Blackstone Mortgage Trust 8K Reports Third Quarter 2020 Results | BXMT 29 Oct 20

Blackstone

Mortgage Trust, Inc.

Third Quarter 2020 Results

OCTOBER 29, 2020

Exhibit 99.2

Blackstone |

Blackstone Mortgage Trust, Inc.

BXMT HIGHLIGHTS

(1)

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

(2)

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

(3)

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

(4)

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

BXMT

continued

deliver

strong

earnings

3Q,

generating

$0.61

EPS

and

$0.63

Core

EPS

(1)

$18.1 billion

(2)

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

102%

dividend

coverage

(3)

99%

interest

collection

$1.2B

total

liquidity

(4)

Consistent earnings through a

historically volatile period

Senior mortgage loan portfolio

continues to outperform

Match-funded liability structure with

substantial liquidity

Stable Earnings

Stable Credit Performance

Blackstone |

Blackstone Mortgage Trust, Inc.

THIRD QUARTER 2020 RESULTS

(1)

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

(2)

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

(3)

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

(4)

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

Earnings

GAAP

earnings

per

$0.61

and

Core

Earnings

(1)

per

$0.63;

book

value per share of $26.51

Generated strong earnings while maintaining elevated liquidity levels during the

quarter;

total

liquidity

quarter

end

$1.2

billion

(2)

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

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

Portfolio

$18.1

billion

(3)

senior

loan

portfolio

secured

institutional

quality

real

estate

major

markets,

with

weighted

average

origination

LTV

(3)(4)

64%

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

commitment to our collateral

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

Capitalization

Stable corporate debt structure with no near-term maturities

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

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

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

component of our balance sheet and further diversifying financing sources

Blackstone |

Blackstone Mortgage Trust, Inc.

(1)

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

EARNINGS

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

BXMT earnings remained steady

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

Strong Results

Through

Volatile

Period

(1)

$0.61

3Q GAAP Earnings

per share

$0.63

3Q Core Earnings

per share

Average USD LIBOR

Core Earnings per Share

1.40%

0.35%

0.16%

$0.64

$0.62

$0.63

1Q ‘20

2Q ‘20

3Q ‘20

Blackstone |

Blackstone Mortgage Trust, Inc.

Office 56%

Multi 11%

Retail 3%

Condo 1%

Other

PORTFOLIO

(1)

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

(2)

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

$18.1

billion

(1)

senior

loan

portfolio

comprising

124

loans;

large

average

loan

balance

$146

million

reflects

significant equity investment from our institutional sponsors

$342 million of loan fundings

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

Major Market Focus

(1)(2)

Collateral Diversification

(1)

$18.1B

portfolio

AU, 1%

17%

TN, 1%

23%

VA, 4%

DC, 2%

HI, 3%

DEU, 1%

IT, 1%

NL, 1%

UK, 11%

IR, 7%

ES, 7%

BE, 1%

Self-Storage

Industrial

Hospitality

17%

Blackstone |

Blackstone Mortgage Trust, Inc.

COVID-Related

Loan

Modifications

(1)

PORTFOLIO

(1)

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

(2)

Cash-in

modifications

includes

loan

modifications

involving

additional

financial

commitment

from

sponsors

the

form

loan

paydowns,

guaranties,

additional

equity,

other,

similar

provisions.

Loan portfolio continues to perform with minimal interest deferral

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

financial commitments from sponsors

—

Minor reserve deferrals or reallocations

—

Extension of business plan milestones

—

Well-capitalized sponsors supporting assets

through COVID period

—

New cash equity contributed in exchange for

more time to complete business plans

No Modifications

80%

COVID-Related

20%

Cash-in

(2)

15%

Other

Blackstone |

Blackstone Mortgage Trust, Inc.

(1)

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

(2)

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

(3)

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

CAPITALIZATION

Maintained substantial liquidity of $1.2 billion

(1)

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

(2)

of 2.6x

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

Corporate Debt

(3)

(outstanding balance; $ in millions)

$403

$220

$1,009

2020

2021

2022

2023

2024

2025

2026

Debt-to-Equity Ratio

(2)

3.0x

2.8x

2.6x

12/31/19

3/31/20

6/30/20

9/30/20

2.6x

Blackstone |

Blackstone Mortgage Trust, Inc.

