Blackstone Mortgage Trust : 3Q 2020 Company Presentation

Blackstone Mortgage Trust, Inc.

3Q 2020 Earnings Release & Company Supplemental

NOVEMBER 2020

FORWARD-LOOKING STATEMENTS AND OTHER MATTERS

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 Blackstone Mortgage Trust, Inc.'s ("BXMT") current views with respect to, among other things, BXMT's operations and financial performance and the impact of the COVID-19 pandemic. You can identify these forward-looking statements by the use of words such as "outlook," "objective," "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, 2019 and its Quarterly Report on Form 10- Q for the fiscal quarter ended March 31, 2020, as such factors may be further 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.

Slides 18-19 of this presentation reference numerical data relating to Blackstone that includes activities of Blackstone Real Estate's public and private portfolio companies, unless otherwise noted.

Information included in this presentation is as of or for the period ended September 30, 2020, unless otherwise noted.

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BXMT HIGHLIGHTS

• BXMT continued to deliver strong earnings in 3Q, generating $0.61 EPS and $0.63 Core EPS(1)
• $18.1 billion(2) senior loan portfolio backed by high-quality assets and well-capitalized sponsors

Stable Earnings

Stable Credit Performance

Stable Balance Sheet

102%		99%		$1.2B
dividend		interest		total
coverage(3)		collection		liquidity(4)
Consistent earnings through a		Senior mortgage loan portfolio		Match-funded liability structure with
historically volatile period		continues to outperform		substantial liquidity

1. See Appendix for a definition and reconciliation to GAAP net income.
2. Includes $716 million of Non-Consolidated Senior Interests and investment exposure to the $808 million 2018 Single Asset Securitization through an $79 million subordinate interest.
3. Reflects ratio of Core Earnings to dividends declared for the three months ended September 30, 2020.
4. Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit facilities.

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THIRD QUARTER 2020 RESULTS

Earnings

Portfolio

Capitalization

• 3Q GAAP earnings per share of $0.61 and Core Earnings(1) per share of $0.63; book value per share of $26.51
• Generated strong earnings while maintaining elevated liquidity levels during the quarter; total liquidity at quarter end of $1.2 billion(2)
• Earnings and book value reflect $0.04 per share decrease in 3Q CECL reserve from ordinary course loan portfolio migration; no specific CECL reserves recorded in 3Q
• $18.1 billion(3) senior loan portfolio secured by institutional quality real estate in major markets, with a weighted average origination LTV(3)(4) of 64%
• 99% interest collection in 3Q reflects the quality of our portfolio and sponsor commitment to our collateral
• $484 million of loan repayments and $342 million of loan fundings
• Stable corporate debt structure with no near-term maturities
• Match-fundedasset level financing with no capital markets mark-to-market an array of bilateral credit facilities, securitizations and asset-specific syndications
• Priced a $1.0 billion CRE CLO post-quarter end, increasing the non-recourse component of our balance sheet and further diversifying financing sources

1. See Appendix for a definition and reconciliation to GAAP net income.
2. Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit facilities.
3. Includes $716 million of Non-Consolidated Senior Interests and investment exposure to the $808 million 2018 Single Asset Securitization through a $79 million subordinate interest.
4. Reflects weighted average LTV as of the date investments were originated or acquired by BXMT.

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EARNINGS

• 3Q results driven by continued strong credit performance and earnings power of the loan portfolio
• BXMT earnings remained steady through a period of economic dislocation and a significant decline in LIBOR

Strong Results Through Volatile Period(1)

$0.64	$0.62	$0.63	$0.61
			3Q GAAP Earnings
			per share
1.40%

			0.35%				$0.63
						3Q Core Earnings
						0.16%	per share
1Q '20		2Q '20		3Q '20
		Core Earnings per Share		Average USD LIBOR

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

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PORTFOLIO

• $18.1 billion(1) senior loan portfolio comprising 124 loans; large average loan balance of $146 million reflects significant equity investment from our institutional sponsors
• $342 million of loan fundings under previously originated loans funded through loan repayments of $484 million

Major Market Focus(1)(2)

Collateral Diversification(1)

MN
1%	NY
	23%

Condo 1%

Self-Storage 2% Other

5%

Retail 3%

NV
1%	IL			DC, 2%
CA	4%
17%		VA, 4%
		TN, 1%

Industrial 5%

Multi 11%

Office 56%

HI, 3%		GA
TX	3%
	3%
		FL
		5%
IR, 7%

	UK,11%
BE, 1%	NL, 1%
	DEU, 1%
	AU, 1%
ES, 7%	IT, 1%

$18.1B

portfolio

Hospitality 17%

1. Includes $716 million of Non-Consolidated Senior Interests and investment exposure to the $808 million 2018 Single Asset Securitization through a $79 million subordinate interest.
2. States comprising less than 1% of total loan portfolio are excluded.

