Blackstone Mortgage Trust (BXMT) 8-K Blackstone Mortgage Trust Reports Second Quarter 2013

Blackstone Mortgage Trust, Inc.

July 30, 2013

Second Quarter 2013 Results

Exhibit 99.2

Blackstone Mortgage Trust

1

Second Quarter 2013 Highlights

We

successfully

completed

our

“re-IPO”

offering

of

25.9

million

shares

of

class

A

common

stock

for

$25.50

per share.

•

Yielded gross proceeds of $659.8 million and net proceeds of $633.8 million after underwriter discounts

and expenses.

Closed eight new senior mortgage loans during the quarter with total commitments of $765.2 million.

Subsequent to quarter-end, we closed five loans totaling $289.1 million of commitments, for a total

of $1.1 billion.

An additional $376.4 million of loans with terms agreed are expected to close in the third quarter and we

have a robust pipeline of additional origination opportunities.

•

At our current pace of originations, we expect to be fully invested prior to year-end.

Closed

four

credit

facilities

during

the

quarter,

providing

$1.0

billion

of

credit.

Subsequent

to

quarter-end,

we upsized one of the facilities by $250.0 million, and are in the process of closing and upsizing additional

credit facilities.

Collected

$99.4

million

of

principal

repayments

in

our

CT

Legacy

Portfolio,

and

repaid

all

remaining

legacy

repurchase obligations.

June 30, 2013 consolidated assets, including our CT Legacy Portfolio, were $1.1 billion and consolidated

liabilities

were

$285.4

million,

resulting

in

stockholders’

equity

of

$712.7

million,

(1)

or

$24.67

per

share

($22.45

from

Loan

Originations;

$2.22

from

CT

Legacy

Portfolio).

Net

income

of

$2.7

million,

or

$0.22

per

share

for

the

quarter.

•

Second quarter results driven by recoveries in our CT Legacy Portfolio as the majority of our loan

closings occurred in June.

________________________________________________

(1)

Total equity of $808.7 million includes noncontrolling interests of $89.0 million.

Blackstone Mortgage Trust

2

Loan Originations

During the quarter, we closed eight new loans with total commitments of $765.2 million. Of this amount,

we funded $756.6 million as of June 30, 2013.

Weighted-average LTV of new loan originations of 65%.

All newly originated loans are floating rate senior mortgage loans.

________________________________________________

(1)

Includes only our newly originated loan portfolio. For information on loans in our CT Legacy Portfolio, refer to our Form 10-Q, filed on July 30, 2013

(2)

Maximum maturity assumes all extension options are exercised.

Portfolio Diversification

(1)

(Dollars in Millions)

Land

Office

Multifamily

Hotel

Midwest

West

Southeast

Northeast

$64

$366

$190

$133

$424

$81

$200

$48

(Dollars in Thousands)

Portfolio Statistics

(1)

Number of loans

8

Principal balance

756,638

$          

Net book value

753,101

$          

Wtd. Avg. cash coupon

L + 4.44%

Wtd. Avg. all-in yield

L + 5.26%

Wtd. Avg. maximum maturity

(2)

4.0 yrs.

Blackstone Mortgage Trust

3

Loans Receivable Portfolio

________________________________________________

(1)

Includes only our newly originated loan portfolio. For information on loans in our CT Legacy Portfolio, refer to our Form 10-Q, filed on July 30, 2013.

(2)

All loans are floating rate loans indexed to LIBOR as of June 30, 2013. LIBOR was 0.19% as of June 30, 2013.

(3)

Maximum maturity date assumes all extension options are exercised.

(Dollars in Millions)

Loan Type

Principal

Balance

Book

Value

Cash

Coupon

(2)

All-In

Yield

(2)

Maximum

Maturity

(3)

Geographic

Location

Property

Type

Origination

LTV

Loan 1

Sr. mortgage

68.3

$       

68.1

$       

L + 3.95%

L + 4.05%

6/9/18

West

Office

71%

Loan 2

Sr. mortgage

300.0

298.5

L + 3.80%

L + 3.98%

6/15/18

West

Office

59%

Loan 3

Sr. mortgage

109.8

109.0

L + 5.25%

L + 8.41%

7/9/14

Northeast

Multifamily

80%

Loan 4

Sr. mortgage

58.0

57.4

L + 3.50%

L + 4.50%

7/9/18

West

Hotel

74%

Loan 5

Sr. mortgage

48.4

48.4

L + 5.00%

L + 5.68%

12/9/16

Midwest

Hotel

53%

Loan 6

Sr. mortgage

27.1

27.1

L + 3.87%

L + 3.87%

7/9/17

Northeast

Hotel

32%

Loan 7

Sr. mortgage

81.0

80.6

L + 3.85%

L + 4.03%

7/9/18

Southeast

Multifamily

75%

Loan 8

Sr. mortgage

64.0

64.0

L + 8.00%

L + 9.67%

2/9/15

Northeast

Land

69%

Total/Wtd. Avg.