Appendix

Blackstone |

Blackstone Mortgage Trust, Inc.

$18.3

$18.1

$0.3

$0.5

2Q ’20 Loans

Outstanding

Fundings

Repayments

3Q ’20 Loans

Outstanding

APPENDIX

(1)

Primarily

represents

realized

gains

the

repatriation

unhedged

foreign

currency.

These

amounts

are

not

included

GAAP

net

income,

but

rather

component

Other

Comprehensive

Income

in our consolidated financial statements.

(2)

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

(3)

Includes $740 million of Non-Consolidated Senior Interests and investment exposure to the $857 million 2018 Single Asset Securitization through an $82 million subordinate interest.

(4)

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

Net Fundings

($ in billions)

Operating Results

($ in millions)

$0.61

net income per share

$0.63

core earnings per share

(2)(3)

(4)

GAAP Net

Income

Adjustments

Core

Earnings

Interest income

$193.9

$ -

$193.9

Interest expense

(79.0)

(0.2)

(79.2)

Management and incentive fees

(19.0)

General and administrative

expenses and taxes

(2.6)

Decrease in current expected

credit loss reserve

6.1

(6.1)

Non-cash compensation

(8.6)

8.6

Realized hedging and

foreign currency income, net

(1)

Net income attributable to non-

controlling interests

(0.9)

0.1

(0.8)

Total

$89.9

$2.4

$92.3

Blackstone |

Blackstone Mortgage Trust, Inc.

APPENDIX

(1)

Portfolio excludes our $79 million subordinate interest in the $808 million 2018 Single Asset Securitization.

(2)

Date loan was originated or acquired by us, and the LTV as of such date. Origination dates are subsequently updated to reflect material loan modifications.

(3)

In certain instances, loans are financed through the non-recourse sale of a senior loan interest that is not included in the consolidated financial statements. As of September 30, 2020, five loans in

the portfolio have been financed with an aggregate $716 million of Non-Consolidated Senior Interests, which are included in the table above.

(4)

Maximum maturity assumes all extension options are exercised; however, floating rate loans generally may be repaid prior to their final maturity without penalty.

(5)

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

(6)

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

Portfolio Details

(1)

($ in millions)

Origination

Total

Principal

Net Book

Maximum

Property

Loan Per

Origination

Loan Type

Date

(2)

Loan

(3)

Balance

(3)

Value

Maturity

(4)

Location

Type

SQFT / Unit / Key

LTV

(2)

Loan 1

Senior loan

8/14/2019

$ 1,264

$ 1,256

L + 2.50

L + 2.83

12/23/2024

Dublin - IE

Office

$460 / sqft

74 %

Loan 2

Senior loan

3/22/2018

995

992

L + 3.15

L + 3.37

3/15/2023

Diversified - Spain

Mixed-Use

n/a

71 %

Loan 3

Senior loan

11/25/2019

724

646

L + 2.30

L + 3.18

12/9/2024

New York

Office

$925 / sqft

65 %

Loan 4

Senior loan

5/11/2017

647

616

615

L + 3.40

L + 3.57

6/10/2023

Washington DC

Office

$302 / sqft

62 %

Loan 5

Senior loan

8/22/2018

363

357

356

L + 3.15

L + 3.49

8/9/2023

Maui

Hospitality

$463,671 / key

61 %

Loan 6

Senior loan

10/23/2018

352

347

L + 3.40

L + 3.67

1/23/2022

New York

Mixed-Use

$588 / sqft

65 %

Loan 7

Senior loan

4/11/2018

355

345

344

L + 2.85

L + 3.10

5/1/2023

New York

Office

$437 / sqft

71 %

Loan 8

Senior loan

(3)

8/6/2015

315

5.75

5.81

10/29/2022

Diversified - EUR

Other

n/a

71 %

Loan 9

Senior loan

1/11/2019

310

307

L + 4.35

L + 4.70

1/11/2026

Diversified - UK

Other

$306 / sqft

74 %

Loan 10

Senior loan

11/30/2018

286

285

n/m

(5)

n/m

(5)

