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): July 23, 2019

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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.01 per share	BXMT	New York Stock Exchange

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 July 23, 2019, Blackstone Mortgage Trust, Inc. (the “Company”) issued a press release and detailed presentation announcing its financial results for the second quarter ended June 30, 2019. 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 July 23, 2019.
99.2	Presentation of Blackstone Mortgage Trust, Inc. dated July 23, 2019.

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: July 23, 2019
	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

Second Quarter 2019 Results

New York, July 23, 2019: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its second quarter 2019 results.

Stephen D. Plavin, Chief Executive Officer, said, “Our strong second quarter was highlighted by ramping global originations and highly efficient capital raising. We enter the third quarter very well positioned for future growth.”

Blackstone Mortgage Trust issued a full detailed presentation of its second quarter 2019 results, which can be viewed at www.bxmt.com.

Quarterly Investor Call Details

Blackstone Mortgage Trust will host a conference call on Wednesday, July 24, 2019 at 10:00 a.m. ET to discuss second quarter 2019 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 410-109-41#.

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 $545 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, 2018, 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) 583-5011 paula.chirhart@blackstone.com

EX-99.2

Blackstone Mortgage Trust, Inc.

July 23, 2019

Second Quarter Results

Exhibit 99.2

Blackstone Mortgage Trust

1

BXMT

has

increased

in

scale

through

strong

origination

volume

while

maintaining

consistently

low

leverage

In

2Q’19,

BXMT

generated

EPS

of

$0.59

and

Core

EPS

(a)

of

$0.68

BXMT Highlights

Information included in this presentation is as of or for the period ended June 30, 2019, unless otherwise indicated.

(a)

See Appendix for a definition and reconciliation to GAAP net income.

(b)

Represents the twelve months ended June 30, 2019.

(c)

Based on annualized dividend and BXMT closing price as of July 22, 2019.

(d)

Includes $489 million and $406 million of Non-Consolidated Senior Interests as of June 30, 2018 and June 30, 2019, respectively, and investment exposure to the $1.0 billion 2018 Single Asset

Securitization through a $97 million subordinate risk retention interest as of June 30, 2019.

(e)

Reflects ratio of Core Earnings to dividends declared.

(f)

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

($ in billions, except per share data)

Performing Loans

Dividend Yield

(c)

100%

6.9%

110%

63%

Dividend Coverage

(e)

Loan-to-Value

(d)(f)

+$3.0B

Portfolio Growth

(d)

0%

Change in LTV

(d)(f)

LTM Performance

(b)

Blackstone Mortgage Trust

2

Originations

Originations

$1.3

billion

of

originations

and

$192

million

of

fundings

under

existing

commitments

Continued

international

growth

with

$965

million

of

1H’19

non-US

originations

Earnings &

Dividends

Earnings &

Dividends

EPS

of

$0.59

and

Core

Earnings

(a)

per

share

of

$0.68,

or

$86

million

Increased

book

value

per

share

by

$0.53

to

$27.85;

paid

$0.62

per

share

dividend

Second Quarter 2019 Results

Portfolio

Composition

Portfolio

Composition

Capitalization

Capitalization

Interest Rates

Interest Rates

$15.8

billion

(b)

portfolio

secured

by

institutional

quality

real

estate

in

major

markets

100%

performing

portfolio

with

a

weighted

average

origination

LTV

(b)(c)

of

63%

Closed

a

$500

million

senior

secured

term

loan

at

L+2.50%

with

a

7-year

term

Issued

8.6

million

shares

at

1.32x

P/B,

generating

$311

million

of

gross

proceeds

and

adding

$0.52

to

book

value

per

share

(a)

See Appendix for a definition and reconciliation to GAAP net income.

(b)

Includes $406 million of Non-Consolidated Senior Interests and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $97 million subordinate risk retention interest.

(c)

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

(d)

A subset of BXMT loans carries LIBOR floors, which are set at various levels.

Floating

rate

assets

and

matched

liabilities

support

book

value

and

earnings

stability

LIBOR

floors

mitigate

the

impact

of

potential

rate

declines

(d)

Blackstone Mortgage Trust

3

$26.38

$27.08

$27.85

2Q'17

2Q'18

2Q'19

$2.48

$0.35

Earnings & Dividends

Earnings & Dividends

2Q

GAAP

EPS

of

$0.59

and

Core

Earnings

(a)

of

$0.68

per

share;

$0.62

per

share

dividend

equates

to

a

6.9%

dividend

yield

(b)

Accretive

equity

issuances

and

retained

earnings

enhanced

book

value

per

share

(a)

See Appendix for a definition and reconciliation to GAAP net income.

