BXMT - Earnings call transcript Q1 2018 | Blackstone Mortgage Trust, Inc.

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Operator

Good day, ladies and gentlemen and welcome to the Blackstone Mortgage Trust First Quarter 2018 Investor Call. My name is Janeta and I will be your operator for today. At this time, all participants are in listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes. to Investor conference Relations. like Tucker, to now of Head would turn over the Weston I Please proceed.

Weston Tucker

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

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

measures the may to We and copyrighted duplicated and to refer cast and Blackstone audio non-GAAP will material consent. our without for be refer should is of in Mortgage also press XX-Q. this This Trust you call not certain our release reconciliations

while per of the We So yield income earnings share of net our first attractive $X.XX Last core prior share, and $X.XX quarter an a for results. reported were based up paid per first from with stock over the a quarter in that quick of recap we GAAP $X.XX the week, reflects first XXXX year respect on quarter. dividend X%. of to $X.XX price, today's of

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

Stephen Plavin

Thanks, Weston.

sheet the evaluating, This the of in already management BXMT entered $X.X The $X performance of for try themes loans exceeds so to $X.X generally strong billion. originations with Estate. favorite investment of real first In our quarter our total our ever Following up of Two in a Blackstone year closed competitive year’s production. This The far really quarterly billion origination Blackstone’s of loans all highest quarter, of asset advantage origination. creates activity for those the Spain. balance Real momentum. we’ve BXMT sourcing, grew XXXX biggest billion or and themes scale our and we power matches high closing our asset year single XXXX, Post demonstrates by additional this investment areas alignment extraordinary currently the we in BXMT and originated been loans, end, recovering ever including having process last or platform the of record economy investment Blackstone focus the estate team. in has outstanding in of broadly conviction. largest

origination euro sponsorship and real loan philosophy. win Blackstone of special billion scale a to of The strong the of XX% market. properties. sponsored Santander in on participate vehicle Blackstone a acquisition was platform. Real estate the participation to is by our of Over value Bank. investment the is lender a positioned borrower, financing portfolio Blackstone a a great this euro a equity Estate part is X this We of opportunity QX example real largest BXMT be of and presence JV management love equity portfolio The Spain. improving platform of a the great and in example the in residential in Our asset its for billion being well estate Spanish has housing A use executing of acquired X.X and underlying loans

hotel the Our at well was our Florida. other apartment as in – furthering assets by and in in as multi-family a QX New Hawaii secured originations Texas California York, space, initiatives

construction our largest Pfizer. leased City loan million office Post for of quarter $X.X billion Spiral, We XX% Speyer's York the end, prior in loans to-date, originated to $XXX closed a building, Tishman New quarters. of we a also a development advanced world-class origination

during the two of billion second period After fund the senior supported by is equity the The the beneficial subordinate to less billion before a remainder $X.X will fund of starts portion of quarter. funding the over loan loan structure; in loan is Spiral Our is $X.X a $X.X project and of billion be of funds cost. the advanced equity a that, year loan XXXX. than total XX% XX%

relationship. long $XXX large how our it we get exemplifies scaled the boxes an loan. of checks size, sponsorship and call to the lending Speyer bases lenders in also philosophy The few it’s foot. construction Tishman per protection that our senior low great compete were our favorite Spiral finance major third and portion aspects an of developer loan BXMT runway have good of we of a excellent on the markets, Because the with success and syndicate whom So funding initial our there square duration for we quality, Spiral, in other could construction with have of relationship to And top magnitude experienced us.

and projects a loans other in high The financed low Boston loan on two to also Atlanta quality cost basis.

