8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 23, 2019

Blackstone Mortgage Trust, Inc.

(Exact name of registrant as specified in its charter)

Maryland	1-14788	94-6181186
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

345 Park Avenue, 42nd Floor

New York, New York 10154

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (212) 655-0220

Not Applicable

(Former Name or Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Item 2.02 Results of Operations and Financial Condition.

On April 23, 2019, Blackstone Mortgage Trust, Inc. (the “Company”) issued a press release and detailed presentation announcing its financial results for the first quarter ended March 31, 2019. The press release and full detailed presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information contained under Item 2.02 in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and will not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press Release of Blackstone Mortgage Trust, Inc. dated April 23, 2019.
99.2	Presentation of Blackstone Mortgage Trust, Inc. dated April 23, 2019.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BLACKSTONE MORTGAGE TRUST, INC.
Date: April 23, 2019
	By:	/s/ Anthony F. Marone, Jr.
	Name:	Anthony F. Marone, Jr.
	Title:	Chief Financial Officer

EX-99.1

Exhibit 99.1

Blackstone Mortgage Trust Reports

First Quarter 2019 Results

New York, April 23, 2019: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its first quarter 2019 results.

Stephen D. Plavin, Chief Executive Officer, said, “Our first quarter results reflect the strong earnings power of BXMT’s scaled portfolio. With our new, attractively priced term loan, we are better positioned than ever to continue delivering for our shareholders.”

Blackstone Mortgage Trust issued a full detailed presentation of its first quarter 2019 results, which can be viewed at www.bxmt.com.

Quarterly Investor Call Details

Blackstone Mortgage Trust will host a conference call on Wednesday, April 24, 2019 at 10:00 a.m. ET to discuss first quarter 2019 results. The conference call can be accessed by dialing +1 (888) 268-4178 (U.S. domestic) or +1 (617) 597-5494 (international), with the passcode 245-054-61# or by webcast at www.bxmt.com (listen only). For those unable to listen to the live broadcast, a recorded replay will be available on the company’s website or by telephone beginning approximately two hours after the event. The replay call number is +1 (888) 286-8010 (U.S. domestic) or +1 (617) 801-6888 (international), with the passcode 350-306-82#.

About Blackstone Mortgage Trust

Blackstone Mortgage Trust (NYSE:BXMT) is a real estate finance company that originates senior loans collateralized by commercial real estate in North America, Europe, and Australia. Our investment objective is to preserve and protect shareholder capital while producing attractive risk-adjusted returns primarily through dividends generated from current income from our loan portfolio. We are externally managed by BXMT Advisors L.L.C., a subsidiary of Blackstone. Further information is available at www.bxmt.com.

About Blackstone

Blackstone (NYSE:BX) is one of the world’s leading investment firms. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies it invests in, and the communities in which it works. Blackstone does this by using extraordinary people and flexible capital to help companies solve problems. Blackstone’s asset management businesses, with $512 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

Blackstone Mortgage Trust, Inc.

345 Park Avenue

New York, New York 10154

T 212 655 0220

Forward-Looking Statements and Other Matters

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect Blackstone Mortgage Trust’s current views with respect to, among other things, Blackstone Mortgage Trust’s operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Blackstone Mortgage Trust believes these factors include but are not limited to those described under the section entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended December 31, 2018, as such factors may be updated from time to time in its periodic filings with the Securities and Exchange Commission (“SEC”) which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the filings. Blackstone Mortgage Trust assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances.

Investor and Media Relations Contacts

Weston Tucker Investor Relations Blackstone +1 (212) 583-5231 tucker@blackstone.com Paula Chirhart Media Relations Blackstone +1 (212) 583-5011 paula.chirhart@blackstone.com

EX-99.2

Blackstone Mortgage Trust, Inc.

