ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to |
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered | ||
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☒ |
Accelerated filer |
☐ | |||
Non-accelerated filer |
☐ |
Smaller reporting company |
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Emerging growth company |
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Page |
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ITEM 1. |
1 |
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ITEM 1A. |
9 |
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ITEM 1B. |
60 |
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ITEM 2. |
60 |
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ITEM 3. |
60 |
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ITEM 4. |
60 |
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ITEM 5. |
61 |
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ITEM 6. |
62 |
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ITEM 7. |
63 |
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ITEM 7A. |
87 |
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ITEM 8. |
89 |
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ITEM 9. |
89 |
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ITEM 9A. |
89 |
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ITEM 9B. |
90 |
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ITEM 10. |
91 |
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ITEM 11. |
91 |
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ITEM 12. |
91 |
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ITEM 13. |
91 |
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ITEM 14. |
91 |
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ITEM 15. |
92 |
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ITEM 16. |
100 |
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101 |
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F- 1 |
ITEM 1. |
BUSINESS |
Total Investment Exposure |
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Balance Sheet Portfolio (1) |
Loan Exposure (1)(2) |
Other Investments (3) |
Total Investment Portfolio |
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Number of investments |
128 |
128 |
1 |
129 |
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Principal balance |
$ | 16,277,343 |
$ | 16,965,864 |
$ | 930,021 |
$ | 17,895,885 |
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Net book value |
$ | 16,164,801 |
$ | 16,164,801 |
$ | 86,638 |
$ | 16,251,439 |
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Unfunded loan commitments (4) |
$ | 3,911,868 |
$ | 4,662,169 |
$ | — |
$ | 4,662,169 |
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Weighted-average cash coupon (5) |
L + 3.20 |
% | L + 3.25 |
% | L + 2.75 |
% | L + 3.22 |
% | ||||||||||
Weighted-average all-in yield(5) |
L + 3.55 |
% | L + 3.59 |
% | L + 3.00 |
% | L + 3.56 |
% | ||||||||||
Weighted-average maximum maturity (years) (6) |
3.8 |
3.8 |
5.4 |
3.9 |
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Loan to value (LTV) (7) |
64.8 |
% | 64.9 |
% | 42.6 |
% | 63.7 |
% |
(1) | Excludes investment exposure to the $89.0 million subordinate risk retention interest we own in the $930.0 million single asset securitization vehicle, or the 2018 Single Asset Securitization. Refer to Notes 4 and 16 to our consolidated financial statements for further discussion of the 2018 Single Asset Securitization. |
(2) | 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. Total loan exposure encompasses the entire loan we originated and financed, including $688.5 million of such non-consolidated senior interests that are not included in our balance sheet portfolio. |
(3) | Includes investment exposure to the $930.0 million 2018 Single Asset Securitization. We do not consolidate the 2018 Single Asset Securitization on our consolidated financial statements, and instead reflect our $89.0 million subordinate risk retention investment as a component of other assets on our consolidated balance sheet. Refer to Notes 4 and 16 to our consolidated financial statements for further discussion of the 2018 Single Asset Securitization. |
(4) | Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date. |
(5) | The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR, as applicable to each loan. As of December 31, 2019, 97% of our loans by total loan exposure earned a floating rate of interest, primarily indexed to USD LIBOR, and $6.1 billion of such loans earned interest based on floors that are above the applicable index. The other 3% of our loans earned a fixed rate of interest, which we reflect as a spread over the relevant floating benchmark rates, as of December 31, 2019, for purposes of the weighted-averages. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. |
(6) | Maximum maturity assumes all extension options are exercised by the borrower, however our loans and other investments may be repaid prior to such date. As of December 31, 2019, 59% of our loans and other investments were subject to yield maintenance or other prepayment restrictions and 41% were open to repayment by the borrower without penalty. |
(7) | Based on LTV as of the dates loans and other investments were originated or acquired by us. |
Portfolio Financing Outstanding Principal Balance |
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December 31, 2019 |
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Credit facilities |
$ | 9,753,059 |
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Asset-specific financings |
330,879 |
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Non-consolidated senior interests(1) |
688,521 |
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Securitized debt obligations |
1,189,642 |
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Total portfolio financing |
$ | 11,962,101 |
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(1) | These non-consolidated senior interests provide structural leverage for our net investments which are reflected in the form of mezzanine loans or other subordinate interests on our balance sheet and in our results of operations. |
• | our Manager shall seek to invest our capital in a broad range of investments in, or relating to, public and/or private debt, non-controlling equity, loans and/or other interests (including “mezzanine” interests and/or options or derivatives related thereto) relating to real estate assets (including pools thereof), real estate companies, and/or real estate-related holdings; |
• | prior to the deployment of capital into investments, our Manager may cause our capital to be invested in any short-term investments in money market funds, bank accounts, overnight repurchase agreements |
with primary federal reserve bank dealers collateralized by direct U.S. government obligations and other instruments or investments reasonably determined by our Manager to be of high quality; |
• | not more than 25% of our equity, as defined in the Management Agreement with our Manager, will be invested in any individual investment without the approval of a majority of the investment risk management committee of our board of directors (it being understood, however, that for purposes of the foregoing concentration limit, in the case of any investment that is comprised (whether through a structured investment vehicle or other arrangement) of securities, instruments or assets of multiple portfolio issuers, such investment for purposes of the foregoing limitation shall be deemed to be multiple investments in such underlying securities, instruments and assets and not such particular vehicle, product or other arrangement in which they are aggregated); |
• | any investment in excess of $350.0 million shall require the approval of a majority of the investment risk management committee of our board of directors; |
• | no investment shall be made that would cause us to fail to qualify as a REIT under the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code; and |
• | no investment shall be made that would cause us or any of our subsidiaries to be regulated as an investment company under the Investment Company Act. |
ITEM 1A. |
RISK FACTORS |
• | the general political, economic, capital markets and competitive conditions in the United States and foreign jurisdictions where we invest; |
• | the level and volatility of prevailing interest rates and credit spreads; |
• | adverse changes in the real estate and real estate capital markets; |
• | difficulty in obtaining financing or raising capital; |
• | reductions in the yield on our investments and increases in the cost of our financing; |
• | defaults by borrowers in paying debt service on outstanding indebtedness; |
• | increased competition from entities engaged in mortgage lending and, or investing in our target assets; |
• | adverse legislative or regulatory developments, including with respect to tax laws; |
• | acts of God such as hurricanes, earthquakes and other natural disasters, acts of war and/or terrorism and other events that may cause unanticipated and uninsured performance declines and/or losses to us or the owners and operators of the real estate securing our investments; |
• | deterioration in the performance of properties securing our investments that may cause deterioration in the performance of our investments and, potentially, principal losses to us; |
• | adverse developments in the availability of desirable investment opportunities whether they are due to competition, regulation or otherwise; |
• | difficulty in redeploying the proceeds from repayments of our existing investments; |
• | difficulty in successfully managing our growth, including integrating new assets into our existing systems; |
• | authoritative generally accepted accounting principles, or GAAP, or policy changes from such standard-setting bodies such as the Financial Accounting Standards Board, or FASB, the SEC, the Internal Revenue Service, or IRS, the New York Stock Exchange, or NYSE, and other authorities that we are subject to, as well as their counterparts in any foreign jurisdictions where we might do business; and |
• | other factors, including those items discussed in the risk factors set forth below. |
• | tenant mix and tenant bankruptcies; |
• | success of tenant businesses; |
• | property management decisions, including with respect to capital improvements, particularly in older building structures; |
• | property location and condition; |
• | competition from other properties offering the same or similar services; |
• | changes in laws that increase operating expenses or limit rents that may be charged; |
• | any liabilities relating to environmental matters at the property; |
• | changes in global, national, regional, or local economic conditions and/or specific industry segments; |
• | global trade disruption, significant introductions of trade barriers and bilateral trade frictions; |
• | declines in global, national, regional or local real estate values; |
• | declines in global, national, regional or local rental or occupancy rates; |
• | changes in interest rates, foreign exchange rates, and in the state of the credit and securitization markets and the debt and equity capital markets, including diminished availability or lack of debt financing for commercial real estate; |
• | changes in real estate tax rates, tax credits and other operating expenses; |
• | changes in governmental rules, regulations and fiscal policies, including income tax regulations and environmental legislation; |
• | acts of God, terrorism, social unrest and civil disturbances, which may decrease the availability of or increase the cost of insurance or result in uninsured losses; and |
• | adverse changes in zoning laws. |
• | acquire investments subject to rights of senior classes, special servicers or collateral managers under intercreditor, servicing agreements or securitization documents; |
• | pledge our investments as collateral for financing arrangements; |
• | acquire only a minority and/or a non-controlling participation in an underlying investment; |
• | co-invest with others through partnerships, joint ventures or other entities, thereby acquiring non-controlling interests; or |
• | rely on independent third party management or servicing with respect to the management of an asset. |
• | currency exchange matters, including fluctuations in currency exchange rates and costs associated with conversion of investment principal and income from one currency into another, which may have an adverse impact on the valuation of our assets or income, including for purposes of our REIT requirements; |
• | less developed or efficient financial markets than in the United States, which may lead to potential price volatility and relative illiquidity; |
• | the burdens of complying with international regulatory requirements, including the requirements imposed by exchanges on which our international affiliates list debt securities issued in connection with the financing of our loans or investments involving international real-estate related assets, and prohibitions that differ between jurisdictions; |
• | changes in laws or clarifications to existing laws that could impact our tax treaty positions, which could adversely impact the returns on our investments; |
• | a less developed legal or regulatory environment, differences in the legal and regulatory environment or enhanced legal and regulatory compliance; |
• | political hostility to investments by foreign investors; |
• | higher rates of inflation; |
• | higher transaction costs; |
• | greater difficulty enforcing contractual obligations; |
• | fewer investor protections; |
• | certain economic and political risks, including potential exchange control regulations and restrictions on our non-U.S. investments and repatriation of profits from investments or of capital invested, the risks of political, economic or social instability, the possibility of expropriation or confiscatory taxation and adverse economic and political developments; and |
• | potentially adverse tax consequences. |
• | our cash flow from operations may be insufficient to make required payments of principal of and interest on our debt or we may fail to comply with covenants contained in our debt agreements, which is likely to result in (a) acceleration of such debt (and any other debt containing a cross-default or |
cross-acceleration provision), which we then may be unable to repay from internal funds or to refinance on favorable terms, or at all, (b) our inability to borrow undrawn amounts under our financing arrangements, even if we are current in payments on borrowings under those arrangements, which would result in a decrease in our liquidity, and/or (c) the loss of some or all of our collateral assets to foreclosure or sale; |
• | our debt may increase our vulnerability to adverse economic and industry conditions with no assurance that investment yields will increase in an amount sufficient to offset the higher financing costs; |
• | we may be required to dedicate a substantial portion of our cash flow from operations to payments on our debt, thereby reducing funds available for operations, future business opportunities, stockholder distributions or other purposes; and |
• | we may not be able to refinance any debt that matures prior to the maturity (or realization) of an underlying investment it was used to finance on favorable terms or at all. |
• | general economic or market conditions; |
• | the market’s view of the quality of our assets; |
• | the market’s perception of our growth potential; |
• | our current and potential future earnings and cash distributions; and |
• | the market price of the shares of our class A common stock. |
• | interest rate, currency and/or credit hedging can be expensive and may result in us generating less net income; |
• | available interest rate or currency hedges may not correspond directly with the interest rate or currency risk for which protection is sought; |
• | due to a credit loss, prepayment or asset sale, the duration of the hedge may not match the duration of the related asset or liability; |
• | the amount of income that a REIT may earn from hedging transactions (other than hedging transactions that satisfy certain requirements of the Internal Revenue Code or that are done through a TRS (as defined below)) to offset interest rate losses is limited by U.S. federal income tax provisions governing REITs; |
• | the credit quality of the hedging counterparty owing money on the hedge may be downgraded to such an extent that it impairs our ability to sell or assign our side of the hedging transaction; |
