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): October 23, 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 October 23, 2018, Blackstone Mortgage Trust, Inc. (the “Company”) issued a press release and detailed presentation announcing its financial results for the third quarter ended September 30, 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 October 23, 2018.
99.2	Presentation of Blackstone Mortgage Trust, Inc. dated October 23, 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: October 23, 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

Third Quarter 2018 Results

New York, October 23, 2018: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its third quarter 2018 results.

Stephen D. Plavin, Chief Executive Officer, said, “This quarter’s outstanding results further demonstrate the strength and competitive advantage of the Blackstone Real Estate platform. The BXMT investment portfolio and capital base both experienced significant growth in the quarter and we continued to have 100% credit performance.”

Blackstone Mortgage Trust issued a full detailed presentation of its third 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, October 24, 2018 at 10:00 a.m. ET to discuss third quarter 2018 results. The conference call can be accessed by dialing +1 (888) 268-4191 (U.S. domestic) or +1 (617) 597-5497 (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 146-276-79#.

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, Europe, and Australia. 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 $457 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.

October 23, 2018

Third Quarter 2018 Results

Exhibit 99.2

Blackstone Mortgage Trust

1

BXMT Highlights

Information included in this presentation is as of or for the period ended September 30, 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 October 22, 2018

(c)

Reflects weighted average LTV as of the date investments were originated or acquired by BXMT

(d)

Includes $467 million of Non-Consolidated Senior Interests and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $99 million subordinate risk retention interest

BXMT generated 3Q EPS of $0.67 and Core EPS

(a)

of $0.75 through continued

growth in its first mortgage origination business

+24%

($ in billions)

Portfolio Growth

(d)

$11.1

$13.8

YE 2017

3Q'18

Loan-to-Value

(c)(d)

Dividend Yield

(b)

62%

7.5%

100%

95%

Performing

Floating Rate

(d)

Blackstone Mortgage Trust

2

Originations

Originations

$1.4

billion

of

originations

in

3Q

and

record

YTD

originations

of

$7.2

billion,

more

than

doubling

1Q-3Q

2017

volume

Continued

international

growth:

originated

$316

million

of

loans

in

Australia

bringing

YTD

non-US

originations

to

$1.9

billion

Earnings &

Dividends

Earnings &

Dividends

EPS

of

$0.67

and

Core

Earnings

(a)

per

share

of

$0.75

Book

value

per

share

increased

to

$27.53,

up

12%

since

2013

re-IPO;

paid

$0.62

per

share

dividend

Third Quarter 2018 Results

Portfolio

Composition

Portfolio

Composition

Capitalization

Capitalization

Interest Rates

Interest Rates

Portfolio

grew

24%

YTD

to

$13.8

billion

(b)

100%

performing

portfolio

with

a

weighted

average

origination

LTV

(b)(c)

of

62%

Issued

8.2

million

shares

at

1.21x

P/B,

generating

$270

million

of

gross

proceeds

and

adding

$0.38

to

book

value

per

share

through

accretive

issuance

levels

Grew

credit

capacity

by

$2.2

billion

YTD

and

expanded

multi-currency

funding

capabilities

(a)

See Appendix for a definition and reconciliation to GAAP net income

(b)

Includes $467 million of Non-Consolidated Senior Interests and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $99 million subordinate risk retention interest

(c)

Reflects weighted average LTV as of the date investments were originated or acquired by BXMT

95%

of

the

portfolio

(b)

is

floating

rate

Floating

rate

assets

and

matched

liabilities

support

book

value

and

earnings

stability

Blackstone Mortgage Trust

3

$2.48

$0.40

Earnings & Dividends

Earnings & Dividends

3Q

GAAP

EPS

of

$0.67

and

Core

Earnings

(a)

of

$0.75

per

share,

$0.62

per

share

dividend

equates

to

a

7.5%

dividend

yield

(b)

