Blackstone Mortgage Trust : SUMMARY HISTORICAL FINANCIAL AND OTHER DATA (Form 8-K)

SUMMARY HISTORICAL FINANCIAL AND OTHER DATA

The following table sets forth a summary of our consolidated historical financial and other data as of and for the periods presented. The summary historical financial information presented below for each of the three years in the period ended December 31, 2020 has been derived from our audited consolidated financial statements incorporated by reference in this Offering Memorandum. Our consolidated financial statements for each of the three years in the period ended December 31, 2020 have been audited by Deloitte & Touche LLP, an independent registered public accounting firm. The summary historical financial information presented below as of and for the six and twelve-month periods ended June 30, 2021 has been derived from our unaudited interim condensed consolidated financial statements incorporated by reference in this Offering Memorandum. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for such periods. The results of operations for the interim periods are not necessarily indicative of the results for the full year or any future period.

The following summary historical financial and other data should be read in conjunction with the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the related notes thereto in this Offering Memorandum.

		Twelve Months Ended June 30, 2021			Six Months Ended June 30,			Year Ended December 31,
(in thousands)		2021			2020			2020			2019			2018
CONSOLIDATED STATEMENT OF OPERATIONS
Income from loans and other investments
Interest and related income		$	766,618			$	383,827			$	396,857			$	779,648			$	882,679			$	756,109
Interest and related expenses			319,102				160,723				189,092				347,471				458,503				359,625
Income from loans and other investments, net			447,516				223,104				207,765				432,177				424,176				396,484
Other expenses
Management and incentive fees			78,895				40,752				39,773				77,916				78,435				74,834
General and administrative expenses			44,060				21,267				23,078				45,871				38,854				35,529
Total other expenses			122,955				62,019				62,851				123,787				117,289				110,363
Increase (decrease) in current expected credit loss reserve			64,067				52,199				(179,521	)			(167,653	)			-				-
Income (loss) before income taxes			388,628				213,284				(34,607	)			140,737				306,887				286,121
Income tax provision (benefit)			426				276				173				323				(506	)			308
Net income (loss)			388,202				213,008				(34,780	)			140,414				307,393				285,813
Net income attributable to non-controlling interests			(3,227	)			(1,511	)			(1,028	)			(2,744	)			(1,826	)			(735	)
Net income (loss) attributable to Blackstone Mortgage Trust, Inc.		$	384,975			$	211,497			$	(35,808	)		$	137,670			$	305,567			$	285,078

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		As of June 30,			As of December 31,
(in thousands)		2021			2020			2020			2019			2018
CONSOLIDATED BALANCE SHEETS
Assets
Cash and cash equivalents		$	289,552			$	1,259,836			$	289,970			$	150,090			$	105,662
Loans receivable			17,436,843				16,339,403				16,572,715				16,164,801				-
Current expected credit loss reserve			(128,945	)			(178,050	)			(173,549	)			-				-
Loans receivable, net			17,307,898				16,161,353				16,399,166				16,164,801				14,191,200
Other assets			304,297				241,934				269,819				236,980				170,513
Total Assets		$	17,901,747			$	17,663,123			$	16,958,955			$	16,551,871			$	14,467,375
Liabilities and Equity
Secured debt agreements, net		$	8,709,818			$	9,689,541			$	7,880,536			$	9,731,426			$	8,893,818
Loan participations sold, net			-				-				-				-				94,418
Securitized debt obligations, net			2,833,778				2,240,612				2,922,499				1,187,084				1,285,471
Asset-specific debt agreements, net			292,122				-				391,269				323,504				80,893
Secured term loans, net			1,332,130				1,045,163				1,041,704				736,142				-
Convertible notes, net			618,111				614,710				616,389				613,071				609,911
Other liabilities			158,833				177,313				202,327				175,963				128,212
Total Liabilities		$	13,944,792			$	13,767,339			$	13,054,724			$	12,767,190			$	11,092,768
Commitments and contingencies			-				-				-				-				-
Equity
Total Blackstone Mortgage Trust, Inc. stockholders' equity		$	3,930,961			$	3,874,763			$	3,886,067			$	3,762,583			$	3,364,124
Non-controlling interests			25,994				21,021				18,164				22,098				10,483
Total Equity		$	3,956,955			$	3,895,784			$	3,904,231			$	3,784,681			$	3,374,607
Total Liabilities and Equity		$	17,901,747			$	17,663,123			$	16,958,955			$	16,551,871			$	14,467,375

Note: The consolidated balance sheets 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. As of June 30, 2021, December 31, 2020, June 30, 2020, December 31, 2019 and December 31, 2018, assets of the consolidated VIEs totaled $3.5 billion, $3.6 billion, $2.7 billion, $1.4 billion and $1.5 billion, respectively, and liabilities of the consolidated VIEs totaled $2.8 billion, $2.9 billion, $2.2 billion, $1.2 billion and $1.3 billion, respectively. Refer to Note 16 to our audited consolidated financial statements for further discussion of the VIEs.

