subsidiaries, and variable interest entities, or VIEs, of which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Certain of the assets and credit of our consolidated subsidiaries are not available to satisfy the debt or other obligations of us, our affiliates, or other entities.

One of our subsidiaries, CT Legacy Partners, LLC, or CT Legacy Partners, accounts for its operations in accordance with industry-specific GAAP accounting guidance for investment companies, pursuant to which it reports its investments at fair value. We have retained this accounting treatment in consolidation and, accordingly, report the loans and other investments of CT Legacy Partners at fair value on our consolidated balance sheets.

Certain reclassifications have been made in the presentation of the prior period consolidated statement of cash flows to conform to the current period presentation.

Principles of Consolidation

We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

As of both September 30, 2016 and December 31, 2015, we did not consolidate any VIEs.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may ultimately differ from those estimates.

Revenue Recognition

Interest income from our loans receivable portfolio is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these investments is deferred until the loan is advanced and is then recorded over the term of the loan as an adjustment to yield. Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of our Manager, recovery of income and principal becomes doubtful. Income is then recorded on the basis of cash received until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses are deferred and recognized as a component of interest income, however expenses related to loans we acquire are included in general and administrative expenses as incurred.

Cash and Cash Equivalents

Cash and cash equivalents represent cash held in banks, cash on hand, and liquid investments with original maturities of three months or less. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. We have not experienced, and do not expect, any losses on our cash or cash equivalents.

Restricted Cash

We classify the cash balances held by CT Legacy Partners as restricted because, while these cash balances are available for use by CT Legacy Partners for its operations, they cannot be used by us until our allocable share is distributed from CT Legacy Partners and cannot be commingled with any of our unrestricted cash balances.

Loans Receivable and Provision for Loan Losses

We originate and purchase commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost. We are required to periodically evaluate each of these loans for possible impairment. Impairment is indicated when it is deemed probable that we will not be able to collect all amounts due to us pursuant to the contractual terms of the loan. If a loan is determined to be impaired, we write down the loan through a charge to the provision for loan losses. Impairment of these loans, which are collateral dependent, is measured by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by our Manager. Actual losses, if any, could ultimately differ from these estimates.

Our Manager performs a quarterly review of our portfolio of loans. In conjunction with this review, our Manager assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors, including, without limitation, loan-to-value ratio, or 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: A loan that has a risk of realizing a principal loss.
5 -	Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss.

During the second quarter of 2015, we acquired a portfolio of loans from General Electric Capital Corporation and certain of its affiliates, or the GE portfolio, for a total purchase price of $4.7 billion. We allocated the aggregate purchase price between each loan based on its fair value relative to the overall portfolio, which allocation resulted in purchase discounts or premiums determined on an asset-by-asset basis. Each loan will accrete from its allocated purchase price to its expected collection value over the life of the loan, consistent with the other loans in our portfolio.

Equity Investments in Unconsolidated Subsidiaries

Our carried interest in CT Opportunity Partners I, LP, or CTOPI, is accounted for using the equity method. CTOPI’s assets and liabilities are not consolidated into our financial statements due to our determination that (i) it is not a VIE and (ii) the other investors in CTOPI have sufficient rights to preclude consolidation by us. As such, we report our allocable percentage of the net assets of CTOPI on our consolidated balance sheets. The recognition of income from CTOPI is generally deferred until cash is collected or appropriate contingencies have been eliminated.

Derivative Financial Instruments

We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets at fair value.

On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all derivatives other than those designated as non-designated hedges, we formally document our hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction.

On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. Changes in the fair value of the effective portion of our hedges are reflected in accumulated other comprehensive income (loss) on our consolidated financial statements. Changes in the fair value of the ineffective portion of our hedges are included in net income. Amounts are reclassified out of accumulated other comprehensive income (loss) and into net income when the hedged item is sold, substantially liquidated, or de-designated. To the extent a derivative does not qualify for hedge accounting and is deemed a non-designated hedge, the changes in its value are included in net income.

Repurchase Agreements

We record investments financed with repurchase agreements as separate assets and the related borrowings under any repurchase agreements are recorded as separate liabilities on our consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the repurchase agreements are reported separately on our consolidated statements of operations.

Senior Loan Participations

In certain instances, we finance our loans through the non-recourse syndication of a senior loan interest to a third-party. Depending on the particular structure of the syndication, the senior loan interest may remain on our GAAP balance sheet or, in other cases, the sale will be recognized and the senior loan interest will no longer be included in our consolidated financial statements. When these sales are not recognized under GAAP we reflect the transaction by recording a loan participations sold liability on our consolidated balance sheet, however this gross presentation does not impact stockholders’ equity or net income. When the sales are recognized, our balance sheet only includes our remaining subordinate loan and not the non-consolidated senior interest we sold.

Convertible Notes

The “Debt with Conversion and Other Options” Topic of the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. The initial proceeds from the sale of convertible notes are allocated between a liability component and an equity component in a manner that reflects interest expense at the rate of similar nonconvertible debt that could have been issued at such time. The equity component represents the excess initial proceeds received over the fair value of the liability component of the notes as of the date of issuance. We measured the estimated fair value of the debt component of our convertible notes as of the issuance date based on our nonconvertible debt borrowing rate. The equity component of the convertible notes is reflected within additional paid-in capital on our consolidated balance sheet, and the resulting debt discount is amortized over the period during which the convertible notes are expected to be outstanding (through the maturity date) as additional non-cash interest expense. The additional non-cash interest expense attributable to the convertible notes will increase in subsequent periods through the maturity date as the notes accrete to their par value over the same period.

Deferred Financing Costs

The deferred financing costs that are included as a reduction in the net book value of the related liability on our consolidated balance sheets include issuance and other costs related to our debt obligations. These costs are amortized as interest expense using the effective interest method over the life of the related obligations.

Fair Value of Financial Instruments

The “Fair Value Measurements and Disclosures” Topic, or ASC 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP. Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date.

ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows:

• Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date.

• Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates.

• Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third-parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2.

The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed of members of senior management of our Manager, including our Chief Executive Officer, Chief Financial Officer, and other senior officers.

Certain of our other assets are reported at fair value either (i) on a recurring basis, as of each quarter-end, or (ii) on a nonrecurring basis, as a result of impairment or other events. Our assets that are recorded at fair value are discussed further in Note 14. We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from third-party dealers. For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our Manager’s estimation of the fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations may require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by our Manager.

We are also required by GAAP to disclose fair value information about financial instruments, that are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments.

The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value:

• Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates fair value.

• Restricted cash: The carrying amount of restricted cash approximates fair value.

• Loans receivable, net: The fair values for these loans were estimated by our Manager based on discounted cash flow methodology taking into consideration factors, including capitalization rates, discount rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and indications of market value from other market participants.

• Derivative financial instruments: The fair value of our foreign currency contracts and interest rates caps was valued using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads.

• Secured debt agreements: The fair values for these instruments were estimated based on the rate at which a similar credit facility would have currently priced.

• Loan participations sold: The fair value of these instruments were estimated based on the value of the related loan receivable asset.

• Convertible notes, net: The convertible notes are actively traded and their fair values were obtained using quoted market prices for these instruments.

Income Taxes

Our financial results generally do not reflect provisions for current or deferred income taxes on our REIT taxable income. We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries. If we were to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and penalties. Refer to Note 12 for additional information.

Stock-Based Compensation

Our stock-based compensation consists of awards issued to our Manager and certain of its employees that vest over the life of the awards as well as deferred stock units issued to certain members of our Board of Directors. Stock-based compensation expense is recognized for these awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A common stock. Refer to Note 13 for additional information.

Earnings per Share

Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by the weighted-average number of shares of our class A common stock, including restricted class A common stock and deferred stock units outstanding during the period. Our restricted class A common stock is considered a participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or losses.

Diluted earnings per share, or Diluted EPS, is determined using the treasury stock method, and is based on the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by the weighted-average number of shares of our class A common stock, including restricted class A common stock and deferred stock units. Refer to Note 10 for additional discussion of earnings per share.

Foreign Currency

In the normal course of business, we enter into transactions not denominated in United States, or U.S., dollars. Foreign exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statements of operations. In addition, we consolidate entities that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains, and losses are translated at the average exchange rate over the applicable period. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated subsidiaries are recorded in other comprehensive income.

Underwriting Commissions and Offering Costs

Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common stock offering are expensed when incurred.

Recent Accounting Pronouncements

In August 2016, the FASB issued ASU 2016-15 “Statement of Cash Flows (Topic 230),” or ASU 2016-15. ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance addresses the classification of various transactions including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, distributions received from equity method investments, beneficial interests in securitization transactions, and others. We adopted ASU 2016-15 in the third quarter of 2016 and its adoption did not have a material impact on our consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326),” or ASU 2016-13. ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace the “incurred loss” model under existing guidance with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the impact ASU 2016-13 will have on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting (Topic 718),” or ASU 2016-09. ASU 2016-09 requires all income tax effects of share-based payment awards to be recognized in the income statement relating to the period in which the awards vest or are settled. ASU 2016-09 also allows an employer to repurchase more of an employee’s shares for tax withholding purposes than is permitted under current guidance without triggering liability accounting. Finally, ASU 2016-09 allows a policy election to account for employee forfeitures as they occur. We adopted ASU 2016-09 in the second quarter of 2016 and its adoption did not have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships,” or ASU 2016-05. ASU 2016-05 clarifies that the novation of a derivative contract in a hedge accounting relationship does not, in and of itself, require de-designation of that hedge accounting relationship. Hedge accounting relationships can continue as long as all of the other hedge accounting criteria are met, including the expectation that the hedge will be highly effective when the creditworthiness of the new counterparty to the derivative contract is considered. We adopted ASU 2016-05 in the third quarter of 2016 and its adoption did not have a material impact on our consolidated financial statements, however ASU 2016-05 may allow us to novate derivative contracts in the future without having to de-designate the hedge accounting relationship.

In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” or ASU 2014-15. ASU 2014-15 introduces an explicit requirement for management to assess and provide certain disclosures if there is substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 is effective for the annual period ending after December 15, 2016. We do not anticipate that the adoption of ASU 2014-15 will have a material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” or ASU 2014-09. ASU 2014-09 broadly amends the accounting guidance for revenue recognition. ASU 2014-09 is effective for the first interim or annual period beginning after December 15, 2017, and is to be applied retrospectively. We do not anticipate that the adoption of ASU 2014-09 will have a material impact on our consolidated financial statements.

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Loans Receivable

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Loans Receivable

3. LOANS RECEIVABLE

The following table details overall statistics for our loans receivable portfolio ($ in thousands):

	September 30, 2016			December 31, 2015
Number of loans		106			125
Principal balance	$	8,381,679		$	9,108,361
Net book value	$	8,347,712		$	9,077,007
Unfunded loan commitments(1)	$	929,030		$	700,658
Weighted-average cash coupon(2)		4.85	%		4.84	%
Weighted-average all-in yield(2)		5.22	%		5.18	%
Weighted-average maximum maturity (years)(3)		3.2			3.1

(1) Unfunded commitments will primarily be funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments will be funded over the term of each loan, subject in certain cases to an expiration date.

(2) As of September 30, 2016, our floating rate loans were indexed to various benchmark rates, with 85% of floating rate loans indexed to USD LIBOR. In addition, $277.3 million of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 1.13%, as of September 30, 2016. As of December 31, 2015, our floating rate loans were indexed to various benchmark rates, with 84% of floating rate loans indexed to USD LIBOR. In addition, $147.9 million of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 1.80%, as of December 31, 2015. In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs, purchase discounts, and accrual of both extension and exit fees. Cash coupon and all-in yield assume applicable floating benchmark rate for weighted-average calculation.

(3) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of September 30, 2016, 66% of our loans were subject to yield maintenance or other prepayment restrictions and 34% were open to repayment by the borrower without penalty. As of December 31, 2015, 64% of our loans were subject to yield maintenance or other prepayment restrictions and 36% were open to repayment by the borrower without penalty.

Activity relating to our loans receivable portfolio was as follows ($ in thousands):

	Principal Balance			Deferred Fees / Other Items(1)			Net Book Value
December 31, 2015	$	9,108,361		$	(31,354)		$	9,077,007
Loan fundings		2,300,636			—			2,300,636
Loan repayments and sales		(2,942,705	)		—			(2,942,705	)
Unrealized (loss) gain on foreign currency translation		(84,613	)		1,181			(83,432	)
Deferred fees and other items(1)		—			(35,388	)		(35,388	)
Amortization of fees and other items(1)		—			31,594			31,594
September 30, 2016	$	8,381,679		$	(33,967	)	$	8,347,712

(1) Other items primarily consist of purchase discounts or premiums, exit fees, and deferred origination expenses.

The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio ($ in thousands):

September 30, 2016
Property Type	Number of Loans		Net Book Value		Total Loan Exposure(1)		Percentage of Portfolio
Office		55	$	4,540,394	$	4,610,800		50	%
Hotel		17		1,761,751		1,832,501		19
Retail		10		823,184		1,215,822		13
Multifamily		8		586,910		588,809		6
Condominium		2		85,436		315,816		3
Manufactured housing		9		297,726		297,847		3
Other		5		252,311		575,948		6
		106	$	8,347,712	$	9,437,543		100	%
Geographic Location	Number of Loans		Net Book Value		Total Loan Exposure(1)		Percentage of Portfolio
United States
Northeast		25	$	2,449,223	$	2,461,548		25	%
Southeast		20		1,343,942		1,739,465		18
West		21		1,496,295		1,733,491		18
Midwest		6		618,939		621,012		7
Southwest		9		444,381		443,653		5
Northwest		4		245,934		293,039		3
Subtotal		85		6,598,714		7,292,208		76
International
United Kingdom		9		930,677		1,276,234		14
Canada		8		477,466		474,182		5
Germany		1		218,855		271,922		3
Spain		1		68,572		69,198		1
Netherlands		2		53,428		53,799		1
Subtotal		21		1,748,998		2,145,335		24
Total		106	$	8,347,712	$	9,437,543		100	%

(1) 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. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.1 billion of such non-consolidated senior interests as of September 30, 2016.

December 31, 2015
Property Type	Number of Loans		Net Book Value		Total Loan Exposure(1)		Percentage of Portfolio
Office		55	$	4,039,521	$	4,085,007		41	%
Hotel		20		1,903,544		1,986,113		20
Manufactured housing		18		1,361,572		1,359,132		13
Retail		9		684,944		1,031,405		10
Multifamily		11		580,112		582,545		6
Condominium		3		127,434		353,144		3
Other		9		379,880		750,780		7
		125	$	9,077,007	$	10,148,126		100	%
Geographic Location	Number of Loans		Net Book Value		Total Loan Exposure(1)		Percentage of Portfolio
United States
Northeast		25	$	2,260,392	$	2,272,163		22	%
Southeast		27		1,836,766		2,185,609		21
West		22		1,125,238		1,356,301		13
Southwest		15		1,035,839		1,034,732		10
Midwest		5		616,964		617,774		6
Northwest		5		390,307		415,207		4
Subtotal		99		7,265,506		7,881,786		76
International
United Kingdom		10		888,998		1,283,644		13
Canada		11		561,023		558,724		6
Germany		2		235,294		296,424		3
Spain		1		66,661		67,416		1
Netherlands		2		59,525		60,132		1
Subtotal		26		1,811,501		2,266,340		24
Total		125	$	9,077,007	$	10,148,126		100	%

(1) 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. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.0 billion of such non-consolidated senior interests as of December 31, 2015.

Loan Risk Ratings

As further described in Note 2, our Manager evaluates our loan portfolio on a quarterly basis. In conjunction with our quarterly loan portfolio review, our Manager assesses the risk factors of each loan, and assigns a risk rating based on several factors. Factors considered in the assessment include, but are not limited to, risk of loss, current LTV, debt yield, collateral performance, structure, exit plan, and sponsorship. Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2.

The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings ($ in thousands):

September 30, 2016						December 31, 2015
Risk Rating	Number of Loans	Net Book Value		Total Loan Exposure(1)		Risk Rating		Number of Loans	Net Book Value		Total Loan Exposure(1)
1	10	$	456,047	$	456,905		1	12	$	919,991	$	925,443
2	53		3,882,247		3,935,513		2	77		5,929,447		6,316,890
3	43		4,009,418		5,045,125		3	35		2,114,531		2,792,510
4	—		—		—		4	1		113,038		113,283
5	—		—		—		5	—		—		—
	106	$	8,347,712	$	9,437,543			125	$	9,077,007	$	10,148,126

(1) 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. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.1 billion and $1.0 billion of such non-consolidated senior interests as of September 30, 2016 and December 31, 2015, respectively.

The weighted-average risk rating of our total loan exposure was 2.5 and 2.2 as of September 30, 2016 and December 31, 2015, respectively. The increase in weighted-average portfolio risk rating was primarily driven by repayments of loans with lower risk ratings and origination of loans with a “3” risk rating, and not rating downgrades in the existing portfolio.

We did not have any impaired loans, nonaccrual loans, or loans in maturity default as of September 30, 2016 or December 31, 2015. During the third quarter of 2015, one of the loans in our portfolio experienced a maturity default as a result of not meeting certain loan covenants. The loan was subsequently modified to include, among other changes: a redetermination of asset release pricing; an additional contribution of capital by the borrower; and an extension of the maturity date to February 28, 2017. During the nine months ended September 30, 2016, three of the assets collateralizing the $113.3 million loan were sold and the loan was partially repaid by $102.6 million, resulting in a net book value of $10.2 million as of September 30, 2016. The loan’s risk rating was upgraded from “4” as of December 31, 2015 to a “2” as of September 30, 2016 as a result of the collateral asset sales and resulting loan repayments, and positive leasing activity at the remaining collateral assets. As of September 30, 2016 and December 31, 2015, the borrower was current with all terms of the loan and we expect to collect all contractual amounts due thereunder.

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Equity Investments in Unconsolidated Subsidiaries

9 Months Ended

Sep. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Equity Investments in Unconsolidated Subsidiaries

4. EQUITY INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

As of September 30, 2016, our equity investments in unconsolidated subsidiaries consisted solely of our carried interest in CTOPI, a fund sponsored and managed by an affiliate of our Manager. Activity relating to our equity investments in unconsolidated subsidiaries was as follows ($ in thousands):

	CTOPI Carried Interest
Total as of December 31, 2015	$	9,441
Distributions		(8,167	)
Income allocation(1)		404
Total as of September 30, 2016	$	1,678

(1) In instances where we have not received cash or all appropriate contingencies have not been eliminated, we have deferred the recognition of promote revenue allocated to us from CTOPI in respect of our carried interest in CTOPI, and recorded an offsetting liability as a component of other liabilities on our consolidated balance sheets.

Our carried interest in CTOPI entitles us to earn promote revenue 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 partners. As of September 30, 2016, we had been allocated $1.7 million of promote revenue from CTOPI based on a hypothetical liquidation of the fund at its net asset value. Accordingly, we have recognized this allocation as an equity investment in CTOPI on our consolidated balance sheets. Generally, we defer recognition of income from CTOPI until cash is received or earned, pending distribution, and appropriate contingencies have been eliminated. We recognized $2.2 million of promote income from CTOPI in respect of our carried interest and recorded such amounts as income in our consolidated statement of operations during the nine months ended September 30, 2016, compared to $5.7 million during the same period in 2015. This carried interest was either received in cash, or was earned and available in cash at CTOPI pending future distribution as of each respective balance sheet date.

CTOPI Incentive Management Fee Grants

In January 2011, we created a management compensation pool for employees equal to 45% of the CTOPI promote distributions received by us. Approximately 68% of the pool is two-thirds vested as of September 30, 2016, with the remainder contingent on continued employment with an affiliate of our Manager and upon our receipt of promote distributions from CTOPI. The remaining 32% of the pool is fully vested as a result of an acceleration event. During the nine months ended September 30, 2016, we recognized $1.1 million under the CTOPI incentive plan, compared to $2.6 million for the same period in 2015. Such amounts were recognized as a component of general and administrative expenses in our consolidated statement of operations.

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Other Assets and Liabilities

9 Months Ended

Sep. 30, 2016

Text Block [Abstract]

Other Assets and Liabilities

5. OTHER ASSETS AND LIABILITIES

The following table details the components of our other assets ($ in thousands):

	September 30,		December 31,
	2016		2015
Loan portfolio payments held by servicer(1)	$	33,050	$	122,666
Accrued interest receivable		31,323		37,161
Real estate debt and equity investments, at fair value(2)		1,441		14,220
Prepaid expenses		325		890
Derivative assets		268		8,657
Prepaid taxes		206		525
Total	$	66,613	$	184,119

(1) Represents loan principal and interest payments held by our third-party loan servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle.