756.6

$     

753.1

$     

L + 4.44%

L + 5.26%

4.0 years

65%

The

following

table

provides

details

of

our

loan

portfolio

(1)

as

of

June

30,

2013:

Blackstone Mortgage Trust

4

Credit Facilities

During the quarter, we closed four credit facilities, providing $1.0 billion of credit. We had outstanding

borrowings of $165.2 million, with immediately available additional borrowings of $304.6 million based

on collateral pledged as of quarter-end.

All of our borrowings are term-matched to their collateral assets, contain margin call provisions limited to

asset-specific credit events,

and

are

limited

recourse.

Our

weighted-average cash coupon was LIBOR plus

1.98%

(1)

on

our outstanding borrowings as of June 30, 2013.

________________________________________________

$1.0 billion

Total Credit Facilities

$165.2 million

Outstanding Borrowings

L + 1.98%

(1)

Wtd. Average Cash Coupon

(1)

Represents the cash coupon (excluding fees) paid on our outstanding borrowings of $165.2 million as of June 30, 2013. Our credit facilities incur interest at LIBOR

plus spreads ranging between 1.75% and 3.25% per annum, depending on the attributes of the collateral assets.

(2)

Available borrowings is based on assets pledged as collateral under credit facilities as of June 30, 2013. There were two loans with an aggregate principal balance of

$173.8 million as of June 30, 2013 that were not pledged under repurchase agreements, and therefore are available to be pledged as collateral in the future.

Collateral Assets

Repurchase Balances

Principal

Net Book

Maximum

Current

Available

(Dollars in Thousands)

Facility Size

Balance

Value

Borrowings

Borrowings

Borrowings

(2)

Lender 1

250,000

$     

126,300

$ 

125,557

$ 

101,040

$     

46,400

$       

54,640

$         

Lender 2

250,000

300,000

298,533

250,000

-

250,000

Lender 3

250,000

156,438

156,039

118,839

118,839

-

Lender 4

250,000

-

-

-

-

-

Total

1,000,000

$ 

582,738

$ 

580,129

$ 

469,879

$     

165,239

$     

304,640

$       

Blackstone Mortgage Trust

5

Loan Capitalization

(1)

(Dollars in Millions)

Floating-Rate

Loans

Floating-Rate

Borrowings

•

$756.6 million of floating-rate loans, indexed

to one-month LIBOR.

•

$165.2 million of floating-rate liabilities, also

indexed to one-month LIBOR.

•

Return on $591.4 million of equity capital is

highly correlated to LIBOR.

–

All else equal, as of June 30, 2013, a

100bps increase in LIBOR would increase

our

net

income

by

$5.9

million

(2)

per

annum.

•

Our equity value is insulated from changes in

interest rates because both our loans and

borrowings are LIBOR-based.

Floating-Rate Business Model

Because of our LIBOR-based lending and funding business model, our returns increase with rising short-

term interest rates, and therefore our asset and equity values are insulated from such increases.

________________________________________________

(1)

Includes only our newly originated loan portfolio of $756.6 million, capitalized with $165.2 million of debt and $591.4 million of equity. Excludes the assets, liabilities, and equity

of our CT Legacy Portfolio.

(2)

Excludes the impact of LIBOR floors on certain of our loans receivable investments.

Equity Capital

$756.6

$165.2

$591.4

Blackstone Mortgage Trust

6

Stockholders’

Equity and Book Value per Share

Stockholders’

equity totaled $712.7 million, or $24.67 per share as of June 30, 2013.

•

On

May

29,

2013,

we

completed

an

offering

of

25.9

million

shares

of

class

A

common

stock

for

gross

proceeds of $656.8 million, and net proceeds of $633.6 million after underwriter discounts and

expenses.

•

On July 26, 2013, we filed an S-3 universal shelf registration with the SEC, which permits us to

periodically offer various debt and equity securities to the public. Future equity offerings remain

subject to the 180-day lock-up agreement we executed in conjunction with our May 2013 offering of

class A common stock.