		Twelve Months Ended June 30, 2021			Six Months Ended June 30,			Year Ended December 31,
(in thousands)		2021			2020			2020			2019			2018
CONSOLIDATED STATEMENT OF CASH FLOW DATA
Net cash provided by operating activities		$	326,272			$	165,373			$	175,708			$	336,607			$	304,037			$	290,002
Net cash used in investing activities			(778,495	)			(924,972	)			(234,728	)			(88,251	)			(1,871,148	)			(4,251,659	)
Net cash (used in) provided by financing activities			(474,423	)			806,118				1,169,772				(110,769	)			1,612,552				3,957,708

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		As of June 30,			As of December 31,
(in thousands, except LTV)		2021(1)			2020(1)			2020(1)			2019(1)			2018(1)
Number of investments			125				129				121				129				126
Principal balance		$	19,151,849			$	18,031,537			$	18,190,163			$	17,895,885			$	15,775,844
Net book value		$	17,385,530			$	16,237,189			$	16,474,888			$	16,251,439			$	14,287,367
Unfunded loan commitments(2)		$	3,960,523			$	4,543,086			$	3,962,960			$	4,662,169			$	3,475,928
Weighted-average cash coupon(3)			+ 3.23	%			+ 3.21	%			+ 3.22	%			+ 3.22	%			+ 5.61	%
Weighted-average all-in yield(3)			+ 3.56	%			+ 3.55	%			+ 3.56	%			+ 3.56	%			+ 5.93	%
Weighted-average maximum maturity (years)(4)			3.2				3.5				3.2				3.9				4.1
Origination loan to value (LTV)(5)			64.8	%			63.6	%			64.0	%			63.7	%			62.4	%

(1)

We do not consolidate the 2018 Single Asset Securitization on our consolidated financial statements. Refer to Notes 4 and 16 to our consolidated financial statements for further discussion of the 2018 Single Asset Securitization. In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements.

(2)

Unfunded commitments will primarily be funded to finance our borrowers' construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date.

(3)

The weighted-average spread and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, GBP LIBOR, EURIBOR, STIBOR, BBSY, and CDOR, as applicable to each investment. As of each period end above, 96% or more of our investments by total investment exposure earned a floating rate of interest, primarily indexed to USD LIBOR. The remainder our investments earned a fixed rate of interest. We reflect the fixed rate of interest as a spread over the relevant floating benchmark rates for purposes of the weighted-averages. In addition to spread, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes loans accounted for under the cost-recovery method. Refer to our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2021 and June 30, 2020 and our Annual Reports on Form 10-K for the years ended December 31, 2020, 2019 and 2018 for period-specific detail.

(4)

Maximum maturity assumes all extension options are exercised by the borrower, however our loans and other investments may be repaid prior to such date. As of June 30, 2021, 36% of our loans and other investments by total investment exposure were subject to yield maintenance or other prepayment restrictions and 64% were open to repayment by the borrower without penalty. As of June 30, 2020, 51% of our loans and other investments were subject to yield maintenance or other prepayment restrictions and 49% were open to repayment by the borrower without penalty. As of December 31, 2020, 32% of our loans and other investments by total investment exposure were subject to yield maintenance or other prepayment restrictions and 68% were open to repayment by the borrower without penalty. As of December 31, 2019, 59% of our loans and other investments were subject to yield maintenance or other prepayment restrictions and 41% were open to repayment by the borrower without penalty. As of December 31, 2018, 77% of our loans and other investments were subject to yield maintenance or other prepayment restrictions and 23% were open to repayment by the borrower without penalty.

(5)	Based on LTV as of the dates loans and other investments were originated or acquired by us.

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Pro forma for the Transactions

As of June 30,

As of December 31,

(in thousands)

2021

2020

2020

2019

2018

Other financial data

Liquidity

2,093,213

1,385,813

1,368,438

1,138,595

750,895

470,135

Collateral value

6,853,901

6,146,501

5,912,402

5,824,090

5,268,183

4,100,954

Credit metrics

Debt-to-equity ratio(1)

2.4x

2.7x

2.6x

2.5x

3.0x

2.8x

Secured debt-to-equity ratio(2)

2.2x

2.5x

2.4x

2.2x

2.7x

2.6x

Collateral coverage ratio(3)

3.9x

4.5x

5.5x

5.5x

7.1x

-

(1)	Represents (i) total outstanding secured debt agreements, asset-specific debt agreements, secured term loans, senior secured notes, and convertible notes, less cash, to (ii) book value of equity.

(2)	Represents (i) total outstanding secured debt agreements, secured term loans, and senior secured notes, less cash, to (ii) book value of equity.

