8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 29, 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 July 29, 2020, Blackstone Mortgage Trust, Inc. (the “Company”) issued a press release and detailed presentation announcing its financial results for the second quarter ended June 30, 2020. The press release and full detailed presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.

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

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press Release of Blackstone Mortgage Trust, Inc. dated July 29, 2020.
99.2	Presentation of Blackstone Mortgage Trust, Inc. dated July 29, 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: July 29, 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 Second Quarter 2020 Results

New York, July 29, 2020: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its second quarter 2020 results.

Stephen D. Plavin, Chief Executive Officer, said, “BXMT’s key advantages—our $18 billion senior mortgage loan portfolio, well-capitalized balance sheet and market-leading real estate platform—all contributed to our strong second quarter performance. We again collected 100% of borrower interest while raising $607 million of new capital and increasing our liquidity to $1.3 billion. BXMT is very well positioned to protect its assets and originate new loans as transaction activity rebuilds.”

Blackstone Mortgage Trust issued a full detailed presentation of its second quarter 2020 results, which can be viewed at www.bxmt.com.

Quarterly Investor Call Details

Blackstone Mortgage Trust will host a conference call today at 9:00 a.m. ET to discuss second quarter 2020 results. To register for the webcast, please use the following link: https://event.webcasts.com/starthere.jsp?ei=1345604&tp_key=7fe935a16b. For those unable to listen to the live broadcast, a recorded replay will be available on the company’s website at www.bxmt.com beginning approximately two hours after the event.

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. Our portfolio is composed of loans secured by high-quality, institutional assets in major markets, sponsored by experienced, well-capitalized real estate investment owners and operators. These senior loans are capitalized by accessing a variety of financing options, depending on our view of the most prudent strategy available for each of our investments. We are externally managed by BXMT Advisors L.L.C., a subsidiary of Blackstone. Further information is available at www.bxmt.com.

About Blackstone

Blackstone (NYSE:BX) is one of the world’s leading investment firms. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies it invests in, and the communities in which it works. Blackstone does this by using extraordinary people and flexible capital to help companies solve problems. Blackstone’s asset management businesses, with $564 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity,

Blackstone Mortgage Trust, Inc.

345 Park Avenue

New York, New York 10154

T 212 655 0220

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 and the impact of the COVID-19 pandemic. You can identify these forward-looking statements by the use of words such as “outlook,” “objective,” “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 and its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2020, as such factors may be further updated from time to time in its periodic filings with the Securities and Exchange Commission (“SEC”) which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the filings. Blackstone Mortgage Trust assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances.

Investor and 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.

Second Quarter 2020 Results

JULY 29, 2020

Exhibit 99.2

Blackstone  |

Blackstone Mortgage Trust, Inc.

1

BXMT HIGHLIGHTS

(1)

Includes $740 million of Non-Consolidated Senior Interests and investment exposure to the $857 million 2018 Single Asset Securitization through an $82 million subordinate interest.

(2)

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

(3)

Represents $13.5 billion of asset-specific financings, consisting of $3.0 billion of securitizations, $1.0 billion of senior syndications and $9.4 billion of credit facilities (of which $8.9 billion are term

matched to the current maturity of their respective loans)

(4)

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

(5)

Total liquidity includes $1,260 million of cash and $97 million of available borrowings under credit facilities, reduced by $22 million of pending net principal payments.

BXMT delivered strong earnings in 2Q from its $18.0 billion

(1)

senior loan portfolio

Raised $607 million of capital in 2Q, further fortifying its balance sheet and growing liquidity

100%

senior

loans

(1)

64%

origination

loan-to-value

(1)(2)

96%

term

matched financing

(3)

2.6x

debt-to-equity

ratio

(4)

$1.3B

total

liquidity

(5)

+60%

2Q

increase

All senior loan portfolio with significant

equity cushion

Long duration liabilities, with no capital

markets mark-to-market

Substantial liquidity to defend assets and

fund new loans

Protected Credit

Stable Balance Sheet

Blackstone  |

Blackstone Mortgage Trust, Inc.

