UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM                      TO                     

Commission File Number: 001-14788

Blackstone Mortgage Trust, Inc.

(Exact name of Registrant as specified in its charter)

Maryland	94-6181186
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

345 Park Avenue, 24th Floor

New York, New York 10154

(Address of principal executive offices)(Zip Code)

(212) 655-0220

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.01 per share	BXMT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		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.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

The number of the registrant’s shares of class A common stock, par value $0.01 per share, outstanding as of October 20, 2021 was 157,080,951.

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS		3
	Consolidated Financial Statements (Unaudited):
	Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020		3
	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2021 and 2020	4
	Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2021 and 2020	5
	Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2021 and 2020, June 30, 2021 and 2020, and September 30, 2021 and 2020	6
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020		8
	Notes to Consolidated Financial Statements	10
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	51
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	80
ITEM 4.	CONTROLS AND PROCEDURES		83
PART II.	OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS		84
ITEM 1A.	RISK FACTORS		84
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	84
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES		84
ITEM 4.	MINE SAFETY DISCLOSURES		84
ITEM 5.	OTHER INFORMATION		84
ITEM 6.	EXHIBITS		85
SIGNATURES			86

TABLE OF CONTENTS

Website Disclosure

We use our website (www.blackstonemortgagetrust.com) as a channel of distribution of company information. The information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in addition to following our press releases, Securities and Exchange Commission, or SEC, filings and public conference calls, and webcasts. In addition, you may automatically receive email alerts and other information about Blackstone Mortgage Trust when you enroll your email address by visiting the “Contact Us & E-mail Alerts” section of our website at http://ir.blackstonemortgagetrust.com. The contents of our website and any alerts are not, however, a part of this report.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Blackstone Mortgage Trust, Inc.

Consolidated Balance Sheets (Unaudited)

(in thousands, except share data)

	September 30,			December 31,
	2021			2020
Assets
Cash and cash equivalents	$	211,180		$	289,970
Loans receivable		20,406,466			16,572,715
Current expected credit loss reserve		(130,388	)		(173,549	)
Loans receivable, net		20,276,078			16,399,166
Other assets		218,614			269,819
Total Assets	$	20,705,872		$	16,958,955
Liabilities and Equity
Secured debt, net	$	11,170,330		$	7,880,536
Securitized debt obligations, net		2,836,049			2,922,499
Asset-specific debt, net		320,895			391,269
Term loans, net		1,329,637			1,041,704
Convertible notes, net		618,985			616,389
Other liabilities		159,424			202,327
Total Liabilities		16,435,320			13,054,724
Commitments and contingencies		—			—
Equity
Class A common stock, $0.01 par value, 400,000,000 shares authorized, 157,015,689 and 146,780,031 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively		1,570			1,468
Additional paid-in capital		5,039,384			4,702,713
Accumulated other comprehensive income		9,874			11,170
Accumulated deficit		(814,278	)		(829,284	)
Total Blackstone Mortgage Trust, Inc. stockholders’ equity		4,236,550			3,886,067
Non-controlling interests		34,002			18,164
Total Equity		4,270,552			3,904,231
Total Liabilities and Equity	$	20,705,872		$	16,958,955

Note: The consolidated balance sheets as of September 30, 2021 and December 31, 2020 include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of each respective VIE, and liabilities of consolidated VIEs for which creditors do not have recourse to Blackstone Mortgage Trust, Inc. As of September 30, 2021 and December 31, 2020, assets of the consolidated VIEs totaled $3.5 billion and $3.6 billion, respectively, and liabilities of the consolidated VIEs totaled $2.8 billion and $2.9 billion, respectively. Refer to Note 16 for additional discussion of the VIEs.

See accompanying notes to consolidated financial statements.