continue volume the great origination it's to source our market build as highly a is opportunities Although and competitive. whole we

result As continued competition a compress. lending this spreads of to have

having loan to largest more spreads are competitive While some protected, reduce win are of to our deals. opportunities we

in of improved upsized portfolio. all which new credit billion loans Spanish and fund compression also and we evidence the euros $X XXX QX and our our fund term And much spread We issued To following of the as two offset $XXX Libor. our well is facility equity borrowings as help future – established closing an X.XX% efficient pressure We offset and we’ve originations the on and in $XXX million raising of by will and debt a new forward more terms actively index year going very convertible and five our notes million impacts million, coupon. been higher in borrowed bank the of offering. beneficial We that spread participation others production. with a have QX market attractive in

has on Pittsburgh in origination of portfolio loan LTV asset full performing. that XX% acquired repaid our $XX had from XXX% remains great been quarter and rated hotel loan a Post our end, team. management a was overall Our only in a from X million loan a resolution GE

Our rates senior for portfolio with Tony. And stability your and thank match fund over focus on attractive with and shareholders. compelling interest turn call remains the and I’d floating to BXMT like and support will highly to and dividend very now mortgages you for quality yields is I that,

Tony Marone

good you, everyone. Steve Thank and morning,

$XX our are $XX core earnings with We and million. of quarterly operating very with pleased of income GAAP million net results

in core earnings $X are to terms, per our earnings up our million whole dollar or X% While are nearly a slightly basis, relative down on share XQ.

of equity. As per million December outstanding in These A issued XQ. were Class XX.X on entirety of slight shares share new a the for impact reminder, of stock in a first earnings $XXX shares million quarter the only raising we with common

are We testament deploying this scale of marginal the of our with which lending platform J strength business. the advantages actively view the on a as and new curve a impact quarter, to capital we first our

future our XQ increases from generating Our rate increase in earnings share. potential net $X.XX remains a for additional equal, a only by positively credit XXXX. USD tightening coupon, our floating earning and stockholders. would Libor income a value correlated XX% a represents high interest per down provides X% spread increase Libor portfolio in with our This in XX% of else fixed X% natural annual All to of in and any hedging

XX% was increasing loans excess mentioned, the of which to by portfolio as continued we loan residential at we of million loan consecutive increased a These closing for $XXX up billion previously XX% quarter. our X quarter size outpaced volume Steve European up of $X origination loan, the our XQ in funded originated the funding X% $X.X fully euro $XX.X the XQ $X have loans. billion, our funding and As nearly originated our loan record a total repayments notably to significantly from in are second from portfolio, of of portfolio to aggregate record portfolio This prior billion during including contributing loans Total loan of under XQ. fundings billion billion fundings quarter. Spanish our

loan a of rating an and Our remains X. performing XX% XXX% at risk of on to unchanged average an portfolio X average LTV origination scale X.X with largely

only X quarter this and portfolio a repaid was have following and acquisition our upgrade, loan X April. longer loan any below a X in million $XX upgraded was its rated the balance on no sheet. GE This we to fully Importantly, of rated our loans part

match balance billion fixed to stable long-term of term and of our momentum generate have no our ROIs right-hand newer five convertible and our with coupon activity and an quarter facilities, a of $XXX markets issued million new existing capital These term rate during $X.X upsize rates convertible by on to rates. year sheet the credit liabilities attractive at increasing allowing currency interest side provisions is correlation of assets. these Our mark-to-market for to us facilities. and rising with similar positive provides X.XX%, interest financing our The notes origination supported dynamic agreement the for further low notes

times Spiral remains ample note have at $XXX we mentioned to debt-to-equity loan related on ratio earlier. Our X.X Steve a and million of quarter the modest One liquidity liquidity end.

loan schedule. was XQ million in $XXX of a a funding only this be BXMT, long for will Although future origination record funded billion with $X.X

I you liquidity going support the ask will for not our operator quarter. open result, call loan that, available new a second As the did this to significantly with impact Thank the questions. your to and into

Operator

the Your Don with Please Vandine Wells Instructions] line Fargo. comes [Operator question first of from proceed.

