Blackstone Mortgage Trust, Inc. April 28, 2020 First Quarter 2020 Results Exhibit 99.2 |
Blackstone Mortgage Trust 1 BXMT Highlights BXMT benefits from the deep experience of Blackstone Real Estate, which is the largest real estate private equity manager in the world with a proven track record of safeguarding investments through market cycles over 28 years BXMT is taking a proactive and prudent approach during this period of COVID-19 uncertainty to fortify its balance sheet and enhance its strong liquidity position to navigate through the possibility of an elongated economic recovery 2022 Nearest corporate debt maturity Long duration liabilities, with no capital markets mark-to-market 2.8x Debt-to-Equity Ratio (b) Strong Balance Sheet 63% Origination Loan-to-Value (a) Well-capitalized, institutional sponsors committed to protecting their investments 100% Performing Portfolio Strong Credit Note: All figures in this presentation as of March 31, 2020, unless otherwise indicated. (a) Includes $692 million of Non-Consolidated Senior Interests as of March 31, 2020 and investment exposure to the $881 million 2018 Single Asset Securitization through an $84 million subordinate risk retention interest. (b) Represents (i) total outstanding secured debt agreements, secured term loans, and convertible notes, less cash, to (ii) total equity. (c) Includes $387 million of cash and cash equivalents and $434 million of available borrowings under credit facilities as of April 24, 2020. (d) Represents assets with no asset-level debt that are, however, included in the Term Loan B collateral pool absent their sale or direct financing as permitted under the Term Loan B. Robust resources to address COVID-19 market volatility $821M Current Liquidity (c) $1.6B Unencumbered assets (d) Strong Liquidity |
Blackstone Mortgage Trust 2 100% performing senior loan portfolio with an average origination LTV (b) of 63% $18.0 billion (b) portfolio secured by institutional quality real estate in major markets 1Q net funding of $433 million, with $1.0 billion of loan fundings and $567 million of repayments 1Q GAAP loss of $(0.39) per share (“EPS”) and Core Earnings (a) per share of $0.64; book value per share (“BVPS”) of $26.92 1Q EPS and BVPS impacted by unrealized loss reserve from adoption of the Current Expected Credit Loss (“CECL”) accounting standard; no loan losses or impairments 97% of the portfolio (b) is floating rate, with 63% of the portfolio benefitting from active LIBOR (c) floors as of quarter end First Quarter 2020 Results $13.1 billion (d) of match-funded, asset-level financing; 2.8x debt-to-equity ratio $3.7 billion (d) of asset-level financing is non-recourse, non mark-to-market, including $1.2 billion of CLO notes issued in 1Q Secured $1.1 billion of asset-level financing in 1Q on pre COVID-19 market terms (a) See Appendix for a definition and reconciliation to GAAP net income. (b) Includes $692 million of Non-Consolidated Senior Interests as of March 31, 2020 and investment exposure to the $881 million 2018 Single Asset Securitization through an $84 million subordinate risk retention interest. (c) Includes USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR. (d) Includes $797 million of securitized debt held by third-parties in the $881 million 2018 Single Asset Securitization, which is not consolidated on BXMT’s balance sheet. Portfolio Composition Portfolio Composition Earnings Earnings Capitalization Capitalization |