(2) Real estate debt and equity investments consists of assets held by CT Legacy Partners and are measured at fair value.

As of September 30, 2016, our other liabilities primarily included $58.2 million of accrued dividends payable, $22.8 million of secured debt repayments pending servicer remittance as of the balance sheet date, and $13.7 million of accrued management and incentive fees payable to our Manager. As of December 31, 2015, our other liabilities primarily included $58.1 million of accrued dividends payable and $14.4 million of accrued management and incentive fees payable to our Manager.

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Secured Debt Agreements

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Secured Debt Agreements

6. SECURED DEBT AGREEMENTS

Our secured debt agreements include revolving repurchase facilities, the GE portfolio acquisition facility, asset-specific financings, and a revolving credit agreement. The following table details our secured debt agreements ($ in thousands):

	Secured Debt Agreements
	Borrowings Outstanding
	September 30, 2016			December 31, 2015
Revolving repurchase facilities	$	3,044,434		$	2,495,805
GE portfolio acquisition facility		1,587,822			3,161,291
Asset-specific financings		653,652			474,655
Revolving credit agreement		50,000			—
Total secured debt agreements	$	5,335,908		$	6,131,751
Deferred financing costs(1)		(15,550	)		(15,646	)
Net book value of secured debt	$	5,320,358		$	6,116,105

(1) Costs incurred in connection with our secured debt agreements are recorded on our consolidated balance sheet when incurred and recognized as a component of interest expense over the life of each related agreement.

Revolving Repurchase Facilities

The following table details our revolving repurchase facilities ($ in thousands):

	September 30, 2016
	Maximum		Collateral		Repurchase Borrowings
Lender	Facility Size(1)		Assets(2)		Potential(3)		Outstanding		Available(3)
Wells Fargo	$	2,000,000	$	1,390,190	$	1,085,153	$	801,271	$	283,882
MetLife		1,000,000		967,359		756,054		756,054		—
Bank of America		750,000		742,081		577,694		577,694		—
JP Morgan(4)		500,000		524,516		403,483		353,630		49,853
Citibank		500,000		623,857		481,572		252,175		229,397
Morgan Stanley(5)		324,200		254,803		200,665		200,665		—
Société Générale(6)		448,880		166,369		131,000		102,945		28,055
	$	5,523,080	$	4,669,175	$	3,635,621	$	3,044,434	$	591,187

	December 31, 2015
	Maximum		Collateral		Repurchase Borrowings
Lender	Facility Size(1)		Assets(2)		Potential(3)		Outstanding		Available(3)
Bank of America	$	750,000	$	840,884	$	665,861	$	618,944	$	46,917
Wells Fargo		1,000,000		879,155		687,200		562,382		124,818
JP Morgan(4)		524,547		589,752		464,723		382,042		82,681
Citibank		500,000		568,032		436,217		344,879		91,338
MetLife		750,000		593,273		462,849		324,587		138,262
Morgan Stanley(5)		370,400		273,280		212,050		209,038		3,012
Société Générale(6)		437,320		67,416		53,933		53,933		—
	$	4,332,267	$	3,811,792	$	2,982,833	$	2,495,805	$	487,028

(1) Maximum facility size represents the largest amount of borrowings available under a given facility once sufficient collateral assets have been approved by the lender and pledged by us.

(2) Represents the principal balance of the collateral assets.

(3) Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each revolving credit facility.

(4) As of September 30, 2016, the JP Morgan maximum facility size was composed of a general $500.0 million facility size, under which U.S. Dollars and British Pound Sterling borrowings are contemplated. As of December 31, 2015, the JP Morgan maximum facility was composed of general $250.0 million facility size plus a general £153.0 million ($226.7 million) facility size provided under a related agreement that contemplated U.S. Dollars and British Pound Sterling borrowings, and additional capacity of ₤32.3 million ($47.8 million) on the ₤153.0 million facility.

(5) The Morgan Stanley maximum facility size represents a £250.0 million facility size that was translated to $324.2 million as of September 30, 2016, and $370.4 million as of December 31, 2015.

(6) The Société Générale maximum facility size represents a €400.0 million facility size that was translated to $448.9 million as of September 30, 2016, and $437.3 million as of December 31, 2015.

The weighted-average outstanding balance of our revolving repurchase facilities was $2.9 billion for the nine months ended September 30, 2016. As of September 30, 2016, we had aggregate borrowings of $3.0 billion outstanding under our revolving repurchase facilities, with a weighted-average cash coupon of LIBOR plus 1.82% per annum, a weighted-average all-in cost of credit, including associated fees and expenses, of LIBOR plus 2.01% per annum, and a weighted-average advance rate of 79.1%. As of September 30, 2016, outstanding borrowings under these facilities had a weighted-average maturity, excluding extension options and term-out provisions, of 1.4 years.

The weighted-average outstanding balance of our revolving repurchase facilities was $2.5 billion for the nine months ended December 31, 2015. As of December 31, 2015, we had aggregated borrowings of $2.5 billion outstanding under our revolving repurchase facilities, with a weighted-average cash coupon of LIBOR plus 1.83% per annum, a weighted-average all-in cost of credit, including associated fees and expenses, of LIBOR plus 2.05% per annum, and a weighted-average advance rate of 78.8%. As of December 31, 2015, outstanding borrowings under these facilities had a weighted-average maturity, excluding extension options and term-out provisions, of 1.3 years.

Borrowings under each facility are subject to the initial approval of eligible collateral loans by the lender and the maximum advance rate and pricing rate of individual advances are determined with reference to the attributes of the respective collateral loan.

The following table outlines the key terms of our revolving repurchase facilities as of September 30, 2016:

Lender	Currency	Rate(1)	Guarantee(2)	Advance Rate(3)	Margin Call(4)	Term/Maturity
Wells Fargo	$	L+1.77%	25%	79.6%	Collateral marks only	Term matched(5)
MetLife	$	L+1.84%	50%	78.8%	Collateral marks only	April 22, 2022(6)
Bank of America	$	L+1.67%	50%	79.3%	Collateral marks only	May 21, 2021(7)
JP Morgan	$ / £	L+1.84%	50%	78.8%	Collateral marks only	January 7, 2019
Citibank	$	L+1.85%	25%	78.3%	Collateral marks only	Term matched(5)
Morgan Stanley	£  / €	L+2.35%	25%	78.8%	Collateral marks only	March 1, 2019
Société Générale	£  / €	L+1.71%	25%	80.0%	Collateral marks only	Term matched(5)

(1) Represents weighted-average cash coupon based on borrowings outstanding. In instances where our borrowings are denominated in currencies other than the U.S. Dollar, interest accrues at a rate equivalent to a margin plus a base rate other than 1-month USD LIBOR, such as 3-month GBP LIBOR, 3-month EURIBOR, or 3-month CDOR.

(2) Other than amounts guaranteed based on specific collateral asset types, borrowings under our revolving repurchase facilities are non-recourse to us.

(3) Represents weighted-average advance rate based on the outstanding principal balance of the collateral assets pledged.

(4) Margin call provisions under our revolving repurchase facilities do not permit valuation adjustments based on capital markets events, and are limited to collateral-specific credit marks.

(5) These revolving repurchase facilities have various availability periods during which new advances can be made and which are generally subject to each lender’s discretion. Maturity dates for advances outstanding are tied to the term of each respective collateral asset.

(6) Includes five one-year extension options which may be exercised at our sole discretion.

(7) Includes two one-year extension options which may be exercised at our sole discretion.

GE Portfolio Acquisition Facility

During the second quarter of 2015, concurrently with our acquisition of the GE portfolio, we entered into an agreement with Wells Fargo to provide us with secured financing for the acquired portfolio. During the second quarter of 2016, we increased the facility size by $125.0 million. As of September 30, 2016, this facility provided for $1.8 billion of financing, of which $1.6 billion was outstanding and an additional $200.5 million was available to finance future loan fundings in the GE portfolio. The GE portfolio acquisition facility is non-revolving and consists of a single master repurchase agreement providing for both (i) asset-specific borrowings for each collateral asset as well as (ii) a sequential pay advance feature.

Asset-Specific Borrowings

The asset-specific borrowings under the GE portfolio acquisition facility were advanced at a weighted-average rate of 80% of our purchase price of the collateral assets and will be repaid pro rata from collateral asset repayment proceeds. The asset-specific borrowings are currency matched to the collateral assets and accrue interest at a rate equal to the sum of (i) the applicable base rate plus (ii) a margin of 1.75%, which will increase to 1.80% and 1.85% in year four and year five, respectively. As of September 30, 2016, those borrowings were denominated in U.S. Dollars, Canadian Dollars, British Pounds Sterling, and Euros. The asset-specific borrowings are term matched to the underlying collateral assets with an outside maturity date of May 20, 2020, which may be extended pursuant to two one-year extension options. We guarantee obligations under the GE portfolio acquisition facility in an amount equal to the greater of (i) 25% of outstanding asset-specific borrowings, and (ii) $250.0 million. We had outstanding asset-specific borrowings of $1.6 billion and $3.1 billion under the GE portfolio acquisition facility as of September 30, 2016 and December 31, 2015, respectively.

Sequential Pay Advance

The GE portfolio acquisition facility also included a sequential pay advance feature that provided for $237.2 million of borrowings, representing an additional 5% advance against each collateral asset pledged under the facility. As of September 30, 2016, the sequential pay advance borrowings under the GE portfolio acquisition facility had been fully repaid. As of December 31, 2015, we had outstanding sequential pay advance borrowings of $40.7 million. Borrowings under the sequential pay advance accrued interest at a rate equal to the sum of (i) 30-day LIBOR plus (ii) a margin of 3.10%. The sequential pay advance was denominated in U.S. Dollars and was repaid from collateral loan principal repayments, after repayment of the related asset-specific borrowing. The sequential pay advances each had a maturity date that was one year from the date of funding, and we had guaranteed 100% of outstanding borrowings of the sequential pay advance.

Asset-Specific Financings

The following table details statistics for our asset-specific financings ($ in thousands):

	September 30, 2016
Lender	Count		Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)		Guarantee(2)		Wtd. Avg. Term
JP Morgan(3)
Collateral assets		1		$    280,415		$    278,963		L+3.88%		n/a		Jan. 2020
Financing provided		1		233,679		233,541		L+1.89%		$116,839		Jan. 2020
Citibank(3)
Collateral assets		2		201,270		201,135		L+4.45%		n/a		Nov. 2020
Financing provided		2		158,652		158,605		L+2.48%		39,663		Nov. 2020
Deutsche Bank
Collateral assets		1		180,740		178,107		L+5.17%		n/a		Aug. 2021
Financing provided		1		135,075		133,599		L+3.00%		67,538		Aug. 2021
Bank of the Ozarks
Collateral assets		2		108,423		105,630		L+6.20%		n/a		Feb. 2020
Financing provided		2		81,907		80,603		L+3.59%		—		Feb. 2020
Wells Fargo
Collateral assets		1		63,341		62,955		L+6.05%		n/a		Dec. 2019
Financing provided		1		44,339		44,067		L+3.20%		8,868		Dec. 2019
Total
Collateral assets		7		$    834,189		$    826,790		L+4.76%		n/a
Financing provided		7		$    653,652		$    650,415		L+2.57%		$232,908

(1) These floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs.

(2) Other than amounts guaranteed on an asset-by-asset basis, borrowings under our asset-specific financings are non-recourse to us.

(3) Borrowings under these asset specific financings are cross collateralized with the related revolving repurchase facility with the same lender.

	December 31, 2015
Lender	Count		Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)			Guarantee(2)		Wtd. Avg. Term
Wells Fargo(3)
Collateral assets		3	$	319,897	$	318,693		L+4.92	%		n/a		Jun. 2019
Financing provided		3		234,850		234,115		L+2.37	%	$	42,627		Jun. 2019
JP Morgan(3)
Collateral assets		1		274,878		272,632		L+3.88	%		n/a		Jan. 2020
Financing provided		1		214,491		214,391		L+1.94	%		53,623		Jan. 2020
Citibank(3)
Collateral assets		1		36,749		36,514		L+4.42	%		n/a		Oct. 2018
Financing provided		1		25,314		25,293		L+2.08	%		6,329		Oct. 2018
Total
Collateral assets		5	$	631,524	$	627,839		L+4.44	%		n/a
Financing provided		5	$	474,655	$	473,799		L+2.16	%	$	102,579

(1) These floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs.

(2) Other than amounts guaranteed on an asset-by-asset basis, borrowings under our asset-specific financings are non-recourse to us.

(3) Borrowings under these asset specific financings are cross collateralized with the related revolving repurchase facility with the same lender.

The weighted-average outstanding balance of our asset-specific financings was $557.9 million for the nine months ended September 30, 2016 and $574.3 million for the nine months ended December 31, 2015.

Revolving Credit Agreement

During the second quarter of 2016, we entered into a $125.0 million full recourse secured revolving credit agreement with Barclays that is designed to finance first mortgage originations for up to six months as a bridge to term financing or syndication. Advances under the agreement are subject to availability under a specified borrowing base and accrue interest at a per annum pricing rate equal to the sum of (i) an applicable base rate or Eurodollar rate and (ii) an applicable margin, in each case, dependent on the applicable type of loan collateral. The initial maturity date of the facility is April 4, 2018 and is subject to two one-year extension options, exercisable at our option.

During the three months ended September 30, 2016, the weighted-average outstanding borrowings under the revolving credit agreement were $24.5 million, and we recorded interest expense of $421,000, including $127,000 of amortization of deferred fees and expenses. During the nine months ended September 30, 2016, the weighted-average outstanding borrowings under the revolving credit agreement were $29.7 million and we recorded interest expense of $915,000, including $248,000 of amortization of deferred fees and expenses. As of September 30, 2016 we had $50.0 million outstanding borrowings under the agreement.

Debt Covenants

Each of the guarantees related to our secured debt agreements contain the following uniform financial covenants: (i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to fixed charges, as defined in the agreements, shall be not less than 1.4 to 1.0; (ii) our tangible net worth, as defined in the agreements, shall not be less than $1.9 billion as of each measurement date plus 75% of the net cash proceeds of future equity issuances subsequent to September 30, 2016; (iii) cash liquidity shall not be less than the greater of (x) $10.0 million or (y) 5% of our recourse indebtedness; and (iv) our indebtedness shall not exceed 83.33% of our total assets. As of September 30, 2016 and December 31, 2015, we were in compliance with these covenants.

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Loan Participations Sold

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Loan Participations Sold

7. LOAN PARTICIPATIONS SOLD

The financing of a loan by the non-recourse sale of a senior interest in the loan through a participation agreement generally does not qualify as a sale under GAAP. Therefore, in the instance of such sales, we present the whole loan as an asset and the loan participation sold as a liability on our consolidated balance sheet until the loan is repaid. The obligation to pay principal and interest on these liabilities is generally based on the performance of the related loan obligation. The gross presentation of loan participations sold does not impact stockholders’ equity or net income.

The following table details statistics for our loan participations sold ($ in thousands):

	September 30, 2016
Loan Participations Sold	Count	Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)			Guarantee(2)		Wtd. Avg. Term
Total loan	2	$	495,912	$	492,133		L+4.51	%		n/a	Sep. 2019
Senior participation(3)(4)	2		411,427		409,654		L+2.71	%	$	31,123	Sep. 2019
	December 31, 2015
Loan Participations Sold	Count	Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)			Guarantee(2)		Wtd. Avg. Term
Total loan	3	$	608,554	$	604,321		L+4.15	%		n/a	Nov. 2018
Senior participation(3)(4)	3		498,992		497,032		L+2.49	%	$	35,558	Nov. 2018

(1) Our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred fees / financing costs.

(2) Other than one instance where we entered into a related guarantee agreement for £24.0 million ($31.1 million as of September 30, 2016), our loan participations sold are non-recourse to us.

(3) During the three and nine months ended September 30, 2016, we recorded $3.4 million and $10.7 million, respectively, of interest expense related to our loan participations sold, of which $3.2 million and $10.3 million was paid in cash. During the three and nine months ended September 30, 2015, we recorded $5.2 million and $14.4 million, respectively, of interest expense related to our loan participations sold, of which $4.5 million and $13.2 million was paid in cash.

(4) The difference between principal balance and book value of loan participations sold is due to deferred financing costs of $1.8 million and $2.0 million as of September 30, 2016 and December 31, 2015, respectively.

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Convertible Notes, Net

9 Months Ended

Sep. 30, 2016

Text Block [Abstract]

Convertible Notes, Net

8. CONVERTIBLE NOTES, NET

In November 2013, we issued $172.5 million of 5.25% convertible senior notes due on December 1, 2018, or Convertible Notes. The Convertible Notes’ issuance costs are amortized through interest expense over the life of the Convertible Notes using the effective interest method. Including this amortization, our all-in cost of the Convertible Notes is 5.87% per annum.

The Convertible Notes are convertible at the holders’ option into shares of our class A common stock, only under specific circumstances prior to the close of business on August 31, 2018, at the applicable conversion rate in effect on the conversion date. Thereafter, the Convertible Notes are convertible at the option of the holder at any time until the second scheduled trading day immediately preceding the maturity date. The Convertible Notes were not convertible as of September 30, 2016. The conversion rate was initially set to equal 34.8943 shares of class A common stock per $1,000 principal amount of Convertible Notes, which was equivalent to an initial conversion price of $28.66 per share of class A common stock, subject to adjustment upon the occurrence of certain events. As a result of exceeding the cumulative dividend threshold as defined in the Convertible Notes Supplemental Indenture, the conversion rate was adjusted on September 28, 2016 to 35.7236 shares of Class A common stock per $1,000 principal amount of Convertible Notes, which is equivalent to a conversion price of $27.99 per share of class A common stock. We may not redeem the Convertible Notes prior to maturity. The average share price of our Class A common stock of $28.95 during the three months ended September 30, 2016 was greater than the per share conversion price of the Convertible Notes. We have the intent and ability to settle the Convertible Notes in cash and, as a result, the Convertible Notes did not have any impact on our diluted earnings per share.

Upon issuance of the Convertible Notes, we recorded a $9.1 million discount based on the implied value of the conversion option and an assumed effective interest rate of 6.50%, as well as $4.1 million of initial issuance costs. Including the amortization of this discount and the issuance costs, our total cost of the Convertible Notes is 7.16% per annum. During the three months ended September 30, 2016, we incurred total interest on our convertible notes of $3.0 million, of which $2.3 million related to cash coupon and $691,000 related to the amortization of discount and certain issuance costs. During the nine months ended September 30, 2016, we incurred total interest on our convertible notes of $8.8 million, of which $6.8 million related to cash coupon and $2.0 million related to the amortization of discount and certain issuance costs. During the three months ended September 30, 2015, we incurred total interest on our convertible notes of $2.9 million, of which $2.3 million related to cash coupon and $649,000 related to the amortization of discount and certain issuance costs. During the nine months ended September 30, 2015, we incurred total interest on our convertible notes of $8.7 million, of which $6.8 million related to cash coupon and $1.9 million related to the amortization of discount and certain issuance costs.

As of September 30, 2016, the Convertible Notes were carried on our consolidated balance sheet at $166.1 million, net of an unamortized discount of $6.2 million and deferred financing costs of $231,000. As of December 31, 2015, the Convertible Notes were carried on our consolidated balance sheet at $164.0 million, net of an unamortized discount of $8.2 million and deferred financing costs of $305,000. Accrued interest payable for the Convertible Notes was $3.0 million and $755,000 as of September 30, 2016 and December 31, 2015, respectively. Refer to Note 2 for additional discussion of our accounting policies for the Convertible Notes.

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

9. DERIVATIVE FINANCIAL INSTRUMENTS

The sole objective of our use of derivative financial instruments is to minimize the risks and/or costs associated with our investments and/or financing transactions. These derivatives may or may not qualify as net investment, cash flow, or fair value hedges under the hedge accounting requirements of ASC 815 – “Derivatives and Hedging.” Derivatives not designated as hedges are not speculative and are used to manage our exposure to interest rate movements and other identified risks. For more information on the accounting for designated and non-designated hedges, refer to Note 2.

The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these contractual arrangements do not perform as agreed. To mitigate this risk, we only enter into derivative financial instruments with counterparties that have appropriate credit ratings and are major financial institutions with which we and our affiliates may also have other financial relationships. We do not anticipate that any of the counterparties will fail to meet their obligations.