(b)

Based on annualized dividend and BXMT closing price as of July 22, 2019.

(c)

Represents the twelve months ended June 30, 2019. Retained Core Earnings refers to the amount of Core Earnings in excess of dividends paid for the periods presented.

(d)

Reflects ratio of Core Earnings to dividends declared.

$0.62

Quarterly

Dividend

Dividends Paid

Retained

Core Earnings

(a)

Book Value Per Share Growth

LTM

Core

Earnings

Per

Share

(c)

114%

LTM Dividend Coverage

(d)

Blackstone Mortgage Trust

4

$3.0

$5.6

Originations

Originations

$1.3

billion

of

originations

in

2Q’19

and

LTM

net

fundings

of

$2.6

billion

Originations

in

U.S.,

U.K.

and

Germany

demonstrate

the

benefit

of

Blackstone’s

global

reach

($ in billions)

LTM

(a)

Net Fundings

(a)

Represents the twelve months ended June 30, 2019.

(b)

Excluding

upsizes

and

loans

originated

in

the

Walker

&

Dunlop

joint

venture.

100% senior loans

100% floating rate

U.S., U.K. and Germany

2Q 2019 Origination Highlights

$134

million

average

loan

size

(b)

$2.6B

Net Fundings

Fundings

Repayments

(a)

Blackstone Mortgage Trust

5

Portfolio Composition

$15.8

billion

portfolio

(a)

comprised

of

124

assets

secured

by

institutional

quality

real

estate,

with

71%

in

gateway

markets

High

quality

100%

performing

portfolio

with

low

weighted

average

LTV

(a)(b)

of

63%

Major Market Focus

(a)

Collateral Diversification

(a)

(a)

Includes $406 million of Non-Consolidated Senior Interests and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $97 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)

63%

Condo

47%

22%

14%

4%

2%

2%

1%

8%

Self-Storage

Retail

Industrial

Office

Hotel

Other

Multi

$15.8B

portfolio

ES

7%

AU

2%

HI

4%

U.K.

10%

States that comprise less than 1% of total loan portfolio

DEU

2%

IL

6%

1%

CAN

OH

1%

MI

1%

NY

24%

MA

1%

NJ

1%

1%

WA

FL

4%

GA

3%

DC

2%

NC

1%

TN

1%

NV

2%

TX

2%

CO

1%

1%

AZ

CA

16%

VA

6%

Blackstone Mortgage Trust

6

Capitalization

Entered

into

a

$500

million

senior

secured

term

loan

B

at

L+2.50%

with

a

7-year

term

$311

million

of

equity

raised

at

1.32x

P/B

resulting

in

$0.52

per

share

of

book

value

accretion

$10.9

billion

of

outstanding

asset-level

financing

on

a

market-leading,

match-funded

basis

(a)

Includes $1.3 billion of consolidated securitized debt obligations 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 $406 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, secured term loans, and convertible notes, less cash, to (ii) total equity.

($ in billions)

Financing

(Outstanding Balance)

Credit Facilities

11 Credit Providers

Corporate Debt

Term Loan and Convertible Notes

Corporate Obligations

Senior Loan

Interests

(b)

$8.3

$1.1

$0.4

$9.4

Securitized

Debt

(a)

$2.2

CLO and Single Asset Securitization

2.5x

Debt-to-Equity

Ratio

(c)

Senior Syndications

Blackstone Mortgage Trust

7

97%

3%

Interest Rates

Floating

rate

assets

and

matched

liabilities

support

book

value

and

earnings

stability

LIBOR

floors

in

certain

loans

mitigate

the

impact

of

potential

rate

declines

(a)

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

fees, on U.S. dollar denominated portfolio. See Appendix for important disclosures.

(b)

Includes $406 million of Non-Consolidated Senior Interests and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $97 million subordinate risk retention interest.

Sensitivity

to

USD

LIBOR

(a)

(Quarterly Earnings per Share)

Portfolio Fixed vs. Floating

(b)

(% of Total Investment Exposure)

Floating

Fixed

-2.00%

-1.50%

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

Change in USD LIBOR

Floors Protect Against

USD LIBOR Declines

$0.00

+$0.03

+$0.05

+$0.08

+$0.10

($0.02)

($0.03)

($0.02)

($0.01)

Appendix

Blackstone Mortgage Trust

9

1Q'19 Loans

Outstanding

Fundings

Repayments

2Q'19 Loans

Outstanding

GAAP Net

Income

Adjustments

Core

Earnings

Interest Income

223.4

$  

$—

223.4

$  

Interest Expense

(116.9)