Don Vandine

A Good quick morning, question. Steve.

cycle. calls, good, could on continuing Blackstone companies the little you you that? hand of to on one earnings As towards market like gain bank any the have are end are hand, non-banks thoughts it On the the share. getting of aggressive a like that’s signal listen that other sounds sort to Do it

Stephen Plavin

non-bank it don’t lending the things. think as percentage reason has of the market I negative kind lot – share really total increased. speaks that, seeing of the in to more is the non-bank of I for a is One Don, an a aspect. credit This of is lenders think any of uptake us. you quality couple

seeing that of are I think very the that we quality is credit good. there out loans

general banks in environment not to think non-banks. be But I than environment are we tend cautious the now. an a – more dangerous in

their way I more non-banks to but – mode. sort as of me, competition build and actively – think growth do more it’s effectively terms in just of to business, as nearly regular continues effective So, while non-banks the not the banks from

Don Vandine

loan good, of of billion bit common has $X These your equity. loans a for the to about you syndication process? very about it access a that are big unique you Hudson hand Can to plans pure the And development size little are have flow. shows because these which you Spanish New talk York’s the at company of syndicate loan, transactions then, Gotcha. out terms in look do and if also the – on one because

Stephen Plavin

Yes, financing has the euros so, mitigated Spanish on process loan. is and loan. the complete well, investment XXX loan We the we been and loan equity to have size that borrowed and in the that so million generate that in we our return against –

favorable Spiral, really higher invested loan gets As after initially us. component a that. mean, it the funded funding then has relates the structure gets for equity I the to it of The and yield

of So portion years loan senior the funding closing. about obligation two XXXX, begin so for doesn’t or until us the after in the

us. something it’s a of syndicate comfortable relates the are really do. about, it’s we whether a finance given thinking also, nature particularly, actively for Spiral we It’s to to very we long are low the LTV low a the decide how that going to disclosure schedule, it’s as or want it risk, So really runway but to And or loan. that

So, into an distribute opportunity paper attractive the it’s feel piece that very we having one the really about of good and market finance. or to owning and a

Don Vandine

thank you, Okay, Steve.

Operator

Credit proceed. from comes question next Harter with of Your Suisse. Doug the line Please

Doug Harter

that? Thanks. that liquidity sort how other available holding commitment that the of about about larger Spiral, kind unfunded just of into think and just how quarter, Can see do talk the And how commitments? second you your two in on year context unfunded the the you heading liquidity against you of even schedule,

Doug Armer

quarter two the senior the liquidity it’s roughly post out mentioned. Hey, funding Doug. on $XXX during second as the that will million go ended of back-ended, $XXX The Spiral with million Doug Armer It’s away. years here. the quarter We Tony is

we covenants potential have runway in and deal capital that’s we unfunded of terms to liquidity roughly of or working a good target liquidity maintain Generally with requirement. syndication deal million So $XXX speaking, our a our commitments, relative of that financing. to and

that $X.X So at we that funding comfortable of developed we’ve I billion we we million and relative $XXX at. are new it’s sources our of in various are about quarter, think the pretty our maintaining – talked something flush terms during funding liquidity sources, to very we policy this

Doug Harter

of Spiral, providers complex I on manage pools? Blackstone equity Santander. you Got are how then, equity loan if said an I the talk and that you the would lender and just being And those guess, about also kind being believe you just the provider it. the potential of in Blackstone

Stephen Plavin

Well, such loan, loan not interest and our reality that that XX% we we and a in The get attractive in relates participation, in amount great that world its have strong do come with opportunity an while finance yes, trade XX% is give BXMT shareholders. we the the and to a overall purposes it’s comfort participation to a control, for of basis, loan. take this loan on great small we a in given for we of rights participation think as up return, in the control sponsor capital but relatively at down. does it of rights voting We this so, equity and investment stayed and minority lot the the its loan in greatest net-net – a

Doug Harter

then, quarter? average it balances really on it is loan that funded? I guess, more And the on next quarter quarter? much it. of of talk about just the contributing kind versus of for Got could impact And when kind will that, be you sort how contributed this And