2

SECOND QUARTER 2020 RESULTS

(1)

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

(2)

Includes $740 million of Non-Consolidated Senior Interests and investment exposure to the $857 million 2018 Single Asset Securitization through an $82 million subordinate interest.

(3)

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

(4)

Includes $740 million of Non-Consolidated Senior Interests and $775 million of Non-Consolidated Securitized Debt Obligations.

(5)

Total liquidity includes $1,260 million of cash and $97 million of available borrowings under credit facilities, reduced by $22 million of pending net principal payments.

Earnings

2Q GAAP earnings per share of $0.13 and Core Earnings

(1)

per share of $0.62; book

value per share of $26.45

GAAP EPS and BVPS reflect $57 million increase in 2Q CECL reserve, primarily

resulting from specific CECL reserves recorded on two impaired loans

$8.8 billion of the loan portfolio benefits from active USD LIBOR floors with an

average strike price of 1.47% as of quarter end

Portfolio

$18.0 billion

(2)

senior loan portfolio secured by institutional quality real estate in

major markets, with a weighted average origination LTV

(2)(3)

of 64%

$386 million of loan repayments and $317 million of loan fundings during the

quarter

100% interest collection in 2Q reflects quality of our portfolio and commitment by

sponsors to their assets

Capitalization

$13.5 billion

(4)

of match-funded, asset-level financing on pre-pandemic terms with

no capital markets mark-to-market provisions

Executed agreements with seven largest credit facility lenders to temporarily

suspend credit mark provisions and increase asset management flexibility for

certain collateral assets

Generated $607 million of gross proceeds from capital markets transactions,

bringing total liquidity to $1.3 billion

(5)

Blackstone  |

Blackstone Mortgage Trust, Inc.

3

EARNINGS

(1)

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

(2)

Weighted average strike price of floating rate loans indexed to USD LIBOR with active floors as of June 30, 2020.

2Q

GAAP

earnings

per

share

of

$0.13

and

Core

Earnings

(1)

per

share

of

$0.62

BXMT earnings power is insulated from declining USD LIBOR by interest rate floors in its loan portfolio

Average USD LIBOR

Core Earnings per Share

$8.8B

loans with active

USD LIBOR floors

1.47%

weighted average

strike price

(2)

2.2%

1.8%

1.4%

0.4%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

3Q '19

4Q '19

1Q '20

2Q '20

$0.64

$0.68

$0.64

$0.62

Blackstone  |

Blackstone Mortgage Trust, Inc.

4

PORTFOLIO

(1)

Includes $740 million of Non-Consolidated Senior Interests and investment exposure to the $857 million 2018 Single Asset Securitization through an $82 million subordinate interest.

(2)

States comprising less than 1% of total loan portfolio are excluded.

$18.0 billion senior loan portfolio,

(1)

comprising 129 loans with 76% of collateral in gateway markets

Specific CECL reserves recorded on two NYC assets —

one hotel and one rent-regulated apartment building —

particularly challenged by the impact of COVID-19 on revenue generation and high operating costs

Major Market Focus

(1)(2)

Collateral Diversification

(1)

$18.0B

portfolio

CA

16%

MN

1%

NV

1%

TX

3%

CO

1%

IL

5%

TN, 1%

GA

3%

FL

5%

NY

23%

DEU, 2%

IT, 1%

NL, 1%

UK, 11%

IR, 7%

ES, 7%

VA, 4%

DC, 2%

NJ, 1%

MA, 1%

AU, 1%

HI, 3%

Hospitality

17%

Multi

11%

Industrial

5%

Retail

3%

Self-Storage

2%

Condo

1%

Other

6%

Office

55%

NYC Regulated

Multi 1%

$18.0B

portfolio

NYC Hospitality 3%

Blackstone  |

Blackstone Mortgage Trust, Inc.

5

CAPITALIZATION

(1)

Excludes $11 million per annum of scheduled amortization payments under the Term Loan B.

(2)

Includes $740 million of Non-Consolidated Senior Interests.