April 23, 2019

First Quarter Results

Exhibit 99.2

Blackstone Mortgage Trust

1

BXMT’s

increased

1Q’19

earnings

power

reflects

the

increased

scale

of

its

$16.1

billion

senior

loan

portfolio

(a)

1Q’19

EPS

of

$0.62

and

Core

EPS

(b)

of

$0.71

represent

growth

of

$0.06

and

$0.07

over

1Q’18

$12.1

$16.1

$0.64

$0.71

$0.40

$0.45

$0.50

$0.55

$0.60

$0.65

$0.70

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

1Q'18

1Q'19

Outstanding Portfolio

(a)

BXMT Highlights

Increased Scale and Earnings Power

Dividend Coverage

(d)

Dividend Yield

(c)

115%

7.2%

100%

62%

Performing Loans

Loan-to-Value

(a)(e)

Core EPS

($ in billions, except per share data)

Information included in this presentation is as of or for the period ended March 31, 2019, unless otherwise indicated.

(a)

Includes $447 million and $450 million of Non-Consolidated Senior Interests as of December 31, 2018 and March 31, 2019, respectively, and investment exposure to the $1.0 billion 2018 Single

Asset Securitization through a $99 million subordinate risk retention interest.

(b)

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

(c)

Based

on

annualized

dividend

and

BXMT

closing

price

as

of

April

22,

2019.

(d)

Reflects ratio of Core Earnings to dividends declared.

(e)

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

(f)

1Q 2018 GAAP EPS was $0.56. See Appendix for a  definition and reconciliation to GAAP net income.

(f)

Blackstone Mortgage Trust

2

Originations

Originations

Earnings &

Dividends

Earnings &

Dividends

EPS

of

$0.62

and

Core

Earnings

(a)

per

share

of

$0.71,

or

$88

million

Increased

book

value

per

share

by

$0.12

to

$27.32;

paid

$0.62

per

share

dividend

First Quarter 2019 Results

Portfolio

Composition

Portfolio

Composition

Capitalization

Capitalization

Interest Rates

Interest Rates

$699

million

of

originations

and

$204

million

of

fundings

under

previously

originated

loans

Net

portfolio

growth

of

$298

million

and

TTM

(b)

net

fundings

of

$3.6

billion

$16.1

billion

(c)

portfolio

secured

by

institutional

quality

real

estate

in

major

markets

100%

performing

portfolio

with

a

weighted

average

origination

LTV

(c)(d)

of

62%

Post

quarter

end,

closed

a

$500

million

senior

secured

term

loan

at

L+2.50%

(99.75

OID)

with

a

7-year

term

$12.0

billion

diversified

asset-level

financing

structure;

2.8x

debt-to-equity

ratio

(e)

Floating

rate

assets

and

matched

liabilities

support

book

value

and

earnings

stability

Increased

LIBOR

translates

to

increased

earnings,

(f)

while

LIBOR

floors

in

certain

loans

mitigate

the

impact

of

potential

rate

declines

(a)

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

(b)

Represents the twelve months ended March 31, 2019.

(c)

Includes $450 million of Non-Consolidated Senior Interests and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $99 million subordinate risk retention interest.

(d)

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

(e)

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

(f)

Changes in interest rates and credit spreads may affect our net interest income from loans and other investments and therefore our net income. See Appendix for important disclosures.

Blackstone Mortgage Trust

3

$26.28

$26.95

$27.32

1Q'17

1Q'18

1Q'19

$0.62

$0.09

Earnings & Dividends

Earnings & Dividends

(a)

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

(b)

Based on annualized dividend and BXMT closing price as of April 22, 2019.

(c)

1Q GAAP EPS was $0.62; retained Core Earnings refers to the amount of Core Earnings in excess of dividends paid for the periods presented.

