Blackstone Mortgage Trust (BXMT) 8-K Blackstone Mortgage Trust Reports

Blackstone Mortgage Trust, Inc.

April 28, 2015

First Quarter 2015 Results

Exhibit 99.2

Blackstone Mortgage Trust     1

First Quarter 2015 Highlights

Core

Earnings

of

$0.54

per

share

for

the

quarter

generated

by

our

growing

loan

origination

portfolio.

Closed

seven

new

loans

totaling

$937

million

of

commitments.

Funded

$903

million

of

loan

commitments,

offset

partially

by

$333

million

of

full

or

partial

repayments.

Floating

rate

senior

loan

portfolio

of

$5.0

billion

with

a

weighted

average

loan-to-value

of

64%.

Added

$1.1

billion

of

financing

capacity,

bringing

total

capacity

to

$5.4

billion

with

$3.4

billion

outstanding.

GAAP

net

income

of

$0.60

per

share

includes

net

income

of

$0.14

per

share

generated

by

the

CT

Legacy

portfolio,

reflecting

unrealized

gains

on

certain

investments

under

contract

for

sale;

consolidated

book

value

of

$24.87

per

share.

Post

quarter-end,

announced

definitive

agreement

to

acquire

a

$4.6

billion

senior

loan

portfolio

from

GE

Capital,

and

commitment

for

$4.0

billion

of

secured

financing

from

Wells

Fargo

to

finance

the

acquisition.

Also

post

quarter-end,

issued

23

million

shares

of

common

stock

at

a

public

offering

price

of

$30.50

per

share,

adding

more

than

$1.00

per

share

to

book

value.

Information included in this presentation is as of or for the period ended March 31, 2015, unless otherwise indicated. See Appendix for a definition of 

Core Earnings and a reconciliation to GAAP net income, as well as certain per share calculations that are referenced throughout this  presentation and 

information regarding the GE Capital loan portfolio acquisition and Wells Fargo financing. 

Blackstone Mortgage Trust     2

First

Quarter

2015

Balance

Sheet,

Net

Income,

and

Core

Earnings

(a)

(Dollars in Millions)

CT Legacy portfolio

$8.4

Secured financings

($24.2)

Equity

and

other

(c)

($3.3)

($6.7)

($1.7)

Loan Origination

portfolio

$62.8

$35.4

$(8.4)

$0.4

$-

Interest income

Interest expense

Non-cash comp.

G&A/other expenses

Net results

$62.8

$-

($23.8)

Core

Earnings

(b)

Net

Income

$31.8

+

+

+

+

Convertible notes,

net

Balance

Sheet

Mgmt./Incen. fees

$3.3

$1.2

($0.1)

$-

($5.5)

($1.8)

$1,454

$162

$3,358

$31

$4,943

(a)

See page 17 for Fourth Quarter 2014 Balance Sheet, Net Income, and Core Earnings.

(b)

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

(c)

Includes stockholders’ equity of $1.5 billion, less the net of (i) cash and cash equivalents of $18 million, (ii) accrued interest receivable, prepaid expenses, and other

assets of $34 million, and (iii) accounts payable, accrued expenses, and other liabilities of $49 million.

Core Earnings and Dividend Growth

BXMT's

loan

origination

activity

has

produced

strong,

consistent

Core

Earnings

and

dividend

growth

since

the platform re-launch in 2013.

Core Earnings

(Dollars in Millions)

Core Earnings

Per share

Dividends

Per share

$0.28

$0.41

$0.43

$0.43

$0.50

$0.52

$0.54

$0.27

$0.45

$0.48

$0.48

$0.50

$0.52

$0.52

$8.0

$12.0

$16.3

$20.5

$24.8

$30.1

$31.8

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

(a)

(a)

See Appendix for a definition of Core Earnings and reconciliations to GAAP net income.

(b)

Compound annual growth rate (“CAGR”) based on BXMT’s quarterly Core Earnings since 3Q’13.

Blackstone Mortgage Trust     3

Loan Portfolio Overview

Closed

$937

million

of

loans

during

the

quarter

with

an

average

new

commitment

of

$179

million.

