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 24, 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 April 24, 2018, Blackstone Mortgage Trust, Inc. (the “Company”) issued a press release and detailed presentation announcing its financial results for the first quarter ended March 31, 2018. 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 April  24, 2018.
99.2	Presentation of Blackstone Mortgage Trust, Inc. dated April  24, 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: April 24, 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

First Quarter 2018 Results

New York, April 24, 2018: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its first quarter 2018 results. GAAP net income for the first quarter was $61 million, or $0.56 per share.

Stephen D. Plavin, Chief Executive Officer, said, “We had a great start to the year with a record $1.9 billion of quarterly direct originations that grew our portfolio to $12.1 billion. With the closing of the $1.8 billion Spiral loan post quarter end, we remain very well positioned for future growth.”

Blackstone Mortgage Trust issued a full detailed presentation of its first quarter 2018 results, which can be viewed at www.bxmt.com.

Quarterly Investor Call Details

Blackstone Mortgage Trust will host a conference call on Wednesday, April 25, 2018 at 10:00 a.m. ET to discuss first quarter 2018 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 777-880-58#.

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

Blackstone Mortgage Trust, Inc.

345 Park Avenue

New York, New York 10154

T 212 655 0220

flexible capital to help companies solve problems. Blackstone’s asset management businesses, with $450 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.

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.

April 24, 2018

First Quarter 2018 Results

Exhibit 99.2

Blackstone Mortgage Trust

1

BXMT Highlights

8.1%

Dividend Yield

(b)

Blackstone Real

Estate platform

provides expert

management

100% performing

loan portfolio

generates current

cash income

Stable assets

financed with long-

term, match-funded

liabilities

Portfolio positioned for

yield and value

protection in changing

rate environment

Information included in this presentation is as of or for the period ended March 31, 2018, 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 April 23, 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. Reflects impact on net income, net of incentive fees.

See Appendix for important disclosures.

$0.62

1Q Dividend

62%

Loan-to-Value

(c)

$12.1B

Senior Loan Portfolio

94%

Floating Rate

+$0.24

Earnings

Impact

per

1%

Increase in LIBOR

(d)

$120B

BX Real Estate Investor

Capital under Management

$1.9B

1Q Originations

BXMT

originated $1.9 billion of senior commercial real estate loans growing its portfolio

by

$1.0

billion

in

1Q

and

generating

$0.56

of

GAAP

EPS

and

$0.64

of

Core

EPS

(a)

Expertise

Income

Stability

Protection

Blackstone Mortgage Trust

2

Loan

Originations

Loan

Originations

Record

direct

origination

volume

of

$1.9

billion

and

net

fundings

of

$1.0

billion

Closed

€1.0

billion

loan

secured

by

portfolio

of

Spanish

assets,

and

subsequent

to

quarter

end

closed

a

$1.8

billion

office

construction

loan

in

Hudson

Yards,

Manhattan

Earnings &

Dividends

Earnings &

Dividends

1Q

EPS

of

$0.56

and

Core

Earnings

(a)

of

$0.64

per

share,

or

$69

million

Paid

$0.62

per

share

dividend

and

increased

book

value

per

share

by

$0.02

to

$26.95

First Quarter 2018 Results

Portfolio

Composition

Portfolio

Composition

Financing

Financing

Interest Rates

Interest Rates

Growth

of

9%

during

1Q

resulted

in

a

$12.1

billion

total

portfolio

of

senior

loans

(b)

100%

performing

portfolio

with

a

weighted

average

origination

LTV

(c)

of

62%

Issued

$220

million

of

five-year

convertible

notes

with

a

coupon

of

4.75%

Added

$2.8

billion

of

term

and

currency

matched

credit

facility

capacity

(a)

See Appendix for a definition and reconciliation to GAAP net income

(b)

Includes $996 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)

Changes in interest rates and credit spreads may affect our net interest income from loans and other investments. Reflects impact on net income, net of incentive fees.

See Appendix for important disclosures.

