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): February 13, 2018

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 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 February 13, 2018, Blackstone Mortgage Trust, Inc. (the “Company”) issued a press release and detailed presentation announcing its financial results for the full year and fourth quarter ended December 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 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 liabilities 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 such filing.

Item 9.01 Financial Statements and Exhibits.

(d)       Exhibits

Exhibit No.	Description
99.1	Press Release of Blackstone Mortgage Trust, Inc. dated February 13, 2018.
99.2	Presentation of Blackstone Mortgage Trust, Inc. dated February 13, 2018.

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: February 13, 2018
	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

Fourth Quarter and Full Year 2017 Results

New York, February 13, 2018: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its fourth quarter and full year 2017 results. Net income for the fourth quarter was $58 million, or $0.59 per share, and for the full year was $218 million, or $2.27 per share.

Stephen D. Plavin, Chief Executive Officer, said, “We closed $1.2 billion of new loans in the quarter capping off a very strong year with $4.8 billion of total origination, 37% higher than 2016. At the same time, we grew and diversified the right hand side of the balance sheet with $4.2 billion of new capital, including convertible debt, common equity and our first securitizations – all raised on very attractive terms.”

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

Quarterly Investor Call Details

Blackstone Mortgage Trust will host a conference call on Wednesday, February 14, 2018 at 10:00 a.m. ET to discuss fourth quarter and full year 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 208-862-64#.

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 $430 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, 2017, 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.

February 13, 2018

Fourth Quarter and Full Year 2017 Results

Exhibit 99.2

Blackstone Mortgage Trust

1

BXMT Highlights

8.2%

dividend

yield

(b)

Blackstone Real

Estate platform

provides expert

management

100% performing

loan portfolio

generates current

cash income

Portfolio positioned for

yield and value

protection in changing

rate environment

$0.62

4Q dividend

61%

Loan-to-Value

(c)

$11.1B

senior loan portfolio

94%

floating rate

+$0.29

net interest income per 1%

increase in LIBOR

(d)

$115B

BX Real Estate investor

capital under management

$4.8B

2017 originations

Expertise

Income

Stability

Protection

BXMT

originated $1.2 billion of senior commercial real estate loans and grew its portfolio

to

$11.1

billion

in

4Q,

generating

$0.59

of

GAAP

EPS

and

$0.65

of

Core

EPS

(a)

Stable assets

financed with long-

term, match-funded

liabilities

Information included in this presentation is as of or for the period ended December 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 February 12, 2018

(c)

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

(d)

Changes in interest rates and credit spreads may affect our net interest income from loans and other investments. See Appendix for important disclosures.

Blackstone Mortgage Trust

2

4Q

originations

of

$1.2

billion;

2017

volume

of

$4.8

billion

up

37%

from

prior

year

44%

of

loans

originated

in

4Q

were

secured

by

multifamily

assets

Fourth Quarter and Full Year 2017 Results

94%

of

the

portfolio

is

floating

rate,

up

5%

from

2016

1.0%

increase

in

LIBOR

would

increase

annual

net

interest

income

by

$0.29

per

share

(e)

Earnings &

Dividends

Loan

Originations

Portfolio

Composition

Financing

Interest Rates

4Q

EPS

of

$0.59

and

Core

Earnings

(a)

of

$0.65

per

share

($2.27

and

$2.55,

respectively

for

full

year

2017)

Book

value

per

share

of

$26.93,

up

$0.41

as

a

result

of

share

issuance

at

$31.90

or

1.20x

P/B

Portfolio

grew

14%

from

prior

year,

ending

with

an

$11.1

billion

outstanding

balance

(b)

Weighted

average

origination

LTV

(c)

of

61%

$1.0

billion

CLO

issuance

represents

non-recourse,

term-matched

financing

with

an

82%

advance

rate

and

a

weighted

average

coupon

of

L+1.21%

Debt-to-Equity

ratio

(d)

of

2.0x,

down

0.6x

quarter

over

quarter

(a)

See Appendix for a definition and reconciliation to GAAP net income

(b)

Includes $985 million of Non-Consolidated Senior Interests; see Appendix for definition

(c)

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

(d)

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

(e)

Changes in interest rates and credit spreads may affect our net interest income from loans and other investments. See Appendix for important disclosures.