Net loan fundings of $570 million during the quarter produced 12% portfolio growth.

Portfolio Gross ROI

(a)

continues to remain stable in the L + 12-13% range as improved financing terms

have generally balanced modestly lower portfolio asset yields.

Loan Portfolio Statistics

(Dollars in Millions)

Loan Portfolio Growth

(Net

Book

Value

and

Gross

ROI

(a)

,

Dollars

in

Millions)

L+12.7%    L+12.7%     L+12.9%    L+12.8%    L+12.8%

Gross

ROI:

Number of loans

60

Principal balance

$4,977

Net book value

$4,943

Wtd. avg. origination loan-to-value

64%

Wtd. avg. cash coupon

L + 4.26%

Wtd. avg. all-in yield

L + 4.68%

Wtd. avg. gross return on investment

(a)

L + 12.8%

Wtd. avg. maximum maturity

(b)

3.7 yrs.

$2,663

$3,488

$3,906

$4,429

$4,943

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

(a)

Weighted average gross return on investment (“Gross ROI”) is based on each asset’s all-in yield, assuming current rates with no dispositions, early payments, or

defaults, and all-in cost of secured debt, assuming full leverage at the asset level based on the maximum available leverage in place or in negotiation for each

investment, notwithstanding the amount actually borrowed. Gross ROI excludes costs related to convertible notes, management fees, and corporate-level expenses.

Gross ROI is presented solely for informational purposes and is not representative of net income recognized in prior or future periods.

(b)

Maximum maturity assumes all extension options are exercised, however BXMT’s floating rate loans may be repaid prior to such dates.

Blackstone Mortgage Trust     4

Portfolio Diversification

BXMT’s $5.0 billion floating rate portfolio is diversified by collateral property type and geographic

location, and is comprised of senior mortgages and similar credit quality loans.

Geographic Diversification

(Net Book Value,% of Total)

RI

MI

0.2%

NC

0.2%

0.6%

NY

29.9%

CA

14.3%

UK

12.2%

0.6%

NL

ES

1.6%

IL

7.5%

WA

7.5%

FL

5.7%

TX

4.7%

GA

4.5%

CAN

2.4%

DC

1.6%

AZ

1.4%

VA

1.4%

CO

1.3%

HI

1.0%

OR

0.9%

NV

0.2%

OH

0.2%

KY

0.1%

$316,934,052

$416,559,099

Collateral Diversification

(Net Book Value, % of Total)

Floating rate Loans

(Net Book Value, % of Total)

100.0%

Office

Multifamily

Hotel

Condo

Senior Loans

(Net Book Value, % of Total)

99.0%

Other

Retail

51%

26%

8%

5%

4%

6%

Blackstone Mortgage Trust     5

Credit Facilities and Liquidity

During

the

quarter,

BXMT

closed

two

upsizes

of

existing

revolving

credit

facilities

totaling

$500

million,

and

obtained

$262

million

of

additional

‘side

car’

capacity,

bringing

total

credit

facility

capacity

to

$4.1

billion.

GBP and EUR multi-currency facilities provide $597 million of currency-matched financings, which hedge

foreign currency denominated loans to the extent of leverage employed.

Total liquidity of $429

million

(a)

at quarter-end, providing for $1.5 billion

(a)

of potential loan originations

and fundings.

$410 million

L + 2.09%

$4.1 billion

Maximum

Collateral Asset

Debt Obligations

(b)

(Dollars in Thousands

Facility Size

Principal Balance

Potential

Outstanding

Available

Wells Fargo

1,000,000

$     

837,372

$               

654,656

$        

515,103

$        

139,553

$        

JP Morgan

(c)

739,147

741,916

580,899

513,813

67,086

Bank of America

750,000

501,041

397,700

397,033

667

MetLife

750,000

527,611

409,178

347,943

61,235

Citibank

500,000

625,053

474,103

340,511

133,592

Morgan Stanley

(c)

370,250

171,590

135,125

127,227

7,898

Total

4,109,397

$     

3,404,583

$           

2,651,661

$     

2,241,630

$     

410,031

$        

(a)

Total liquidity includes $18 million of cash and $410 million of available borrowings. Potential loan originations assumes 3.5x asset-level leverage on total liquidity, net of

$88 million of minimum liquidity requirements under applicable debt covenants.