Blackstone Mortgage Trust 3 4Q '19 Book Value Per Share 1Q Book Value Accretion 1Q CECL Book Value Impact 1Q '20 Book Value per Share Earnings 1Q earnings reflect fully performing portfolio, with $11.4 billion of loans benefitting from active interest rate floors CECL reserve reflects macroeconomic impact of COVID-19 on overall CRE market; no loan losses or impairments (a) See Appendix for a definition and reconciliation to GAAP net income. (b) CECL book value impact includes $(0.13) per share initial CECL reserve recorded as an opening adjustment to retained earnings on January 1, 2020, and $(0.90) per share 1Q CECL reserve that impacts GAAP net income and earnings per share. Book Value Per Share (b) 1Q Core Earnings Per Share (a) $27.82 $26.92 $0.13 ($1.03) GAAP Earnings (Pre-CECL) GAAP Earnings (Pre-CECL) CECL Earnings Impact CECL Earnings Impact Earnings Per Share Earnings Per Share Hedging Income and Non-Cash Expenses Hedging Income and Non-Cash Expenses $0.51 ($0.90) $0.13 $(0.39) CECL Earnings Impact CECL Earnings Impact $0.90 Core Earnings Per Share Core Earnings Per Share $0.64 ($ in per share) |
Blackstone Mortgage Trust 4 Portfolio Composition $18.0 billion portfolio, (a) comprising 133 loans with 75% of collateral in gateway markets High quality senior loan portfolio with average origination LTV (a) of 63% $1.3 billion of 1Q originations across 9 loans and $240 million of fundings under previously originated loans (a) Includes $692 million of Non-Consolidated Senior Interests as of March 31, 2020 and investment exposure to the $881 million 2018 Single Asset Securitization through an $84 million subordinate risk retention interest. (b) States that compose less than 1% of total loan portfolio excluded. 54% 17% 11% 5% 3% 2% 1% 7% Condo Self-Storage Retail Industrial Office Hospitality Other Multi $18.0B portfolio IL 4% OH 1% MN 1% NY 24% FL 5% GA 3% DC 2% TN 1% 1% 3% NV TX CO 1% CA 15% HI 3% VA 5% ES 7% 1% DEU UK 11% IR 7% IT BE 1% 1% NL 1% AU 2% Major Market Focus (a)(b) Collateral Diversification (a) |
Blackstone Mortgage Trust 5 Capitalization Asset-level financing generally term-matched with no near-term maturities; no corporate debt maturities until 2022 Closed $1.5 billion CLO and $1.1 billion of asset-level financing in 1Q on pre COVID-19 market terms (a) Includes $348 million of asset-specific financings as of March 31, 2020. (b) Includes $2.3 billion of consolidated securitized debt obligations and $797 million of securitized debt held by third-parties in the $881 million 2018 Single Asset Securitization, which is not consolidated on BXMT’s balance sheet. (c) Represents $692 million of Non-Consolidated Senior Interests, which result from non-recourse sales of senior loan interests in loans BXMT originates. BXMT’s net investments in these loans are reflected in the form of mezzanine or other subordinate loans on BXMT’s balance sheet. (d) Reflects maximum advance rate under credit facilities relative to the origination LTV of the collateral assets as of March 31, 2020. (e) Represents (i) total outstanding secured debt agreements, secured term loans, and convertible notes, less cash, to (ii) total equity. Credit Facilities (a) 14 Credit Facilities Corporate Debt Term Loan and Convertible Notes Corporate Obligations Senior Loan Interests (c) $9.4 $1.4 $0.7 $10.8 Securitized Debt (b) $3.0 CLO and Single Asset Securitizations 2.8x Debt-to-Equity Ratio (e) Senior Syndications Financing (Outstanding Balance) ($ in billions) 51% Credit Facility Look-Through LTV (d) |
Blackstone Mortgage Trust 6 Facilities are generally term-matched, with no significant near-term maturities and no capital markets mark-to-market provisions No margin calls to date; agreed in principle with multiple lenders to create further flexibility in connection with deleveraging (b) 100% performing portfolio of directly originated senior loans with no impairments through April; no securities investments (a) Constructive loan modification (b) discussions with borrowers most affected by COVID-19 to ensure assets are well-positioned to sustain period of disruption Business Update Current liquidity (c) of $821 million; additional liquidity sources include $1.6 billion of unencumbered assets (d) and cash flow from operations Liquidity available to address credit facility deleveraging and loan future funding Credit Facilities Credit Facilities Portfolio Credit Portfolio Credit Liquidity Liquidity (a) Excludes securities retained in connection with securitization financings. (b) Certain loan modifications and credit facility agreements are yet to be executed and there is no guarantee that they will be. (c) Includes $387 million of cash and cash equivalents and $434 million of available borrowings under credit facilities as of April 24, 2020. (d) Represents assets with no asset-level debt that are, however, included in the Term Loan B collateral pool absent their sale or direct financing as permitted under the Term Loan B. |