(3)

Includes $775 million of Non-Consolidated Securitized Debt Obligations.

Asset-level financing is generally term-matched; no corporate debt maturities until 2022

$13.5 billion of asset-level financing reflects pre-pandemic economic terms

Modified credit facilities with lenders representing 84% of outstandings

to temporarily suspend credit mark

provisions and provide increased asset management flexibility for certain collateral assets

Corporate Debt

(1)

(outstanding balance; $ in millions)

$403

$220

$1,009

2020

2021

2022

2023

2024

2025

2026

Convertible Notes

Term Loan B

Asset-Level Financing

(outstanding balance; $ in billions)

$13.5B

financings

(2)

(3)

Securitizations

$3.0%

Senior

syndications

$1.0

Credit facilities

$9.4

Blackstone  |

Blackstone Mortgage Trust, Inc.

3/31/2020

Term Loan B

Equity

Cash Flow

Dividends

Funding

6/30/2020

Borrowing, net

Offering, net

From Operations

Paid

Activity / Other

Increased Liquidity

($ in millions)

6

CAPITALIZATION

(1)

Total liquidity includes $1,260 million of cash and $97 million of available borrowings under credit facilities, reduced by $22 million of pending net principal payments.

(2)

Includes a LIBOR floor of 1.00%.

(3)

Total liquidity includes $355 million of cash and $480 million of available borrowings under credit facilities, and $1 million of pending net principal receipts.

(4)

Funding Activity / Other includes borrowings and repayments under secured debt agreements, fundings and repayments of existing loans, and other cash items.

Increased liquidity to $1.3 billion;

(1)

60% increase from prior quarter end

Added a new Term Loan B tranche with a coupon of L+4.75%

(2)

and completed an equity offering at a 1.04x

premium to book value

(3)

(1)

(4)

$1,334

$118

$84

$107

$278

$315

$836

Blackstone  |

Blackstone Mortgage Trust, Inc.

Appendix

7

Blackstone  |

Blackstone Mortgage Trust, Inc.

GAAP Net

Income

Adjustments

Core

Earnings

Interest income

$192.0

$     -

$192.0

Interest expense

(84.9)

0.3

(84.6)

Management and incentive fees

(20.5)

-

(20.5)

General and administrative

expenses and taxes

(2.6)

-

(2.6)

Increase in current expected

credit loss reserve

(56.8)

56.8

-

Non-cash compensation

(8.7)

8.7

-

Realized hedging and

foreign currency income, net

(1)

-

1.8

1.8

Net income attributable to non-

controlling interests

(1.0)

0.1

(0.9)

Total

$17.5

$67.7

$85.2

$18.0

$18.0

$0.3

$0.4

1Q ’20 Loans

Outstanding

Fundings

Repayments

2Q ’20 Loans

Outstanding

8

APPENDIX

(1)

Primarily

represents

realized

gains

on

the

repatriation

of

unhedged

foreign

currency.

These

amounts

are

not

included

in

GAAP

net

income,

but

rather

as

a

component

of

Other

Comprehensive

Income

in our consolidated financial statements.

(2)

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

(3)

Includes $692 million of Non-Consolidated Senior Interests and investment exposure to the $881 million 2018 Single Asset Securitization through an $84 million subordinate interest.

(4)

Includes $740 million of Non-Consolidated Senior Interests and investment exposure to the $857 million 2018 Single Asset Securitization through an $82 million subordinate interest.

Net Fundings

(2)

($ in billions)

Operating Results

($ in millions)

$0.13

net income per share

$0.62

core earnings per share

(3)

(4)

Blackstone  |

Blackstone Mortgage Trust, Inc.

APPENDIX

(1)

Portfolio excludes our $82 million subordinate interest in the $857 million 2018 Single Asset Securitization.

(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)

In certain instances, loans are financed through the non-recourse sale of a senior loan interest that is not included in the consolidated financial statements. As of June 30, 2020, five loans in the

portfolio have been financed with an aggregate $740 million of Non-Consolidated Senior Interests, which are included in the table above.