(b)

Potential borrowings represent the total amount that could be drawn under each facility based on collateral already approved and pledged. When undrawn, these amounts

do not incur interest, but are immediately available to BXMT at its sole discretion under the terms of each revolving credit facility.

(c)

The maximum facility size for JP Morgan is composed of a $250 million facility, a £153 million ($227 million) facility, and $263 million related solely to a specific asset with a 

repurchase date of January 9, 2018. The maximum facility size for Morgan Stanley represents a £250 million ($370 million) facility that may be drawn in GBP or EUR.

Total

Credit

Facility

Capacity

Available Borrowings

Wtd.

Avg.

All-in

Cost

of

Credit

Facilities

Blackstone Mortgage Trust     6

)

Asset-Specific Financings

(a)

BXMT closed two additional asset-specific financings totaling $359 million, bringing asset-specific

capacity

to

$1.3

billion

and

total

financing

capacity

to

$5.4

billion

including

credit

facilities.

Opportunistic use of asset-specific financings preserves capacity of revolving repurchase facilities.

$1,274

(Dollars in Millions)

$454

•

Non-cross collateralized, with limited recourse and margin call

provisions

•

Four agreements with $407 million outstanding and $47 million of

future funding commitments

•

$539 million of collateral assets

Asset-Specific

Repurchase

Agreements

$709

•

Senior loan participations sold by BXMT

•

Four participation sales totaling $709 million

•

$879 million of whole loans financed

Loan

Participations

Sold

$111

•

Transaction structures resulting in realized sales of senior interests

•

One

$111

million

senior

interest

sold

in

a

$145

million

property

financing

•

$34 million mezzanine loan remains in BXMT’s portfolio

Non-Consolidated

Senior Interests

(a)

BXMT’s balance sheet includes asset-specific financings of $407 million classified as asset-specific repurchase agreements and $709 million classified as

loan participations sold. See page 14, Consolidated Balance Sheet.

Total Asset-Specific Financing Capacity

Blackstone Mortgage Trust     7

GE Transaction Overview

Pro forma BXMT portfolio maintains senior loan focus and strong credit metrics while dramatically

increasing borrower relationships and opportunities to grow origination volume.

Staged closings beginning in second quarter; potential for pool to reduce prior to closing due to transfer

restrictions and repayments.

GE Capital Loan Portfolio Acquisition –

Transaction Impact

(a)

$4.4 billion

82

4.21%

(b)

1.83%

(c)

100%

68%

54

$9.4 billion

142

4.24%

1.97%

99%

66%

96

99%

$5.0 billion

60

4.26%

2.09%

64%

42

% Senior Loans

Avg. Financing

Spread

Avg. Credit

Spread

Loans

Loan Portfolio

LTV

Relationships

Blackstone

Mortgage Trust

Pro Forma

Portfolio Acquisition

Blackstone

Mortgage Trust

Existing Portfolio

(a)

All information presented is as of March 31, 2015, and is based on review of loan documentation and other information provided by GE Capital in conjunction with acquisition due

diligence.

We

expect

to

continue

our

review

of

the

loan

portfolio

until

the

closings.

In

addition,

certain

loans

may

be

repaid

prior

to

the

closings

of

the

loan

portfolio

acquisition.

Accordingly, the loan portfolio that we ultimately acquire may have different characteristics than those described above, and such differences may be material. See Appendix for additional

information.

(b)

Represents

the

spread

over

the

applicable

base

rate

for

floating

rate

loans

and

over

the

applicable

swaps

rate

for

fixed

rate

loans.

Includes

$2.2

billion

of

fixed

rate

loans

with

a weighted

average duration of 2.1 years.

