8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 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, 15th Floor

New York, New York 10154

(Address of Principal Executive Offices) (Zip Code)

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

345 Park Avenue, 42nd Floor

New York, New York 10154

(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 October 29, 2020, Blackstone Mortgage Trust, Inc. (the “Company”) issued a press release and detailed presentation announcing its financial results for the third quarter ended September 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 October 29, 2020.
99.2	Presentation of Blackstone Mortgage Trust, Inc. dated October 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: October 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 Third Quarter 2020 Results

New York, October 29, 2020: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its third quarter 2020 results. Stephen D. Plavin, Chief Executive Officer, said, “BXMT’s strong third-quarter results reflect the earnings power and credit performance of our loan portfolio, as well as the benefits of a focused strategy of senior lending backed by top-quality properties with well-capitalized, institutional borrowers.”

Blackstone Mortgage Trust issued a full detailed presentation of its third 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 third quarter 2020 results. To register for the webcast, please use the following link: https://event.webcasts.com/starthere.jsp?ei=1376917&tp_key=767f491729. 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 primarily 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 $584 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.

Third Quarter 2020 Results

OCTOBER 29, 2020

Exhibit 99.2

Blackstone  |

Blackstone Mortgage Trust, Inc.

1

BXMT HIGHLIGHTS

(1)

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

(2)

Includes $716 million of Non-Consolidated Senior Interests and investment exposure to the $808 million 2018 Single Asset Securitization through an $79 million subordinate interest.

(3)

Reflects ratio of Core Earnings to dividends declared for the three months ended September 30, 2020.

(4)

Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit facilities.

BXMT

continued

to

deliver

strong

earnings

in

3Q,

generating

$0.61

EPS

and

$0.63

Core

EPS

(1)

$18.1 billion

(2)

senior loan portfolio backed by high-quality assets and well-capitalized sponsors

102%

dividend

coverage

(3)

99%

interest

collection

$1.2B

total

liquidity

(4)

Consistent earnings through a

historically volatile period

Senior mortgage loan portfolio

continues to outperform

Match-funded liability structure with

substantial liquidity

Stable Earnings

Stable Credit Performance

Blackstone  |

Blackstone Mortgage Trust, Inc.

2

THIRD QUARTER 2020 RESULTS

(1)

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

(2)

Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit facilities.

(3)

Includes $716 million of Non-Consolidated Senior Interests and investment exposure to the $808 million 2018 Single Asset Securitization through a $79 million subordinate interest.

(4)

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

Earnings

3Q

GAAP

earnings

per

share

of

$0.61

and

Core

Earnings

(1)

per

share

of

$0.63;

book

value per share of $26.51

Generated strong earnings while maintaining elevated liquidity levels during the

quarter;

total

liquidity

at

quarter

end

of

$1.2

billion

(2)

Earnings and book value reflect $0.04 per share decrease in 3Q CECL reserve from

ordinary course loan portfolio migration; no specific CECL reserves recorded in 3Q

Portfolio

$18.1

billion

(3)

senior

loan

portfolio

secured

by

institutional

quality

real

estate

in

major

markets,

with

a

weighted

average

origination

LTV

(3)(4)

of

64%

99% interest collection in 3Q reflects the quality of our portfolio and sponsor

commitment to our collateral

$484 million of loan repayments and $342 million of loan fundings

Capitalization

Stable corporate debt structure with no near-term maturities

Match-funded asset level financing with no capital markets mark-to-market from an

array of bilateral credit facilities, securitizations and asset-specific syndications

Priced a $1.0 billion CRE CLO post-quarter end, increasing the non-recourse

component of our balance sheet and further diversifying financing sources

Blackstone  |

Blackstone Mortgage Trust, Inc.

(1)

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

3

EARNINGS

3Q results driven by continued strong credit performance and earnings power of the loan portfolio

BXMT earnings remained steady

through a period of economic dislocation and a significant decline in LIBOR

Strong Results

Through

Volatile

Period

(1)

$0.61

3Q GAAP Earnings

per share

$0.63

3Q Core Earnings

per share

Average USD LIBOR

Core Earnings per Share

1.40%

0.35%

0.16%

$0.64

$0.62

$0.63

1Q ‘20

2Q ‘20

3Q ‘20

Blackstone  |

Blackstone Mortgage Trust, Inc.