8/9/2025

New York

Hospitality

$306,870 / key

73 %

Loan 11

Senior loan

2/27/2020

300

282

279

L + 2.70

L + 3.03

3/9/2025

New York

Mixed-Use

$884 / sqft

59 %

Loan 12

Senior loan

7/31/2018

280

278

277

L + 3.10

L + 3.52

8/9/2022

San Francisco

Office

$701 / sqft

50 %

Loan 13

Senior loan

(3)

8/7/2019

746

270

L + 3.12

L + 3.55

9/9/2025

Los Angeles

Office

$183 / sqft

59 %

Loan 14

Senior loan

12/11/2018

310

257

255

L + 2.55

L + 2.96

12/9/2023

Chicago

Office

$216 / sqft

78 %

Loan 15

Senior loan

11/30/2018

254

248

247

L + 2.80

L + 3.17

12/9/2023

San Francisco

Hospitality

$364,513 / key

73 %

Loans 16 - 123

Senior loan

(3)

Various

13,973

10,453

10,151

L + 3.31

(6)

L + 3.65

(6)

Various

62 %

CECL reserve

(177)

Total/Wtd. avg.

$ 21,475

$ 17,270

$ 16,292

L + 3.22

(6)

L + 3.58

(6)

3.3 yrs

65 %

Cash

All-in

Coupon

Yield

Blackstone |

Blackstone Mortgage Trust, Inc.

APPENDIX

Consolidated Balance Sheets

($ in thousands, except per share data)

September 30, 2020

December 31, 2019

Assets

Cash and cash equivalents

$427,028

$150,090

Loans receivable

16,468,703

16,164,801

Current expected credit loss reserve

(177,026)

—

Loans receivable, net

16,291,677

16,164,801

Other assets

158,099

236,980

Total assets

$16,876,804

$16,551,871

Liabilities and equity

Secured debt agreements, net

$8,973,810

$10,054,930

Securitized debt obligations, net

2,168,083

1,187,084

Secured term loans, net

1,043,441

736,142

Convertible notes, net

615,541

613,071

Other liabilities

171,977

175,963

Total liabilities

12,972,852

12,767,190

Commitments and contingencies

—

Equity

Class A common stock, $0.01 par value

1,462

1,350

Additional paid-in capital

4,693,982

4,370,014

Accumulated other comprehensive income (loss)

9,645

(16,233)

Accumulated deficit

(821,725)

(592,548)

Total Blackstone Mortgage Trust, Inc. stockholders’

equity

3,883,364

3,762,583

Non-controlling interests

20,588

22,098

Total equity

3,903,952

3,784,681

Total liabilities and equity

$16,876,804

$16,551,871

Blackstone |

Blackstone Mortgage Trust, Inc.

APPENDIX

Consolidated Statements of Operations

($ in thousands, except per share data)

2020

2019

2020

2019

Income from loans and other investments

Interest and related income

$193,939

$213,873

$590,797

$662,001

Less: Interest and related expenses

78,978

111,957

268,070

347,536

Income from loans and other investments, net

114,961

101,916

322,727

314,465

Other expenses

Management and incentive fees

18,985

17,502

58,758

58,276

General and administrative expenses

11,242

9,741

34,320

28,951

Total other expenses

30,227

27,243

93,078

87,227

Decrease (increase) in current expected credit loss reserve

6,055

(173,466)

Income before income taxes

90,789

74,673

56,183

227,238

Income tax provision (benefit)

(721)

192

(573)

Net income

$90,769

$75,394

$55,991

$227,811

Net income attributable to non-controlling interests

(909)

(497)

(1,937)

(1,176)

Net income attributable to Blackstone Mortgage Trust, Inc.

$89,860

$74,897

$54,054

$226,635

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

146,484,651

134,536,683

140,157,620

128,485,701

Net income per share of common stock

$0.61

$0.56

$0.39

$1.76

Three Months Ended September 30,

Nine Months Ended September 30,

Blackstone |

Blackstone Mortgage Trust, Inc.