• | the hedging counterparty owing money in the hedging transaction may default on its obligation to pay; |
• | we may fail to recalculate, readjust and execute hedges in an efficient manner; and |
• | legal, tax and regulatory changes could occur and may adversely affect our ability to pursue our hedging strategies and/or increase the costs of implementing such strategies. |
• | Broad and Wide-Ranging Activities |
• | Blackstone’s Policies and Procedures non-public information with respect to companies that are clients of Blackstone or its affiliates, in which our Manager may be considering making an investment. As a consequence, that information, which could be of benefit to our Manager, might become restricted to those other businesses and otherwise be unavailable to our Manager, and could also restrict our Manager’s activities. Additionally, the terms of confidentiality or other agreements with or related to companies in which any investment vehicle of Blackstone has or has considered making an investment or which is otherwise a client of Blackstone and its affiliates may restrict or otherwise limit the ability of Blackstone or its affiliates, including our Manager, to engage in businesses or activities competitive with such companies. |
• | Allocation of Investment Opportunities co-investment vehicles, other entities formed in connection with Blackstone or its affiliates side-by-side or additional general partner investments with respect thereto, and portfolio companies/entities), which we refer to as the Blackstone Vehicles. The respective investment guidelines and programs of our business and the Blackstone Vehicles may or may not overlap, in whole or in part, and if there is any such overlap, investment opportunities will be allocated between us and the Blackstone Vehicles in a manner that may result in fewer investment opportunities being allocated to us than would have otherwise been the case in the absence of such Blackstone Vehicles. In particular, while our primary investment strategies differ from those of Blackstone’s latest flagship real estate debt fund, Blackstone Real Estate Debt Strategies III L.P. and related separately managed accounts, or |
BREDS III, and Blackstone Real Estate Income Trust, Inc., or BREIT, in that we generally seek to invest primarily in senior mortgage loans and other similar interests, BREDS III generally seeks to invest primarily in junior mortgage debt and mezzanine debt and with respect to debt investments BREIT generally seeks to invest primarily in senior mezzanine debt, a significant portion of the capital of BREDS III and BREIT (and/or other Blackstone Vehicles) may nonetheless be invested in investments that would also be appropriate for us. The allocation methodology applied between us and one or more of the Blackstone Vehicles may result in us not participating (and/or not participating to the same extent) in certain investment opportunities in which we would have otherwise participated had the related allocations been determined without regard to such guidelines and/or based only on the circumstances of those particular investments. Our Manager, Blackstone or their affiliates may also give advice to the Blackstone Vehicles that may differ from advice given to us even though their investment objectives may be the same or similar to ours. |
• | Investments in Different Levels or Classes of an Issuer’s Securities non-controlling interest in any such investment and a forbearance of rights, including |
certain non-economic rights, relating to the Blackstone Vehicles, such as where Blackstone may cause us to decline to exercise certain control- and/or foreclosure-related rights with respect to a portfolio entity (including following the vote of other third party lenders generally or otherwise recusing itself with respect to decisions), including with respect to defaults, foreclosures, workouts, restructurings and/or exit opportunities, subject to certain limitations. Our Management Agreement requires our Manager to keep our board of directors reasonably informed on a periodic basis in connection with the foregoing, including with respect to transactions that involve investments at different levels of an issuer’s or borrower’s capital structure, as to which our Manager has agreed to provide our board of directors with quarterly updates. We currently hold mortgage and mezzanine loans and other investments in which Blackstone affiliates have interests in the collateral securing or backing such investments. While Blackstone will seek to resolve any conflicts in a fair and equitable manner with respect to conflicts resolution among the Blackstone Vehicles generally, such transactions are not required to be presented to our board of directors for approval, and there can be no assurance that any conflicts will be resolved in our favor. |
• | Assignment and Sharing or Limitation of Rights non-controlling interest in any such investment and a forbearance of our rights, including certain non-economic rights (including following the vote of other third party lenders generally or otherwise being recused with respect to certain decisions, including with respect to defaults, foreclosures, workouts, restructurings and/or exit opportunities), subject to certain limitations. While it is expected that our participation in connection with any such investments and transactions would be negotiated by third parties on market prices, such investments and transactions will give rise to potential or actual conflicts of interest. We cannot make assurances that any such conflict will be resolved in our favor. To the extent we hold an interest in a loan or security that is different (including with respect to their relative seniority) than those held by such other Blackstone Vehicles (and vice versa), our Manager and its affiliates may be presented and/or may have limited or no rights with respect to decisions when the interests of the funds/vehicles are in conflict. Such sharing or assignment of rights could make it more difficult for us to protect our interests and could give rise to a conflict (which may be exacerbated in the case of financial distress) and could result in another Blackstone Vehicle exercising such rights in a way adverse to us. |
• | Providing Debt Financings in connection with Assets Owned by Other Blackstone Vehicles |
Vehicles and/or the relevant portfolio entity, which will give rise to potential or actual conflicts of interests and which may adversely impact us. |
• | Obtaining Financing from Other Blackstone Vehicles |
• | Pursuit of Differing Strategies |
• | Variation in Financial and Other Benefits |
• | Underwriting, Advisory and Other Relationships “lock-up” period |
following the offering under applicable regulations during which time our ability to sell any securities that we continue to hold is restricted. This may prejudice our ability to dispose of such securities at an opportune time. |
• | Service Providers co-investors or commercial counterparties. Such relationships may influence our Manager in deciding whether to select such service provider. In certain circumstances, service providers, or their affiliates, may charge different rates (including below-market rates or at no cost) or have different arrangements for services provided to Blackstone or its affiliates as compared to services provided to us, which in certain circumstances may result in more favorable rates or arrangements than those payable by us. In addition, in instances where multiple Blackstone businesses may be exploring a potential individual investment, certain of these service providers may choose to be engaged by other Blackstone affiliates rather than us. |
• | Material, Non-Public Information non-public information with respect to an issuer in which we have invested or may invest. Should this occur, our Manager may be restricted from buying or selling securities, derivatives or loans of the issuer on our behalf until such time as the information becomes public or is no longer deemed material. Disclosure of such information to the personnel responsible for management of our business may be on a need-to-know basis only, and we may not be free to act upon any such information. Therefore, we and/or our Manager may not have access to material non-public information in the possession of Blackstone which might be relevant to an investment decision to be made by our Manager on our behalf, and our Manager may initiate a transaction or purchase or sell an investment which, if such information had been known to it, may not have been undertaken. Due to these restrictions, our Manager may not be able to initiate a transaction on our behalf that it otherwise might have initiated and may not be able to purchase or sell an investment that it otherwise might have purchased or sold, which could negatively affect our operations. |
• | Possible Future Activities |
• | Transactions with Blackstone Vehicles |
• | Loan Refinancings |
• | Other Affiliate Transactions |
• | Family Relationships |
• | we would be taxed as a regular domestic corporation, which under current laws, among other things, means being unable to deduct distributions to stockholders in computing taxable income and being subject to federal income tax on our taxable income at regular corporate income tax rates; |
• | any resulting tax liability could be substantial and could have a material adverse effect on our book value; |
• | unless we were entitled to relief under applicable statutory provisions, we would be required to pay taxes, and therefore, our cash available for distribution to stockholders would be reduced for each of the years during which we did not qualify as a REIT and for which we had taxable income; and |
• | we generally would not be eligible to requalify as a REIT for the subsequent four full taxable years. |
• | our actual or projected operating results, financial condition, cash flows and liquidity, or changes in business strategy or prospects; |
• | actual or perceived conflicts of interest with our Manager or other affiliates of Blackstone and individuals, including our executives; |
• | equity issuances by us, or share resales by our stockholders, or the perception that such issuances or resales may occur; |
• | loss of a major funding source; |
• | actual or anticipated accounting problems; |
• | publication of research reports about us or the real estate industry; |
• | changes in market valuations of similar companies; |
• | adverse market reaction to the level of leverage we employ; |
• | additions to or departures of our Manager’s or Blackstone’s key personnel; |
• | speculation in the press or investment community; |
• | our failure to meet, or the lowering of, our earnings estimates or those of any securities analysts; |
• | increases in market interest rates, which may lead investors to demand a higher distribution yield for our class A common stock, and would result in increased interest expenses on our debt; |
• | a compression of the yield on our investments and an increase in the cost of our liabilities; |
• | failure to maintain our REIT qualification or exclusion from Investment Company Act regulation; |
• | price and volume fluctuations in the overall stock market from time to time; |
• | general market and economic conditions, and trends including inflationary concerns, and the current state of the credit and capital markets; |
• | significant volatility in the market price and trading volume of securities of publicly traded REITs or other companies in our sector, including us, which is not necessarily related to the operating performance of these companies; |
• | changes in law, regulatory policies or tax guidelines, or interpretations thereof, particularly with respect to REITs; |
• | changes in the value of our portfolio; |
• | any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts; |
• | operating performance of companies comparable to us; |
• | short-selling pressure with respect to shares of our class A common stock or REITs generally; and |
• | uncertainty surrounding the strength of the U.S. economy particularly in light of budget deficit concerns and other U.S. and international political and economic affairs. |
• | 80% of the votes entitled to be cast by stockholders; and |
• | two-thirds of the votes entitled to be cast by stockholders other than the interested stockholder and affiliates and associates thereof. |
• | our ability to make profitable investments; |
• | margin calls or other expenses that reduce our cash flow; |
• | defaults in our asset portfolio or decreases in the value of our portfolio; and |
• | the fact that anticipated operating expense levels may not prove accurate, as actual results may vary from estimates. |
ITEM 1B. |
UNRESOLVED STAFF COMMENTS |
ITEM 2. |
PROPERTIES |
ITEM 3. |
LEGAL PROCEEDINGS |
ITEM 4. |
MINE SAFETY DISCLOSURES |
ITEM 5. |
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
ITEM 6. |
SELECTED FINANCIAL DATA |
Years ended December 31, |
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(in thousands, except per share data) |
2019 |
2018 |
2017 |
2016 |
2015 |
|||||||||||||||
Operating Data: |
||||||||||||||||||||
Interest and related income |
$ | 882,679 |
$ | 756,109 |
$ | 537,915 |
$ | 497,974 |
$ | 410,635 |
||||||||||
Interest and related expense |
458,503 |
359,625 |
234,870 |
184,270 |
152,416 |
|||||||||||||||
Income from loans and other investments, net |
$ | 424,176 |
$ | 396,484 |
$ | 303,045 |
$ | 313,704 |
$ | 258,219 |
||||||||||
Net income |
$ | 307,393 |
$ | 285,813 |
$ | 217,968 |
$ | 246,440 |
$ | 211,885 |
||||||||||
Net income attributable to Blackstone Mortgage Trust, Inc. |
$ | 305,567 |
$ | 285,078 |
$ | 217,631 |
$ | 238,297 |
$ | 196,829 |
||||||||||
Per Share Data: |
||||||||||||||||||||
Net income from continuing operations per share of common stock |
||||||||||||||||||||
Basic and diluted |
$ | 2.35 |
$ | 2.50 |
$ | 2.27 |
$ | 2.53 |
$ | 2.41 |
||||||||||
Net income per share of common stock |
||||||||||||||||||||
Basic and diluted |
$ | 2.35 |
$ | 2.50 |
$ | 2.27 |
$ | 2.53 |
$ | 2.41 |
||||||||||
Dividends declared per share of common stock |
$ | 2.48 |
$ | 2.48 |
$ | 2.48 |
$ | 2.48 |
$ | 2.28 |
||||||||||
As of December 31, |
||||||||||||||||||||
2019 |
2018 |
2017 |
2016 |
2015 |
||||||||||||||||
Balance Sheet Data: |
||||||||||||||||||||
Total assets |
$ | 16,551,871 |
$ | 14,467,375 |
$ | 10,258,825 |
$ | 8,812,615 |
$ | 9,376,573 |
||||||||||
Secured debt agreements, net |
10,054,930 |
8,974,756 |
5,273,855 |
5,716,354 |
6,116,105 |
|||||||||||||||
Secured term loan, net |
736,142 |
— |
— |
— |
— |
|||||||||||||||
Convertible notes, net |
613,071 |
609,911 |
563,911 |
166,762 |
164,026 |
|||||||||||||||
Total liabilities |
12,767,190 |
11,092,768 |
7,341,419 |
6,319,012 |
6,870,842 |
|||||||||||||||
Total equity |
3,784,681 |
3,374,607 |
2,917,406 |
2,493,603 |
2,505,731 |
ITEM 7. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Net income of $305.6 million, or $2.35 per share, and Core Earnings of $350.7 million, or $2.70 per share. |
• | Increased our book value per share to $27.82, an increase of $0.62 during the year. |
• | Loan originations and acquisitions totaled $8.6 billion during 2019, with an average loan size for directly originated loans of $231.9 million. |
• | Portfolio of 129 investments as of December 31, 2019, with a weighted-average origination loan-to-value ratio of 63.7% and weighted-average all-in yield of L+3.56%. |
• | Issued an aggregate 10.5 million shares of our class A common stock through a combination of an underwritten public offering and our at-the-market program, generating aggregate net proceeds of $372.3 million. |
• | Entered into a $750.0 million senior secured term loan facility that bears interest at a rate of L+2.25% per annum. |
• | Financing capacity of $20.1 billion as of December 31, 2019, which includes credit facilities with 12 credit providers, as well as various asset-specific financings, securitized debt obligations, and senior loan interests, providing stable, non-capital markets-based mark-to-market financings. |
Three Months Ended December 31, 2019 |
Year Ended December 31, |
|||||||||||
2019 |
2018 |
|||||||||||
Net income (1) |
$ | 78,931 |
$ | 305,567 |
$ | 285,078 |
||||||
Weighted-average shares outstanding, basic and diluted |
134,832,323 |
130,085,398 |
113,857,238 |
|||||||||
Net income per share, basic and diluted |
$ | 0.59 |
$ | 2.35 |
$ | 2.50 |
||||||
Dividends declared per share |
$ | 0.62 |
$ | 2.48 |
$ | 2.48 |
||||||