•

Our book value per share includes $22.45 attributable to our loan origination business and $2.22

attributable to our CT Legacy Portfolio.

________________________________________________

(Dollars in Thousands, Except per Share Data)

Loan Origination

CT Legacy

Portfolio

Total

Stockholders' equity

648,693

$              

63,996

$              

712,689

$           

Shares

Class A common stock

28,801,651

28,801,651

28,801,651

Stock units

(1)

92,824

92,824

92,824

Total

28,894,475

28,894,475

28,894,475

Book value per share

22.45

$                   

2.22

$                   

24.67

$                 

(1)

Stock units are granted to certain members of our board of directors in lieu of cash compensation for services and in lieu of dividends earned on previously

granted stock units. See Note 12 to our financial statements contained in the Form 10-Q, filed on July 30, 2013, for additional details.

Blackstone Mortgage Trust

7

CT Legacy Portfolio

Our

CT

Legacy

Portfolio

consists

of:

our

investment

in

CT

Legacy

Partners,

our

residual

interests

in

CT

CDO

I,

and

our

carried

interest

in

CT

Opportunity

Partners

I,

LP

(“CTOPI”).

As we focus on the growth of our loan origination business, we continue to aggressively asset manage the

remaining investments in our CT Legacy Portfolio.

•

$99.4 million of principal collections on legacy assets during the quarter.

•

$6.0 million of positive valuation and mark-to-market adjustments on the CT Legacy Partners and CT

CDO I loan portfolios during the quarter.

•

Net carried interest allocation from CTOPI increased $1.7 million during the quarter to $12.1 million.

Recognition

of

the

revenue

related

to

the

CTOPI

carried

interest

has

been

deferred,

resulting

in

a

net

book value of zero as of June 30, 2013.

•

Repaid $102.9 million of legacy debt and interest rate swap liabilities during the quarter.

Refer to Appendix for additional discussion of the CT Legacy Portfolio.

$2.22

CT Legacy Portfolio

Book Value per Share

$6.0 million

Positive Valuation Adjustments in 2Q

CT Legacy

Partners

CT CDO I

Other

Net Book Value

(Dollars in Millions)

$9.0

$4.9

$50.1

Appendix

Blackstone Mortgage Trust

9

Consolidated Balance Sheet

(Dollars in Thousands)

Jun. 30, 2013

Dec. 31, 2012

Assets

Cash and cash equivalents

59,746

$          

15,423

$          

Restricted cash

21,972

14,246

Loans receivable, net

830,101

141,500

Loans held-for-sale, net

3,800

-

Loans receivable, at fair value

117,549

-

Investment in CT Legacy Asset, at fair value

-

132,000

Equity investments in unconsolidated subsidiaries

23,240

13,306

Accrued interest receivable, prepaid expenses, and other assets

30,697

5,868

Total assets

1,087,105

$    

322,343

$       

Liabilities & Equity

Accounts payable, accrued expenses and other liabilities

36,879

$          

21,209

$          

Secured notes

8,848

8,497

Repurchase obligations

165,239

-

Securitized debt obligations

74,472

139,184

Total liabilities

285,438

168,890

Commitments and contingencies

-

-

Equity

Class A common stock, $0.01 par value

288

293

Additional paid-in capital

1,242,892

609,002

Accumulated deficit

(530,491)

(535,851)

Total Blackstone Mortgage Trust, Inc. stockholders' equity

712,689

73,444

Noncontrolling interests

88,978

80,009

Total equity

801,667

153,453

Total liabilities and equity

1,087,105

$    

322,343

$       

Blackstone Mortgage Trust

Consolidated Balance Sheet: Segment Allocation

June 30, 2013

(Dollars in Thousands)