Net Investment Hedges of Foreign Currency Risk

Certain of our international investments expose us to fluctuations in foreign interest rates and currency exchange rates. These fluctuations may impact the value of our cash receipts and payments in terms of our functional currency, the U.S. Dollar. We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S. Dollar.

The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amount in thousands):

September 30, 2016				December 31, 2015
Foreign Currency Derivatives	Number of Instruments	Notional Amount		Foreign Currency Derivatives	Number of Instruments	Notional Amount
Sell CAD Forward	1	C$	119,600	Sell CAD Forward	2	C$	154,900
Sell GBP Forward	1	£	117,900	Sell GBP Forward	2	£	90,400
Sell EUR Forward	1	€	44,900	Sell EUR Forward	1	€	49,000

Cash Flow Hedges of Interest Rate Risk

Certain of our financing transactions expose us to a fixed versus floating rate mismatch between our assets and liabilities. We use derivative financial instruments, which include interest rate caps and swaps, and may also include interest rate options, floors, and other interest rate derivative contracts, to hedge interest rate risk associated with our borrowings where there is potential for an index mismatch.

The following tables detail our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (notional amount in thousands):

September 30, 2016
Interest Rate Derivatives	Number of Instruments	Notional Amount		Rate/ Strike	Index	Wtd.-Avg. Maturity (Years)
Interest Rate Swaps	2	C$	17,273	1.0%	CDOR	3.9
Interest Rate Caps	25	$	1,086,261	2.0%	USD LIBOR	0.6
Interest Rate Caps	6	C$	439,320	2.0%	CDOR	0.6
Interest Rate Caps	1	£	15,142	2.0%	GBP LIBOR	0.6
December 31, 2015
Interest Rate Derivatives	Number of Instruments	Notional Amount		Strike	Index	Wtd.-Avg. Maturity (Years)
Interest Rate Caps	26	$	1,097,632	2%	USD LIBOR	1.3
Interest Rate Caps	7	C$	483,286	2%	CDOR	1.2
Interest Rate Caps	1	€	152,710	2%	EURIBOR	1.0
Interest Rate Caps	1	£	15,142	2%	GBP LIBOR	1.3

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our floating rate debt. During the twelve months following September 30, 2016, we estimate that an additional $1.4 million will be reclassified from accumulated other comprehensive income as an increase to interest expense. Additionally, during the three and nine months ended September 30, 2016 and 2015, we did not record any hedge ineffectiveness in our consolidated statements of operations.

Non-designated Hedges

During the three and nine months ended September 30, 2016, we recorded unrealized losses of $528,000 and $2.2 million, respectively, related to non-designated hedges that were reported as a component of interest expense in our consolidated financial statements. We recorded losses of $748,000 and $759,000 during the three and nine months ended September 30, 2015, respectively.

The following table summarizes our non-designated hedges (notional amount in thousands):

September 30, 2016				December 31, 2015
Non-designated Hedges	Number of Instruments	Notional Amount		Non-designated Hedges	Number of Instruments	Notional Amount
Interest Rate Caps	2	€	152,710	Interest Rate Caps	4	C$	67,303
Interest Rate Caps	3	C$	52,630	Interest Rate Caps	1	$	13,387
Buy GBP / Sell EUR	1	€	12,857	Buy GBP / Sell EUR Forward	1	€	12,857
Buy USD / Sell CAD	1	C$	7,000	Buy GBP / Sell USD Forward	1	£	10,400
Buy CAD / Sell USD	1	C$	7,000	Buy USD / Sell GBP Forward	1	£	10,400
				Buy CAD / Sell USD Forward	1	C$	1,000
				Buy USD / Sell CAD Forward	1	C$	1,000

Valuation of Derivative Instruments

The following table summarizes the fair value of our derivative financial instruments ($ in thousands):

	Fair Value of Derivatives in an Asset Position(1) as of				Fair Value of Derivatives in a Liability Position(2) as of
	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	251	$	7,999	$	895	$	511
Interest rate derivatives		—		238		25		—
Total derivatives designated as hedging instruments	$	251	$	8,237	$	920	$	511
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	17	$	419	$	221	$	937
Interest rate derivatives		—		1		—		—
Total derivatives not designated as hedging instruments	$	17	$	420	$	221	$	937
Total Derivatives	$	268	$	8,657	$	1,141	$	1,448

(1) Included in other assets in our consolidated balance sheets.

(2) Included in other liabilities in our consolidated balance sheets.

The following table presents the effect of our derivative financial instruments on our consolidated statements of operations ($ in thousands):

	Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)					Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion)
Derivatives in Hedging Relationships	Three Months Ended September 30, 2016		Nine Months Ended September 30, 2016					Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
Net Investment
Foreign exchange contracts(1)	$	5,627	$	11,748			Interest Expense	$	—		$	—
Cash Flow Hedges
Interest rate derivatives		14		(274	)		Interest Expense		(241	)		(367	)
Total	$	5,641	$	11,474				$	(241	)	$	(367	)

(1) During the three and nine months ended September 30, 2016, we received net cash settlements of $19.2 million and $17.4 million, respectively, on our foreign currency forward contracts, compared to receiving $10.8 million and $13.7 million during the same periods in 2015. Those amounts are included as a component of accumulated other comprehensive loss on our consolidated balance sheets.

Credit-Risk Related Contingent Features

We have entered into agreements with certain of our derivative counterparties that contain provisions where if we were to default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, we may also be declared in default on our derivative obligations. In addition, certain of our agreements with our derivative counterparties require that we post collateral to secure net liability positions. As of September 30, 2016, we were in a net asset position of $48,000 with one of our derivative counterparties and a net liability position of $921,000 with another of our derivative counterparties. While we were in a net liability position with one counterparty as of September 30, 2016, we were not required to post collateral as our liability position was below the threshold defined in our agreement with this counterparty.

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Equity

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Equity

10. EQUITY

Stock and Stock Equivalents

Authorized Capital

As of September 30, 2016, we had the authority to issue up to 300,000,000 shares of stock, consisting of 200,000,000 shares of class A common stock and 100,000,000 shares of preferred stock. Subject to applicable NYSE listing requirements, our board of directors is authorized to cause us to issue additional shares of authorized stock without stockholder approval. In addition, to the extent not issued, currently authorized stock may be reclassified between class A common stock and preferred stock. We did not have any shares of preferred stock issued and outstanding as of September 30, 2016.

Class A Common Stock and Deferred Stock Units

Holders of shares of our class A common stock are entitled to vote on all matters submitted to a vote of stockholders and are entitled to receive such dividends as may be authorized by our board of directors and declared by us, in all cases subject to the rights of the holders of shares of outstanding preferred stock, if any.

We also issue restricted class A common stock under our stock-based incentive plans. Refer to Note 13 for additional discussion of these long-term incentive plans. In addition to our class A common stock, we also issue deferred stock units to certain members of our board of directors in lieu of cash compensation for services rendered. These deferred stock units are non-voting, but carry the right to receive dividends in the form of additional deferred stock units in an amount equivalent to the cash dividends paid to holders of shares of class A common stock.

The following table details the movement in our outstanding shares of class A common stock, including restricted class A common stock and deferred stock units:

	Nine Months Ended September 30,
Common Stock Outstanding(1)	2016		2015
Beginning balance		93,843,847		58,388,808
Issuance of class A common stock		812		34,780,443
Issuance of restricted class A common stock, net		209,798		162,531
Issuance of deferred stock units		20,850		16,288
Ending balance		94,075,307		93,348,070

(1) Deferred stock units held by members of our board of directors totaled 162,371 and 135,207 as of September 30, 2016 and 2015, respectively.

Dividend Reinvestment and Direct Stock Purchase Plan

On March 25, 2014, we adopted a dividend reinvestment and direct stock purchase plan, under which we registered and reserved for issuance, in the aggregate, 10,000,000 shares of class A common stock. Under the dividend reinvestment component of this plan, our class A common stockholders can designate all or a portion of their cash dividends to be reinvested in additional shares of class A common stock. The direct stock purchase component allows stockholders and new investors, subject to our approval, to purchase shares of class A common stock directly from us. During the three and nine months ended September 30, 2016, we issued 262 shares and 812 shares, respectively, of class A common stock under the dividend reinvestment component of the plan compared to 145 shares and 418 shares for the same periods in 2015. As of September 30, 2016, a total of 9,998,585 shares of class A common stock remained available for issuance under the dividend reinvestment and direct stock purchase plan.

At the Market Stock Offering Program

On May 9, 2014, we entered into equity distribution agreements, or ATM Agreements, pursuant to which we may sell, from time to time, up to an aggregate sales price of $200.0 million of our class A common stock. On July 29, 2016, in connection with filing a new universal shelf registration statement on Form S-3, we entered into amendments to each of the ATM Agreements. Sales of class A common stock made pursuant to the ATM Agreements may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Actual sales will depend on a variety of factors including market conditions, the trading price of our class A common stock, our capital needs, and our determination of the appropriate sources of funding to meet such needs. We did not sell any shares of our class A common stock under the ATM Agreements during the nine months ended September 30, 2016 and 2015. As of September 30, 2016, sales of our class A common stock with an aggregate sales price of $188.6 million remained available for issuance under the ATM Agreements.

Dividends

We generally intend to distribute substantially all of our taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to our stockholders each year to comply with the REIT provisions of the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. Our dividend policy remains subject to revision at the discretion of our board of directors. All distributions will be made at the discretion of our board of directors and will depend upon our taxable income, our financial condition, our maintenance of REIT status, applicable law, and other factors as our board of directors deems relevant.

On September 13, 2016, we declared a dividend of $0.62 per share, or $58.2 million, that was paid on October 14, 2016 to stockholders of record as of September 30, 2016. The following table details our dividend activity ($ in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Dividends declared per share of common stock	$	0.62	$	0.62	$	1.86	$	1.66
Total dividends declared	$	58,226	$	57,800	$	174,678	$	136,674

Earnings Per Share

We calculate our basic and diluted earnings per share using the two-class method for all periods presented as the unvested shares of our restricted class A common stock qualify as participating securities, as defined by GAAP. These restricted shares have the same rights as our other shares of class A common stock, including participating in any dividends, and therefore have been included in our basic and diluted net income per share calculation. Our Convertible Notes are excluded from dilutive earnings per share as we have the intent and ability to settle these instruments in cash.

The following table sets forth the calculation of basic and diluted net income per share of class A common stock based on the weighted-average of both restricted and unrestricted class A common stock outstanding ($ in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Net income(1)	$	64,794	$	66,888	$	184,921	$	131,564
Weighted-average shares outstanding, basic and diluted		94,071,537		93,357,960		94,067,923		77,752,247
Per share amount, basic and diluted	$	0.69	$	0.72	$	1.97	$	1.69

(1) Represents net income attributable to Blackstone Mortgage Trust, Inc.

Other Balance Sheet Items

Accumulated Other Comprehensive Loss

As of September 30, 2016, total accumulated other comprehensive loss was $46.4 million, primarily representing (i) $83.3 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign currencies and (ii) offsetting $36.9 million realized and unrealized gains related to changes in the fair value of derivative instruments. As of December 31, 2015, total accumulated other comprehensive loss was $32.8 million, primarily representing (i) $57.8 million of cumulative unrealized currency translation adjustment on assets and liabilities denominated in foreign currencies and (ii) an offsetting $25.0 million unrealized gain related to changes in the fair value of derivative instruments.

Non-Controlling Interests

The non-controlling interests included on our consolidated balance sheets represent the equity interests in CT Legacy Partners that are not owned by us. A portion of CT Legacy Partners’ consolidated equity and results of operations are allocated to these non-controlling interests based on their pro rata ownership of CT Legacy Partners. As of September 30, 2016, CT Legacy Partners’ total equity was $1.9 million, of which $786,000 was owned by Blackstone Mortgage Trust, and $1.1 million was allocated to non-controlling interests. As of December 31, 2015, CT Legacy Partners’ total equity was $22.5 million, of which $9.4 million was owned by Blackstone Mortgage Trust, and $13.1 million was allocated to non-controlling interests.

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Other Expenses

9 Months Ended

Sep. 30, 2016

Other Income and Expenses [Abstract]

Other Expenses

11. OTHER EXPENSES

Our other expenses consist of the management and incentive fees we pay to our Manager and our general and administrative expenses.

Management and Incentive Fees

Pursuant to our management agreement, our Manager earns a base management fee in an amount equal to 1.50% per annum multiplied by our outstanding equity balance, as defined in the management agreement. In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i) 20% and (ii) the excess of (a) our Core Earnings (as defined in our management agreement) for the previous 12-month period over (b) an amount equal to 7.00% per annum multiplied by our outstanding Equity, provided that our Core Earnings over the prior three-year period is greater than zero. Core Earnings, as defined in our management agreement, is generally equal to our net income (loss) prepared in accordance with GAAP, excluding (i) certain non-cash items (ii) the net income (loss) related to our legacy portfolio and (iii) incentive management fees.

During the three and nine months ended September 30, 2016, we incurred $9.5 million and $28.4 million, respectively, of management fees payable to our Manager, compared to $9.4 million and $22.9 million during the same periods in 2015. In addition, during the three and nine months ended September 30, 2016, we incurred $4.2 million and $14.8 million, respectively, of incentive fees payable to our Manager, compared to $4.5 million and $5.7 million during the same periods in 2015.

As of September 30, 2016 we had accrued management and incentive fees payable to our Manager of $13.7 million, compared to $14.4 million as of December 31, 2015.

General and Administrative Expenses

General and administrative expenses consisted of the following ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Professional services	$	828	$	898	$	2,474	$	2,375
Operating and other costs		305		671		1,695		1,783
GE transaction costs		—		370		—		9,583
Subtotal		1,133		1,939		4,169		13,741
Non-cash and CT Legacy Portfolio compensation expenses
Management incentive awards plan - CTOPI(1)		938		8		1,106		2,605
Management incentive awards plan - CT Legacy Partners(2)		354		89		1,112		2,151
Restricted class A common stock earned		4,855		3,095		14,190		9,601
Director stock-based compensation		94		94		282		281
Subtotal		6,241		3,286		16,690		14,638
Total BXMT expenses		7,374		5,225		20,859		23,154
Expenses of consolidated subsidiaries		40		70		131		276
Total general and administrative expenses	$	7,414	$	5,295	$	20,990	$	28,655

(1) Represents the portion of CTOPI promote revenue accrued under compensation awards. See Note 4 for further discussion.

(2) Represents the accrual of amounts payable under the CT Legacy Partners management incentive awards during the period. See below for discussion of the CT Legacy Partners management incentive awards plan.

CT Legacy Partners Management Incentive Awards Plan

In conjunction with our March 2011 restructuring, we created an employee pool for up to 6.75% of the distributions paid to the common equity holders of CT Legacy Partners (subject to certain caps and priority distributions). Approximately 50% of the pool was 75% vested as of September 30, 2016, with the remainder contingent on continued employment with an affiliate of our Manager and our receipt of distributions from CT Legacy Partners. Of the remaining 50% of the pool, 27% is fully vested as a result of an acceleration event, and 23% vest only upon our receipt of distributions from CT Legacy Partners. We accrue a liability for the amounts due under these grants based on the value of CT Legacy Partners and the periodic vesting of the awards granted. Accrued payables for these awards were $114,000 as of September 30, 2016 and $1.3 million as of December 31, 2015.

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Income Taxes

9 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

12. INCOME TAXES

We elected to be taxed as a REIT, effective January 1, 2003, under the Internal Revenue Code for U.S. federal income tax purposes. We generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings that we distribute. To the extent that we satisfy this distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws.

Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Internal Revenue Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to the nature of our assets and the sources of our income. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full taxable years. As of September 30, 2016 and December 31, 2015, we were in compliance with all REIT requirements.

During the three and nine months ended September 30, 2016, we recorded an income tax provision of $194,000 and an income tax provision of $281,000, respectively, primarily related to various state and local taxes. During the three and nine months ended September 30, 2015, we recorded an income tax provision of $81,000 and $431,000, respectively. We did not have any deferred tax assets or liabilities as of September 30, 2016 or December 31, 2015.

As a result of our issuance of 25,875,000 shares of class A common stock in May 2013, the availability of our net operating losses, or NOLs, and net capital losses, or NCLs, is generally limited to $2.0 million per annum by change of control provisions promulgated by the Internal Revenue Service with respect to the ownership of Blackstone Mortgage Trust. As of December 31, 2015, we had NOLs of $159.0 million and NCLs of $602,000 available to be carried forward and utilized in current or future periods. If we are unable to utilize our NOLs, they will expire in 2029. If we are unable to utilize our NCLs, they will expire in 2017.

As of September 30, 2016, tax years 2013 through 2015 remain subject to examination by taxing authorities.

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Stock-Based Incentive Plans

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Incentive Plans

13. STOCK-BASED INCENTIVE PLANS

We do not have any employees as we are externally managed by our Manager. However, as of September 30, 2016, our Manager, certain individuals employed by an affiliate of our Manager, and certain members of our board of directors were compensated, in part, through the issuance of stock-based instruments.

We had stock-based incentive awards outstanding under seven benefit plans as of September 30, 2016: (i) our amended and restated 1997 non-employee director stock plan, or 1997 Plan; (ii) our 2007 long-term incentive plan, or 2007 Plan; (iii) our 2011 long-term incentive plan, or 2011 Plan; (iv) our 2013 stock incentive plan, or 2013 Plan; (v) our 2013 manager incentive plan, or 2013 Manager Plan; (vi) our 2016 stock incentive plan, or 2016 Plan; and (vii) our 2016 manager incentive plan, or 2016 Manager Plan. We refer to our 1997 Plan, our 2007 Plan, our 2011 Plan, our 2013 Plan, and our 2013 Manager Plan, collectively, as our Expired Plans and we refer to our 2016 Plan and 2016 Manager Plan, collectively, as our Current Plans.

Our Expired Plans have expired and no new awards may be issued under them. Under our Current Plans, a maximum of 2,400,000 shares of our class A common stock may be issued to our Manager, our directors and officers, and certain employees of affiliates of our Manager. As of September 30, 2016, there were 2,389,910 shares available under the Current Plans.

The following table details the movement in our outstanding shares of restricted class A common stock and the weighted-average grant date fair value per share:

	Restricted Class A Common Stock			Weighted-Average Grant Date Fair Value Per Share
Balance as of December 31, 2015		1,114,908		$	27.64
Granted		245,225			26.51
Vested		(513,849	)		27.10
Forfeited		(35,427	)		27.49
Balance as of September 30, 2016		810,857		$	27.64

These shares generally vest in quarterly installments over a three-year period, pursuant to the terms of the respective award agreements and the terms of the Current Plans. The 810,857 shares of restricted class A common stock outstanding as of September 30, 2016 will vest as follows: 127,932 shares will vest in 2016; 446,781 shares will vest in 2017; and 236,144 shares will vest in 2018. As of September 30, 2016, total unrecognized compensation cost relating to nonvested share-based compensation arrangements was $23.9 million based on the September 30, 2016 closing price of our class A common stock of $29.45. This cost is expected to be recognized over a weighted average period of 1.0 years from September 30, 2016.

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Fair Values

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Values

14. FAIR VALUES

Assets and Liabilities Measured at Fair Value

The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands):

	September 30, 2016								December 31, 2015
	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Assets
Derivatives	$	—	$	268	$	—	$	268	$	—	$	8,657	$	—	$	8,657
Other assets(1)	$	—	$	241	$	1,200	$	1,441	$	—	$	1,659	$	12,561	$	14,220
Liabilities
Derivatives	$	—	$	1,141	$	—	$	1,141	$	—	$	1,448	$	—	$	1,448

(1) Other assets include loans, securities, equity investments, and other receivables measured at fair value.

The following table reconciles the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands):

	Nine Months Ended September 30,
	2016			2015
January 1,	$	12,561		$	47,507
Proceeds from investment realizations		(2,406	)		(57,039	)
Transfers out of level 3		(20,745	)		—
Adjustments to fair value included in earnings
Gain on investments at fair value		11,790			22,228
September 30,	$	1,200		$	12,696

During the second quarter of 2016, $20.7 million of collateralized debt obligations, or CDOs, were transferred out of Level 3 and into Level 1 as a result of a binding agreement to sell the underlying collateral assets of the CDO to an independent third-party. These investments were realized in the third quarter of 2016. Refer to Note 2 for further discussion regarding fair value measurement.