(1) | Represents net income attributable to Blackstone Mortgage Trust. |
Three Months Ended December 31, 2019 |
Year Ended December 31, |
|||||||||||
2019 |
2018 |
|||||||||||
Net income (1) |
$ | 78,931 |
$ | 305,567 |
$ | 285,078 |
||||||
Non-cash compensation expense |
7,380 |
30,656 |
28,154 |
|||||||||
GE purchase discount accretion adjustment (2) |
— |
— |
8,706 |
|||||||||
Hedging and foreign currency income, net (3) |
4,767 |
14,172 |
6,723 |
|||||||||
Other items |
68 |
300 |
2,084 |
|||||||||
Core Earnings |
$ | 91,146 |
$ | 350,695 |
$ | 330,745 |
||||||
Weighted-average shares outstanding, basic and diluted |
134,832,323 |
130,085,398 |
113,857,238 |
|||||||||
Core Earnings per share, basic and diluted |
$ | 0.68 |
$ | 2.70 |
$ | 2.90 |
||||||
(1) | Represents net income attributable to Blackstone Mortgage Trust. |
(2) | Historically, we have deferred in Core Earnings the accretion of a purchase discount attributable to a certain pool of GE portfolio loans acquired in May 2015, until repayment in full of the remaining loans in the pool was substantially assured. During the year ended December 31, 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 year ended December 31, 2018. |
(3) | 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. |
December 31, 2019 |
December 31, 2018 |
|||||||
Stockholders’ equity |
$ | 3,762,583 |
$ | 3,364,124 |
||||
Shares |
||||||||
Class A common stock |
135,003,662 |
123,435,738 |
||||||
Deferred stock units |
260,066 |
228,839 |
||||||
Total outstanding |
135,263,728 |
123,664,577 |
||||||
Book value per share |
$ | 27.82 |
$ | 27.20 |
||||
Three Months Ended December 31, 2019 |
Year Ended December 31, 2019 |
|||||||
Loan originations (1) |
$ | 3,005,921 |
$ | 8,643,911 |
||||
Loan fundings (2) |
$ | 3,596,836 |
$ | 6,952,638 |
||||
Loan repayments (3) |
(2,234,719 |
) | (4,810,811 |
) | ||||
Total net fundings |
$ | 1,362,117 |
$ | 2,141,827 |
||||
(1) | Includes new loan originations and additional commitments made under existing loans. |
(2) | Loan fundings during the three months and year ended December 31, 2019 include $26.1 million and $62.4 million, respectively, of additional fundings under related non-consolidated senior interests. |
(3) | Loan repayments during the year ended December 31, 2019 include $61.1 million of additional repayments of loan exposure under related non-consolidated senior interests. There were no repayments during the three months ended December 31, 2019 related to non-consolidated senior interests. |
Total Investment Exposure |
||||||||||||||||||||
Balance Sheet Portfolio (1) |
Loan Exposure (1)(2) |
Other Investments (3) |
|
Total Investment Portfolio |
||||||||||||||||
Number of investments |
128 |
128 |
1 |
129 |
||||||||||||||||
Principal balance |
$ | 16,277,343 |
$ | 16,965,864 |
$ | 930,021 |
|
$ | 17,895,885 |
|||||||||||
Net book value |
$ | 16,164,801 |
$ | 16,164,801 |
$ | 86,638 |
$ | 16,251,439 |
||||||||||||
Unfunded loan commitments (4) |
$ | 3,911,868 |
$ | 4,662,169 |
$ | — |
$ | 4,662,169 |
||||||||||||
Weighted-average cash coupon (5) |
L + 3.20 |
% | L + 3.25 |
% | L + 2.75 |
% | L + 3.22 |
% | ||||||||||||
Weighted-average all-in yield(5) |
L + 3.55 |
% | L + 3.59 |
% | L + 3.00 |
% | L + 3.56 |
% | ||||||||||||
Weighted-average maximum maturity (years) (6) |
3.8 |
3.8 |
5.4 |
3.9 |
||||||||||||||||
Loan to value (LTV) (7) |
64.8 |
% | 64.9 |
% | 42.6 |
% | 63.7 |
% |
(1) | Excludes investment exposure to the $89.0 million subordinate risk retention interest we own in the $930.0 million 2018 Single Asset Securitization. Refer to Notes 4 and 16 to our consolidated financial statements for further discussion of the 2018 Single Asset Securitization. |
(2) | 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. Total loan exposure encompasses the entire loan we originated and financed, including $688.5 million of such non-consolidated senior interests that are not included in our balance sheet portfolio. |
(3) | Includes investment exposure to the $930.0 million 2018 Single Asset Securitization. We do not consolidate the 2018 Single Asset Securitization on our consolidated financial statements, and instead reflect our $89.0 million subordinate risk retention investment as a component of other assets on our consolidated balance sheet. Refer to Notes 4 and 16 to our consolidated financial statements for further discussion of the 2018 Single Asset Securitization. |
(4) | Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date. |
(5) | The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR, as applicable to each loan. As of December 31, 2019, 97% of our loans by total loan exposure earned a floating rate of interest, primarily indexed to USD LIBOR, and $6.1 billion of such loans earned interest based on floors that are above the applicable index. The other 3% of our loans earned a fixed rate of interest, which we reflect as a spread over the relevant floating benchmark rates, as of December 31, 2019, for purposes of the weighted-averages. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. |
(6) | Maximum maturity assumes all extension options are exercised by the borrower, however our loans and other investments may be repaid prior to such date. As of December 31, 2019, 59% of our loans and other investments were subject to yield maintenance or other prepayment restrictions and 41% were open to repayment by the borrower without penalty. |
(7) | Based on LTV as of the dates loans and other investments were originated or acquired by us. |
Investment Count |
Currency |
Total Investment Portfolio |
Floating Rate Index (1) |
Cash Coupon (2) |
All-in Yield(2) |
|||||||||||||||||
103 |
$ |
$ 12,233,127 |
USD LIBOR |
L + 3.17% |
L + 3.52% |
|||||||||||||||||
7 |
€ |
€ 2,724,084 |
EURIBOR |
E + 2.91% |
E + 3.24% |
|||||||||||||||||
13 |
£ |
£ 1,635,759 |
GBP LIBOR |
L + 3.85% |
L + 4.15% |
|||||||||||||||||
3 |
A$ |
A$ 515,259 |
BBSY |
BBSY + 4.01% |
BBSY + 4.22% |
|||||||||||||||||
3 |
C$ |
C$ 101,261 |
CDOR |
CDOR + 3.27% |
CDOR + 3.59% |
|||||||||||||||||
129 |
$ 17,895,885 |
INDEX + 3.22% |
INDEX + 3.56% |
|||||||||||||||||||
(1) | We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S. dollar. We earn forward points on our forward contracts that reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. These forward contracts effectively convert the foreign currency rate exposure for such investments to USD LIBOR. |
(2) | The cash coupon and all-in yield of our fixed rate loans are reflected as a spread over USD LIBOR for purposes of the weighted-averages. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. |
December 31, 2019 |
||||||||||||
Risk Rating |
Number of Loans |
Net Book Value |
Total Loan Exposure (1)(2) |
|||||||||
1 |
6 |
$ | 376,379 |
$ | 378,427 |
|||||||
2 |
30 |
3,481,123 |
3,504,972 |
|||||||||
3 |
89 |
12,137,963 |
12,912,722 |
|||||||||
4 |
3 |
169,336 |
169,743 |
|||||||||
5 |
— |
— |
— |
|||||||||
128 |
$ | 16,164,801 |
$ | 16,965,864 |
||||||||
(1) | 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 to our consolidated financial statements for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $688.5 million of such non-consolidated senior interests as of December 31, 2019. |
(2) | Excludes investment exposure to the $930.0 million 2018 Single Asset Securitization. Refer to Notes 4 and 16 to our consolidated financial statements for details of the subordinated risk retention interest we own in the 2018 Single Asset Securitization. | |
Portfolio Financing Outstanding Principal Balance |
||||||||
December 31, 2019 |
December 31, 2018 |
|||||||
Secured credit facilities |
$ | 9,753,059 |
$ | 8,870,897 |
||||
Asset-specific financings |
330,879 |
81,739 |
||||||
Revolving credit agreement |
— |
43,845 |
||||||
Loan participations sold |
— |
94,528 |
||||||
Non-consolidated senior interests(1) |
688,521 |
446,874 |
||||||
Securitized debt obligations |
1,189,642 |
1,292,120 |
||||||
Total portfolio financing |
$ | 11,962,101 |
$ | 10,830,003 |
||||
(1) | These non-consolidated senior interests provide structural leverage for our net investments which are reflected in the form of mezzanine loans or other subordinate interests on our balance sheet and in our results of operations. |
December 31, 2019 |
||||||||||||||||
Credit Facility Borrowings |
Collateral Assets (2) |
|||||||||||||||
Lender |
Potential (1) |
Outstanding |
Available (1) |
|||||||||||||
Wells Fargo |
$ | 2,056,769 |
$ | 2,018,057 |
$ | 38,712 |
$ | 2,621,806 |
||||||||
Deutsche Bank |
2,037,795 |
1,971,860 |
65,935 |
2,573,447 |
||||||||||||
Barclays |
1,629,551 |
1,442,083 |
187,468 |
2,044,654 |
||||||||||||
Citibank |
1,159,888 |
1,109,837 |
50,051 |
1,473,745 |
||||||||||||
Bank of America |
603,660 |
513,660 |
90,000 |
775,678 |
||||||||||||
Morgan Stanley |
524,162 |
468,048 |
56,114 |
706,080 |
||||||||||||
Goldman Sachs |
474,338 |
450,000 |
24,338 |
632,013 |
||||||||||||
MetLife |
417,677 |
417,677 |
— |
536,553 |
||||||||||||
Société Générale |
333,473 |
333,473 |
— |
437,130 |
||||||||||||
US Bank – Multi. JV (3) |
279,838 |
279,552 |
286 |
350,034 |
||||||||||||
JP Morgan |
303,288 |
259,062 |
44,226 |
386,545 |
||||||||||||
Santander |
239,332 |
239,332 |
— |
299,597 |
||||||||||||
Goldman Sachs – Multi. JV (3) |
203,846 |
203,846 |
— |
261,461 |
||||||||||||
Bank of America – Multi. JV (3) |
46,572 |
46,572 |
— |
58,957 |
||||||||||||
$ | 10,310,189 |
$ | 9,753,059 |
$ | 557,130 |
$ | 13,157,700 |
|||||||||
(1) | Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility. |
(2) | Represents the principal balance of the collateral assets. |
(3) | These facilities finance the loan investments of our consolidated Multifamily Joint Venture. Refer to Note 2 to our consolidated financial statements for additional discussion of our Multifamily Joint Venture. |
December 31, 2019 |
||||||||||||||||||||||||
Asset-Specific Financings |
Count |
Principal Balance |
Book Value |
Wtd. Avg. Yield/Cost (1) |
Guarantee (2) |
Wtd. Avg. Term (3) |
||||||||||||||||||
Collateral assets |
4 |
$ | 429,983 |
$ | 417,820 |
L+4.90 |
% | n/a |
Mar. 2023 |
|||||||||||||||
Financing provided |
4 |
$ | 330,879 |
$ | 323,504 |
L+3.42 |
% | $ | 97,930 |
Mar. 2023 |
(1) | These floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs. |
(2) | Other than amounts guaranteed on an asset-by-asset basis, borrowings under our asset-specific financings are non-recourse to us. |
(3) | The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrower. Each of our asset-specific financings is term-matched to the corresponding collateral loans. |
December 31, 2019 |
||||||||||||||||||||||||
Non-Consolidated Senior Interests |
Count |
Principal Balance |
Book Value |
Wtd. Avg. Yield/Cost (1) |
Guarantee |
Wtd. Avg. Term |
||||||||||||||||||
Total loan |
4 |
$ | 854,133 |
n/a |
5.89 |
% | n/a |
Nov. 2023 |
||||||||||||||||
Senior participation |
4 |
688,521 |
n/a |
4.50 |
% | $ | — |
Nov. 2023 |
(1) | Our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, all-in yield/cost includes the amortization of deferred fees / financing costs. |
December 31, 2019 |
||||||||||||||||||||
Securitized Debt Obligations |
Count |
Principal Balance |
Book Value |
Wtd. Avg. Yield/Cost (1) |
Term (2) |
|||||||||||||||
Collateralized Loan Obligation |
||||||||||||||||||||
Collateral assets |
18 |
$ | 897,522 |
$ | 897,522 |
L+3.43 |
% | Sep. 2022 |
||||||||||||
Financing provided |
1 |
715,022 |
712,517 |
L+1.98 |
% | Jun. 2035 |
||||||||||||||
2017 Single Asset Securitization |
||||||||||||||||||||
Collateral assets (3) |
1 |
711,738 |
710,260 |
L+3.60 |
% | Jun. 2023 |
||||||||||||||
Financing provided |
1 |
474,620 |
474,567 |
L+1.64 |
% | Jun. 2033 |
||||||||||||||
Total |
||||||||||||||||||||
Collateral assets |
19 |
$ | 1,609,260 |
$ | 1,607,782 |
L+3.51 |
% | |||||||||||||
Financing provided (4) |
2 |
$ | 1,189,642 |
$ | 1,187,084 |
L+1.84 |
% | |||||||||||||
(1) | In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees. All-in yield for the total portfolio assume applicable floating benchmark rates for weighted-average calculation. |
(2) | Loan term represents weighted-average final maturity, assuming all extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations. |
(3) | The collateral assets for the 2017 Single Asset Securitization include the total loan amount, of which we securitized $500.0 million. |
(4) | During the year ended December 31, 2019, we recorded $47.2 million of interest expense related to our securitized debt obligations. |
Term Loan Issuance |
Face Value |
Interest Rate |
All-in Cost(1) |
Maturity |
||||||||||||
Term Loan B |
$ | 746,878 |
L+2.25 |
% | L+2.52 |
% | April 23, 2026 |
(1) | Includes issue discount and transaction expenses that are amortized through interest expense over the life of the Secured Term Loan. |
Convertible Notes Issuance |
Face Value |
Coupon Rate |
All-in Cost(1) |
Maturity |
||||||||||||
May 2017 |
$ | 402,500 |
4.38 |
% | 4.85 |
% | May 5, 2022 |
|||||||||
March 2018 |
$ | 220,000 |
4.75 |
% | 5.33 |
% | March 15, 2023 |
(1) | Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the effective interest method. |
USD |
EUR |
GBP |
AUD |
CAD |
||||||||||||||||
Floating rate loans (1) |
$ | 11,303,106 |
€ |
2,724,084 |
£ | 1,266,921 |
A$ | 515,259 |
C$ | 54,196 |
||||||||||
Floating rate debt (1)(2)(3) |
(8,656,170 |
) | (2,125,716 |
) | (711,900 |
) | (378,296 |
) | (60,076 |
) | ||||||||||
Net floating rate exposure (4) |
$ | 2,646,936 |
€ |
598,368 |
£ | 555,021 |
A$ | 136,963 |
C$ | (5,880 |
) | |||||||||
(1) | Our floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. |
(2) | Includes borrowings under secured debt agreements, non-consolidated senior interests, securitized debt obligations, and secured term loans. |
(3) | Balance includes two interest rate swaps totaling C$17.3 million ($13.3 million as of December 31, 2019) that are used to hedge a portion of our fixed rate debt. |
(4) | In addition, we have one interest rate cap of C$21.4 million ($16.5 million as of December 31, 2019) to limit our exposure to increases in interest rates. |
Year Ended December 31, |
2019 vs 2018 |
Year Ended December 31, |
2018 vs 2017 |
|||||||||||||||||||||
2019 |
2018 |
$ |
2018 |
2017 |
$ |
|||||||||||||||||||
Income from loans and other investments |
||||||||||||||||||||||||
Interest and related income |
$ | 882,679 |
$ | 756,109 |
$ | 126,570 |
$ | 756,109 |
$ | 537,915 |
$ | 218,194 |
||||||||||||
Less: Interest and related expenses |
458,503 |
359,625 |
98,878 |
359,625 |
234,870 |
124,755 |
||||||||||||||||||
Income from loans and other investments, net |
424,176 |
396,484 |
27,692 |
396,484 |
303,045 |
93,439 |
||||||||||||||||||
Other expenses |
||||||||||||||||||||||||
Management and incentive fees |
78,435 |
74,834 |
3,601 |
74,834 |
54,841 |
19,993 |
||||||||||||||||||
General and administrative expenses |
38,854 |
35,529 |
3,325 |
35,529 |
29,922 |
5,607 |
||||||||||||||||||
Total other expenses |
117,289 |
110,363 |
6,926 |
110,363 |
84,763 |
25,600 |
||||||||||||||||||
Income before income taxes |
306,887 |
286,121 |
20,766 |
286,121 |
218,282 |
67,839 |
||||||||||||||||||
Income tax (benefit) provision |
(506 |
) | 308 |
(814 |
) | 308 |
314 |
(6 |
) | |||||||||||||||
Net income |
307,393 |
285,813 |
21,580 |
285,813 |
217,968 |
67,845 |
||||||||||||||||||
Net income attributable to non-controlling interests |
(1,826 |
) | (735 |
) | (1,091 |
) | (735 |
) | (337 |
) | (398 |
) | ||||||||||||
Net income attributable to Blackstone Mortgage Trust, Inc. |
$ | 305,567 |
$ | 285,078 |
$ | 20,489 |
$ | 285,078 |
$ | 217,631 |
$ | 67,447 |
||||||||||||
Net income per share – basic and diluted |
$ | 2.35 |
$ | 2.50 |
$ | (0.15 |
) | $ | 2.50 |
$ | 2.27 |
$ | 0.23 |
|||||||||||
Dividends declared per share |
$ | 2.48 |
$ | 2.48 |
$ | — |
$ | 2.48 |
$ | 2.48 |
$ | — |
Three Months Ended December 31, |
2019 vs 2018 |
|||||||||||
2019 |
2018 |
$ |
||||||||||
Income from loans and other investments |
||||||||||||
Interest and related income |
$ | 220,678 |
$ | 206,098 |
$ | 14,580 |
||||||
Less: Interest and related expenses |
110,967 |
103,948 |
7,019 |
|||||||||
Income from loans and other investments, net |
109,711 |
102,150 |
7,561 |
|||||||||
Other expenses |
||||||||||||
Management and incentive fees |
20,159 |
18,586 |
1,573 |
|||||||||
General and administrative expenses |
9,904 |
9,632 |
272 |
|||||||||
Total other expenses |
30,063 |
28,218 |
1,845 |
|||||||||
Income before income taxes |
79,648 |
73,932 |
5,716 |
|||||||||
Income tax provision |
67 |
36 |
31 |
|||||||||
Net income |
79,581 |
73,896 |
5,685 |
|||||||||
Net income attributable to non-controlling interests |
(650 |