Loan

Origination

CT Legacy

Portfolio

Total

Assets

Cash and cash equivalents

59,746

$          

-

$                 

59,746

$       

Restricted cash

-

21,972

21,972

Loans receivable, net

753,101

77,000

830,101

Loans held-for-sale, net

-

3,800

3,800

Loans receivable, at fair value

-

117,549

117,549

Equity investments in unconsolidated subsidiaries

-

23,240

23,240

Accrued interest receivable, prepaid expenses, and other assets

5,912

24,785

30,697

Total assets

818,759

$       

268,346

$       

1,087,105

$ 

Liabilities & Equity

Accounts payable, accrued expenses and other liabilities

4,827

$            

32,052

$          

36,879

$       

Secured notes

-

8,848

8,848

Repurchase obligations

165,239

-

165,239

Securitized debt obligations

-

74,472

74,472

Total liabilities

170,066

115,372

285,438

Equity

Total Blackstone Mortgage Trust, Inc. stockholders' equity

648,693

63,996

712,689

Noncontrolling interests

-

88,978

88,978

Total equity

648,693

152,974

801,667

Total liabilities and equity

818,759

$       

268,346

$       

1,087,105

$ 

10

Blackstone Mortgage Trust

Consolidated Statement of Operations

Three Months Ended June 30,

Six Months Ended June 30,

(Dollars in Thousands, Except Share and per Share Data)

2013

2012

2013

2012

Income from loans and other investments:

Interest and related income

6,017

$           

6,763

$           

7,473

$           

21,479

$         

Less: Interest and related expenses

1,306

5,413

2,083

28,754

Income (loss) from loans and other investments, net

4,711

1,350

5,390

(7,275)

Other expenses:

General and administrative

3,427

1,567

5,465

2,323

Total other expenses

3,427

1,567

5,465

2,323

Impairments, provisions, and valuation adjustments

6,000

3,704

5,800

7,506

Gain on extinguishment of debt

38

-

38

-

Gain on deconsolidation of subsidiaries

-

-

-

146,380

Income from equity investments in unconsolidated subsidiaries

-

205

-

901

Income before income taxes

7,322

3,692

5,763

145,189

Income tax provision

554

-

593

301

Income from continuing operations

6,768

$           

3,692

$           

5,170

$           

144,888

$      

Loss from discontinued operations, net of tax

-

(341)

-

(914)

Net income

6,768

$           

3,351

$           

5,170

$           

143,974

$      

Net income attributable to noncontrolling interests

(4,020)

(1,068)

(5,537)

(75,137)

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

2,748

$           

2,283

$           

(367)

$             

68,837

$         

Per share information (Basic)

Income (loss) from continuing operations per share of common stock

0.22

$             

1.15

$             

(0.05)

$            

30.50

$           

Loss from discontinued operations per share of common stock

-

$               

(0.15)

$            

-

$               

(0.40)

$            

Net income (loss) per share of common stock

0.22

$             

1.00

$             

(0.05)

$            

30.10

$           

Weighted average shares of common stock outstanding

12,401,274

2,289,352

7,734,774

2,286,582

Per share information (Diluted)

Income (loss) from continuing operations per share of common stock

0.22

$             

1.08

$             

(0.05)

$            

28.67

$           

Loss from discontinued operations per share of common stock

-

$               

(0.15)

$            

-

$               

(0.40)

$            

Net income (loss) per share of common stock

0.22

$             

0.93

$             

(0.05)

$            

28.27

$           

Weighted average shares of common stock outstanding

12,401,274

2,442,686

7,734,774

2,435,339

11

Blackstone Mortgage Trust

Consolidated Statement of Operations: Segment Allocation

Three Months Ended June 30, 2013

Six Months Ended June 30, 2013

(Dollars in Thousands)

Loan

Origination

CT Legacy

Portfolio

Total

Loan

Origination

CT Legacy

Portfolio

Total

Income from loans and other investments:

Interest and related income

1,908

$       

4,109

$       

6,017

$       

1,908

$       

5,565

$       

7,473

$       

Less: Interest and related expenses

168

1,137

1,306

168

1,915

2,083

Income from loans and other investments, net

1,739

2,972

4,711

1,739

3,651

5,390

Other expenses:

General and administrative

2,153

1,274

3,427

2,883

2,582

5,465

Total other expenses

2,153

1,274

3,427

2,883

2,582

5,465

Valuation adjustments

-

6,000

6,000

-

5,800

5,800

Gain on extinguishment of debt

-

38

38

-

38

38

Income before income taxes

(413)

7,736

7,322

(1,144)

6,907

5,763

Income tax provision

2

552

554

40

553

593

Net (loss) income

(415)

$         

7,183

$       

6,768

$       

(1,184)

$     

6,354

$       

5,170

$       

Net income attributable to noncontrolling interests

-

(4,020)

(4,020)

-

(5,537)

(5,537)

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

(415)

$         

3,164

$       

2,749

$       

(1,184)

$     

817

$          

(367)

$         

12

Blackstone Mortgage Trust

CT Legacy Portfolio: CT Legacy Partners

CT Legacy Partners is the March 2011 restructuring vehicle that owns our remaining legacy asset

portfolio

(1)

. Blackstone Mortgage Trust owns a controlling interest in CT Legacy Partners, subject to

liabilities under its secured notes and management incentive awards plan.