Earnings

in

excess

of

$0.62

quarterly

dividend

contributed

to

book

value,

which

has

grown

12%

since

2013

re-IPO

(a)

See Appendix for a definition and reconciliation to GAAP net income

(b)

Based on annualized dividend and BXMT closing price as of October 22, 2018

(c)

TTM

GAAP EPS was $2.49; retained Core Earnings refers to the amount of Core Earnings in excess of dividends paid for the periods presented

$0.62

Quarterly

Dividend

$24.67

$27.53

Re-IPO

2Q'13

3Q'18

+12%

Dividends Paid

Retained

Core Earnings

Book Value Per Share Growth

TTM Core Earnings Per Share

(c)

116%

TTM Dividend Coverage

Blackstone Mortgage Trust

4

$3.5

$5.3

$0.1

$1.6

$0.3

1Q'17 - 3Q'17

1Q'18 - 3Q'18

Originations

Originations

Origination

volume

of

$1.4

billion

in

3Q;

$7.2

billion

YTD

volume

is

more

than

double

1Q-3Q

2017

volume

Blackstone

Real

Estate’s

scale

and

reach

provide

opportunities

to

access

attractive

investments

in

a

wide

range

of

markets

($ in billions)

Origination Volume

100% performing

100% floating rate

$286

million

average

loan

size

(b)

YTD 2018 Origination Highlights

59% LTV

(a)

(a)

Reflects weighted average LTV as of the date investments were originated or acquired by BXMT

(b)

Excludes loans originated in the Walker & Dunlop joint venture

$7.2

$3.6

North America

Europe

Australia

+102%

Blackstone Mortgage Trust

5

44%

23%

14%

8%

2%

1%

8%

Condo

Spanish

Assets

Retail

Portfolio Composition

$13.8

billion

portfolio

(a)

(113

assets)

secured

by

institutional

quality

real

estate,

with

54%

in

gateway

markets

High

quality

100%

performing

portfolio

with

low

weighted

average

LTV

(a)(b)

of

62%

Office

Hotel

Other

Multi

Major

Market

Focus

(a)

Collateral

Diversification

(a)

(a)

Includes $467 million of Non-Consolidated Senior Interests and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $99 million subordinate risk retention interest

(b)

Reflects weighted average LTV as of the date investments were originated or acquired by BXMT

Weighted

Average

LTV

(a)(b)

62%

$13.8B

portfolio

AU

2%

1%

BE

ES

8%

AZ

CO

1%

1%

DC

2%

LA

1%

NC

1%

OH

1%

1%

OR

PA

1%

TN

1%

1%

WA

GA

2%

NV

2%

TX

2%

2%

CAN

FL

4%

HI

5%

IL

6%

U.K.

6%

VA

6%

CA

15%

MD

1%

MA

2%

NY

25%

States that comprise less than 1% of total portfolio

Blackstone Mortgage Trust

6

Capitalization

Increased

credit

capacity

by

$2.2

billion

YTD

and

expanded

multi-currency

funding

capabilities

Total

asset-level

financing

capacity

of

$13.5

billion

was

72%

utilized

at

quarter-end

$270

million

of

equity

raised

at

1.21x

P/B

resulting

in

$0.38

per

share

of

book

value

accretion

Credit Capacity Growth

(a)

Includes $1.3 billion of consolidated securitized debt obligation as well as $0.9 billion of securitized debt held by third-parties in the $1.0 billion 2018 Single Asset Securitization, which is not

consolidated on BXMT’s balance sheet. Refer to our consolidated financial statements for further discussion of the subordinated risk retention interest related to the 2018 Single Asset

Securitization.

(b)

Includes

$81

million

of

loan

participations

sold

and

$467

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.

