BXMT - Earnings call transcript Q3 2017 | Blackstone Mortgage Trust, Inc.

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Operator

Good day ladies and gentlemen and welcome to the Blackstone Mortgage Trust Third Quarter 2017 Investor Call. My name is Lisa, I’ll be the operator for today. At this time, all participants are in listen-only mode later we will conduct a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to your host for today Weston Tucker, Head of Investor Relations. Please proceed.

Weston Tucker

good conference welcome call. and Trust’s Blackstone Lisa quarter third thanks morning to and Mortgage Great, Chief Doug I Executive President Marone, Chairman; joined Steve Officer; am today Plavin, and by CEO; Capital Head of Armer, Mike Nash, Financial Markets. and Tony filed we issued and presentation XX-Q with available on a which our results, our are release our a night Last press of website. that outside forward-looking statements, uncertain and of I’d company’s include like which may to today’s call remind the everyone control. are differ materially. Actual results may

risks the most that affect a do discussion of For Factors update our some see please of not to Risk recent could the statements. duty of results, We forward-looking undertake sections any XX-K.

We you both our on and which measures Blackstone non-GAAP should is are have of for website with and the been of without material refer cast will Mortgage to our release not audio to Trust reconciliations, XX-Q, SEC. may and the consent. certain duplicated copyrighted our This on posted this refer filed press call be and

Earlier $X.XX we stock third this second a dividend reflects paid an recap in Steve. of that $X.XX We which So, a net of price, to things the from core and per based sharply of yield of GAAP with share X%. nearly quarter. the to today's share respect of turn month I quick quarter up earnings per on $X.XX income quarter attractive reported over and the was before results dividend our

any I'll have questions call, let that, Steve. turn you If to with today's know. over please me following things And

Steve Plavin

the quarter led generate $X.X of a the for help excellent earnings. core everyone. originations our good quarter and an that portfolio $X.XX. $X.XX earnings to highlighted and now the business, of EPS morning, growth billion strong Weston We’ve quarterly year-to-date Thanks, power increased $X.X earned billion the third year-to-date demonstrating had by BXMT

originations were loans lending We quarter up since now XXXX closed year. last highly market end. the competitive The have over million another or have $XXX closing our added that of in process XX%

well Our the add opportunistic real experience platform sponsors active, estate and by served clients are our great funds institutional Blackstone value team. with had primarily of working real estate they’ve

our Blackstone where continue platform with high property estate most are markets We great has in entire markets the entry, the asset barriers of The had direct on and we focus coastal is real highest to dynamic also sponsor major and origination efforts to believe enduring. value quality demand success.

of projects continue LIBOR one and are Both the $XXX a loans As opportunities. part team Coast with construction million multi-family office the our to BXMT earlier its rate California focus office of that LA well interest XX% banks secured West attractive and constraints. of West QX average assets our in by an top California, markets. in quarter regional Construction of with one origination XX% success asset. has target are LTV we in better a third our That Coast as excellent expanded in capital for with remain lending sponsorship. California an and loans high of Northern address and for challenges year loans conceived markets strategy plus regulatory very Two opportunity struggle off, building in quality our paid our originations to X.XX% totaling in to testament

earnings in construction In the prior construction benefit periods. from the we’re seeing closed addition to from new contribution the now loans loans

another equivalent transitional of of periods. made construction been these the of related that commitments our $XXX asset loan funding in and QX. to loans before of to commitments contributing million base quarter per advanced During recent we quarter has were The

million multifamily our with broadly originations two and will in takeouts. quarterly to JV regular JV the origination portfolio. are loans, Dunlop Dunlop, Walker production. JV, loan should loan in assets, Of of we loans totaling JV like more in middle quarter, We complements loans the class billion to generate bridging produces our which existing our as also agency the recall originates direct we quarter & relationship multifamily facilities loans total the originator and the During portfolio. closed finances finance the $X.X to & you JV partner excellent our to working XX% The initial loans us market close our returns These new effort tailored additions credit lending. nice our originations. The comparable from the established our to increase Walker asset and seven multi-family non-bank enable $XXX have agency leading in an facilities to anticipated Walker our levered and

origination healthy XXX% our $X.XX very activity dividends. contributed year-to-date a to of and of coverage has providing funding EPS All our of core

remains a strategy. stability. earned our supported quality XXXX re-IPO on Blackstone May return is loan to-date transparent origination with a in in of of preposition. portfolio our by from originated matched and their portfolio have senior focus BXMT XX% Our funded as performing value mortgage average XX%, simple a dividend stock powerful Investors by compounded and XXX% mortgages senior LTV

are your our from at rates. attractive short-term to In for its call increased Thank price, would XX% I’ll that with conclusion BXMT earnings shareholders. borrowers for and adjusted execute very you over current with serving to returns risk model, loans driving attractive to business interest well benefit Our stock yields our continue is the support, our X.X% Tony. floating positioned rate, turn and our

