Blackstone : 3Q 2020 Earnings Release & Company Supplemental
11/20/2020 | 12:55pm EST
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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1
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
See Appendix for a definition and reconciliation to GAAP net income.
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.
Reflects ratio of Core Earnings to dividends declared for the three months ended September 30, 2020.
Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit facilities.
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2
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
See Appendix for a definition and reconciliation to GAAP net income.
Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit facilities.
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.
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
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%
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.
States comprising less than 1% of total loan portfolio are excluded.
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5
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
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.
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
Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit facilities.
Represents (i) total outstanding secured debt agreements, secured term loans and convertible notes, less cash, to (ii) total equity.
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)
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.
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.
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.
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 %
Portfolio excludes our $79 million subordinate interest in the $808 million 2018 Single Asset Securitization.
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.
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 $716 million of Non-Consolidated Senior Interests, which are included in the table above.
Maximum maturity assumes all extension options are exercised; however, floating rate loans generally may be repaid prior to their final maturity without penalty.
This loan is accounted for under the cost-recovery method.
Consists of both floating and fixed rates. Coupon and all-in yield assume applicable floating benchmark rates for weighted-average calculation. Excludes loans under the cost-recovery method.
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APPENDIX
Consolidated Balance Sheets
($ 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
Represents net income attributable to Blackstone Mortgage Trust, Inc.
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
Represents net (loss) income attributable to Blackstone Mortgage Trust, Inc.
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
Total liquidity primarily includes $427 million of cash and $806 million of available borrowings under credit facilities as of September 30, 2020.
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
$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.
The Blackstone Group Inc. published this content on 19 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 November 2020 17:54:00 UTC
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