Segment Reporting

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

14. SEGMENT REPORTING

We operate our real estate finance business through a Loan Origination segment and a CT Legacy Portfolio segment. The Loan Origination segment includes our activities associated with the origination and acquisition of mortgage loans, the capitalization of our loan portfolio, and the costs associated with operating our business generally. The CT Legacy Portfolio segment includes our activities specifically related to CT Legacy Partners, CT CDO I, and our equity investment in CTOPI. Our Manager makes operating decisions and assesses the performance of each of our business segments based on financial and operating data and metrics generated from our internal information systems.

There were no transactions between our operating segments during the nine months ended September 30, 2014 and 2013. For the three and nine months ended September 30, 2014, 14% and 10% of our revenues were generated from international sources, respectively. Substantially all of our revenues for the three and nine months ended September 30, 2013 were generated from domestic sources.

The following table presents our consolidated statement of operations for each segment for the three months ended September 30, 2014 and 2013 ($ in thousands):

	Three Months Ended September 30, 2014
	Loan			CT Legacy
	Origination			Portfolio			Total
Income from loans and other investments
Interest and related income	$	49,720		$	666		$	50,386
Less: Interest and related expenses		19,713			190			19,903
Income from loans and other investments, net		30,007			476			30,483
Other expenses
Management and incentive fees		5,412			—			5,412
General and administrative expenses		2,705			663			3,368
Total other expenses		8,117			663			8,780
Gain on investments at fair value		—			1,780			1,780
Income before income taxes		21,890			1,593			23,483
Income tax benefit		—			(118	)		(118	)
Net income		21,890			1,711			23,601
Net income attributable to non-controlling interests		—			(1,577	)		(1,577	)
Net income attributable to Blackstone Mortgage Trust, Inc.	$	21,890		$	134		$	22,024
	Three Months Ended September 30, 2013
	Loan			CT Legacy
	Origination			Portfolio			Total
Income from loans and other investments
Interest and related income	$	15,143		$	3,710		$	18,853
Less: Interest and related expenses		3,822			585			4,407
Income from loans and other investments, net		11,321			3,125			14,446
Other expenses
Management and incentive fees		2,433			—			2,433
General and administrative expenses		1,026			589			1,615
Total other expenses		3,459			589			4,048
Valuation allowance on loans held-for-sale		—			(600	)		(600	)
Gain on investments at fair value		—			464			464
Income before income taxes		7,862			2,400			10,262
Income tax benefit		(21	)		(243	)		(264	)
Net income		7,883			2,643			10,526
Net income attributable to non-controlling interests		—			(2,206	)		(2,206	)
Net income attributable to Blackstone Mortgage Trust, Inc.	$	7,883		$	437		$	8,320

The following table presents our consolidated statement of operations for each segment for the nine months ended September 30, 2014 and 2013 ($ in thousands):

	Nine Months Ended September 30, 2014
	Loan			CT Legacy
	Origination			Portfolio			Total
Income from loans and other investments
Interest and related income	$	123,127		$	3,380		$	126,507
Less: Interest and related expenses		46,843			854			47,697
Income from loans and other investments, net		76,284			2,526			78,810
Other expenses
Management and incentive fees		13,219			—			13,219
General and administrative expenses		9,049			12,871			21,920
Total other expenses		22,268			12,871			35,139
Gain on investments at fair value		—			7,604			7,604
Income from equity investments in unconsolidated subsidiaries		—			24,294			24,294
Income before income taxes		54,016			21,553			75,569
Income tax provision		131			281			412
Net income		53,885			21,272			75,157
Net income attributable to non-controlling interests		—			(6,602	)		(6,602	)
Net income attributable to Blackstone Mortgage Trust, Inc.	$	53,885		$	14,670		$	68,555
	Nine Months Ended September 30, 2013
	Loan			CT Legacy
	Origination			Portfolio			Total
Income from loans and other investments
Interest and related income	$	17,051		$	9,276		$	26,327
Less: Interest and related expenses		3,991			2,501			6,492
Income from loans and other investments, net		13,060			6,775			19,835
Other expenses
Management and incentive fees		3,416			—			3,416
General and administrative expenses		2,923			3,173			6,096
Total other expenses		6,339			3,173			9,512
Valuation allowance on loans held-for-sale		—			1,200			1,200
Gain on investments at fair value		—			4,464			4,464
Gain on extinguishment of debt		—			38			38
Income before income taxes		6,721			9,304			16,025
Income tax benefit		(19	)		348			329
Net income		6,740			8,956			15,696
Net income attributable to non-controlling interests		(193	)		(7,550	)		(7,743	)
Net income attributable to Blackstone Mortgage Trust, Inc.	$	6,547		$	1,406		$	7,953

The following table presents our consolidated balance sheet for each segment as of September 30, 2014 and December 31, 2013 ($ in thousands):

	September 30, 2014
	Loan		CT Legacy
	Origination		Portfolio		Total
Assets
Cash and cash equivalents	$	63,343	$	—	$	63,343
Restricted cash		—		10,855		10,855
Loans receivable, net		3,906,226		—		3,906,226
Equity investments in unconsolidated subsidiaries		—		14,990		14,990
Accrued interest receivable, prepaid expenses, and other assets		29,727		73,332		103,059
Total assets	$	3,999,296	$	99,177	$	4,098,473
Liabilities and Equity
Accounts payable, accrued expenses, and other liabilities	$	45,309	$	37,702	$	83,011
Revolving repurchase facilities		1,669,406		—		1,669,406
Asset-specific repurchase agreements		226,961		—		226,961
Loans participations sold		447,977		—		447,977
Convertible notes, net		161,259		—		161,259
Total liabilities		2,550,912		37,702		2,588,614
Equity
Total Blackstone Mortgage Trust, Inc. stockholders’ equity		1,448,384		29,355		1,477,739
Non-controlling interests		—		32,120		32,120
Total equity		1,448,384		61,475		1,509,859
Total liabilities and equity	$	3,999,296	$	99,177	$	4,098,473
	December 31, 2013
	Loan		CT Legacy
	Origination		Portfolio		Total
Assets
Cash and cash equivalents	$	52,342	$	—	$	52,342
Restricted cash		—		10,096		10,096
Loans receivable, net		2,000,223		47,000		2,047,223
Equity investments in unconsolidated subsidiaries		—		22,480		22,480
Accrued interest receivable, prepaid expenses, and other assets		21,020		59,619		80,639
Total assets	$	2,073,585	$	139,195	$	2,212,780
Liabilities and Equity
Accounts payable, accrued expenses, and other liabilities	$	21,104	$	76,049	$	97,153
Revolving repurchase facilities		863,622		—		863,622
Asset-specific repurchase agreements		245,731		—		245,731
Loan participations sold		90,000		—		90,000
Convertible notes, net		159,524		—		159,524
Total liabilities		1,379,981		76,049		1,456,030
Equity
Total Blackstone Mortgage Trust, Inc. stockholders’ equity		693,604		24,305		717,909
Non-controlling interests		—		38,841		38,841
Total equity		693,604		63,146		756,750
Total liabilities and equity	$	2,073,585	$	139,195	$	2,212,780