$0.62

Quarterly

Dividend

Dividends Paid

Retained

Core Earnings

Book Value Per Share Growth

1Q

Core

Earnings

Per

Share

(c)

1Q

GAAP

EPS

of

$0.62

and

Core

Earnings

(a)

of

$0.71

per

share;

$0.62

per

share

dividend

equates

to

a

7.2%

dividend

yield

(b)

Retained

earnings

in

excess

of

quarterly

dividends

enhanced

book

value

per

share

Blackstone Mortgage Trust

4

$3.1

$6.7

Originations

Originations

($ in billions)

TTM Net Fundings

100% senior loans

100% floating rate

U.S., Canada and Europe

1Q 2019 Origination Highlights

$147

million

average

loan

size

(b)

$3.6B

Net Fundings

Fundings

Repayments

$699

million

of

originations

and

$204

million

of

fundings

under

previously

originated

loans

Net

portfolio

growth

of

$298

million

and

TTM

(a)

net

fundings

of

$3.6

billion

Originations

in

U.S.,

Europe,

and

Canada

demonstrate

our

global

reach,

taking

advantage

of

Blackstone’s

scale

(a)

Represents the twelve months ended March 31, 2019.

(b)

Excluding upsizes

and loans originated in the Walker & Dunlop joint venture.

Blackstone Mortgage Trust

5

Portfolio Composition

Collateral Diversification

(a)

(a)

Includes $450 million of Non-Consolidated Senior Interests and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $99 million subordinate risk retention interest.

(b)

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

Weighted Average LTV

(a)(b)

62%

States that comprise less than 1% of total portfolio

BE

CAN

ES

7%

UK

9%

2%

1%

AU

2%

Self-Storage

Condo

Retail

Industrial

Office

Hotel

Other

Multi

$16.1B

portfolio

1%

AZ

CO

1%

DC

2%

NC

1%

OH

1%

TN

1%

1%

WA

GA

3%

TX

2%

FL

4%

HI

5%

IL

7%

VA

5%

CA

15%

MD

1%

MA

2%

NY

26%

NV

1%

Major Market Focus

(a)

$16.1

billion

portfolio

(a)

comprising

123

assets

secured

by

institutional

quality

real

estate,

with

71%

in

gateway

markets

High

quality

100%

performing

portfolio

with

low

weighted

average

LTV

(a)(b)

of

62%

Blackstone Mortgage Trust

6

Capitalization

$12.0

billion

of

outstanding

asset-level

financing

on

a

market-leading,

match-funded

basis

Issued

1.9

million

shares

through

ATM

program

at

an

average

1.27x

P/B

($66

million

gross

proceeds)

(a)

Includes $1.3 billion of consolidated securitized debt obligations as well as $0.9 billion of securitized debt held by third-parties in the $1.0 billion 2018 Single Asset Securitization, which is not

consolidated on BXMT’s balance sheet. Refer to our consolidated financial statements for further discussion of the subordinated risk retention interest related to the 2018 Single Asset

Securitization.

(b)

Includes

$107

million

of

loan

participations

sold

and

$450

million

of

Non-Consolidated

Senior

Interests,

which

result

from

non-recourse

sales

of

senior

loan

interests

in

loans

BXMT

originates.

BXMT’s net investments in these loans are reflected in the form of mezzanine or other subordinate loans on BXMT’s balance sheet.

(c)

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

($ in billions)

Financing

(Outstanding Balance)

Credit Facilities

11 Credit Providers

Corporate Debt

Convertible Notes and Secured Facility

Corporate Obligations

Senior Loan

Interests

(b)

$9.2

$0.6

$0.6

$9.8

Securitized

Debt

(a)

$2.2

CLO and Single Asset Securitization

2.8x

Debt-to-Equity Ratio

(c)

Senior Syndications

Blackstone Mortgage Trust

7

-2.00%

-1.50%

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

Interest Rates

Floating

rate

assets

and

matched

liabilities

support

book

value

and

earnings

stability

1.0%

increase

in

USD

LIBOR

would

increase

earnings

per

share

by

$0.05

per

quarter,

(a)

while

LIBOR

floors

in

certain

loans

mitigate

the

impact

of

potential

rate

declines

(a)

Changes in interest rates and credit spreads may affect our net interest income from loans and other investments and therefore our net income. Reflects impact on net income, net of incentive

fees, on U.S. dollar denominated portfolio. See Appendix for important disclosures.