Blackstone Mortgage Trust 7 Portfolio Credit 100% performing portfolio with no defaults, nonaccrual loans, or impairments Portfolio is 100% senior loans with a well-protected average origination LTV (a) of 63% All interest payments through April paid currently Strong, well-capitalized institutional sponsors; 74% repeat borrowers Borrowers most affected by COVID-19 generally focused on investing capital and stabilizing operations to withstand period of disruption 63% origination LTV (a) implies $10.4 billion of equity value for borrowers to protect (a) Includes $692 million of Non-Consolidated Senior Interests as of March 31, 2020 and investment exposure to the $881 million 2018 Single Asset Securitization through an $84 million subordinate risk retention interest. |
Blackstone Mortgage Trust 8 Credit Facilities $9.0 billion of credit facilities from 14 relationship lenders; only 13% secured by hospitality assets Credit facilities are backed by cross collateralized portfolios of diversified, high quality senior loans, with look-through LTV of 51% (a) to facility lenders No capital markets mark-to-market provisions or securities financings of any type; no corporate debt maturities before 2022 (a) Reflects maximum advance rate under credit facilities relative to the origination LTV of the collateral assets as of April 24, 2020. (b) Represents outstanding principal balance of credit facilities as of April 24, 2020. (c) Excludes $7 million per annum of scheduled amortization payments under the Term Loan B. Credit Facility Financing (b) (Outstanding Balance) $700 $403 $220 Corporate Debt Maturities (c) (Outstanding Balance) ($ in millions) $1.2bn $7.8bn All Other Collateral 87% Hospitality Collateral 13% 2020 2021 2022 2023 2024 2025 2026 Term Loan B Convertible Notes |
Blackstone Mortgage Trust 9 $821 million of liquidity, up from $667 million (b) at year end Payment of management and incentive fees in stock Liquidity Focus on fortifying balance sheet and enhancing strong liquidity position to manage through a range of COVID-19 outcomes Near-term direct liquidity options include asset sales/financings and operating cash flow, augmented by repayments ($3.4 billion of final maturities through 2022) (a) and capital markets access ($ in millions) 12/31/19 3/31/20 Current Cash Availability Current Liquidity (b) (a) Reflects final maturities of the outstanding loan portfolio as of April 24, 2020. (b) Current cash is as of April 24, 2020. For comparability, cash as of March 31, 2020 is reduced by an $84 million dividends payable, which was paid on April 15, 2020, and cash as of December 31, 2019 is reduced by a dividends payable of $84 million, which was paid on January 15, 2020. (c) Represents assets with no asset-level debt that are, however, included in the Term Loan B collateral pool absent their sale or direct financing as permitted under the Term Loan B. $667 $752 $821 Ongoing cash flow from operations Direct Liquidity Sources $1.6 billion of unencumbered assets (c) |
Appendix |