(c)

Reflects

weighted

average

year

one

financing

spread.

See

page

11

for

additional

detail.

Blackstone Mortgage Trust     9

In addition to increased scale in core US and UK markets, the acquired portfolio adds geographic and asset

class diversification to the loan portfolio.

GE Capital Loan Portfolio Acquisition –

Portfolio Diversification

(a)

Asset Class

Geography

Blackstone

Mortgage Trust

Pro Forma

Portfolio Acquisition

Blackstone

Mortgage Trust

Existing Portfolio

USA

84%

Canada

2%

UK

12%

Other

Europe

2%

USA

68%

Canada

15%

UK

10%

Germany

7%

USA

76%

Canada

8%

UK

11%

Germany

4%

Other

Europe

1%

Office

51%

Hotel

26%

Retail

4%

Resi.

13%

Other

6%

Manufactured

Housing

31%

Office

26%

Hotel

16%

Retail

12%

Resi.

4%

Other

11%

15%

Office

39%

Hotel

21%

Retail

8%

Resi.

9%

Other

8%

(a)

All information presented is as of March 31, 2015, and is based on review of loan documentation and other information provided by GE Capital in conjunction with

acquisition due diligence. We expect to continue our review of the loan portfolio until the closings. In addition, certain loans may be repaid prior to the closings of the

loan portfolio acquisition. Accordingly, the loan portfolio that we ultimately acquire may have different characteristics than those described above, and such

differences may be material. See Appendix for additional information.

Manufactured

Housing

Blackstone Mortgage Trust     10

Market leading term and currency matched credit facility to finance portfolio acquisition.

Financing includes a Year 1 Add-On Advance to manage near term maturities and reduce equity funding

requirements.

GE

Capital

Loan

Portfolio

Acquisition

–

Committed

Financing

Amount

All-in Pricing

Repayment

Term

Recourse

Currency

Year 1 Add-On Advance

Floating rate index + 1.83%; 5bps rate increase in years 4 and 5

Pro rata for first 80% of repayments and sequential thereafter

5+1+1

25%; $250 million floor

Currency matched

Incremental $222 million advance against expected year 1

repayments; sequential pay; L+3.10%; 100% recourse; 1-yr. term

See Appendix and our Current Report on Form 8-K filed on April 13, 2015 for additional information.

$3.8

billion

/

80%

plus

incremental

5%

Year

1

Add-On

Advance

Blackstone Mortgage Trust     11

Appendix

Loan Portfolio Details

The following table provides details of BXMT’s loan portfolio:

(a)

(b)

Maximum maturity date assumes all extension options are exercised, however BXMT’s floating rate loans may be repaid prior to such dates.

Includes (i) 44 senior loans with an aggregate principal balance of $2.4 billion and (ii) one mezzanine loan with a principal balance of $34 million resulting

from BXMT’s sale of a non-consolidated senior interest.

(Dollars in Millions)

Origination

Date

Loan Type

Total

Commitment

Principal

Balance

Book

Value

Cash

Coupon

All-In

Yield

Maximum

Maturity

(a)