(b)

Includes $450 million of Non-Consolidated Senior Interests and investment exposure to the $1.0 billion 2018 Single Asset Securitization through a $99 million subordinate risk retention interest.

Sensitivity to USD LIBOR

(a)

(Quarterly Earnings per Share)

Portfolio

Fixed

vs.

Floating

(b)

(% of Total Investment Exposure)

Floating

Fixed

USD LIBOR

$0.00

+$0.03

+$0.05

+$0.08

+$0.10

($0.02)

($0.03)

($0.04)

($0.03)

Floors Protect Against

USD LIBOR Declines

4%

96%

Appendix

Blackstone Mortgage Trust

9

GAAP Net

Income

Adjustments

Core

Earnings

Interest Income

224.8

$    

$—

224.8

$    

Interest Expense

(118.7)

0.1

(118.6)

Management and

Incentive Fees

(19.8)

—

(19.8)

General and Administrative

Expenses

(1.5)

—

(1.5)

Non-Cash

Compensation

(7.8)

7.8

—

Hedging and Foreign Currency

Income, net

(a)

—

3.2

3.2

Net Income Attributable to

Non-controlling Interests

(0.4)

—

(0.4)

Total

76.6

$     

11.1

$      

87.7

$     

4Q'18 Loans

Outstanding

Fundings

Repayments

1Q'19 Loans

Outstanding

Appendix –

First Quarter 2019 Operating Results & Net Fundings

Net Fundings

(b)(c)

($ in billions)

Operating Results

($ in millions)

$16.1

$15.8

($0.5)

(a)

Primarily represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign

currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. These

amounts are not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.

(b)

Excludes the impact of changes in foreign currency rates and related hedges for non-USD investments.

(c)

Includes $447 million and $450 million of Non-Consolidated Senior Interests as of December 31, 2018 and March 31, 2019, respectively, and investment exposure to the $1.0 billion 2018 Single

Asset Securitization through a $99 million subordinate risk retention interest.

$0.71

Core Earnings per Share

$0.62

Net Income per Share

$298 million

1Q’19 Net Fundings

$0.8

Blackstone Mortgage Trust

10

Origination

Total

Principal

Net Book

Maximum

Property

Loan Per

Origination

Loan Type

Date

(a)

Loan

(b)(c)

Balance

(b)(c)

Value

Maturity

(d)

Location

Type

SQFT / Unit / Key

LTV

(a)

Loan 1

Senior loan

3/22/2018

$  1,076

$  1,076

$  1,069

L + 3.15

%

L + 3.40

%

3/15/2023

Diversified - Spain

Mixed-Use

n/a

71 %

Loan 2

Senior loan

5/11/2017

753

691

688

L + 3.40

%

L + 3.60

%

6/10/2023

Washington DC

Office

$338 / sqft

62 %

Loan 3

Senior loan

(b)