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PORTFOLIO

• Loan portfolio continues to perform with minimal interest deferral
• 80% of loans performing on pre-COVID terms; COVID-related modifications have generally involved significant new financial commitments from sponsors

COVID-Related Loan Modifications(1)

		Cash-in(2)
No Modifications	COVID-Related	15%
80%	20%

Other

5%

• Well-capitalizedsponsors supporting assets through COVID period
• New cash equity contributed in exchange for more time to complete business plans
• Minor reserve deferrals or reallocations
• Extension of business plan milestones

1. Includes loans modified during the six months ended September 30, 2020 as a result of COVID-19; excludes ordinary course loan modifications during the period.
2. Cash-inmodifications includes loan modifications involving an additional financial commitment from sponsors in the form of loan paydowns, guaranties, additional equity, or other, similar provisions.

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CAPITALIZATION

• Maintained substantial liquidity of $1.2 billion(1) at quarter end and a consistent debt-to-equity ratio(2) of 2.6x
• Majority of corporate debt has over 5 years of remaining term, with no maturities prior to 2022

Debt-to-Equity Ratio(2)	Corporate Debt(3)
	(outstanding balance; $ in millions)

3.0x

$1,009

2.8x

2.6x 2.6x

$403

$220

12/31/19	3/31/20	6/30/20	9/30/20	2020	2021	2022	2023	2024	2025	2026
							Convertible Notes		Term	Loan B

1. Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit facilities.
2. Represents (i) total outstanding secured debt agreements, secured term loans and convertible notes, less cash, to (ii) total equity.
3. Excludes $11 million per annum of scheduled amortization payments under the Term Loan B.

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Appendix

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APPENDIX

Operating Results

($ in millions)

	GAAP Net		Core
	Income	Adjustments	Earnings
Interest income	$193.9	$ -	$193.9
Interest expense	(79.0)	(0.2)	(79.2)
Management and incentive fees	(19.0)	-	(19.0)
General and administrative	(2.6)	-	(2.6)
expenses and taxes
Decrease in current expected	6.1	(6.1)	-
credit loss reserve
Non-cash compensation	(8.6)	8.6	-
Realized hedging and	-	-	-
foreign currency income, net(1)
Net income attributable to non-	(0.9)	0.1	(0.8)
controlling interests
Total	$89.9	$2.4	$92.3
$0.61	$0.63
net income per share	core earnings per share

Net Fundings

($ in billions)
$18.3	$0.3
		$18.1
		$0.5
2Q '20 Loans	Fundings	Repayments	3Q '20 Loans
Outstanding(2)(3)			Outstanding(4)

1. Primarily represents realized gains on the repatriation of unhedged foreign currency. These amounts are not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.
2. Includes the impact of changes in foreign currency rates and related hedges for non-USD investments of $0.3 billion for the three months ending September 30, 2020.
3. Includes $740 million of Non-Consolidated Senior Interests and investment exposure to the $857 million 2018 Single Asset Securitization through an $82 million subordinate interest.
4. Includes $716 million of Non-Consolidated Senior Interests and investment exposure to the $808 million 2018 Single Asset Securitization through a $79 million subordinate interest.

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APPENDIX

Portfolio Details(1)

($ in millions)

Origination

Total

Principal

Net Book

Cash

All-in

Maximum

Property

Loan Per

Origination

Loan Type

Date (2)

Loan (3)

Balance (3)

Value

Coupon

Yield

Maturity (4)

Location

Type

SQFT / Unit / Key

LTV (2)