During the second quarter, CT Legacy Partners had $36.9 million of realizations. Proceeds were used

to repay the remaining $20.2 million outstanding under its repurchase facility and terminate its

remaining interest rate swap agreements.

•

Refer

to

our

Form

10-Q,

filed

on

July

30,

2013,

for

additional

details

of

CT

Legacy

Partners’

loans

receivable portfolio.

________________________________________________

(Dollars in Thousands)

June 30, 2013

Gross investment in CT Legacy Partners

Restricted cash

21,972

$                  

Loans receivable, at fair value

117,549

Equity investments (three-hotel portfolio)

4,108

Accrued interest receivable, other assets, and accounts payable, net

17,355

Noncontrolling interests

(88,978)

Total gross investment in CT Legacy Partners

72,006

$                 

Secured notes, including prepayment premium

(1)(2)

(11,059)

Management incentive awards plan, fully vested

(1)(3)

(10,867)

Net investment in CT Legacy Partners

50,080

$                 

13

(1)

See Note 8 to our financial statements contained in the Form 10-Q, filed on July 30, 2013, for additional details on the CT Legacy Partners structure.

(2)

Includes the full potential prepayment premium on secured notes. This liability is carried at its amortized basis of $8.8 million on our balance sheet as of

June 30, 2013.

(3)

Assumes full payment of the management incentive awards plan based on a hypothetical GAAP liquidation value of CT Legacy Partners as of June 30,

2013. As of June 30, 2013, our balance sheet includes $6.8 million in accounts payable and accrued expenses for the management incentive awards plan.

Blackstone Mortgage Trust

CT Legacy Portfolio: CT CDO I

CT CDO I is a collateralized debt obligation issued in 2004. Blackstone Mortgage Trust owns the

residual debt and equity positions of CT CDO I.

During the second quarter, CT CDO I had $62.5 million of investment repayments. Proceeds were used to

repay its senior outstanding securitized debt obligations.

•

Refer to our Form 10-Q, filed on July 30, 2013, for additional details of CT CDO I’s loans receivable

portfolio.

(Dollars in Thousands)

June 30, 2013

Assets and liabilities of CT CDO I

Loans receivable, net

77,000

$                  

Loans held-for-sale, net

3,800

Accrued interest receivable, prepaid expenses, and other assets

2,838

Total assets

83,638

Accounts payable, accrued expenses and other liabilities

155

Securitized debt obligations

74,472

Total liabilities

74,627

Net investment in CT CDO I

9,011

$                    

14

Blackstone Mortgage Trust

CT Legacy Portfolio: CTOPI

CTOPI

is

a

private

equity

real

estate

fund

that

we

sponsored

and

formed

in

2007.

The

fund

invested  

$491.5 million in 39 transactions between 2007 and 2012, of which $291.8 million has been realized

and

$199.7

million

remains

outstanding

(carried

at

137%

of

cost)

as

of

June

30,

2013.

The carried interest in CTOPI entitles us to earn incentive compensation in an amount equal to 17.7% of

the fund’s profits, after a 9% preferred return and 100% return of capital to the CTOPI limited partners.

•

We own a net 55% of the carried interest of CTOPI’s general partner; the remaining 45% is payable

under incentive awards to our former employees.

As of June 30, 2013, Blackstone Mortgage Trust was allocated $13.5 million of carried interest from

CTOPI based on a hypothetical liquidation of the fund, reduced by tax-advance distributions received

for a net asset of $12.1 million. Other than tax-advance distributions, we have not received any cash

payments from CTOPI.

•

The net carried interest allocation of $12.1 million, increased $1.7 million from 1Q, and is based on

the fair value of CTOPI’s net assets.

•

Recognition

of

the

revenue

related

to

the

CTOPI

carried

interest

has

been

deferred,

resulting

in

no

contribution

to

book

value

from

the

$12.7

million

of

net

carried

interest.

15

Blackstone Mortgage Trust

Forward-Looking Statements

16

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

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,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,”

“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, 2012, as such factors may be updated from time to time in its periodic filings with the

Securities and Exchange Commission, 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. Blackstone undertakes no obligation to publicly update or

review any forward-looking statement, whether as a result of new information, future developments or otherwise.