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

Blackstone Mortgage Trust, Inc.

October 29, 2013

Third Quarter 2013 Results

Exhibit 99.2

Blackstone Mortgage Trust

1

Third Quarter 2013 Highlights

________________________________________________

(1)

Core Earnings

(1)

of $0.28 per share for the quarter driven by significant growth in our Loan Origination

portfolio.

Paid a third quarter dividend of $0.27 per share on October 15, 2013, our first quarterly dividend as

Blackstone Mortgage Trust.

Net income of $8.3 million, or $0.29 per share for 3Q, and consolidated book value of $713.3 million, or

$24.68 per share as of September 30, 2013.

Closed ten senior floating-rate loans during the quarter representing total commitments of $728.9 million,

bringing our total Loan Origination portfolio to $1.3 billion as of September 30, 2013.

Cumulative originations of $2.2 billion, including�� three loans closed subsequent to quarter-end totaling

$330.8  million of commitments, and $381.7  million of loans with terms agreed.

Closed or upsized four credit facilities during the quarter, providing an additional $591.8 million of credit.

Total equity capital invested or committed in our Loan Origination portfolio of $523.6 million, with available

capital of $95.0 million.

Continued successful resolutions in the CT Legacy Portfolio, yielding a net $20.3 million capital distribution

to BXMT in October.

Refer to the following page for a reconciliation of Core Earnings to GAAP net income.

Blackstone Mortgage Trust

2

$707

$643

$1,286

Third Quarter 2013 Balance Sheet, Results and Core Earnings

Core Earnings

(Dollars in Thousands)

$0.28

Core Earnings per Share

Balance Sheet and 3Q Results

(1)

(Dollars in Millions)

$0.27

Dividends per Share

Net income

$8,320

-

CT Legacy net income

(437)

+  Non-cash compensation

94

Core earnings

$7,977

Loan portfolio

Repurchase

facilities

CT Legacy

portfolio, net

Equity and

other

(2)

Other expenses    

($3.4)

Net income              

$8.3

$64

Interest income      

$15.1

Interest expense    

($3.8)

CT Legacy, net         

$0.4

(1)

Refer to Appendix for an allocation of the consolidated balance sheet and statement of operations between our Loan Origination and CT Legacy Portfolio segments.

(2)

Includes stockholders’ equity of $713.3 million, and the net of (i) cash and cash equivalents of $10.3 million, (ii) accrued interest receivable, prepaid expenses, and other

assets of $8.7 million, and (iii) accounts payable, accrued expenses, and other liabilities of $12.8 million.

Blackstone Mortgage Trust

3

As of September 30, 2013:

•

$1.3 billion of floating-rate loans, indexed to

one-month LIBOR.

•

$643.0 million of floating-rate liabilities, also

indexed to one-month LIBOR.

•

Return on $649.0 million of equity capital is

highly correlated to LIBOR.

–

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

100bp increase in LIBOR would have

increased our net income by

$6.5

million

(2)

per annum.

•

Our equity value is insulated from changes in

interest rates because our loans and

borrowings are both 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.

Loan Capitalization

(1)

(Dollars in Millions)

Floating-rate

loans

Floating-rate

borrowings

Equity capital

$649

$643

$1,292

(1)

Includes only our Loan Origination portfolio with an aggregate principal balance of $1.3 billion, capitalized with $643.0 million of debt and $649.0 million of equity as

of September 30, 2013. Excludes the assets, liabilities, and equity of the CT Legacy Portfolio.

(2)

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

Blackstone Mortgage Trust

4

During the quarter, we closed ten new loans with total commitments of $728.9 million. Of this amount, we

funded $628.2 million as of September 30, 2013.

Received a $58.0 million full repayment of one loan, and $35.7 million of partial pay-downs and loan

participation sales.

Our portfolio is diversified by collateral property type and geographic location.