Loan 1

Senior loan

8/14/2019

$ 1,264

$ 1,264

$ 1,256

L + 2.50 %

L + 2.83 %

12/23/2024

Dublin - IE

Office

$460 / sqft

74 %

Loan 2

Senior loan

3/22/2018

995

995

992

L + 3.15 %

L + 3.37 %

3/15/2023

Diversified - Spain

Mixed-Use

n/a

71 %

Loan 3

Senior loan

11/25/2019

724

646

646

L + 2.30 %

L + 3.18 %

12/9/2024

New York

Office

$925 / sqft

65 %

Loan 4

Senior loan

5/11/2017

647

616

615

L + 3.40 %

L + 3.57 %

6/10/2023

Washington DC

Office

$302 / sqft

62 %

Loan 5

Senior loan

8/22/2018

363

357

356

L + 3.15 %

L + 3.49 %

8/9/2023

Maui

Hospitality

$463,671 /

key

61 %

Loan 6

Senior loan

10/23/2018

352

347

347

L + 3.40 %

L + 3.67 %

1/23/2022

New York

Mixed-Use

$588 / sqft

65 %

Loan 7

Senior loan

4/11/2018

355

345

344

L + 2.85 %

L + 3.10 %

5/1/2023

New York

Office

$437 / sqft

71 %

Loan 8

Senior loan (3)

8/6/2015

315

315

58

5.75 %

5.81 %

10/29/2022

Diversified - EUR

Other

n/a

71 %

Loan 9

Senior loan

1/11/2019

310

310

307

L + 4.35 %

L + 4.70 %

1/11/2026

Diversified - UK

Other

$306 / sqft

74 %

Loan 10

Senior loan

11/30/2018

286

286

285

n/m (5)

n/m (5)

8/9/2025

New York

Hospitality

$306,870 /

key

73 %

Loan 11

Senior loan

2/27/2020

300

282

279

L + 2.70 %

L + 3.03 %

3/9/2025

New York

Mixed-Use

$884 / sqft

59 %

Loan 12

Senior loan

7/31/2018

280

278

277

L + 3.10 %

L + 3.52 %

8/9/2022

San Francisco

Office

$701 / sqft

50 %

Loan 13

Senior loan (3)

8/7/2019

746

270

52

L + 3.12 %

L + 3.55 %

9/9/2025

Los Angeles

Office

$183 / sqft

59 %

Loan 14

Senior loan

12/11/2018

310

257

255

L + 2.55 %

L + 2.96 %

12/9/2023

Chicago

Office

$216 / sqft

78 %

Loan 15

Senior loan

11/30/2018

254

248

247

L + 2.80 %

L + 3.17 %

12/9/2023

San Francisco

Hospitality

$364,513 /

key

73 %

Loans 16 - 123

Senior loan (3)

Various

13,973

10,453

10,151

L + 3.31 (6)

L + 3.65 (6)

Various

Various

Various

Various

62 %

CECL reserve

(177)

Total/Wtd. avg.

$ 21,475

$ 17,270

$ 16,292

L + 3.22 (6)

L + 3.58 (6)

3.3 yrs

65 %

1. Portfolio excludes our $79 million subordinate interest in the $808 million 2018 Single Asset Securitization.
2. Date loan was originated or acquired by us, and the LTV as of such date. Origination dates are subsequently updated to reflect material loan modifications.
3. 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 September 30, 2020, five loans in the portfolio have been financed with an aggregate $716 million of Non-Consolidated Senior Interests, which are included in the table above.
4. Maximum maturity assumes all extension options are exercised; however, floating rate loans generally may be repaid prior to their final maturity without penalty.
5. This loan is accounted for under the cost-recovery method.
6. Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for weighted-average calculation. Excludes loans under the cost-recovery method.

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APPENDIX

Consolidated Balance Sheets

($ in thousands, except per share data)

		September 30, 2020		December 31, 2019
Assets
Cash and cash equivalents	$427,028	$150,090
Loans receivable	16,468,703	16,164,801
Current expected credit loss reserve		(177,026)		-
Loans receivable, net	16,291,677	16,164,801
Other assets	158,099	236,980
Total assets	$16,876,804	$16,551,871
Liabilities and equity
Secured debt agreements, net	$8,973,810	$10,054,930
Securitized debt obligations, net	2,168,083	1,187,084
Secured term loans, net	1,043,441	736,142
Convertible notes, net	615,541	613,071
Other liabilities		171,977		175,963
Total liabilities	12,972,852	12,767,190
Commitments and contingencies	-		-
Equity
Class A common stock, $0.01 par value	1,462	1,350
Additional paid-in capital	4,693,982	4,370,014
Accumulated other comprehensive income (loss)	9,645	(16,233)
Accumulated deficit		(821,725)		(592,548)
Total Blackstone Mortgage Trust, Inc. stockholdersʼ equity	3,883,364	3,762,583
Non-controlling interests		20,588		22,098
Total equity	3,903,952	3,784,681
Total liabilities and equity	$16,876,804	$16,551,871