) | (253 |
) | (397 |
) | ||||||
Net income attributable to Blackstone Mortgage Trust, Inc. |
$ | 78,931 |
$ | 73,643 |
$ | 5,288 |
||||||
Net income per share – basic and diluted |
$ | 0.59 |
$ | 0.61 |
$ | (0.02 |
) | |||||
Dividends declared per share |
$ | 0.62 |
$ | 0.62 |
$ | — |
December 31, 2019 |
December 31, 2018 |
|||||||
Debt-to-equity ratio(1) |
3.0x |
2.8x |
||||||
Total leverage ratio (2) |
3.7x |
3.7x |
(1) | Represents (i) total outstanding secured debt agreements, secured term loans, and convertible notes, less cash, to (ii) total equity, in each case at period end. |
(2) | Represents (i) total outstanding secured debt agreements, secured term loans, convertible notes, loan participations sold, non-consolidated senior interests, and securitized debt obligations, less cash, to (ii) total equity, in each case at period end. |
December 31, 2019 |
December 31, 2018 |
|||||||
Cash and cash equivalents |
$ | 150,090 |
$ | 105,662 |
||||
Available borrowings under secured debt agreements |
598,840 |
359,618 |
||||||
Loan principal payments held by servicer, net (1) |
1,965 |
4,855 |
||||||
$ | 750,895 |
$ | 470,135 |
|||||
(1) | Represents loan principal payments held by our third-party servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle, net of the related secured debt balance. |
Total Obligation |
Payment Timing |
|||||||||||||||||||
Less Than 1 Year |
1 to 3 Years |
3 to 5 Years |
More Than 5 Years |
|||||||||||||||||
Unfunded loan commitments (1) |
$ | 3,911,868 |
$ | 369,034 |
$ | 2,714,402 |
$ | 828,432 |
$ | — |
||||||||||
Principal repayments under secured debt agreements (2) |
10,083,938 |
142,648 |
2,878,421 |
6,770,155 |
292,714 |
|||||||||||||||
Principal repayments of secured term loans (3) |
746,878 |
7,488 |
14,975 |
14,975 |
709,440 |
|||||||||||||||
Principal repayments of convertible notes (4) |
622,500 |
— |
402,500 |
220,000 |
— |
|||||||||||||||
Interest payments (2)(5) |
1,297,253 |
372,262 |
629,184 |
254,124 |
41,683 |
|||||||||||||||
Total (6) |
$ | 16,662,437 |
$ | 891,432 |
$ | 6,639,482 |
$ | 8,087,686 |
$ | 1,043,837 |
||||||||||
(1) | The allocation of our unfunded loan commitments is based on the earlier of the commitment expiration date or the loan maturity date. |
(2) | The allocation of repayments under our secured debt agreements for both principal and interest payments is based on the earlier of (i) the maturity date of each facility, or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. |
(3) | The Secured Term Loan is partially amortizing, with an amount equal to 1.0% per annum of the principal balance due in quarterly installments. Refer to Note 8 to our consolidated financial statements for further details on our secured term loan. |
(4) | Reflects the outstanding principal balance of convertible notes, excluding any potential conversion premium. Refer to Note 9 to our consolidated financial statements for further details on our convertible notes. |
(5) | Represents interest payments on our secured debt agreements, convertible notes, and Secured Term Loan. Future interest payment obligations are estimated assuming the interest rates in effect as of December 31, 2019 will remain constant into the future. This is only an estimate as actual amounts borrowed and interest rates will vary over time. |
(6) | Total does not include $688.5 million of non-consolidated senior interests and $1.2 billion of securitized debt obligations, as the satisfaction of these liabilities will not require cash outlays from us. |
For the years ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Cash flows provided by operating activities |
$ | 304,037 |
$ | 290,002 |
$ | 227,461 |
||||||
Cash flows used in investing activities |
(1,871,148 |
) | (4,251,659 |
) | (780,752 |
) | ||||||
Cash flows provided by financing activities |
1,612,552 |
3,957,708 |
574,742 |
|||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash |
$ | 45,441 |
$ | (3,949 |
) | $ | 21,451 |
|||||
1 - |
Very Low Risk |
2 - |
Low Risk |
3 - |
Medium Risk |
4 - |
High Risk/Potential for Loss: |
5 - |
Impaired/Loss Likely: |
Loan Type (1) |
Origination Date (2) |
Total Loan (3)(4) |
Principal Balance (4) |
Net Book Value |
Cash Coupon (5) |
All-in Yield (5) |
Maximum Maturity (6) |
Location |
Property Type |
Loan Per SQFT / Unit / Key |
LTV (2) |
Risk Rating |
||||||||||||||||||||||||||||||||||||||
1 |
Senior loan |
8/14/2019 |
$ | 1,330.6 |
$ | 1,330.6 |
$ | 1,318.2 |
L + 2.50 |
% | L + 2.85 |
% | 12/23/2024 |
Dublin-IE |
Office |
$459 / sqft |
74 |
% | 3 |
|||||||||||||||||||||||||||||||
2 |
Senior loan |
3/22/2018 |
1,008.6 |
1,008.6 |
1,004.5 |
L + 3.15 |
% | L + 3.37 |
% | 3/15/2023 |
Diversified-Spain |
Mixed-Use |
n/a |
71 |
% | 3 |
||||||||||||||||||||||||||||||||||
3 |
Senior loan |
5/11/2017 |
752.6 |
711.7 |
710.3 |
L + 3.40 |
% | L + 3.60 |
% | 6/10/2023 |
Washington DC |
Office |
$348 / sqft |
62 |
% | 3 |
||||||||||||||||||||||||||||||||||
4 |
Senior loan |
11/25/2019 |
724.2 |
586.3 |
585.1 |
L + 2.30 |
% | L + 2.75 |
% | 12/9/2024 |
New York |
Office |
$840 / sqft |
65 |
% | 3 |
||||||||||||||||||||||||||||||||||
5 |
Senior loan (3) |
8/6/2015 |
489.0 |
489.0 |
88.4 |
5.74 |
% | 5.77 |
% | 10/29/2022 |
Diversified-EUR |
Other |
n/a |
71 |
% | 3 |
||||||||||||||||||||||||||||||||||
6 |
Senior loan |
4/11/2018 |
355.0 |
344.5 |
344.3 |
L + 2.85 |
% | L + 3.02 |
% | 5/1/2023 |
New York |
Office |
$437 / sqft |
71 |
% | 2 |
||||||||||||||||||||||||||||||||||
7 |
Senior loan |
8/22/2018 |
362.5 |
337.5 |
335.6 |
L + 3.15 |
% | L + 3.49 |
% | 8/9/2023 |
Maui |
Hotel |
$444,674 / key |
61 |
% | 3 |
||||||||||||||||||||||||||||||||||
8 |
Senior loan |
10/23/2018 |
352.4 |
333.8 |
332.5 |
L + 3.40 |
% | L + 3.72 |
% | 10/23/2021 |
New York |
Mixed-Use |
$565 / sqft |
65 |
% | 3 |
||||||||||||||||||||||||||||||||||
9 |
Senior loan |
1/11/2019 |
318.3 |
318.3 |
314.4 |
L + 4.35 |
% | L + 4.70 |
% | 1/11/2026 |
Diversified-UK |
Other |
$314 / sqft |
66 |
% | 3 |
||||||||||||||||||||||||||||||||||
10 |
Senior loan |
11/30/2018 |
292.9 |
278.8 |
276.9 |
L + 2.85 |
% | L + 3.20 |
% | 12/9/2023 |
New York |
Hotel |
$228,186 / key |
73 |
% | 3 |
||||||||||||||||||||||||||||||||||
11 |
Senior loan |
11/30/2018 |
253.9 |
247.5 |
245.9 |
L + 2.80 |
% | L + 3.17 |
% | 12/9/2023 |
San Francisco |
Hotel |
$363,499 / key |
73 |
% | 3 |
||||||||||||||||||||||||||||||||||
12 |
Senior loan |
7/31/2018 |
284.5 |
246.2 |
244.4 |
L + 3.10 |
% | L + 3.54 |
% | 8/9/2022 |
San Francisco |
Office |
$617 / sqft |
50 |
% | 2 |
||||||||||||||||||||||||||||||||||
13 |
Senior loan |
12/11/2018 |
310.0 |
245.3 |
243.1 |
L + 2.55 |
% | L + 2.96 |
% | 12/9/2023 |
Chicago |
Office |
$206 / sqft |
78 |
% | 3 |
||||||||||||||||||||||||||||||||||
14 |
Senior loan |
5/9/2018 |
242.9 |
232.9 |
232.1 |
L + 2.60 |
% | L + 3.03 |
% | 5/9/2023 |
New York |
Industrial |
$66 / sqft |
70 |
% | 2 |
||||||||||||||||||||||||||||||||||
15 |
Senior loan |
9/23/2019 |
280.3 |
229.2 |
226.5 |
L + 3.00 |
% | L + 3.22 |
% | 11/15/2024 |
Diversified-Spain |
Hotel |
$228,228 / key |
62 |
% | 3 |
||||||||||||||||||||||||||||||||||
16 |
Senior loan |
4/17/2018 |
225.0 |
216.4 |
216.1 |
L + 3.25 |
% | L + 3.84 |
% | 5/9/2023 |
New York |
Office |
$202 / sqft |
45 |
% | 2 |
||||||||||||||||||||||||||||||||||
17 |
Senior loan |
6/23/2015 |
211.0 |
211.0 |
210.7 |
L + 3.65 |
% | L + 3.78 |
% | 5/8/2022 |
Washington DC |
Office |
$236 / sqft |
72 |
% | 2 |
||||||||||||||||||||||||||||||||||
18 |
Senior loan |
7/20/2017 |
250.0 |
209.4 |
208.0 |
L + 4.80 |
% | L + 5.71 |
% | 8/9/2022 |
San Francisco |
Office |
$347 / sqft |
58 |
% | 2 |
||||||||||||||||||||||||||||||||||
19 |
Senior loan |
10/23/2018 |
278.4 |
204.3 |
202.8 |
L + 2.65 |
% | L + 2.87 |
% | 11/9/2024 |
Atlanta |
Office |
$190 / sqft |
64 |
% | 2 |
||||||||||||||||||||||||||||||||||
20 |
Senior loan |
9/25/2019 |
195.1 |
195.1 |
193.5 |
L + 4.35 |
% | L + 4.93 |
% | 9/26/2023 |
London-UK |
Office |
$889 / sqft |
72 |
% | 3 |
||||||||||||||||||||||||||||||||||
21 |
Senior loan |
11/23/2018 |
196.4 |
191.1 |
189.0 |
L + 2.62 |
% | L + 2.87 |
% | 2/15/2024 |
Diversified-UK |
Office |
$1,158 / sqft |
50 |
% | 3 |
||||||||||||||||||||||||||||||||||
22 |
Senior loan |
12/12/2019 |
260.5 |
190.1 |
188.9 |
L + 2.40 |
% | L + 2.68 |
% | 12/9/2024 |
New York |
Office |
$90 / sqft |
42 |
% | 1 |
||||||||||||||||||||||||||||||||||
23 |
Senior loan |
6/4/2018 |
190.0 |
190.0 |
189.1 |
L + 3.50 |
% | L + 3.86 |
% | 6/9/2024 |
New York |
Hotel |
$313,015 / key |
52 |
% | 3 |
||||||||||||||||||||||||||||||||||
24 |
Senior loan |
8/31/2017 |
203.0 |
190.0 |
189.2 |
L + 2.50 |
% | L + 2.75 |
% | 9/9/2023 |
Orange County |
Office |
$221 / sqft |
64 |
% | 3 |
||||||||||||||||||||||||||||||||||
25 |
Senior loan |
12/22/2016 |
204.5 |
187.7 |
187.6 |
L + 2.90 |
% | L + 2.98 |
% | 12/9/2022 |
New York |
Office |
$264 / sqft |
64 |
% | 3 |
||||||||||||||||||||||||||||||||||
26 |
Senior loan |
5/16/2017 |
189.2 |
187.0 |
186.7 |
L + 3.90 |
% | L + 4.35 |
% | 5/16/2021 |
Chicago |
Office |
$140 / sqft |
59 |
% | 3 |
||||||||||||||||||||||||||||||||||
27 |
Senior loan |
9/30/2019 |
305.5 |
185.8 |
185.8 |
L + 3.66 |
% | L + 3.75 |
% | 9/9/2024 |
Chicago |
Office |
$161 / sqft |
58 |
% | 3 |
||||||||||||||||||||||||||||||||||
28 |
Senior loan |
6/27/2019 |
215.0 |
185.0 |
183.1 |
L + 2.80 |
% | L + 3.16 |
% | 8/15/2026 |
Berlin-DEU |
Office |
$397 / sqft |
62 |
% | 3 |
||||||||||||||||||||||||||||||||||
29 |
Senior loan |
4/9/2018 |
1,486.5 |
185.0 |
173.0 |
L + 8.50 |
% | L + 10.64 |
% | 6/9/2025 |
New York |
Office |
$525 / sqft |
48 |
% | 2 |
||||||||||||||||||||||||||||||||||
30 |
Senior loan |
10/9/2018 |
181.2 |
181.2 |
180.6 |
L + 2.75 |
% | L + 2.97 |
% | 9/9/2023 |
Orange County |
Office |
$228 / sqft |
57 |
% | 2 |
Loan Type (1) |
Origination Date (2) |
Total Loan (3)(4) |
Principal Balance (4) |
Net Book Value |
Cash Coupon (5) |
All-in Yield (5) |
Maximum Maturity (6) |
Location |
Property Type |
Loan Per SQFT / Unit / Key |
LTV (2) |
Risk Rating |
||||||||||||||||||||||||||||||||||||||
31 |
Senior loan |
11/5/2019 |
217.1 |
180.9 |
178.7 |
L + 3.85 |
% | L + 4.45 |
% | 2/21/2025 |
Diversified-IT |
Industrial |
$358 / sqft |
66 |
% | 3 |
||||||||||||||||||||||||||||||||||
32 |
Senior loan (3) |
8/7/2019 |
745.8 |
178.2 |
33.2 |
L + 3.12 |
% | L + 3.50 |
% | 9/9/2025 |
Los Angeles |
Office |
$223 / sqft |
59 |
% | 3 |
||||||||||||||||||||||||||||||||||
33 |
Senior loan |
4/3/2018 |
178.6 |
177.1 |
176.5 |
L + 2.75 |
% | L + 3.08 |
% | 4/9/2024 |
Dallas |
Mixed-Use |
$502 / sqft |
64 |
% | 3 |
||||||||||||||||||||||||||||||||||
34 |
Senior loan |
9/14/2018 |
177.0 |
177.0 |
176.0 |
L + 3.50 |
% | L + 3.85 |
% | 9/14/2023 |
Canberra-AU |
Mixed-Use |
$460 / sqft |
68 |
% | 3 |
||||||||||||||||||||||||||||||||||
35 |
Senior loan |
9/26/2019 |
175.0 |
175.0 |
173.9 |
L + 3.10 |
% | L + 3.54 |
% | 1/9/2023 |
New York |
Office |
$256 / sqft |
65 |
% | 3 |
||||||||||||||||||||||||||||||||||
36 |
Senior loan |
12/21/2017 |
197.5 |
153.9 |
153.2 |
L + 2.65 |
% | L + 3.06 |
% | 1/9/2023 |
Atlanta |
Office |
$115 / sqft |
51 |
% | 2 |
||||||||||||||||||||||||||||||||||
37 |
Senior loan |
9/4/2018 |
172.7 |
153.0 |
152.0 |
L + 3.00 |
% | L + 3.39 |
% | 9/9/2023 |
Las Vegas |
Hotel |
$185,247 / key |
70 |
% | 3 |
||||||||||||||||||||||||||||||||||
38 |
Senior loan |
12/6/2019 |
159.1 |
152.5 |
150.9 |
L + 2.80 |
% | L + 3.31 |
% | 12/5/2024 |
London-UK |
Office |
$1,010 / sqft |
75 |
% | 3 |
||||||||||||||||||||||||||||||||||
39 |
Senior loan |
8/23/2017 |
165.0 |
151.0 |
150.5 |
L + 3.25 |
% | L + 3.58 |
% | 10/9/2022 |
Los Angeles |
Office |
$306 / sqft |
74 |
% | 2 |
||||||||||||||||||||||||||||||||||
40 |
Senior loan |
12/20/2019 |
148.9 |
148.9 |
147.5 |
L + 3.10 |
% | L + 3.32 |
% | 12/18/2026 |
London-UK |
Office |
$741 / sqft |
75 |
% | 3 |
||||||||||||||||||||||||||||||||||
41 |
Senior loan |
11/14/2017 |
133.0 |
133.0 |
132.6 |
L + 2.75 |
% | L + 3.00 |
% | 6/9/2023 |
Los Angeles |
Hotel |
$532,000 / key |
56 |
% | 2 |
||||||||||||||||||||||||||||||||||
42 |
Senior loan |
5/11/2017 |
135.9 |
131.1 |
130.8 |
L + 3.40 |
% | L + 3.91 |
% | 6/10/2023 |
Washington DC |
Office |
$301 / sqft |
38 |
% | 2 |
||||||||||||||||||||||||||||||||||
43 |
Senior loan (3) |
11/22/2019 |
470.0 |
124.7 |
24.0 |
L + 3.70 |
% | L + 4.10 |
% | 12/9/2025 |
Los Angeles |
Office |
$219 / sqft |
69 |
% | 3 |
||||||||||||||||||||||||||||||||||
44 |
Senior loan |
9/20/2018 |
129.6 |
124.3 |
124.1 |
L + 4.00 |
% | L + 4.06 |
% | 8/16/2023 |
Diversified-AU |
Other |
$853 / sqft |
53 |
% | 3 |
||||||||||||||||||||||||||||||||||
45 |
Senior loan |
9/5/2019 |
198.5 |
121.3 |
119.3 |
L + 2.75 |
% | L + 3.17 |
% | 9/9/2024 |
New York |
Office |
$757 / sqft |
62 |
% | 3 |
||||||||||||||||||||||||||||||||||
46 |
Senior loan |
11/27/2019 |
146.3 |
121.0 |
119.6 |
L + 2.75 |
% | L + 3.13 |
% | 12/9/2024 |
Minneapolis |
Office |
$121 / sqft |
64 |
% | 3 |
||||||||||||||||||||||||||||||||||
47 |
Senior loan |
12/14/2018 |
135.6 |
120.7 |
120.1 |
L + 2.90 |
% | L + 3.27 |
% | 1/9/2024 |
Diversified-US |
Industrial |
$48 / sqft |
57 |
% | 3 |
||||||||||||||||||||||||||||||||||
48 |
Senior loan |
4/30/2018 |
169.9 |
120.4 |
119.1 |
L + 3.25 |
% | L + 3.51 |
% | 4/30/2023 |
London-UK |
Office |
$542 / sqft |
60 |
% | 3 |
||||||||||||||||||||||||||||||||||
49 |
Senior loan |
6/28/2019 |
193.5 |
119.7 |
117.8 |
L + 3.70 |
% | L + 4.33 |
% | 6/27/2024 |
London-UK |
Office |
$390 / sqft |
71 |
% | 3 |
||||||||||||||||||||||||||||||||||
50 |
Senior loan |
6/28/2019 |
125.0 |
117.2 |
116.7 |
L + 2.75 |
% | L + 2.91 |
% | 2/1/2024 |
Los Angeles |
Office |
$591 / sqft |
48 |
% | 3 |
||||||||||||||||||||||||||||||||||
51 |
Senior loan |
10/17/2016 |
111.9 |
111.9 |
111.9 |
L + 3.95 |
% | L + 3.96 |
% | 10/21/2021 |
Diversified-UK |
Self-Storage |
$154 / sqft |
73 |
% | 3 |
||||||||||||||||||||||||||||||||||
52 |
Senior loan |
7/15/2019 |
144.6 |
111.1 |
110.0 |
L + 2.90 |
% | L + 3.25 |
% | 8/9/2024 |
Houston |
Office |
$201 / sqft |
58 |
% | 3 |
||||||||||||||||||||||||||||||||||
53 |
Senior loan |
3/21/2018 |
113.2 |
106.2 |
105.6 |
L + 3.10 |
% | L + 3.36 |
% | 3/21/2024 |
Jacksonville |
Office |
$106 / sqft |
72 |
% | 2 |
||||||||||||||||||||||||||||||||||
54 |
Senior loan |
10/16/2018 |
113.7 |
104.4 |
103.8 |
L + 3.25 |
% | L + 3.57 |
% | 11/9/2023 |
San Francisco |
Hotel |
$227,427 / key |
72 |
% | 3 |
||||||||||||||||||||||||||||||||||
55 |
Senior loan |
3/13/2018 |
123.0 |
103.6 |
102.9 |
L + 3.50 |
% | L + 3.83 |
% | 4/9/2025 |
Honolulu |
Hotel |
$160,580 / key |
50 |
% | 3 |
||||||||||||||||||||||||||||||||||
56 |
Senior loan |
12/19/2018 |
106.7 |
103.0 |
102.7 |
L + 2.60 |
% | L + 2.94 |
% | 12/9/2022 |
Chicago |
Multi |
$556,723 / unit |
66 |
% | 2 |
||||||||||||||||||||||||||||||||||
57 |
Senior loan |
12/21/2018 |
123.1 |
102.7 |
101.8 |
L + 2.60 |
% | L + 3.00 |
% | 1/9/2024 |
Chicago |
Office |
$201 / key |
72 |
% | 2 |
||||||||||||||||||||||||||||||||||
58 |
Senior loan |
5/16/2014 |
100.0 |
100.0 |
99.9 |
L + 3.85 |
% | L + 4.11 |
% | 4/9/2022 |
Miami |
Office |
$215 / sqft |
67 |
% | 3 |
||||||||||||||||||||||||||||||||||
59 |
Senior loan |
11/16/2018 |
211.9 |
96.3 |
94.4 |
L + 4.10 |
% | L + 4.73 |
% | 12/9/2023 |
Fort Lauderdale |
Mixed-Use |
$271 / sqft |
59 |
% | 3 |
||||||||||||||||||||||||||||||||||
60 |
Senior loan |
6/1/2018 |
133.9 |
95.9 |
94.9 |
L + 3.40 |
% | L + 3.75 |
% | 5/28/2023 |
London-UK |
Office |
$650 / sqft |
70 |
% | 1 |
Loan Type (1) |
Origination Date (2) |
Total Loan (3)(4) |
Principal Balance (4) |
Net Book Value |
Cash Coupon (5) |
All-in Yield (5) |
Maximum Maturity (6) |
Location |
Property Type |
Loan Per SQFT / Unit / Key |
LTV (2) |
Risk Rating |
||||||||||||||||||||||||||||||||||||||
61 |
Senior loan |
12/10/2018 |
117.7 |
92.8 |
91.7 |
L + 2.95 |
% | L + 3.34 |
% | 12/3/2024 |
London-UK |
Office |
$443 / sqft |
72 |
% | 3 |
||||||||||||||||||||||||||||||||||
62 |
Senior loan |
12/23/2019 |
109.7 |
92.7 |
91.8 |
L + 2.70 |
% | L + 3.03 |
% | 1/9/2025 |
Miami |
Multi |
$320,851 / unit |
68 |
% | 3 |
||||||||||||||||||||||||||||||||||
63 |
Senior loan |
11/30/2018 |
151.1 |
90.4 |
89.5 |
L + 2.55 |
% | L + 2.82 |
% | 12/9/2024 |
Washington DC |
Office |
$282 / sqft |
60 |
% | 3 |
||||||||||||||||||||||||||||||||||
64 |
Senior loan |
3/28/2019 |
98.4 |
90.1 |
89.8 |
L + 3.25 |
% | L + 3.40 |
% | 1/9/2024 |
New York |
Hotel |
$232,783 / key |
63 |
% | 3 |
||||||||||||||||||||||||||||||||||
65 |
Senior loan |
4/12/2018 |
103.1 |
90.0 |
89.6 |
L + 2.75 |
% | L + 3.14 |
% | 5/9/2023 |
San Francisco |
Office |
$235 / sqft |
72 |
% | 2 |
||||||||||||||||||||||||||||||||||
66 |
Senior loan |
