8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 25, 2017

Blackstone Mortgage Trust, Inc.

(Exact name of registrant as specified in its charter)

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

345 Park Avenue, 42nd Floor

New York, New York 10154

(Address of Principal Executive Offices) (Zip Code)

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

Not Applicable

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

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

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

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

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

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

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

    Emerging growth company        ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Item 2.02 Results of Operations and Financial Condition.

On April 25, 2017, Blackstone Mortgage Trust, Inc. (the “Company”) issued a press release and detailed presentation announcing its financial results for the first quarter ended March 31, 2017. The press release and full detailed presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K report and are incorporated herein by reference.

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

Item 9.01 Financial Statements and Exhibits.

(d)     Exhibits

Exhibit   No.	Description
99.1	Press Release of Blackstone Mortgage Trust, Inc. dated April 25, 2017.
99.2	Presentation of Blackstone Mortgage Trust, Inc. dated April 25, 2017.

SIGNATURE

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

	BLACKSTONE MORTGAGE TRUST, INC.
Date:  April 25, 2017
	By:	/s/ Anthony F. Marone, Jr.
	Name:	Anthony F. Marone, Jr.
	Title:	Chief Financial Officer

EX-99.1

Exhibit 99.1

Blackstone Mortgage Trust Reports

First Quarter 2017 Results

New York, April 25, 2017: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its first quarter 2017 results.

Stephen D. Plavin, Chief Executive Officer, said, “With $1 billion of originations in the quarter and a very strong forward pipeline, BXMT is off to a great start in 2017. Our portfolio of senior loans is 91% floating rate and remains 100% performing with an average LTV of 61%.”

Blackstone Mortgage Trust issued a full detailed presentation of its first quarter 2017 results, which can be viewed at www.bxmt.com.

Quarterly Investor Call Details

Blackstone Mortgage Trust will host a conference call on Wednesday, April 26, 2017 at 10:00 a.m. EDT to discuss first quarter 2017 results. The conference call can be accessed by dialing +1 (888) 268-4178 (U.S. domestic) or +1 (617) 597-5494 (international), with the passcode 245-054-61# or by webcast at www.bxmt.com (listen only). For those unable to listen to the live broadcast, a recorded replay will be available on the company’s website or by telephone beginning approximately two hours after the event. The replay call number is +1 (888) 286-8010 (U.S. domestic) or +1 (617) 801-6888 (international), with the passcode 838-112-72#.

About Blackstone Mortgage Trust

Blackstone Mortgage Trust (NYSE:BXMT) is a real estate finance company that originates senior loans collateralized by commercial real estate in North America and Europe. Our investment objective is to preserve and protect shareholder capital while producing attractive risk-adjusted returns primarily through dividends generated from current income from our loan portfolio. We are externally managed by BXMT Advisors L.L.C., a subsidiary of Blackstone. Further information is available at www.bxmt.com.

About Blackstone

Blackstone (NYSE:BX) is one of the world’s leading investment firms. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies it invests in, and the communities in which it works. Blackstone does this by using extraordinary people and flexible capital to help companies solve problems. Blackstone’s asset management businesses, with over $360 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

Blackstone Mortgage Trust, Inc.

345 Park Avenue

New York, New York 10154

T 212 655 0220

Forward-Looking Statements and Other Matters

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect Blackstone Mortgage Trust’s current views with respect to, among other things, Blackstone Mortgage Trust’s operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Blackstone Mortgage Trust believes these factors include but are not limited to those described under the section entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as such factors may be updated from time to time in its periodic filings with the Securities and Exchange Commission (“SEC”) which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the filings. Blackstone Mortgage Trust assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances.

Investor and Media Relations Contacts

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

EX-99.2

Blackstone Mortgage Trust, Inc.

April 25, 2017

First Quarter 2017 Results

Exhibit 99.2

Blackstone Mortgage Trust

1

GAAP

earnings

of

$0.54

per

share

and

Core

Earnings

(a)

of $0.61 per share. Book value of $26.28 per

share.

$0.62

per

share

dividend

equates

to

an

8.0%

dividend

yield.

(b)

1Q

loan

originations

totaled

$1.0

billion

and

were

100%

floating

rate,

senior

loans

with

a

weighted

average LTV

(c)

of 60%. Cumulative direct originations since inception of $14.3 billion.