APPENDIX

(1)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(2)

Represents realized gains on the repatriation of unhedged foreign currency. These amounts were not included in GAAP net income, but rather as a component of Other Comprehensive Income in our

consolidated financial statements.

Per Share Calculations

(in thousands, except per share data)

Core Earnings

Reconciliation

Book Value

per Share

Earnings

per Share

Realized

hedging

and

foreign

currency

(loss)

income,

net

September 30, 2020

June 30, 2020

Net

income

(1)

$89,860

$17,544

(Decrease) increase in current expected credit loss reserve

(6,055)

56,819

Non-cash compensation expense

8,649

8,652

(2)

(7)

1,810

Other items

(240)

210

Adjustments attributable to non-controlling interests, net

143

139

Core Earnings

$92,350

$85,174

Weighted-average shares outstanding, basic and diluted

146,485

138,299

Core Earnings per share, basic and diluted

$0.63

$0.62

Three Months Ended

September 30, 2020

June 30, 2020

Stockholders' equity

$3,883,364

$3,874,763

Class A common stock

146,197

Deferred stock units

294

281

Total outstanding

146,491

146,478

Book value per share

$26.51

$26.45

Three Months Ended

September 30, 2020

June 30, 2020

Net income

(1)

$89,860

$17,544

Weighted-average shares outstanding, basic and diluted

146,485

138,299

Earnings per share, basic and diluted

$0.61

$0.13

Three Months Ended

Blackstone |

Blackstone Mortgage Trust, Inc.

APPENDIX

(1)

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

(2)

For the three months ended September 30, 2020 and June 30, 2020, represents realized gains on the repatriation of unhedged foreign currency. For the three months ended March 31, 2020, primarily

represents

the

forward

points

earned

our

foreign

currency

forward

contracts,

which

reflect

the

interest

rate

differentials

between

the

applicable

base

rate

for

our

foreign

currency

investments

and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. These amounts were not included in

GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.

Reconciliation of Net Income to Core Earnings

(in thousands, except per share data)

Three Months Ended,

Sept 30,

2020

June 30,

2020

Mar 31,

2020

Net income (loss)

(1)

89,860

17,544

(53,350)

(Decrease) increase in current expected credit loss reserve

(6,055)

56,819

122,702

Non-cash compensation expense

8,649

8,652

8,678

Realized hedging and foreign currency (loss) income, net

(2)

(7)

1,810

8,467

Other items

(240)

210

596

Adjustments attributable to non-controlling interests, net

143

139

(561)

Core Earnings

92,350

85,174

86,532

Weighted-average shares outstanding, basic and diluted

146,485

138,299

135,619

Net income (loss) per share, basic and diluted

$0.61

$0.13

($0.39)

Core Earnings per share, basic and diluted

$0.63

$0.62

$0.64

Blackstone |

Blackstone Mortgage Trust, Inc.

DEFINITIONS

Core

Earnings:

Blackstone

Mortgage

Trust,

Inc.

(“BXMT”)

discloses

Core

Earnings

this

presentation.

Core

Earnings

financial

measure

that

calculated

and

presented

the

basis

methodologies

other

than

accordance

with

generally

accepted

accounting

principles

the

United

States

America

(“GAAP”).

Core

Earnings

non-GAAP

measure,

which

define

GAAP

net

income

(loss),

including

realized

gains

and

losses

not

otherwise

included

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

our

legacy

portfolio,

and

(v)

certain

non-cash

items.

Core

Earnings

may

also

adjusted

from

time

exclude

one-time

events

pursuant

changes

GAAP

and

certain

other

non-cash

charges

determined

our

Manager,

subject

approval

majority

our

independent

directors.

During

the

nine

months

ended

September

30,

2020,

recorded

$173.5

million

increase

current

expected

credit

loss

reserve,

CECL

reserve,

which

has

been

excluded

from

Core

Earnings

consistent

with

other

unrealized

gains

(losses)

pursuant

our

existing

policy

for

reporting

Core

Earnings

and

the

terms

the

management

agreement

between

our

Manager

and

us.

believe

that

Core

Earnings

provides

meaningful

information

consider

addition

our

net

income

and

cash

flow

from

operating

activities

determined

accordance

with

GAAP.