5/22/2014 |
89.9 |
89.9 |
89.8 |
L + 2.90 |
% | L + 3.15 |
% | 6/15/2021 |
Orange County |
Office |
$187 / sqft |
74 |
% | 2 |
||||||||||||||||||||||||||||||||||
67 |
Senior loan |
2/18/2015 |
87.7 |
87.7 |
87.6 |
L + 3.75 |
% | L + 4.21 |
% | 3/9/2020 |
Diversified-CA |
Office |
$181 / sqft |
71 |
% | 3 |
||||||||||||||||||||||||||||||||||
68 |
Senior loan |
8/18/2017 |
87.2 |
87.2 |
86.8 |
L + 4.10 |
% | L + 4.80 |
% | 8/18/2022 |
Brussels-BE |
Office |
$135 / sqft |
59 |
% | 2 |
||||||||||||||||||||||||||||||||||
69 |
Senior loan |
4/25/2019 |
210.0 |
85.6 |
84.6 |
L + 3.50 |
% | L + 3.75 |
% | 9/1/2025 |
Los Angeles |
Office |
$385 / sqft |
73 |
% | 3 |
||||||||||||||||||||||||||||||||||
70 |
Senior loan |
11/22/2019 |
85.0 |
85.0 |
84.6 |
L + 2.99 |
% | L + 3.27 |
% | 12/1/2024 |
San Jose |
Multi |
$317,164 / unit |
62 |
% | 3 |
||||||||||||||||||||||||||||||||||
71 |
Senior loan |
6/18/2019 |
90.0 |
85.0 |
84.3 |
L + 3.15 |
% | L + 3.52 |
% | 7/9/2024 |
Napa Valley |
Hotel |
$890,052 / key |
74 |
% | 3 |
||||||||||||||||||||||||||||||||||
72 |
Senior loan |
3/31/2017 |
97.2 |
80.8 |
80.8 |
L + 4.30 |
% | L + 4.70 |
% | 4/9/2022 |
New York |
Office |
$396 / sqft |
64 |
% | 3 |
||||||||||||||||||||||||||||||||||
73 |
Senior loan |
6/29/2016 |
83.4 |
79.2 |
79.1 |
L + 2.80 |
% | L + 3.28 |
% | 7/9/2021 |
Miami |
Office |
$305 / sqft |
64 |
% | 2 |
||||||||||||||||||||||||||||||||||
74 |
Senior loan |
2/20/2019 |
134.6 |
77.8 |
76.5 |
L + 3.25 |
% | L + 3.89 |
% | 2/19/2024 |
London-UK |
Office |
$382 / sqft |
61 |
% | 3 |
||||||||||||||||||||||||||||||||||
75 |
Senior loan |
10/17/2018 |
80.4 |
70.5 |
70.2 |
L + 2.60 |
% | L + 3.16 |
% | 11/9/2023 |
San Francisco |
Office |
$439 / sqft |
68 |
% | 3 |
||||||||||||||||||||||||||||||||||
76 |
Senior loan |
7/26/2018 |
84.1 |
70.5 |
70.4 |
L + 2.75 |
% | L + 2.85 |
% | 7/1/2024 |
Columbus |
Multi |
$66,429 / unit |
69 |
% | 3 |
||||||||||||||||||||||||||||||||||
77 |
Senior loan |
6/27/2019 |
84.0 |
70.0 |
69.5 |
L + 2.50 |
% | L + 2.77 |
% | 7/9/2024 |
West Palm Beach |
Office |
$481 / sqft |
70 |
% | 3 |
||||||||||||||||||||||||||||||||||
78 |
Senior loan |
4/5/2018 |
85.3 |
65.9 |
65.5 |
L + 3.10 |
% | L + 3.51 |
% | 4/9/2023 |
Diversified-US |
Industrial |
$24 / sqft |
54 |
% | 3 |
||||||||||||||||||||||||||||||||||
79 |
Senior loan |
8/22/2019 |
74.3 |
65.0 |
64.3 |
L + 2.55 |
% | L + 2.93 |
% | 9/9/2024 |
Los Angeles |
Office |
$389 / sqft |
63 |
% | 3 |
||||||||||||||||||||||||||||||||||
80 |
Senior loan |
6/29/2017 |
64.2 |
63.4 |
63.1 |
L + 3.40 |
% | L + 3.65 |
% | 7/9/2023 |
New York |
Multi |
$184,768 / unit |
69 |
% | 4 |
||||||||||||||||||||||||||||||||||
81 |
Senior loan (3) |
9/22/2017 |
91.0 |
62.2 |
15.5 |
L + 5.28 |
% | L + 6.13 |
% | 10/9/2022 |
San Francisco |
Multi |
$446,078 / unit |
46 |
% | 3 |
||||||||||||||||||||||||||||||||||
82 |
Senior loan |
10/5/2018 |
60.4 |
60.4 |
60.0 |
L + 5.50 |
% | L + 5.65 |
% | 10/5/2021 |
Sydney-AU |
Office |
$641 / sqft |
78 |
% | 3 |
||||||||||||||||||||||||||||||||||
83 |
Senior loan |
7/13/2017 |
86.3 |
60.0 |
59.8 |
L + 3.75 |
% | L + 4.18 |
% | 8/9/2022 |
Honolulu |
Hotel |
$192,926 / key |
66 |
% | 3 |
||||||||||||||||||||||||||||||||||
84 |
Senior loan |
11/30/2016 |
65.2 |
56.7 |
56.6 |
L + 3.10 |
% | L + 3.32 |
% | 12/9/2021 |
Chicago |
Retail |
$1,167 / sqft |
54 |
% | 3 |
||||||||||||||||||||||||||||||||||
85 |
Senior loan |
10/6/2017 |
55.9 |
55.8 |
55.7 |
L + 2.95 |
% | L + 3.21 |
% | 10/9/2022 |
Nashville |
Multi |
$99,598 / unit |
74 |
% | 2 |
||||||||||||||||||||||||||||||||||
86 |
Senior loan |
6/26/2019 |
70.6 |
55.3 |
54.7 |
L + 3.35 |
% | L + 3.66 |
% | 6/20/2024 |
London-UK |
Office |
$625 / sqft |
61 |
% | 3 |
||||||||||||||||||||||||||||||||||
87 |
Senior loan |
8/16/2019 |
54.3 |
54.3 |
54.1 |
L + 2.75 |
% | L + 2.95 |
% | 9/1/2022 |
Sarasota |
Multi |
$238,158 / unit |
76 |
% | 3 |
||||||||||||||||||||||||||||||||||
88 |
Senior loan |
11/23/2016 |
53.6 |
53.6 |
53.5 |
L + 3.50 |
% | L + 3.80 |
% | 12/9/2022 |
New York |
Multi |
$223,254 / unit |
65 |
% | 4 |
||||||||||||||||||||||||||||||||||
89 |
Senior loan |
3/11/2014 |
52.8 |
52.8 |
52.8 |
L + 4.50 |
% | L + 4.76 |
% | 4/9/2021 |
New York |
Multi |
$593,109 / unit |
65 |
% | 4 |
||||||||||||||||||||||||||||||||||
90 |
Senior loan |
6/12/2019 |
55.0 |
48.3 |
48.2 |
L + 3.25 |
% | L + 3.37 |
% | 7/1/2022 |
Grand Rapids |
Multi |
$92,529 / unit |
69 |
% | 3 |
Loan Type (1) |
Origination Date (2) |
Total Loan (3)(4) |
Principal Balance (4) |
Net Book Value |
Cash Coupon (5) |
All-in Yield (5) |
Maximum Maturity (6) |
Location |
Property Type |
Loan Per SQFT / Unit / Key |
LTV (2) |
Risk Rating |
||||||||||||||||||||||||||||||||||||||
91 |
Senior loan |
8/14/2019 |
70.3 |
47.6 |
47.0 |
L + 2.45 |
% | L + 2.87 |
% | 9/9/2024 |
Los Angeles |
Office |
$512 / sqft |
57 |
% | 3 |
||||||||||||||||||||||||||||||||||
92 |
Senior loan |
5/24/2018 |
81.3 |
45.7 |
45.2 |
L + 4.10 |
% | L + 4.59 |
% | 6/9/2023 |
Boston |
Office |
$88 / sqft |
55 |
% | 3 |
||||||||||||||||||||||||||||||||||
93 |
Senior loan |
9/25/2018 |
49.3 |
45.0 |
44.8 |
L + 3.50 |
% | L + 3.79 |
% | 9/1/2023 |
Chicago |
Multi |
$61,202 / unit |
70 |
% | 3 |
||||||||||||||||||||||||||||||||||
94 |
Senior loan |
11/3/2017 |
45.0 |
44.0 |
43.9 |
L + 3.00 |
% | L + 3.08 |
% | 11/1/2022 |
Los Angeles |
Office |
$205 / sqft |
50 |
% | 1 |
||||||||||||||||||||||||||||||||||
95 |
Senior loan |
8/29/2017 |
51.2 |
43.5 |
43.4 |
L + 3.10 |
% | L + 3.52 |
% | 10/9/2022 |
Southern California |
Industrial |
$91 / sqft |
65 |
% | 3 |
||||||||||||||||||||||||||||||||||
96 |
Senior loan |
10/31/2018 |
59.3 |
42.4 |
42.2 |
L + 5.00 |
% | L + 5.97 |
% | 11/9/2023 |
New York |
Condo |
$357 / sqft |
64 |
% | 3 |
||||||||||||||||||||||||||||||||||
97 |
Senior loan |
10/31/2018 |
63.3 |
41.4 |
41.1 |
L + 5.00 |
% | L + 5.63 |
% | 11/9/2023 |
New York |
Multi |
$215,011 / unit |
61 |
% | 3 |
||||||||||||||||||||||||||||||||||
98 |
Senior loan |
6/26/2015 |
41.6 |
40.8 |
40.7 |
L + 3.75 |
% | L + 3.94 |
% | 7/9/2020 |
San Diego |
Office |
$186 / sqft |
73 |
% | 3 |
||||||||||||||||||||||||||||||||||
99 |
Senior loan |
2/20/2019 |
51.6 |
40.2 |
39.8 |
L + 3.50 |
% | L + 3.91 |
% | 3/9/2024 |
Calgary-CAN |
Office |
$111 / sqft |
52 |
% | 3 |
||||||||||||||||||||||||||||||||||
100 |
Senior loan |
12/27/2016 |
39.5 |
39.5 |
39.5 |
L + 3.10 |
% | L + 3.45 |
% | 1/9/2022 |
New York |
Multi |
$784,286 / unit |
64 |
% | 3 |
||||||||||||||||||||||||||||||||||
101 |
Senior loan |
11/30/2018 |
40.0 |
37.2 |
37.1 |
L + 2.95 |
% | L + 3.38 |
% | 12/1/2023 |
Las Vegas |
Multi |
$77,548 / unit |
70 |
% | 2 |
||||||||||||||||||||||||||||||||||
102 |
Senior loan |
12/13/2019 |
81.3 |
33.0 |
32.0 |
L + 3.55 |
% | L + 4.49 |
% | 6/12/2024 |
Diversified-FR |
Industrial |
$23 / sqft |
55 |
% | 3 |
||||||||||||||||||||||||||||||||||
103 |
Senior loan |
10/31/2019 |
33.9 |
33.0 |
32.9 |
L + 3.25 |
% | L + 3.34 |
% | 11/1/2024 |
Raleigh |
Multi |
$162,360 / unit |
52 |
% | 3 |
||||||||||||||||||||||||||||||||||
104 |
Senior loan |
8/14/2019 |
31.0 |
31.0 |
31.0 |
L + 4.00 |
% | L + 4.44 |
% | 8/14/2020 |
Orangeburg |
Other |
$150 / sqft |
36 |
% | 3 |
||||||||||||||||||||||||||||||||||
105 |
Senior loan |
10/31/2019 |
31.5 |
30.8 |
30.7 |
L + 3.25 |
% | L + 3.33 |
% | 11/1/2024 |
Atlanta |
Multi |
$162,104 / unit |
60 |
% | 3 |
||||||||||||||||||||||||||||||||||
106 |
Senior loan |
12/3/2019 |
30.3 |
30.3 |
30.2 |
L + 2.75 |
% | L + 3.20 |
% | 3/1/2021 |
Pensacola |
Multi |
$117,500 / unit |
50 |
% | 2 |
||||||||||||||||||||||||||||||||||
107 |
Senior loan |
6/26/2019 |
30.0 |
30.0 |
30.0 |
L + 3.25 |
% | L + 3.65 |
% | 10/1/2020 |
Lake Charles |
Multi |
$111,940 / unit |
73 |
% | 3 |
||||||||||||||||||||||||||||||||||
108 |
Senior loan |
10/31/2019 |
30.2 |
29.4 |
29.3 |
L + 3.25 |
% | L + 3.33 |
% | 11/1/2024 |
Austin |
Multi |
$155,582 / unit |
52 |
% | 3 |
||||||||||||||||||||||||||||||||||
109 |
Senior loan |
5/31/2019 |
29.3 |
29.3 |
29.3 |
L + 3.75 |
% | L + 3.75 |
% | 3/1/2021 |
Denver |
Multi |
$195,333 / unit |
59 |
% | 2 |
||||||||||||||||||||||||||||||||||
110 |
Senior loan |
8/30/2018 |
28.7 |
27.5 |
27.4 |
L + 3.00 |
% | L + 3.42 |
% | 9/1/2022 |
Boise |
Multi |
$108,106 / unit |
73 |
% | 3 |
||||||||||||||||||||||||||||||||||
111 |
Senior loan |
10/31/2019 |
27.2 |
26.6 |
26.5 |
L + 3.25 |
% | L + 3.32 |
% | 11/1/2024 |
Austin |
Multi |
$132,314 / unit |
53 |
% | 3 |
||||||||||||||||||||||||||||||||||
112 |
Senior loan |
12/15/2017 |
22.5 |
22.5 |
22.5 |
L + 3.50 |
% | L + 3.50 |
% | 12/9/2020 |
Diversified-US |
Hotel |
$340,809 / key |
50 |
% | 1 |
||||||||||||||||||||||||||||||||||
113 |
Senior loan |
3/8/2017 |
21.2 |
21.2 |
21.2 |
4.90 |
% (7) |
5.24 |
% (7) |
12/23/2021 |
Montreal-CAN |
Office |
$58 / sqft |
45 |
% | 2 |
||||||||||||||||||||||||||||||||||
114 |
Senior loan |
4/26/2019 |
20.0 |
20.0 |
19.9 |
L + 2.93 |
% | L + 3.38 |
% | 5/1/2024 |
Nashville |
Multi |
$198,020 / unit |
73 |
% | 2 |
||||||||||||||||||||||||||||||||||
115 |
Senior loan |
12/21/2018 |
22.9 |
20.0 |
19.9 |
L + 3.25 |
% | L + 3.48 |
% | 1/1/2024 |
Daytona Beach |
Multi |
$74,627 / unit |
77 |
% | 3 |
||||||||||||||||||||||||||||||||||
116 |
Senior loan |
12/23/2019 |
26.2 |
19.9 |
19.7 |
L + 2.70 |
% | L + 3.06 |
% | 1/9/2025 |
Miami |
Office |
$335 / sqft |
68 |
% | 3 |
||||||||||||||||||||||||||||||||||
117 |
Senior loan |
6/15/2018 |
22.0 |
19.6 |
19.7 |
L + 3.35 |
% | L + 3.43 |
% | 7/1/2022 |
Phoenix |
Multi |
$68,613 / unit |
78 |
% | 3 |
||||||||||||||||||||||||||||||||||
118 |
Senior loan |
3/9/2018 |
17.8 |
17.0 |
17.0 |
L + 3.75 |
% | L + 3.77 |
% | 4/1/2023 |
Los Angeles |
Multi |
$131,095 / unit |
75 |
% | 2 |
||||||||||||||||||||||||||||||||||
119 |
Senior loan |
3/30/2016 |
16.6 |
16.6 |
16.7 |
5.15 |
% | 5.27 |
% | 9/4/2020 |
Diversified-CAN |
Self-Storage |
$3,607 / unit |
56 |
% | 1 |
||||||||||||||||||||||||||||||||||
120 |
Senior loan |
6/21/2019 |
14.8 |
14.5 |
14.4 |
L + 3.30 |
% | L + 3.41 |
% | 7/1/2022 |
Portland |
Multi |
$130,180 / unit |
66 |
% | 2 |
Loan Type (1) |
Origination Date (2) |
Total Loan (3)(4) |
Principal Balance (4) |
Net Book Value |
Cash Coupon (5) |
All-in Yield (5) |
Maximum Maturity (6) |
Location |
Property Type |
Loan Per SQFT / Unit / Key |
LTV (2) |
Risk Rating |
||||||||||||||||||||||||||||||||||||||
121 |
Senior loan |
10/20/2017 |
17.2 |
14.0 |
13.9 |
L + 4.25 |
% | L + 4.35 |
% | 11/1/2021 |
Houston |
Multi |
$110,714 / unit |
56 |
% | 3 |
||||||||||||||||||||||||||||||||||
122 |
Senior loan |
4/30/2019 |
15.5 |
13.6 |
13.5 |
L + 3.00 |
% | L + 3.32 |
% | 5/1/2024 |
Houston |
Multi |
$43,990 / unit |
78 |
% | 3 |
||||||||||||||||||||||||||||||||||
123 |
Senior loan |
2/28/2019 |
15.3 |
13.5 |
13.4 |
L + 3.00 |
% | L + 3.33 |
% | 3/1/2024 |
San Antonio |
Multi |
$58,496 / unit |
75 |
% | 3 |
||||||||||||||||||||||||||||||||||
124 |
Senior loan |
6/29/2018 |
11.6 |
11.6 |
11.7 |
L + 2.95 |
% | L + 3.32 |
% | 7/1/2020 |
Washington DC |
Multi |
$61,053 / unit |
60 |
% | 2 |
||||||||||||||||||||||||||||||||||
125 |
Senior loan |
5/30/2018 |
10.1 |
10.1 |
10.1 |
L + 3.90 |
% | L + 3.97 |
% | 6/1/2021 |
Phoenix |
Multi |
$112,222 / unit |
74 |
% | 3 |
||||||||||||||||||||||||||||||||||
126 |
Senior loan |
10/31/2018 |
10.0 |
10.0 |
10.0 |
L + 3.35 |
% | L + 3.58 |
% | 11/1/2020 |
Boise |
Multi |
$156,250 / unit |
74 |
% | 2 |
||||||||||||||||||||||||||||||||||
127 |
Senior loan |
9/1/2016 |
9.4 |
9.4 |
9.5 |
L + 4.20 |
% | L + 4.38 |
% | 9/1/2022 |
Atlanta |
Multi |
$87,218 / unit |
72 |
% | 1 |
||||||||||||||||||||||||||||||||||
128 |
Senior loan |
10/1/2019 |
341.7 |
0.0 |
(3.4 |
) | L + 3.75 |
% | L + 4.21 |
% | 10/9/2025 |
Atlanta |
Mixed-Use |
$505 / sqft |
70 |
% | 3 |
|||||||||||||||||||||||||||||||||
$ | 21,628.0 |
$ | 16,965.9 |
$ | 16,164.8 |
L + 3.25 |
% | L + 3.59 |
% | 3.8 yrs |
65 |
% | 2.8 |
|||||||||||||||||||||||||||||||||||||
(1) | Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. |
(2) | Date loan was originated or acquired by us, and the LTV as of such date. Origination dates are subsequently updated to reflect material loan modifications. |
(3) | Total loan amount reflects outstanding principal balance as well as any related unfunded loan commitment. |
(4) | 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. As of December 31, 2019, four loans in our portfolio have been financed with an aggregate $688.5 million of non-consolidated senior interest, which are included in the table above. Portfolio excludes our $89.0 million subordinate risk retention interest in the $930.0 million 2018 Single Asset Securitization. Refer to Notes 4 and 16 to our consolidated financial statements for details of the 2018 Single Asset Securitization. |
(5) | The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR, as applicable to each loan. As of December 31, 2019, 97% of our loans by total loan exposure earned a floating rate of interest, primarily indexed to USD LIBOR, and $6.1 billion of such loans earned interest based on floors that are above the applicable index. The other 3% of our loans earned a fixed rate of interest, which we reflect as a spread over the relevant floating benchmark rates, as of December 31, 2019, for purposes of the weighted-averages. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. |
(6) | Maximum maturity assumes all extension options are exercised, however our loans may be repaid prior to such date. |
(7) | Loan consists of one or more floating and fixed rate tranches. Coupon and all-in yield assume applicable floating benchmark rates for weighted-average calculation. |
ITEM 7A. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Assets (Liabilities) Sensitive to Changes |
Interest Rate Sensitivity as of December 31, 2019 |
|||||||||||||||||||||||
Increase in Rates |
Decrease in Rates |
|||||||||||||||||||||||
Currency |
in Interest Rates (1)(2) |
25 Basis Points |
50 Basis Points |
25 Basis Points |
50 Basis Points |
|||||||||||||||||||
USD |
$ | 11,303,106 |
Income |
$ | 18,186 |
$ | 38,315 |
$ | (16,447 |
) | $ | (30,349 |
) | |||||||||||
(8,656,170 |
) | Expense |
(16,466 |
) | (32,938 |
) | 16,070 |
32,126 |
||||||||||||||||
$ | 2,646,936 |
Net interest |
$ | 1,720 |
$ | 5,377 |
$ | (377 |
) | $ | 1,777 |
|||||||||||||
GBP |
$ | 1,679,557 |
Income |
$ | 2,829 |
$ | 6,188 |
$ | (2,630 |
) | $ | (5,082 |
) | |||||||||||
(943,766 |
) | Expense |
(1,888 |
) | (3,775 |
) | 1,888 |
3,775 |
||||||||||||||||
$ | 735,791 |
Net interest |
$ | 941 |
$ | 2,413 |
$ | (742 |
) | $ | (1,307 |
) | ||||||||||||
EUR |
$ | 3,054,515 |
Income |
$ | — |
$ | 2,415 |
$ | — |
$ | — |
|||||||||||||
(2,383,565 |
) | Expense |
— |
(1,876 |
) | — |
— |
|||||||||||||||||
$ | 670,950 |
Net interest |
$ | — |
$ | 539 |
$ | — |
$ | — |
||||||||||||||
AUD |
$ | 361,763 |
Income |
$ | 221 |
$ | 785 |
$ | — |
$ | — |
|||||||||||||
(265,602 |
) | Expense |
(531 |
) | (1,062 |
) | 531 |
1,062 |
||||||||||||||||
$ | 96,161 |
Net interest |
$ | (310 |
) | $ | (277 |
) | $ | 531 |
$ | 1,062 |
||||||||||||
CAD (3) |
$ | 41,721 |
Income |
$ | 63 |
$ | 146 |
$ | (3 |
) | $ | (6 |
) | |||||||||||
(46,248 |
) | Expense |
(92 |
) | (185 |
) | 92 |
185 |
||||||||||||||||
$ | (4,527 |
) | Net interest |
$ | (29 |
) | $ | (39 |
) | $ | 89 |
$ | 179 |
|||||||||||
Total net interest |
$ | 2,322 |
$ | 8,013 |
$ | (499 |
) | $ | 1,711 |
|||||||||||||||
(1) | Our floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. Increases (decreases) in interest income and expense are presented net of incentive fees. Refer to Note 12 to our consolidated financial statements for additional details of our incentive fee calculation. In addition, $6.1 billion of our loans earned interest based on floors that are above the applicable index as of December 31, 2019. |
(2) | Includes amounts outstanding under secured debt agreements, non-consolidated senior interests, securitized debt obligations, and secured term loans. |
(3) | Liabilities balance includes two interest rate swaps totaling C$17.3 million ($13.3 million as of December 31, 2019) that are used to hedge a portion of our fixed rate debt. |
December 31, 2019 |
||||||||||||||||
Foreign currency assets (1) |
£ | 1,639,881 |
€ |
2,736,673 |
C$ | 105,273 |
A$ | 518,315 |
||||||||
Foreign currency liabilities (1) |
(1,017,239 |
) | (2,122,767 |
) | (77,550 |
) | (379,968 |
) | ||||||||
Foreign currency contracts – notional |
(527,100 |
) | (525,600 |
) | (23,200 |
) | (135,600 |
) | ||||||||
Net exposure to exchange rate fluctuations |
£ | 95,542 |
€ |
88,307 |
C$ | 4,523 |
A$ | 2,747 |
||||||||
(1) | Balances include non-consolidated senior interests of £302.0 million. |
December 31, 2018 |