—

(116.9)

Management and

Incentive Fees

(21.0)

—

(21.0)

General and Administrative

Expenses

(2.1)

—

(2.1)

Non-Cash

Compensation

(7.8)

7.8

—

Hedging and Foreign

Currency Income, net

(a)

—

3.2

3.2

Net Income Attributable to

Non-controlling Interests

(0.4)

—

(0.4)

Total

75.2

$   

11.0

$    

86.2

$   

Appendix –

Second Quarter 2019 Operating Results & Net Fundings

Net Fundings

(b)

($ in billions)

Operating Results

($ in millions)

$15.8

$16.1

($1.4)

(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.

(c)

Includes $450 million and $406 million of Non-Consolidated Senior Interests as of March 31, 2019 and June 30, 2019, respectively, and investment exposure to the $1.0 billion 2018 Single Asset

Securitization through a subordinate risk retention interest with an outstanding face amount of $99 million and $97 million as of March 31, 2019 and June 30, 2019, respectively.

$0.68

Core Earnings per Share

$0.59

Net Income per Share

$1.1

(c)

(c)

Blackstone Mortgage Trust

10

Portfolio Details

($ in millions)

(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

June 30, 2019, two loans in the portfolio have been financed with an aggregate $406 million of Non-Consolidated Senior Interests, which are included in the table above.

(c)

Portfolio excludes our $97 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. The weighted-average cash coupon and all-in yield are expressed in terms excluding the relevant floating benchmark rates as of June 30, 2019.

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

$  1,063

$  1,063

$  1,058

L + 3.15

%

L + 3.40

%

3/15/2023

Diversified - Spain

Mixed-Use

n/a

71 %

Loan 2

Senior loan

5/11/2017

753

696

693

L + 3.40

%

L + 3.60

%

6/10/2023

Washington DC

Office

$340 / sqft

62 %

Loan 3

Senior loan

(b)

8/6/2015

469

469

85

5.75

%

5.77

%

10/29/2022

Diversified - EUR

Other

n/a

71 %

Loan 4

Senior loan

5/1/2015

355

342

342

L + 2.85

%

L + 3.02

%

5/1/2023

New York

Office

$434 / sqft

68 %

Loan 5

Senior loan

1/7/2015

350

331

331

L + 2.50

%

L + 2.76

%

1/9/2021

New York

Office

$283 / sqft

53 %

Loan 6

Senior loan

2/13/2018

330

328

327

L + 3.42

%

L + 3.52

%

3/9/2023

New York

Multi

$793,303 / unit

62 %

Loan 7

Senior loan

10/23/2018

352

323

321

L + 3.40

%

L + 3.72

%

10/23/2021

New York

Mixed-Use

$293 / sqft

65 %

Loan 8

Senior loan

3/31/2017

339

314

312

L + 3.50

%

L + 3.87

%

8/9/2023

Maui

Hotel

$414,267 /  key

61 %

Loan 9

Senior loan

1/11/2019

305

305

301

L + 4.35

%

L + 4.70

%

1/11/2026

Diversified - UK

Other

$147 / sqft

66 %

Loan 10

Senior loan

11/30/2018

291

276

273

L + 2.83

%

L + 3.20

%

12/9/2023

New York

Hotel

$225,514 /  key

73 %

Loan 11

Senior loan

11/30/2018

254

247

245

L + 2.80

%

L + 3.17

%

12/9/2023

San Francisco

Hotel

$363,291 /  key

73 %

Loan 12

Senior loan

12/11/2018

310

241

239

L + 2.55

%

L + 2.96

%

12/9/2023

Chicago

Office

$203 / sqft

78 %

Loan 13

Senior loan

8/3/2016

276

240

240

L + 4.66

%

L + 5.32

%

8/9/2021

New York

Office

$330 / sqft

57 %

Loan 14

Senior loan

12/22/2017

225

225

224

L + 2.80

%

L + 3.16

%

1/9/2023

Chicago

Multi

$326,087 / unit

65 %

Loan 15

Senior loan

5/9/2018

219

219

218

L + 2.60

%

L + 2.87

%

5/9/2023

New York

Industrial

$62 / sqft

70 %

Loans 16 - 123

Senior loans

Various

12,150

9,160

9,073

L + 3.45

%

(e)

L + 3.84

%

(e)

Various

Various

Various

Various

62 %

Total/Wtd. avg.