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APPENDIX

Consolidated Statements of Operations

($ in thousands, except per share data)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Income from loans and other investments
Interest and related income	$193,939	$213,873	$590,797	$662,001
Less: Interest and related expenses	78,978		111,957		268,070		347,536
Income from loans and other investments, net	114,961	101,916	322,727	314,465
Other expenses
Management and incentive fees	18,985	17,502	58,758	58,276
General and administrative expenses	11,242		9,741		34,320		28,951
Total other expenses	30,227	27,243	93,078	87,227
Decrease (increase) in current expected credit loss reserve	6,055		-		(173,466)		-
Income before income taxes	90,789	74,673	56,183	227,238
Income tax provision (benefit)	20	(721)	192	(573)
Net income	$90,769	$75,394	$55,991	$227,811
Net income attributable to non-controlling interests	(909)	(497)	(1,937)	(1,176)
Net income attributable to Blackstone Mortgage Trust, Inc.	$89,860	$74,897	$54,054	$226,635
Per share information (basic and diluted)
Weighted-average shares of common stock outstanding	146,484,651	134,536,683	140,157,620	128,485,701
Net income per share of common stock	$0.61	$0.56	$0.39	$1.76

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APPENDIX

Per Share Calculations

(in thousands, except per share data)

Core Earnings

Reconciliation

Book Value

per Share

			Three Months Ended
			September 30, 2020	June 30, 2020
	Net income(1)	$89,860	$17,544
	(Decrease) increase in current expected credit loss reserve	(6,055)	56,819
	Non-cash compensation expense	8,649	8,652
	Realized hedging and foreign currency (loss) income, net(2)	(7)	1,810
	Other items	(240)	210
	Adjustments attributable to non-controlling interests, net	143	139
	Core Earnings	$92,350	$85,174
	Weighted-average shares outstanding, basic and diluted	146,485	138,299
	Core Earnings per share, basic and diluted	$0.63	$0.62
			Three Months Ended
			September 30, 2020	June 30, 2020
	Stockholders' equity	$3,883,364	$3,874,763
	Shares
	Class A common stock	146,197	146,197
	Deferred stock units		294	281
	Total outstanding	146,491	146,478
	Book value per share	$26.51	$26.45

			Three Months Ended
Earnings			September 30, 2020	June 30, 2020
	Net income(1)	$89,860	$17,544
per Share
	Weighted-average shares outstanding, basic and diluted	146,485	138,299
		Earnings per share, basic and diluted	$0.61	$0.13

1. Represents net income attributable to Blackstone Mortgage Trust, Inc.
2. Represents realized gains on the repatriation of unhedged foreign currency. These amounts were not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.

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APPENDIX

Reconciliation of Net Income to Core Earnings

(in thousands, except per share data)

				Three Months Ended,
				Sept 30,		June 30,	Mar 31,
			2020	2020	2020
	Net income (loss)(1)	89,860	17,544	(53,350)
	(Decrease) increase in current expected credit loss reserve	(6,055)	56,819	122,702
	Non-cash compensation expense	8,649	8,652	8,678
	Realized hedging and foreign currency (loss) income, net(2)	(7)	1,810	8,467
	Other items		(240)		210	596
	Adjustments attributable to non-controlling interests, net		143	139	(561)
	Core Earnings	92,350	85,174	86,532
	Weighted-average shares outstanding, basic and diluted	146,485	138,299	135,619
	Net income (loss) per share, basic and diluted	$0.61	$0.13	($0.39)
	Core Earnings per share, basic and diluted	$0.63	$0.62	$0.64

1. Represents net (loss) income attributable to Blackstone Mortgage Trust, Inc.
2. For the three months ended September 30, 2020 and June 30, 2020, represents realized gains on the repatriation of unhedged foreign currency. For the three months ended March 31, 2020, 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 were not included in GAAP net income, but rather as a component of Other Comprehensive Income in our consolidated financial statements.

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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 a non-GAAP measure, which we define as GAAP net income (loss), including realized gains and losses not otherwise included in GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), (iv) net income (loss) attributable to our legacy portfolio, 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 our Manager, subject to approval by a majority of our independent directors. During the nine months ended September 30, 2020, we recorded a $173.5 million increase in current expected credit loss reserve, or CECL reserve, which has been excluded from Core Earnings consistent with other unrealized gains (losses) pursuant to our existing policy for reporting Core Earnings and the terms of the management agreement between our Manager and us.