3

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Income from loans and other investments
Interest and related income	$	200,114		$	193,939		$	583,941		$	590,797
Less: Interest and related expenses		82,690			78,978			243,413			268,070
Income from loans and other investments, net		117,424			114,961			340,528			322,727
Other expenses
Management and incentive fees		19,342			18,985			60,094			58,758
General and administrative expenses		10,841			11,242			32,108			34,320
Total other expenses		30,183			30,227			92,202			93,078
(Increase) decrease in current expected credit loss reserve		(2,767	)		6,055			49,432			(173,466	)
Income before income taxes		84,474			90,789			297,758			56,183
Income tax provision		70			20			346			192
Net income		84,404			90,769			297,412			55,991
Net income attributable to non-controlling interests		(647	)		(909	)		(2,158	)		(1,937	)
Net income attributable to Blackstone Mortgage Trust, Inc.	$	83,757		$	89,860		$	295,254		$	54,054
Net income per share of common stock basic and diluted	$	0.56		$	0.61		$	2.00		$	0.39
Weighted-average shares of common stock outstanding, basic and diluted		149,214,819			146,484,651			147,971,737			140,157,620

See accompanying notes to consolidated financial statements.

4

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Net income	$	84,404		$	90,769		$	297,412		$	55,991
Other comprehensive income
Unrealized (loss) gain on foreign currency translation		(46,952	)		62,656			(66,356	)		14,488
Realized and unrealized gain (loss) on derivative financial instruments		46,083			(61,936	)		65,059			11,390
Other comprehensive (loss) income		(869	)		720			(1,297	)		25,878
Comprehensive income		83,535			91,489			296,115			81,869
Comprehensive income attributable to non-controlling interests		(647	)		(909	)		(2,158	)		(1,937	)
Comprehensive income attributable to Blackstone Mortgage Trust, Inc.	$	82,888		$	90,580		$	293,957		$	79,932

See accompanying notes to consolidated financial statements.

5

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Changes in Equity (Unaudited)

(in thousands)

	Blackstone Mortgage Trust, Inc.
	Class A		Additional		Accumulated Other
	Common		Paid-In		Comprehensive			Accumulated			Stockholders’			Non-controlling			Total
	Stock		Capital		Income			Deficit			Equity			Interests			Equity
Balance at December 31, 2020	$	1,468	$	4,702,713	$	11,170		$	(829,284	)	$	3,886,067		$	18,164		$	3,904,231
Shares of class A common stock issued, net		2		—		—			—			2			—			2
Restricted class A common stock earned		—		7,958		—			—			7,958			—			7,958
Dividends reinvested		—		204		—			—			204			—			204
Deferred directors’ compensation		—		125		—			—			125			—			125
Other comprehensive income		—		—		114			—			114			—			114
Net income		—		—		—			79,902			79,902			638			80,540
Dividends declared on common stock and deferred stock units, $0.62 per share		—		—		—			(91,349	)		(91,349	)		—			(91,349	)
Contributions from non-controlling interests		—		—		—			—			—			13,448			13,448
Distributions to non-controlling interests		—		—		—			—			—			(11,180	)		(11,180	)
Balance at March 31, 2021	$	1,470	$	4,711,000	$	11,284		$	(840,731	)	$	3,883,023		$	21,070		$	3,904,093
Restricted class A common stock earned		—		7,895		—			—			7,895			—			7,895
Dividends reinvested		—		211		—			—			211			—			211
Deferred directors’ compensation		—		125		—			—			125			—			125
Other comprehensive loss		—		—		(541	)		—			(541	)		—			(541	)
Net income		—		—		—			131,595			131,595			873			132,468
Dividends declared on common stock and deferred stock units, $0.62 per share		—		—		—			(91,347	)		(91,347	)		—			(91,347	)
Contributions from non-controlling interests		—		—		—			—			—			14,745			14,745
Distributions to non-controlling interests		—		—		—			—			—			(10,694	)		(10,694	)
Balance at June 30, 2021	$	1,470	$	4,719,231	$	10,743		$	(800,483	)	$	3,930,961		$	25,994		$	3,956,955
Shares of class A common stock issued, net		100		311,855		—			—			311,955			—			311,955
Restricted class A common stock earned		—		7,907		—			—			7,907			—			7,907
Dividends reinvested		—		218		—			—			218			—			218
Deferred directors’ compensation		—		173		—			—			173			—			173
Other comprehensive loss		—		—		(869	)		—			(869	)		—			(869	)
Net income		—		—		—			83,757			83,757			647			84,404
Dividends declared on common stock and deferred stock units, $0.62 per share		—		—		—			(97,552	)		(97,552	)		—			(97,552	)
Contributions from non-controlling interests		—		—		—			—			—			19,068			19,068
Distributions to non-controlling interests		—		—		—			—			—			(11,707	)		(11,707	)
Balance at September 30, 2021	$	1,570	$	5,039,384	$	9,874		$	(814,278	)	$	4,236,550		$	34,002		$	4,270,552