This

adjusted

measure

helps

evaluate

our

performance

excluding

the

effects

certain

transactions

and

GAAP

adjustments

that

believe

are

not

necessarily

indicative

our

current

loan

portfolio

and

operations.

Although,

according

the

management

agreement

between

our

Manager

and

us,

our

Management

Agreement,

calculate

the

incentive

and

base

management

fees

due

our

Manager

using

Core

Earnings

before

our

incentive

fee

expense,

report

Core

Earnings

after

incentive

fee

expense,

believe

this

meaningful

presentation

the

economic

performance

our

Class

common

stock.

Core

Earnings

does

not

represent

net

income

cash

generated

from

operating

activities

and

should

not

considered

alternative

GAAP

net

income,

indication

our

GAAP

cash

flows

from

operations,

measure

our

liquidity,

indication

funds

available

for

our

cash

needs.

addition,

our

methodology

for

calculating

Core

Earnings

may

differ

from

the

methodologies

employed

other

companies

calculate

the

same

similar

supplemental

performance

measures,

and

accordingly,

our

reported

Core

Earnings

may

not

comparable

the

Core

Earnings

reported

other

companies.

Non-Consolidated

Senior

Interests:

Senior

interests

loans

originated

and

syndicated

third

parties.

These

non-recourse

loan

participations,

which

are

excluded

from

the

GAAP

balance

sheet,

constitute

additional

financing

capacity

and

are

included

discussions

the

loan

portfolio.

Non-Consolidated

Securitized

Debt

Obligations:

Senior

securitized

debt

held

third-parties

the

2018

Single

Asset

Securitization.

These

non-recourse

securitized

debt

obligations,

which

are

excluded

from

the

GAAP

balance

sheet,

constitute

additional

financing

capacity

and

are

included

discussions

the

loan

portfolio.

Blackstone |

Blackstone Mortgage Trust, Inc.

FORWARD-LOOKING STATEMENTS

This

presentation

may

contain

forward-looking

statements

within

the

meaning

Section

27A

the

Securities

Act

1933,

amended,

and

Section

21E

the

Securities

Exchange

Act

1934,

amended,

which

reflect

BXMT’s

current

views

with

respect

to,

among

other

things,

its

operations

and

financial

performance

and

the

impact

the

COVID-19

pandemic.

You

can

identify

these

forward-

looking

statements

the

use

words

such

“outlook,”

“objective,”

“indicator,”

“believes,”

“expects,”

“potential,”

“continues,”

“may,”

“will,”

“should,”

“seeks,”

“predicts,”

“intends,”

“plans,”

“estimates,”

“anticipates”

the

negative

version

these

words

other

comparable

words.

Such

forward-looking

statements

are

subject

various

risks

and

uncertainties.

Accordingly,

there

are

will

important

factors

that

could

cause

actual

outcomes

results

differ

materially

from

those

indicated

these

statements.

BXMT

believes

these

factors

include

but

are

not

limited

those

described

under

the

section

entitled

“Risk

Factors”

its

Annual

Report

Form

10-K

for

the

fiscal

year

ended

December

31,

2019

and

its

Quarterly

Report

Form

10-Q

for

the

fiscal

quarter

ended

March

31,

2020,

such

factors

may

further

updated

from

time

its

periodic

filings

with

the

Securities

and

Exchange

Commission

(“SEC”)

which

are

accessible

the

SEC’s

website

www.sec.gov.

These

factors

should

not

construed

exhaustive

and

should

read

conjunction

with

the

other

cautionary

statements

that

are

included

this

presentation

and

the

filings.

BXMT

assumes

obligation

update

supplement

forward-looking

statements

that

become

untrue

because

subsequent

events

circumstances.

Blackstone Mortgage Trust (BXMT) 8-KBlackstone Mortgage Trust Reports Third Quarter 2020 Results