8/6/2015

481

481

87

5.75

%

5.77

%

10/29/2022

Diversified - EUR

Other

n/a

71 %

Loan 4

Senior loan

5/1/2015

355

342

342

L + 2.85

%

L + 3.02

%

5/1/2023

New York

Office

$434 / sqft

68 %

Loan 5

Senior loan

2/13/2018

330

325

325

L + 3.42

%

L + 3.52

%

3/9/2023

New York

Multi

$786,898 / unit

62 %

Loan 6

Senior loan

1/7/2015

350

325

324

L + 2.50

%

L + 2.76

%

1/9/2021

New York

Office

$278 / sqft

53 %

Loan 7

Senior loan

10/23/2018

352

316

314

L + 3.40

%

L + 3.72

%

10/23/2021

New York

Mixed-Use

$287 / sqft

65 %

Loan 8

Senior loan

1/11/2019

313

313

309

L + 4.35

%

L + 4.70

%

1/11/2026

Diversified - UK

Other

$151 / sqft

59 %

Loan 9

Senior loan

3/31/2017

339

303

300

L + 3.50

%

L + 3.87

%

8/9/2023

Maui

Hotel

$398,832 /  key

61 %

Loan 10

Senior loan

11/30/2018

291

275

272

L + 2.83

%

L + 3.20

%

12/9/2023

New York

Hotel

$224,913 /  key

73 %

Loan 11

Senior loan

11/30/2018

254

247

245

L + 2.80

%

L + 3.17

%

12/9/2023

San Francisco

Hotel

$363,291 /  key

73 %

Loan 12

Senior loan

12/11/2018

310

241

238

L + 2.55

%

L + 2.96

%

12/9/2023

Chicago

Office

$203 / sqft

78 %

Loan 13

Senior loan

8/3/2016

276

236

237

L + 4.66

%

L + 5.32

%

8/9/2021

New York

Office

$325 / sqft

57 %

Loan 14

Senior loan

12/22/2017

225

225

224

L + 2.80

%

L + 3.16

%

1/9/2023

Chicago

Multi

$326,087 / unit

65 %

Loan 15

Senior loan

5/9/2018

219

219

218

L + 3.00

%

L + 3.24

%

5/9/2023

New York

Industrial

$62 / sqft

70 %

Loans 16 - 122

Senior loans

Various

12,316

9,437

9,317

5.85

%

(e)

6.24

%

(e)

Various

Various

Various

Various

62 %

Total/Wtd. avg.

$  18,240

$  15,053

$  14,509

5.59

%

5.95

%

3.8 yrs

64 %

Cash

All-in

Coupon

Yield

Portfolio Details

($ in millions)

(a)

Date loan was originated or acquired by BXMT, and the LTV as of such date.

(b)

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

March 31, 2019, three loans in the portfolio have been financed with an aggregate $450 million of Non-Consolidated Senior Interests, which are included in the table above.

(c)

Portfolio excludes our $99 million subordinate risk retention interest in the $1.0 billion 2018 Single Asset Securitization.

(d)

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

(e)

Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for weighted-average calculation.

Blackstone Mortgage Trust

11

Consolidated Balance Sheets

($ in thousands, except per share data)

March 31, 2019

December 31, 2018

Assets

Cash and cash equivalents

79,437

$                     

105,662

$                    

Loans receivable, net

14,508,735

14,191,200

Other assets

208,048

170,513

Total assets

14,796,220

$             

14,467,375

$             

Liabilities and equity

Secured debt agreements, net

9,208,010

$               

8,974,756

$               

Loan participations sold, net

107,237

94,418

Securitized debt obligations, net

1,286,417

1,285,471

Convertible notes, net

610,684

609,911

Other liabilities

132,283

128,212

Total liabilities

11,344,631

11,092,768

Commitments and contingencies

—

—

Equity

Class A common stock, $0.01 par value

1,257

1,234

Additional paid-in capital

4,039,805

3,966,540

Accumulated other comprehensive loss

(30,756)

(34,222)

Accumulated deficit

(570,908)

(569,428)

Total

Blackstone

Mortgage

Trust,

Inc.

stockholders’

equity

3,439,398

3,364,124

Non-controlling interests

12,191

10,483

Total equity

3,451,589

3,374,607

Total liabilities and equity

14,796,220

$             

14,467,375

$             

Blackstone Mortgage Trust

12

Consolidated Statements of Operations

($ in thousands, except per share data)

Three Months Ended March 31,

2019

2018

Income from loans and other investments

Interest and related income

224,759

$            

155,425

$            

Less: Interest and related expenses

118,688

69,989

Income from loans and other investments, net

106,071

85,436

Other expenses

Management and incentive fees

19,790

15,492

General and administrative expenses

9,313

8,708

Total other expenses

29,103

24,200

Income before income taxes

76,968

61,236

Income tax provision

101

120

Net income

76,867

$               

61,116

$               

Net income attributable to non-controlling interests

(302)

(158)

Net income attributable to Blackstone Mortgage Trust, Inc.