(3)	Represents (i) the Collateral value to (ii) total outstanding principal amount under (A) the Term Loan B and (B) the Notes

		Twelve Months Ended June 30, 2021			Six Months Ended June 30,			Year Ended December 31,
(in thousands)		2021			2020			2020			2019			2018
Net income (loss)(1)		$	384,975			$	211,497			$	(35,808	)		$	137,670			$	305,567			$	285,078
(Decrease) increase in current expected credit loss reserve			(64,067	)			(52,199	)			179,521				167,653				-				-
Non-cash compensation expense			33,308				16,105				17,329				34,532				30,656				28,154
GE purchase discount accretion adjustment(2)			-				-				-				-				-				8,706
Realized hedging and foreign currency income, net(3)			1,491				916				10,277				10,852				14,172				6,723
Other items			1,005				324				806				1,487				300				2,084
Increase attributable to non-controlling interest			419				201				(422	)			(204	)			-				-
Distributable Earnings(4)		$	357,131			$	176,844			$	171,703			$	351,990			$	350,695			$	330,745
Convertible interest and cost and discount amortization			30,956				15,496				15,425				30,885				30,748				37,119
Term Loan B interest and cost and discount amortization			42,639				21,964				15,606				36,281				18,460				-
Income Taxes			426				276				173				323				(506	)			308
Adjusted EBITDA(5)		$	431,152			$	214,580			$	202,907			$	419,479			$	399,397			$	368,172

(1)	Represents net income attributable to Blackstone Mortgage Trust.

(2)

Historically, we have deferred in Distributable Earnings the accretion of a purchase discount attributable to a certain pool of GE portfolio loans acquired in May 2015, until repayment in full of the remaining loans in the pool was substantially assured. During the year ended December 31, 2018, it was determined that repayment of the remaining loans in the deferral pool was substantially assured. As such, the $8.7 million of deferred purchase discount, which has been previously recognized in GAAP net income, was realized in Distributable Earnings during the year ended December 31, 2018.

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(3)

For the years ended December 31, 2020 and 2019, 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.

(4)

"Distributable Earnings" is a non-GAAP measure, which we define as GAAP net income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), and (iv) certain non-cash items. Distributable 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. Distributable Earnings mirrors the terms of our management agreement between our Manager and us for purposes of calculating our incentive fee expense. We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss) and cash flow from operating activities determined in accordance with GAAP. We believe Distributable Earnings is a useful financial metric for existing and potential future holders of our class A common stock as historically, over time, Distributable Earnings has been a strong indicator of our dividends per share. As a REIT, we generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments, and therefore we believe our dividends are one of the principal reasons stockholders may invest in our class A common stock. Refer to Note 13 to our consolidated financial statements for further discussion of our distribution requirements as a REIT. Further, Distributable Earnings 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, and is a performance metric we consider when declaring our dividends. Distributable Earnings does not represent net income (loss) or cash generated from operating activities and should not be considered as an alternative to GAAP net income (loss), 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 Distributable Earnings may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported Distributable Earnings may not be comparable to the Distributable Earnings reported by other companies.

(5)

"Adjusted EBITDA" is a non-GAAP measure, which we define as represents Distributable Earnings plus (i) interest accrued on convertible notes and amortization of issuance costs and discounts of convertible notes, (ii) interest accrued on the Term Loan B and amortization of issuance costs and discounts of the Term Loan B, and (iii) income tax provisions. We believe that Adjusted EBITDA provides useful information to investors about our company and its financial condition and results of operations. Adjusted EBITDA should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. In addition, our methodology for calculating Adjusted EBITDA may differ from the methodologies employed by other companies to calculate the same or similar supplemental measures, and accordingly, our reported Adjusted EBITDA may not be comparable to the Adjusted EBITDA reported by other companies.

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		Pro forma for the Transactions			As of June 30,			As of December 31,
(in thousands)		2021			2020			2020			2019			2018
First mortgage net asset value		$	3,408,581			$	3,408,581			$	3,146,843			$	3,297,256			$	2,870,300			$	2,545,301
Whole loans			95,258				95,258				223,729				359				726,667				280,498
Retained syndication interests			533,275				533,275				626,635				656,401				623,482				498,140
Retained securities			723,575				723,575				546,757				731,478				296,838				306,880
Available borrowings under secured debt facilities			1,463,649				1,068,649				97,032				829,165				598,840				359,618
Cash and cash equivalents(1)			629,564				317,164				1,271,406				309,430				152,055				110,517
Collateral value		$	6,853,901			$	6,146,501			$	5,912,402			$	5,824,090			$	5,268,183			$	4,100,954

(1)

Includes loan principal and interest payments held by our third-party loan servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle. For the period ended June 30, 2021 and pro forma of the Transactions and for the periods ended June 30, 2021, June 30, 2020, December 31, 2020, December 31, 2019 and December 31, 2018, loan principal and interest payments totaled $27.6 million, $27.6 million, $11.6 million, $19.5 million, $2.0 million and $4.9 million, respectively.

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