8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 11, 2020

Blackstone Mortgage Trust, Inc.

(Exact name of registrant as specified in its charter)

Maryland	1-14788	94-6181186
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

345 Park Avenue, 42nd Floor

New York, New York 10154

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (212) 655-0220

Not Applicable

(Former Name or Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Item 2.02 Results of Operations and Financial Condition.

On February 11, 2020, Blackstone Mortgage Trust, Inc. (the “Company”) issued a press release and detailed presentation announcing its financial results for the fourth quarter and full year ended December 31, 2019. The press release and full detailed presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information contained under Item 2.02 in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and will not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.		Description
	99.1	Press Release of Blackstone Mortgage Trust, Inc. dated February 11, 2020.
	99.2	Presentation of Blackstone Mortgage Trust, Inc. dated February 11, 2020.
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BLACKSTONE MORTGAGE TRUST, INC.
Date: February 11, 2020
	By:	/s/ Anthony F. Marone, Jr.
	Name:	Anthony F. Marone, Jr.
	Title:	Chief Financial Officer

EX-99.1

Exhibit 99.1

Blackstone Mortgage Trust Reports

Fourth Quarter and Full Year 2019 Results

New York, February 11, 2020: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its fourth quarter and full year 2019 results. Full year EPS, Core EPS, and dividends paid per share were $2.35, $2.70, and $2.48 respectively.

Stephen D. Plavin, Chief Executive Officer, said, “Strong performance on both sides of the balance sheet drove outstanding 4Q and 2019 results. The $3.0 billion of fourth quarter originations took our total portfolio to a record size of $17.9 billion while we continued to improve the efficiency and structure of our financing. Dividend coverage of 109% from full year Core Earnings demonstrates the quality of our dividend, generated from our large scale, senior lending business.”

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

Quarterly Investor Call Details

Blackstone Mortgage Trust will host a conference call on Wednesday, February 12, 2020 at 10:00 a.m. ET to discuss fourth quarter and full year 2019 results. The conference call can be accessed by dialing +1 (877) 299-4454 (U.S. domestic) or +1 (617) 597-5447 (international), with the passcode 245-054-61# or by webcast at www.bxmt.com (listen only). For those unable to listen to the live broadcast, a recorded replay will be available on the company’s website or by telephone beginning approximately two hours after the event. The replay call number is +1 (888) 286-8010 (U.S. domestic) or +1 (617) 801-6888 (international), with the passcode 829-145-67#.

About Blackstone Mortgage Trust

Blackstone Mortgage Trust (NYSE:BXMT) is a real estate finance company that originates senior loans collateralized by commercial real estate in North America, Europe, and Australia. Our investment objective is to preserve and protect shareholder capital while producing attractive risk-adjusted returns primarily through dividends generated from current income from our loan portfolio. We are externally managed by BXMT Advisors L.L.C., a subsidiary of Blackstone. Further information is available at www.bxmt.com.

Blackstone Mortgage Trust, Inc.

345 Park Avenue

New York, New York 10154

T 212 655 0220

About Blackstone

Blackstone (NYSE:BX) is one of the world’s leading investment firms. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies it invests in, and the communities in which it works. Blackstone does this by using extraordinary people and flexible capital to help companies solve problems. Blackstone’s asset management businesses, with $571 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

Forward-Looking Statements and Other Matters

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect Blackstone Mortgage Trust’s current views with respect to, among other things, Blackstone Mortgage Trust’s operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Blackstone Mortgage Trust believes these factors include but are not limited to those described under the section entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as such factors may be updated from time to time in its periodic filings with the Securities and Exchange Commission (“SEC”) which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the filings. Blackstone Mortgage Trust assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances.

We refer to “Core Earnings,” which is a non-GAAP financial measure, in this release. A reconciliation to net income attributable to Blackstone Mortgage Trust, the most directly comparable GAAP measure, is included in our full detailed presentation of fourth quarter and full year 2019 results and is available on our website at www.bxmt.com.

Investor and Public Affairs Contacts

Investor Relations Blackstone +1 (888) 756-8443 BlackstoneShareholderRelations@Blackstone.com Public Affairs Blackstone +1 (212) 583-5263 PressInquiries@Blackstone.com

EX-99.2

Blackstone Mortgage Trust, Inc.