Office 56%

Multi 11%

Retail 3%

Condo 1%

Other

5%

4

PORTFOLIO

(1)

Includes $716 million of Non-Consolidated Senior Interests and investment exposure to the $808 million 2018 Single Asset Securitization through a $79 million subordinate interest.

(2)

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

$18.1

billion

(1)

senior

loan

portfolio

comprising

124

loans;

large

average

loan

balance

of

$146

million

reflects

significant equity investment from our institutional sponsors

$342 million of loan fundings

under previously originated loans funded through loan repayments of $484 million

Major Market Focus

(1)(2)

Collateral Diversification

(1)

$18.1B

portfolio

AU, 1%

CA

17%

MN

1%

NV

1%

TX

3%

IL

4%

TN, 1%

GA

3%

FL

5%

NY

23%

VA, 4%

DC, 2%

HI, 3%

DEU, 1%

IT, 1%

NL, 1%

UK, 11%

IR, 7%

ES, 7%

BE, 1%

Self-Storage

2%

Industrial

5%

Hospitality

17%

Blackstone  |

Blackstone Mortgage Trust, Inc.

COVID-Related

Loan

Modifications

(1)

PORTFOLIO

(1)

Includes loans modified during the six months ended September 30, 2020 as a result of COVID-19; excludes ordinary course loan modifications during the period.

(2)

Cash-in

modifications

includes

loan

modifications

involving

an

additional

financial

commitment

from

sponsors

in

the

form

of

loan

paydowns,

guaranties,

additional

equity,

or

other,

similar

provisions.

5

Loan portfolio continues to perform with minimal interest deferral

80% of loans performing on pre-COVID terms; COVID-related modifications have generally involved significant new

financial commitments from sponsors

—

Minor reserve deferrals or reallocations

—

Extension of business plan milestones

—

Well-capitalized sponsors supporting assets

through COVID period

—

New cash equity contributed in exchange for

more time to complete business plans

No Modifications

80%

COVID-Related

20%

Cash-in

(2)

15%

Other

5%

Blackstone  |

Blackstone Mortgage Trust, Inc.

(1)

Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit facilities.

(2)

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

(3)

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

6

CAPITALIZATION

Maintained substantial liquidity of $1.2 billion

(1)

at quarter end and a consistent debt-to-equity ratio

(2)

of 2.6x

Majority of corporate debt has over 5 years of remaining term, with no maturities prior to 2022

Corporate Debt

(3)

(outstanding balance; $ in millions)

$403

$220

$1,009

2020

2021

2022

2023

2024

2025

2026

Debt-to-Equity Ratio

(2)

3.0x

2.8x

2.6x

12/31/19

3/31/20

6/30/20

9/30/20

2.6x

Blackstone  |

Blackstone Mortgage Trust, Inc.

Appendix

7

Blackstone  |

Blackstone Mortgage Trust, Inc.

$18.3

$18.1

$0.3

$0.5

2Q ’20 Loans

Outstanding

Fundings

Repayments

3Q ’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)

Includes the impact of changes in foreign currency rates and related hedges for non-USD investments of $0.3 billion for the three months ending September 30, 2020.

(3)

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.

(4)

Includes $716 million of Non-Consolidated Senior Interests and investment exposure to the $808 million 2018 Single Asset Securitization through a $79 million subordinate interest.

Net Fundings

($ in billions)

Operating Results

($ in millions)

$0.61

net income per share

$0.63

core earnings per share

(2)(3)

(4)

GAAP Net

Income

Adjustments

Core

Earnings

Interest income

$193.9

$     -

$193.9

Interest expense

(79.0)

(0.2)

(79.2)

Management and incentive fees

(19.0)

-

(19.0)

General and administrative

expenses and taxes

(2.6)

-

(2.6)

Decrease in current expected

credit loss reserve

6.1

(6.1)

-

Non-cash compensation

(8.6)

8.6

-

Realized hedging and

foreign currency income, net

(1)

-

-

-

Net income attributable to non-

controlling interests

(0.9)

0.1

(0.8)

Total

$89.9

$2.4

$92.3

Blackstone  |

Blackstone Mortgage Trust, Inc.