(c)

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

(b)

$6.9

$0.8

$0.5

$7.7

Securitized

Debt

(a)

$2.2

CLO and Single Asset

Securitizations

2.3x

Debt-to-Equity Ratio

(c)

Senior Syndications

Financing

(Outstanding Balance)

+19%

$13.5

$11.3

($ in billions)

Credit Facilities

Syndications

Securitizations

$8.6

$1.4

$1.3

YE 2017

$10.4

$0.9

$2.2

3Q'18

Blackstone Mortgage Trust

7

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

2.26%

2.76%

3.26%

3.76%

4.26%

4.76%

5%

95%

Interest Rates

95%

of

the

portfolio

(a)

is

floating

rate

A

1.0%

increase

in

USD

LIBOR

would

increase

earnings

per

share

by

$0.24

per

annum

(a)

(a)

Includes $467 million of Non-Consolidated Senior Interests and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $99 million subordinate risk retention interest

(b)

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

(b)

(Annual Dollars of Earnings per Share)

USD LIBOR

Portfolio

Fixed

vs.

Floating

(a)

(%

of

Total

Portfolio

Exposure)

Floating

Fixed

Appendix

Blackstone Mortgage Trust

9

GAAP Net

Income

Adjustments

Core

Earnings

Interest Income

203.1

$     

$—

203.1

$     

Interest Expense

(98.0)

0.6

(97.4)

Management and

Incentive Fees

(18.4)

—

(18.4)

General and Administrative

Expenses

(1.7)

—

(1.7)

Non-Cash

Compensation

(6.7)

6.7

—

Realized Foreign Currency

Gain, net

(a)

—

1.9

1.9

Net Income Attributable to

Non-controlling Interests

(0.1)

—

(0.1)

Total

78.2

$     

9.2

$       

87.4

$     

($0.2)

$1.2

$2.3

2016

2017

2018 YTD

Appendix –

Third Quarter 2018 Operating Results & Net Funding

$2.3 billion

YTD 2018 Net Fundings

Net Funding

(b)

($ in billions)

Operating Results

($ in millions)

(a)

Primarily represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign

currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. These

amounts are not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.

(b)

Excludes the impact of changes in foreign currency rates and related hedges for non-USD investments

$0.75

Core Earnings per Share

$0.67

Net Income per Share

Fundings

Repayments

$466 million

3Q’18  Net Fundings

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

September 30, 2018, three loans in the portfolio have been financed with an aggregate $467 million of Non-Consolidated Senior Interests, which are included in the table above.

(c)

Portfolio excludes our $99 million subordinate risk retention interest in the $1.0 billion 2018 Single Asset Securitization

(d)

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

(e)

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

Portfolio Details

($ in millions)

Origination

Total

Principal

Net Book

Maximum

Property

Loan Per

Origination

Loan Type

Date

(a)

Loan

(b)(c)

Balance

(b)(c)

Value

Maturity

(d)

Location

Type

SQFT / Unit / Key

LTV

(a)

Loan 1

Senior loan

3/22/2018

$  1,160

$  1,160

$  1,153

L + 3.15

%

L + 3.40

%

3/15/23

Diversified -

Spain

Spanish Assets

n/a

71 %

Loan 2

Senior loan

5/11/2017

753

679

675

L + 3.40

%

L + 3.60

%

6/10/2023

Northern Virginia

Office

$332 / sqft

62 %

Loan 3

Senior loan

(b)