Land

Office

Multifamily

Hotel

Midwest

West

Southeast

Northeast

Portfolio Diversification

(1)

(Net Book Value, Dollars in Millions)

Southwest

Retail

Portfolio Statistics

(1)

(Dollars in Millions)

$228

$64

$384

$43

$567

$496

$207

$125

$86

$372

(1)

Includes only loans in our Loan Origination portfolio. For information on loans in the CT Legacy Portfolio, refer to our Form 10-Q, filed on October 29, 2013.

(2)

Weighted-average return on equity is based on each assets’ weighted-average yield and all-in cost of debt, assuming full leverage at the asset level.

(3)

Maximum maturity assumes all extension options are exercised.

Loan Origination Portfolio – September 30, 2013

Sep. 30, 2013

Number of loans

17

Principal balance

1,292

$          

Net book value

1,286

$          

Wtd. Avg. LTV

64%

Wtd. Avg. cash coupon

L + 4.31%

Wtd. Avg. all-in yield

L + 4.88%

Wtd. Avg. return on equity

(2)

L + 12.9%

Wtd. Avg. maximum maturity

(3)

4.3 yrs.

Blackstone Mortgage Trust

5

Credit

Facilities

and

Liquidity

–

September

30,

2013

During the quarter, we upsized two of our revolving repurchase facilities and closed two new asset-specific

repurchase agreements, providing for an additional $591.8 million of credit.

Total liquidity of $354.8 million as of September 30, 2013, including cash and available borrowings.

•

Our undrawn revolving debt does not incur interest, but represents immediately accessible liquidity.

________________________________________________

(1)

Potential borrowings represent the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are

immediately available to us at our sole discretion under the terms of each revolving credit facility.

(2)

The maximum facility size with this lender is $250.0 million plus $112.0 million related solely to a specific asset with a repurchase date of June 27, 2014.

(3)

Represents an aggregate of three asset-specific repurchase agreements with the same lender. The $31.0 million of potential borrowings under these agreements are contingent

on the funding of unfunded collateral loan commitments.

(4)

Includes cash coupon and related fees paid on our outstanding borrowings of $643.0 million as of September 30, 2013.

$1.7 billion

Total Credit Facilities

$344.5 million

Available Borrowings

L + 2.49%

Wtd. Avg. All-in Cost of Debt

(4)

Collateral Asset

Maximum

Principal

Repurchase Borrowings

(1)

(Dollars in Thousands)

Facility Size

Balance

Potential

Outstanding

Available

Lender 1

500,000

$        

278,811

$           

210,930

$        

59,404

$          

151,526

$        

Lender 2

500,000

232,875

176,168

5,000

171,168

Lender 3

(2)

362,000

378,950

296,760

274,913

21,847

Lender 4

(3)

334,721

401,352

334,721

303,723

-

Total

1,696,721

$     

1,291,988

$       

1,018,579

$     

643,040

$        

344,541

$        

Blackstone Mortgage Trust

6

CT Legacy Portfolio –

September 30, 2013

The 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”).

CT Legacy Portfolio book value was $64.3 million as of quarter-end, which represents additional capital

that, upon collection, will be available for investment in our Loan Origination business.

•

In

October,

we

received

a

net

$20.3

million

distribution

from

CT

Legacy

Partners,

representing

our

net

share of its first common equity distribution.

•

During the third quarter, CT CDO I sold its one loan classified as held-for-sale for net proceeds of

$3.2

million.

•

Our share of the carried interest allocation from CTOPI, which is not reflected in our book value,

increased $1.4

million during the quarter to a net $13.5 million.

Refer

to

the

Appendix

for

additional

discussion

of

the

CT

Legacy

Portfolio.

$2.22

CT Legacy Portfolio

Book Value per Share

(2)

$0.02

CT Legacy Portfolio

Earnings per Share

(2)

CT Legacy

Partners

CT CDO I

Other

Net Book Value

(1)

(Dollars in Millions)

________________________________________________

(1)

Refer to the Appendix for detailed calculation of the Net Book Value of the components of the CT Legacy Portfolio.

(2)

For calculation of segment Book Value and Equity per Share, refer to our Form 10-Q, filed on October 29, 2013.