APPENDIX

(1)

Portfolio excludes our $79 million subordinate interest in the $808 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 September 30, 2020, five loans in

the portfolio have been financed with an aggregate $716 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)

This loan is accounted for under the cost-recovery method.

(6)

Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for weighted-average calculation. Excludes loans under the cost-recovery method.

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

$  1,264

$  1,264

$  1,256

L + 2.50

%

L + 2.83

%

12/23/2024

Dublin - IE

Office

$460 / sqft

74 %

Loan 2

Senior loan

3/22/2018

995

995

992

L + 3.15

%

L + 3.37

%

3/15/2023

Diversified - Spain

Mixed-Use

n/a

71 %

Loan 3

Senior loan

11/25/2019

724

646

646

L + 2.30

%

L + 3.18

%

12/9/2024

New York

Office

$925 / sqft

65 %

Loan 4

Senior loan

5/11/2017

647

616

615

L + 3.40

%

L + 3.57

%

6/10/2023

Washington DC

Office

$302 / sqft

62 %

Loan 5

Senior loan

8/22/2018

363

357

356

L + 3.15

%

L + 3.49

%

8/9/2023

Maui

Hospitality

$463,671 /  key

61 %

Loan 6

Senior loan

10/23/2018

352

347

347

L + 3.40

%

L + 3.67

%

1/23/2022

New York

Mixed-Use

$588 / sqft

65 %

Loan 7

Senior loan

4/11/2018

355

345

344

L + 2.85

%

L + 3.10

%

5/1/2023

New York

Office

$437 / sqft

71 %

Loan 8

Senior loan

(3)

8/6/2015

315

315

58

5.75

%

5.81

%

10/29/2022

Diversified - EUR

Other

n/a

71 %

Loan 9

Senior loan

1/11/2019

310

310

307

L + 4.35

%

L + 4.70

%

1/11/2026

Diversified - UK

Other

$306 / sqft

74 %

Loan 10

Senior loan

11/30/2018

286

286

285

n/m

(5)

n/m

(5)

8/9/2025

New York

Hospitality

$306,870 /  key

73 %

Loan 11

Senior loan

2/27/2020

300

282

279

L + 2.70

%

L + 3.03

%

3/9/2025

New York

Mixed-Use

$884 / sqft

59 %

Loan 12

Senior loan

7/31/2018

280

278

277

L + 3.10

%

L + 3.52

%

8/9/2022

San Francisco

Office

$701 / sqft

50 %

Loan 13

Senior loan

(3)

8/7/2019

746

270

52

L + 3.12

%

L + 3.55

%

9/9/2025

Los Angeles

Office

$183 / sqft

59 %

Loan 14

Senior loan

12/11/2018

310

257

255

L + 2.55

%

L + 2.96

%

12/9/2023

Chicago

Office

$216 / sqft

78 %

Loan 15

Senior loan

11/30/2018

254

248

247

L + 2.80

%

L + 3.17

%

12/9/2023

San Francisco

Hospitality

$364,513 /  key

73 %

Loans 16 - 123

Senior loan

(3)

Various

13,973

10,453

10,151

L + 3.31

(6)

L + 3.65

(6)

Various

Various

Various

Various

62 %

CECL reserve

(177)

Total/Wtd. avg.

$  21,475

$  17,270

$  16,292

L + 3.22

(6)

L + 3.58

(6)

3.3 yrs

65 %

Cash

All-in

Coupon

Yield

Blackstone  |

Blackstone Mortgage Trust, Inc.

APPENDIX

10

Consolidated Balance Sheets

($ in thousands, except per share data)

September 30, 2020

December 31, 2019

Assets

Cash and cash equivalents

$427,028

$150,090

Loans receivable

16,468,703

16,164,801

Current expected credit loss reserve

(177,026)

—

Loans receivable, net

16,291,677

16,164,801

Other assets

158,099

236,980

Total assets

$16,876,804

$16,551,871

Liabilities and equity

Secured debt agreements, net

$8,973,810

$10,054,930

Securitized debt obligations, net

2,168,083

1,187,084

Secured term loans, net

1,043,441

736,142

Convertible notes, net

615,541

613,071

Other liabilities

171,977

175,963

Total liabilities

12,972,852

12,767,190

Commitments and contingencies

—

—

Equity

Class A common stock, $0.01 par value

1,462

1,350

Additional paid-in capital

4,693,982

4,370,014

Accumulated other comprehensive income (loss)