8/6/2015

481

481

88

4.48

%

5.82

%

10/29/2022

Diversified -

EUR

Other

n/a

71 %

Loan 4

Senior loan

5/1/2015

355

340

339

L + 2.85

%

L + 3.02

%

5/1/2023

New York

Office

$431 / sqft

68 %

Loan 5

Senior loan

2/13/2018

330

312

312

L + 3.42

%

L + 3.54

%

3/9/2023

New York

Multi

$756,199 / unit

62 %

Loan 6

Senior loan

1/7/2015

315

309

309

L + 3.50

%

L + 3.71

%

1/9/2021

New York

Office

$264 / sqft

53 %

Loan 7

Senior loan

3/31/2017

339

267

264

L + 3.50

%

L + 3.88

%

8/9/2023

Maui

Hotel

$351,479 /  key

61 %

Loan 8

Senior loan

8/3/2016

276

229

228

L + 4.66

%

L + 5.25

%

8/9/2021

New York

Office

$314 / sqft

57 %

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

5/9/2018

219

219

217

L + 3.00

%

L + 3.24

%

5/9/2023

New York

Industrial

$62 / sqft

70 %

Loan 11

Senior loan

6/23/2015

221

214

214

L + 3.65

%

L + 3.78

%

5/8/2022

Washington DC

Office

$239 / sqft

72 %

Loan 12

Senior loan

6/4/2015

208

208

210

L + 4.19

%

L + 4.14

%

5/21/2021

Diversified -

CAN

Hotel

$43,920 /  key

54 %

Loan 13

Senior loan

4/15/2016

225

200

198

L + 3.25

%

L + 3.84

%

4/9/2023

New York

Office

$186 / sqft

40 %

Loan 14

Senior loan

2/25/2014

195

195

195

L + 4.01

%

L + 4.46

%

3/9/2021

Diversified -

US

Hotel

$102,470 /  key

55 %

Loan 15

Senior loan

6/4/2018

190

190

188

L + 3.50

%

L + 3.86

%

6/9/2024

New York

Hotel

$313,015 /  key

52 %

Loans 16 -

112

Senior loans

Various

10,352

7,499

7,365

5.87

%

(e)

6.22

%

(e)

Various

Various

Various

Various

63 %

Total/Wtd. avg.

$  15,844

$  12,727

$  12,177

5.52

%

5.89

%

3.8 yrs

63 %

Cash

All-in

Coupon

Yield

Blackstone Mortgage Trust

11

September 30, 2018

December 31, 2017

Assets

Cash and cash equivalents

86,987

$                      

69,654

$                       

Restricted cash

—

32,864

Loans receivable, net

12,176,516

10,056,732

Other assets

155,972

99,575

Total assets

12,419,475

$              

10,258,825

$              

Liabilities and equity

Secured debt agreements, net

6,841,759

$                

5,273,855

$                

Loan participations sold, net

81,044

80,415

Securitized debt obligations, net

1,284,362

1,282,412

Convertible notes, net

780,951

563,911

Other liabilities

123,366

140,826

Total liabilities

9,111,482

7,341,419

Commitments and contingencies

—

—

Equity

Class A common stock, $0.01 par value

1,197

1,079

Additional paid-in capital

3,898,841

3,506,861

Accumulated other comprehensive loss

(32,849)

(29,706)

Accumulated deficit

(566,417)

(567,168)

Total Blackstone Mortgage Trust, Inc. stockholders' equity

3,300,772

2,911,066

Non-controlling interests

7,221

6,340

Total equity

3,307,993

2,917,406

Total liabilities and equity

12,419,475

$              

10,258,825

$              

Consolidated Balance Sheets

($ in thousands, except per share data)

Blackstone Mortgage Trust

12

Consolidated Statements of Operations

($ in thousands, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2018

2017

2018

2017

Income from loans and other investments

Interest and related income

203,107

$           

146,446

$           

550,011

$           

391,787

$           

Less: Interest and related expenses

97,955

67,891

255,677

168,917

Income from loans and other investments, net

105,152

78,555

294,334

222,870

Other expenses

Management and incentive fees

18,368

13,243

56,248

40,557

General and administrative expenses

8,443

7,419

25,897

22,219

Total other expenses

26,811

20,662

82,145

62,776

Income before income taxes

78,341

57,893

212,189

160,094

Income tax provision

48

83

272

265

Net income

78,293

$             

57,810

$             

211,917

$           

159,829

$           

Net income attributable to non-controlling interests

(128)

(88)

(481)

(88)

Net income attributable to Blackstone Mortgage Trust, Inc.