$9

$4

$51

Appendix

Blackstone Mortgage Trust

8

Consolidated Balance Sheet

(Dollars in Thousands, Except per Share Data)

Sep. 30, 2013

Dec. 31, 2012

Assets

Cash and cash equivalents

10,283

$         

15,423

$         

Restricted cash

76,396

14,246

Loans receivable, net

1,362,891

141,500

Loans receivable, at fair value

66,063

-

Investment in CT Legacy Asset, at fair value

-

132,000

Equity investments in unconsolidated subsidiaries

25,632

13,306

Accrued interest receivable, prepaid expenses, and other assets

36,045

5,868

Total assets

1,577,310

$   

322,343

$      

Liabilities and Equity

Accounts payable, accrued expenses, and other liabilities

47,495

$         

21,209

$         

Secured notes

9,030

8,497

Repurchase obligations

643,040

-

Securitized debt obligations

74,203

139,184

Total liabilities

773,768

168,890

Equity

Class A common stock, $0.01 par value

288

293

Additional paid-in capital

1,242,986

609,002

Accumulated deficit

(529,947)

(535,851)

Total Blackstone Mortgage Trust, Inc. stockholders' equity

713,327

73,444

Non-controlling interests

90,215

80,009

Total equity

803,542

153,453

Total liabilities and equity

1,577,310

$   

322,343

$      

Blackstone Mortgage Trust

9

Consolidated Balance Sheet: Segment Allocation

September 30, 2013

(Dollars in Thousands)

Loan

Origination

CT Legacy

Portfolio

Total

Assets

Cash and cash equivalents

10,283

$         

-

$               

10,283

$      

Restricted cash

-

76,396

76,396

Loans receivable, net

1,285,891

77,000

1,362,891

Loans receivable, at fair value

-

66,063

66,063

Equity investments in unconsolidated subsidiaries

-

25,632

25,632

Accrued interest receivable, prepaid expenses, and other assets

8,655

27,390

36,045

Total assets

1,304,829

$   

272,481

$      

1,577,310

$

Liabilities and Equity

Accounts payable, accrued expenses, and other liabilities

12,781

$         

34,714

$         

47,495

$      

Secured notes

-

9,030

9,030

Repurchase obligations

643,040

-

643,040

Securitized debt obligations

-

74,203

74,203

Total liabilities

655,821

117,947

773,768

Equity

Total Blackstone Mortgage Trust, Inc. stockholders' equity

649,008

64,319

713,327

Non-controlling interests

-

90,215

90,215

Total equity

649,008

154,534

803,542

Total liabilities and equity

1,304,829

$   

272,481

$      

1,577,310

$

Blackstone Mortgage Trust

10

Consolidated Statement of Operations

Three Months Ended September 30,

Nine Months Ended September 30,

(Dollars in Thousands, Except per Share Data)

2013

2012

2013

2012

Income from loans and other investments:

Interest and related income

18,853

$            

6,944

$              

26,327

$            

28,423

$            

Less: Interest and related expenses

4,407

5,147

6,492

33,902

Income (loss) from loans and other investments, net

14,446

1,797

19,835

(5,479)

Other Expenses:

General and administrative

4,048

3,991

9,512

6,314

Total other expenses

4,048

3,991

9,512

6,314

Impairments, provisions, and valuation adjustments

(136)

14,798

5,664

22,304

Gain on extinguishment of debt

-

-

38

-

Gain on deconsolidation of subsidiaries

-

-

-

146,380

Income from equity investments in unconsolidated subsidiaries

-

411

-

1,312

Income before income taxes

10,262

13,015

16,025

158,203

Income tax (benefit) provision

(264)

166

329

467

Income from continuing operations

10,526

$            

12,849

$            

15,696

$            

157,736

$          

Income (loss) from discontinued operations, net of tax

-

51

-

(863)

Net income

10,526

$            

12,900

$            

15,696

$            

156,873

$          

Net income attributable to non-controlling interests

(2,206)

(5,901)

(7,743)

(81,038)

Net income attributable to Blackstone Mortgage Trust, Inc.