Tony Marone

Thank morning, everyone. you, and Steve good

share a with $X.XX senior core our financing outsized as produced earnings underpinned by comfortable GAAP we $X.XX this remain and income quarter. quarterly XXX% This quarter, results $X.XX core or additional part up Starting robust notwithstanding from $X.XX, and as peak results, term to earnings leading due share covered marketing in both XX% our of trailing income per $X.XX was in increase is with structure. of for the level power on any operating values. We our dividend a dividend reflecting basis. portfolio respectively $X.XX third generated declared reported strong deployment. second quarter well as prepayment which higher and months the operating we of by originations, earnings of loan intra-quarter per This XX a We medium net

value Our is for appreciation outsized denominated net and $XX.XX our our this the the year-to-date, and quarter portfolios share in by and quarter. driven of earnings euro up per pound-sterling $X.XX book $X.XX

we dated held mentioned any do on or book own As and not overtime, generally we subject have previous long-term calls, our rate fluctuation our portfolios significant investment securities assets. not value mark-to-market long fixed to loan is as for

we $X.X to XX%. the Loan $X.X adding quarter, for our with previously totaled loans loans Notably originated first during floating our Walker LTV Dunlop originations mentioned, Steve XQ equivalent collected our These of XQ rate portfolio in are one joint average also funded origination million originations in additional fundings quarter, providing closed repayments $XXX & our seven $XXX of million an loans equivalent fundings. venture, totaling growth million $XXX additional new senior of and the to loans bringing As portfolio. all billion loans business. totaled new year-over-year. avenue up XX% roughly million including loans $XXX year-to-date of the the billion, under We an during

a on related the muted prepayment However average the results. repayments quarter. had these XQ than other earnings were repayments loan impact income, in Therefore on our late fairly these

XXX% June XXth. quarter slightly billion, $XX.X line key of up with portfolio loan total strong remains with this and performance metrics Our in all

our yield portfolio risk LTV average Our rating of scale is all-in is and X.X%. a on average X, XX% is our is X.X

Walker On loans Dunlop loans right our we our the quarter. to growth & construction originated to of totaling of our new an business, last hand the our originated joint of facilities sheet, balance by credit finance support of continue two side million with and indication venture $XXX one

In notes. on we offering $XXX completed XXXX May addition, our million a power of convertible

initial of from have with X.XX% notes. coupon $XX.XX following As these initial price X.XXX% the mentioned in the QX, of conversion million coupon we XXXX offer down $XXX our a convertible notes an

Available notes of We from of positive the times execute creative We are the debt-to-equity slightly only with during up of quarter upsize existing X.X the as a to times quarter. excited our X.X closed our investment this and market catch of $XXX ratio which our quarter the credit majority available X/XX capital at million deployment facility additional liquidity the of amount during under future for our us of following comprise revolving for quarter. activity. is borrowings end,

quarter XX% venture included of arrive and our note Walker is at with in equity consolidated sheet our accounting quick the stockholders interest statement reflected joint reduction our per Walkers earnings to non-controlling as in one Lastly & operations Dunlop balance a and for interest share.

interest the operator the dividend per for questions. results with net correlated share We our demonstrating your continued are open annual for and call interest results and the the XXX generating LIBOR to to remain with we our support Thank basis the $X.XX favorably quarter will our look rates forward support pleased adding with in I point USD of for ask rising overtime. that future. our you positive stability and stock holders in to We to increase to quarterly income

Weston Tucker

now think we I questions, please. Lisa open can now for

Operator

Instructions]. [Operator

first comes The proceed. Doug from Please Suisse. line question Harter, the Credit of

Doug Harter

the was at ability Where existing the and quarter grow base? of end the capital to position your on liquidity

Steve Plavin

the just got repeat question you on off that cut Doug, could just we your of start please? there,

Doug Harter

existing the position quarter sheet the the the where equity was just base. Sure, ability at to on the liquidity balance and grow of the end