We believe that Core Earnings provides meaningful information to consider in addition to our net income and cash flow from operating activities determined in accordance with GAAP. This adjusted measure helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations. Although, according to the management agreement between our Manager and us, or our Management Agreement, we calculate the incentive and base management fees due to our Manager using Core Earnings before our incentive fee expense, we report Core Earnings after incentive fee expense, as we believe this is a more meaningful presentation of the economic performance of our Class A common stock.

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 our GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs. In addition, our 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, our reported Core Earnings may not be comparable to the Core Earnings reported by other companies.

Non-ConsolidatedSenior 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.

Non-ConsolidatedSecuritized Debt Obligations: Senior securitized debt held by third-parties in the 2018 Single Asset Securitization. These non-recourse securitized debt obligations, which are excluded from the GAAP balance sheet, constitute additional financing capacity and are included in discussions of the loan portfolio.

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Company Supplemental

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BLACKSTONE MORTGAGE TRUST OVERVIEW

• Blackstone Mortgage Trust, Inc. (NYSE: BXMT) is a best-in-class commercial mortgage REIT that originates senior mortgage loans on institutional quality real estate assets in North America, Europe and Australia

Superior Sponsorship

Affiliation with BX, largest real estate private equity business in the world

Senior Lending Focused

Attractive current income, conservative credit and efficient leverage to drive returns

Large-Scale Portfolio

Stable Balance Sheet

Institutional quality real estate located in major markets

Long duration liabilities, with no capital markets mark-to-market

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BXMT POST-COVID EXECUTION

• BXMT has maintained strong, consistent credit performance and earnings power through the COVID period, while actively enhancing balance sheet liquidity and market leading capital structure

Credit

Liquidity

Capital Markets

Earnings

99%		$1.2B		$1.4B		102%
interest		total		new			dividend
collection		liquidity(1)		capital			coverage(2)
Interest collection since March		Maintained ample liquidity for		Raised new capital through
			Stable income stream against
reflects the stability of the		offense and defense		CLO, Term Loan B and equity		volatile backdrop
portfolio				markets

1. Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit facilities as of September 30, 2020.
2. Reflects ratio of Core Earnings to dividends declared for the nine months ended September 30, 2020.

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SUPERIOR REAL ESTATE PLATFORM

• As one of the largest owners of real estate in every sector and geography, Blackstone's unparalleled reach across the real estate market drives proprietary insight which enables best-in-class investment performance
• BXMT's underwriting and credit process is fully integrated with the Blackstone platform, resulting in highly- informed investment decisions

Current Holdings(1)	Portfolio Companies

Office 223M

square feet

Industrial 872M

square feet

Hotel 116k

owned keys

Residential 255k

units

Note: In addition to wholly-owned assets, figures include leased assets, collateral, assets managed through stakes in publicly-traded companies and assets owned through joint-ventures (reflected at 100%), as applicable. Excludes other assets. See "Important Disclosure Information".

(1) As of September 30, 2020. Numerical data relating to Blackstone includes activities of Blackstone Real Estate's public & private portfolio companies (unless otherwise noted).

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SUPERIOR REAL ESTATE PLATFORM

• 550+ people in 11 offices, across one fully integrated real estate platform

Blackstone Advantage	Constant Communication
Global Business	Weekly
	594 professionals		Partners' Meeting
	11 global offices		Global ICMs
			Investment Review Committees

Scale Capital	Quarterly
	$174 billion RE AUM		Board Meetings
	$29 billion raised in LTM		Portfolio Asset Review

Long View	Annual
	Long term capital commitments	 Regional Strategy Session
	Never a forced seller

Integrated Perspective

1

global real estate platform

1

investment process- same people, same process

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SUPERIOR REAL ESTATE PLATFORM

• Blackstone's unique investment process is complemented by fully-integrated corporate infrastructure

BREDS Investment Committee	BXMT Officers
Kenneth Caplan		Jonathan Pollack		Katie Keenan		Douglas Armer
BX Global Co-Head of Real Estate,		Global Head of BREDS,		President,		EVP Capital Markets, Treasurer,
Senior Managing Director		Senior Managing Director		Managing Director		Managing Director
Kathleen McCarthy		Tim Johnson		Tony Marone		Thomas Ruffing
BX Global Co-Head of Real Estate,		Global Head of Originations,		Chief Financial Officer,		Head of Loan Asset Management,
Senior Managing Director		Senior Managing Director		Managing Director		Managing Director
Nadeem Meghji		Michael Wiebolt		Weston Tucker		Leon Volchyok
Head of Real Estate Americas,		Head of BREDS Liquid Strategies,		Head of Investor Relations,		Head of Legal & Compliance and Secretary,
Senior Managing Director		Senior Managing Director		Senior Managing Director		Managing Director
Stephen Plavin		Rob Harper
Chief Executive Officer of BXMT,		Head of BX Real Estate US Asset Management,
Senior Managing Director		Senior Managing Director
Michael Nash
Executive Chairman of BXMT,
Senior Managing Director