100% performing $9.7 billion

(d)

portfolio of senior loans with a weighted average LTV

(c)

of 61%

91% of portfolio is floating rate; a 1.0% increase in USD LIBOR would result in a $0.19 increase in

net interest income per share per annum

Closed

$1.1

billion

of

credit

facility

upsizes

and

$2.8

billion

of

credit

facility

extensions,

bringing

total asset-level financing capacity to $10.1 billion

Subsequent to quarter end, closed $125 million upsize of ‘swing-line’ corporate liquidity facility

increasing the total commitment to $250 million and reducing its rate by 0.50% to L+2.25%

Total liquidity of $670 million;

(e)

maximum

origination capacity of $2.6 billion

(f)

Subsequent to quarter end, entered into a joint venture with Walker & Dunlop to originate,

finance, and hold multifamily bridge loans

First Quarter 2017 Highlights

Information included in this presentation is as of or for the period ended March 31, 2017, unless otherwise indicated

(a)

See Appendix for a definition and reconciliation to GAAP net income

(b)

Based on annualized dividend and BXMT closing price as of March 31, 2017

(c)

Based on LTV as of the dates loans were originated or acquired by BXMT

(d)

Includes $1.0 billion of Non-Consolidated Senior Interests, see Appendix for definition

(e)

Total liquidity includes $64 million of cash, $563 million of available borrowings, and $43 million of net receivables related to loan repayments

(f)

Potential loan originations assumes 4.0x asset-level leverage on total liquidity, net of $153 million of minimum liquidity requirements under applicable debt covenants

Blackstone Mortgage Trust

2

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

BXMT

direct

loan

originations

since

inception

have

driven

the

outstanding

BXMT

originated

portfolio

to

$8.2

billion

(a)

and

helped

maintain

overall

portfolio

size

at

the

$10

billion

level

achieved

with

the

GE

portfolio

acquisition

in

2Q

2015

BXMT

capital

invested

in

the

loan

portfolio

is

prudently

levered

to

generate

attractive

risk

adjusted

returns

GE loans

BXMT Senior Lending Business

(a)

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 in our Form 10-Q 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 March 31, 2017 and for each respective quarter.

(b)

Represents (i) total outstanding secured debt agreements and convertible notes, less cash, to (ii) total stockholder’s equity

Portfolio Composition

(a)

2.5x

2.2x

1.0x

1.8x

1.7x

1.5x

Debt to

Equity

1.4x

1.7x

1.9x

2.9x

2.7x

2.5x

2.6x

(b)

2.4x

$10.0 bn

portfolio size

BXMT

originated

loans

2.3x

$8.2 bn

$1.6 bn

Blackstone Mortgage Trust

Loan Originations

$1.0

billion

of

total

originations

in

the

quarter,

up

21%

quarter

over

quarter,

with

an

all-in

yield

of

L+5.25%;

all

six

loans

were

with

sponsors

who

are

repeat

BXMT

borrowers

Two

construction

loans,

totaling

$348

million

with

a

weighted

average

LTV

(a)

of

46%

and

all-in

yield

of

L+6.01%,

are

indicative

of

the

attractive

risk-adjusted

opportunities

with

diminished

bank

competition

in

construction

lending

Future

funding

commitments

at

quarter

end

totaled

$1.2

billion

and

will

contribute

to

outstandings

in

future

periods

100% senior loans

$1.0 billion total commitments

100% floating rate

Weighted

Average

LTV

(a)

of 60%

1Q 2017 Originations

(a)

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

(b)

Includes $1.0 billion of Non-Consolidated Senior Interests, see Appendix for definition

Large loans: $161 million avg. size

($ in millions)

$9,733

$1,223

Total Loan Commitments

(b)