9,645

(16,233)

Accumulated deficit

(821,725)

(592,548)

Total Blackstone Mortgage Trust, Inc. stockholders’

equity

3,883,364

3,762,583

Non-controlling interests

20,588

22,098

Total equity

3,903,952

3,784,681

Total liabilities and equity

$16,876,804

$16,551,871

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

$193,939

$213,873

$590,797

$662,001

Less: Interest and related expenses

78,978

111,957

268,070

347,536

Income from loans and other investments, net

114,961

101,916

322,727

314,465

Other expenses

Management and incentive fees

18,985

17,502

58,758

58,276

General and administrative expenses

11,242

9,741

34,320

28,951

Total other expenses

30,227

27,243

93,078

87,227

Decrease (increase) in current expected credit loss reserve

6,055

-

(173,466)

-

Income before income taxes

90,789

74,673

56,183

227,238

Income tax provision (benefit)

20

(721)

192

(573)

Net income

$90,769

$75,394

$55,991

$227,811

Net income attributable to non-controlling interests

(909)

(497)

(1,937)

(1,176)

Net income attributable to Blackstone Mortgage Trust, Inc.

$89,860

$74,897

$54,054

$226,635

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

146,484,651

134,536,683

140,157,620

128,485,701

Net income per share of common stock

$0.61

$0.56

$0.39

$1.76

Three Months Ended September 30,

Nine Months Ended September 30,

Blackstone  |

Blackstone Mortgage Trust, Inc.

APPENDIX

(1)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(2)

Represents realized gains on the repatriation of unhedged foreign currency. 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

Realized

hedging

and

foreign

currency

(loss)

income,

net

September 30, 2020

June 30, 2020

Net

income

(1)

$89,860

$17,544

(Decrease) increase in current expected credit loss reserve

(6,055)

56,819

Non-cash compensation expense

8,649

8,652

(2)

(7)

1,810

Other items

(240)

210

Adjustments attributable to non-controlling interests, net

143

139

Core Earnings

$92,350

$85,174

Weighted-average shares outstanding, basic and diluted

146,485

138,299

Core Earnings per share, basic and diluted

$0.63

$0.62

Three Months Ended

September 30, 2020

June 30, 2020

Stockholders' equity

$3,883,364

$3,874,763

Shares

Class A common stock

146,197

146,197

Deferred stock units

294

281

Total outstanding

146,491

146,478

Book value per share

$26.51

$26.45

Three Months Ended

September 30, 2020

June 30, 2020

Net income

(1)

$89,860

$17,544

Weighted-average shares outstanding, basic and diluted

146,485

138,299

Earnings per share, basic and diluted

$0.61

$0.13

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 September 30, 2020 and 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.

13

Reconciliation of Net Income to Core Earnings

(in thousands, except per share data)

Three Months Ended,

Sept 30,

2020

June 30,

2020

Mar 31,

2020

Net income (loss)

(1)

89,860

17,544

(53,350)

(Decrease) increase in current expected credit loss reserve

(6,055)

56,819

122,702

Non-cash compensation expense

8,649

8,652

8,678

Realized hedging and foreign currency (loss) income, net

(2)

(7)

1,810

8,467

Other items

(240)

210

596

Adjustments attributable to non-controlling interests, net

143

139

(561)

Core Earnings

92,350

85,174

86,532

Weighted-average shares outstanding, basic and diluted

146,485

138,299

135,619

Net income (loss) per share, basic and diluted

$0.61

$0.13

($0.39)

Core Earnings per share, basic and diluted

$0.63

$0.62

$0.64

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

nine

months

ended

September

30,

2020,

we

recorded

a

$173.5

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	Oct. 29, 2020
Document And Entity Information [Line Items]
Amendment Flag	false
Entity Central Index Key	0001061630
Document Type	8-K
Document Period End Date	Oct. 29, 2020
Entity Registrant Name	Blackstone Mortgage Trust, Inc.
Entity Incorporation, State or 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	15th 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
Title of 12(b) Security	Class A common stock, par value $0.01 per share
Trading Symbol	BXMT
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Former Address [Member]
Document And Entity Information [Line Items]
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