February 11, 2020

Fourth Quarter and Full Year 2019 Results

Exhibit 99.2

Blackstone Mortgage Trust

1

$15.8

$17.9

YE 2018

YE 2019

BXMT Highlights

Information included in this presentation is as of or for the period ended December 31, 2019, unless otherwise indicated.

(a)

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

(b)

Based on annualized dividend and BXMT closing price as of February 10, 2020.

(c)

Reflects ratio of Core Earnings to dividends declared.

(d)

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

(e)

Includes $689 million of Non-Consolidated Senior Interests as of December 31, 2019 and investment exposure to the $930 million 2018 Single Asset Securitization through an $89 million

subordinate risk retention interest.

+$2.1bn

($ in billions)

Portfolio Growth

(e)

2019

Dividend

Coverage

(c)

Dividend

Yield

(b)

109%

6.4%

100%

64%

Performing

Loans

Loan-to-Value

(d)(e)

BXMT

generated

4Q

EPS

of

$0.59

and

Core

EPS

(a)

of

$0.68,

reflecting

the

continued

strong

performance

of

its

first

mortgage

origination

business;

2019

full

year

EPS

of

$2.35,

Core

EPS

of

$2.70,

and

dividends

paid

of

$2.48

per

share

Blackstone Mortgage Trust

2

Originations

Originations

4Q

originations

of

$3.0

billion

across

17

(b)

transactions

Originated

48

(b)

loans

in

2019

resulting

in

volume

of

$8.6

billion,

with

a

weighted

average

origination

LTV

(c)

of

65%;

38%

of

2019

originations

from

Europe

Earnings &

Dividends

Earnings &

Dividends

4Q

EPS

of

$0.59

and

Core

Earnings

(a)

per

share

of

$0.68

($2.35

and

$2.70,

respectively,

for

full

year

2019);

109%

dividend

coverage

Book

value

per

share

of

$27.82,

up

$0.62

in

2019;

paid

$0.62

per

share

dividend

Fourth Quarter and Full Year 2019 Results

Portfolio

Composition

Portfolio

Composition

Capitalization

Capitalization

Interest Rates

Interest Rates

Portfolio

grew

13%

in

2019

to

$17.9

billion

(d)

with

$2.1

billion

of

net

fundings

over

the

year,

and

$1.4

billion

in

4Q

2019

100%

performing

portfolio

with

a

weighted

average

origination

LTV

(c)(d)

of

64%

$12.8

billion

(e)

of

outstanding

asset-level

financing

on

a

market

leading,

match-

funded

basis;

increased

capacity

by

$3.7

billion

during

the

year

Increased

Term

Loan

B

by

$250

million

to

$747

million

while

reducing

the

rate

from

L+250bps

to

L+225bps

(a)

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

(b)

Excluding upsizes.

(c)

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

(d)

Includes $689 million of Non-Consolidated Senior Interests as of December 31, 2019 and investment exposure to the $930 million 2018 Single Asset Securitization through an $89 million

subordinate risk retention interest.

(e)

Includes $841 million of securitized debt held by third-parties in the $930 million 2018 Single Asset Securitization, which is not consolidated on BXMT’s balance sheet.

(f)

Includes USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR.

97%

of

the

portfolio

(d)

is

floating

rate;

in-place

LIBOR

(f)

floors

insulate

current

portfolio

earnings

from

potential

decreases

in

rates

Floating

rate

assets

and

matched

liabilities

support

book

value

and

earnings

stability

Blackstone Mortgage Trust

3

$24.67

$27.82

Re-IPO

2Q '13

4Q '19

$2.48

$0.22

Earnings & Dividends

Earnings & Dividends

4Q

GAAP

EPS

of

$0.59

and

Core

Earnings

(a)

of

$0.68

per

share,

$0.62

per

share

dividend

equates

to

a

6.4%

dividend

yield

(b)

BXMT

has

a

consistently

well-covered

dividend,

with

retained

excess

earnings

resulting

in

book

value

growth

(a)

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

(b)

Based on annualized dividend and BXMT closing price as of February 10, 2020.