8,320

$              

6,999

$              

7,953

$              

75,835

$            

Per share information (Basic)

Weighted-average shares of common stock outstanding

28,894,515

2,317,343

14,865,530

2,296,910

Income from continuing operations per share of common stock

0.29

$                  

3.00

$                  

0.53

$                  

33.39

$              

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

-

$                    

0.02

$                  

-

$                    

(0.37)

$               

Net income per share of common stock

0.29

$                 

3.02

$                 

0.53

$                 

33.02

$              

Per share information (Diluted)

Weighted-average shares of common stock outstanding

28,894,515

2,461,603

14,865,530

2,444,206

Income from continuing operations per share of common stock

0.29

$                  

2.82

$                  

0.53

$                  

31.40

$              

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

-

$                    

0.02

$                  

-

$                    

(0.37)

$               

Net income per share of common stock

0.29

$                 

2.84

$                 

0.53

$                 

31.03

$              

Blackstone Mortgage Trust

11

Consolidated Statement of Operations: Segment Allocation

Three Months Ended September 30, 2013

Nine Months Ended September 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

15,143

$     

3,710

$        

18,853

$     

17,051

$     

9,276

$        

26,327

$     

Less: Interest and related expenses

3,822

585

4,407

3,991

2,501

6,492

Income from loans and other investments, net

11,321

3,125

14,446

13,060

6,775

19,835

Other expenses:

General and administrative

3,459

589

4,048

6,339

3,173

9,512

Total other expenses

3,459

589

4,048

6,339

3,173

9,512

Valuation adjustments

-

(136)

(136)

-

5,664

5,664

Gain on extinguishment of debt

-

-

-

-

38

38

Income before income taxes

7,862

2,400

10,262

6,721

9,304

16,025

Income tax (benefit) provision

(21)

(243)

(264)

(19)

348

329

Net income

7,883

$        

2,643

$        

10,526

$     

6,740

$        

8,956

$        

15,696

$     

Net income attributable to non-controlling interests

-

(2,206)

(2,206)

(193)

(7,550)

(7,743)

Net income attributable to Blackstone Mortgage Trust, Inc.

7,883

$        

437

$           

8,320

$        

6,547

$        

1,406

$        

7,953

$        

Blackstone Mortgage Trust

12

Loan Origination Portfolio Details

________________________________________________

(1)

Includes only loans in our Loan Origination portfolio. For information on loans in the CT Legacy Portfolio, refer to our Form 10-Q, filed on October 29, 2013.

(2)

All loans are floating rate loans indexed to LIBOR as of September 30, 2013. LIBOR was 0.18% as of September 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