(4)

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

(5)

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

9

Portfolio Details

(1)

($ in millions)

Origination

Total

Principal

Net Book

Maximum

Property

Loan Per

Origination

Loan Type

Date

(2)

Loan

(3)

Balance

(3)

Value

Maturity

(4)

Location

Type

SQFT / Unit / Key

LTV

(2)

Loan 1

Senior loan

8/14/2019

$  1,333

$  1,333

$  1,323

L + 2.50

%

L + 2.85

%

12/23/2024

Dublin - IE

Office

$460 / sqft

74 %

Loan 2

Senior loan

3/22/2018

980

980

977

L + 3.15

%

L + 3.37

%

3/15/2023

Diversified - Spain

Mixed-Use

n/a

71 %

Loan 3

Senior loan

11/25/2019

724

625

625

L + 2.30

%

L + 2.75

%

12/9/2024

New York

Office

$896 / sqft

65 %

Loan 4

Senior loan

5/11/2017

647

615

614

L + 3.40

%

L + 3.57

%

6/10/2023

Washington DC

Office

$302 / sqft

62 %

Loan 5

Senior loan

(3)

8/6/2015

458

458

84

5.75

%

5.77

%

10/29/2022

Diversified - EUR

Other

n/a

71 %

Loan 6

Senior loan

8/22/2018

363

350

348

L + 3.15

%

L + 3.49

%

8/9/2023

Maui

Hospitality

$454,293 /  key

61 %

Loan 7

Senior loan

10/23/2018

352

345

345

L + 3.40

%

L + 3.87

%

10/23/2021

New York

Mixed-Use

$585 / sqft

65 %

Loan 8

Senior loan

4/11/2018

355

345

344

L + 2.85

%

L + 3.10

%

5/1/2023

New York

Office

$437 / sqft

71 %

Loan 9

Senior loan

1/11/2019

298

298

295

L + 4.35

%

L + 4.70

%

1/11/2026

Diversified - UK

Other

$294 / sqft

74 %

Loan 10

Senior loan

11/30/2018

293

281

280

L + 2.85

%

L + 3.20

%

12/9/2023

New York

Hospitality

$301,581 /  key

73 %

Loan 11

Senior loan

2/27/2020

300

279

277

L + 2.70

%

L + 3.03

%

3/9/2025

New York

Mixed-Use

$875 / sqft

59 %

Loan 12

Senior loan

7/31/2018

280

277

276

L + 3.10

%

L + 3.52

%

8/9/2022

San Francisco

Office

$698 / sqft

50 %

Loan 13

Senior loan

12/11/2018

310

254

253

L + 2.55

%

L + 2.96

%

12/9/2023

Chicago

Office

$214 / sqft

78 %

Loan 14

Senior loan

11/30/2018

254

248

247

L + 2.80

%

L + 3.17

%

12/9/2023

San Francisco

Hospitality

$364,513 /  key

73 %

Loan 15

Senior loan

9/23/2019

281

234

232

L + 3.00

%

L + 3.22

%

11/15/2024

Diversified - Spain

Hospitality

$125,124 /  key

62 %

Loans 16 - 128

Senior loan

(3)

Various

14,489

10,252

9,819

L + 3.31

(5)

L + 3.67

(5)

Various

Various

Various

Various

62 %

CECL reserve

(178)

Total/Wtd. avg.

$  21,717

$  17,174

$  16,161

L + 3.23

(5)

L + 3.58

(5)

3.5 yrs

65 %

Cash

All-in

Coupon

Yield

Blackstone  |

Blackstone Mortgage Trust, Inc.