Steve Plavin

us, Thanks, flow liquidity steady million to repayment. is Doug. we $XXX number continue for a a good of have

existing look think as in So the comfortable I liquidity we capitalization with we’re forward.

and to terms nice meet make to several a will quarters. needs in very anticipate opportunity. what sort upon be. deployment that’s dynamic adequate we operating have for We future sure will market been we a have of process of our now see look we origination what always depending level But we at capital And that

Doug Harter

whether common the mentioned any between you thinking your considering? do I this you that how about structure And and converts, additional of just you’re quarter, structure is now about equity mix capital then guess converts capital other as think there added

Doug Armer

Doug Hi Doug, Harmer its here.

think capital coupon us convertible about our very carefully, to very a optimize that efficient for cost is issuance what Tony want mentioned that’s of X.XXX% were continue highly the We notes do and to we obviously mix accretive. the

If turn notes representing on sheet notes as you combination those balance unsecured think are balance of on one leverage debt, as other deployed. our corporate the with the sheet in the fully that about essentially

we strategy secure that’s about at roughly And common probably where X of be the times level balance. so the to leverage I And terms corporate mix of want debt. committed we remain asset to in on our for to the debt the think equity

more that probably of terms you’ll debt. see forms is what I secure creativity think in

So and have new the taken market. up lenders come could the number we of XX% into added over commercial facilities. are our The real healthy the loans CLO we other revolver. a to very estate that credit think corporate we’ve is is there total mix swing line that to Barclays And X% or now X% complement alternatives bunch you the of lenders include course from the last of with have added a we year if market for structured

Doug Harter

Thank you.

Operator

comes question next Jade line The of proceed. KBW. Please Rahmani, from the

Jade Rahmani

Thanks prepayment any was in addition Were $X.XX to there financing income? fees -- deferred very much. any there acceleration of of the

Tony Marone

so Yes, that net. $X.XX reference Jade is the

of So acceleration assets financing liabilities. we the fees income -- of on do and that’s deferred net on the

So that's net net to earnings. or core income

Jade Rahmani

there of prepayment repayment. typically And level income is on regular some

excluding see the $X.XX guess earnings of as level do due I that outsized that timing or of sustainable is repayments you to So $X.XX a also the core mentioned? you

Doug Armer

here. its Doug Jade hey

particularly with not and the prospect our for forward average deployment feel grow just it's comfortable portfolio. to the we dividend and $X.XX the quarter-over-quarter leverage on downs rates our growth balance sheet deployment the regard I the be is as what a forward and think we to portfolio dividend to with size going point-to-point increase quarter-over-quarter level. point and going we look the relative ups and our There’re with given to our as of

$X.XX. numbers point we are would the to that the to as those So, appose

Jade Rahmani

Okay.

investment comment investment California the I’m on what to finding the you comment environment? switching could You if you as where attractive an share and avoiding? wondering of can Just noted opportunities outsized environment, perhaps you’re you’re originations, on

Steve Plavin

with markets on The investment The a deals very we're the for we're larger lot would & what active very Walker very working of so seeing market multifamily I and asset and broadly is larger we more Dunlop. opportunities. focused hard competitive class say we're But is environment originate.

like little if and so equity that New to like -- markets. lot those investment. of, as very and in might asset as common the that to But are we're always classes to we're market we have continue little things the primarily those class. contrary terms see a cautious look finance opportunity And be book we bit of to the activity York in retail our a an originations you’ll retail multi seeing California we we're attractiveness our the more done that very an But an definitely lender opportunistic might you a and We on of we're asset cautious as asset with be future I the market. to are close hotel. of view at class think on most office We've

Jade Rahmani

to competition bridge your trends points banks spreads, quite more getting capital. actual on can compromise in but is underwriting are And which turning coming originations, or covenants and loans seemed in or And aggressive debt seeing competition discus any stable of from you other deal pressure you providers the seeing you standards? structure are funds in

Steve Plavin

Let me of part the take last question first. your

well. loan quality think I the structure very of and held underwriting has up

we’ve pricing leverage. still got we lot want have a up and has loan clients more extra so pleased structure as been has don't that And who of competitive held

pre-crisis. saw leverage we're lower So are request we what much that now seeing the still than

of now, saw The competition the mostly REITs is signs other is the around mortgage lot So we is debt some banks. of rates ‘XX the lot feel ‘XX funds we market. take in warning and and a we in don't some we see other that and current a from comfort from