Fair Value of Financial Instruments

As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the statement of financial position, for which it is practicable to estimate that value. The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands):

	September 30, 2016						December 31, 2015
	Carrying		Face		Fair		Carrying		Face		Fair
	Amount		Amount		Value		Amount		Amount		Value
Financial assets
Cash and cash equivalents	$	94,061	$	94,061	$	94,061	$	96,450	$	96,450	$	96,450
Restricted cash		877		877		877		9,556		9,556		9,556
Loans receivable, net		8,347,712		8,381,679		8,392,677		9,077,007		9,108,361		9,121,732
Financial liabilities
Secured debt agreements		5,320,358		5,335,908		5,335,908		6,116,105		6,131,751		6,131,751
Loan participations sold		409,654		411,427		411,427		497,032		498,992		498,992
Convertible notes, net		166,064		172,500		190,181		164,026		172,500		171,344

Estimates of fair value for cash and cash equivalents, restricted cash and convertible notes are measured using observable, quoted market prices, or Level 1 inputs. All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding fair value measurement of certain of our assets and liabilities.

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Transactions with Related Parties

9 Months Ended

Sep. 30, 2016

Related Party Transactions [Abstract]

Transactions with Related Parties

15. TRANSACTIONS WITH RELATED PARTIES

We are managed by our Manager pursuant to a management agreement, the current term of which expires on December 19, 2016, and will be automatically renewed for a one-year term each anniversary thereafter unless earlier terminated.

As of September 30, 2016, our consolidated balance sheet included $13.7 million of accrued management and incentive fees payable to our Manager. During the three and nine months ended September 30, 2016, we paid $15.8 million and $43.8 million, respectively, of management and incentive fees to our Manager, compared to $8.1 million and $21.0 million during the same periods of 2015. In addition, during the three and nine months ended September 30, 2016, we reimbursed our Manager for $82,000 and $462,000, respectively, of expenses incurred on our behalf. During the nine months ended September 30, 2015, we reimbursed our Manager for $139,000 of expenses incurred on our behalf. We did not reimburse our Manager for any expenses incurred on our behalf during the three months ended September 30, 2015. As of September 30, 2016, our consolidated balance sheet includes $31,000 of preferred distributions payable by CT Legacy Partners to an affiliate of our Manager, compared to $83,000 as of December 31, 2015. During the three and nine months ended September 30, 2016, CT Legacy Partners made aggregate preferred distributions of $146,000 and $491,000, respectively, to such affiliate, compared to $216,000 and $1.1 million during the same periods of 2015.

As of September 30, 2016, our Manager held 391,871 shares of unvested restricted class A common stock, which had an aggregate grant date fair value of $10.9 million. We did not issue any shares of restricted class A common stock to our Manager during the nine months ended September 30, 2016. The shares of restricted class A common stock vest ratably in quarterly installments over three years from the date of issuance. During the three and nine months ended September 30, 2016, we recorded non-cash expense related to shares granted to our Manager of $2.5 million and $7.1 million, respectively, compared to $1.6 million and $4.9 million during the same periods of 2015. Refer to Note 13 for further discussion of our restricted class A common stock.

During the three months ended September 30, 2016, we originated a loan to a borrower who engaged an affiliate of our Manager to act as title insurance agent in connection with the transaction. The borrower paid the title insurance agent a fee of $196,000 for its services. We did not incur any expenses or receive any revenues as a result of this transaction.

On May 8, 2015, a joint venture of CT Legacy Partners, certain affiliates of our Manager, and other non-affiliated parties, which we refer to as the Three-Pack JV, sold a hotel portfolio it owned to an investment vehicle managed by an affiliate of our Manager. We consented to the sale of the hotel portfolio by the Three-Pack JV, which will result in the ultimate liquidation of the Three-Pack JV and distribution of net sale proceeds to CT Legacy Partners in respect of its investment therein. An aggregate of $40.1 million of net sales proceeds has been received to date by CT Legacy Partners, of which $2.4 million was received during the nine months ended September 30, 2016. As a result of the sale transaction, employees of our Manager, including certain of our executive officers, received incentive compensation payments totaling $2.7 million under the CT Legacy Partners Management Incentive Awards Plan, of which $2.5 million was paid during 2015, and the remaining $162,000 was paid during the nine months ended September 30, 2016. See Note 11 for further discussion of the CT Legacy Partners Management Incentive Awards Plan.

During the three and nine months ended September 30, 2016, we incurred $112,000 and $282,000, respectively, of expenses for various administrative and capital market data services to third-party service providers that are affiliates of our Manager, compared to $178,000 and $307,000 during the same periods of 2015.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

16. COMMITMENTS AND CONTINGENCIES

Unfunded Commitments Under Loans Receivable

As of September 30, 2016, we had unfunded commitments of $929.0 million related to 58 loans receivable, which amounts will generally be funded to finance lease-related or capital expenditures by our borrowers. These future commitments will expire variously over the next three years.

Income Tax Audits of CTIMCO

The State of New York is currently examining the income tax returns for the years ended December 31, 2012 and 2011 of our former subsidiary, CT Investment Management Co., LLC, or CTIMCO. The examination is on-going, and no final adjustments have been made or agreed to. When we sold CTIMCO in December 2012, we provided certain indemnifications related to its operations, and any amounts determined to be owed by CTIMCO would ultimately be paid by us. As of September 30, 2016, there were no reserves recorded for the CTIMCO examination. The Internal Revenue Service, or IRS, separately examined the income tax return of CTIMCO for the year ended December 31, 2012. During the three months ended September 30, 2016, the IRS completed its examination with no adjustments.

Litigation

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of September 30, 2016, we were not involved in any material legal proceedings.

Board of Directors’ Compensation

As of September 30, 2016, of the eight members of our board of directors, our five independent directors are entitled to annual compensation of $125,000 each. The other three board members, including our chairman and our chief executive officer, serve as directors with no compensation. As of September 30, 2016, the annual compensation for our directors was paid 40% in cash and 60% in the form of deferred stock units. In addition, the member of our board of directors that serves as the chairperson of the audit committee of our board of directors receives additional annual cash compensation of $12,000. Compensation to the board of directors is payable in four equal quarterly installments.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements include, on a consolidated basis, our accounts, the accounts of our wholly-owned subsidiaries, majority-owned subsidiaries, and variable interest entities, or VIEs, of which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Certain of the assets and credit of our consolidated subsidiaries are not available to satisfy the debt or other obligations of us, our affiliates, or other entities.

One of our subsidiaries, CT Legacy Partners, LLC, or CT Legacy Partners, accounts for its operations in accordance with industry-specific GAAP accounting guidance for investment companies, pursuant to which it reports its investments at fair value. We have retained this accounting treatment in consolidation and, accordingly, report the loans and other investments of CT Legacy Partners at fair value on our consolidated balance sheets.

Certain reclassifications have been made in the presentation of the prior period consolidated statement of cash flows to conform to the current period presentation.

Principles of Consolidation

Principles of Consolidation

We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

As of both September 30, 2016 and December 31, 2015, we did not consolidate any VIEs.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may ultimately differ from those estimates.

Revenue Recognition

Revenue Recognition

Interest income from our loans receivable portfolio is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these investments is deferred until the loan is advanced and is then recorded over the term of the loan as an adjustment to yield. Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of our Manager, recovery of income and principal becomes doubtful. Income is then recorded on the basis of cash received until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses are deferred and recognized as a component of interest income, however expenses related to loans we acquire are included in general and administrative expenses as incurred.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents represent cash held in banks, cash on hand, and liquid investments with original maturities of three months or less. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. We have not experienced, and do not expect, any losses on our cash or cash equivalents.

Restricted Cash

Restricted Cash

We classify the cash balances held by CT Legacy Partners as restricted because, while these cash balances are available for use by CT Legacy Partners for its operations, they cannot be used by us until our allocable share is distributed from CT Legacy Partners and cannot be commingled with any of our unrestricted cash balances.

Loans Receivable and Provision for Loan Losses

Loans Receivable and Provision for Loan Losses

We originate and purchase commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost. We are required to periodically evaluate each of these loans for possible impairment. Impairment is indicated when it is deemed probable that we will not be able to collect all amounts due to us pursuant to the contractual terms of the loan. If a loan is determined to be impaired, we write down the loan through a charge to the provision for loan losses. Impairment of these loans, which are collateral dependent, is measured by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by our Manager. Actual losses, if any, could ultimately differ from these estimates.

Our Manager performs a quarterly review of our portfolio of loans. In conjunction with this review, our Manager assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors, including, without limitation, loan-to-value ratio, or 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: A loan that has a risk of realizing a principal loss.
5 -	Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss.

During the second quarter of 2015, we acquired a portfolio of loans from General Electric Capital Corporation and certain of its affiliates, or the GE portfolio, for a total purchase price of $4.7 billion. We allocated the aggregate purchase price between each loan based on its fair value relative to the overall portfolio, which allocation resulted in purchase discounts or premiums determined on an asset-by-asset basis. Each loan will accrete from its allocated purchase price to its expected collection value over the life of the loan, consistent with the other loans in our portfolio.

Equity Investments in Unconsolidated Subsidiaries

Equity Investments in Unconsolidated Subsidiaries

Our carried interest in CT Opportunity Partners I, LP, or CTOPI, is accounted for using the equity method. CTOPI’s assets and liabilities are not consolidated into our financial statements due to our determination that (i) it is not a VIE and (ii) the other investors in CTOPI have sufficient rights to preclude consolidation by us. As such, we report our allocable percentage of the net assets of CTOPI on our consolidated balance sheets. The recognition of income from CTOPI is generally deferred until cash is collected or appropriate contingencies have been eliminated.

Derivative Financial Instruments

Derivative Financial Instruments

We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets at fair value.

On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all derivatives other than those designated as non-designated hedges, we formally document our hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction.

On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. Changes in the fair value of the effective portion of our hedges are reflected in accumulated other comprehensive income (loss) on our consolidated financial statements. Changes in the fair value of the ineffective portion of our hedges are included in net income. Amounts are reclassified out of accumulated other comprehensive income (loss) and into net income when the hedged item is sold, substantially liquidated, or de-designated. To the extent a derivative does not qualify for hedge accounting and is deemed a non-designated hedge, the changes in its value are included in net income.

Repurchase Agreements

Repurchase Agreements

We record investments financed with repurchase agreements as separate assets and the related borrowings under any repurchase agreements are recorded as separate liabilities on our consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the repurchase agreements are reported separately on our consolidated statements of operations.

Senior Loan Participations

Senior Loan Participations

In certain instances, we finance our loans through the non-recourse syndication of a senior loan interest to a third-party. Depending on the particular structure of the syndication, the senior loan interest may remain on our GAAP balance sheet or, in other cases, the sale will be recognized and the senior loan interest will no longer be included in our consolidated financial statements. When these sales are not recognized under GAAP we reflect the transaction by recording a loan participations sold liability on our consolidated balance sheet, however this gross presentation does not impact stockholders’ equity or net income. When the sales are recognized, our balance sheet only includes our remaining subordinate loan and not the non-consolidated senior interest we sold.

Convertible Notes

Convertible Notes

The “Debt with Conversion and Other Options” Topic of the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. The initial proceeds from the sale of convertible notes are allocated between a liability component and an equity component in a manner that reflects interest expense at the rate of similar nonconvertible debt that could have been issued at such time. The equity component represents the excess initial proceeds received over the fair value of the liability component of the notes as of the date of issuance. We measured the estimated fair value of the debt component of our convertible notes as of the issuance date based on our nonconvertible debt borrowing rate. The equity component of the convertible notes is reflected within additional paid-in capital on our consolidated balance sheet, and the resulting debt discount is amortized over the period during which the convertible notes are expected to be outstanding (through the maturity date) as additional non-cash interest expense. The additional non-cash interest expense attributable to the convertible notes will increase in subsequent periods through the maturity date as the notes accrete to their par value over the same period.

Deferred Financing Costs

Deferred Financing Costs

The deferred financing costs that are included as a reduction in the net book value of the related liability on our consolidated balance sheets include issuance and other costs related to our debt obligations. These costs are amortized as interest expense using the effective interest method over the life of the related obligations.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The “Fair Value Measurements and Disclosures” Topic, or ASC 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP. Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date.

ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows:

• Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date.

• Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates.

• Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third-parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2.

The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed of members of senior management of our Manager, including our Chief Executive Officer, Chief Financial Officer, and other senior officers.

Certain of our other assets are reported at fair value either (i) on a recurring basis, as of each quarter-end, or (ii) on a nonrecurring basis, as a result of impairment or other events. Our assets that are recorded at fair value are discussed further in Note 14. We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from third-party dealers. For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our Manager’s estimation of the fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations may require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by our Manager.

We are also required by GAAP to disclose fair value information about financial instruments, that are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments.

The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value:

• Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates fair value.

• Restricted cash: The carrying amount of restricted cash approximates fair value.

• Loans receivable, net: The fair values for these loans were estimated by our Manager based on discounted cash flow methodology taking into consideration factors, including capitalization rates, discount rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and indications of market value from other market participants.

• Derivative financial instruments: The fair value of our foreign currency contracts and interest rates caps was valued using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads.

• Secured debt agreements: The fair values for these instruments were estimated based on the rate at which a similar credit facility would have currently priced.

• Loan participations sold: The fair value of these instruments were estimated based on the value of the related loan receivable asset.

• Convertible notes, net: The convertible notes are actively traded and their fair values were obtained using quoted market prices for these instruments.

Income Taxes

Income Taxes

Our financial results generally do not reflect provisions for current or deferred income taxes on our REIT taxable income. We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries. If we were to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and penalties. Refer to Note 12 for additional information.

Stock-Based Compensation

Stock-Based Compensation

Our stock-based compensation consists of awards issued to our Manager and certain of its employees that vest over the life of the awards as well as deferred stock units issued to certain members of our Board of Directors. Stock-based compensation expense is recognized for these awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A common stock. Refer to Note 13 for additional information.

Earnings per Share

Earnings per Share

Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by the weighted-average number of shares of our class A common stock, including restricted class A common stock and deferred stock units outstanding during the period. Our restricted class A common stock is considered a participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or losses.

Diluted earnings per share, or Diluted EPS, is determined using the treasury stock method, and is based on the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by the weighted-average number of shares of our class A common stock, including restricted class A common stock and deferred stock units. Refer to Note 10 for additional discussion of earnings per share.

Foreign Currency

Foreign Currency

In the normal course of business, we enter into transactions not denominated in United States, or U.S., dollars. Foreign exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statements of operations. In addition, we consolidate entities that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains, and losses are translated at the average exchange rate over the applicable period. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated subsidiaries are recorded in other comprehensive income.

Underwriting Commissions and Offering Costs

Underwriting Commissions and Offering Costs

Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common stock offering are expensed when incurred.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In August 2016, the FASB issued ASU 2016-15 “Statement of Cash Flows (Topic 230),” or ASU 2016-15. ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance addresses the classification of various transactions including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, distributions received from equity method investments, beneficial interests in securitization transactions, and others. We adopted ASU 2016-15 in the third quarter of 2016 and its adoption did not have a material impact on our consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326),” or ASU 2016-13. ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace the “incurred loss” model under existing guidance with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the impact ASU 2016-13 will have on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting (Topic 718),” or ASU 2016-09. ASU 2016-09 requires all income tax effects of share-based payment awards to be recognized in the income statement relating to the period in which the awards vest or are settled. ASU 2016-09 also allows an employer to repurchase more of an employee’s shares for tax withholding purposes than is permitted under current guidance without triggering liability accounting. Finally, ASU 2016-09 allows a policy election to account for employee forfeitures as they occur. We adopted ASU 2016-09 in the second quarter of 2016 and its adoption did not have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships,” or ASU 2016-05. ASU 2016-05 clarifies that the novation of a derivative contract in a hedge accounting relationship does not, in and of itself, require de-designation of that hedge accounting relationship. Hedge accounting relationships can continue as long as all of the other hedge accounting criteria are met, including the expectation that the hedge will be highly effective when the creditworthiness of the new counterparty to the derivative contract is considered. We adopted ASU 2016-05 in the third quarter of 2016 and its adoption did not have a material impact on our consolidated financial statements, however ASU 2016-05 may allow us to novate derivative contracts in the future without having to de-designate the hedge accounting relationship.

In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” or ASU 2014-15. ASU 2014-15 introduces an explicit requirement for management to assess and provide certain disclosures if there is substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 is effective for the annual period ending after December 15, 2016. We do not anticipate that the adoption of ASU 2014-15 will have a material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” or ASU 2014-09. ASU 2014-09 broadly amends the accounting guidance for revenue recognition. ASU 2014-09 is effective for the first interim or annual period beginning after December 15, 2017, and is to be applied retrospectively. We do not anticipate that the adoption of ASU 2014-09 will have a material impact on our consolidated financial statements.

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Loans Receivable (Tables)

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Overall Statistics for Loans Receivable Portfolio

The following table details overall statistics for our loans receivable portfolio ($ in thousands):

	September 30, 2016			December 31, 2015
Number of loans		106			125
Principal balance	$	8,381,679		$	9,108,361
Net book value	$	8,347,712		$	9,077,007
Unfunded loan commitments(1)	$	929,030		$	700,658
Weighted-average cash coupon(2)		4.85	%		4.84	%
Weighted-average all-in yield(2)		5.22	%		5.18	%
Weighted-average maximum maturity (years)(3)		3.2			3.1

(1) Unfunded commitments will primarily be funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments will be funded over the term of each loan, subject in certain cases to an expiration date.

(2) As of September 30, 2016, our floating rate loans were indexed to various benchmark rates, with 85% of floating rate loans indexed to USD LIBOR. In addition, $277.3 million of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 1.13%, as of September 30, 2016. As of December 31, 2015, our floating rate loans were indexed to various benchmark rates, with 84% of floating rate loans indexed to USD LIBOR. In addition, $147.9 million of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 1.80%, as of December 31, 2015. In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs, purchase discounts, and accrual of both extension and exit fees. Cash coupon and all-in yield assume applicable floating benchmark rate for weighted-average calculation.

(3) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of September 30, 2016, 66% of our loans were subject to yield maintenance or other prepayment restrictions and 34% were open to repayment by the borrower without penalty. As of December 31, 2015, 64% of our loans were subject to yield maintenance or other prepayment restrictions and 36% were open to repayment by the borrower without penalty.

Activity Relating to Loans Receivable Portfolio

Activity relating to our loans receivable portfolio was as follows ($ in thousands):

	Principal Balance			Deferred Fees / Other Items(1)			Net Book Value
December 31, 2015	$	9,108,361		$	(31,354)		$	9,077,007
Loan fundings		2,300,636			—			2,300,636
Loan repayments and sales		(2,942,705	)		—			(2,942,705	)
Unrealized (loss) gain on foreign currency translation		(84,613	)		1,181			(83,432	)
Deferred fees and other items(1)		—			(35,388	)		(35,388	)
Amortization of fees and other items(1)		—			31,594			31,594
September 30, 2016	$	8,381,679		$	(33,967	)	$	8,347,712

(1) Other items primarily consist of purchase discounts or premiums, exit fees, and deferred origination expenses.

Property Type and Geographic Distribution of Properties Securing Loans in Portfolio

The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio ($ in thousands):

September 30, 2016
Property Type	Number of Loans		Net Book Value		Total Loan Exposure(1)		Percentage of Portfolio
Office		55	$	4,540,394	$	4,610,800		50	%
Hotel		17		1,761,751		1,832,501		19
Retail		10		823,184		1,215,822		13
Multifamily		8		586,910		588,809		6
Condominium		2		85,436		315,816		3
Manufactured housing		9		297,726		297,847		3
Other		5		252,311		575,948		6
		106	$	8,347,712	$	9,437,543		100	%
Geographic Location	Number of Loans		Net Book Value		Total Loan Exposure(1)		Percentage of Portfolio
United States
Northeast		25	$	2,449,223	$	2,461,548		25	%
Southeast		20		1,343,942		1,739,465		18
West		21		1,496,295		1,733,491		18
Midwest		6		618,939		621,012		7
Southwest		9		444,381		443,653		5
Northwest		4		245,934		293,039		3
Subtotal		85		6,598,714		7,292,208		76
International
United Kingdom		9		930,677		1,276,234		14
Canada		8		477,466		474,182		5
Germany		1		218,855		271,922		3
Spain		1		68,572		69,198		1
Netherlands		2		53,428		53,799		1
Subtotal		21		1,748,998		2,145,335		24
Total		106	$	8,347,712	$	9,437,543		100	%

(1) 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. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.1 billion of such non-consolidated senior interests as of September 30, 2016.