||||||||||||||||
Foreign currency assets (1) |
£ | 911,524 |
€ |
1,064,476 |
C$ | 435,484 |
A$ | 449,533 |
||||||||
Foreign currency liabilities (1) |
(623,013 |
) | (797,560 |
) | (354,980 |
) | (256,796 |
) | ||||||||
Foreign currency contracts – notional |
(192,300 |
) | (185,000 |
) | (70,600 |
) | (187,600 |
) | ||||||||
Net exposure to exchange rate fluctuations |
£ | 96,211 |
€ |
81,916 |
C$ | 9,904 |
A$ | 5,137 |
||||||||
(1) | Balances include non-consolidated senior interests of £302.0 million. |
ITEM 8. |
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
ITEM 9. |
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. |
CONTROLS AND PROCEDURES |
ITEM 9B. |
OTHER INFORMATION |
ITEM 10. |
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. |
EXECUTIVE COMPENSATION |
ITEM 12. |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Plan category |
(a) Number of securities to be issued upon exercise of outstanding options, warrants, and rights |
(b) Weighted-average exercise price of outstanding options, warrants, and rights |
(c) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) |
|||||||||
Equity compensation plans approved by security holders (1) |
260,066 |
(2) |
$ | — |
3,243,346 |
|||||||
Equity compensation plans not approved by security holders (3) |
— |
— |
— |
|||||||||
|
|
|
|
|
|
|||||||
Total |
260,066 |
$ | — |
3,243,346 |
(1) | The number of securities remaining for future issuances consists of an aggregate 3,243,346 shares issuable under our 2018 stock incentive plan and our 2018 manager incentive plan. Awards under the plans may include restricted stock, unrestricted stock, stock options, stock units, stock appreciation rights, performance shares, performance units, deferred share units, or other equity-based awards, as the board of directors may determine. |
(2) | Reflects deferred stock units granted to our non-employee directors. The deferred stock units are settled upon the non-employee director’s separation from service with the company by delivering to the non-employee director one share of class A common stock for each deferred stock unit settled. As these awards have no exercise price, the weighted average exercise price in column (b) does not take these awards into account. |
(3) | All of our equity compensation plans have been approved by security holders. |
ITEM 13. |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. |
PRINCIPAL ACCOUNTING FEES AND SERVICES |
ITEM 15. |
EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
(a) (1) |
Financial Statements | |||
See the accompanying Index to Financial Statement Schedule on page F-1. | ||||
(a) (2) |
Consolidated Financial Statement Schedules | |||
See the accompanying Index to Financial Statement Schedule on page F-1. | ||||
(a) (3) |
Exhibits |
Exhibit Number |
Exhibit Description | |||||
2.1 |
||||||
3.1.a |
||||||
3.1.b |
||||||
3.1.c |
||||||
3.1.d |
||||||
3.1.e |
||||||
3.1.f |
||||||
3.1.g |
||||||
3.2 |
||||||
4.1 |
* |
|||||
4.2 |
||||||
4.3 |
||||||
4.4 |
||||||
4.5 |
||||||
4.6 |
||||||
10.1 |
Exhibit Number |
Exhibit Description | |||||
10.2 |
||||||
10.3 |
||||||
10.4 |
+ |
|||||
10.5 |
+ |
|||||
10.6 |
+ |
|||||
10.7 |
+ |
|||||
10.8 |
+ |
|||||
10.9 |
+ |
|||||
10.10 |
+ |
|||||
10.11 |
+ |
|||||
10.12 |
+ |
|||||
10.13 |
+ |
|||||
10.14 |
+ |
|||||
10.15 |
+ |
Exhibit Number |
Exhibit Description | |||||
10.16 |
+ |
|||||
10.17 |
+ |
|||||
10.18 |
+ |
|||||
10.19 |
+* |
|||||
10.20 |
+ |
|||||
10.21 |
+* |
|||||
10.22 |
+ |
|||||
10.23 |
||||||
10.24 |
||||||
10.25 |
||||||
10.26 |
||||||
10.27 |
||||||
10.28 |
||||||
10.29 |
Exhibit Number |
Exhibit Description | |||||
10.30 |
||||||
10.31 |
||||||
10.32 |
* |
|||||
10.33 |
||||||
10.34 |
||||||
10.35 |
||||||
10.36 |
* |
|||||
10.37 |
||||||
10.38 |
||||||
10.39 |
||||||
10.40 |
||||||
10.41 |
Exhibit Number |
Exhibit Description | |||||
10.42 |
||||||
10.43 |
||||||
10.44 |
||||||
10.45 |
||||||
10.46 |
||||||
10.47 |
||||||
10.48 |
||||||
10.49 |
||||||
10.50 |
||||||
10.51 |
||||||
10.52 |
||||||
10.53 |
Exhibit Number |
Exhibit Description | |||||
10.54 |
||||||
10.55 |
||||||
10.56 |
||||||
10.57 |
||||||
10.58 |
||||||
10.59 |
||||||
10.60 |
||||||
10.61 |
||||||
10.62 |
||||||
10.63 |
||||||
10.64 |
Exhibit Number |
Exhibit Description | |||||
10.65 |
||||||
10.66 |
||||||
10.67 |
* |
|||||
10.68 |
* |
|||||
10.69 |
||||||
10.70 |
||||||
10.71 |
||||||
10.72 |
||||||
21.1 |
* |
|||||
23.1 |
* |
|||||
31.1 |
* |
|||||
31.2 |
* |
|||||
32.1 |
* |
|||||
32.2 |
* |
|||||
101.INS |
++ |
XBRL Instance Document – the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document | ||||
101.SCH |
++ |
Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL |
++ |
Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.LAB |
++ |
Inline XBRL Taxonomy Extension Label Linkbase Document |
Exhibit Number |
Exhibit Description | |||||
101.PRE |
++ |
Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
101.DEF |
++ |
Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
104 |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith. |
+ | This document has been identified as a management contract or compensatory plan or arrangement. |
++ | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act. |
ITEM 16. |
FORM 10-K SUMMARY |
BLACKSTONE MORTGAGE TRUST, INC. | ||||
February 11, 2020 |
By: |
/s/ Stephen D. Plavin | ||
Date |
Stephen D. Plavin Chief Executive Officer (Principal Executive Officer) |
February 11, 2020 Date |
/s/ Michael B. Nash Michael B. Nash Executive Chairman of the Board of Directors | |||
February 11, 2020 Date |
/s/ Stephen D. Plavin Stephen D. Plavin Chief Executive Officer and Director (Principal Executive Officer) | |||
February 11, 2020 Date |
/s/ Anthony F. Marone, Jr. Anthony F. Marone, Jr. Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||
February 11, 2020 Date |
/s/ Leonard W. Cotton Leonard W. Cotton, Director | |||
February 11, 2020 Date |
/s/ Thomas E. Dobrowksi Thomas E. Dobrowski, Director | |||
February 11, 2020 Date |
/s/ Martin L. Edelman Martin L. Edelman, Director | |||
February 11, 2020 Date |
/s/ Henry N. Nassau Henry N. Nassau, Director | |||
February 11, 2020 Date |
/s/ Jonathan L. Pollack Jonathan L. Pollack, Director | |||
February 11, 2020 Date |
/s/ Lynne B. Sagalyn Lynne B. Sagalyn, Director |
F- 2 |
||||
F- 5 |
||||
F- 6 |
||||
F-7 |
||||
F- 8 |
||||
F- 9 |
||||
F- 11 |
||||
S- 1 |
• | We tested the design and operating effectiveness of controls over identification of impairment indicators, including but not limited to, not making contractual debt service payments, deterioration in underlying property performance, and negative trends in micro- and macro-economic factors. |
• | We evaluated a sample of loans for potential impairment by: |
• | Evaluating the accuracy and determining the relevance of the factors utilized during the Company’s evaluation |
• | Analyzing period over period changes on items such as rental rates, physical conditions of the property, net operating income, debt service coverage ratio, occupancy, cash flow volatility, leasing and tenant profile, loan structure, exit plan, and project sponsorship, to determine impact on loan performance. |
• | Evaluating the financial performance of the collateral associated with each loan |
• | Reviewing the changes in budgets and the summaries of third-party reports, where applicable, for construction loans. |
• | Evaluating the impact of macroeconomic and microeconomic events on the borrower, sponsor, or asset type. |
• | We reviewed the payment history for all loans in the Company’s portfolio to ensure that the borrowers are making contractual payments in accordance with the loan agreements. |
December 31, 2019 |
December 31, 2018 |
|||||||
Assets |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Loans receivable, net |
||||||||
Other assets |
||||||||
Total Assets |
$ | $ | ||||||
Liabilities and Equity |
||||||||
Secured debt agreements, net |
$ | $ | ||||||
Loan participations sold, net |
||||||||
Securitized debt obligations, net |
||||||||
Secured term loan, net |
— |
|||||||
Convertible notes, net |
||||||||
Other liabilities |
||||||||
Total Liabilities |
||||||||
Commitments and contingencies |
— |
|||||||
Equity |
||||||||
Class A common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Accumulated deficit |
( |
) | ( |
) | ||||
Total Blackstone Mortgage Trust, Inc. stockholders’ equity |
||||||||
Non-controlling interests |
||||||||
Total Equity |
||||||||
Total Liabilities and Equity |
$ | $ | ||||||
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Income from loans and other investments |
||||||||||||
Interest and related income |
$ | |
$ | |
$ | |
||||||
Less: Interest and related expenses |
|
|
|
|||||||||
Income from loans and other investments, net |
|
|
|
|||||||||
Other expenses |
||||||||||||
Management and incentive fees |
|
|
|
|||||||||
General and administrative expenses |
|
|
|
|||||||||
Total other expenses |
|
|
|
|||||||||
Income before income taxes |
|
|
|
|||||||||
Income tax (benefit) provision |
( |
) | |
|
||||||||
Net income |
|
|
|
|||||||||
Net income attributable to non-controlling interests |
( |
) | ( |
) | ( |
) | ||||||
Net income attributable to Blackstone Mortgage Trust, Inc. |
$ | |
$ | |
$ | |
||||||
Net income per share of common stock basic and diluted |
$ | |
$ | |
$ | |
||||||
Weighted-average shares of common stock outstanding, basic and diluted |
|
|
|
|||||||||
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Net income |
$ | $ | $ | |||||||||
Other comprehensive income |
||||||||||||
Unrealized gain (loss) on foreign currency translation |
( |
) | ||||||||||
Realized and unrealized (loss) gain on derivative financial instruments |
( |
) | ( |
) | ||||||||
Other comprehensive income (loss) |
( |
) | ||||||||||
Comprehensive income |
||||||||||||
Comprehensive income attributable to non-controlling interests |
( |
) | ( |
) | ( |
) | ||||||
Comprehensive income attributable to Blackstone Mortgage Trust, Inc. |
$ | $ | $ | |||||||||
Blackstone Mortgage Trust, Inc. |
||||||||||||||||||||||||||||
Class A Common Stock |
Additional Paid- In Capital |
Accumulated Other Comprehensive (Loss) Income |
Accumulated Deficit |
Stockholders’ Equity |
Non-Controlling Interests |
Total Equity |
||||||||||||||||||||||
Balance at December 31, 2016 |
$ | ( |
) | ( |
) | — |
$ |
|||||||||||||||||||||
Shares of class A common stock issued, net |
— |
— |
— |
|||||||||||||||||||||||||
Restricted class A common stock earned |
— |
— |
— |
— |
||||||||||||||||||||||||
Issuance of convertible notes |
— |
— |
— |
|||||||||||||||||||||||||
Dividends reinvested |
— |
— |
( |
) | — |
|||||||||||||||||||||||
Deferred directors’ compensation |
— |
— |
— |
— |
||||||||||||||||||||||||
Other comprehensive income |
— |
— |
— |
— |
||||||||||||||||||||||||
Net income |
— |
— |
— |
|||||||||||||||||||||||||
Dividends declared on common stock, $ |
— |
— |
— |
( |
) | ( |
) | — |
( |
) | ||||||||||||||||||
Contributions from non-controlling interests |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Distributions to non-controlling interests |
— |
— |
— |
— |
— |
( |
) | ( |
) | |||||||||||||||||||
Balance at December 31, 2017 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||
Shares of class A common stock issued, net |
— |
— |
— |
|||||||||||||||||||||||||
Restricted class A common stock earned |
— |
— |
— |
— |
||||||||||||||||||||||||
Issuance of convertible notes |
— |
— |
— |
— |
||||||||||||||||||||||||
Conversion of convertible notes |
— |
( |
) | — |
— |
( |
) | — |
( |
) | ||||||||||||||||||
Dividends reinvested |
— |
— |
( |
) | — |
|||||||||||||||||||||||
Deferred directors’ compensation |
— |
— |
— |
— |
||||||||||||||||||||||||
Other comprehensive loss |
— |
— |
( |
) | — |
( |
) | — |
( |
) | ||||||||||||||||||
Net income |
— |
— |
— |
|||||||||||||||||||||||||
Dividends declared on common stock, $ |
— |
— |
— |
( |
) | ( |
) | — |
( |
) | ||||||||||||||||||
Contributions from non-controlling interests |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Distributions to non-controlling interests |
— |
— |
— |
— |
— |
( |
) | ( |
) | |||||||||||||||||||
Balance at December 31, 2018 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||
Shares of class A common stock issued, net |
— |
— |
— |
|||||||||||||||||||||||||
Restricted class A common stock earned |
— |
— |
— |
— |
||||||||||||||||||||||||
Dividends reinvested |
— |
— |
( |
) | — |
|||||||||||||||||||||||
Deferred directors’ compensation |
— |
— |
— |
— |
||||||||||||||||||||||||
Other comprehensive income |
— |
— |
— |
— |
||||||||||||||||||||||||
Net income |
— |
— |
— |
|||||||||||||||||||||||||
Dividends declared on common stock, $ |
— |
— |
— |
( |
) | ( |
) | — |
( |
) | ||||||||||||||||||
Contributions from non-controlling interests |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Distributions to non-controlling interests |
— |
— |
— |
— |
— |
( |
) | ( |
) | |||||||||||||||||||
Balance at December 31, 2019 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Cash flows from operating activities |
||||||||||||
Net income |
$ | |
$ | |
$ | |
||||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||||||
Non-cash compensation expense |
|
|
|
|||||||||
Amortization of deferred fees on loans and debt securities |
( |
) | ( |
) | ( |
) | ||||||
Amortization of deferred financing costs and premiums/ |
|
|
|
|||||||||
Changes in assets and liabilities, net |
||||||||||||
Other assets |
( |
) | ( |
) | ( |
) | ||||||
Other liabilities |
( |
) | |
|
||||||||
Net cash provided by operating activities |
|
|
|
|||||||||
Cash flows from investing activities |
||||||||||||
Origination and fundings of loans receivable |
( |
) | ( |
) | ( |
) | ||||||
Principal collections and sales proceeds from loans receivable and debt securities |
|
|
|
|||||||||
Loan contributed to securitization |
— |
|
— |
|||||||||
Investment in debt securities held-to-maturity |
— |
( |
) | — |
||||||||
Origination and exit fees received on loans receivable |
|
|
|
|||||||||
Receipts under derivative financial instruments |
|
|
|
|||||||||
Payments under derivative financial instruments |
( |
) | ( |
) | ( |
) | ||||||
Collateral deposited under derivative agreements |
( |
) | ( |
) | ( |
) | ||||||
Return of collateral deposited under derivative agreements |
|
|
|
|||||||||
Net cash used in investing activities |
( |
) | ( |
) | ( |
) | ||||||
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Cash flows from financing activities |
||||||||||||
Borrowings under secured debt agreements |
$ | |
$ | |
$ | |
||||||
Repayments under secured debt agreements |
( |
) | ( |
) | ( |
) | ||||||
Proceeds from issuance of collateralized loan obligations |
— |
— |
|
|||||||||
Repayment of collateralized loan obligations |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
Proceeds from sale of loan participations |
|
|
|
|||||||||
Repayment of loan participations |
( |
) | ( |
) | ( |
) | ||||||
Net proceeds from issuance of secured term loan |
|
— |
— |
|||||||||
Repayments of secured term loan |
( |
) | — |
— |
||||||||
Payment of deferred financing costs |
( |
) | ( |
) | ( |
) | ||||||
Contributions from non-controlling interests |
|
|
|
|||||||||
Distributions to non-controlling interests |
( |
) | ( |
) | ( |
) | ||||||
Net proceeds from issuance of convertible notes |
— |
|
|
|||||||||
Repayment of convertible notes |
— |
( |
) | — |
||||||||
Net proceeds from issuance of class A common stock |
|
|
|
|||||||||
Dividends paid on class A common stock |
( |
) | ( |
) | ( |
) | ||||||
Net cash provided by financing activities |
|
|
|
|||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
( |
) | |
||||||||
Cash, cash equivalents, and restricted cash at beginning of year |
|
|
|
|||||||||
Effects of currency translation on cash, cash equivalents, and restricted cash |
( |
) | |
|
||||||||
Cash, cash equivalents, and restricted cash at end of year |
$ | |
$ | |
$ | |
||||||
Supplemental disclosure of cash flows information |
||||||||||||
Payments of interest |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Receipts (payments) of income taxes |
$ | |
$ | ( |
) | $ | ( |
) | ||||
Supplemental disclosure of non-cash investing and financing activities |
||||||||||||
Dividends declared, not paid |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Loan principal payments held by servicer, net |
$ | |
$ | |
$ | |
||||||
Consolidation of loans receivable of a VIE |
$ | — |
$ | — |
$ | |
||||||
Consolidation of securitized debt obligations of a VIE |
$ | — |
$ | — |
$ | ( |
) | |||||
1 – |
Very Low Risk |
2 – |
Low Risk |
3 – |
Medium Risk |
4 – |