1Q’17  Outstanding Loans

Future Funding

Commitments

3

Blackstone Mortgage Trust

4

$0.27

$0.45

$0.48

$0.48

$0.50

$0.52

$0.52

$0.52

$0.62

$0.62

$0.62

$0.62

$0.62

$0.62

$0.62

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

$0.67

$0.71

Earnings & Dividends

1Q

GAAP

earnings

of

$0.54

per

share

($51

million)

and

Core

Earnings

(a)

of

$0.61

per

share

($58

million)

generated

entirely

by

portfolio

lending

business

Core

Earnings

converging

with

dividend

as

volatility

related

to

GE

portfolio

acquisition

and

repayments

subsides

Late

in

quarter

originations

and

construction

loan

unfunded

commitments

will

produce

additional

earnings

impact

in

subsequent

quarters

Quarterly Dividends

$0.28

$0.41

$0.43

$0.43

Core

EPS

$0.49

$0.50

$0.52

$0.38

$0.72

$0.68

$0.65

(a)

$0.61

TTM -

105% coverage

$0.62

(b)

(a)

In 3Q 2015, BXMT revised the basis of reporting for Core Earnings to be net of incentive fees. Core EPS numbers indicated in the chart for 3Q 2014, 4Q 2014 and 1Q

2015 are adjusted from the previously reported $0.50, $0.52 and $0.54, respectively, so as to be comparable to Core EPS numbers in 3Q 2015 and subsequently. See

Appendix for a definition and reconciliation to GAAP net income.

(b)

Includes $0.11 of transaction expenses related to the GE acquisition

Blackstone Mortgage Trust

5

50%

22%

10%

5%

3%

2%

8%

Condo

Portfolio

Composition

$9.7

billion

portfolio

comprising

103

senior

loans

secured

by

institutional

quality

real

estate

concentrated

in

major

markets:

loans

secured

by

assets

located

in

New

York,

California

and

London/UK

comprise

54%

of

the

portfolio

Office

Multifamily

Hotel

MHC

Other

Retail

Geographic Diversification

(a)

Collateral Diversification

(a)

Weighted Average LTV

(b)

61%

States that comprise less than 1% of total loan portfolio

CAN

5%

CA

17%

WA

2%

HI

5%

DC

2%

TX

2%

VA

2%

GA

3%

IL

7%

FL

10%

UK

14%

OR

1%

AZ

1%

CO

1%

MD

1%

NC

1%

NL

1%

MA

1%

DEU

1%

NY

23%

(a)

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 in our Form 10-Q 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 March 31, 2017.

(b)

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

Blackstone Mortgage Trust

6

Balance Sheet

Total

asset-level

financing

capacity

of

$10.1

billion

was

70%

utilized

at

quarter

end

$1.1

billion

of

credit

facility

upsizes

(a)

and

$2.8

billion

of

credit

facility

maturity

extensions

during

the

quarter

Liquidity

of

$670

million:

$64

million

cash,

$454

million

credit

facility

availability,

$109

million

swing-line

revolver

availability

and

$43

million

net

receivables

related

to

loan

repayments

Asset-Level Financing Capacity

($ in billions)

Outstanding Leverage

2.4x

Debt-to-Equity

Ratio

(c)

2.9x

Total

Leverage

Ratio

(d)

Credit

Facilities

All-in cost of L+2.11%

Asset-Specific

Financings

All-in cost of L+2.06%

Corporate

Debt

Convertible

Notes: 5.87%

Secured

Facility:

L+2.75%

Total Debt

Senior Loan

Interests

(b)

Pricing directly related to

underlying collateral assets

Total Leverage

$4.0

$1.8

$0.2

$1.3

$6.0

$7.3

(a)

Include €250 million with Citi, £250 million with Morgan Stanley, and $307 million asset-specific financing conversion to $500 million credit facility with Deutsche Bank

(b)

In addition to $356 million of loan participations sold, includes $1.0 billion of Non-Consolidated Senior Interests, which result from non-recourse sales of

senior loan interests in loans BXMT originates. BXMT’s net investments in these loans are reflected in the form of mezzanine or other subordinate loans

on BXMT’s balance sheet.