Blackstone Mortgage Trust 11 4Q '19 Loans Outstanding Fundings Repayments 1Q '20 Loans Outstanding First Quarter 2020 Operating Results & Net Fundings Net Fundings (b) ($ in billions) Operating Results ($ in millions) (a) 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 are not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements. (b) Excludes the impact of changes in foreign currency rates and related hedges for non-USD investments. (c) Includes $689 million of Non-Consolidated Senior Interests and investment exposure to the $930 million 2018 Single Asset Securitization through an $89 million subordinate risk retention interest. (d) Includes $692 million of Non-Consolidated Senior Interests and investment exposure to the $881 million 2018 Single Asset Securitization through an $84 million subordinate risk retention interest. GAAP Net Income Adjustments Core Earnings Interest Income 204.9 $ $ — 204.9 $ Interest Expense (104.2) 0.6 (103.6) Management and Incentive Fees (19.3) — (19.3) General and Administrative Expenses and Taxes (3.3) — (3.3) Increase in current expected credit loss reserve (122.7) 122.7 — Non-Cash Compensation (8.7) 8.7 — Hedging and Foreign Currency Income, net (a) — 8.5 8.5 Net Income Attributable to Non-controlling Interests (0.1) (0.6) (0.7) Total (53.4) $ 139.9 $ 86.5 $ $0.64 Core Earnings per Share $(0.39) Net Loss per Share $17.9 ($0.6) $1.0 $18.0 (c) (d) |
Blackstone Mortgage Trust 12 (a) 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. (b) 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 March 31, 2020, five loans in the portfolio have been financed with an aggregate $692 million of Non-Consolidated Senior Interests, which are included in the table above. (c) Portfolio excludes our $84 million subordinate risk retention interest in the $881 million 2018 Single Asset Securitization. (d) Maximum maturity assumes all extension options are exercised; however, floating rate loans generally may be repaid prior to their final maturity without penalty. (e) Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for weighted-average calculation. Portfolio Details ($ in millions) Origination Total Principal Net Book Maximum Property Loan Per Origination Loan Type Date (a) Loan (b)(c) Balance (c) Value Maturity (d) Location Type SQFT / Unit / Key LTV (a)(c) Loan 1 Senior loan 8/14/2019 $ 1,309 $ 1,309 $ 1,298 L + 2.50 % L + 2.85 % 12/23/2024 Dublin - IE Office $451 / sqft 74 % Loan 2 Senior loan 3/22/2018 962 962 959 L + 3.15 % L + 3.37 % 3/15/2023 Diversified - Spain Mixed-Use n/a 71 % Loan 3 Senior loan 5/11/2017 753 717 716 L + 3.40 % L + 3.60 % 6/10/2023 Washington DC Office $351 / sqft 62 % Loan 4 Senior loan 11/25/2019 724 616 615 L + 2.30 % L + 2.75 % 12/9/2024 New York Office $882 / sqft 65 % Loan 5 Senior loan (b) 8/6/2015 459 459 84 5.75 % 5.77 % 10/29/2022 Diversified - EUR Other n/a 71 % Loan 6 Senior loan 4/11/2018 355 345 345 L + 2.85 % L + 3.02 % 5/1/2023 New York Office $437 / sqft 71 % Loan 7 Senior loan 8/22/2018 363 341 339 L + 3.15 % L + 3.49 % 8/9/2023 Maui Hospitality $442,661 / key 61 % Loan 8 Senior loan 10/23/2018 352 338 337 L + 3.40 % L + 3.72 % 10/23/2021 New York Mixed-Use $572 / sqft 65 % Loan 9 Senior loan 1/11/2019 298 298 295 L + 4.35 % L + 4.70 % 1/11/2026 Diversified - UK Other $295 / sqft 66 % Loan 10 Senior loan 11/30/2018 293 280 278 L + 2.85 % L + 3.20 % 12/9/2023 New York Hospitality $299,941 / key 73 % Loan 11 Senior loan 2/27/2020 300 267 264 L + 2.70 % L + 3.03 % 3/9/2025 New York Mixed-Use $837 / sqft 59 % Loan 12 Senior loan 12/11/2018 310 249 247 L + 2.55 % L + 2.96 % 12/9/2023 Chicago Office $210 / sqft 78 % Loan 13 Senior loan 7/31/2018 285 248 246 L + 3.10 % L + 3.54 % 8/9/2022 San Francisco Office $622 / sqft 50 % Loan 14 Senior loan 11/30/2018 254 248 246 L + 2.80 % L + 3.17 % 12/9/2023 San Francisco Hospitality $363,659 / key 73 % Loan 15 Senior loan 5/9/2018 243 233 232 L + 2.60 % L + 3.03 % 5/9/2023 New York Industrial $66 / sqft 70 % Loans 16 - 132 Senior loans (b) Various 14,807 10,253 9,862 L + 3.31 % (e) L + 3.67 % (e) Various Various Various Various 62 % CECL reserve (113) Total/Wtd. avg. $ 22,067 $ 17,161 $ 16,251 L + 3.22 % (e) L + 3.56 % (e) 3.7 yrs 64 % Cash All-in Coupon Yield |