December 31, 2015
Property Type	Number of Loans		Net Book Value		Total Loan Exposure(1)		Percentage of Portfolio
Office		55	$	4,039,521	$	4,085,007		41	%
Hotel		20		1,903,544		1,986,113		20
Manufactured housing		18		1,361,572		1,359,132		13
Retail		9		684,944		1,031,405		10
Multifamily		11		580,112		582,545		6
Condominium		3		127,434		353,144		3
Other		9		379,880		750,780		7
		125	$	9,077,007	$	10,148,126		100	%
Geographic Location	Number of Loans		Net Book Value		Total Loan Exposure(1)		Percentage of Portfolio
United States
Northeast		25	$	2,260,392	$	2,272,163		22	%
Southeast		27		1,836,766		2,185,609		21
West		22		1,125,238		1,356,301		13
Southwest		15		1,035,839		1,034,732		10
Midwest		5		616,964		617,774		6
Northwest		5		390,307		415,207		4
Subtotal		99		7,265,506		7,881,786		76
International
United Kingdom		10		888,998		1,283,644		13
Canada		11		561,023		558,724		6
Germany		2		235,294		296,424		3
Spain		1		66,661		67,416		1
Netherlands		2		59,525		60,132		1
Subtotal		26		1,811,501		2,266,340		24
Total		125	$	9,077,007	$	10,148,126		100	%

(1) 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. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.0 billion of such non-consolidated senior interests as of December 31, 2015.

Principal Balance and Net Book Value of Loans Receivable Based on Internal Risk Ratings

The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings ($ in thousands):

September 30, 2016						December 31, 2015
Risk Rating	Number of Loans	Net Book Value		Total Loan Exposure(1)		Risk Rating		Number of Loans	Net Book Value		Total Loan Exposure(1)
1	10	$	456,047	$	456,905		1	12	$	919,991	$	925,443
2	53		3,882,247		3,935,513		2	77		5,929,447		6,316,890
3	43		4,009,418		5,045,125		3	35		2,114,531		2,792,510
4	—		—		—		4	1		113,038		113,283
5	—		—		—		5	—		—		—
	106	$	8,347,712	$	9,437,543			125	$	9,077,007	$	10,148,126

(1) 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. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.1 billion and $1.0 billion of such non-consolidated senior interests as of September 30, 2016 and December 31, 2015, respectively.

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Equity Investments in Unconsolidated Subsidiaries (Tables)

9 Months Ended

Sep. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Activity Relating to Our Equity Investments in Unconsolidated Subsidiaries

As of September 30, 2016, our equity investments in unconsolidated subsidiaries consisted solely of our carried interest in CTOPI, a fund sponsored and managed by an affiliate of our Manager. Activity relating to our equity investments in unconsolidated subsidiaries was as follows ($ in thousands):

	CTOPI Carried Interest
Total as of December 31, 2015	$	9,441
Distributions		(8,167	)
Income allocation(1)		404
Total as of September 30, 2016	$	1,678

(1) In instances where we have not received cash or all appropriate contingencies have not been eliminated, we have deferred the recognition of promote revenue allocated to us from CTOPI in respect of our carried interest in CTOPI, and recorded an offsetting liability as a component of other liabilities on our consolidated balance sheets.

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Other Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2016

Text Block [Abstract]

Summary of Components of Other Assets

The following table details the components of our other assets ($ in thousands):

	September 30,		December 31,
	2016		2015
Loan portfolio payments held by servicer(1)	$	33,050	$	122,666
Accrued interest receivable		31,323		37,161
Real estate debt and equity investments, at fair value(2)		1,441		14,220
Prepaid expenses		325		890
Derivative assets		268		8,657
Prepaid taxes		206		525
Total	$	66,613	$	184,119

(1) Represents loan principal and interest payments held by our third-party loan servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle.

(2) Real estate debt and equity investments consists of assets held by CT Legacy Partners and are measured at fair value.

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Secured Debt Agreements (Tables)

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Schedule of Secured Debt Agreements

The following table details our secured debt agreements ($ in thousands):

	Secured Debt Agreements
	Borrowings Outstanding
	September 30, 2016			December 31, 2015
Revolving repurchase facilities	$	3,044,434		$	2,495,805
GE portfolio acquisition facility		1,587,822			3,161,291
Asset-specific financings		653,652			474,655
Revolving credit agreement		50,000			—
Total secured debt agreements	$	5,335,908		$	6,131,751
Deferred financing costs(1)		(15,550	)		(15,646	)
Net book value of secured debt	$	5,320,358		$	6,116,105

(1) Costs incurred in connection with our secured debt agreements are recorded on our consolidated balance sheet when incurred and recognized as a component of interest expense over the life of each related agreement.

Revolving Repurchase Facilities

The following table details our revolving repurchase facilities ($ in thousands):

	September 30, 2016
	Maximum		Collateral		Repurchase Borrowings
Lender	Facility Size(1)		Assets(2)		Potential(3)		Outstanding		Available(3)
Wells Fargo	$	2,000,000	$	1,390,190	$	1,085,153	$	801,271	$	283,882
MetLife		1,000,000		967,359		756,054		756,054		—
Bank of America		750,000		742,081		577,694		577,694		—
JP Morgan(4)		500,000		524,516		403,483		353,630		49,853
Citibank		500,000		623,857		481,572		252,175		229,397
Morgan Stanley(5)		324,200		254,803		200,665		200,665		—
Société Générale(6)		448,880		166,369		131,000		102,945		28,055
	$	5,523,080	$	4,669,175	$	3,635,621	$	3,044,434	$	591,187

	December 31, 2015
	Maximum		Collateral		Repurchase Borrowings
Lender	Facility Size(1)		Assets(2)		Potential(3)		Outstanding		Available(3)
Bank of America	$	750,000	$	840,884	$	665,861	$	618,944	$	46,917
Wells Fargo		1,000,000		879,155		687,200		562,382		124,818
JP Morgan(4)		524,547		589,752		464,723		382,042		82,681
Citibank		500,000		568,032		436,217		344,879		91,338
MetLife		750,000		593,273		462,849		324,587		138,262
Morgan Stanley(5)		370,400		273,280		212,050		209,038		3,012
Société Générale(6)		437,320		67,416		53,933		53,933		—
	$	4,332,267	$	3,811,792	$	2,982,833	$	2,495,805	$	487,028

(1) Maximum facility size represents the largest amount of borrowings available under a given facility once sufficient collateral assets have been approved by the lender and pledged by us.

(2) Represents the principal balance of the collateral assets.

(3) Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each revolving credit facility.

(4) As of September 30, 2016, the JP Morgan maximum facility size was composed of a general $500.0 million facility size, under which U.S. Dollars and British Pound Sterling borrowings are contemplated. As of December 31, 2015, the JP Morgan maximum facility was composed of general $250.0 million facility size plus a general £153.0 million ($226.7 million) facility size provided under a related agreement that contemplated U.S. Dollars and British Pound Sterling borrowings, and additional capacity of ₤32.3 million ($47.8 million) on the ₤153.0 million facility.

(5) The Morgan Stanley maximum facility size represents a £250.0 million facility size that was translated to $324.2 million as of September 30, 2016, and $370.4 million as of December 31, 2015.

(6) The Société Générale maximum facility size represents a €400.0 million facility size that was translated to $448.9 million as of September 30, 2016, and $437.3 million as of December 31, 2015.

Summary of Key Terms of Revolving Repurchase Facilities

The following table outlines the key terms of our revolving repurchase facilities as of September 30, 2016:

Lender	Currency	Rate(1)	Guarantee(2)	Advance Rate(3)	Margin Call(4)	Term/Maturity
Wells Fargo	$	L+1.77%	25%	79.6%	Collateral marks only	Term matched(5)
MetLife	$	L+1.84%	50%	78.8%	Collateral marks only	April 22, 2022(6)
Bank of America	$	L+1.67%	50%	79.3%	Collateral marks only	May 21, 2021(7)
JP Morgan	$ / £	L+1.84%	50%	78.8%	Collateral marks only	January 7, 2019
Citibank	$	L+1.85%	25%	78.3%	Collateral marks only	Term matched(5)
Morgan Stanley	£  / €	L+2.35%	25%	78.8%	Collateral marks only	March 1, 2019
Société Générale	£  / €	L+1.71%	25%	80.0%	Collateral marks only	Term matched(5)

(1) Represents weighted-average cash coupon based on borrowings outstanding. In instances where our borrowings are denominated in currencies other than the U.S. Dollar, interest accrues at a rate equivalent to a margin plus a base rate other than 1-month USD LIBOR, such as 3-month GBP LIBOR, 3-month EURIBOR, or 3-month CDOR.

(2) Other than amounts guaranteed based on specific collateral asset types, borrowings under our revolving repurchase facilities are non-recourse to us.

(3) Represents weighted-average advance rate based on the outstanding principal balance of the collateral assets pledged.

(4) Margin call provisions under our revolving repurchase facilities do not permit valuation adjustments based on capital markets events, and are limited to collateral-specific credit marks.

(5) These revolving repurchase facilities have various availability periods during which new advances can be made and which are generally subject to each lender’s discretion. Maturity dates for advances outstanding are tied to the term of each respective collateral asset.

(6) Includes five one-year extension options which may be exercised at our sole discretion.

(7) Includes two one-year extension options which may be exercised at our sole discretion.

Summary of Statistics for Asset-Specific Financings

The following table details statistics for our asset-specific financings ($ in thousands):

	September 30, 2016
Lender	Count		Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)		Guarantee(2)		Wtd. Avg. Term
JP Morgan(3)
Collateral assets		1		$    280,415		$    278,963		L+3.88%		n/a		Jan. 2020
Financing provided		1		233,679		233,541		L+1.89%		$116,839		Jan. 2020
Citibank(3)
Collateral assets		2		201,270		201,135		L+4.45%		n/a		Nov. 2020
Financing provided		2		158,652		158,605		L+2.48%		39,663		Nov. 2020
Deutsche Bank
Collateral assets		1		180,740		178,107		L+5.17%		n/a		Aug. 2021
Financing provided		1		135,075		133,599		L+3.00%		67,538		Aug. 2021
Bank of the Ozarks
Collateral assets		2		108,423		105,630		L+6.20%		n/a		Feb. 2020
Financing provided		2		81,907		80,603		L+3.59%		—		Feb. 2020
Wells Fargo
Collateral assets		1		63,341		62,955		L+6.05%		n/a		Dec. 2019
Financing provided		1		44,339		44,067		L+3.20%		8,868		Dec. 2019
Total
Collateral assets		7		$    834,189		$    826,790		L+4.76%		n/a
Financing provided		7		$    653,652		$    650,415		L+2.57%		$232,908

(1) These floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs.

(2) Other than amounts guaranteed on an asset-by-asset basis, borrowings under our asset-specific financings are non-recourse to us.

(3) Borrowings under these asset specific financings are cross collateralized with the related revolving repurchase facility with the same lender.

	December 31, 2015
Lender	Count		Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)			Guarantee(2)		Wtd. Avg. Term
Wells Fargo(3)
Collateral assets		3	$	319,897	$	318,693		L+4.92	%		n/a		Jun. 2019
Financing provided		3		234,850		234,115		L+2.37	%	$	42,627		Jun. 2019
JP Morgan(3)
Collateral assets		1		274,878		272,632		L+3.88	%		n/a		Jan. 2020
Financing provided		1		214,491		214,391		L+1.94	%		53,623		Jan. 2020
Citibank(3)
Collateral assets		1		36,749		36,514		L+4.42	%		n/a		Oct. 2018
Financing provided		1		25,314		25,293		L+2.08	%		6,329		Oct. 2018
Total
Collateral assets		5	$	631,524	$	627,839		L+4.44	%		n/a
Financing provided		5	$	474,655	$	473,799		L+2.16	%	$	102,579

(1) These floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs.

(2) Other than amounts guaranteed on an asset-by-asset basis, borrowings under our asset-specific financings are non-recourse to us.

(3) Borrowings under these asset specific financings are cross collateralized with the related revolving repurchase facility with the same lender.

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Loan Participations Sold (Tables)

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Summary of Statistics for Loan Participations Sold

The following table details statistics for our loan participations sold ($ in thousands):

	September 30, 2016
Loan Participations Sold	Count	Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)			Guarantee(2)		Wtd. Avg. Term
Total loan	2	$	495,912	$	492,133		L+4.51	%		n/a	Sep. 2019
Senior participation(3)(4)	2		411,427		409,654		L+2.71	%	$	31,123	Sep. 2019
	December 31, 2015
Loan Participations Sold	Count	Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)			Guarantee(2)		Wtd. Avg. Term
Total loan	3	$	608,554	$	604,321		L+4.15	%		n/a	Nov. 2018
Senior participation(3)(4)	3		498,992		497,032		L+2.49	%	$	35,558	Nov. 2018

(1) Our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred fees / financing costs.

(2) Other than one instance where we entered into a related guarantee agreement for £24.0 million ($31.1 million as of September 30, 2016), our loan participations sold are non-recourse to us.

(3) During the three and nine months ended September 30, 2016, we recorded $3.4 million and $10.7 million, respectively, of interest expense related to our loan participations sold, of which $3.2 million and $10.3 million was paid in cash. During the three and nine months ended September 30, 2015, we recorded $5.2 million and $14.4 million, respectively, of interest expense related to our loan participations sold, of which $4.5 million and $13.2 million was paid in cash.

(4) The difference between principal balance and book value of loan participations sold is due to deferred financing costs of $1.8 million and $2.0 million as of September 30, 2016 and December 31, 2015, respectively.

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Outstanding Foreign Exchange Derivatives Designated as Net Investment Hedges of Foreign Currency Risk

The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amount in thousands):

September 30, 2016				December 31, 2015
Foreign Currency Derivatives	Number of Instruments	Notional Amount		Foreign Currency Derivatives	Number of Instruments	Notional Amount
Sell CAD Forward	1	C$	119,600	Sell CAD Forward	2	C$	154,900
Sell GBP Forward	1	£	117,900	Sell GBP Forward	2	£	90,400
Sell EUR Forward	1	€	44,900	Sell EUR Forward	1	€	49,000

Summary of Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges of Interest Rate Risk

The following tables detail our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (notional amount in thousands):

September 30, 2016
Interest Rate Derivatives	Number of Instruments	Notional Amount		Rate/ Strike	Index	Wtd.-Avg. Maturity (Years)
Interest Rate Swaps	2	C$	17,273	1.0%	CDOR	3.9
Interest Rate Caps	25	$	1,086,261	2.0%	USD LIBOR	0.6
Interest Rate Caps	6	C$	439,320	2.0%	CDOR	0.6
Interest Rate Caps	1	£	15,142	2.0%	GBP LIBOR	0.6
December 31, 2015
Interest Rate Derivatives	Number of Instruments	Notional Amount		Strike	Index	Wtd.-Avg. Maturity (Years)
Interest Rate Caps	26	$	1,097,632	2%	USD LIBOR	1.3
Interest Rate Caps	7	C$	483,286	2%	CDOR	1.2
Interest Rate Caps	1	€	152,710	2%	EURIBOR	1.0
Interest Rate Caps	1	£	15,142	2%	GBP LIBOR	1.3

Summary of Non-designated Hedges

The following table summarizes our non-designated hedges (notional amount in thousands):

September 30, 2016				December 31, 2015
Non-designated Hedges	Number of Instruments	Notional Amount		Non-designated Hedges	Number of Instruments	Notional Amount
Interest Rate Caps	2	€	152,710	Interest Rate Caps	4	C$	67,303
Interest Rate Caps	3	C$	52,630	Interest Rate Caps	1	$	13,387
Buy GBP / Sell EUR	1	€	12,857	Buy GBP / Sell EUR Forward	1	€	12,857
Buy USD / Sell CAD	1	C$	7,000	Buy GBP / Sell USD Forward	1	£	10,400
Buy CAD / Sell USD	1	C$	7,000	Buy USD / Sell GBP Forward	1	£	10,400
				Buy CAD / Sell USD Forward	1	C$	1,000
				Buy USD / Sell CAD Forward	1	C$	1,000

Summary of Fair Value of Derivative Financial Instruments

The following table summarizes the fair value of our derivative financial instruments ($ in thousands):

	Fair Value of Derivatives in an Asset Position(1) as of				Fair Value of Derivatives in a Liability Position(2) as of
	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	251	$	7,999	$	895	$	511
Interest rate derivatives		—		238		25		—
Total derivatives designated as hedging instruments	$	251	$	8,237	$	920	$	511
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	17	$	419	$	221	$	937
Interest rate derivatives		—		1		—		—
Total derivatives not designated as hedging instruments	$	17	$	420	$	221	$	937
Total Derivatives	$	268	$	8,657	$	1,141	$	1,448

(1) Included in other assets in our consolidated balance sheets.

(2) Included in other liabilities in our consolidated balance sheets.

Summary of Effect of Derivative Financial Instruments on Consolidated Statements of Operations

The following table presents the effect of our derivative financial instruments on our consolidated statements of operations ($ in thousands):

	Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)					Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion)
Derivatives in Hedging Relationships	Three Months Ended September 30, 2016		Nine Months Ended September 30, 2016					Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
Net Investment
Foreign exchange contracts(1)	$	5,627	$	11,748			Interest Expense	$	—		$	—
Cash Flow Hedges
Interest rate derivatives		14		(274	)		Interest Expense		(241	)		(367	)
Total	$	5,641	$	11,474				$	(241	)	$	(367	)

(1) During the three and nine months ended September 30, 2016, we received net cash settlements of $19.2 million and $17.4 million, respectively, on our foreign currency forward contracts, compared to receiving $10.8 million and $13.7 million during the same periods in 2015. Those amounts are included as a component of accumulated other comprehensive loss on our consolidated balance sheets.

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Equity (Tables)

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Schedule of Movement in Outstanding Shares of Class A Common Stock, Restricted Class A Common Stock and Deferred Stock Units

The following table details the movement in our outstanding shares of class A common stock, including restricted class A common stock and deferred stock units:

	Nine Months Ended September 30,
Common Stock Outstanding(1)	2016		2015
Beginning balance		93,843,847		58,388,808
Issuance of class A common stock		812		34,780,443
Issuance of restricted class A common stock, net		209,798		162,531
Issuance of deferred stock units		20,850		16,288
Ending balance		94,075,307		93,348,070

(1) Deferred stock units held by members of our board of directors totaled 162,371 and 135,207 as of September 30, 2016 and 2015, respectively.

Schedule of Dividend Activity

The following table details our dividend activity ($ in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Dividends declared per share of common stock	$	0.62	$	0.62	$	1.86	$	1.66
Total dividends declared	$	58,226	$	57,800	$	174,678	$	136,674

Schedule of Basic and Diluted Earnings Per Share, or EPS, Based on Weighted-Average of Both Restricted and Unrestricted Class A Common Stock Outstanding

The following table sets forth the calculation of basic and diluted net income per share of class A common stock based on the weighted-average of both restricted and unrestricted class A common stock outstanding ($ in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Net income(1)	$	64,794	$	66,888	$	184,921	$	131,564
Weighted-average shares outstanding, basic and diluted		94,071,537		93,357,960		94,067,923		77,752,247
Per share amount, basic and diluted	$	0.69	$	0.72	$	1.97	$	1.69

(1) Represents net income attributable to Blackstone Mortgage Trust, Inc.

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Other Expenses (Tables)

9 Months Ended

Sep. 30, 2016

Other Income and Expenses [Abstract]

Schedule of General and Administrative Expenses

General and administrative expenses consisted of the following ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Professional services	$	828	$	898	$	2,474	$	2,375
Operating and other costs		305		671		1,695		1,783
GE transaction costs		—		370		—		9,583
Subtotal		1,133		1,939		4,169		13,741
Non-cash and CT Legacy Portfolio compensation expenses
Management incentive awards plan - CTOPI(1)		938		8		1,106		2,605
Management incentive awards plan - CT Legacy Partners(2)		354		89		1,112		2,151
Restricted class A common stock earned		4,855		3,095		14,190		9,601
Director stock-based compensation		94		94		282		281
Subtotal		6,241		3,286		16,690		14,638
Total BXMT expenses		7,374		5,225		20,859		23,154
Expenses of consolidated subsidiaries		40		70		131		276
Total general and administrative expenses	$	7,414	$	5,295	$	20,990	$	28,655

(1) Represents the portion of CTOPI promote revenue accrued under compensation awards. See Note 4 for further discussion.

(2) Represents the accrual of amounts payable under the CT Legacy Partners management incentive awards during the period. See below for discussion of the CT Legacy Partners management incentive awards plan.