(c)

Represents (i) total outstanding secured debt agreements, convertible notes, less cash, to (ii) total stockholders’ equity

(d)

Represents (i) total outstanding secured debt agreements, convertible notes, loan participations sold, and Non-Consolidated Senior Interests, less cash,

to (ii) total stockholders’ equity

$6.6

$2.1

$1.4

Credit

Facilities

8 providers

Senior Loan

Interests

8 providers

Asset-Specific

Financings

4

providers

$10.1 bn

1Q’17 Capacity

Blackstone Mortgage Trust

7

9%

91%

21%

79%

Interest Rates

Core

Earnings

are

positively

correlated

to

changes

in

USD

and

GBP

LIBOR,

the

benchmark

indices

for

87%

of

BXMT’s

loans

A

1.0%

increase

in

USD

LIBOR

would

increase

net

interest

income

per

share

by

$0.19

per

annum

(a)

(a)

Core Earnings are inversely correlated to EURIBOR and CDOR such that an increase of 50bps in either would decrease net interest income per share  

by less than $0.01 per year

(b)

As of June 30, 2015

(c)

As of June 30, 2015, $148 million of floating rate loans earned interest based on floors that were above the applicable index, with an average floor of

1.80%, based on total loan exposure

(d)

As of March 31, 2017, $218 million of floating rate loans earned interest based on floors that were above the applicable index, with an average floor of

1.22%, based on total loan exposure

Portfolio Income Sensitivity to USD LIBOR

(Annual Dollars of Net Interest Income Per Share)

USD LIBOR

Portfolio Fixed vs. Floating

(% of Total Loan Exposure)

Floating

(c)

Fixed

Floating

(d)

Fixed

At GE Acquisition

(b)

1Q 2017

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

0.98%

1.48%

1.98%

2.48%

2.98%

3.48%

Appendix

Blackstone Mortgage Trust

9

4Q'16 Loans

Outstanding

Fundings

Repayments

1Q'17 Loans

Outstanding

Appendix –

First Quarter 2017 Operating Results & Net Funding

$56 million

(b)

Net Repayments

Net Funding

($ in Billions)

Operating Results

($ in Millions)

$9.8

$0.7

$(0.8)

$9.7

(a)

Includes $1.0 billion of Non-Consolidated Senior Interests, see Appendix for definition

(b)

Excludes the impact of changes in foreign currency rates and hedges for non-USD loans and financings

$0.61

Core Earnings Per Share

$0.54

Net Income Per Share

GAAP Net

Income

Adjustments

Core

Earnings

Interest Income

118.5

$    

(0.2)

$      

118.3

$    

Interest Expense

(46.7)

0.4

(46.3)

Management and

Incentive Fees

(12.9)

—

(12.9)

G&A / Other

(1.6)

0.6

(1.0)

Non-Cash

Compensation

(5.9)

5.9

—

Total

51.4

$    

6.7

$      

58.1

$   

(a)

(a)

Blackstone Mortgage Trust

10

Loan Portfolio Details

(a)

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

(b)

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

As of March

31, 2017, three loans in the portfolio have been financed with an aggregate $1.0 billion of Non-Consolidated Senior Interests, which are included in the table above.

(c)

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

(d)

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

($ in Millions)

Loan Type

Origination

Date

(a)

Total

Loan

(b)

Principal

Balance

(b)

Net Book

Value

Cash

Coupon

All-In

Yield

Maximum

Maturity

(c)

Location

Property

Type

Loan Per

SQFT / Unit / Key

Origination

LTV

(a)

Loan 1

Senior loan

(b)

5/15/2015

590

$

505

$

85

$  

L + 4.25%

L + 4.76%

5/15/2020

Miami

Retail

673 / sqft

36%

Loan 2

Senior loan

(b)

8/6/2015

463

463

83

4.48%

5.81%

10/29/2022

Diversified -

EUR

Other

n/a

71%

Loan 3

Senior Loan

5/22/2014

427

427

424

L + 4.20%

L + 4.48%

12/31/2019

Diversified -

UK

Hotel

115,951 /  key

59%

Loan 4

Senior Loan

5/1/2015

320

295

293

L + 3.45%

L + 3.83%

5/1/2020

New York

Office

376 / sqft

68%

Loan 5

Senior Loan

1/7/2015

315

287

286

L + 3.50%

L + 3.88%

1/9/2020

New York

Office

246 / sqft

53%

Loan 6

Senior Loan

6/4/2015

260

260

263

L + 4.34%

L + 4.20%

8/12/2020

Diversified -

CAN

Hotel

40,153 /  key

54%

Loan 7

Senior Loan

3/31/2017

258

242

239

L + 4.15%

L + 4.54%

4/9/2022

Maui

Hotel

318,182 /  key

75%

Loan 8

Senior loan

(b)