76,565

$               

60,958

$               

Per share information (basic and diluted)

Weighted-average shares of common stock outstanding

124,333,048

108,397,598

Net income per share of common stock

0.62

$                  

0.56

$                  

Blackstone Mortgage Trust

13

Per Share Calculations

(a)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(b)

Primarily

represents

the

forward

points

earned

on

our

foreign

currency

forward

contracts,

which

reflect

the

interest

rate

differentials

between

the

applicable

base

rate

for

our

foreign

currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. These

amounts are not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.

Core Earnings

Reconciliation

Book Value

per Share

Earnings

per Share

(Amounts in thousands, except per share data)

Three Months Ended

March 31, 2019

December 31, 2018

Stockholders’

equity

3,439,398

$             

3,364,124

$                

Shares

Class A common stock

125,667

123,436

Deferred stock units

237

229

Total outstanding

125,904

123,665

Book value per share

27.32

$                     

27.20

$                         

Three Months Ended

March 31, 2019

December 31, 2018

Net income

(a)

76,565

$                   

73,643

$                     

Non-cash compensation expense

7,768

7,666

Hedging and foreign currency income, net

(b)

3,271

1,942

Other items

95

394

Core Earnings

87,699

$                   

83,645

$                     

Weighted-average shares outstanding, basic and diluted

124,333

121,588

Core Earnings per share, basic and diluted

0.71

$                       

0.69

$                           

Three Months Ended

March 31, 2019

December 31, 2018

Net income

(a)

76,565

$                   

73,643

$                     

Weighted-average shares outstanding, basic and diluted

124,333

121,588

Earnings per share, basic and diluted

0.62

$                       

0.61

$                           

Blackstone Mortgage Trust

14

Reconciliation of Net Income to Core Earnings

(a)

Represents net income attributable to Blackstone Mortgage Trust, Inc.

(b)

Primarily

represents

the

forward

points

earned

on

our

foreign

currency

forward

contracts,

which

reflect

the

interest

rate

differentials

between

the

applicable

base

rate

for

our

foreign

currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. These

amounts are not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.

(c)

Adjustment in respect of the deferral in Core Earnings of the accretion of a total $9.1 million of purchase discount attributable to a certain pool of GE portfolio loans until repayment in full

of the remaining loans in the pool is substantially assured.

(Amounts in thousands, except per share data)

2019

2018

Net income

(a)

76,565

$           

60,958

$           

Non-cash compensation expense

7,768

6,976

Hedging and foreign currency income, net

(b)

3,271

854

GE purchase discount accretion adjustment

(c)

—

(17)

Other items

95

534

Core Earnings

87,699

$           

69,305

$           

Weighted-average shares outstanding, basic and diluted

124,333

108,398

Net income per share, basic and diluted

0.62

$               

0.56

$               

Core Earnings

per share, basic and diluted

0.71

$               

0.64

$               

Three Months Ended March 31,

Blackstone Mortgage Trust

15

Definitions

Core

Earnings:

Blackstone

Mortgage

Trust,

Inc.

(“BXMT”)

discloses

Core

Earnings

in

this

presentation.

Core

Earnings

is

a

financial

measure

that

is

calculated

and

presented

on

the

basis

of

methodologies

other

than

in

accordance

with

generally

accepted

accounting

principles

in

the

United

States

of

America

(“GAAP”).

Core

Earnings

is

an

adjusted

measure

that

helps

BXMT

evaluate

its

performance

excluding

the

effects

of

certain

transactions

and

GAAP

adjustments

that

it

believes

are

not

necessarily

indicative

of

its

current

loan

origination

portfolio

and

operations.

Although

according

to

its

management

agreement

BXMT

calculates

the

incentive

and

base

management

fees

due

to

its

Manager

using

Core

Earnings

before

incentive

fees

expense,

BXMT

reports

Core

Earnings

after

incentive

fees

expense,

as

BXMT

believes

this

is

a

more

meaningful

presentation

of

the

economic

performance

of

its

class

A

common

stock.