Blackstone Mortgage Trust 13 Consolidated Balance Sheets ($ in thousands, except per share data) March 31, 2020 December 31, 2019 Assets Cash and cash equivalents 355,018 $ 150,090 $ Loans receivable 16,363,608 16,164,801 Current expected credit loss reserve (112,694) — Loans receivable, net 16,250,914 16,164,801 Other assets 152,157 236,980 Total assets 16,758,089 $ 16,551,871 $ Liabilities and equity Secured debt agreements, net 9,335,709 $ 10,054,930 $ Securitized debt obligations, net 2,239,640 1,187,084 Secured term loans, net 734,695 736,142 Convertible notes, net 613,882 613,071 Other liabilities 159,736 175,963 Total liabilities 13,083,662 12,767,190 Commitments and contingencies — — Equity Class A common stock, $0.01 par value 1,354 1,350 Additional paid-in capital 4,378,851 4,370,014 Accumulated other comprehensive income (loss) 18,248 (16,233) Accumulated deficit (747,533) (592,548) Total Blackstone Mortgage Trust, Inc. stockholders' equity 3,650,920 3,762,583 Non-controlling interests 23,507 22,098 Total equity 3,674,427 3,784,681 Total liabilities and equity 16,758,089 $ 16,551,871 $ |
Blackstone Mortgage Trust 14 Consolidated Statements of Operations ($ in thousands, except per share data) Three Months Ended March 31, 2020 2019 Income from loans and other investments Interest and related income 204,875 $ 224,759 $ Less: Interest and related expenses 104,239 118,688 Income from loans and other investments, net 100,636 106,071 Other expenses Management and incentive fees 19,277 19,790 General and administrative expenses 11,791 9,313 Total other expenses 31,068 29,103 Increase in current expected credit loss reserve (122,702) — (Loss) income before income taxes (53,134) 76,968 Income tax provision 149 101 Net (loss) income (53,283) $ 76,867 $ Net income attributable to non-controlling interests (67) (302) Net (loss) income attributable to Blackstone Mortgage Trust, Inc. (53,350) $ 76,565 $ Per share information (basic and diluted) Weighted-average shares of common stock outstanding 135,619,264 124,333,048 Net (loss) income per share of common stock (0.39) $ 0.62 $ |
Blackstone Mortgage Trust 15 Per Share Calculations (Amounts in thousands, except per share data) Three Months Ended March 31, 2020 December 31, 2019 Net (loss) income (a) (53,350) $ 78,931 $ Weighted-average shares outstanding, basic and diluted 135,619 134,832 Earnings per share, basic and diluted (0.39) $ 0.59 $ Three Months Ended March 31, 2020 December 31, 2019 Stockholders' equity 3,650,920 $ 3,762,583 $ Shares Class A common stock 135,355 135,004 Deferred stock units 268 260 Total outstanding 135,623 135,264 Book value per share 26.92 $ 27.82 $ Book Value per Share Earnings per Share (a) Represents net (loss) income attributable to Blackstone Mortgage Trust, Inc. (b) 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 are not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements. Three Months Ended March 31, 2020 December 31, 2019 Net (loss) income (a) (53,350) $ 78,931 $ Increase in current expected credit loss reserve 122,702 – Non-cash compensation expense 8,678 7,380 Hedging and foreign currency income, net (b) 8,467 4,767 Other items 596 68 Increase attributable to non-controlling interests (561) – Core Earnings 86,532 $ 91,146 $ Weighted-average shares outstanding, basic and diluted 135,619 134,832 Core Earnings per share, basic and diluted 0.64 $ 0.68 $ Core Earnings Reconciliation |
Blackstone Mortgage Trust 16 Definitions 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 three months ended March 31, 2020, we recorded a $122.7 million increase in current expected credit loss 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. |
Blackstone Mortgage Trust 17 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 BXMT’s current views with respect to, among other things, its operations and financial performance and the potential 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. |