6/30/2015

223

220

43

L + 4.75%

L + 5.18%

7/9/2020

San Francisco

Condo

877 / sqft

66%

Loan 9

Senior Loan

6/23/2015

224

214

213

L + 3.65%

L + 4.00%

10/1/2020

Washington DC

Office

239 / sqft

72%

Loan 10

Senior Loan

7/31/2014

215

198

198

L + 3.50%

L + 3.56%

8/9/2019

Chicago

Office

262 / sqft

64%

Loan 11

Senior Loan

8/19/2016

200

188

187

L + 3.64%

L + 4.10%

9/9/2021

New York

Office

572 / sqft

69%

Loan 12

Senior Loan

8/3/2016

276

186

183

L + 4.66%

L + 5.19%

8/9/2021

New York

Office

255 / sqft

57%

Loan 13

Senior Loan

4/15/2016

200

183

182

L + 4.25%

L + 4.86%

5/9/2021

New York

Office

172 / sqft

40%

Loan 14

Senior Loan

2/25/2014

181

181

180

L + 4.75%

L + 5.07%

3/9/2019

Diversified -

US

Hotel

95,113 /  key

58%

Loan 15

Senior Loan

12/22/2016

205

171

169

L + 3.50%

L + 4.07%

1/9/2022

New York

Office

241 / sqft

66%

Loan 16-103

Various

6,600

5,713

5,694

5.03%

5.48%

(d)

Various

Various

Various

Various

62%

Total/Wtd. Avg.

10,957

$

9,733

$  

8,722

$  

4.97%

5.43%

3.4 years

61%

Senior Loans

Blackstone Mortgage Trust

11

Consolidated Balance Sheets

($ in Thousands, Except Per Share Data)

March 31, 2017

December 31, 2016

Assets

Cash and cash equivalents

64,275

$                     

75,567

$                      

Loans receivable, net

8,721,768

8,692,978

Other assets

168,616

44,070

Total assets

8,954,659

$               

8,812,615

$               

Liabilities and equity

Secured debt agreements, net

5,760,191

$               

5,716,354

$               

Loan participations sold, net

354,131

348,077

Convertible notes, net

167,475

166,762

Other liabilities

176,880

87,819

Total liabilities

6,458,677

6,319,012

Commitments and contingencies

—

—

Equity

Class A common stock, $0.01 par value

948

945

Additional paid-in capital

3,096,006

3,089,997

Accumulated other comprehensive loss

(52,357)

(56,202)

Accumulated deficit

(548,615)

(541,137)

Total Blackstone Mortgage Trust, Inc. stockholders’ equity

2,495,982

2,493,603

Total liabilities and equity

8,954,659

$               

8,812,615

$               

Blackstone Mortgage Trust

12

Consolidated Statements of Operations

($ in Thousands, Except per Share Data)

Three Months Ended March 31,

2017

2016

Income from loans and other investments

Interest and related income

118,517

$           

123,025

$           

Less: Interest and related expenses

46,674

45,381

Income from loans and other investments, net

71,843

77,644

Other expenses

Management and incentive fees

12,921

13,613

General and administrative expenses

7,428

6,795

Total other expenses

20,349

20,408

Gain on investments at fair value

—

66

Income from equity investment in unconsolidated subsidiary

—

138

Income before income taxes

51,494

57,440

Income tax provision

89

241

Net income

51,405

$             

57,199

$             

Net income attributable to non-controlling interests

—

(152)

Net income attributable to Blackstone Mortgage Trust, Inc.

51,405

$             

57,047

$             

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

94,993,386

94,067,769

Net income per share of common stock

0.54

$                 

0.61

$                 

Blackstone Mortgage Trust

13

Per Share Calculations

(Amounts in Thousands, Except per Share Data)

(a)

Represents net income attributable to Blackstone Mortgage Trust

(b)

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

pending the repayment of those loans

Core Earnings

Reconciliation

Book Value

per Share

Earnings

per Share

Three Months Ended

March 31, 2017

December 31, 2016

Net income

(a)

51,405

$                    

53,375

$                      

Weighted-average shares outstanding, basic and diluted

94,993

94,456

Earnings per share, basic and diluted

0.54

$                         

0.57

$                            

Three Months Ended

March 31, 2017

December 31, 2016

Net income

(a)