Core

Earnings

is

defined

as

GAAP

net

income

(loss),

including

realized

gains

and

losses

not

otherwise

included

in

GAAP

net

income

(loss),

and

excluding

(i)

net

income

(loss)

attributable

to

the

CT

Legacy

Portfolio,

(ii)

non-cash

equity

compensation

expense,

(iii)

depreciation

and

amortization,

(iv)

unrealized

gains

(losses),

and

(v)

certain

non-cash

items.

Core

Earnings

may

also

be

adjusted

from

time

to

time

to

exclude

one-time

events

pursuant

to

changes

in

GAAP

and

certain

other

non-cash

charges

as

determined

by

BXMT’s

manager,

subject

to

approval

by

a

majority

of

its

independent

directors.

Core

Earnings

does

not

represent

net

income

or

cash

generated

from

operating

activities

and

should

not

be

considered

as

an

alternative

to

GAAP

net

income,

or

an

indication

of

BXMT’s

GAAP

cash

flows

from

operations,

a

measure

of

BXMT’s

liquidity,

or

an

indication

of

funds

available

for

its

cash

needs.

In

addition,

BXMT’s

methodology

for

calculating

Core

Earnings

may

differ

from

the

methodologies

employed

by

other

companies

to

calculate

the

same

or

similar

supplemental

performance

measures,

and

accordingly,

its

reported

Core

Earnings

may

not

be

comparable

to

the

Core

Earnings

reported

by

other

companies.

Non-Consolidated

Senior

Interests:

Senior

interests

in

loans

originated

and

syndicated

to

third

parties.

These

non-recourse

loan

participations,

which

are

excluded

from

the

GAAP

balance

sheet,

constitute

additional

financing

capacity

and

are

included

in

discussions

of

the

loan

portfolio.

Earnings

Sensitivity

to

LIBOR:

Reflects

the

impact

on

net

income,

net

of

incentive

fees,

assuming

no

changes

in

credit

spreads,

portfolio

composition,

or

asset

performance.

Assumes

no

change

in

general

and

administrative

expenses,

management

fees,

or

other

non-interest

expenses

relative

to

those

incurred

for

the

quarter

ended

March

31,

2019.

Blackstone Mortgage Trust

16

Forward-Looking Statements

This

presentation

may

contain

forward-looking

statements

within

the

meaning

of

Section

27A

of

the

Securities

Act

of

1933,

as

amended,

and

Section

21E

of

the

Securities

Exchange

Act

of

1934,

as

amended,

which

reflect

BXMT’s

current

views

with

respect

to,

among

other

things,

its

operations

and

financial

performance.

You

can

identify

these

forward-looking

statements

by

the

use

of

words

such

as

“outlook,”

“indicator,”

“believes,”

“expects,”

“potential,”

“continues,”

“may,”

“will,”

“should,”

“seeks,”

“predicts,”

“intends,”

“plans,”

“estimates,”

“anticipates”

or

the

negative

version

of

these

words

or

other

comparable

words.

Such

forward-

looking

statements

are

subject

to

various

risks

and

uncertainties.

Accordingly,

there

are

or

will

be

important

factors

that

could

cause

actual

outcomes

or

results

to

differ

materially

from

those

indicated

in

these

statements.

BXMT

believes

these

factors

include

but

are

not

limited

to

those

described

under

the

section

entitled

“Risk

Factors”

in

its

Annual

Report

on

Form

10-K

for

the

fiscal

year

ended

December

31,

2018,

as

such

factors

may

be

updated

from

time

to

time

in

its

periodic

filings

with

the

Securities

and

Exchange

Commission

(“SEC”)

which

are

accessible

on

the

SEC’s

website

at

www.sec.gov.

These

factors

should

not

be

construed

as

exhaustive

and

should

be

read

in

conjunction

with

the

other

cautionary

statements

that

are

included

in

this

presentation

and

in

the

filings.

BXMT

assumes

no

obligation

to

update

or

supplement

forward-looking

statements

that

become

untrue

because

of

subsequent

events

or

circumstances.