94%

of

the

portfolio

is

floating

rate

1.0%

increase

in

LIBOR

would

increase

earnings

per

share

by

$0.24

per

annum

(d)

Blackstone Mortgage Trust

3

$0.60

$0.69

$0.65

$0.64

2Q'17

3Q'17

4Q'17

1Q'18

Dividends per Share

Dividend Coverage

(c)

Earnings & Dividends

Earnings & Dividends

1Q

GAAP

earnings

of

$0.56

per

share

and

Core

Earnings

(a)

of

$0.64

per

share

$0.62

per

share

dividend

equates

to

a

8.1%

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 April 23, 2018

(c)

GAAP EPS of $0.53, $0.61, $0.59 and $0.56 as of 2Q’17, 3Q’17, 4Q’17 and 1Q’18, respectively

$0.62

Quarterly Dividend

104%

Dividend Coverage

Core Earnings per Share

Blackstone Mortgage Trust

4

$1.1

$0.7

$1.1

$1.8

($0.4)

($0.9)

($0.9)

($1.0)

2Q'17

3Q'17

4Q'17

1Q'18

Loan Originations

Loan Originations

Origination

volume

of

$1.9

billion,

up

$651

million

from

4Q

and

net

fundings

of

$1.0

billion,

up

$601

million

$180

million

in

fundings

of

previously

originated

commitments

resulting

in

total

gross

fundings

of

$2.0

billion,

up

$692

million

from

4Q

($ in billions)

$0.8

Fundings

of

New

Loans

Repayments

Net Fundings

$0.4

Net Fundings

$1.3

$0.9

$1.3

$2.0

($0.0)

$1.0

Fundings

of

Existing Loans

100% senior loans

100% floating rate

Large

loans:

$309

million

avg.

size

(b)

1Q

Origination Highlights

Weighted

average

LTV

(a)

of

66%

(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

Blackstone Mortgage Trust

5

48%

14%

12%

10%

7%

2%

7%

Retail

Portfolio Composition

$12.1

billion

portfolio

(106

senior

loans)

secured

by

institutional

quality

real

estate

with

59%

of

loans

in

gateway

markets

Sole

previously

“4

”

risk

rated

loan

($20

million)

was

upgraded

to

“3

”

during

1Q

and

repaid

in

full

subsequent

to

quarter

end

Office

Spanish

Assets

Hotel

Other

Multi

Geographic Diversification

(a)

Collateral Diversification

(a)

(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 $996 million of such Non-

Consolidated Senior Interests as of March 31, 2018.

(b)

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

Weighted Average LTV

(b)

62%

States that comprise less than 1% of total loan portfolio

$12.1B

portfolio

MA

3%

CAN

3%

CA

16%

WA

2%

HI

4%

DC

2%

GA

3%

IL

6%

FL

8%

VA

6%

NY

22%

DEU

1%

BE

1%

UK

7%

ES

10%

Condo

Blackstone Mortgage Trust

6

Financing

Issued

$220

million

of

five-year

convertible

notes

with

a

coupon

of

4.75%

Added

$2.8

billion

of

term

and

currency

matched

credit

facility

capacity

with

five

counterparties

Financing

(outstanding balance)

(a)

In addition to $118.2 million of loan participations sold, includes $996 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

Credit Facilities

11 Credit Providers

Corporate Debt

Convertible Notes and Secured Facility

Corporate Obligations

Senior Loan

Interests

(a)

$6.0

$0.8

$1.1

$6.8

Securitized

Debt

$1.3

CLO and Single Asset Securitization

($ in billions)

2.3x

Debt-to-Equity Ratio

(b)

Senior Syndications

Blackstone Mortgage Trust

7

6%

94%

Interest Rates

Earnings

are

positively

correlated

to

changes

in

USD

LIBOR,

the

benchmark

index

for

82%

of

BXMT’s

net

loan

equity

A

1.0%

increase

in

USD

LIBOR

would

increase

earnings

per

share

by

$0.24

per

annum

(a)

(a)

Changes in interest rates and credit spreads may affect our net interest income from loans and other investments. Reflects impact on net income, net of incentive fees.

See Appendix for important disclosures.

Earnings

Sensitivity

to

USD

LIBOR

(a)

(Annual Dollars of Earnings per Share)

USD LIBOR

Portfolio Fixed vs. Floating

(% of Total Loan Exposure)

Floating

Fixed

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

1.88%

2.38%

2.88%

3.38%

3.88%

4.38%

Appendix

Blackstone Mortgage Trust

9

4Q'17 Loans

Outstanding

Fundings

Repayments

1Q'18 Loans

Outstanding

GAAP Net

Income

Adjustments

Core

Earnings

Interest Income

155.4

$     

-

$        

155.4

$     

Interest Expense

(70.0)

0.5

(69.5)

Management and

Incentive Fees

(15.5)

—

(15.5)

G&A / Other

(1.7)

0.8

(0.9)

Non-Cash

Compensation

(7.0)