(c)

2019 GAAP EPS was $2.35; retained Core Earnings refers to the amount of Core Earnings in excess of dividends paid for the periods presented.

+$3.15

Dividends Paid

Retained

Core Earnings

Book Value Per Share Growth

2019

Core

Earnings

Per

Share

(c)

109%

2019 Dividend Coverage

Blackstone Mortgage Trust

4

$9.8

$11.1

$15.8

$17.9

$139

$142

$246

$232

2016

2017

2018

2019

Originations

Originations

Origination

volume

of

$3.0

billion

in

4Q

and

$8.6

billion

in

2019,

while

maintaining

a

consistent

credit

profile

Increase

in

scale

of

originations

has

yielded

consistent

portfolio

growth

($ in billions, except avg. loan size)

(a)

Includes

non-consolidated

senior

interests

and

investment

exposure

to

the

2018

Single

Asset

Securitization

through

a

subordinate

risk

retention

interest.

(b)

Excludes upsizes and loans originated in the Walker & Dunlop joint venture.

Portfolio Size

Average Originated Loan Size

($mm)

(b)

Total

Investment

Portfolio

(a)

$8.6B

2019 Originations

4Q ‘19 Originations

$3.0B

Blackstone Mortgage Trust

5

Portfolio Composition

$17.9

billion

portfolio

(a)

comprising

129

assets

secured

by

institutional

quality

real

estate,

with

74%

in

gateway

markets

High

quality

100%

performing

portfolio

with

low

weighted

average

LTV

(a)(b)

of

64%

(a)

Includes $689 million of Non-Consolidated Senior Interests as of December 31, 2019 and investment exposure to the $930 million 2018 Single Asset Securitization through an $89 million

subordinate risk retention interest.

(b)

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

Major

Market

Focus

(a)

Collateral

Diversification

(a)

Condo

Self-Storage

Retail

Industrial

Office

Hotel

Other

Multi

$17.9B

portfolio

AU

2%

ES

7%

2%

DEU

U.K.

12%

IE

7%

1%

IT

IL

5%

OH

1%

MN

1%

NY

22%

BE

FL

4%

GA

3%

DC

2%

TN

1%

1%

2%

NV

TX

CO

1%

1%

AZ

CA

17%

HI

States that comprise less than 1% of total loan portfolio

3%

VA

5%

58%

18%

9%

3%

2%

2%

1%

7%

Blackstone Mortgage Trust

6

Capitalization

Increased

Term

Loan

B

by

$250

million

to

$747

million

while

reducing

the

rate

from

L+250bps

to

L+225bps

$12.8

billion

(a)

of

outstanding

asset-level

financing

on

a

market

leading,

match-funded

basis

(a)

Includes $841 million of securitized debt held by third-parties in the $930 million 2018 Single Asset Securitization, which is not consolidated on BXMT’s balance sheet.

(b)

Includes $331 million of asset specific financings as of December 31, 2019.

(c)

Includes $1.2 billion of consolidated securitized debt obligations as well as $841 million of securitized debt held by third-parties in the $930 million 2018 Single Asset Securitization, which is not

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

Securitization.

(d)

Represents $689 million of Non-Consolidated Senior Interests, which result from non-recourse sales of senior loan interests in loans BXMT originates. BXMT’s net investments in these loans are

reflected in the form of mezzanine or other subordinate loans on BXMT’s balance sheet.

(e)

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

Credit

Facilities

(b)

14 Credit Facilities

Corporate Debt

Term Loan and Convertible Notes

Corporate Obligations

Senior Loan

Interests

(d)

$10.1

$1.4

$0.7

$11.5

Securitized

Debt

(c)

$2.0

CLO and Single Asset Securitizations

3.0x

Debt-to-Equity Ratio

(e)

Senior Syndications

Financing

(Outstanding Balance)

($ in billions)

Blackstone Mortgage Trust

7

-2.00%

-1.50%

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

3%

97%

Interest Rates

97%

of

the

portfolio

(a)

is

floating

rate;

in-place

LIBOR

(b)

floors

insulate

current

portfolio

earnings

from

potential

decreases

in

rates

A

1.0%

increase

or

decrease

in

USD

LIBOR

would

increase

earnings

per

share

by

$0.03

per

quarter

(c)

(a)

Includes $689 million of Non-Consolidated Senior Interests as of December 31, 2019 and investment exposure to the $930 million 2018 Single Asset Securitization through an $89 million

subordinate risk retention interest.