Stephen Plavin

loan The quarter. the it funded and about Sure. end of fully at closing a closed before week was the

below than your it roughly during was loan the $X balance quarter So, billion billion $X – ended. average less where

actually. have will bigger earnings a impact on it So

Doug Harter

you. thank Great,

Operator

the next from Steve question line comes Delaney Securities. proceed. Please of with JMP Your

Steve Delaney

kind X that last look In morning question. When I Good what X, months and you’ve of you by the your question and basis able be what up Slide more, taking increase XX the and cents. XX see looked point a that portfolio before snapshot coverage hike, to to has or fact on in for everyone. of Thanks. give annual management coverage $X.XX It at. you would the about take the looking the to Thanks would of like in entertain me, at about covering and X.X us see been, you like months it adding dividend? each the for dividend earnings begs level an I looks six Slide average dividend backdrop over Board

Doug Armer

It’s Doug Steve. Hey, here.

Steve Delaney

Hi, Doug.

Doug Armer

Hello.

those equity sheet additional the XXX% and when the balance level XX the with dividend dividend. back increase the of size at you increase that base, to the the in about over you our potential look of rate When increase comfortable stability very in and sheet leverage refer arguments are coveraging for on trailing the environments, period. in balance we So, and you rising our the think are in our

always maintain terms also spreads our these We think is assets the of on about to ability in our and ROIs. Stability the dynamics priority.

our in to on it all think Board our focused comes I dividend when else is the policy, and stability quality. dividend above

match and a this be senior will leverage, that of on that in loans a dividend stability basis So, I low we’ve to continue LTV, think strategy in of maintaining funded the produced focus our lot been low environment. and

cognizant sheet We in potential growing that comes are of with a and balance for scale growth our business. obviously growing

Steve Delaney

on that’s I Doug’s part equation of Now to involvement Libor Spanish One it’s that’s pointed that thought higher, and out. spreads as helpful question just the quick funds. we follow-up but closely, very the watch the one nice the appreciate and you if about have of portfolio goes Blackstone because

– the if from tried of is, there structuring Blackstone are X guess you curios and I us a you were understand to still the had financing like closely in in if package the believe the that you global there Fund that a and $X of were banks some there role I you into financing other the thought follow-on input is Blackstone big Thanks. help I your that comfortable Just you and were – sounded I said, standalone X-K leading Mortgage had obviously it billion to terms it fund a of clarify, kind read financing was and would March were to of to that that property that and XXX% parties, that one I And unlikely were was entire where of the for really wording the downplaying terms. pretty am making reason it directly also situation you Blackstone rolling be type financing. a make owned of while loan the just BXMT would that the XXX% you

Stephen Plavin

we conflict Steve, and In sponsorship, an the of the in much of role not have potential Spanish question, as their terms the loan. – equity love and as we Blackstone so. active of the mindful we great are loan negotiation and a of did the It’s

that where how we we consider address be loans the will sponsorship Blackstone conflict. essentially participating and case the generally So, equity it’s and in in with situations

feel and look that whether at that’s BXMT financing as on the available terms those asset how independently So or the negotiations to we it’s our works are make it for evaluate the loan. and not. if leading make asset independently. well into not fits the We in and we the the we determination we we loan in think of portfolio But something decisions a

terms essentially of are are negotiated. a we the So taker that

the reason, REIT or that not. determination loans equity terms as the a loan vehicle. find to appropriate again, or participants us we to and it’s then lender We’ll always find we with won’t making in a who So, for Blackstone other not whether us be are whole the driving for

Steve Delaney

comments. Okay. It for makes the Thanks sense.

Stephen Plavin

the Thanks questions. for Sure.

Operator

Please JP line next comes from with the of Your question Rick proceed. Shane Morgan.

Rick Shane

Can me? guys. hear morning you Good

Stephen Plavin

can We hear Rick. Yes, you.