7.0

—

Net income attributable to

non-controlling interests

(0.2)

—

(0.2)

Total

61.0

$    

8.3

$      

69.3

$    

Appendix –

First Quarter 2018 Operating Results & Net Funding

$1.0 billion

(b)

Net Fundings

Net Funding

($ in billions)

Operating Results

($ in millions)

$11.1

$2.0

$(1.0)

$12.1

(a)

Includes $985 million and $996 million of Non-Consolidated Senior Interests as of December 31, 2017 and March 31, 2018, respectively; see Appendix for definition

(b)

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

$0.64

Core Earnings per Share

$0.56

Net Income per Share

(a)

(a)

Blackstone Mortgage Trust

10

(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, 2018, three loans in the portfolio have been financed with an aggregate $996 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)

Origination

Total

Principal

Net Book

Maximum

Property

Loan Per

Origination

Loan Type

Date

(a)

Loan

(b)

Balance

(b)

Value

Maturity

(c)

Location

Type

SQFT / Unit / Key

LTV

(a)

Loan 1

Senior loan

3/22/2018

$  1,230

$  1,230

$  1,220

L + 3.15

%

L + 3.40

%

3/15/2023

Diversified -

Spain

Spanish Assets

n/a

67 %

Loan 2

Senior loan

5/11/2017

753

669

665

L + 3.40

%

L + 3.60

%

6/10/2023

Northern Virginia

Office

327 / sqft

62 %

Loan 3

Senior loan

(b)

5/15/2015

590

555

94

L + 4.25

%

L + 4.58

%

5/15/2020

Miami

Retail

704 / sqft

36 %

Loan 4

Senior loan

(b)

8/6/2015

518

518

94

4.49

%

5.81

%

10/29/2022

Diversified -

EUR

Other

n/a

71 %

Loan 5

Senior loan

1/7/2015

315

298

297

L + 3.50

%

L + 3.71

%

1/9/2021

New York

Office

255 / sqft

53 %

Loan 6

Senior loan

5/1/2015

320

295

294

L + 3.45

%

L + 3.83

%

5/1/2020

New York

Office

375 / sqft

68 %

Loan 7

Senior loan

2/13/2018

330

294

293

L + 3.42

%

L + 3.54

%

3/9/2023

New York

Multi

711,951 / unit

62 %

Loan 8

Senior loan

3/31/2017

258

242

240

L + 4.15

%

L + 4.54

%

4/9/2022

Maui

Hotel

318,182 /  key

75 %

Loan 9

Senior loan

12/22/2017

225

225

223

L + 2.80

%

L + 3.16

%

1/9/2023

Chicago

Multi

326,087 / unit

65 %

Loan 10

Senior loan

6/4/2015

223

223

225

L + 4.20

%

L + 4.20

%

3/19/2021

Diversified -

CAN

Hotel

37,447 /  key

54 %

Loan 11

Senior loan

6/23/2015

222

215

215

L + 3.65

%

L + 4.00

%

5/8/2022

Washington DC

Office

241 / sqft

72 %

Loan 12

Senior loan

8/3/2016

276

208

207

L + 4.66

%

L + 5.23

%

8/9/2021

New York

Office

286 / sqft

57 %

Loan 13

Senior loan

2/25/2014

195

195

194

L + 4.01

%

L + 4.46

%

3/9/2021

Diversified -

US

Hotel

102,470 /  key

55 %

Loan 14

Senior loan

8/19/2016

200

190

190

L + 3.64

%

L + 4.10

%

9/9/2021

New York

Office

580 / sqft

69 %

Loan 15

Senior loan

4/15/2016

200

189

189

L + 4.25

%

L + 4.86

%

5/9/2021

New York

Office

176 / sqft

40 %

Loans 16 -

106

Senior loans

Various

7,787

6,593

6,441

5.68

%

(d)

6.09

%

(d)

Various

Various

Various

Various

62 %

Total/Wtd. avg.