(b)

Includes USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR.

(c)

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

important disclosures.

Earnings

Sensitivity

to

USD

LIBOR

(c)

(Quarterly Earnings per Share)

Portfolio

Fixed

vs.

Floating

(a)

(% of Total Portfolio Exposure)

Floating

Fixed

$0.08

$0.06

$0.03

$0.00

$0.00

$0.01

$0.03

$0.05

$0.07

Appendix

Blackstone Mortgage Trust

9

4Q '18 Loans

Outstanding

Fundings

Repayments

4Q '19 Loans

Outstanding

Fourth Quarter and Full Year 2019 Operating Results & Net Fundings

Net Fundings

(b)

($ in billions)

Operating Results

($ in millions)

(a)

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

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

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

(b)

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

(c)

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

(d)

Includes $689 million of Non-Consolidated Senior Interests and investment exposure to the $930 million 2018 Single Asset Securitization through an $89 million subordinate risk retention interest.

GAAP Net

Income

Adjustments

Core

Earnings

Interest Income

220.7

$  

$    —

220.7

$  

Interest Expense

(111.0)

—

(111.0)

Management and

Incentive Fees

(20.2)

—

(20.2)

General and Administrative

Expenses and Taxes

(2.5)

—

(2.5)

Non-Cash

Compensation

(7.4)

7.4

—

Hedging and Foreign

Currency Income, net

(a)

—

4.8

4.8

Net Income Attributable to

Non-controlling Interests

(0.7)

—

(0.7)

Total

78.9

$   

12.2

$   

91.1

$    

$0.68

Core Earnings per Share

$0.59

Net Income per Share

$15.8

($4.9)

$7.0

$17.9

(c)

(d)

Blackstone Mortgage Trust

10

(a)

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.

(b)

In certain instances, loans are financed through the non-recourse sale of a senior loan interest that is not included in the consolidated financial statements. As of

December 31, 2019, four loans in the portfolio have been financed with an aggregate $689 million of Non-Consolidated Senior Interests, which are included in the table above.

(c)

Portfolio excludes our $89 million subordinate risk retention interest in the $930 million 2018 Single Asset Securitization.

(d)

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

(e)

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

Portfolio Details

($ in millions)

Origination

Total

Principal

Net Book

Maximum

Property

Loan Per

Origination

Loan Type

Date

(a)

Loan

(b)(c)

Balance

(c)

Value

Maturity

(d)

Location

Type

SQFT / Unit / Key

LTV

(a)

Loan 1

Senior loan

8/14/2019

$  1,331

$  1,331

$  1,318

L + 2.50

%

L + 2.85

%

12/23/2024

Dublin - IE

Office

$459 / sqft

74 %

Loan 2

Senior loan

3/22/2018

1,009

1,009

1,005

L + 3.15

%

L + 3.37

%

3/15/2023

Diversified - Spain

Mixed-Use

n/a

71 %

Loan 3

Senior loan

5/11/2017

753

712

710

L + 3.40

%

L + 3.60

%

6/10/2023

Washington DC

Office

$348 / sqft

62 %

Loan 4

Senior loan

11/25/2019

724

586

585

L + 2.30

%

L + 2.75

%

12/9/2024

New York

Office

$840 / sqft

65 %

Loan 5

Senior loan

(c)