High Risk/Potential for Loss: |
5 – |
Impaired/Loss Likely: |
• | Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date. |
• | Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates. |
• | Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third-parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. |
• | Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates fair value. |
• | Loans receivable, net: The fair values of these loans were estimated by our Manager based on a discounted cash flow methodology, taking into consideration various factors including capitalization rates, discount rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and indications of market value from other market participants. |
• | Debt securities held-to-maturity: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. |
• | Derivative financial instruments: The fair value of our foreign currency and interest rate contracts was estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads. |
• | Secured debt agreements, net: The fair value of these instruments was estimated based on the rate at which a similar credit facility would currently be priced. |
• | Loan participations sold, net: The fair value of these instruments was estimated based on the value of the related loan receivable asset. |
• | Securitized debt obligations, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. |
• | Secured term loan, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. |
• | Convertible notes, net: Each series of the convertible notes is actively traded and their fair values were obtained using quoted market prices. |
December 31, 2019 |
December 31, 2018 |
|||||||
Number of loans |
|
|
||||||
Principal balance |
$ | |
$ | |
||||
Net book value |
$ | |
$ | |
||||
Unfunded loan commitments (1) |
$ | |
$ | |
||||
Weighted-average cash coupon (2) |
L + |
% | |
% | ||||
Weighted-average all-in yield(2) |
|
% | |
% | ||||
Weighted-average maximum maturity (years) (3) |
|
|
(1) |
Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date. |
(2) |
The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR, as applicable to each loan. As of December 31, 2019, of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR, and $ billion of such loans earned interest based on floors that are above the applicable index. The other . W e reflect our fixed rate loans as a spread over the relevant floating benchmark rates as of December 31, 2019, and December 31, 2018 for purposes of the weighted-averages. As of December 31, 2018,, respectively, of our loans by total loan exposure earned a floating rate of interest, primarily indexed to USD LIBOR, and $ billion of such loans earned interest based on floors that are above the applicable index. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. |
||
|
(3) | Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of December 31, 2019, |
|
Principal Balance |
Deferred Fees / Other Items (1) |
Net Book Value |
||||||||||
December 31, 2017 |
$ | |
$ | ( |
) | $ | |
|||||
Loan fundings |
|
— |
|
|||||||||
Loan repayments |
( |
) | — |
( |
) | |||||||
Loan contributed to securitization |
( |
) | |
( |
) | |||||||
Unrealized (loss) gain on foreign currency translation |
( |
) | |
( |
) | |||||||
Deferred fees and other items |
— |
( |
) | ( |
) | |||||||
Amortization of fees and other items |
— |
|
|
|||||||||
December 31, 2018 |
$ | |
$ | ( |
) | $ | |
|||||
Loan fundings |
|
— |
|
|||||||||
Loan repayments and sales proceeds |
( |
) | — |
( |
) | |||||||
Unrealized gain (loss) on foreign currency translation |
|
( |
) | |
||||||||
Deferred fees and other items |
— |
( |
) | ( |
) | |||||||
Amortization of fees and other items |
— |
|
|
|||||||||
December 31, 2019 |
$ | |
$ | ( |
) | $ | |
|||||
(1) | Other items primarily consist of purchase discounts or premiums, exit fees, and deferred origination expenses. |
December 31, 2019 |
||||||||||||||||
Property Type |
Number of Loans |
Net Book Value |
Total Loan Exposure (1)(2) |
Percentage of Portfolio |
||||||||||||
Office |
|
$ | |
$ | |
|
% | |||||||||
Hotel |
|
|
|
|
||||||||||||
Multifamily |
|
|
|
|
||||||||||||
Industrial |
|
|
|
|
||||||||||||
Retail |
|
|
|
|
||||||||||||
Self-Storage |
|
|
|
|
||||||||||||
Condominium |
|
|
|
|
||||||||||||
Other |
|
|
|
|
||||||||||||
|
$ | |
$ | |
|
% | ||||||||||
Geographic Location |
Number of Loans |
Net Book Value |
Total Loan Exposure (1)(2) |
Percentage of Portfolio |
||||||||||||
United States |
||||||||||||||||
Northeast |
|
$ | |
$ | |
|
% | |||||||||
West |
|
|
|
|
||||||||||||
Southeast |
|
|
|
|
||||||||||||
Midwest |
|
|
|
|
||||||||||||
Southwest |
|
|
|
|
||||||||||||
Northwest |
|
|
|
— |
||||||||||||
|
|
|||||||||||||||
Subtotal |
|
|
|
|
||||||||||||
International |
||||||||||||||||
United Kingdom |
|
|
|
|
||||||||||||
Ireland |
|
|
|
|
||||||||||||
Spain |
|
|
|
|
||||||||||||
Australia |
|
|
|
|
||||||||||||
Germany |
|
|
|
|
||||||||||||
Italy |
|
|
|
|
||||||||||||
Belgium |
|
|
|
|
||||||||||||
Canada |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France |
|
|
|
|
||||||||||||
|
|
|||||||||||||||
Subtotal |
|
|
|
|
||||||||||||
|
|
|||||||||||||||
Total |
|
$ | |
$ | |
|
% | |||||||||
(1) | 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 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $non-consolidated senior interests as of December 31, 2019. |
|
(2) | Excludes investment exposure to the $ |
|
December 31, 2018 |
||||||||||||||||
Property Type |
Number of Loans |
Net Book Value |
Total Loan Exposure (1)(2) |
Percentage of Portfolio |
||||||||||||
Office |
|
$ | |
$ | |
|
% | |||||||||
Hotel |
|
|
|
|
||||||||||||
Multifamily |
|
|
|
|
||||||||||||
Industrial |
|
|
|
|
||||||||||||
Retail |
|
|
|
|
||||||||||||
Condominium |
|
|
|
|
||||||||||||
Self-Storage |
|
|
|
|
||||||||||||
Other |
|
|
|
|
||||||||||||
|
$ | |
$ | |
|
% | ||||||||||
Geographic Location |
Number of Loans |
Net Book Value |
Total Loan Exposure (1)(2) |
Percentage of Portfolio |
||||||||||||
United States |
||||||||||||||||
Northeast |
|
$ | |
$ | |
|
% | |||||||||
West |
|
|
|
|
||||||||||||
Southeast |
|
|
|
|
||||||||||||
Midwest |
|
|
|
|
||||||||||||
Southwest |
|
|
|
|
||||||||||||
Northwest |
|
|
|
|
||||||||||||
Subtotal |
|
|
|
|
||||||||||||
International |
||||||||||||||||
Spain |
|
|
|
|
||||||||||||
United Kingdom |
|
|
|
|
||||||||||||
Canada |
|
|
|
|
||||||||||||
Australia |
|
|
|
|
||||||||||||
Belgium |
|
|
|
— |
||||||||||||
Germany |
|
|
|
— |
||||||||||||
Netherlands |
|
|
|
— |
||||||||||||
Subtotal |
|
|
|
|
||||||||||||
Total |
|
$ | |
$ | |
|
% | |||||||||
(1) | 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 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $non-consolidated senior interests as of December 31, 2018. |
|
(2) | Excludes investment exposure to the $ |
|
December 31, 2019 |
December 31, 2018 |
|||||||||||||||||||||||||
Risk Rating |
Number of Loans |
Net Book Value |
Total Loan Exposure (1)(2) |
Number of Loans |
Net Book Value |
Total Loan Exposure (1)(2) |
||||||||||||||||||||
1 |
$ |
$ |
$ |
$ |
||||||||||||||||||||||
2 |
||||||||||||||||||||||||||
3 |
||||||||||||||||||||||||||
4 |
— |
— |
— |
|||||||||||||||||||||||
5 |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||
|
$ | $ | $ | $ | ||||||||||||||||||||||
(1) |
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 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $non-consolidated senior interests as of December 31, 2019 and December 31, 2018, respectively. |
(2) |
Excludes investment exposure to the $ |
Net Book Value of Loans Receivable by Year of Origination (1) |
||||||||||||||||||||||||||||||
December 31, 2019 |
||||||||||||||||||||||||||||||
Risk Rating |
2019 |
2018 |
2017 |
2016 |
2015 |
Prior |
Total |
|||||||||||||||||||||||
1 |
$ | $ | $ | $ | $ |
— |
$ | — |
$ | |||||||||||||||||||||
2 |
||||||||||||||||||||||||||||||
3 |
||||||||||||||||||||||||||||||
4 |
— |
— |
— |
|||||||||||||||||||||||||||
5 |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
$ | $ | $ | $ | $ |
$ |
$ |
(1) |
Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications. |
December 31, 2019 |
December 31, 2018 |
|||||||
Debt securities held-to-maturity (1) |
$ | $ | ||||||
Accrued interest receivable |
||||||||
Loan portfolio payments held by servicer (2) |
||||||||
Collateral deposited under derivative agreements |
— |
|||||||
Derivative assets |
||||||||
Prepaid expenses |
||||||||
Prepaid taxes |
||||||||
Other |
||||||||
Total |
$ | $ | ||||||
(1) | Represents the subordinate risk retention interest in the 2018 Single Asset Securitization , which held aggregate loan assets of $ as of December 31, 2019 and December 31, 2018, respectively, with a yield to full maturity of L+ |
(2) | Represents loan principal and interest payments held by our third-party loan servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle. |
December 31, 2019 |
December 31, 2018 |
|||||||
Accrued dividends payable |
$ | $ | ||||||
Derivative liabilities |
||||||||
Accrued interest payable |
||||||||
Accrued management and incentive fees payable |
||||||||
Accounts payable and other liabilities |
||||||||
Total |
$ | $ | ||||||
Secured Debt Agreements Borrowings Outstanding |
||||||||
December 31, 2019 |
December 31, 2018 |
|||||||
Secured credit facilities |
$ | |
$ | |
||||
Asset-specific financings |
|
|
||||||
Revolving credit agreement |
— |
|
||||||
Total secured debt agreements |
$ |
|
$ | |
||||
Deferred financing costs (1) |
( |
) | ( |
) | ||||
Net book value of secured debt |
$ | |
$ | |
||||
(1) | Costs incurred in connection with our secured debt agreements are recorded on our consolidated balance sheet when incurred and recognized as a component of interest expense over the life of each related agreement. |
December 31, 2019 |
||||||||||||||||||||
Credit Facility Borrowings |
Collateral Assets (2) |
|||||||||||||||||||
Lender |
Potential (1) |
Outstanding |
Available (1) |
|||||||||||||||||
Wells Fargo |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Deutsche Bank |
|
|
|
|
||||||||||||||||
Barclays |
|
|
|
|
||||||||||||||||
Citibank |
|
|
|
|
||||||||||||||||
Bank of America |
|
|
|
|
||||||||||||||||
Morgan Stanley |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Goldman Sachs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
MetLife |
|
|
— |
|
||||||||||||||||
Société Générale |
|
|
— |
|
||||||||||||||||
US Bank - Multi. JV (3) |
|
|
|
|
||||||||||||||||
JP Morgan |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Santander |
|
|
— |
|
||||||||||||||||
Goldman Sachs - Multi. JV (3) |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
| |||
Bank of America - Multi. JV (3) |
|
|
— |
|
||||||||||||||||
$ | |
$ | |
$ | |
$ | |
|||||||||||||
(1) |
Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility. |
(2) |
Represents the principal balance of the collateral assets. |
(3) |
These facilities finance the loan investments of our consolidated Multifamily Joint Venture. Refer to Note 2 for additional discussion of our Multifamily Joint Venture. |
December 31, 2018 |
||||||||||||||||||||
Credit Facility Borrowings |
Collateral Assets (2) |
|||||||||||||||||||
Lender |
Potential (1) |
Outstanding |
Available (1) |
|||||||||||||||||
Deutsche Bank |
$ | |
$ | |
$ | — |
$ | |
||||||||||||
Wells Fargo |
|
|
|
|
||||||||||||||||
JP Morgan |
|
|
— |
|
||||||||||||||||
Barclays |
|
|
— |
|
||||||||||||||||
Citibank |
|
|
|
|
||||||||||||||||
Bank of America |
|
|
— |
|
||||||||||||||||
MetLife |
|
|
— |
|
||||||||||||||||
Morgan Stanley |
|
|
|
|
||||||||||||||||
Société Générale |
|
|
— |
|
||||||||||||||||
Goldman Sachs |
|
|
— |
|
||||||||||||||||
Goldman Sachs - Multi. JV (3) |
|
|
— |
|
||||||||||||||||
Bank of America - Multi. JV (3) |
|
|
— |
|
||||||||||||||||
$ | |
$ | |
$ | |
$ | |
|||||||||||||
(1) |
Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility. |
(2) |
Represents the principal balance of the collateral assets. |
(3) |
These facilities finance the loan investments of our consolidated Multifamily Joint Venture. Refer to Note 2 for additional discussion of our Multifamily Joint Venture. |
Lender |
Currency |
Guarantee (1) |
Margin Call (2) |
Term/Maturity |
||||||||||||
Morgan Stanley |
$ / £ / € |
% |
||||||||||||||
Goldman Sachs - Multi. JV (3) |
$ |
% |
(6) |
|||||||||||||
Bank of America - Multi. JV (3) |
$ |
% |
(7) |
|||||||||||||
Goldman Sachs |
$ |
% |
(8) |
|||||||||||||
JP Morgan |
$ / £ |
% |
(9) |
|||||||||||||
Bank of America |
$ |
% |
(10) |
|||||||||||||
Barclays |
$ / £ / € |
% |
(11) |
|||||||||||||
MetLife |
$ |
% |
(12) |
|||||||||||||
Deutsche Bank |
$ / € |
% (4) |
(13) |
|||||||||||||
Citibank |
$ / £ / € / A$ / C$ |
% |
(13) |
|||||||||||||
Société Générale |
$ / £ / € |
% |
(13) |
|||||||||||||
Santander |
€ |
% |
(13) |
|||||||||||||
Wells Fargo |
$ / C$ |
% (5) |
(13) |
|||||||||||||
US Bank - Multi. JV (3) |
$ |
% |
(13) |
(1) | Other than amounts guaranteed based on specific collateral asset types, borrowings under our credit facilities are non-recourse to us. |
(2) | Margin call provisions under our credit facilities do not permit valuation adjustments based on capital markets events, and are limited to collateral-specific credit marks. |
(3) | These facilities finance the loan investments of our consolidated Multifamily Joint Venture. Refer to Note 2 for additional discussion of our Multifamily Joint Venture. |
(4) | Specific borrowings outstanding of $ . The remainder of the credit facility borrowings are |
(5) | In addition to the |
(6) | Includes a one-year extension option which may be exercised at our sole discretion. |
(7) | Includes two one-year extension options which may be exercised at our sole discretion. |
(8) | Includes two one-year extension options which may be exercised at our sole discretion. |
(9) | Includes two one-year extension options which may be exercised at our sole discretion. |
(10) | Includes two one-year extension options which may be exercised at our sole discretion. |
(11) |
Includes four one-year extension options which may be exercised at our sole discretion. |
(12) | Includes five one-year extension options which may be exercised at our sole discretion. |
(13) | These secured credit facilities have various availability periods during which new advances can be made and which are generally subject to each lender’s discretion. Maturity dates for advances outstanding are tied to the term of each respective collateral asset. |
Currency |
Potential Borrowings (1) |
Outstanding Borrowings |
Floating Rate Index (2) |
Spread |
Advance Rate (3) |
|||||||||||||||||
$ |
$ |
$ |
USD LIBOR |
|||||||||||||||||||
€ |
€ |
€ |
EURIBOR |
|||||||||||||||||||
£ |
£ |
£ |
GBP LIBOR |
|||||||||||||||||||
A$ |
A$ |
A$ |
BBSY |
|||||||||||||||||||
C$ |
C$ |
C$ |
CDOR |
|||||||||||||||||||
$ |
$ |
|||||||||||||||||||||
(1) |
Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility. |
(2) |
Floating rate indices are generally matched to the payment timing under the terms of each secured credit facility and its respective collateral assets. |
(3) |
Represents weighted-average advance rate based on the approved outstanding principal balance of the collateral assets pledged. |
December 31, 2019 |
||||||||||||||||||||||||
Asset-Specific Financings |
Count |
Principal Balance |
Book Value |
Wtd. Avg. Yield/Cost (1) |
Guarantee (2) |
Wtd. Avg. Term (3) |
||||||||||||||||||
Collateral assets |
$ | $ | L+ |
% | n/a |
|||||||||||||||||||
Financing provided |
$ | $ | L+ |
% | $ |
December 31, 2018 |
||||||||||||||||||||||||
Asset-Specific Financings |
Count |
Principal Balance |
Book Value |
Wtd. Avg. Yield/Cost (1) |
Guarantee (2) |
Wtd. Avg. Term (3) |
||||||||||||||||||
Collateral assets |
$ | $ | L+ |
% | n/a |
|||||||||||||||||||
Financing provided |
$ | $ | L+ |
% | $ |
— |
(1) | These floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs. |
(2) | Other than amounts guaranteed on an asset-by-asset basis, borrowings under our asset-specific financings are non-recourse to us. |
(3) | The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrower. Each of our asset-specific financings is term-matched to the corresponding collateral loans. |
December 31, 2018 |
||||||||||||||||||||||||
Loan Participations Sold |
Count |
Principal Balance |
Book Value |
Yield/Cost (1) |
Guarantee (2) |
Term |
||||||||||||||||||
Total loan |
$ | $ | L+ |
% | ||||||||||||||||||||
Senior participation (3) |
L+ |
% | $ |
— |
(1) | Our floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred fees / financing costs. |
(2) |
As of December 31, 2018, our loan participations sold were non-recourse to us. |
(3) |