$  13,641

$  12,137

$  11,082

5.36

%

5.78

%

3.7 yrs

62 %

Cash

All-in

Coupon

Yield

Blackstone Mortgage Trust

11

Consolidated Balance Sheets

($ in thousands, except per share data)

March 31, 2018

December 31, 2017

Assets

Cash and cash equivalents

57,396

$                     

69,654

$                      

Restricted Cash

17,082

32,864

Loans receivable, net

11,081,716

10,056,732

Other assets

55,096

99,575

Total assets

11,211,290

$             

10,258,825

$             

Liabilities and equity

Secured debt agreements, net

5,996,880

$               

5,273,855

$               

Loan participations sold, net

117,926

80,415

Securitized debt obligations, net

1,282,279

1,282,412

Convertible notes, net

778,070

563,911

Other liabilities

109,624

140,826

Total liabilities

8,284,779

7,341,419

Commitments and contingencies

—

—

Equity

Class A common stock, $0.01 par value

1,082

1,079

Additional paid-in capital

3,515,418

3,506,861

Accumulated other comprehensive loss

(21,903)

(29,706)

Accumulated deficit

(573,384)

(567,168)

Total Blackstone Mortgage Trust, Inc. stockholders’ equity

2,921,213

2,911,066

Non-controlling interests

5,298

6,340

Total equity

2,926,511

2,917,406

Total liabilities and equity

11,211,290

$             

10,258,825

$             

Blackstone Mortgage Trust

12

Consolidated Statements of Operations

($ in thousands, except per share data)

Three Months Ended March 31,

2018

2017

Income from loans and other investments

Interest and related income

155,425

$           

118,517

$           

Less: Interest and related expenses

69,989

46,674

Income from loans and other investments, net

85,436

71,843

Other expenses

Management and incentive fees

15,492

12,921

General and administrative expenses

8,708

7,428

Total other expenses

24,200

20,349

Income before income taxes

61,236

51,494

Income tax provision

120

89

Net income

61,116

$             

51,405

$             

Net income attributable to non-controlling interests

(158)

—

Net income attributable to Blackstone Mortgage Trust, Inc.

60,958

$             

51,405

$             

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

108,397,598

94,993,386

Net income per share of common stock

0.56

$                 

0.54

$                 

Blackstone Mortgage Trust

13

Per Share Calculations

(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

until repayment in full of the remaining loans in the pool is substantially assured

Core Earnings

Reconciliation

Book Value

per Share

Earnings

per Share

March 31, 2018

December 31, 2017

Stockholders' equity

2,921,213

$              

2,911,066

$                 

Shares

Class A common stock

108,194

107,884

Deferred stock units

205

197

Total outstanding

108,399

108,081

Book value per share

26.95

$                      

26.93

$                          

(Amounts in thousands, except per share data)

Three Months Ended

March 31, 2018

December 31, 2017

Net income

(a)

60,958

$                   

57,891

$                     

Weighted-average shares outstanding, basic and diluted

108,398

98,811

Earnings per share, basic and diluted

0.56

$                       

0.59

$                           

Three Months Ended

March 31, 2018

December 31, 2017

Net income

(a)

60,958

$                   

57,891

$                     

Non-cash compensation expense

6,976

6,221

GE purchase discount accretion adjustment

(b)

(17)

(483)

Other items

1,388

874

Core Earnings

69,305

$                   

64,503

$                     

Weighted-average shares outstanding, basic and diluted

108,398

98,811

Core Earnings per share, basic and diluted

0.64

$                       

0.65

$                           

Blackstone Mortgage Trust

14

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

until repayment in full of the remaining loans in the pool is substantially assured

(Amounts in thousands, except per share data)

Mar 31,

2018

Dec 31,

2017

Sep 30,

2017

Jun 30,

2017

Net income

(a)

60,958

$      

57,891

$      

57,722

$       

50,613

$       

Non-cash compensation expense

6,976

6,221

5,944

5,959

GE purchase discount accretion adjustment

(b)

(17)

(483)

(138)

(198)

Other items

1,388

874

1,610

1,001

Core Earnings

69,305

$      

64,503

$      

65,138

$       

57,375

$       

Weighted-average shares outstanding, basic and diluted

108,398

$    

98,811

$      

95,013

$       

95,006

$       

Net income per share, basic and diluted

0.56

$           

0.59

$           

0.61

$           

0.53

$           

Core Earnings

per share, basic and diluted

0.64

$           

0.65

$           

0.69

$           

0.60

$           

Three Months Ended

Blackstone Mortgage Trust

15

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.

Earnings

Sensitivity

to

LIBOR:

Reflects

the

impact

on

net

income,

net

of

incentive

fees,

assuming

no

changes

in

credit

spreads,

portfolio

composition,

or

asset

performance.

Assumes

no

change

in

general

and

administrative

expenses,

management

fees,

or

other

non-interest

expenses

relative

to

those

incurred

for

the

quarter

ended

March

31,

2018.

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,

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.