Rick Shane

Excellent.

match we euros and I’ve just bit, implications out the sure are this we But that like derivatives, sure north now, GAAP difference with off European of terms perspective facilities. works. that tax the I of make rates just how understand I’d your our diverge. to understand assets want a that those loans and but an in in you from talk are seen might around, XX% some of accounting I by you to make that as calculations to fund want your So, hedging denominated move of little how between understand of

Doug Armer

Rick, it’s Doug. That’s a great question.

right. are You

are hedging and currencies. of that are hedging in out the exposure particular, exposure in out new euros we We all other

Libor. loan. So rate in ultimately strategy Spanish include produces the asset’s total FX for U.S. a hedging our the base invested would the that dollar capital And swap and

GAAP I of Libor to them And earnings, the defers our there of that, terms opposed core think tax euribor way spread to real-time. think, Libor and the So as them impact sterling GAAP potential or earnings over that or slight for over a real-time in terms disconnect, particularly we a leverage results, for of through is the earnings, treats as regard core with well. I reflects treats in earnings, difference a terms tax OCI, example. capture those of in of sort But the

So, our I the to will over impact regard our base rates Libor the you with that results. dividend, of think FX see – in

Rick Shane

Got it.

Okay. then, rates seen the rise. base second And we’ve question, – obviously,

within about How low three years? What beta is your higher sensitivity think curious, – the two this to to just beta had spread long-term? the Steve should you provide and Page mean, to I X, pointed income Libor so real over we out, guys very or had far are as do to it’s Steve due You Page on guys we’ve over seeing the – X. next think Libor point look, we yields. seen compression

Doug Armer

point of earnings. I first other play the in terms besides thing Rick, Libor again. change dynamics couple the out in I is returns there it’s are Doug, our our that, would in mean, that of

But of going cost entire to relative quarter on in if that particular, sort definition them a our you debt obviously by made an in our a capital cost in One assets. time. over debt, It’s cost is was our will, look you by of lot down last if of of of we’ve the the at very of progress the from what’s reducing indicator lagging X and portfolio. that’s important all-in

the Libor will there a Libor you with our where a go incremental going change phenomenon ROIs, an can And And the long our change with between towards to to in down referring through while movement in there that ultimately, Libor. get changes of be might inverse to big you correlation X. average all-in the ROAs for very is spreads is in for up so sometime and play But is way sense low. that continue catching how move to an by are an

As go up Libor we benefit that so normal or if as in year under we’ll bit into see loosing see think from range, that we’ll correlation back think a gets and about we a X% are a to two, net we little opposed some you Libor. more change talking if the X%,

that end next to happens, that whether of that into remains the the or at it’s when be this be the following to or year As year, year will seen. –

Rick Shane

Got it.

Thank Okay. guys. That’s very helpful. you,

Operator

Your line next Please question Raymond with Laws the from James. Stephen of proceed. comes

Stephen Laws

first, And then an can I to Thanks portfolio on touch that morning. but of portfolio. to want duration the average good questions. quite on Capital us at I portfolio? continues point. GE is my for I Hi, those assets pay the the for the guess, down, this impact some taking I of remainder guessing duration how GE that much has? short you the am know maybe of color Capital give the

Stephen Plavin

portfolio out in between a either us. that XXXX and rate the the we or and now But front more assets, assets broken modified assets most fixed Yes, – BXMT almost opposed are that have and you run those all are general remains would the loans to significantly of protected as re-characterize loans as for sort assets they the now GE swaps part by that the that a that GE loans. can call don’t have in we GE answer give I or

don’t a you to except the – for from all BXMT near that – differential rates pie it’s of impact our the deal. small loans the the the much of to from think of fixed – portfolio percentage GE really and the the we anymore is rate relative XXXX slice rate are almost little GE it in the very end the I fixed this see very overall So overall is become remainder loans that we acquired enterprise. But of that tail the

Stephen Laws

tied is, to And credit still it those on to Okay. loans? does Q. facility, it Or of on Is million GE $XXX pay down facility? like the mentioned to about that that in tied then, it have looks I that the adjusted a financing think obviously financing portfolio period that shorter was