Blackstone Mortgage Trust

3

2017 Dividend Coverage

(c)

4Q

GAAP

earnings

of

$0.59

per

share

($58

million)

and

Core

Earnings

(a)

of

$0.65

per

share

($65

million)

2017

GAAP

earnings

of

$2.27

per

share

($218

million)

and

Core

Earnings

(a)

of

$2.55

per

share

($245

million)

$0.62

per

share

dividend

equates

to

an

8.2%

dividend

yield

(b)

(a)

See Appendix for a definition and reconciliation to GAAP net income

(b)

Based on annualized dividend and BXMT closing price as of February 12, 2018

(c)

GAAP EPS of $0.54, $0.53, $0.61 and $0.59 as of 1Q’17, 2Q’17, 3Q’17 and 4Q’17, respectively

Book Value Per Share Growth

$0.62

Quarterly Dividend

103%

Dividend Coverage

9.2%

Accretion

$0.61

$0.60

$0.69

$0.65

1Q'17

2Q'17

3Q'17

4Q'17

$24.67

$26.93

Re-IPO

2Q'13

4Q'17

Core Earnings Per Share

Dividends Per Share

Earnings & Dividends

Blackstone Mortgage Trust

4

100% floating rate, senior loans

Weighted

average

LTV

(a)

of

62%

22% multifamily; 0% retail

(a)

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

(b)

Excludes loans originated in the BXMT-Walker & Dunlop joint venture

Large

loans:

$142

million

avg.

size

(b)

($ in billions)

Origination Growth

2017 Originations

$3.5

$4.8

37%

YoY growth

Office

Multi

Hotel

Retail

Other

2016 Originations

2017 Originations

Loan Originations

Originated

$1.2

billion

in

4Q

bringing

total

2017

originations

to

$4.8

billion,

up

37%

from

prior

year

Portfolio

growth

of

$1.2

billion,

including

$486

million

of

fundings

under

previously

originated

commitments

in

2017

Blackstone Mortgage Trust

5

Portfolio Composition

$11.1

billion

portfolio

comprising

110

senior

loans

secured

by

institutional

quality

real

estate

concentrated

in

major

markets;

63%

of

loans

secured

by

assets

located

in

coastal

markets

Office

Retail

Hotel

Condo

Other

Multi

Geographic Diversification

(a)

Collateral Diversification

(a)

Weighted Average LTV

(b)

61%

TX

1%

$11.1B

portfolio

CA

19%

BE

1%

NL

1%

DEU

1%

UK

7%

States that comprise less than 1% of total loan portfolio

CAN

4%

IL

8%

GA

4%

FL

7%

VA

7%

DC

3%

NY

22%

MA

3%

WA

2%

53%

17%

11%

8%

2%

9%

(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-K for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $985 million of such Non-Consolidated Senior

Interests as of December 31, 2017.

(b)

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

HI

5%

Blackstone Mortgage Trust

6

Financing

Closed

$1.0

billion

collateralized

loan

obligation

(CLO),

the

largest

commercial

real

estate

CLO

issued

post

financial

crisis

Innovative

structural

features

maximize

economic

efficiency

and

maintain

asset

management

flexibility

BXMT 2017-FL1

(b)

Structure

$3.4B

Total Loans

$1.0B

CLO Securitization

31

No. of Loans

31

Pari

Passu

A2 Participations

Finances $1.0 billion of BXMT

originated senior mortgages

Non-recourse

Non-MTM

(a)

term financing

Innovative structural flexibility

Highlights

$817M

Notes Sold

82%

Advance Rate

L+1.21%

Average Coupon

NR  $100

B-

$38

BB-

$45

BBB-

$83

A-

$59

AA-

$61

AAA  $85

AAA 

$530

A1

A1

A1

A1

A2

A2

A2

A2

(a)

Mark to market

(b)

This information is not intended to, and does not constitute, represent or form part of any offer, invitation or solicitation of any offer to purchase, or otherwise acquire,

subscribe for, sell or otherwise dispose of, any securities

Blackstone Mortgage Trust

7

Financing

Grew

capacity

by

$4.2

billion

in

2017

through

diversified

funding

sources

including

new

credit

facilities,

upsizes

of

existing

facilities,

BXMT’s

first

CLO

and

large

loan

securitization,

convertible

debt

issuances,

and

issuance

of

common

stock

Total

asset-level

financing

capacity

of

$10.9

billion

was

70%

utilized

at

quarter

end

Financing

(a)

In addition to $33 million of loan participations sold, includes $985 million 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.