Geographic

Location

Property

Type

Origination

LTV

Loan 1

3/4/15

Senior loan

320.0

$  

320.0

$  

320.0

$        

L + 4.25%

L + 4.51%

3/9/17

WA

Office

64%

Loan 2

5/22/14

Senior loan

296.2

296.2

292.4

L + 4.00%

L + 4.34%

5/22/19

UK

Hotel

57%

Loan 3

1/7/15

Senior loan

315.0

251.7

248.8

L + 3.50%

L + 3.95%

1/9/20

NY

Office

53%

Loan 4

11/21/13

Senior loan

181.0

181.0

180.0

L + 4.50%

L + 4.86%

11/9/18

NY

Condo

68%

Loan 5

12/9/14

Senior loan

210.7

163.3

162.0

L + 3.80%

L + 4.31%

12/9/19

Diversified-US

Office

65%

Loan 6

7/31/14

Senior loan

190.0

155.9

154.9

L + 3.50%

L + 4.01%

8/9/19

IL

Office

71%

Loan 7

1/7/14

Senior loan

160.0

154.1

153.1

L + 4.75%

L + 5.14%

1/7/19

Diversified-US

Other

71%

Loan 8

11/20/14

Senior loan

142.2

142.2

140.9

L + 3.40%

L + 3.62%

11/20/19

UK

Hotel

62%

Loan 9

12/17/13

Senior loan

139.6

139.6

139.0

L + 4.75%

L + 5.27%

1/9/19

NY

Office

70%

Loan 10

2/25/14

Senior loan

166.0

134.9

133.7

L + 4.40%

L + 4.82%

3/9/19

Diversified-US

Hotel

54%

Loan 11

1/30/14

Senior loan

145.9

133.4

133.1

L + 4.30%

L + 4.63%

12/1/17

NY

Hotel

39%

Loan 12

10/30/13

Senior loan

130.0

127.8

127.3

L + 4.38%

L + 4.62%

11/9/18

CA

Hotel

72%

Loan 13

6/20/14

Senior loan

137.5

124.7

123.8

L + 5.75%

L + 6.39%

6/20/16

CA

Hotel

45%

Loan 14

11/17/14

Senior loan

142.9

118.6

117.4

L + 5.50%

L + 5.94%

12/9/19

CAN

Office

52%

Loan 15

2/20/14

Senior loan

100.0

98.8

98.5

L + 4.40%

L + 4.58%

3/9/19

NY

Office

70%

Loans 16-60

Various

Various

(b)

2,750.5

2,435.3

2,418.5

L + 4.26%

L + 4.73%

Various

Various

Various

67%

Total/Wtd. avg.

5,527.5

$     

4,977.5

$     

4,943.4

$     

L + 4.26%

L + 4.68%

3.7 years

64%

Blackstone Mortgage Trust     13

Consolidated Balance Sheet

(Dollars in Thousands, Except per Share Data)

Blackstone Mortgage Trust     14

March 31, 2015

December 31, 2014

Assets

Cash and cash equivalents

18,474

$                   

51,810

$                   

Restricted cash

26,890

11,591

Loans receivable, net

4,943,383

4,428,500

Equity investments in unconsolidated subsidiaries

11,570

10,604

Accrued interest receivable, prepaid expenses, and other assets

85,381

86,016

Total assets

5,085,698

$            

4,588,521

$            

Liabilities and equity

Accounts payable, accrued expenses, and other liabilities

62,862

$                   

61,013

$                   

Revolving repurchase facilities

2,241,630

2,040,783

Asset-specific repurchase agreements

407,203

324,553

Loan participations sold

708,845

499,433

Convertible notes, net

162,460

161,853

Total liabilities

3,583,000

3,087,635

Equity

Class A common stock, $0.01 par value

585

583

Additional paid-in capital

2,030,760

2,027,404

Accumulated other comprehensive loss

(31,756)

(15,024)

Accumulated deficit

(542,654)

(547,592)

Total

Blackstone

Mortgage

Trust,

Inc.

stockholders’

equity

1,456,935

1,465,371

Non-controlling interests

45,763

35,515

Total equity

1,502,698

1,500,886

Total liabilities and equity

5,085,698

$            

4,588,521

$            

Consolidated Statement of Operations

(Dollars in Thousands, Except per Share Data)

Three Months Ended March 31,

% Change

2015

2014

vs. 1Q’14

Income from loans and other investments

Interest and related income

63,407

$                  

33,656

$                  

88.4%

Less: Interest and related expenses

24,161

12,074

100.1%

Income from loans and other investments, net

39,246

21,582

81.8%

Other expenses

Management and incentive fees

6,671

3,397

96.4%

General and administrative expenses

7,663

3,199

139.5%

Total other expenses

14,334

6,596

117.3%

Unrealized gain (loss) on investments at fair value

17,476

(1,339)

N/M

Income from equity investments in unconsolidated subsidiaries

3,950

-

100.0%

Income before income taxes

46,338

13,647

239.5%

Income tax provision

245

531

-53.9%

Net income

46,093

$                  

13,116

$                  

251.4%

Net income attributable to non-controlling interests

(10,700)

(51)

N/M

Net income attributable to Blackstone Mortgage Trust, Inc.