Doug Armer

That’s still credit of to look other with on a it’s facility Wells a cross practical and tied portfolio as loans those matter differentiated as so Steve fact, overall the facility and Fargo at combined we collateralized mentioned. of those – loans not one purposes, as if

Stephen Laws

leverage Great. And at it of and then, the picture liquidity I guess, – covered debt but to bigger few X.X. switching the financers, from you’ve is

raised where comfortable portfolio? with How and future about capital as both whether with talk are the longer-term growing equity Can given raise to you think Spiral or underfunded December. to about the both commitments be and equity debt since leverage? capital especially You’ve offerings, you you debt

Stephen Plavin

question. great a It’s

which I think, to very be we there times even debt-to-equity debt-to-equity, with X.X room sure as terms times. in is for X we regard to low that at regard at of currently are X.X think or times I and

terms in our net So with we million sort based fundings relative type to capacity we whatever that the in ample sheet at and comes certainly past of in capital by liquidity, on additional debt. growth now, of will have would think, the that Right we position, debt. we issuance have as and decision terms growth, is of business or on for have funded And from sheet turned basis on additional we make feel balance liquidity of $XXX an a to lot the existing room leverage ongoing of of conditions time. there liquidity that that market I be balance and evaluate liquidity so would fund additional our like in of raise the

Stephen Laws

six as and last given How this with How that higher points a to seen talk But in – and rates as certainly now or move are follow-up something in impact than going construction twelve are to much discussion giving on mentioned have, and shift in started to have environment? Steve one months its conversations And ago? rate you Great. you borrowers new earlier. does question with them transitional borrowers have any conversations new loans? Delaney

Stephen Plavin

or haven’t are seen now to anything we’ll rates environment what still we the loan. loans than we and underwrite higher The are We of low actually a endure related. throughout what experience our really rate term think much the rate we experiencing

– it as the built product, feel on base and to borrowers on gives opportunities we loan The of occasionally for us spreads, an this. create of not spreads really So lot refi it to they really opportunity pressure loans. a handle loan is compressing The refinancing only rates. new but source also our their

rates. seeing and of are of from for a our loan impact we existing So really not really opportunities other compressing base sheet balance maintaining mindful looking refinance in a spread lot but environment,

Stephen Laws

color the questions. for that. on taking Thanks my Appreciate Great.

Operator

KBW. from comes the question line Rahmani Please Jade final Our of with proceed.

Jade Rahmani

you further start commercial think year much. noting or there see expected credit some maturities in was real it very give would the negative potentially if wondering the next, say, still four on that could $Xtrillion you trends years? over I how to overall thoughts ten increase in much about could estate Libor before is debt Thanks your take of we

Stephen Plavin

Yes. Libor Jade, we Libor is what X.XX and reasonably one good to at month I a sort the think of Libor, at you listen look we that, if and saying Fed Libor it’s curve think maybe the look of index forward potentially about higher than most our it’s Libor and loans. today But get which are X% the the for that. chance that you could that,

are rates point. in we just this don’t last see issue rates at – the It’s healthy I a And low. treasuries answer, relatively as rates a and Cap a we so, like, that in credit between rates. It historically good market still the gap place in cap just historical we are are environment. to treasury overall. is of terms mentioned The don’t just as good relative – feels

are kinds the same XXXX. were that of XXXX prevalent in in the lending abuses We and seeing market not

in equity rather more sponsors to than Our put are deals still less. wanting

our We in trends are business loans. we the underwrote that portfolio. these All when across in positive improvement lines expected we leasing seeing loan

not underlies So question. seeing cycle I just we are think that your gloom of and of doom the any end the – the

We are don’t environment, sort changing business of seeing see constructive the that very we our good positive and near-term. in for