Originations (U.S.)	Originations (Europe)		Capital Markets / AM / Finance
41 professionals	15 professionals		55 professionals
Michael Eglit		Michael Zerda		Nicholas Menzies
Managing Director		Managing Director		Capital Markets, Managing Director
Jimmy Yung		Michael Nagelberg		Rob Sitman
Managing Director		Managing Director		Asset Management, Managing Director

Austin Pena

Managing Director

J.T. Sizemore

Managing Director

Blackstone Mortgage Trust, Inc.

Blackstone | 21

TARGET INVESTMENTS

Loan Size	$50 million to $500+ million
	First mortgages on stabilized or transitional assets
Collateral
	All commercial property types
Property Type
	North America, Europe and Australia
Geographies
	Last dollar 50% to 75%
Loan to Value
	Libor + 3.00% and higher, scaled to risk
Rate
	3 to 5 years
Term
	Typically interest only
Amortization
	Typically 1.0% origination fee and 0.25% to 0.50% extension fees
Fees
	12 to 24 months of spread maintenance
Prepayment

Blackstone Mortgage Trust, Inc.

Blackstone | 22

SAMPLE TRANSACTION: WASHINGTON SQUARE

• $146 million floating rate, first mortgage loan secured by Washington Square in Minneapolis, MN
• • Three well-located, newly renovated class A office buildings and parking garage; 64% LTV and 85% occupied
  • Initial funding of $121 million with $25 million future funding for building improvements and leasing
• Blackstone offered a solution for a repeat borrower to refinance and fund remaining renovations

Washington

Square

Blackstone Mortgage Trust, Inc.

Blackstone | 23

SAMPLE TRANSACTION: CAMMEBY'S INDUSTRIAL PORTFOLIO

• $243 million floating rate, first mortgage loan secured by crossed infill industrial portfolio
• • Consists of fully-leased 37 building, 3.8mm SF portfolio located in Long Island, NY; 70% LTV and 91% occupied
  • Includes $24 million to finance the acquisition of portfolio add-ons and future capital improvements
• Stable cash flows and benefits from close proximity to thoroughfares and dense population centers

Cammeby's

Industrial

Blackstone Mortgage Trust, Inc.

Blackstone | 24

SAMPLE TRANSACTION: PASÉA HOTEL & SPA

• $133 million floating rate, first mortgage loan secured by Paséa Hotel & Spa
  - Newly-built250-key beachfront hotel located in Huntington Beach, CA; 59% LTV
• Premier asset in an irreplaceable location in a drive-to market, catering to transient demand

Paséa Hotel & Spa

Blackstone Mortgage Trust, Inc.

Blackstone | 25

SAMPLE TRANSACTION: FIVE ACRE SQUARE

• £112 million floating rate, first mortgage loan secured by Five Acre Square in London
  - Well-located 201k SF prime office building; 70% LTV with strong sponsorship
• Long-let,freehold asset with close proximity to amenities and transportation hubs

Five Acre Square

Blackstone Mortgage Trust, Inc.

Blackstone | 26

SAMPLE TRANSACTION: DUTCH MULTIFAMILY

• €107 million floating rate, first mortgage loan secured by a portfolio of residential and office assets
• • 819 residential units and 2 office buildings; 65% LTV and 98% occupied residential units
  • Initial funding of €87 million with €20 million future funding for additional building improvements
• Assets are well-located in city centers of four regional Dutch cities, within a ~1-hour commute from Amsterdam

Dutch Multifamily

Blackstone Mortgage Trust, Inc.

Blackstone | 27

BXMT RELATIVE VALUE

• Blackstone provides compelling relative value compared to other listed real estate products

Other Comm	Agency Resi	Equity
	mREITs		mREITs	REITs

Dividend Yield

Senior Loans

Floating Rate

Low Earnings Volatility

Note: The composition of the various categories of REITs being compared with BXMT, as well as the characteristics compared, reflect our current views as of the date appearing in this material only and are not based on any index or other established categorization.

Blackstone Mortgage Trust, Inc.

Blackstone | 28