35,393

$                  

13,065

$                  

170.9%

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

58,576,025

37,967,365

Net income per share of common stock

0.60

$                      

0.34

$                      

76.5%

Blackstone Mortgage Trust     15

Per Share Calculations

(Amounts in Thousands, Except per Share Data)

Core Earnings

Reconciliation

Book Value

per Share

Earnings

per Share

Three Months Ended

March 31, 2015

December 31, 2014

Net income

35,393

$                       

21,490

$                       

CT Legacy Portfolio net (income) loss

(8,400)

4,833

Incentive management fees

1,212

817

Non-cash compensation expense

3,297

2,528

Other items

342

408

Core Earnings

31,844

$                       

30,076

$                       

Weighted-average shares outstanding, basic and diluted

58,576

58,190

Core Earnings per share, basic and diluted

0.54

$                           

0.52

$                           

March 31, 2015

December 31, 2014

Stockholders‘

e

quity

1,456,935

$                     

1,465,371

$               

Shares

Class A common stock

58,451

58,270

Deferred stock units

124

119

58,575

58,389

Book value per share

24.87

$                             

25.10

$                        

Three Months Ended

March 31, 2015

December 31, 2014

Net income

35,393

$                           

21,490

$                     

Weighted-average shares

outstanding, basic and diluted

58,576

58,190

Earnings per share, basic and diluted

0.60

$                               

0.37

$                          

Blackstone Mortgage Trust     16

Fourth Quarter 2014 Balance Sheet, Net Income, and Core Earnings

(Dollars in Millions)

CT Legacy portfolio

($4.8)

Secured financings

($21.3)

Equity and other

(b)

($2.5)

($6.3)

($1.1)

Loan Origination

portfolio

$57.5

$21.5

$4.8

$0.4

$-

Interest income

Interest expense

Non-cash comp.

G&A expenses

Net results

$57.5

$-

($20.9)

Core

Earnings

(a)

Net

Income

$30.1

+

+

+

+

Convertible notes,

net

Balance

Sheet

Mgmt./Incen. fees

$2.5

$0.8

$-

$-

($5.5)

($1.1)

$4,429

$22

$2,865

$162

$1,424

See page 19 for a definition of Core Earnings and page 16 for a reconciliation to GAAP net income.

Includes stockholders’ equity of $1.5 billion, less the net of (i) cash and cash equivalents of $52 million, (ii) accrued interest receivable, prepaid expenses, and

other assets of $37 million, and (iii) accounts payable, accrued expenses, and other liabilities of $47 million.

(a)

(b)

Blackstone Mortgage Trust     17

Blackstone Mortgage Trust     18

Reconciliation of Net Income to Core Earnings

(Amounts in Thousands, Except per Share Data)

Three Months Ended

September 30,

2013

December 31,

2013

Mach 31,

2014

June 30,

2014

September 30,

2014

December 31,

2014

Mach 31,

2015

Net income

8,320

$          

7,079

$         

13,065

$       

33,466

$       

22,024

$       

21,490

$       

35,393

$       

CT Legacy Portfolio segment net (income) loss

(437)

3,670

970

(15,508)

(134)

4,833

(8,400)

Incentive management fees

-

-

-

-

842

817

1,212

Non-cash compensation expense

94

1,158

1,834

2,382

1,619

2,528

3,297

Other items

-

107

423

162

404

408

342

Core Earnings

7,977

$          

12,014

$       

16,292

$       

20,502

$       

24,755

$       

30,076

$       

31,844

$       

Weighted-average shares outstanding, basic and diluted

28,895

29,364

37,967

47,978

49,211

58,190

58,576

Net income per share, basic and diluted

0.29

$            

0.24

$           

0.34

$           

0.70

$           

0.45

$           

0.37

$           

0.60

$           

Core Earnings per share, basic and diluted

0.28

$            

0.41

$           

0.43

$           

0.43

$           

0.50

$           

0.52

$           

0.54

$           

Definitions

Blackstone Mortgage Trust     19

Blackstone

Mortgage

Trust,

Inc.