8/6/2015

489

489

88

5.74

%

5.77

%

10/29/2022

Diversified - EUR

Other

n/a

71 %

Loan 6

Senior loan

4/11/2018

355

345

344

L + 2.85

%

L + 3.02

%

5/1/2023

New York

Office

$437 / sqft

71 %

Loan 7

Senior loan

8/22/2018

363

338

336

L + 3.15

%

L + 3.49

%

8/9/2023

Maui

Hotel

$444,674 /  key

61 %

Loan 8

Senior loan

10/23/2018

352

334

333

L + 3.40

%

L + 3.72

%

10/23/2021

New York

Mixed-Use

$565 / sqft

65 %

Loan 9

Senior loan

1/11/2019

318

318

314

L + 4.35

%

L + 4.70

%

1/11/2026

Diversified - UK

Other

$314 / sqft

66 %

Loan 10

Senior loan

11/30/2018

293

279

277

L + 2.85

%

L + 3.20

%

12/9/2023

New York

Hotel

$228,186 /  key

73 %

Loan 11

Senior loan

11/30/2018

254

248

246

L + 2.80

%

L + 3.17

%

12/9/2023

San Francisco

Hotel

$363,499 /  key

73 %

Loan 12

Senior loan

7/31/2018

285

246

244

L + 3.10

%

L + 3.54

%

8/9/2022

San Francisco

Office

$617 / sqft

50 %

Loan 13

Senior loan

12/11/2018

310

245

243

L + 2.55

%

L + 2.96

%

12/9/2023

Chicago

Office

$206 / sqft

78 %

Loan 14

Senior loan

5/9/2018

243

233

232

L + 2.60

%

L + 3.03

%

5/9/2023

New York

Industrial

$66 / sqft

70 %

Loan 15

Senior loan

9/23/2019

280

229

227

L + 3.00

%

L + 3.22

%

11/15/2024

Diversified - Spain

Hotel

$228,228 /  key

62 %

Loans 16 - 128

Senior loans

Various

14,270

10,026

9,663

L + 3.37

%

(e)

L + 3.73

%

(e)

Various

Various

Various

Various

62 %

Total/Wtd. avg.

$  21,628

$  16,966

$  16,165

L + 3.25

%

(e)

L + 3.59

%

(e)

3.8 yrs

65 %

Cash

All-in

Coupon

Yield

Blackstone Mortgage Trust

11

Consolidated Balance Sheets

($ in thousands, except per share data)

December 31, 2019

December 31, 2018

Assets

Cash and cash equivalents

150,090

$                 

105,662

$                 

Loans receivable, net

16,164,801

14,191,200

Other assets

236,980

170,513

Total assets

16,551,871

$            

14,467,375

$            

Liabilities and equity

Secured debt agreements, net

10,054,930

$            

8,974,756

$              

Loan participations sold, net

—

94,418

Securitized debt obligations, net

1,187,084

1,285,471

Secured term loans, net

736,142

—

Convertible notes, net

613,071

609,911

Other liabilities

175,963

128,212

Total liabilities

12,767,190

11,092,768

Commitments and contingencies

—

—

Equity

Class A common stock, $0.01 par value

1,350

1,234

Additional paid-in capital

4,370,014

3,966,540

Accumulated other comprehensive loss

(16,233)

(34,222)

Accumulated deficit

(592,548)

(569,428)

Total Blackstone Mortgage Trust, Inc. stockholders' equity

3,762,583

3,364,124

Non-controlling interests

22,098

10,483

Total equity

3,784,681

3,374,607

Total liabilities and equity

16,551,871

$            

14,467,375

$            

Blackstone Mortgage Trust

12

Consolidated Statements of Operations

($ in thousands, except per share data)

Three Months Ended December 31,

Year Ended December 31,

2019

2018

2019

2018

Income from loans and other investments

Interest and related income

220,678

$          

206,098

$          

882,679

$          

756,109

$          

Less: Interest and related expenses

110,967

103,948

458,503

359,625

Income from loans and other investments, net

109,711

102,150

424,176

396,484

Other expenses

Management and incentive fees

20,159

18,586

78,435

74,834

General and administrative expenses

9,904

9,632

38,854

35,529

Total other expenses

30,063

28,218

117,289

110,363

Income before income taxes

79,648

73,932

306,887

286,121

Income tax provision (benefit)

67

36

(506)

308

Net income

79,581

$            

73,896

$            

307,393

$          

285,813

$          

Net income attributable to non-controlling interests

(650)

(253)

(1,826)

(735)

Net income attributable to Blackstone Mortgage Trust, Inc.