51,405

$                   

53,375

$                     

CT Legacy Portfolio net income

-

(502)

Non-cash compensation expense

5,907

4,955

GE purchase discount accretion adjustment

(b)

(216)

(320)

Other items

1,024

742

Core Earnings

58,120

$                   

58,250

$                     

Weighted-average shares outstanding, basic and diluted

94,993

94,456

Core Earnings per share, basic and diluted

0.61

$                       

0.62

$                           

March 31, 2017

December 31, 2016

Stockholders’ equity

2,495,982

$             

2,493,603

$                

Shares

Class A common stock

94,818

94,540

Deferred stock units

176

169

Total outstanding

94,994

94,709

Book value per share

26.28

$                     

26.33

$                         

Blackstone Mortgage Trust

14

Reconciliation of Net Income to Core Earnings

(a)

(Amounts in Thousands, Except per Share Data)

Three Months Ended

Sep 30,

2013

Dec 31,

2013

Mar 31,

2014

Jun 30,

2014

Sep 30,

2014

Dec 31,

2014

Mar 31,

2015

Jun 30,

2015

Sep 30,

2015

Dec 31,

2015

Mar 31,

2016

Jun 30,

2016

Sep 30,

2016

Dec 31,

2016

Mar 31,

2017

Net income

8,320

$   

7,079

$   

13,065

$

33,466

$

22,024

$

21,490

$

35,393

$

29,284

$

66,888

$

65,264

$

57,047

$

63,081

$

64,794

$

53,375

$

51,405

$

CT Legacy Portfolio net (income) loss

(437)

3,670

970

(15,508)

(134)

4,833

(8,400)

(1,857)

(401)

(3,408)

183

(3,825)

(1,805)

(502)

-

Non-cash compensation expense

94

1,158

1,834

2,382

1,619

2,528

3,297

3,396

3,188

3,460

4,687

4,836

4,949

4,955

5,907

GE purchase discount accretion adjustment

-

-

-

-

-

-

-

(459)

(2,008)

(1,542)

(1,166)

(1,247)

(929)

(320)

(216)

Other items

-

107

423

162

404

408

342

416

(119)

310

418

278

(65)

742

1,024

Core Earnings

7,977

$   

12,014

$

16,292

$

20,502

$

23,913

$

29,259

$

30,632

$

30,780

$

67,548

$

64,084

$

61,169

$

63,123

$

66,944

$

58,250

$

58,120

$

Weighted-average shares outstanding, basic and diluted

28,895

29,364

37,967

47,978

49,211

58,190

58,576

80,941

93,358

93,574

94,068

94,064

94,072

94,456

94,993

Net income per share, basic and diluted

0.29

$     

0.24

$     

0.34

$     

0.70

$     

0.45

$     

0.37

$     

0.60

$     

0.36

$     

0.72

$     

0.70

$     

0.61

$     

0.67

$     

0.69

$     

0.57

$     

0.54

$     

Core Earnings

per share, basic and diluted

0.28

$     

0.41

$     

0.43

$     

0.43

$     

0.49

$     

0.50

$     

0.52

$     

0.38

$     

0.72

$     

0.68

$     

0.65

$     

0.67

$     

0.71

$     

0.62

$     

0.61

$     

(a)

In 3Q 2015, BXMT revised the basis of reporting for Core Earnings to be net of incentive fees. Core EPS numbers indicated in the chart for 3Q 2014, 4Q 2014 and 1Q

2015 are adjusted from the previously reported $0.50, $0.52 and $0.54, respectively, so as to be comparable to Core EPS numbers in 3Q 2015 and subsequently.

(b)

Represents net income attributable to Blackstone Mortgage Trust

(c)

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

loans pending the repayment of those loans

(b)

(c)

Blackstone Mortgage Trust

15

Definitions

Core

Earnings:

Blackstone

Mortgage

Trust,

Inc.

(“BXMT”)

discloses

Core

Earnings,

a

financial

measure

that

is

calculated

and

presented

on

the

basis

of

methodologies

other

than

in

accordance

with

generally

accepted

accounting

principles

in

the

United

States

of

America

(“GAAP”)

in

this

presentation.