June 30, 2020

December 31, 2019

Assets

Cash and cash equivalents

$1,259,836

$150,090

Loans receivable

16,339,403

16,164,801

Current expected credit loss reserve

(178,050)

—

Loans receivable, net

16,161,353

16,164,801

Other assets

241,934

236,980

Total assets

$17,663,123

$16,551,871

Liabilities and equity

Secured debt agreements, net

$9,689,541

$10,054,930

Securitized debt obligations, net

2,240,612

1,187,084

Secured term loans, net

1,045,163

736,142

Convertible notes, net

614,710

613,071

Other liabilities

177,313

175,963

Total liabilities

13,767,339

12,767,190

Commitments and contingencies

—

—

Equity

Class A common stock, $0.01 par value

1,462

1,350

Additional paid-in capital

4,685,159

4,370,014

Accumulated other comprehensive income (loss)

8,925

(16,233)

Accumulated deficit

(820,783)

(592,548)

Total Blackstone Mortgage Trust, Inc. stockholders’

3,874,763

3,762,583

Non-controlling interests

21,021

22,098

Total equity

3,895,784

3,784,681

Total liabilities and equity

$17,663,123

$16,551,871

APPENDIX

10

Consolidated Balance Sheets

($ in thousands, except per share data)

equity

Blackstone  |

Blackstone Mortgage Trust, Inc.

APPENDIX

11

Consolidated Statements of Operations

($ in thousands, except per share data)

2020

2019

2020

2019

Income from loans and other investments

Interest and related income

$191,982

$223,369

$396,857

$448,128

Less: Interest and related expenses

84,853

116,891

189,092

235,579

Income from loans and other investments, net

107,129

106,478

207,765

212,549

Other expenses

Management and incentive fees

20,496

20,984

39,773

40,774

General and administrative expenses

11,286

9,897

23,078

19,210

Total other expenses

31,782

30,881

62,851

59,984

Increase in current expected credit loss reserve

(56,819)

-

(179,521)

-

Income (loss) before income taxes

18,528

75,597

(34,607)

152,565

Income tax provision

23

46

173

147

Net income (loss)

$18,505

$75,551

$(34,780)

$152,418

Net income attributable to non-controlling interests

(961)

(377)

(1,028)

(680)

Net income (loss) attributable to Blackstone Mortgage Trust, Inc.

$17,544

$75,174

$(35,808)

$151,738

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

138,299,418

126,475,244

136,959,341

125,410,064

Net income (loss) per share of common stock

$0.13

$0.59

($0.26)

$1.21

Three Months Ended June 30,

Six Months Ended June 30,

``

Blackstone  |

Blackstone Mortgage Trust, Inc.

APPENDIX

(1)

Represents net (loss) income attributable to Blackstone Mortgage Trust, Inc.

(2)

For

the

three

months

ended

June

30,

2020,

represents

realized

gains

on

the

repatriation

of

unhedged

foreign

currency.

For

the

three

months

ended

March

31,

2020,

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 were not included in GAAP net income, but

rather as a component of Other Comprehensive Income in our consolidated financial statements.

12

Per Share Calculations

(in thousands, except per share data)

Core Earnings

Reconciliation

Book Value

per Share

Earnings

per Share

June 30, 2020

March 31, 2020

Net

income

(loss)

(1)

$17,544

($53,350)

Increase in current expected credit loss reserve

56,819

122,702

Non-cash compensation expense

8,652

8,678

Realized hedging and foreign currency income, net

(2)

1,810

8,467

Other items

210

596

Adjustments attributable to non-controlling interests, net

139

(561)

Core Earnings

$85,174

$86,532

Weighted-average shares outstanding, basic and diluted

138,299

135,619

Core Earnings per share, basic and diluted

$0.62

$0.64

Three Months Ended

June 30, 2020

March 31, 2020

Net income (loss)

(1)

$17,544

($53,350)

Weighted-average shares outstanding, basic and diluted

138,299

135,619

Earnings (loss) per share, basic and diluted

$0.13

($0.39)

Three Months Ended

June 30, 2020

March 31, 2020

Stockholders' equity

$3,874,763

$3,650,920

Shares

Class A common stock

146,197

135,355

Deferred stock units

281

268

Total outstanding

146,478

135,623

Book value per share

$26.45

$26.92

Three Months Ended

Blackstone  |

Blackstone Mortgage Trust, Inc.