291.5

$

290.1

$    

L + 3.80%

L + 3.98%

6/15/18

West

Office

53%

Loan 2

Sr. mortgage

140.0

139.7

L + 3.70%

L + 3.83%

9/30/20

Northeast

Multifamily

67%

Loan 3

Sr. mortgage

109.8

109.7

L + 5.25%

L + 8.20%

7/9/14

Northeast

Multifamily

65%

Loan 4

Sr. mortgage

87.2

86.6

L + 4.25%

L + 4.52%

8/10/18

Diversified

Hotel/Office

61%

Loan 5

Sr. mortgage

81.0

80.6

L + 3.85%

L + 4.03%

7/9/18

Southeast

Multifamily

75%

Loan 6

Sr. mortgage

69.2

69.0

L + 3.95%

L + 4.05%

6/9/18

West

Office

72%

Loan 7

Sr. mortgage

68.0

67.7

L + 4.00%

L + 4.23%

6/10/16

Northeast

Office

68%

Loan 8

Sr. mortgage

64.0

64.3

L + 8.00%

L + 9.46%

2/9/15

Northeast

Land

69%

Loan 9

Sr. mortgage

57.1

56.5

L + 3.85%

L + 4.24%

10/10/18

Diversified

Multifamily

76%

Loan 10

Sr. mortgage

48.4

48.5

L + 5.00%

L + 5.68%

12/9/16

Midwest

Hotel

53%

Loan 11

Sr. mortgage

46.3

45.8

L + 4.25%

L + 4.64%

7/10/18

Southwest

Hotel

69%

Loan 12

Sr. mortgage

45.9

45.0

L + 5.00%

L + 6.07%

8/9/18

Southeast

Office

73%

Loan 13

Sr. mortgage

43.5

43.1

L + 4.50%

L + 5.11%

7/16/17

Northeast

Retail

69%

Loan 14

Sr. mortgage

42.6

42.1

L + 3.85%

L + 4.29%

9/10/18

Diversified

Multifamily

77%

Loan 15

Sr. mortgage

37.5

37.1

L + 3.85%

L + 4.04%

8/9/18

Midwest

Office

68%

Loan 16

Sr. mortgage

32.9

32.9

L + 3.95%

L + 4.20%

8/9/17

Southwest

Hotel

51%

Loan 17

Sr. mortgage

27.1

27.1

L + 3.87%

L + 3.87%

7/7/17

Northeast

Hotel

32%

Total/Wtd. Avg.

1,292.0

$   

1,285.8

$

L + 4.31%

L + 4.88%

4.3 years

64%

The following table provides details of our loan portfolio

(1)

as of September 30, 2013:

Blackstone Mortgage Trust

13

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

the

management

incentive

awards

plan.

On October 9, 2013, CT Legacy Partners made a $75.0 million distribution to its common equity holders,

including $36.2 million to us. We paid $11.1 million of this distribution to fully repay the related secured

notes, and $4.8 million under the related management incentive awards.

Refer

to

our

Form

10-Q,

filed

on

October

29,

2013,

for

additional

details

of

CT

Legacy

Partners’

loans receivable portfolio.

________________________________________________

(1)

Refer to Note 8 to our financial statements contained in the Form 10-Q, filed on October 29, 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 $9.0 million on our balance sheet as of September 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 September 30, 2013. As of September 30,

2013, our balance sheet includes $7.3 million in accounts payable and accrued expenses for the management incentive awards plan. 

(Dollars in Thousands)

September 30, 2013

Gross investment in CT Legacy Partners

Restricted cash

76,396

$                     

Loans receivable, at fair value

66,063

Equity investments (three-hotel portfolio)

4,153

Accrued interest receivable, other assets, and accounts payable,

net

16,489

Non-controlling interests

(90,215)

Total gross investment in CT Legacy Partners

72,886

$                     

Secured notes, including prepayment premium

(1)(2)

(11,059)

Management incentive awards plan, fully vested

(1)(3)

(11,010)

Net investment in CT Legacy Partners

50,817

$                     

Blackstone Mortgage Trust

14

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 third quarter, CT CDO I sold its one loan classified as held-for-sale for net proceeds of

$3.2

million.

Refer

to

our

Form

10-Q,

filed

on

October

29,

2013,

for

additional

details

of

CT

CDO

I’s

loans

receivable

portfolio.

(Dollars in Thousands)

September 30, 2013

Assets and liabilities of CT CDO I

Loans receivable, net

77,000

$                       

Accrued interest receivable, prepaid expenses, and other assets

6,336

Total assets

83,336

Accounts payable, accrued expenses and other liabilities

40

Securitized debt obligations

74,203

Total liabilities

74,243

Net investment in CT CDO I

9,093

$                         

Blackstone Mortgage Trust

15

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 $295.4 million has been realized and

$196.1 million remains outstanding (carried at 143% of cost) as of September 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 September 30, 2013, Blackstone Mortgage Trust was allocated $14.9 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 $13.5 million. Other than tax-advance distributions received in 2012, we have not received any

cash payments from CTOPI.

•

The net carried interest allocation of $13.5 million increased $1.4 million from 2Q, 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

$13.5

million

of

net

carried

interest.

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

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.