We loans than strong banks the continue even than the and where construction these competing one we’re loans banks there did seeing to better we're have niche one. world think two to quarter effectively healthy think simply activity kinds be really I lending we challenges very improved banks our and opportunity transactional across lending of been activities to of construction of serve in conditions if well and our are. it. of and very that is very ray loan for And we’re better construction is refinancings markets of done situations and aspect the construction acquisition loans there terms suited where regulatory a I in have a loans, the we to broader talked But I about be continues the a the degree this is lending

Jade Rahmani

lever you are the And planning loans? construction to

Doug Armer

Jade hey, Doug. it's

of got We which are roughly portfolio planning dozen construction a are to lever levered. half the construction loans, we’ve loans,

So those oppose as we our to sort those of for transitional transactions more through lending to same our loans. non-recourse through do double-digit we in tend to of ROIs But lever sort lever one-off transitional basically lever syndications the senior that facilities low or business credit to. the or we

Jade Rahmani

at somewhat. look CLOs don’t servicing next year see there I of are source ask, interesting? to conduits, be of LIBOR, attractive that’s think know grow do comment business all if capital? interested at you aside whether prospects finance an you over which growth to new could wanted some to CMBS How CRE if but in on the special parts I to wanted earnings are also moderating any I or expectation any that the look seems you lines market, I on other and

Doug Armer

in its order. Jade, those I’ll Sure Doug, take

the prospect I think that good sheet. for a balance we our earnings growth see come do with will in in growth

do sheet capacity to $X billion the over to do now. deployment we have we credit couple some corporate place I the to issued in grow have that last So and having had debt think of got quarters, the balance

So potential I market We’ve over existing at the business the accretive we judge I and complementary LIBOR addition we the rising where at current certainly business those, that’s are those is whether going see looked in potential that of to there for given to also are think relative some our to for always you years earnings, they’re think in interested growth models. in capital. is particularly be loan market But become in our regard compressing to has expanding had particular to credit there. medium the capacity very the conditions success And in term. entered the seeing our that our CLO have we With on that of lot doing CLOs the environment we’re optimize competitive. of to in into facilities in XXXX spread cost goal side, a with

we an buying issued and it’s affiliated obviously people to we alternative certainly that large loans securities. portfolio the have tap for that Blackstone it’s are interesting us performing in got something or So -- very have potential a well you interested have we scale and

a CLO for possibility think real our is I issuance certainly financing So very strategy.

Jade Rahmani

questions. the taking for Thanks

Operator

And FBR the from of the line Markets. next question Capital Ribner, Jessica comes

Jessica Ribner

taking so and with I go you like have questions. a Thanks for my guys Walker guys. potential much what here, pipeline size JV, looks just with opportunity forward? that could one morning & left like the for looks set you Dunlop but the on Good

Steve Plavin

quarter This looking getting and we at Thanks the for and the creating funded. question closed with first Jessica. of Dunlop that closed is a them with Walker process lot & a loans of we joint team spend time opportunities and their

we’ve think the attractive had enabled is consistent ROI terms credit us that getting on new loans create. with terms two we’re in success, basis. process mutual on respect I Walker have great that facilities to of we direct We great established. team doing a the that closed with

the quarter saw loans $XXX You was million. seven this reported that volume we

going closing. general So activity that originate the that included activity the something of that originated JV think its at I a to we the forward to acquired hope in band were of JV, few prior formation this loans quarter’s

are the pipeline contributor joint be as seeing nice meaningful go think venture, loans a a to opportunities we will forward. We very of via it I

I think think will strategy, be create of the will forward. us a two going to majority major larger vast market direct very I continue loan combined for but picture nice our the production our

Jessica Ribner

a about of you those can idea and you’re comments predisposed that yield in made and a you multifamily bit market. little maybe loans know the multifamily about an talk that now? give I And positively maybe little the and the office talk backdrop on us the to trends bit also right

Steve Plavin

there generally class. of a that broadly multifamily benefitted really crisis post is think has generally sort has shortage multifamily I asset the

that really access ordinarily see wouldn’t particularly is Walker the are opportunities on we which in loans. might class -- helping Walker that of JV we asset direct markets in where which multifamily is B We’re our focused. more origination activities, us Class larger focused seeing strength is and in assets,

necessarily loans assets have asset we are tendency with those down how multi is size. the quality U.S. like in markets multifamily asset some markets you go And the you the proposition size we don’t comes the way classes in major down an markets that unique as the comprise with that same a not you so, and strong that are loans to value of feel that -- go have where about of don’t quality smaller lot

focused demand live more work to want on and York office dynamic that’s tended California locate very have I to Washington markets market from upticks we have and New younger think are those tech workers like where with markets tenants and had on and and where Boston semi-tenants. the good