APPENDIX

(1)

Represents net (loss) income attributable to Blackstone Mortgage Trust, Inc.

(2)

For

the

three

months

ended

June

30,

2020,

represents

realized

gains

on

the

repatriation

of

unhedged

foreign

currency.

For

the

three

months

ended

March

31,

2020,

December

31,

2019,

and

September 30, 2019, 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 were not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.

13

Reconciliation of Net Income to Core Earnings

(in thousands, except per share data)

June 30,

2020

Mar 31,

2020

Dec 31,

2019

Sept 30,

2019

Net

income

(loss)

(1)

17,544

(53,350)

78,931

74,897

Increase in current expected credit loss reserve

56,819

122,702

-

-

Non-cash compensation expense

8,652

8,678

7,380

7,754

Realized

hedging

and

foreign

currency

income,

net

(2)

1,810

8,467

4,767

2,898

Other items

210

596

68

78

Adjustments attributable to non-controlling interests, net

139

(561)

-

-

Core Earnings

85,174

86,532

91,146

85,627

Weighted-average shares outstanding, basic and diluted

138,299

135,619

134,832

134,537

Net income (loss) per share, basic and diluted

$0.13

($0.39)

$0.59

$0.56

Core Earnings per share, basic and diluted

$0.62

$0.64

$0.68

$0.64

Three Months Ended,

Blackstone  |

Blackstone Mortgage Trust, Inc.

DEFINITIONS

14

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

a

non-GAAP

measure,

which

we

define

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

our

Manager,

subject

to

approval

by

a

majority

of

our

independent

directors.

During

the

six

months

ended

June

30,

2020,

we

recorded

a

$179.5

million

increase

in

current

expected

credit

loss

reserve,

or

CECL

reserve,

which

has

been

excluded

from

Core

Earnings

consistent

with

other

unrealized

gains

(losses)

pursuant

to

our

existing

policy

for

reporting

Core

Earnings

and

the

terms

of

the

management

agreement

between

our

Manager

and

us.

We

believe

that

Core

Earnings

provides

meaningful

information

to

consider

in

addition

to

our

net

income

and

cash

flow

from

operating

activities

determined

in

accordance

with

GAAP.

This

adjusted

measure

helps

us

to

evaluate

our

performance

excluding

the

effects

of

certain

transactions

and

GAAP

adjustments

that

we

believe

are

not

necessarily

indicative

of

our

current

loan

portfolio

and

operations.

Although,

according

to

the

management

agreement

between

our

Manager

and

us,

or

our

Management

Agreement,

we

calculate

the

incentive

and

base

management

fees

due

to

our

Manager

using

Core

Earnings

before

our

incentive

fee

expense,

we

report

Core

Earnings

after

incentive

fee

expense,

as

we

believe

this

is

a

more

meaningful

presentation

of

the

economic

performance

of

our

Class

A

common

stock.

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

our

GAAP

cash

flows

from

operations,

a

measure

of

our

liquidity,

or

an

indication

of

funds

available

for

our

cash

needs.

In

addition,

our

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,

our

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.

Non-Consolidated

Securitized

Debt

Obligations:

Senior

securitized

debt

held

by

third-parties

in

the

2018

Single

Asset

Securitization.

These

non-recourse

securitized

debt

obligations,

which

are

excluded

from

the

GAAP

balance

sheet,

constitute

additional

financing

capacity

and

are

included

in

discussions

of

the

loan

portfolio.

Blackstone  |

Blackstone Mortgage Trust, Inc.

FORWARD-LOOKING STATEMENTS

15

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

and

the

impact

of

the

COVID-19

pandemic.

You

can

identify

these

forward-

looking

statements

by

the

use

of

words

such

as

“outlook,”

“objective,”

“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

and

its

Quarterly

Report

on

Form

10-Q

for

the

fiscal

quarter

ended

March

31,

2020,

as

such

factors

may

be

further

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	Jul. 29, 2020
Cover [Abstract]
Amendment Flag	false
Entity Central Index Key	0001061630
Document Type	8-K
Document Period End Date	Jul. 29, 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