The difference between principal balance and book value of loan participations sold is due to deferred financing costs of $ |
December 31, 2019 |
||||||||||||||||||||
Securitized Debt Obligations |
Count |
Principal Balance |
Book Value |
Wtd. Avg. Yield/Cost (1) |
Term (2) |
|||||||||||||||
Collateralized Loan Obligation |
||||||||||||||||||||
Collateral assets |
$ | $ | L+ |
% | ||||||||||||||||
Financing provided |
L+ |
% | ||||||||||||||||||
2017 Single Asset Securitization |
||||||||||||||||||||
Collateral assets (3) |
L+ |
% | ||||||||||||||||||
Financing provided |
L+ |
% | ||||||||||||||||||
Total |
||||||||||||||||||||
Collateral assets |
$ | $ | L+ |
% | ||||||||||||||||
Financing provided (4) |
$ | $ | L+ |
% | ||||||||||||||||
December 31, 2018 |
||||||||||||||||||||
Securitized Debt Obligations |
Count |
Principal Balance |
Book Value |
Wtd. Avg. Yield/Cost (1) |
Term (2) |
|||||||||||||||
Collateralized Loan Obligation |
||||||||||||||||||||
Collateral assets |
$ | $ | L + |
% | ||||||||||||||||
Financing provided |
L+ |
% | ||||||||||||||||||
2017 Single Asset Securitization |
||||||||||||||||||||
Collateral assets (3) |
L+ |
% | ||||||||||||||||||
Financing provided |
L+ |
% | ||||||||||||||||||
Total |
||||||||||||||||||||
Collateral assets |
$ | $ | L + |
% | ||||||||||||||||
Financing provided (4) |
$ | $ | L+ |
% | ||||||||||||||||
(1) | As of December 31, 2019, all of our loans financed by securitized debt obligations earned a floating rate of interest. As of December 31, 2018, The other In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees. All-in yield for the total portfolio assume applicable floating benchmark rates for weighted-average calculation. |
(2) |
Loan term represents weighted-average final maturity, assuming all extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations. |
(3) |
The collateral assets for the 2017 Single Asset Securitization include the total loan amount, of which we securitized $ |
(4) |
During the years ended December 31, 2019 and 2018, we recorded $ |
Term Loan Issuance |
Face Value |
Interest Rate |
All-in Cost(1) |
Maturity |
||||||||||||
Term Loan B |
$ |
|
|
% | |
% | |
(1) | Includes issue discount and transaction expenses that are amortized through interest expense over the life of the Secured Term Loan. |
Convertible Notes Issuance |
Face Value |
Coupon Rate |
All-in Cost(1) |
Conversion Rate (2) |
Maturity |
|||||||||||||||
|
$ |
|
|
% | |
% | |
|
||||||||||||
|
$ | |
|
% | |
% | |
|
(1) | Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the effective interest method. |
(2) | Represents the shares of class A common stock per $ |
December 31, 2019 |
December 31, 2018 |
|||||||
Face value |
$ | |
$ | |
||||
Unamortized discount |
( |
) | ( |
) | ||||
Deferred financing costs |
( |
) | ( |
) | ||||
Net book value |
$ | |
$ | |
||||
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Cash coupon |
$ | |
$ | |
$ | |
||||||
Discount and issuance cost amortization |
|
|
|
|||||||||
Total interest expense |
$ | |
$ | |
$ | |
||||||
December 31, 2019 |
December 31, 2018 |
||||||||||||||||||
Foreign Currency Derivatives |
Number of Instruments |
Notional Amount |
Foreign Currency Derivatives |
Number of Instruments |
Notional Amount |
||||||||||||||
Sell GBP Forward |
£ |
Sell GBP Forward |
£ | ||||||||||||||||
Sell EUR Forward |
€ |
Sell AUD Forward |
A$ | ||||||||||||||||
Sell AUD Forward |
A$ |
Sell EUR Forward |
€ |
||||||||||||||||
Sell CAD Forward |
C$ |
Sell CAD Forward |
C$ |
December 31, 2019 |
||||||||||||||||||||
Interest Rate Derivatives |
Number of Instruments |
Notional Amount |
Strike |
Index |
Wtd.-Avg. Maturity (Years) |
|||||||||||||||
Interest Rate Swaps |
C$ |
% |
CDOR |
|||||||||||||||||
Interest Rate Caps |
C$ |
% |
CDOR |
|||||||||||||||||
December 31, 2018 |
||||||||||||||||||||
Interest Rate Derivatives |
Number of Instruments |
Notional Amount |
Strike |
Index |
Wtd.-Avg. Maturity (Years) |
|||||||||||||||
Interest Rate Swap |
C$ |
% |
CDOR |
|||||||||||||||||
Interest Rate Caps |
$ |
% |
USD LIBOR |
|||||||||||||||||
Interest Rate Caps |
C$ |
% |
CDOR |
December 31, 2019 |
||||||||
Non-designated Hedges |
Number of Instruments |
Notional Amount |
||||||
Buy CAD / Sell USD Forward |
C$ |
|||||||
Buy USD / Sell CAD Forward |
C$ |
|||||||
Buy GBP / Sell EUR Forward |
€ |
|||||||
Buy AUD / Sell USD Forward |
A$ |
|||||||
Buy USD / Sell AUD Forward |
A$ |
|||||||
December 31, 2018 |
||||||||
Non-designated Hedges |
Number of Instruments |
Notional Amount |
||||||
Buy AUD / Sell USD Forward |
A$ | |||||||
Buy USD / Sell AUD Forward |
A$ | |||||||
Buy GBP / Sell USD Forward |
£ | |||||||
Buy USD / Sell GBP Forward |
£ | |||||||
Buy GBP / Sell EUR Forward |
€ |
Fair Value of Derivatives in an Asset Position (1) as of |
Fair Value of Derivatives in a Liability Position (2) as of |
|||||||||||||||
December 31, 2019 |
December 31, 2018 |
December 31, 2019 |
December 31, 2018 |
|||||||||||||
Derivatives designated as hedging instruments: |
||||||||||||||||
Foreign exchange contracts |
$ | — |
$ | $ | $ | |||||||||||
Interest rate derivatives |
— |
— |
||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
Derivatives not designated as hedging instruments: |
||||||||||||||||
Foreign exchange contracts |
$ | $ | $ | $ | ||||||||||||
Interest rate derivatives |
— |
— |
— |
— |
||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
Total Derivatives |
$ | $ | $ | $ | ||||||||||||
(1) | Included in other assets in our consolidated balance sheets. |
(2) | Included in other liabilities in our consolidated balance sheets. |
Derivatives in Hedging Relationships |
Amount of (Loss) Gain Recognized in OCI on Derivatives |
Location of Gain (Loss) Reclassified from |
Amount of Loss Reclassified from Accumulated OCI into Income |
|||||||||||||||||||||||||
Year Ended December 31, |
Accumulated |
Year Ended December 31, |
||||||||||||||||||||||||||
2019 |
2018 |
2017 |
OCI into Income |
2019 |
2018 |
2017 |
||||||||||||||||||||||
Net Investment Hedges |
||||||||||||||||||||||||||||
Foreign exchange contracts (1) |
$ | ( |
) | $ | |
$ | ( |
) | Interest Expense |
$ | — |
$ | — |
$ | — |
|||||||||||||
Cash Flow Hedges |
||||||||||||||||||||||||||||
Interest rate derivatives |
( |
) | ( |
) | |
Interest Expense |
(2) |
|
|
( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
$ | ( |
) | $ | |
$ | ( |
) | $ |
|
$ |
|
$ |
( |
) | |||||||||||||
(1) | During the years ended December 31, 2019an we received net cash settlements of $d December 31, 2018 , and $ on our foreign currency forward contracts. During the year ended December 31, 2017, we paid net cash settlements of $ |
(2) | During the year s ended December 31, 2019 and December 31, 2018, we recorded total interest and related expenses of $ and $ , which were $reduced by $ and , related to income generated by our cash flow hedges. During the year ended December 31, respectiv ely, $ s of $ |
Class A Common Stock Offerings |
||||||||||||
2019 (1) |
2018 (2) |
2017 |
||||||||||
Shares issued |
|
|
|
|||||||||
Gross share issue price (3) |
$ | |
$ | |
$ | |
||||||
Net share issue price (4) |
$ | |
$ | |
$ | |
||||||
Net proceeds (5) |
$ | |
$ | |
$ | |
(1) | Issuance includes at-the-market program, with a weighted- average gross share |
(2) | Issuance includes at-the-market program, with a weighted- average gross s issue price of $hare |
(3) | Represents the weighted-average gross price per share paid by the underwriters or sales agents, as applicable. |
(4) | Represents the weighted-average net proceeds per share after underwriting or sales discounts and commissions. |
(5) | Net proceeds represents proceeds received from the underwriters less applicable transaction costs. |
Year Ended December 31, |
||||||||||||
Common Stock Outstanding (1) |
2019 |
2018 |
2017 |
|||||||||
Beginning balance |
|
|
|
|||||||||
Issuance of class A common stock (2) |
|
|
|
|||||||||
Issuance of restricted class A common stock, net |
|
|
|
|||||||||
Issuance of deferred stock units |
|
|
|
|||||||||
|
|
|
|
|
|
|||||||
Ending balance |
|
|
|
|||||||||
(1) | Includes deferred stock units held by members of our board of directors of |
(2) | Includes |
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Dividends declared per share of common stock |
$ | |
$ | |
$ | |
||||||
Percent taxable as ordinary dividends |
|
% | |
% | |
% | ||||||
Percent taxable as capital gain dividends |
|
% | |
% | |
% | ||||||
|
% | |
% | |
% |
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Net income (1) |
$ | |
$ | |
$ | |
||||||
Weighted-average shares outstanding, basic and diluted |
|
|
|
|||||||||
|
|
|
|
|
|
|||||||
Per share amount, basic and diluted |
$ | |
$ | |
$ | |
||||||
(1) | Represents net income attributable to Blackstone Mortgage Trust. |
Year Ended December 31, |
||||||||||||
2019 |
2018 |
2017 |
||||||||||
Professional services (1) |
$ | |
$ | |
$ | |
||||||
Operating and other costs (1) |
|
|
|
|||||||||
Subtotal |
|
|
|
|||||||||
Non-cash compensation expenses |
||||||||||||
Restricted class A common stock earned |
|
|
|
|||||||||
Director stock-based compensation |
|
|
|
|||||||||
Subtotal |
|
|
|
|||||||||
Total BXMT expenses |
|
|
|
|||||||||
Other expenses |
— |
— |
|
|||||||||
Total general and administrative expenses |
$ |
|
$ |
|
$ |
|
||||||
(1) | During the years ended December 31, 2019, 2018, and 2017, respectiv we recognized an aggregate $ely, , , and $ Such amounts are included in our consolidated general and administrative exp enses. |
Restricted Class A Common Stock |
Weighted-Average Grant Date Fair Value Per Share |
|||||||
Balance as of December 31, 2017 |
|
$ | |
|||||
Granted |
|
|
||||||
Vested |
( |
) | |
|||||
Forfeited |
( |
) | |
|||||
Balance as of December 31, 2018 |
|
$ | |
|||||
Granted |
|
|
||||||
Vested |
( |
) | |
|||||
Forfeited |
( |
) | |
|||||
Balance as of December 31, 2019 |
|
$ | |
|||||
December 31, 2019 |
December 31, 2018 |
|||||||||||||||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||
Derivatives |
$ | — |
$ | |
$ | — |
$ | |
$ | — |
$ | |
$ | — |
$ | |
||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||
Derivatives |
$ | — |
$ | |
$ | — |
$ | |
$ | — |
$ | |
$ | — |
$ | |
December 31, 2019 |
December 31, 2018 |
|||||||||||||||||||||||
Book Value |
Amount |
Fair Value |
Book Value |
Face Amount |
Fair Value |
|||||||||||||||||||
Financial assets |
||||||||||||||||||||||||
Cash and cash equivalents |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Loans receivable, net |
||||||||||||||||||||||||
Debt securities held-to-maturity (1) |
||||||||||||||||||||||||
Financial liabilities |
||||||||||||||||||||||||
Secured debt agreements, net |
||||||||||||||||||||||||
Loan participations sold, net |
— |
— |
— |
|||||||||||||||||||||
Securitized debt obligations, net |
||||||||||||||||||||||||
Secured term loan, net |
— |
— |
— |
|||||||||||||||||||||
Convertible notes, net |
(1) | Included in other assets on our consolidated balance sheets. |
December 31, 2019 |
December 31, 2018 |
|||||||
Assets: |
||||||||
Loans receivable, net |
$ | $ | ||||||
Other assets |
||||||||
Total assets |
$ | $ | ||||||
Liabilities: |
||||||||
Securitized debt obligations, net |
$ | $ | ||||||
Other liabilities |
||||||||
Total liabilities |
$ | $ | ||||||
Payment Timing |
||||||||||||||||||||
Total Obligation |
Less Than 1 |
1 to 3 Years |
3 to 5 Years |
More Than 5 Years |
||||||||||||||||
Principal repayments under secured debt agreements (1) |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Principal repayments of secured term loans (2) |
|
|
|
|
|
|||||||||||||||
Principal repayments of convertible notes (3) |
|
— |
|
|
— |
|||||||||||||||
Total (4) |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
(1) |
The allocation of repayments under our secured debt agreements is based on the earlier of (i) the maturity date of each facility, or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. |
(2) |
The Secured Term Loan is partially amortizing, with an amount equal to % per annum of the principal balance due in quarterly installments. Refer to Note 8 for further details on our secured term loan. |
(3) |
Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer to Note 9 for further details on our Convertible Notes. |
(4) |
Does not include $ million of non-consolidated senior interests and $ billion of securitized debt obligations, as the satisfaction of these liabilities will not require cash outlays from us. |
March 31 |
June 30 |
September 30 |
December 31 |
|||||||||||||
2019 |
||||||||||||||||
Income from loans and other investments, net |
$ | |
$ | |
$ | |
$ | |
||||||||
Net income |
$ | |
$ | |
$ | |
$ | |
||||||||
Net income attributable to |
||||||||||||||||
Blackstone Mortgage Trust, Inc. |
$ | |
$ | |
$ | |
$ | |
||||||||
Net income per share of class A common stock: |
||||||||||||||||
Basic and diluted |
$ | |
$ | |
$ | |
$ | |
||||||||
2018 |
||||||||||||||||
Income from loans and other investments, net |
$ | |
$ | |
$ | |
$ | |
||||||||
Net income |
$ | |
$ | |
$ | |
$ | |
||||||||
Net income attributable to |
||||||||||||||||
Blackstone Mortgage Trust, Inc. |
$ | |
$ | |
$ | |
$ | |
||||||||
Net income per share of class A common stock: |
||||||||||||||||
Basic and diluted |
$ | |
$ | |
$ | |
$ | |
Type of Loan/Borrower |
Description / Location |
Interest Payment Rates (2) |
Maximum Maturity Date (3) |
Periodic Payment Terms (4) |
Prior Liens (5) |
Face Amount of Loans |
Carrying Amount of Loans (6) |
|||||||||||||||||||||
Senior Mortgage Loans (1) |
||||||||||||||||||||||||||||
Senior loans in excess of 3% of the carrying amount of total loans |
||||||||||||||||||||||||||||
Borrower A |
Office / Ireland |
|
|
|
$ |
— |
$ |
|
$ |
|
||||||||||||||||||
Borrower B |
Mixed-Use / Spain |
|
|
|
— |
|
|
|||||||||||||||||||||
Borrower C |
Office / Southeast |
|
|
|
— |
|
|
|||||||||||||||||||||
Borrower D |
Office / Northeast |
|
|
|
— |
|
|
|||||||||||||||||||||
Senior loans less than 3% of the carrying amount of total loans |
||||||||||||||||||||||||||||
Senior mortgage loans |
Office / Diversified |
|
|
|
— |
|
|
|||||||||||||||||||||
Fixed |
||||||||||||||||||||||||||||
Senior mortgage loans |
Hotel / Diversified |
|
|
|
— |
|
|
|||||||||||||||||||||
Senior mortgage loans |
Multifamily / Diversified |
|
|
|
— |
|
|
|||||||||||||||||||||
Senior mortgage loans |
Mixed-Use / Diversified |
|
|
|
— |
|
|
|||||||||||||||||||||
Senior mortgage loans |
Industrial / Diversified |
|
|
|
— |
|
|
|||||||||||||||||||||
Senior mortgage loans |
Other / Diversified |
|
|
|
— |
|
|
|||||||||||||||||||||
Fixed |
||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
— |
|
|
||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Total senior mortgage loans |
$ |
— |
$ |
|
$ |
|
||||||||||||||||||||||
|
|
Type of Loan/Borrower |
Description / Location |
Interest Payment Rates (2) |
Maximum Maturity Date (3) |
Periodic Payment Terms (4) |
Prior Liens (5) |
Face Amount of Loans |
Carrying Amount of Loans (6) |
|||||||||||||||||||||
Subordinate Loans (7) |
||||||||||||||||||||||||||||
Subordinate loans less than 3% of the carrying amount of total loans |
||||||||||||||||||||||||||||
Subordinate loans |
Various / Diversified |
|
|
|
|
|
|
|||||||||||||||||||||
Fixed |
||||||||||||||||||||||||||||
Total subordinate loans |
|
|
|
|||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Total loans |
$ | |
$ | |
$ | |
||||||||||||||||||||||
(1) |
Includes senior mortgages and similar credit quality loans, including related contiguous subordinate loans, and pari passu participations in senior mortgage loans. |
(2) |
The interest payment rates are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR, as applicable to each loan. |
(3) |
Maximum maturity date assumes all extension options are exercised. |
(4) | I/O = interest only, P/I = principal and interest. |
(5) | Represents only third party liens. |
(6) | The tax basis of the loans included above is $ |
(7) | Includes subordinate interests in mortgages and mezzanine loans. |
1. |
Reconciliation of Mortgage Loans on Real Estate: |
2019 |
2018 |
2017 |
||||||||||
Balance at January 1, |
$ | |
$ | |
$ | |
||||||
Additions during period: |
||||||||||||
Loan fundings |
|
|
|
|||||||||
Amortization of fees and other items |
|
|
|
|||||||||
Deductions during period: |
||||||||||||
Loan repayments and sales proceeds |
( |
) | ( |
) | ( |
) | ||||||
Loan contributed to securitization |
— |
( |
) | — |
||||||||
Unrealized gain (loss) on foreign currency translation |
|
( |
) | |
||||||||
Deferred fees and other items |
( |
) | ( |
) | ( |
) | ||||||
Loans sold |
|
— |
— |
|||||||||
Balance at December 31, |
$ | |
$ | |
$ | |
||||||