And and where we there growth trying no markets long-term flat that’s markets activity and our away and lending that are stay to demand. to have from trying suburban focus so and real

our activity want to So to breadth assets. as and investors the where by mirror investing the in our magnitude we tends be of equity these lending and shape

have the comes located. estate So we given a originating they really are that loans like and that where see real of unique scale they we’re across the where Blackstone’s platform overall and perspective and look you what really

Jessica Ribner

Okay, so thank you much.

Operator

comes question the from of next line the And proceed. JMP. Steve Delaney, Please

Steve Delaney

on Good morning and everyone congratulations strong quarter. a

return out equity see compared incremental, to including you opportunity that loan senior the available line my your to by you incremental that do now With you covered the as been on whether traditional So business? just have for leverage that transitional way syndications. the on are an (inaudible) comfortable construction try brief, product have I’ll to most of the be curious model of product topics so

Doug Harmer

in a that lending to ROA it's ROE ROI leverage bit compared less and line or our and as Doug. product little higher With we what hey business. is see traditional Steve,

layer is the that that product our the benefits interesting and in we earnings of about we balance growing funding the of is Steve what’s and in remarks the loans mentioned terms after in originate sheet So his powers.

business. of sort quarter-by-quarter we of our the forward And so are think those are, transitional earnings complement and financed and originations that sort loans of levered of

in and total our financing. because slightly different in a terms it’s the with it’s of line of additional the of accretive growth basically deployment in assets, So mix ROI but

Steve Delaney

to and funding type are at spending funding forward on XX could looking a of roughly point about the a great of be estimate time year multifamily years you projects. like on you an assume a office period this months and I that over two project? maybe something with That’s these generally

Doug Harmer

estimate or period average on half good sort a period the a On that’s two longer time. view that shorter and Steve. of of about think bigger year will I projects time on the Yes projects over outstanding We first of smaller so. it’s loans be the

Steve Delaney

kind in obviously obviously commented market being really ties the helpful. seen but but tenure. tight have great that’s builds fixed the Okay, spreads have now we to obviously the and don’t seem and CMBS And the of had next widen, that strong rate rate have into tax on got Doug question, and CLOs, we reform, my are spreads a supply and the inflation we spike this

As the you at [indiscernible]. look

Steve Plavin

-- much Steve, better. background you at that’s noise your end, yes could

Steve Delaney

Okay.

CMBS strong otherwise? I increased the you headset of my higher, So of for rates are mic think the may any to moving is permanent move on my shirt it quickly question higher borrowers Are you they the was guess your I than currently maybe gentlemen. market. moving type some sensing sorry tenure more their into conditions have in my financing with transitional urgency sensing

Steve Plavin

as we period a originators life of borrowers borrowers that lender the our is property to sale, and most typically loan and acquisition rate our of year really the the ultimate entire to haven’t, three of five asset from property investment. of try do have they be individual fund are are sponsors and committed floating What managers bridges any we through Steve, their a them time. typically

Steve Delaney

it. Got

from year suggesting? I maybe I XX what core more more Steve property value the the you’re is the so interest that your that market that investor saying with that private financing, think estate fund are loan hearing product you and And am to more borrowers specifically real equity CMBS borrower, buys opportunistic added of your the is

Steve Plavin

but holders Yes, product I it’s am, holders, correct. longer and term that’s generational yes for

Steve Delaney

the for you comments. Thank

Steve Plavin

Steve. Thanks,

Operator

Morgan. the line JP of proceed. from Rick comes question Shane, Please next The

Rick Shane

make Delaney there a by that taking of my gap is them, been want has clearly but addressed fundings and the sure quarters being three which substantial going what’s most on Steve to guys just that last understand the Thanks pretty between I and here, we originations driven focus XX months it’s have on probably construction the on that lag XX to a same and if fair or stay loans and to construction you where originations loans. that sort fundings Is originations emphasis begin mix converge? that to would greater say it that’s start questions. for to flat over would to of were

Doug Armer

its Doug. right. That’s Rick Hey exactly

So that quarter lines I think intersecting. this to you to close those come begin see

of So commitments we $XXX had previously fundings of million $XXX million originated of loans. and construction

origination those given lines into to to like So you’d beginning are you see two months life that and something them originations years the of cross flat intersect XX cycle over.