Jade Rahmani

necessitate that in to talking year year, the a rate quite X% higher cap parallel Libor Do ten you spread it cap X% ten impact of be if increase to rates, similar in rates? The And maintain a you would ROEs. cap so in institutional be think compressed north to that seem a translated would increase at further over treasury. about would and point to this

Stephen Plavin

just margin to increased activity. to we see demand and rates performance seems expect we also if increased cap quality treasuries I side compressing, the actually plans And to economic the hotel to on putting five when think rate the been We of time rates. cap that rates be the loans seeing conjunction and same during year by But growth could make rates underwriting in typically a cap rates years sure go extents magnitude, But think We’ve at estate. for begin we recently would economic and there in for improve Yes, with think five treasury house are real of just it that cap business increase. increasing the seen remember, activity seeing equity we loan, in leading time over rates. that we’ve is would of have make NOI we I time. impact the presume institutional the period you also, our to with that are cap what with higher

what so bit the tax office I more some was rental prior little a anticipated, than seeing are markets think more take up in to reform. than We of

on still things are So, well I balanced. the pretty think ground,

Jade Rahmani

assuming you Is financing, that where comment a are on granted support maybe would level? range, spread you Can L overall the leverage in released bridge Libors say at of peers XXX, have Okay. the press spreads levered and to times levered where some but the loan you returns XXX where there in Plus your dividend enough are? mean, snapshot? three are returns increased, today space, room I post-XQ

Doug Armer

is, on of is cost an our three yes. liabilities we think low financing, so you also leverage being of bit Xth And at answer little down maintaining horizon. not efficiencies senior significantly of I to ROIs levered portfolio-wide four note terms double-digit our asset cost quarter-over-quarter times commented I the see more short on a in all-in on When able The Doug. are terms an It’s the Jade. we what portfolio would we that all up, of is basis, in add a Hey, down low level. costs. our incremental times, loans achieve the portfolio, that,

Jade Rahmani

a a warehouse that you the have financings financing And It rates dependent there is note with seems A through get others between players that? market? Blackstone facilities on yourselves starting can to bifurcation can whereas more attractive you Would that cost-to-capital be comment on advantage. sponsorship with – like are agree

Doug Armer

us a our Doug big Hey, Jade. mean, I It’s They think that. and relationships facilities bilateral advantage are credit are again. I credit our we providers with Yes, with us. extremely our economically sound. for very that – pricing. agree would are the very loan And liability helps of are position of a also strong and they structure stay maintain main are and competitive it in our efficient terms they structurally

Jade Rahmani

potential competitive higher And risk platform time just is about the in of given could complement even defensive and to be other it interest thinking environment some respects? start businesses that lastly, the rates, and

Stephen Plavin

to capital. in this we performance a achieve I to our been us best shareholders. available to and and Board that business to and senior continue work the resonate well We��ve of to based growth our mortgage upon continues the believe it strategy and for business use to able is think, to model and our lot Jade,

right always you’ve that returns, we stable a grow in we or for of a business, additive a see need case we we of and business. is from that make and feel we us regular overall existing that consider would in produce – that offset. would be compelling shareholders make, that we to about better more will But, might then our compromise to production maintain continue combine regular able we more with additive, be or see the to business of now, believe will And like meaningful business our results something don’t way will be definitely to investment. anything it and to that are lines if way that our or would seen beneficial always going are defensive very complementary to other thinking BXMT We ways have lead environmental is way

So have well. perform and for something we going it great beneficial not that’s if love think – think and add we that us, what else that we’ll one we more are to very a If we business is doing. or see we very additive, we

Jade Rahmani

Thanks very questions. the much for

Stephen Plavin

you. Thank

Operator

back I Weston like any to remarks. the would hand now closing call over for Tucker to

Weston Tucker

please you Great. joining us know Thanks after today. everyone call. And have the for me any let questions if

Operator

gentlemen, conference. you for Thank and concludes that participation. Ladies today's your

disconnect. now a may day. great You Have

Blackstone Mortgage Trust (BXMT) 25 Apr 182018 Q1 Earnings call transcript