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Stock-Based Incentive Plans (Tables)

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Movement in Outstanding Shares of Restricted Class A Common Stock and Weighted-Average Grant Date Fair Value Per Share

The following table details the movement in our outstanding shares of restricted class A common stock and the weighted-average grant date fair value per share:

	Restricted Class A Common Stock			Weighted-Average Grant Date Fair Value Per Share
Balance as of December 31, 2015		1,114,908		$	27.64
Granted		245,225			26.51
Vested		(513,849	)		27.10
Forfeited		(35,427	)		27.49
Balance as of September 30, 2016		810,857		$	27.64

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Fair Values (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands):

	September 30, 2016								December 31, 2015
	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Assets
Derivatives	$	—	$	268	$	—	$	268	$	—	$	8,657	$	—	$	8,657
Other assets(1)	$	—	$	241	$	1,200	$	1,441	$	—	$	1,659	$	12,561	$	14,220
Liabilities
Derivatives	$	—	$	1,141	$	—	$	1,141	$	—	$	1,448	$	—	$	1,448

(1) Other assets include loans, securities, equity investments, and other receivables measured at fair value.

Reconciliation of Beginning and Ending Balances of Assets Measured at Fair Value on Recurring Basis Using Level 3 Inputs

The following table reconciles the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands):

	Nine Months Ended September 30,
	2016			2015
January 1,	$	12,561		$	47,507
Proceeds from investment realizations		(2,406	)		(57,039	)
Transfers out of level 3		(20,745	)		—
Adjustments to fair value included in earnings
Gain on investments at fair value		11,790			22,228
September 30,	$	1,200		$	12,696

Schedule of Details of Carrying Amount, Face Amount, and Fair Value of Financial Instruments

The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands):

	September 30, 2016						December 31, 2015
	Carrying		Face		Fair		Carrying		Face		Fair
	Amount		Amount		Value		Amount		Amount		Value
Financial assets
Cash and cash equivalents	$	94,061	$	94,061	$	94,061	$	96,450	$	96,450	$	96,450
Restricted cash		877		877		877		9,556		9,556		9,556
Loans receivable, net		8,347,712		8,381,679		8,392,677		9,077,007		9,108,361		9,121,732
Financial liabilities
Secured debt agreements		5,320,358		5,335,908		5,335,908		6,116,105		6,131,751		6,131,751
Loan participations sold		409,654		411,427		411,427		497,032		498,992		498,992
Convertible notes, net		166,064		172,500		190,181		164,026		172,500		171,344

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Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount attributable to consolidated VIEs	$ 0	$ 0
Income accrual, description	Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of our Manager, recovery of income and principal becomes doubtful.
Cash and cash equivalents, description	Cash and cash equivalents represent cash held in banks, cash on hand, and liquid investments with original maturities of three months or less.
Expected loss	$ 0
General Electrical Capital Corporation [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchase price of Loan Portfolio			$ 4,700,000,000

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Loans Receivable - Overall Statistics for Loans Receivable Portfolio (Detail) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016 USD ($) SecurityLoan	Dec. 31, 2015 USD ($) SecurityLoan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	106	125
Net book value	$ 8,347,712	$ 9,077,007
Loans Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	106	125
Principal balance	$ 8,381,679	$ 9,108,361
Unfunded loan commitments	$ 929,030	$ 700,658
Weighted-average maximum maturity (years)	3 years 2 months 12 days	3 years 1 month 6 days
Loans Receivable [Member] | LIBOR [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Weighted-average cash coupon, rate	4.85%	4.84%
Weighted-average all-in yield, rate	5.22%	5.18%
Net Book Value [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net book value	$ 8,347,712	$ 9,077,007

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Loans Receivable - Overall Statistics for Loans Receivable Portfolio (Parenthetical) (Detail) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Floating rate loans	$ 277.3	$ 147.9
Average floor rate	1.13%	1.80%
Percentage of loans subject to yield maintenance, or other prepayment restrictions	66.00%	64.00%
Percentage of loans open to repayment by borrower without penalty	34.00%	36.00%
USD LIBOR [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of loans receivable by type	85.00%	84.00%

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Loans Receivable - Activity Relating to Loans Receivable Portfolio (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance			$ 9,077,007
Unrealized (loss) gain on foreign currency translation	$ (10,128)	$ (23,148)	(25,472)	$ (27,484)
Amortization of fees and other items			31,594	$ 25,489
Ending Balance	8,347,712		8,347,712
Net Book Value [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance			9,077,007
Loan fundings			2,300,636
Loan repayments and sales			(2,942,705)
Unrealized (loss) gain on foreign currency translation			83,432
Deferred fees and other items			(35,388)
Amortization of fees and other items			31,594
Ending Balance	8,347,712		8,347,712
Deferred Fees/Other Items [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance			(31,354)
Unrealized (loss) gain on foreign currency translation			1,181
Deferred fees and other items			(35,388)
Amortization of fees and other items			31,594
Ending Balance	(33,967)		(33,967)
Loans Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance			9,108,361
Loan fundings			2,300,636
Loan repayments and sales			(2,942,705)
Unrealized (loss) gain on foreign currency translation			84,613
Ending Balance	$ 8,381,679		$ 8,381,679

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Loans Receivable - Property Type and Geographic Distribution of Properties Securing Loans in Portfolio (Detail) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016 USD ($) SecurityLoan	Dec. 31, 2015 USD ($) SecurityLoan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	106	125
Net book value	$ 8,347,712	$ 9,077,007
Total Loan Exposure	$ 9,437,543	$ 10,148,126
Percentage of Portfolio	100.00%	100.00%
Office [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	55	55
Net book value	$ 4,540,394	$ 4,039,521
Total Loan Exposure	$ 4,610,800	$ 4,085,007
Percentage of Portfolio	50.00%	41.00%
Hotel [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	17	20
Net book value	$ 1,761,751	$ 1,903,544
Total Loan Exposure	$ 1,832,501	$ 1,986,113
Percentage of Portfolio	19.00%	20.00%
Manufactured Housing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	9	18
Net book value	$ 297,726	$ 1,361,572
Total Loan Exposure	$ 297,847	$ 1,359,132
Percentage of Portfolio	3.00%	13.00%
Retail [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	10	9
Net book value	$ 823,184	$ 684,944
Total Loan Exposure	$ 1,215,822	$ 1,031,405
Percentage of Portfolio	13.00%	10.00%
Multifamily [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	8	11
Net book value	$ 586,910	$ 580,112
Total Loan Exposure	$ 588,809	$ 582,545
Percentage of Portfolio	6.00%	6.00%
Condominium [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	2	3
Net book value	$ 85,436	$ 127,434
Total Loan Exposure	$ 315,816	$ 353,144
Percentage of Portfolio	3.00%	3.00%
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	5	9
Net book value	$ 252,311	$ 379,880
Total Loan Exposure	$ 575,948	$ 750,780
Percentage of Portfolio	6.00%	7.00%
United States Northeast [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	25	25
Net book value	$ 2,449,223	$ 2,260,392
Total Loan Exposure	$ 2,461,548	$ 2,272,163
Percentage of Portfolio	25.00%	22.00%
United States Southeast [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	20	27
Net book value	$ 1,343,942	$ 1,836,766
Total Loan Exposure	$ 1,739,465	$ 2,185,609
Percentage of Portfolio	18.00%	21.00%
United States West [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	21	22
Net book value	$ 1,496,295	$ 1,125,238
Total Loan Exposure	$ 1,733,491	$ 1,356,301
Percentage of Portfolio	18.00%	13.00%
United States Midwest [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	6	5
Net book value	$ 618,939	$ 616,964
Total Loan Exposure	$ 621,012	$ 617,774
Percentage of Portfolio	7.00%	6.00%
United States Southwest [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	9	15
Net book value	$ 444,381	$ 1,035,839
Total Loan Exposure	$ 443,653	$ 1,034,732
Percentage of Portfolio	5.00%	10.00%
United States Northwest [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	4	5
Net book value	$ 245,934	$ 390,307
Total Loan Exposure	$ 293,039	$ 415,207
Percentage of Portfolio	3.00%	4.00%
United States [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	85	99
Net book value	$ 6,598,714	$ 7,265,506
Total Loan Exposure	$ 7,292,208	$ 7,881,786
Percentage of Portfolio	76.00%	76.00%
United Kingdom [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	9	10
Net book value	$ 930,677	$ 888,998
Total Loan Exposure	$ 1,276,234	$ 1,283,644
Percentage of Portfolio	14.00%	13.00%
Canada [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	8	11
Net book value	$ 477,466	$ 561,023
Total Loan Exposure	$ 474,182	$ 558,724
Percentage of Portfolio	5.00%	6.00%
Germany [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	1	2
Net book value	$ 218,855	$ 235,294
Total Loan Exposure	$ 271,922	$ 296,424
Percentage of Portfolio	3.00%	3.00%
Spain [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	1	1
Net book value	$ 68,572	$ 66,661
Total Loan Exposure	$ 69,198	$ 67,416
Percentage of Portfolio	1.00%	1.00%
Netherlands [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	2	2
Net book value	$ 53,428	$ 59,525
Total Loan Exposure	$ 53,799	$ 60,132
Percentage of Portfolio	1.00%	1.00%
International [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	21	26
Net book value	$ 1,748,998	$ 1,811,501
Total Loan Exposure	$ 2,145,335	$ 2,266,340
Percentage of Portfolio	24.00%	24.00%

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Loans Receivable - Property Type and Geographic Distribution of Properties Securing Loans in Portfolio (Parenthetical) (Detail) - USD ($) $ in Billions	Sep. 30, 2016	Dec. 31, 2015
Receivables [Abstract]
Total loan exposure including senior interests	$ 1.1	$ 1.0

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Loans Receivable - Principal Balance and Net Book Value of Loans Receivable Based on Internal Risk Ratings (Detail) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016 USD ($) SecurityLoan	Dec. 31, 2015 USD ($) SecurityLoan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	106	125
Net book value	$ 8,347,712	$ 9,077,007
Total Loan Exposure	$ 9,437,543	$ 10,148,126
Loans Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	106	125
Net Book Value [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net book value	$ 8,347,712	$ 9,077,007
Risk Rating 1 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loan Exposure	$ 456,905	$ 925,443
Risk Rating 1 [Member] | Loans Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	10	12
Risk Rating 1 [Member] | Net Book Value [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net book value	$ 456,047	$ 919,991
Risk Rating 2 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loan Exposure	$ 3,935,513	$ 6,316,890
Risk Rating 2 [Member] | Loans Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	53	77
Risk Rating 2 [Member] | Net Book Value [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net book value	$ 3,882,247	$ 5,929,447
Risk Rating 3 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loan Exposure	$ 5,045,125	$ 2,792,510
Risk Rating 3 [Member] | Loans Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan	43	35
Risk Rating 3 [Member] | Net Book Value [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net book value	$ 4,009,418	$ 2,114,531
Risk Rating 4 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loan Exposure		$ 113,283
Risk Rating 4 [Member] | Loans Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | SecurityLoan		1
Risk Rating 4 [Member] | Net Book Value [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net book value		$ 113,038

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Loans Receivable - Principal Balance and Net Book Value of Loans Receivable Based on Internal Risk Ratings (Parenthetical) (Detail) - USD ($) $ in Billions	Sep. 30, 2016	Dec. 31, 2015
Receivables [Abstract]
Total loan exposure including senior interests	$ 1.1	$ 1.0

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Loans Receivable - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Weighted-average risk rating on loan exposure	2.5	2.2
Impaired loans	$ 0	$ 0
Maturity date	Feb. 28, 2017
Partial repayment of loan on sale of collateralized assets	$ 102,600,000
Net book value of loan after partial repayment	8,347,712,000	9,077,007,000
Net Book Value [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net book value of loan after partial repayment	8,347,712,000	9,077,007,000
Risk Rating 2 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Principal Balance of collateralized loan	113,300,000
Risk Rating 2 [Member] | Net Book Value [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net book value of loan after partial repayment	3,882,247,000	$ 5,929,447,000
Risk Rating 2 [Member] | Net Book Value [Member] | Extended Maturity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net book value of loan after partial repayment	$ 10,200,000

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Equity Investments in Unconsolidated Subsidiaries - Activity Relating to Our Equity Investments in Unconsolidated Subsidiaries (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Schedule of Equity Method Investments [Line Items]
Beginning Balance	$ 9,441
Distributions	(8,167)	$ (5,007)
Ending Balance	1,678
CT Opportunity Partners I, LP [Member]
Schedule of Equity Method Investments [Line Items]
Beginning Balance	9,441
Distributions	(8,167)
Income allocation	404
Ending Balance	$ 1,678

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Equity Investments in Unconsolidated Subsidiaries - Additional Information (Detail) - CT Opportunity Partners I, LP [Member] - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Jan. 31, 2011
Schedule of Equity Method Investments [Line Items]
Carried interest revenue, percentage of fund's profit	17.70%
Preferred return	9.00%
Return of capital to partners	100.00%
Carried interest revenue	$ 1.7
Promote income recognized	$ 2.2	$ 5.7
Percentage of carried interest distributions pool for employees			45.00%
Percentage of pool vested	68.00%
Fully vested pool, percentage	32.00%
Description of incentive management fee grants to employees vesting schedule	Approximately 68% of the pool is two-thirds vested as of September 30, 2016, with the remainder contingent on continued employment with an affiliate of our Manager and upon our receipt of promote distributions from CTOPI. The remaining 32% of the pool is fully vested as a result of an acceleration event. During the nine months ended September 30, 2016, we recognized $168,000, under the CTOPI incentive plan, compared to $2.5 million for the same period in 2015. Such amounts were recognized as a component of general and administrative expenses in our consolidated statement of operations.
CTOPI Incentive Plan [Member]
Schedule of Equity Method Investments [Line Items]
Recognized expenses for incentive plan	$ 1.1	$ 2.6

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Other Assets and Liabilities - Summary of Components of Other Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Loan portfolio payments held by servicer	$ 33,050	$ 122,666
Accrued interest receivable	31,323	37,161
Real estate debt and equity investments, at fair value	1,441	14,220
Prepaid expenses	325	890
Derivative assets	268	8,657
Prepaid taxes	206	525
Total	$ 66,613	$ 184,119

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Other Assets and Liabilities - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Manager [Member]
Schedule Of Other Assets [Line Items]
Accrued management and incentive fees payable	$ 13.7	$ 14.4
Other Liabilities [Member]
Schedule Of Other Assets [Line Items]
Secured debt repayments pending servicer remittance	58.2
Accrued dividends payable	22.8	58.1
Other Liabilities [Member] | Manager [Member]
Schedule Of Other Assets [Line Items]
Accrued management and incentive fees payable	$ 13.7	$ 14.4

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Secured Debt Agreements - Schedule of Secured Debt Agreements (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Secured debt agreements borrowings outstanding	$ 653,652
Secured debt agreements borrowings outstanding	5,335,908	$ 6,131,751
Deferred financing costs	(15,550)	(15,646)
Net book value of secured debt	5,320,358	6,116,105
Revolving Repurchase Facilities [Member]
Debt Instrument [Line Items]
Secured debt agreements borrowings outstanding	3,044,434	2,495,805
GE Portfolio Acquisition Facility [Member]
Debt Instrument [Line Items]
Secured debt agreements borrowings outstanding	1,587,822	3,161,291
Asset-Specific Financings [Member]
Debt Instrument [Line Items]
Secured debt agreements borrowings outstanding	653,652	$ 474,655
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Secured debt agreements borrowings outstanding	$ 50,000

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Secured Debt Agreements - Revolving Repurchase Facilities (Detail) - Revolving Repurchase Facilities [Member]	Sep. 30, 2016 USD ($)	Sep. 30, 2016 GBP (£)	Sep. 30, 2016 EUR (€)	Dec. 31, 2015 USD ($)
Line of Credit Facility [Line Items]
Maximum Facility Size	$ 5,523,080,000			$ 4,332,267,000
Collateral Assets	4,669,175,000			3,811,792,000
Potential	3,635,621,000			2,982,833,000
Repurchase Borrowings Outstanding	3,044,434,000			2,495,805,000
Available	591,187,000			487,028,000
Morgan Stanley [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size	324,200,000	£ 250,000,000		370,400,000
Collateral Assets	254,803,000			273,280,000
Potential	200,665,000			212,050,000
Repurchase Borrowings Outstanding	200,665,000			209,038,000
Available				3,012,000
Societe Generale [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size	448,880,000		€ 400,000,000	437,320,000
Collateral Assets	166,369,000			67,416,000
Potential	131,000,000			53,933,000
Repurchase Borrowings Outstanding	102,945,000			53,933,000
Available	28,055,000
JP Morgan [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size	500,000,000			524,547,000
Collateral Assets	524,516,000			589,752,000
Potential	403,483,000			464,723,000
Repurchase Borrowings Outstanding	353,630,000			382,042,000
Available	49,853,000			82,681,000
Wells Fargo [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size	2,000,000,000			1,000,000,000
Collateral Assets	1,390,190,000			879,155,000
Potential	1,085,153,000			687,200,000
Repurchase Borrowings Outstanding	801,271,000			562,382,000
Available	283,882,000			124,818,000
MetLife [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size	1,000,000,000			750,000,000
Collateral Assets	967,359,000			593,273,000
Potential	756,054,000			462,849,000
Repurchase Borrowings Outstanding	756,054,000			324,587,000
Available				138,262,000
Bank of America [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size	750,000,000			750,000,000
Collateral Assets	742,081,000			840,884,000
Potential	577,694,000			665,861,000
Repurchase Borrowings Outstanding	577,694,000			618,944,000
Available				46,917,000
Citibank [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size	500,000,000			500,000,000
Collateral Assets	623,857,000			568,032,000
Potential	481,572,000			436,217,000
Repurchase Borrowings Outstanding	252,175,000			344,879,000
Available	$ 229,397,000			$ 91,338,000

XML

Secured Debt Agreements - Revolving Repurchase Facilities (Parenthetical) (Detail)	Sep. 30, 2016 USD ($)	Sep. 30, 2016 GBP (£)	Sep. 30, 2016 EUR (€)	Dec. 31, 2015 USD ($)	Dec. 31, 2015 GBP (£)
Revolving Repurchase Facilities [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size	$ 5,523,080,000			$ 4,332,267,000
Revolving Repurchase Facilities [Member] | Morgan Stanley [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size	324,200,000	£ 250,000,000		370,400,000
Revolving Repurchase Facilities [Member] | Societe Generale [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size	448,880,000		€ 400,000,000	437,320,000
Revolving Repurchase Facilities [Member] | JP Morgan [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size	500,000,000			524,547,000
Revolving Repurchase Facilities [Member] | JP Morgan [Member] | $250.0 Million Facility [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size	$ 500,000,000			250,000,000
Revolving Repurchase Facilities [Member] | JP Morgan [Member] | UK Pound Sterling 153.0 Million ($226.7 Million) Facility [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size				226,700,000	£ 153,000,000
Pledged Assets Repayment Revolving Repurchase Facilities [Member] | JP Morgan [Member]
Line of Credit Facility [Line Items]
Maximum Facility Size				$ 47,800,000	£ 32,300,000