78,931

$            

73,643

$            

305,567

$          

285,078

$          

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

134,832,323

121,588,404

130,085,398

113,857,238

Net income per share of common stock

0.59

$                 

0.61

$                 

2.35

$                 

2.50

$                 

Blackstone Mortgage Trust

13

Per Share Calculations

(Amounts in thousands, except per share data)

Three Months Ended

December 31, 2019

September 30, 2019

Net income

(a)

78,931

$                    

74,897

$                      

Weighted-average shares outstanding, basic and diluted

134,832

134,537

Earnings per share, basic and diluted

0.59

$                         

0.56

$                            

Three Months Ended

December 31, 2019

September 30, 2019

Stockholders' equity

3,762,583

$              

3,742,793

$                

Shares

Class A common stock

135,004

134,289

Deferred stock units

260

252

Total outstanding

135,264

134,541

Book value per share

27.82

$                      

27.82

$                          

Core Earnings

Reconciliation

Book Value

per Share

Earnings

per Share

(a)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(b)

Primarily

represents

the

forward

points

earned

on

our

foreign

currency

forward

contracts,

which

reflect

the

interest

rate

differentials

between

the

applicable

base

rate

for

our

foreign

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

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

Three Months Ended

December 31, 2019

September 30, 2019

Net income

(a)

78,931

$                   

74,897

$                     

Non-cash compensation expense

7,380

7,754

Hedging

and

foreign

currency

income,

net

(b)

4,767

2,898

Other items

68

78

Core Earnings

91,146

$                   

85,627

$                     

Weighted-average shares outstanding, basic and diluted

134,832

134,537

Core Earnings per share, basic and diluted

0.68

$                       

0.64

$                           

Blackstone Mortgage Trust

14

Reconciliation of Net Income to Core Earnings

(Amounts in thousands, except per share data)

Year Ended

Dec 31,

2019

Dec 31,

2019

Sept 30,

2019

Jun 30,

2019

Mar 31,

2019

Net income

(a)

305,567

$        

78,931

$           

74,897

$           

75,174

$       

76,565

$       

Non-cash compensation expense

30,656

7,380

7,754

7,754

7,768

Hedging and foreign currency income, net

(b)

14,172

4,767

2,898

3,237

3,271

Other items

300

68

78

58

95

Core Earnings

350,695

$        

91,146

$           

85,627

$           

86,223

$       

87,699

$       

Weighted-average shares outstanding, basic and diluted

130,085

134,832

134,537

126,475

124,333

Net income per share, basic and diluted

2.35

$               

0.59

$                

0.56

$                

0.59

$            

0.62

$            

Core Earnings per share, basic and diluted

2.70

$               

0.68

$                

0.64

$                

0.68

$            

0.71

$            

Three Months Ended,

(a)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(b)

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

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

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

Blackstone Mortgage Trust

15

Definitions

Core

Earnings:

Blackstone

Mortgage

Trust,

Inc.

(“BXMT”)

discloses

Core

Earnings

in

this

presentation.

Core

Earnings

is

a

financial

measure

that

is

calculated

and

presented

on

the

basis

of

methodologies

other

than

in

accordance

with

generally

accepted

accounting

principles

in

the

United

States

of

America

(“GAAP”).

Core

Earnings

is

an

adjusted

measure

that

helps

BXMT

evaluate

its

performance

excluding

the

effects

of

certain

transactions

and

GAAP

adjustments

that

it

believes

are

not

necessarily

indicative

of

its

current

loan

origination

portfolio

and

operations.

Although

according

to

its

management

agreement

BXMT

calculates

the

incentive

and

base

management

fees

due

to

its

Manager

using

Core

Earnings

before

incentive

fees

expense,

BXMT

reports

Core

Earnings

after

incentive

fees

expense,

as

BXMT

believes

this

is

a

more

meaningful

presentation

of

the

economic

performance

of

its

class

A

common

stock.

Core

Earnings

is

defined

as

GAAP

net

income

(loss),

including

realized

gains

and

losses

not

otherwise

included

in

GAAP

net

income

(loss),

and

excluding

(i)

non-cash

equity

compensation

expense,

(ii)

depreciation

and

amortization,

(iii)

unrealized

gains

(losses),

(iv)

net

income

(loss)

attributable

to

our

legacy

portfolio,

and

(v)

certain

non-cash

items.