(b)

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

$4.2B

2017 New Capital Sources

2.0x

Debt-to-Equity

Ratio

(b)

$5.8

$8.1

Credit

Facilities

$1,600

Secured Facility

$125

Total Leverage

Senior Loan

Interests

(a)

Securitized

Debt

Corporate Obligations

Corporate Debt

Credit Facilities

10 Credit Providers

Convertible Notes and

Secured Facility

Senior Syndications

$5.3

$0.6

$1.0

$1.3

CLO and Single Asset

Securitization

CLO

$818

A-note

$375

Convert

$403

Common

Equity

$392

($ in billions, outstanding balance)

($ in millions, except as noted otherwise)

Securitization

$475

Blackstone Mortgage Trust

8

Interest Rates

Core

Earnings

are

positively

correlated

to

changes

in

LIBOR,

the

benchmark

index

for

94%

of

BXMT’s

loans

A

1.0%

increase

in

USD

LIBOR

would

increase

net

interest

income

per

share

by

$0.29

per

annum

(a)

Portfolio

Income

Sensitivity

to

USD

LIBOR

(a)

(Annual Dollars of Net Interest Income Per Share)

Portfolio Fixed vs. Floating

(% of Total Loan Exposure)

Fixed

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

1.56%

2.06%

2.56%

3.06%

3.56%

4.06%

Floating

Fixed

6%

94%

USD LIBOR

(a)

Changes in interest rates and credit spreads may affect our net interest income from loans and other investments. See Appendix for important disclosures.

Blackstone Mortgage Trust

9

Tax Reform

The

Tax

Cuts

and

Jobs

Act

of

2017

includes

provisions

entitling

individual

recipients

of

REIT

dividends

to

a

20%

deduction

on

ordinary

dividends,

effectively

reducing

the

maximum

individual

tax

rate

on

REIT

dividends

from

37.0%

to

29.6%

(a)

An

8%

REIT

dividend

results

in

an

after-tax

yield

equivalent

to

a

9%

bond

yield

for

individual

investors

Tax Reform Impact Illustration

After-Tax

Yield

29.6%

Max. Tax Rate

37.0%

Max. Tax Rate

(a)

This does not constitute tax advice to, and should not be relied upon by, potential investors, who should consult their own tax advisors regarding the matters

discussed herein and the tax consequences of an investment in BXMT. This presentation is included for illustration purposes only. The dividend yields included herein

are not guaranteed and are not reflective of BXMT’s historical performance.

8%

9%

REIT Dividend Yield

Fully Taxable Equivalent Yield

Appendix

Blackstone Mortgage Trust

11

3Q'17 Loans

Outstanding

Fundings

Repayments

4Q'17 Loans

Outstanding

GAAP Net

Income

Adjustments

Core

Earnings

Interest Income

146.1

$     

(0.5)

$       

145.6

$     

Interest Expense

(66.0)

0.5

(65.5)

Management and

Incentive Fees

(14.3)

—

(14.3)

G&A / Other

(1.5)

0.4

(1.1)

Non-Cash

Compensation

(6.2)

6.2

—

Net income attributable to

non-controlling interests

(0.2)

—

(0.2)

Total

57.9

$    

6.6

$      

64.5

$    

Appendix –

Fourth Quarter 2017 Operating Results & Net Funding

$420 million

(b)

Net Fundings

Net Funding

($ in billions)

Operating Results

($ in millions)

$10.7

$1.3

$(0.9)

$11.1

$0.65

Core Earnings Per Share

$0.59

Net Income Per Share

(a)

(a)

(a)

Includes $988 million and $985 million of Non-Consolidated Senior Interests as of September 30, 2017 and December 31, 2017, respectively; see Appendix for definition

(b)

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

Blackstone Mortgage Trust

12

(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

December 31, 2017, three loans in the portfolio have been financed with an aggregate $985 million 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.