XML

Secured Debt Agreements - Additional Information (Detail)		3 Months Ended				6 Months Ended	9 Months Ended			12 Months Ended
	Sep. 30, 2016 USD ($) ExtensionOptions	Sep. 30, 2016 USD ($) ExtensionOptions	Jun. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($) ExtensionOptions	Jun. 30, 2016 USD ($)	Sep. 30, 2016 USD ($) ExtensionOptions	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Debt Instrument [Line Items]
Maturity date							Feb. 28, 2017
Secured debt agreements borrowings outstanding	$ 5,320,358,000	$ 5,320,358,000					$ 5,320,358,000	$ 6,116,105,000		$ 6,116,105,000
Interest expense		45,373,000		$ 51,329,000			139,819,000		$ 106,125,000
Secured debt agreements borrowings outstanding	5,335,908,000	5,335,908,000					5,335,908,000	6,131,751,000		6,131,751,000
Covenants, minimum tangible net worth	$ 1,900,000,000	$ 1,900,000,000					$ 1,900,000,000
Covenants, percentage of tangible assets on cash proceeds from equity issuances							75.00%
Covenants, percentage of recourse indebtedness	5.00%	5.00%					5.00%
Maximum [Member]
Debt Instrument [Line Items]
Covenants, indebtedness to total assets, in percent	83.33%	83.33%					83.33%
Minimum [Member]
Debt Instrument [Line Items]
Covenants, EBITDA to fixed charges, in percent							140.00%
Covenants, minimum cash liquidity amount	$ 10,000,000	$ 10,000,000					$ 10,000,000
Asset-Specific Financings [Member]
Debt Instrument [Line Items]
Weighted-average outstanding balance							557,900,000	574,300,000
Revolving Repurchase Facilities [Member]
Debt Instrument [Line Items]
Weighted-average outstanding balance							2,900,000,000	2,500,000,000
Aggregate borrowings	3,000,000,000	3,000,000,000					$ 3,000,000,000	2,500,000,000		$ 2,500,000,000
Weighted-average advance rate							79.10%			78.80%
Weighted-average initial maturity							1 year 4 months 24 days			1 year 3 months 18 days
Maximum Facility Size	5,523,080,000	5,523,080,000					$ 5,523,080,000	4,332,267,000		$ 4,332,267,000
Amount available for potential future fundings of loan	591,187,000	591,187,000					591,187,000	487,028,000		487,028,000
Current borrowing capacity	3,635,621,000	3,635,621,000					3,635,621,000	2,982,833,000		2,982,833,000
Secured debt agreements borrowings outstanding	3,044,434,000	3,044,434,000					$ 3,044,434,000	2,495,805,000		2,495,805,000
Revolving Repurchase Facilities [Member] | Wells Fargo [Member]
Debt Instrument [Line Items]
Weighted-average advance rate							79.60%
Maximum Facility Size	2,000,000,000	2,000,000,000					$ 2,000,000,000	1,000,000,000		1,000,000,000
Amount available for potential future fundings of loan	283,882,000	283,882,000					$ 283,882,000	124,818,000		124,818,000
Borrowings maturity term							Term matched
Current borrowing capacity	1,085,153,000	1,085,153,000					$ 1,085,153,000	687,200,000		687,200,000
GE Portfolio Acquisition Facility [Member]
Debt Instrument [Line Items]
Secured debt agreements borrowings outstanding	1,587,822,000	1,587,822,000					1,587,822,000	3,161,291,000		3,161,291,000
GE Portfolio Acquisition Facility [Member] | Sequential Repay Advance [Member]
Debt Instrument [Line Items]
Term of maturity date					1 year
Secured debt agreements borrowings outstanding								40,700,000		40,700,000
Current borrowing capacity					$ 237,200,000
Percentage of additional advance					5.00%
Sequential Repay Advance, percentage of guarantee rate					100.00%
GE Portfolio Acquisition Facility [Member] | Wells Fargo [Member]
Debt Instrument [Line Items]
Maximum Facility Size	1,800,000,000	1,800,000,000					1,800,000,000
Approximate credit line, outstanding amount	1,600,000,000
Amount available for potential future fundings of loan	200,500,000	200,500,000					$ 200,500,000
Additional credit capacity			$ 125,000,000
GE Portfolio Acquisition Facility [Member] | Asset Specific Borrowings [Member]
Debt Instrument [Line Items]
Weighted average rate					80.00%
Maturity date							May 20, 2020
Borrowings maturity term							The asset-specific borrowings are term matched to the underlying collateral assets with an outside maturity date of May 20, 2020, which may be extended pursuant to two one-year extension options.
Number of extension options | ExtensionOptions					2
Term of maturity date					1 year
Secured debt agreements borrowings outstanding	1,600,000,000	1,600,000,000					$ 1,600,000,000	$ 3,100,000,000		$ 3,100,000,000
GE Portfolio Acquisition Facility [Member] | Asset Specific Borrowings [Member] | Maximum [Member]
Debt Instrument [Line Items]
Percentage of guarantee rate					25.00%
Guarantee of outstanding borrowings					$ 250,000,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Weighted-average outstanding balance		24,500,000					29,700,000
Interest expense		421,000,000					915,000,000
Amortization of deferred fees and expenses		127,000,000					248,000,000
Secured debt agreements borrowings outstanding	$ 50,000,000	$ 50,000,000					$ 50,000,000
Revolving Credit Facility [Member] | Barclays [Member]
Debt Instrument [Line Items]
Maximum Facility Size			$ 125,000,000			$ 125,000,000
Number of extension options | ExtensionOptions	2	2					2
Term of maturity date							1 year
First mortgage bridge to term financing maximum period						6 months
Base Rate [Member] | GE Portfolio Acquisition Facility [Member] | Asset Specific Borrowings [Member] | Primary [Member]
Debt Instrument [Line Items]
Basis spread on debt obligation, in percent					1.75%
Base Rate [Member] | GE Portfolio Acquisition Facility [Member] | Asset Specific Borrowings [Member] | Primary [Member] | Year Four [Member]
Debt Instrument [Line Items]
Basis spread on debt obligation, in percent					1.80%
Base Rate [Member] | GE Portfolio Acquisition Facility [Member] | Asset Specific Borrowings [Member] | Primary [Member] | Year Five [Member]
Debt Instrument [Line Items]
Basis spread on debt obligation, in percent					1.85%
LIBOR [Member] | Revolving Repurchase Facilities [Member] | Wells Fargo [Member]
Debt Instrument [Line Items]
Basis spread on debt obligation, in percent							1.77%
LIBOR [Member] | Revolving Repurchase Facilities [Member] | Weighted-Average Cash Coupon [Member]
Debt Instrument [Line Items]
Basis spread on debt obligation, in percent							1.82%			1.83%
LIBOR [Member] | Revolving Repurchase Facilities [Member] | Weighted-Average All-in Cost of Credit [Member]
Debt Instrument [Line Items]
Basis spread on debt obligation, in percent							2.01%			2.05%
LIBOR [Member] | GE Portfolio Acquisition Facility [Member] | Sequential Repay Advance [Member]
Debt Instrument [Line Items]
Basis spread on debt obligation, in percent					3.10%
LIBOR basis spread on debt obligation							30-day LIBOR

XML

Secured Debt Agreements - Summary of Key Terms of Revolving Repurchase Facilities (Detail) - Revolving Repurchase Facilities [Member]	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Line of Credit Facility [Line Items]
Advance Rate	79.10%	78.80%
Wells Fargo [Member]
Line of Credit Facility [Line Items]
Guarantee	25.00%
Advance Rate	79.60%
Margin Call	Collateral marks only
Term/Maturity	Term matched
Wells Fargo [Member] | LIBOR [Member]
Line of Credit Facility [Line Items]
Rate	1.77%
MetLife [Member]
Line of Credit Facility [Line Items]
Guarantee	50.00%
Advance Rate	78.80%
Margin Call	Collateral marks only
Term/Maturity	April 22, 2022
MetLife [Member] | LIBOR [Member]
Line of Credit Facility [Line Items]
Rate	1.84%
Bank of America [Member]
Line of Credit Facility [Line Items]
Guarantee	50.00%
Advance Rate	79.30%
Margin Call	Collateral marks only
Term/Maturity	May 21, 2021
Bank of America [Member] | LIBOR [Member]
Line of Credit Facility [Line Items]
Rate	1.67%
JP Morgan [Member]
Line of Credit Facility [Line Items]
Guarantee	50.00%
Advance Rate	78.80%
Margin Call	Collateral marks only
Term/Maturity	January 7, 2019
JP Morgan [Member] | LIBOR [Member]
Line of Credit Facility [Line Items]
Rate	1.84%
Citibank [Member]
Line of Credit Facility [Line Items]
Guarantee	25.00%
Advance Rate	78.30%
Margin Call	Collateral marks only
Term/Maturity	Term matched
Citibank [Member] | LIBOR [Member]
Line of Credit Facility [Line Items]
Rate	1.85%
Morgan Stanley [Member]
Line of Credit Facility [Line Items]
Guarantee	25.00%
Advance Rate	78.80%
Margin Call	Collateral marks only
Term/Maturity	March 1, 2019
Morgan Stanley [Member] | LIBOR [Member]
Line of Credit Facility [Line Items]
Rate	2.35%
Societe Generale [Member]
Line of Credit Facility [Line Items]
Guarantee	25.00%
Advance Rate	80.00%
Margin Call	Collateral marks only
Term/Maturity	Term matched
Societe Generale [Member] | LIBOR [Member]
Line of Credit Facility [Line Items]
Rate	1.71%

XML

Secured Debt Agreements - Summary of Key Terms of Revolving Repurchase Facilities (Parenthetical) (Detail) - Revolving Repurchase Facilities [Member]	9 Months Ended
	Sep. 30, 2016 ExtensionOptions
MetLife [Member]
Line of Credit Facility [Line Items]
Maturity period	Includes five one-year extension options which may be exercised at our sole discretion.
Number of extension options	5
Term of maturity date	1 year
Bank of America [Member]
Line of Credit Facility [Line Items]
Maturity period	Includes two one-year extension options which may be exercised at our sole discretion.
Number of extension options	2
Term of maturity date	1 year

XML

Secured Debt Agreements - Summary of Statistics for Asset-Specific Financings (Detail) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016 USD ($) SecurityLoan	Dec. 31, 2015 USD ($) SecurityLoan
Participating Mortgage Loans [Line Items]
Collateral assets, Book Value	$ 826,790
Financing provided, Book Value	650,415
Collateral assets, Principal Balance	834,189
Financing provided, Principal Balance	$ 653,652
Collateral Assets [Member]
Participating Mortgage Loans [Line Items]
Collateral assets, Book Value		$ 627,839
Collateral assets, Principal Balance		$ 631,524
Count | SecurityLoan	7	5
LIBOR [Member] | Collateral Assets [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost Rate	4.76%	4.44%
JP Morgan [Member] | Collateral Assets [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Term	2020-01	2020-01
Collateral assets, Book Value	$ 278,963	$ 272,632
Collateral assets, Principal Balance	$ 280,415	$ 274,878
Count | SecurityLoan	1	1
JP Morgan [Member] | LIBOR [Member] | Collateral Assets [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost Rate	3.88%	3.88%
Citibank [Member] | Collateral Assets [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Term	2020-11	2018-10
Collateral assets, Book Value	$ 201,135	$ 36,514
Collateral assets, Principal Balance	$ 201,270	$ 36,749
Count | SecurityLoan	2	1
Citibank [Member] | LIBOR [Member] | Collateral Assets [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost Rate	4.45%	4.42%
Deutsche Bank [Member] | Collateral Assets [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Term	2021-08
Collateral assets, Book Value	$ 178,107
Collateral assets, Principal Balance	$ 180,740
Count | SecurityLoan	1
Deutsche Bank [Member] | LIBOR [Member] | Collateral Assets [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost Rate	5.17%
Bank of the Ozarks [Member] | Collateral Assets [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Term	2020-02
Collateral assets, Book Value	$ 105,630
Collateral assets, Principal Balance	$ 108,423
Count | SecurityLoan	2
Bank of the Ozarks [Member] | LIBOR [Member] | Collateral Assets [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost Rate	6.20%
Wells Fargo [Member] | Collateral Assets [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Term	2019-12	2019-06
Collateral assets, Book Value	$ 62,955	$ 318,693
Collateral assets, Principal Balance	$ 63,341	$ 319,897
Count | SecurityLoan	1	3
Wells Fargo [Member] | LIBOR [Member] | Collateral Assets [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost Rate	6.05%	4.92%
Asset-Specific Financings [Member]
Participating Mortgage Loans [Line Items]
Guarantee	$ 232,908	$ 102,579
Financing provided, Book Value		473,799
Financing provided, Principal Balance	$ 653,652	$ 474,655
Count | SecurityLoan	7	5
Asset-Specific Financings [Member] | LIBOR [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost Rate	2.57%	2.16%
Asset-Specific Financings [Member] | JP Morgan [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Term	2020-01	2020-01
Guarantee	$ 116,839	$ 53,623
Financing provided, Book Value	233,541	214,391
Financing provided, Principal Balance	$ 233,679	$ 214,491
Count | SecurityLoan	1	1
Asset-Specific Financings [Member] | JP Morgan [Member] | LIBOR [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost Rate	1.89%	1.94%
Asset-Specific Financings [Member] | Citibank [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Term	2020-11	2018-10
Guarantee	$ 39,663	$ 6,329
Financing provided, Book Value	158,605	25,293
Financing provided, Principal Balance	$ 158,652	$ 25,314
Count | SecurityLoan	2	1
Asset-Specific Financings [Member] | Citibank [Member] | LIBOR [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost Rate	2.48%	2.08%
Asset-Specific Financings [Member] | Deutsche Bank [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Term	2021-08
Guarantee	$ 67,538
Financing provided, Book Value	133,599
Financing provided, Principal Balance	$ 135,075
Count | SecurityLoan	1
Asset-Specific Financings [Member] | Deutsche Bank [Member] | LIBOR [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost Rate	3.00%
Asset-Specific Financings [Member] | Bank of the Ozarks [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Term	2020-02
Financing provided, Book Value	$ 80,603
Financing provided, Principal Balance	$ 81,907
Count | SecurityLoan	2
Asset-Specific Financings [Member] | Bank of the Ozarks [Member] | LIBOR [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost Rate	3.59%
Asset-Specific Financings [Member] | Wells Fargo [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Term	2019-12	2019-06
Guarantee	$ 8,868	$ 42,627
Financing provided, Book Value	44,067	234,115
Financing provided, Principal Balance	$ 44,339	$ 234,850
Count | SecurityLoan	1	3
Asset-Specific Financings [Member] | Wells Fargo [Member] | LIBOR [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost Rate	3.20%	2.37%

XML

Loan Participations Sold - Summary of Statistics for Loan Participations Sold (Detail) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016 USD ($) Loans	Dec. 31, 2015 USD ($) Loans
Participating Mortgage Loans [Line Items]
Count | Loans	2	3
Principal Balance	$ 495,912	$ 608,554
Book Value	$ 409,654	$ 497,032
Weighted Average Term	2019-09	2018-11
Senior Participation [Member]
Participating Mortgage Loans [Line Items]
Count | Loans	2	3
Principal Balance	$ 411,427	$ 498,992
Book Value	409,654	497,032
Guarantee	$ 31,123	$ 35,558
Weighted Average Term	2019-09	2018-11
LIBOR [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost	4.51%	4.15%
LIBOR [Member] | Senior Participation [Member]
Participating Mortgage Loans [Line Items]
Weighted Average Yield/Cost	2.71%	2.49%

XML

Loan Participations Sold - Summary of Statistics for Loan Participations Sold (Parenthetical) (Detail) $ in Thousands, £ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 GBP (£)	Dec. 31, 2015 USD ($)
Participating Mortgage Loans [Line Items]
Guarantor obligations	$ 31,100		$ 31,100		£ 24.0
Interest paid			123,564	$ 85,494
Deferred financing costs	15,550		15,550			$ 15,646
Loan Participations Sold [Member]
Participating Mortgage Loans [Line Items]
Interest expense	3,400	$ 5,200	10,700	14,400
Interest paid	3,200	$ 4,500	10,300	$ 13,200
Deferred financing costs	$ 1,800		$ 1,800			$ 2,000

XML

Convertible Notes, Net - Additional Information (Detail)		1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 28, 2016 USD ($) $ / shares	Nov. 30, 2013 USD ($) $ / shares	Sep. 30, 2016 USD ($) $ / shares	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) $ / shares	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Debt Instrument [Line Items]
Maturity date					Feb. 28, 2017
Convertible notes, net			$ 166,064,000		$ 166,064,000		$ 164,026,000
5.25% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Convertible Senior Notes, Principal amount		$ 172,500,000
Convertible Senior Notes, Interest rate		5.25%
Maturity date					Dec. 01, 2018
Convertible Senior Notes, Interest rate including underwriter discounts		5.87%
Description of Convertible Notes conversion					The Convertible Notes are convertible at the holders' option into shares of our class A common stock, only under specific circumstances prior to the close of business on August 31, 2018, at the applicable conversion rate in effect on the conversion date.
Discount upon issuance of Convertible Notes		$ 9,100,000	6,200,000		$ 6,200,000		8,200,000
Debt issuance costs		$ 4,100,000
Convertible Notes, assumed effective interest rate		6.50%
Convertible Senior Notes, Interest rate including amortization of discount upon issuance		7.16%
Total interest on convertible notes			3,000,000	$ 2,900,000	8,800,000	$ 8,700,000
Interest on convertible notes related to cash coupon			2,300,000	2,300,000	6,800,000	6,800,000
Interest on convertible notes related to amortization of discount and certain issuance costs			691,000	$ 649,000	2,000,000	$ 1,900,000
Accrued interest payable			3,000,000		3,000,000		755,000
Deferred financing costs			$ 231,000		$ 231,000		$ 305,000
5.25% Convertible Senior Notes [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, conversion price | $ / shares			$ 28.95		$ 28.95
5.25% Convertible Senior Notes [Member] | Class A Common Stock [Member]
Debt Instrument [Line Items]
Convertible Notes, debt conversion, common stock issued, in percent	35.7236	34.8943
Convertible Notes, debt conversion, principal amount	$ 1,000	$ 1,000
Debt instrument, conversion price | $ / shares	$ 27.99	$ 28.66

XML

Derivative Financial Instruments - Summary of Outstanding Foreign Exchange Derivatives Designated as Net Investment Hedges of Foreign Currency Risk (Detail) - Sell [Member] - Designated as Hedging Instrument [Member] - Foreign Exchange Forward [Member] - Net Investment Hedges [Member] € in Thousands, £ in Thousands, CAD in Thousands	Sep. 30, 2016 GBP (£) DerivativeInstrument	Sep. 30, 2016 EUR (€) DerivativeInstrument	Sep. 30, 2016 CAD DerivativeInstrument	Dec. 31, 2015 GBP (£) DerivativeInstrument	Dec. 31, 2015 EUR (€) DerivativeInstrument	Dec. 31, 2015 CAD DerivativeInstrument
EUR [Member]
Derivative [Line Items]
Number of Instruments	1	1	1	1	1	1
Notional Amount | €		€ 44,900			€ 49,000
GBP [Member]
Derivative [Line Items]
Number of Instruments	1	1	1	2	2	2
Notional Amount | £	£ 117,900			£ 90,400
CAD [Member]
Derivative [Line Items]
Number of Instruments	1	1	1	2	2	2
Notional Amount | CAD			CAD 119,600			CAD 154,900

XML

Derivative Financial Instruments - Summary of Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges of Interest Rate Risk (Detail) - Cash Flow Hedges [Member] - Designated as Hedging Instrument [Member] € in Thousands, £ in Thousands, CAD in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016 USD ($) DerivativeInstrument	Dec. 31, 2015 USD ($) DerivativeInstrument	Sep. 30, 2016 GBP (£) DerivativeInstrument	Sep. 30, 2016 CAD DerivativeInstrument	Dec. 31, 2015 GBP (£) DerivativeInstrument	Dec. 31, 2015 EUR (€) DerivativeInstrument	Dec. 31, 2015 CAD DerivativeInstrument
Interest Rate Caps [Member] | USD [Member] | USD LIBOR [Member]
Derivative [Line Items]
Number of Instruments	25	26	25	25	26	26	26
Notional Amount | $	$ 1,086,261	$ 1,097,632
Strike	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%
Wtd. Avg. Maturity (Years)	7 months 6 days	1 year 3 months 18 days
Interest Rate Caps [Member] | CAD [Member] | CDOR [Member]
Derivative [Line Items]
Number of Instruments	6	7	6	6	7	7	7
Notional Amount | CAD				CAD 439,320			CAD 483,286
Strike	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%
Wtd. Avg. Maturity (Years)	7 months 6 days	1 year 2 months 12 days
Interest Rate Caps [Member] | EUR [Member] | EURIBOR [Member]
Derivative [Line Items]
Number of Instruments		1			1	1	1
Notional Amount | €						€ 152,710
Strike		2.00%			2.00%	2.00%	2.00%
Wtd. Avg. Maturity (Years)		1 year
Interest Rate Caps [Member] | GBP [Member] | GBP LIBOR [Member]
Derivative [Line Items]
Number of Instruments	1	1	1	1	1	1	1
Notional Amount | £			£ 15,142		£ 15,142
Strike	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%	2.00%
Wtd. Avg. Maturity (Years)	7 months 6 days	1 year 3 months 18 days
Interest Rate Swaps [Member] | CAD [Member] | CDOR [Member]
Derivative [Line Items]
Number of Instruments	2		2	2
Notional Amount | CAD				CAD 17,273
Strike	1.00%		1.00%	1.00%
Wtd. Avg. Maturity (Years)	3 years 10 months 24 days