78,165

$             

57,722

$             

211,436

$           

159,741

$           

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

116,203,140

95,013,087

111,251,864

95,004,188

Net income per share of common stock

0.67

$                 

0.61

$                 

1.90

$                 

1.68

$                 

Blackstone Mortgage Trust

13

Per Share Calculations

(a)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(b)

Historically, we have deferred in Core Earnings the accretion of purchase discount attributable to a certain pool of GE portfolio investments acquired in May 2015, until repayment in full of

the remaining investments in the pool was substantially assured. During the three months ended June 30, 2018, it was determined that repayment of the remaining loans in the deferral

pool was substantially assured. As such, the $8.7 million of deferred purchase discount, which has been previously recognized in GAAP net income, was realized in Core Earnings during the

three months ended June 30, 2018.

(c)

Primarily represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign

currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. These

amounts are not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.

Core Earnings

Reconciliation

Book Value

per Share

Earnings

per Share

(Amounts in thousands, except per share data)

Three Months Ended

September 30, 2018

June 30, 2018

Net income

(a)

78,165

$                   

72,312

$                     

GE purchase discount accretion adjustment

(b)

—

8,723

Non-cash compensation expense

6,734

6,778

Realized foreign currency gain, net

(c)

1,930

1,998

Other items

590

565

Core Earnings

87,419

$                   

90,376

$                     

Weighted-average shares outstanding, basic and diluted

116,203

109,069

Core Earnings per share, basic and diluted

0.75

$                       

0.83

$                           

Three Months Ended

September 30, 2018

June 30, 2018

Stockholders’ equity

3,300,772

$             

3,023,480

$                

Shares

Class A common stock

119,669

111,442

Deferred stock units

221

213

Total outstanding

119,890

111,655

Book value per share

27.53

$                     

27.08

$                         

Three Months Ended

September 30, 2018

June 30, 2018

Net income

(a)

78,165

$                   

72,312

$                     

Weighted-average shares outstanding, basic and diluted

116,203

109,069

Earnings per share, basic and diluted

0.67

$                       

0.66

$                           

Blackstone Mortgage Trust

14

Reconciliation of Net Income to Core Earnings

(a)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(b)

Historically, we have deferred in Core Earnings the accretion of purchase discount attributable to a certain pool of GE portfolio investments acquired in May 2015, until repayment in full of

the remaining investments in the pool was substantially assured. During the three months ended June 30, 2018, it was determined that repayment of the remaining loans in the deferral

pool was substantially assured. As such, the $8.7 million of deferred purchase discount, which has been previously recognized in GAAP net income, was realized in Core Earnings during the

three months ended June 30, 2018.

(c)

Primarily

represents

the

forward

points

earned

on

our

foreign

currency

forward

contracts,

which

reflect

the

interest

rate

differentials

between

the

applicable

base

rate

for

our

foreign

currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. These

amounts are not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.

(Amounts in thousands, except per share data)

TTM Ended

Sept 30,

2018

Sept 30,

2018

June 30,

2018

Mar 31,

2018

Dec 31,

2017

Net income

(a)

269,326

$     

78,165

$       

72,312

$       

60,958

$       

57,891

$        

GE purchase discount accretion adjustment

(b)

8,223

—

8,723

(17)

(483)

Non-cash compensation expense

26,709

6,734

6,778

6,976

6,221

Realized foreign currency gain, net

(c)

5,137

1,930

1,998

854

355

Other items

2,208

590

565

534

519

Core Earnings

311,603

$     

87,419

$       

90,376

$       

69,305

$       

64,503

$        

Weighted-average shares outstanding, basic and diluted

108,116

116,203

109,069

108,398

98,811

Net income per share, basic and diluted

2.49

$            

0.67

$            

0.66

$            

0.56

$            

0.59

$            

Core Earnings per share, basic and diluted

2.88

$            

0.75

$            

0.83

$            

0.64

$            

0.65

$            

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

September

30,

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.