Core

Earnings

is

an

adjusted

measure

that

helps

BXMT

evaluate

its

performance

excluding

the

effects

of

certain

transactions

and

GAAP

adjustments

that

it

believes

are

not

necessarily

indicative

of

its

current

loan

origination

portfolio

and

operations.

Although

according

to

its

management

agreement

BXMT

calculates

the

incentive

and

base

management

fees

due

to

its

Manager

using

Core

Earnings

before

incentive

fees

expense,

beginning

with

the

third

quarter

of

2015,

BXMT

reports

Core

Earnings

after

incentive

fees

expense,

as

BXMT

believes

this

is

a

more

meaningful

presentation

of

the

economic

performance

of

its

class

A

common

stock.

Core

Earnings

is

defined

as

GAAP

net

income

(loss),

including

realized

gains

and

losses

not

otherwise

included

in

GAAP

net

income

(loss),

and

excluding

(i)

net

income

(loss)

attributable

to

the

CT

Legacy

Portfolio,

(ii)

non-cash

equity

compensation

expense,

(iii)

depreciation

and

amortization,

(iv)

unrealized

gains

(losses),

and

(v)

certain

non-cash

items.

Core

Earnings

may

also

be

adjusted

from

time

to

time

to

exclude

one-time

events

pursuant

to

changes

in

GAAP

and

certain

other

non-cash

charges

as

determined

by

BXMT’s

manager,

subject

to

approval

by

a

majority

of

its

independent

directors.

Core

Earnings

does

not

represent

net

income

or

cash

generated

from

operating

activities

and

should

not

be

considered

as

an

alternative

to

GAAP

net

income,

or

an

indication

of

BXMT’s

GAAP

cash

flows

from

operations,

a

measure

of

BXMT’s

liquidity,

or

an

indication

of

funds

available

for

its

cash

needs.

In

addition,

BXMT’s

methodology

for

calculating

Core

Earnings

may

differ

from

the

methodologies

employed

by

other

companies

to

calculate

the

same

or

similar

supplemental

performance

measures,

and

accordingly,

its

reported

Core

Earnings

may

not

be

comparable

to

the

Core

Earnings

reported

by

other

companies.

Non-Consolidated

Senior

Interests:

Senior

interests

in

loans

originated

and

syndicated

to

third

parties.

These

non-recourse

loan

participations

constitute

additional

financing

capacity

and

are

included

in

discussions

of

the

loan

portfolio.

Blackstone Mortgage Trust

16

Forward-Looking Statements

This

presentation

may

contain

forward-looking

statements

within

the

meaning

of

Section

27A

of

the

Securities

Act

of

1933,

as

amended,

and

Section

21E

of

the

Securities

Exchange

Act

of

1934,

as

amended,

which

reflect

BXMT’s

current

views

with

respect

to,

among

other

things,

BXMT’s

operations

and

financial

performance.

You

can

identify

these

forward-looking

statements

by

the

use

of

words

such

as

“outlook,”

“indicator,”

“believes,”

“expects,”

“potential,”

“continues,”

“may,”

“will,”

“should,”

“seeks,”

“predicts,”

“intends,”

“plans,”

“estimates,”

“anticipates”

or

the

negative

version

of

these

words

or

other

comparable

words.

Such

forward-

looking

statements

are

subject

to

various

risks

and

uncertainties.

Accordingly,

there

are

or

will

be

important

factors

that

could

cause

actual

outcomes

or

results

to

differ

materially

from

those

indicated

in

these

statements.

BXMT

believes

these

factors

include

but

are

not

limited

to

those

described

under

the

section

entitled

“Risk

Factors”

in

its

Annual

Report

on

Form

10-K

for

the

fiscal

year

ended

December

31,

2016,

as

such

factors

may

be

updated

from

time

to

time

in

its

periodic

filings

with

the

Securities

and

Exchange

Commission

(“SEC”)

which

are

accessible

on

the

SEC’s

website

at

www.sec.gov.

These

factors

should

not

be

construed

as

exhaustive

and

should

be

read

in

conjunction

with

the

other

cautionary

statements

that

are

included

in

this

presentation

and

in

the

filings.

BXMT

assumes

no

obligation

to

update

or

supplement

forward-looking

statements

that

become

untrue

because

of

subsequent

events

or

circumstances.