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Derivative Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net asset position of derivative counterparties	$ 48,000		$ 48,000
Net liability position of derivative counterparties	921,000		921,000
Not Designated as Hedging Instrument [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivatives recorded losses during the period	528,000	$ 748,000	2,200,000	$ 759,000
Interest Rate Caps [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Reclassification from accumulated other comprehensive income as increase to interest expense			1,400,000
Cash flow hedge ineffectiveness	$ 0	$ 0	$ 0	$ 0

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Derivative Financial Instruments - Summary of Non-designated Hedges (Detail) - Not Designated as Hedging Instrument [Member] € in Thousands, £ in Thousands, CAD in Thousands, $ in Thousands	Sep. 30, 2016 EUR (€) DerivativeInstrument	Sep. 30, 2016 CAD DerivativeInstrument	Dec. 31, 2015 USD ($) DerivativeInstrument	Dec. 31, 2015 GBP (£) DerivativeInstrument	Dec. 31, 2015 EUR (€) DerivativeInstrument	Dec. 31, 2015 CAD DerivativeInstrument
Foreign Exchange Forward [Member] | GBP [Member] | Buy USD / Sell GBP Forward [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of Instruments			1	1	1	1
Notional Amount | £				£ 10,400
Foreign Exchange Forward [Member] | GBP [Member] | Buy GBP / Sell USD Forward [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of Instruments			1	1	1	1
Notional Amount | £				£ 10,400
Foreign Exchange Forward [Member] | EUR [Member] | Buy GBP / Sell EUR Forward [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of Instruments	1	1	1	1	1	1
Notional Amount | €	€ 12,857				€ 12,857
Foreign Exchange Forward [Member] | CAD [Member] | Buy CAD / Sell USD Forward [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of Instruments	1	1	1	1	1	1
Notional Amount | CAD		CAD 7,000				CAD 1,000
Foreign Exchange Forward [Member] | CAD [Member] | Buy USD / Sell CAD Forward [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of Instruments	1	1	1	1	1	1
Notional Amount | CAD		CAD 7,000				CAD 1,000
Interest Rate Caps [Member] | EUR [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of Instruments	2	2
Notional Amount | €	€ 152,710
Interest Rate Caps [Member] | CAD [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of Instruments	3	3	4	4	4	4
Notional Amount | CAD		CAD 52,630				CAD 67,303
Interest Rate Caps [Member] | USD [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of Instruments			1	1	1	1
Notional Amount | $			$ 13,387

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Derivative Financial Instruments - Summary of Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value of Derivatives in an Asset Position	$ 268	$ 8,657
Fair Value of Derivatives in a Liability Position	1,141	1,448
Designated as Hedging Instrument [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value of Derivatives in an Asset Position	251	8,237
Fair Value of Derivatives in a Liability Position	920	511
Designated as Hedging Instrument [Member] | Foreign Currency Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value of Derivatives in an Asset Position	251	7,999
Fair Value of Derivatives in a Liability Position	895	511
Designated as Hedging Instrument [Member] | Interest Rate Derivatives [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value of Derivatives in an Asset Position		238
Fair Value of Derivatives in a Liability Position	25
Not Designated as Hedging Instrument [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value of Derivatives in an Asset Position	17	420
Fair Value of Derivatives in a Liability Position	221	937
Not Designated as Hedging Instrument [Member] | Foreign Currency Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value of Derivatives in an Asset Position	17	419
Fair Value of Derivatives in a Liability Position	$ 221	937
Not Designated as Hedging Instrument [Member] | Interest Rate Derivatives [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value of Derivatives in an Asset Position		$ 1

XML

Derivative Financial Instruments - Summary of Effect of Derivative Financial Instruments on Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)	$ 5,641	$ 11,474
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion)	(241)	(367)
Foreign Currency Contracts [Member] | Interest Expense [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)	5,627	11,748
Interest Rate Derivatives [Member] | Interest Expense [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)	14	(274)
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion)	$ (241)	$ (367)

XML

Derivative Financial Instruments - Summary of Effect of Derivative Financial Instruments on Consolidated Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net Investment Hedges [Member] | Foreign Currency Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net cash settlements on our foreign currency forward contracts	$ 19.2	$ 10.8	$ 17.4	$ 13.7

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Equity - Additional Information (Detail) - USD ($)				1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 14, 2016	Sep. 13, 2016	May 09, 2014	May 31, 2013	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Mar. 25, 2014
Class of Stock [Line Items]
Total stock, shares authorized					300,000,000		300,000,000
Common stock, shares authorized					200,000,000		200,000,000		200,000,000
Preferred stock, shares authorized					100,000,000		100,000,000
Preferred stock issued					0		0
Preferred stock outstanding					0		0
Plan adoption date					Mar. 25, 2014
Common stock, shares issued under dividend reinvestment component					262	145	812	418
Number of shares sold during period				25,875,000			812	34,780,443
Dividends declared per share of common stock		$ 0.62			$ 0.62	$ 0.62	$ 1.86	$ 1.66
Date of dividend paid							Oct. 14, 2016
Date of dividend declared							Sep. 13, 2016
Record date of dividend paid							Sep. 30, 2016
Accumulated other comprehensive loss					$ 46,389,000		$ 46,389,000		$ 32,758,000
Realized and unrealized gains related to changes in fair value of derivative instruments					36,900,000		36,900,000		25,000,000
Cumulative unrealized currency translation adjustment on assets and liabilities denominated in foreign currencies					83,300,000		83,300,000		57,800,000
Equity interests owned by Blackstone Mortgage Trust, Inc.									9,400,000
Non-controlling interests in CT Legacy Partners									13,100,000
CT Legacy Partners [Member]
Class of Stock [Line Items]
CT Legacy Partners' total equity					1,900,000		1,900,000		$ 22,500,000
Equity interests owned by Blackstone Mortgage Trust, Inc.					786,000		786,000
Non-controlling interests in CT Legacy Partners					1,100,000		$ 1,100,000
Subsequent Events [Member]
Class of Stock [Line Items]
Dividends paid	$ 58,200,000
Dividends paid per common stock	$ 0.62
ATM Agreements [Member]
Class of Stock [Line Items]
Aggregate sales price			$ 200,000,000
Number of shares sold during period							0	0
Aggregate sales price remaining available					$ 188,600,000		$ 188,600,000
Dividend Reinvestment and Direct Stock Purchase Plan [Member]
Class of Stock [Line Items]
Reserved for issuance of class A common stock					9,998,585		9,998,585			10,000,000

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Equity - Schedule of Movement in Outstanding Shares of Class A Common Stock, Restricted Class A Common Stock and Deferred Stock Units (Detail) - shares	1 Months Ended	9 Months Ended
	May 31, 2013	Sep. 30, 2016	Sep. 30, 2015
Equity [Abstract]
Beginning balance		93,843,847	58,388,808
Issuance of class A common stock	25,875,000	812	34,780,443
Issuance of restricted class A common stock, net		209,798	162,531
Issuance of deferred stock units		20,850	16,288
Ending balance		94,075,307	93,348,070

XML

Equity - Schedule of Movement in Outstanding Shares of Class A Common Stock, Restricted Class A Common Stock and Deferred Stock Units (Parenthetical) (Detail) - shares	Sep. 30, 2016	Sep. 30, 2015
Class A Common Stock [Member]
Class of Stock [Line Items]
Deferred stock units held by directors	162,371	135,207

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Equity - Schedule of Dividend Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Sep. 13, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Equity [Abstract]
Dividends declared per share of common stock	$ 0.62	$ 0.62	$ 0.62	$ 1.86	$ 1.66
Total dividends declared		$ 58,226	$ 57,800	$ 174,678	$ 136,674

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Equity - Schedule of Basic and Diluted Earnings Per Share, or EPS, Based on Weighted-Average of Both Restricted and Unrestricted Class A Common Stock Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income	$ 64,794	$ 66,888	$ 184,921	$ 131,564
Weighted-average shares outstanding, basic and diluted	94,071,537	93,357,960	94,067,923	77,752,247
Per share amount, basic and diluted	$ 0.69	$ 0.72	$ 1.97	$ 1.69

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Other Expenses - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Management fee - percent of outstanding equity balance			1.50%
Incentive fee computation-percent of the product per agreement			20.00%
Incentive fee computation-percent of outstanding Equity per annum			7.00%
Management fees description			Manager is entitled to an incentive fee in an amount equal to the product of (i) 20% and (ii) the excess of (a) our Core Earnings (as defined in our management agreement) for the previous 12-month period over (b) an amount equal to 7.00% per annum multiplied by our outstanding Equity, provided that our Core Earnings over the prior three-year period is greater than zero. Core Earnings, as defined in our management agreement, is generally equal to our net income (loss) prepared in accordance with GAAP, excluding (i) certain non-cash items (ii) the net income (loss) related to our legacy portfolio and (iii) incentive management fees.
Management fees	$ 13,701,000	$ 13,813,000	$ 43,161,000	$ 28,535,000
Manager [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Management fees	9,500,000	9,400,000	28,400,000	22,900,000
Incentive fees payable	4,200,000	$ 4,500,000	14,800,000	$ 5,700,000
Accrued management and incentive fees payable	$ 13,700,000		$ 13,700,000		$ 14,400,000
Incentive Awards Plan [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Percentage of the dividends paid to common equity holders created employee pool	6.75%		6.75%
Percentage of pool vested			50.00%
Vested pool, percentage			75.00%
Fully vested pool, percentage	27.00%		27.00%
Percentage of pool vesting upon receipt of dividends	23.00%		23.00%
Description of incentive management fee awards to employees vesting schedule			Approximately 50% of the pool was 75% vested as of September 30, 2016, with the remainder contingent on continued employment with an affiliate of our Manager and our receipt of distributions from CT Legacy Partners. Of the remaining 50% of the pool, 27% is fully vested as a result of an acceleration event, and 23% vest only upon our receipt of distributions from CT Legacy Partners.
Accrued payables, awards	$ 114,000		$ 114,000		$ 1,300,000

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Other Expenses - Schedule of General and Administrative Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Professional services	$ 828	$ 898	$ 2,474	$ 2,375
Operating and other costs	305	671	1,695	1,783
Subtotal	1,133	1,939	4,169	13,741
Non-cash and CT Legacy Portfolio compensation expenses
Restricted class A common stock earned	4,855	3,095	14,190	9,601
Subtotal	6,241	3,286	16,690	14,638
General and administrative expenses	7,414	5,295	20,990	28,655
General Electrical Capital Corporation [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
GE transaction costs		370		9,583
General and Administrative Expense [Member]
Non-cash and CT Legacy Portfolio compensation expenses
Director stock-based compensation	94	94	282	281
CT Legacy Partners [Member]
Non-cash and CT Legacy Portfolio compensation expenses
Management incentive awards plan	354	89	1,112	2,151
Blackstone [Member]
Non-cash and CT Legacy Portfolio compensation expenses
General and administrative expenses	7,374	5,225	20,859	23,154
REIT [Member]
Non-cash and CT Legacy Portfolio compensation expenses
General and administrative expenses	40	70	131	276
CT Opportunity Partners I, LP [Member]
Non-cash and CT Legacy Portfolio compensation expenses
Management incentive awards plan	$ 938	$ 8	$ 1,106	$ 2,605

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Income Taxes - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2013	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Tax Credit Carryforward [Line Items]
Annual distribution of net taxable income for U.S. federal income tax not to apply to our earnings that we distribute (percent)				90.00%
Net taxable income subject to distribution (percent)				100.00%
Excise tax rate				4.00%
Income tax provision		$ 194,000	$ 81,000	$ 281,000	$ 431,000
Deferred tax assets		0		0		$ 0
Deferred tax liabilities		0		$ 0		0
Common stock, shares issued	25,875,000			812	34,780,443
Net operating losses carried forward						159,000,000
Net capital losses carried forward						$ 602,000
NOLs expiration date				Dec. 31, 2029
Internal Revenue Service [Member]
Tax Credit Carryforward [Line Items]
Net operating losses and net capital losses		$ 2,000,000		$ 2,000,000
Earliest Tax Year [Member]
Tax Credit Carryforward [Line Items]
Open tax year				2013
Latest Tax Year [Member]
Tax Credit Carryforward [Line Items]
Open tax year				2015

XML

Stock-Based Incentive Plans - Additional Information (Detail) $ / shares in Units, $ in Millions		9 Months Ended
	Sep. 30, 2016 USD ($) Plans $ / shares shares	Sep. 30, 2016 USD ($) Plans $ / shares shares	Dec. 31, 2015 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of benefit plans | Plans	7	7
Restricted Class A Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares, vesting period		3 years
Number of shares of restricted class A common stock outstanding	810,857	810,857	1,114,908
Unrecognized compensation cost relating to nonvested share-based compensation | $	$ 23.9	$ 23.9
Unrecognized compensation cost expected to be recognized over weighted average period	1 year
Nonvested share-based compensation, closing price | $ / shares	$ 29.45	$ 29.45
Expired Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available under plan	0	0
Vest in 2016 [Member] | Restricted Class A Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of restricted class A common stock outstanding	127,932	127,932
Vest in 2017 [Member] | Restricted Class A Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of restricted class A common stock outstanding	446,781	446,781
Vest in 2018 [Member] | Restricted Class A Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of restricted class A common stock outstanding	236,144	236,144
Class A Common Stock [Member] | Stock Incentive Current Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available under plan	2,389,910	2,389,910
Maximum number of shares available under plan	2,400,000	2,400,000

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Stock-Based Incentive Plans - Movement in Outstanding Shares of Restricted Class A Common Stock and Weighted-Average Grant Date Fair Value Per Share (Detail) - Restricted Class A Common Stock [Member]	9 Months Ended
	Sep. 30, 2016 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Class A Common Stock, Beginning Balance | shares	1,114,908
Restricted Class A Common Stock, Granted | shares	245,225
Restricted Class A Common Stock, Vested | shares	(513,849)
Restricted Class A Common Stock, Forfeited | shares	(35,427)
Restricted Class A Common Stock, Ending Balance | shares	810,857
Weighted-Average Grant Date Fair Value Per Share, Beginning Balance | $ / shares	$ 27.64
Weighted-Average Grant Date Fair Value Per Share, Granted | $ / shares	26.51
Weighted-Average Grant Date Fair Value Per Share, Vested | $ / shares	27.10
Weighted-Average Grant Date Fair Value Per Share, Forfeited | $ / shares	27.49
Weighted-Average Grant Date Fair Value Per Share, Ending Balance | $ / shares	$ 27.64

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Fair Values - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Derivatives	$ 268	$ 8,657
Recurring [Member]
Assets
Derivatives	268	8,657
Other assets	1,441	14,220
Liabilities
Derivatives	1,141	1,448
Level 2 [Member] | Recurring [Member]
Assets
Derivatives	268	8,657
Other assets	241	1,659
Liabilities
Derivatives	1,141	1,448
Level 3 [Member] | Recurring [Member]
Assets
Other assets	$ 1,200	$ 12,561

XML

Fair Values - Reconciliation of Beginning and Ending Balances of Assets Measured at Fair Value on Recurring Basis Using Level 3 Inputs (Detail) - Level 3 [Member] - Recurring [Member] - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning	$ 12,561	$ 47,507
Proceeds from investment realizations	(2,406)	(57,039)
Transfers out of level 3	(20,745)
Adjustments to fair value included in earnings
Gain on investments at fair value	11,790	22,228
Balance, ending	$ 1,200	$ 12,696

XML

Fair Values - Additional Information (Detail) $ in Millions	3 Months Ended
	Jun. 30, 2016 USD ($)
Recurring [Member] | Level 1 [Member] | Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Transfer out of level 3	$ 20.7

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Fair Values - Schedule of Details of Carrying Amount, Face Amount, and Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financial liabilities
Loan participations sold	$ 409,654	$ 497,032
Carrying Amount [Member]
Financial assets
Cash and cash equivalents	94,061	96,450
Restricted cash	877	9,556
Loans receivable, net	8,347,712	9,077,007
Financial liabilities
Secured debt agreements	5,320,358	6,116,105
Loan participations sold	409,654	497,032
Convertible notes, net	166,064	164,026
Face Amount [Member]
Financial assets
Cash and cash equivalents	94,061	96,450
Restricted cash	877	9,556
Loans receivable, net	8,381,679	9,108,361
Financial liabilities
Secured debt agreements	5,335,908	6,131,751
Loan participations sold	411,427	498,992
Convertible notes, net	172,500	172,500
Fair Value [Member]
Financial assets
Cash and cash equivalents	94,061	96,450
Restricted cash	877	9,556
Loans receivable, net	8,392,677	9,121,732
Financial liabilities
Secured debt agreements	5,335,908	6,131,751
Loan participations sold	411,427	498,992
Convertible notes, net	$ 190,181	$ 171,344

XML

Transactions with Related Parties - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Common stock value	$ 939,000		$ 939,000		$ 937,000
CT Legacy Partners [Member]
Related Party Transaction [Line Items]
Total incentive compensation payments	354,000	$ 89,000	$ 1,112,000	$ 2,151,000
Restricted Class A Common Stock [Member]
Related Party Transaction [Line Items]
Restricted shares, vesting period			3 years
Manager [Member]
Related Party Transaction [Line Items]
Management Agreement expiration date			Dec. 19, 2016
Management Agreement renewal term, description			The current term of which expires on December 19, 2016, and will be automatically renewed for a one-year term each anniversary thereafter unless earlier terminated.
Management Agreement renewal term, period			1 year
Accrued management and incentive fees payable	13,700,000		$ 13,700,000		14,400,000
Management fees paid to Manager	15,800,000	8,100,000	43,800,000	21,000,000
Expenses reimbursed to Manager	82,000	0	462,000	139,000
Insurance agency fee from loan borrower	196,000
Expenses incurred on insurance agency transaction of affiliate with loan borrower	0
Income received on insurance agency transaction of affiliate with loan borrower	0
Total incentive compensation payments	$ 4,200,000	4,500,000	14,800,000	5,700,000
Manager [Member] | CT Legacy Partners [Member]
Related Party Transaction [Line Items]
Net sale proceeds			40,100,000
Net sales proceeds, amount received			2,400,000
Manager [Member] | Incentive Awards Plan [Member] | CT Legacy Partners [Member]
Related Party Transaction [Line Items]
Total incentive compensation payments					2,700,000
Incentive compensation amount paid			$ 162,000		2,500,000
Manager [Member] | Class A Common Stock [Member] | Restricted Class A Common Stock [Member]
Related Party Transaction [Line Items]
Issuance of restricted class A common stock			0
Shares held	391,871		391,871
Common stock value	$ 10,900,000		$ 10,900,000
Non-cash expense	2,500,000	1,600,000	$ 7,100,000	4,900,000
Manager [Member] | Class A Common Stock [Member] | Restricted Class A Common Stock [Member] | Stock Incentive Current Plan [Member]
Related Party Transaction [Line Items]
Restricted shares, vesting period			3 years
Affiliates of Manager [Member] | Third-Party Service Provider [Member]
Related Party Transaction [Line Items]
Administrative services expenses incurred	112,000	178,000	$ 282,000	307,000
BXMT Advisors Limited Liability Company and Affiliates [Member]
Related Party Transaction [Line Items]
Preferred distributions payable to affiliate of our Manager	31,000		31,000		$ 83,000
Payments of preferred distributions to affiliate of our Manager	$ 146,000	$ 216,000	$ 491,000	$ 1,100,000

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Commitments and Contingencies - Additional Information (Detail)		9 Months Ended
	Sep. 30, 2016 USD ($) Loans Directors	Sep. 30, 2016 USD ($) Loans Installments	Dec. 31, 2015 USD ($)
Commitments And Contingencies [Line Items]
Commitments expiration period		3 years
Number of loans receivable | Loans	58	58
Percentage of compensation paid in cash	40.00%
Percentage of compensation in the form of deferred stock units	60.00%
Number of board of directors | Directors	8
Number of independent directors entitled to annual compensation | Directors	5
Number of equal quarterly installments | Installments		4
CT Investment Management Co LLC [Member] | New York State Division of Taxation and Finance [Member]
Commitments And Contingencies [Line Items]
Income tax examinations, reserves	$ 0	$ 0
Loans Receivable [Member]
Commitments And Contingencies [Line Items]
Unfunded loan commitments	929,030,000	$ 929,030,000	$ 700,658,000
Five Independent Board of Directors [Member]
Commitments And Contingencies [Line Items]
Annual cash compensation	125,000
Three Board of Directors [Member]
Commitments And Contingencies [Line Items]
Annual cash compensation	125,000
Chairperson of Audit Committee [Member]
Commitments And Contingencies [Line Items]
Annual cash compensation	$ 12,000