See accompanying notes to consolidated financial statements.

6

Blackstone Mortgage Trust, Inc.

Consolidated Statements of Changes in Equity (Unaudited)

(in thousands)

	Blackstone Mortgage Trust, Inc.
	Class A		Additional		Accumulated Other
	Common		Paid-In		Comprehensive			Accumulated			Stockholders’			Non-controlling			Total
	Stock		Capital		(Loss) Income			Deficit			Equity			Interests			Equity
Balance at December 31, 2019	$	1,350	$	4,370,014	$	(16,233	)	$	(592,548	)	$	3,762,583		$	22,098		$	3,784,681
Adoption of ASU 2016-13, see Note 2		—		—		—			(17,565	)		(17,565	)		(85	)		(17,650	)
Shares of class A common stock issued, net		4		—		—			—			4			—			4
Restricted class A common stock earned		—		8,550		—			—			8,550			—			8,550
Dividends reinvested		—		162		—			12			174			—			174
Deferred directors’ compensation		—		125		—			—			125			—			125
Other comprehensive income		—		—		34,481			—			34,481			—			34,481
Net loss		—		—		—			(53,350	)		(53,350	)		67			(53,283	)
Dividends declared on common stock and deferred stock units, $0.62 per share		—		—		—			(84,082	)		(84,082	)		—			(84,082	)
Contributions from non-controlling interests		—		—		—			—			—			8,108			8,108
Distributions to non-controlling interests		—		—		—			—			—			(6,681	)		(6,681	)
Balance at March 31, 2020	$	1,354	$	4,378,851	$	18,248		$	(747,533	)	$	3,650,920		$	23,507		$	3,674,427
Shares of class A common stock issued, net		108		297,491		—			—			297,599			—			297,599
Restricted class A common stock earned		—		8,527		—			—			8,527			—			8,527
Dividends reinvested		—		165		—			13			178			—			178
Deferred directors’ compensation		—		125		—			—			125			—			125
Other comprehensive loss		—		—		(9,323	)		—			(9,323	)		—			(9,323	)
Net income		—		—		—			17,544			17,544			961			18,505
Dividends declared on common stock and deferred stock units, $0.62 per share		—		—		—			(90,807	)		(90,807	)		—			(90,807	)
Distributions to non-controlling interests		—		—		—			—			—			(3,447	)		(3,447	)
Balance at June 30, 2020	$	1,462	$	4,685,159	$	8,925		$	(820,783	)	$	3,874,763		$	21,021		$	3,895,784
Restricted class A common stock earned		—		8,524		—			—			8,524			—			8,524
Dividends reinvested		—		174		—			14			188			—			188
Deferred directors’ compensation		—		125		—			—			125			—			125
Other comprehensive loss		—		—		720			—			720			—			720
Net income		—		—		—			89,860			89,860			909			90,769
Dividends declared on common stock and deferred stock units, $0.62 per share		—		—		—			(90,816	)		(90,816	)		—			(90,816	)
Contributions from non-controlling interests		—		—		—			—			—			323			323
Distributions to non-controlling interests		—		—		—			—			—			(1,665	)		(1,665	)