Core

Earnings

may

also

be

adjusted

from

time

to

time

to

exclude

one-time

events

pursuant

to

changes

in

GAAP

and

certain

other

non-cash

charges

as

determined

by

BXMT’s

manager,

subject

to

approval

by

a

majority

of

its

independent

directors.

Core

Earnings

does

not

represent

net

income

or

cash

generated

from

operating

activities

and

should

not

be

considered

as

an

alternative

to

GAAP

net

income,

or

an

indication

of

BXMT’s

GAAP

cash

flows

from

operations,

a

measure

of

BXMT’s

liquidity,

or

an

indication

of

funds

available

for

its

cash

needs.

In

addition,

BXMT’s

methodology

for

calculating

Core

Earnings

may

differ

from

the

methodologies

employed

by

other

companies

to

calculate

the

same

or

similar

supplemental

performance

measures,

and

accordingly,

its

reported

Core

Earnings

may

not

be

comparable

to

the

Core

Earnings

reported

by

other

companies.

Non-Consolidated

Senior

Interests:

Senior

interests

in

loans

originated

and

syndicated

to

third

parties.

These

non-recourse

loan

participations,

which

are

excluded

from

the

GAAP

balance

sheet,

constitute

additional

financing

capacity

and

are

included

in

discussions

of

the

loan

portfolio.

Earnings

Sensitivity

to

LIBOR:

Reflects

the

impact

on

net

income,

net

of

incentive

fees,

assuming

no

changes

in

credit

spreads,

portfolio

composition,

or

asset

performance.

Assumes

no

change

in

general

and

administrative

expenses,

management

fees,

or

other

non-interest

expenses

relative

to

those

incurred

for

the

quarter

ended

December

31,

2019.

Blackstone Mortgage Trust

16

Forward-Looking Statements

This

presentation

may

contain

forward-looking

statements

within

the

meaning

of

Section

27A

of

the

Securities

Act

of

1933,

as

amended,

and

Section

21E

of

the

Securities

Exchange

Act

of

1934,

as

amended,

which

reflect

BXMT’s

current

views

with

respect

to,

among

other

things,

its

operations

and

financial

performance.

You

can

identify

these

forward-looking

statements

by

the

use

of

words

such

as

“outlook,”

“indicator,”

“believes,”

“expects,”

“potential,”

“continues,”

“may,”

“will,”

“should,”

“seeks,”

“predicts,”

“intends,”

“plans,”

“estimates,”

“anticipates”

or

the

negative

version

of

these

words

or

other

comparable

words.

Such

forward-

looking

statements

are

subject

to

various

risks

and

uncertainties.

Accordingly,

there

are

or

will

be

important

factors

that

could

cause

actual

outcomes

or

results

to

differ

materially

from

those

indicated

in

these

statements.

BXMT

believes

these

factors

include

but

are

not

limited

to

those

described

under

the

section

entitled

“Risk

Factors”

in

its

Annual

Report

on

Form

10-K

for

the

fiscal

year

ended

December

31,

2019,

as

such

factors

may

be

updated

from

time

to

time

in

its

periodic

filings

with

the

Securities

and

Exchange

Commission

(“SEC”)

which

are

accessible

on

the

SEC’s

website

at

www.sec.gov.

These

factors

should

not

be

construed

as

exhaustive

and

should

be

read

in

conjunction

with

the

other

cautionary

statements

that

are

included

in

this

presentation

and

in

the

filings.

BXMT

assumes

no

obligation

to

update

or

supplement

forward-looking

statements

that

become

untrue

because

of

subsequent

events

or

circumstances.

XML

Document and Entity Information	Feb. 11, 2020
Cover [Abstract]
Amendment Flag	false
Entity Central Index Key	0001061630
Document Type	8-K
Document Period End Date	Feb. 11, 2020
Entity Registrant Name	Blackstone Mortgage Trust, Inc.
Entity Incorporation State Country Code	MD
Entity File Number	1-14788
Entity Tax Identification Number	94-6181186
Entity Address, Address Line One	345 Park Avenue
Entity Address, Address Line Two	42nd Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10154
City Area Code	(212)
Local Phone Number	655-0220
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Class A common stock, par value $0.01 per share
Trading Symbol	BXMT
Security Exchange Name	NYSE
Entity Emerging Growth Company	false