Rick Shane

And it. then… Got

Doug Armer

it’s of loans. construction Rick $XXX million correction, Quick

two-thirds we’re So way there. the of

Rick Shane

income Got the had are been loans becomes associated model, tied on basis asset driving fees sheet more be that it. quarterly those about. that thinking I about And commitment a would isn’t are refinement as just significant we thinking a this balance to on quick normally with the there an within that

Doug Armer

for in origination same we transitional There loans. on that fees, we way are account the but account commitment fees our for them

to asset. the So amortized they create yield a level in on are overtime

of have line funding a loan. line oppose ROI in the just as the smooth we with tenure to So relatively with in

Rick Shane

Okay.

during first income? that there bit, that be little into month a a but period that six commitment clarify six to want months fees accreted don’t I if originate loan, that would you no suggest it fund think so would for I

Doug Armer

That’s right.

Rick Shane

you. Thank enough. fair Okay,

Operator

line comes question the Bruce, Please from Kenneth The proceed. BofA. next

Kenneth Bruce

Thanks good morning guys.

Kind spread follow-up compression if the some you’ve just further on seen earlier kind few I'm mentioned what over here am a questions, if busy in a general we’ve incrementally before interested shift compression? saw anything this if look last Just and like-for-like I been there occurred if you’ve you basis been there’s a at mix the talking of here that’s we relative of But has of quarter? the morning. some is but about, sorry obviously spread across year course that spread been any

Steve Plavin

of spread summer first compression really into think we I in definitely the we and the significant was fall. which slowed the rolling Ken, sort Hey saw as the has year, hit

seeing competitive price We’re and still the so is loans. there market��s it the for competition

think spreads on are still but I margin And the significant not anymore. in a so way really tightening,

our tightening that’s to our business do the to worst the work ROIs the So necessary I well. is And certainly maintain hope. model been think of over able we’ve make

more a So made have us competitors for compete. cost capital higher who difficult of our I feel it some to it’s than also

regard been some it’s higher than nice general from see to we’ve spreads environment in winner So tightening a the always in although lower.

Kenneth Bruce

into cycle. I doing you And this more for yourself through deeper of the mean, construction in Right. are transitional kind as loans you to move point obviously finding itself going having you’re of that deeper the of you yourself if loan is us give transitional that finding kind as kind are, sense going but space of a maybe suggest to within into markets?

Steve Plavin

from is have at three quarter-to-quarter steady so but the opportunities over of period varies you look varies construction I our and there time, think been categories through mix acquisition of Ken loans, been the general if an that the The really loans. and it relatively extended business consistent year. has refinancing, loans

properties were less picked level activating and actively This in financing us. they more acquisition business address clients we activity be the more getting as changed. spreads create good funds invested by great With getting market look further more their property quarter their tightening and some so a But And to along for see of opportunities little we continue really our profile refinancing saw And bit transitional a standpoint those opportunity at. from opportunities hasn’t will well. acquisitions stable as we a that the plans up the than these of some as properties we’ll little to well. continue more

Kenneth Bruce

spot grow origination of regarding to We’ve needs from you we’re over in platform be got point your you’re you basis think lot spoken much I whether am support the you’re Okay. scale and to loans is that the that, future a the generate to right kind if there on of to is order of scale of capital at or the there here? whether a formation the funding construction can in on years, whether always mean, or ability of in level origination kind in how with current my And always you’ve pieces gauge here? more kind but there’s look the kind context lot it last of trying from upside you interested question a moving significant obviously there just were that from there from of at just is -- I investments activities at of obviously upside

Doug Armer

that. experienced originations I’ll that is we One Doug, year-over-year. take of thing growth point you first part the the maybe Ken its I’d to

over $X.X So billion we’re at billion. up XX% versus XXXX XXXX $X.X

through think manifest see growing I so assets that begin to but GE growth and last change top-line you’ll saw quarter in a begin in to So total We’ve working a the lot, of think in top-line terms the change. I you didn’t particular, repayments during XXXX the been portfolio. you’re whole seeing

quarter. We this continued direction moving in that

portfolio our look a notes base numbers deployed If room to up convertible fully the you on including at currently basis. than support is there that’s capital round to it is XX% larger

and activity in be year-over-year in of in can we’ve portfolio zoom look quarter, period of think as our bit seeing support individual got to place when lumpy. out that. and terms origination terms we’re capital particularly growth to which oppose in I growth the any in so it earnings you And little the And over