Loan Portfolio Details

($ 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

5/11/2017

753

$

656

$

653

$

L + 3.40%

L + 3.60%

6/10/2023

Northern Virginia

Office

321 / sqft

62%

Loan 2

Senior Loan

(b)

5/15/2015

590

545

92

L + 4.25%

L + 4.69%

5/15/2020

Miami

Retail

691 / sqft

36%

Loan 3

Senior Loan

(b)

8/6/2015

499

499

91

4.49%

5.82%

10/29/2022

Diversified -

EUR

Other

n/a

71%

Loan 4

Senior Loan

1/7/2015

315

295

294

L + 3.50%

L + 3.71%

1/9/2021

New York

Office

252 / sqft

53%

Loan 5

Senior Loan

5/1/2015

320

295

294

L + 3.45%

L + 3.83%

5/1/2020

New York

Office

375 / sqft

68%

Loan 6

Senior Loan

3/31/2017

258

242

240

L + 4.15%

L + 4.54%

4/9/2022

Maui

Hotel

318,182 /  key

75%

Loan 7

Senior Loan

6/4/2015

230

230

232

L + 4.20%

L + 4.22%

3/18/2021

Diversified -

CAN

Hotel

38,623 /  key

54%

Loan 8

Senior Loan

12/22/2017

225

225

223

L + 2.80%

L + 3.16%

1/9/2023

Chicago

Multi

326,087 / unit

65%

Loan 9

Senior Loan

6/23/2015

222

215

215

L + 3.65%

L + 3.98%

5/8/2022

Washington DC

Office

241 / sqft

72%

Loan 10

Senior Loan

2/25/2014

210

210

209

L + 4.25%

L + 4.70%

3/9/2021

Diversified -

US

Hotel

110,352 /  key

58%

Loan 11

Senior Loan

8/3/2016

276

200

198

L + 4.66%

L + 5.22%

8/9/2021

New York

Office

275 / sqft

57%

Loan 12

Senior Loan

8/19/2016

200

190

190

L + 3.64%

L + 4.10%

9/9/2021

New York

Office

580 / sqft

69%

Loan 13

Senior Loan

4/15/2016

200

189

188

L + 4.25%

L + 4.86%

5/9/2021

New York

Office

176 / sqft

40%

Loan 14

Senior Loan

12/22/2016

205

175

174

L + 3.50%

L + 4.07%

1/9/2022

New York

Office

246 / sqft

66%

Loan 15

Senior Loan

8/17/2016

187

169

168

L + 3.75%

L + 4.13%

9/9/2021

San Francisco

Office

498 / sqft

65%

Loans 16-110

Senior Loans

Various

8,016

6,759

6,596

5.47%

(d)

5.88%

(d)

Various

Various

Various

Various

62%

Total/Wtd. Avg.

12,706

$

11,094

$

10,057

$

5.38%

5.83%

3.5 years

61%

Blackstone Mortgage Trust

13

December 31, 2017

December 31, 2016

Assets

Cash and cash equivalents

69,654

$                      

75,567

$                       

Restricted Cash

32,864

—

Loans receivable, net

10,056,732

8,692,978

Other assets

99,575

44,070

Total assets

10,258,825

$              

8,812,615

$                

Liabilities and equity

Secured debt agreements, net

5,273,855

$                

5,716,354

$                

Loan participations sold, net

80,415

348,077

Securitized debt obligations, net

1,282,412

—

Convertible notes, net

563,911

166,762

Other liabilities

140,826

87,819

Total liabilities

7,341,419

6,319,012

Commitments and contingencies

—

—

Equity

Class A common stock, $0.01 par value

1,079

945

Additional paid-in capital

3,506,861

3,089,997

Accumulated other comprehensive loss

(29,706)

(56,202)

Accumulated deficit

(567,168)

(541,137)

Total Blackstone Mortgage Trust, Inc. stockholders' equity

2,911,066

2,493,603

Non-controlling interests

6,340

—

Total equity

2,917,406

2,493,603

Total liabilities and equity

10,258,825

$              

8,812,615

$                

Consolidated Balance Sheets

($ in thousands, except per share data)

Blackstone Mortgage Trust

14

Consolidated Statements of Operations

($ in thousands, except per share data)