$  18,042

$  14,779

$  14,281

L + 3.42

%

(e)

L + 3.76

%

(e)

3.7 yrs

64 %

Cash

All-in

Coupon

Yield

Blackstone Mortgage Trust

11

Consolidated Balance Sheets

($ in thousands, except per share data)

June 30, 2019

December 31, 2018

Assets

Cash and cash equivalents

80,584

$                    

105,662

$                 

Loans receivable, net

14,280,919

14,191,200

Other assets

203,501

170,513

Total assets

14,565,004

$            

14,467,375

$            

Liabilities and equity

Secured debt agreements, net

8,257,370

$              

8,974,756

$              

Loan participations sold, net

—

94,418

Securitized debt obligations, net

1,287,364

1,285,471

Secured term loans, net

491,598

—

Convertible notes, net

611,472

609,911

Other liabilities

140,775

128,212

Total liabilities

10,788,579

11,092,768

Commitments and contingencies

—

—

Equity

Class A common stock, $0.01 par value

1,343

1,234

Additional paid-in capital

4,354,571

3,966,540

Accumulated other comprehensive loss

(29,420)

(34,222)

Accumulated deficit

(579,131)

(569,428)

Total Blackstone Mortgage Trust, Inc. stockholders' equity

3,747,363

3,364,124

Non-controlling interests

29,062

10,483

Total equity

3,776,425

3,374,607

Total liabilities and equity

14,565,004

$            

14,467,375

$            

Blackstone Mortgage Trust

12

Consolidated Statements of Operations

($ in thousands, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Income from loans and other investments

Interest and related income

223,369

$         

191,479

$         

448,128

$         

346,904

$         

Less: Interest and related expenses

116,891

87,733

235,579

157,722

Income from loans and other investments, net

106,478

103,746

212,549

189,182

Other expenses

Management and incentive fees

20,984

22,388

40,774

37,880

General and administrative expenses

9,897

8,747

19,210

17,454

Total other expenses

30,881

31,135

59,984

55,334

Income before income taxes

75,597

72,611

152,565

133,848

Income tax provision

46

104

147

224

Net income

75,551

$           

72,507

$           

152,418

$         

133,624

$         

Net income attributable to non-controlling interests

(377)

(195)

(680)

(353)

Net income attributable to Blackstone Mortgage Trust, Inc.

75,174

$           

72,312

$           

151,738

$         

133,271

$         

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

126,475,244

109,069,078

125,410,064

108,735,193

Net income per share of common stock

0.59

$                

0.66

$                

1.21

$                

1.23

$                

Blackstone Mortgage Trust

13

Per Share Calculations

(a)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(b)

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

June 30, 2019

March 31, 2019

Net income

(a)

75,174

$                   

76,565

$                     

Non-cash compensation expense

7,754

7,768

Hedging and foreign currency income, net

(b)

3,237

3,271

Other items

58

95

Core Earnings

86,223

$                   

87,699

$                     

Weighted-average shares outstanding, basic and diluted

126,475

124,333

Core Earnings per share, basic and diluted

0.68

$                       

0.71

$                           

Three Months Ended

June 30, 2019

March 31, 2019

Stockholders’ equity

3,747,363

$             

3,439,398

$               

Shares

Class A common stock

134,288

125,667

Deferred stock units

245

237

Total outstanding

134,533

125,904

Book value per share

27.85

$                     

27.32

$                         

Three Months Ended

June 30, 2019

March 31, 2019

Net income

(a)

75,174

$                   

76,565

$                     

Weighted-average shares outstanding, basic and diluted

126,475

124,333

Earnings per share, basic and diluted

0.59

$                       

0.62

$                           

Blackstone Mortgage Trust

14

Reconciliation of Net Income to Core Earnings

(a)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(b)

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)

LTM Ended

Jun 30,

2019

Jun 30,

2019

Mar 31,

2019

Dec 31,

2018

Sept 30,

2018

Net income

(a)

303,547

$       

75,174

$          

76,565

$      

73,643

$      

78,165

$      

Non-cash compensation expense

29,922

7,754

7,768

7,666

6,734

Hedging and foreign currency income, net

(b)

10,380

3,237

3,271

1,942

1,930

Other items

1,137

58

95

394

590

Core Earnings

344,986

$       

86,223

$          

87,699

$      

83,645

$      

87,419

$      

Weighted-average shares outstanding, basic and diluted

122,126

126,475

124,333

121,588

116,203

Net income per share, basic and diluted

2.49

$              

0.59

$               

0.62

$           

0.61

$           

0.67

$           

Core Earnings

per share, basic and diluted

2.83

$              

0.68

$               

0.71

$           

0.69

$           

0.75

$           

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

June

30,

2019.

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,

2018,

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.