Kenneth Bruce

can got refine that to amount of like from capacity here to And to in do you’ve is that though continue guess a portfolio? I bit, you significant just you larger effectively excess feel may leg a be little

Doug Armer

in... is the $XXX sheet offensive do and of numbers million all not it that balance now on of have liquidity round $XXX deployable, but million We is of

Kenneth Bruce

the capital can am you that produce that am up? place side, have not the to the operation of that to the to business can the people referring dollar just you I amounts in of from your I capacity investments more really part really scale referring

Doug Armer

and here. and California. Absolutely that’s being is number that real have also referred as up part that loans year-over-year our presence platform, loan we out of the And larger team size the to build to of our average increased in the key in continued focus Steve we go on seen Blackstone have part well. estate regard

our a is dollars billion a over as billion as totally a you’ve platform. for quarter oppose dollar originations quarter just So from supportable XXXX in to tracking under seen a

Steve Plavin

investment capacity see do as well invest. to Yes, Europe people new in an added expect we in the in I what than more as past about we Blackstone organization really in forward origination talked and going but so. or people built can here, seen LA, I to mean, London upgrade we're year we’ve have the

so a people We what opportunities from large hope continue and the and have the in we to seeing deals as large we ability do very track, them. well. we definitely so have we balance we absorb to we can we larger benefit ability so, place opportunities an to and are also have the you to And sheet

focus on predict all can hard move a are like are the down capital positioned for opportunities the come park anyone are [ph] something to we and again, going you that So time. but looking deal larger a to it it continue we that GE sort business tell or for should significantly to I going is to it’s base we the else than arise better that of

Kenneth Bruce

and good for you your on quarter. Thank congratulations comments another

Operator

from line Bahamondes from comes next question the George Bank. Please proceed. Deutsche of The

GeorgeBahamondes

the Hey guys, questions have have good answered in house the the been disclose in you closed you fourth loans of of Most guys a did morning. process my quarter? or keeping items, of closing more amount it’s

Steve Plavin

signed get loans the closing ones a that’s million, you it that have we of in We was will I sheets $XXX combination number term and where we closed already they process. did, have

GeorgeBahamondes

Thank me. you. it from Great, that’s

Operator

[indiscernible]. the of comes question proceed. line final Please The from

Unidentified Analyst

Good morning guys.

have For cash third of out? the and in refi disclosed how kind terms variety, it to ever in of the in about talk you you that the quarter books was exposure guys of willing much out what’s are refi cash the kind that have you loan of

Steve Plavin

Well -- of the we don’t associated we our them. with at we loans LTV talk the look and loans about risk good qualities all the and really

construction going mindful of loans And out where new than the won loan so, we equity situations are But is the was coming to it cash acquisition. relates every quarter certainly in. versus other as

in when can refinancing was estate certainly we we the quarter-to-quarter implied exclusively deal acquisition. just equity underwrite refinancing can Again of we we on well quarter we a primarily look believe cash was it and equity, are at equity in real acquisition So varies that and as mindful the this as financing. and sponsors

acquisitions it are but they two our the important was construction business, no both loans. So most and recent almost parts of in the quarter

Unidentified Analyst

financing You the One hedges the in coupon shown kind some page there had small cost the page sheet taken switch? was what the of or question you what I'm reason for of on the the just balance know all-in quarter the talking with the prior about? credit were you facility and off show now

Doug Armer

the versus No, have amortization coupon up Where season really setting facility. the cost expenses Doug hey just the all-in of it's here. the

incremental think in detail the but to you cost is we we by coupon, point specifically. current that represented can the better the So XX-Q the and is

Unidentified Analyst

you. Thank

Doug Armer

Thank you.

Operator

Tucker. back like Weston I’d over to call the to turn

Weston Tucker

Thanks and let any you everybody us have know. if joining me follow-up for questions Great. please today

Operator

today’s Ladies that conference. and gentlemen concludes

now may You day. a disconnect. Have wonderful

Blackstone Mortgage Trust (BXMT) 25 Oct 172017 Q3 Earnings call transcript