(“BXMT”)

discloses

Core

Earnings,

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”)

in

this

presentation.

Core

Earnings

is

an

adjusted

measure

that

helps

BXMT

evaluate

its

performance

excluding

the

effects

of

certain

transactions

and

GAAP

adjustments

that

it

believes

are

not

necessarily

indicative

of

its

current

loan

origination

portfolio

and

operations.

BXMT

also

uses

Core

Earnings

to

calculate

the

incentive

and

base

management

fees

due

to

its

manager

under

its

management

agreement

and,

as

such,

BXMT

believes

that

the

disclosure

of

Core

Earnings

is

useful to investors.

Core

Earnings

is

defined

as

GAAP

net

income

(loss),

including

realized

losses

not

otherwise

included

in

GAAP

net

income

(loss),

and

excluding

(i)

net

income

(loss)

attributable

to

the

CT

Legacy

Portfolio,

(ii)

non-cash

equity

compensation

expense,

(iii)

incentive

management

fees,

(iv)

depreciation

and

amortization,

and

(v)

unrealized

gains

(losses)

or

similar

non-cash

items.

Core

Earnings

may

also

be

adjusted

from

time

to

time

to

exclude

one-time

events

pursuant

to

changes

in

GAAP

and

certain

other

non-cash

charges

as

determined

by

BXMT’s

manager,

subject

to

approval

by

a

majority

of

its

independent

directors.

Core

Earnings

does

not

represent

net

income

or

cash

generated

from

operating

activities

and

should

not

be

considered

as

an

alternative

to

GAAP

net

income,

or

an

indication

of

BXMT’s

GAAP

cash

flows

from

operations,

a

measure

of

BXMT’s

liquidity,

or

an

indication

of

funds

available

for

its

cash

needs.

In

addition,

BXMT’s

methodology

for

calculating

Core

Earnings

may

differ

from

the

methodologies

employed

by

other

companies

to

calculate

the

same

or

similar

supplemental

performance

measures,

and

accordingly,

its

reported

Core

Earnings

may

not

be

comparable to the Core Earnings reported by other companies.

Forward-Looking Statements

Blackstone Mortgage Trust     20

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

(“BXMT”)

current

views

with

respect

to,

among

other

things,

BXMT’s

proposed

loan

portfolio

acquisition

from

GE

Capital

and

operations

and

financial

performance.

You

can

identify

these

forward-looking

statements

by

the

use

of

words

such

as

“outlook,”

“indicator,”

“believes,”

“expects,”

“potential,”

“continues,”

“may,”

“will,”

“should,”

“seeks,”

“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.

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,

2014

and

under

the

section

entitled

“Risks

Related

to

the

Loan

Portfolio

Acquisition”

in

its

Current

Report

on

Form

8-K

filed

with

the

Securities

and

Exchange

Commission

on

April

13,

2015,

as

such

factors

may

be

updated

from

time

to

time

in

its

periodic

filings

with

the

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.

BXMT’s

acquisition

of

the

GE

Capital

loan

portfolio

is

expected

to

close

in

stages

beginning

in

the

second

quarter

of

2015,

subject

to

regulatory

approval

and

the

satisfaction

or

waiver

of

certain

customary

closing

conditions

set

forth

in

the

transaction

agreements.

However,

there

can

be

no

assurance

that

the

closing

of

the

acquisition

of

all

or

any

part

of

the

loan

portfolio

will

occur.

Additionally,

the

closing

of

the

Wells

Fargo

facility

is

subject

to

the

negotiation,

in

good

faith,

and

the

execution

and

delivery

of

definitive

documentation

acceptable

to

the

parties

and

certain

other

customary

terms

and

conditions,

and

there

can

be

no

assurance

that

the

Company

will

be

able

to

obtain

such

financing on terms acceptable to it or at all.