Three Months Ended December 31,

Year Ended December 31,

2017

2016

2017

2016

Income from loans and other investments

Interest and related income

146,127

$           

116,288

$           

537,915

$           

497,974

$           

Less: Interest and related expenses

65,953

44,451

234,870

184,270

Income from loans and other investments, net

80,174

71,837

303,045

313,704

Other expenses

Management and incentive fees

14,284

12,798

54,841

55,959

General and administrative expenses

7,702

6,726

29,922

27,716

Total other expenses

21,986

19,524

84,763

83,675

Gain on investments at fair value

—

6

—

13,420

Income from equity investment in unconsolidated subsidiary

—

995

—

3,187

Income before income taxes

58,188

53,314

218,282

246,636

Income tax provision (benefit)

48

(85)

314

196

Net income

58,140

$             

53,399

$             

217,968

$           

246,440

$           

Net income attributable to non-controlling interests

(249)

(24)

(337)

(8,143)

Net income attributable to Blackstone Mortgage Trust, Inc.

57,891

$             

53,375

$             

217,631

$           

238,297

$           

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

98,810,617

94,455,518

95,963,616

94,165,351

Net income per share of common stock

0.59

$                 

0.57

$                 

2.27

$                 

2.53

$                 

Blackstone Mortgage Trust

15

Per Share Calculations

(Amounts in thousands, except per share data)

(a)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(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

Three Months Ended

December 31, 2017

September 30, 2017

Net income

(a)

57,891

$                   

57,722

$                     

Non-cash compensation expense

6,221

5,944

GE purchase discount accretion adjustment

(b)

(483)

(138)

Other items

874

1,610

Core Earnings

64,503

$                   

65,138

$                     

Weighted-average shares outstanding, basic and diluted

98,811

95,013

Core Earnings per share, basic and diluted

0.65

$                       

0.69

$                           

Three Months Ended

December 31, 2017

September 30, 2017

Net income

(a)

57,891

$                   

57,722

$                     

Weighted-average shares outstanding, basic and diluted

98,811

95,013

Earnings per share, basic and diluted

0.59

$                       

0.61

$                           

December 31, 2017

September 30, 2017

Stockholders‘

equity

2,911,066

$             

2,519,614

$                

Shares

Class A common stock

107,884

94,828

Deferred stock units

197

190

Total outstanding

108,081

95,018

Book value per share

26.93

$                     

26.52

$                         

Book Value

per Share

Earnings

per Share

Blackstone Mortgage Trust

16

Reconciliation of Net Income to Core Earnings

(a)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(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

(Amounts in thousands, except per share data)

Mar 31,

2017

Jun 30,

2017

Sep 30,

2017

Dec 31,

2017

Net income

(a)

51,405

$

50,613

$

57,722

$

57,891

$

Non-cash compensation expense

5,907

5,959

5,944

6,221

GE

purchase

discount

accretion

adjustment

(b)

(216)

(198)

(138)

(483)

Other items

1,024

1,001

1,610

874

Core Earnings

58,120

$

57,375

$

65,138

$

64,503

$

Weighted-average shares outstanding, basic and diluted

94,993

95,006

95,013

98,811

Net income per share, basic and diluted

0.54

$     

0.53

$     

0.61

$     

0.59

$     

Core Earnings

per share, basic and diluted

0.61

$     

0.60

$     

0.69

$     

0.65

$     

Blackstone Mortgage Trust

17

Definitions

Core

Earnings:

Blackstone

Mortgage

Trust,

Inc.

(“BXMT”)

discloses

Core

Earnings

in

this

presentation.

Core

Earnings

is

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”).

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,

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,

which

are

excluded

from

the

GAAP

balance

sheet,

constitute

additional

financing

capacity

and

are

included

in

discussions

of

the

loan

portfolio.

Net

Interest

Income

Sensitivity

to

LIBOR:

Reflects

the

impact

on

net

interest

income,

assuming

no

changes

in

credit

spreads,

portfolio

composition,

or

asset

performance.

Excludes

other

components

of

net

income,

such

as

management

and

incentive

fees,

which

ultimately

impact

earnings

and

dividends

per

share.

Blackstone Mortgage Trust

18

Forward-Looking Statements

This

presentation

may

contain

forward-looking

statements

within

the

meaning

of

Section

27A

of

the

Securities

Act

of

1933,

as

amended,

and

Section

21E

of

the

Securities

Exchange

Act

of

1934,

as

amended,

which

reflect

BXMT’s

current

views

with

respect

to,

among

other

things,

its

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,

2017,

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.