Blackstone Mortgage Trust, Inc.
3Q 2023 Earnings Release & Company Supplemental
OCTOBER 2023
BLACKSTONE MORTGAGE TRUST OVERVIEW
- Blackstone Mortgage Trust is a publicly-traded commercial mortgage REIT focused on senior lending in North America, Europe, and Australia
Preeminent Sponsorship
Senior Lending
Secure Balance Sheet
- BXMT is managed by Blackstone, the largest real estate private equity business in the world, with access to all the resources of the Blackstone Real Estate platform
- BXMT originates senior loans with conservative leverage, backed by institutional-quality real estate with growth-oriented business plans well positioned for today's environment
- Diversified balance sheet structured to withstand volatility with term- matched financings, substantial liquidity, and no capital markets mark-to- market provisions
Note: The information in this deck is as of September 30, 2023, unless otherwise stated. Opinions expressed reflect the current opinions of BXMT as of the date appearing in the materials only and are based on BXMT's opinions of the current market environment, which is subject to change. BXMT's manager is a subsidiary of Blackstone.
Blackstone Mortgage Trust, Inc. | Blackstone | 1 |
WHY INVEST IN BXMT TODAY?
What You Want | What BXMT Has Delivered | |||||||||
| Interest rate protection | • Floating-rate loan portfolio with | ||||||||
term-matched financings | ||||||||||
| Current income | • | 12.3% dividend yield(1) | |||||||
| Downside protection | • | 64% loan-to-value(2) | |||||||
High-quality collateral | • Institutional assets well-positioned | |||||||||
within their markets | ||||||||||
| Consistent results | • Paid $0.62 per share dividend for the | ||||||||
past 33 consecutive quarters | ||||||||||
- Based on share price of $20.10 as of October 24, 2023 and an annualized dividend of $0.62 per share per quarter.
- Reflects weighted average loan-to-value ("LTV") as of the date investments were originated or acquired by BXMT.
Blackstone Mortgage Trust, Inc. | Blackstone | 2 |
BXMT MARKET POSITIONING
- BXMT's business is well-positioned in the current environment with a stable balance sheet, strong, consistent cash flow, and credit performance well-insulated from volatility
- Predictable cash flow from large, floating-rate loan portfolio providing robust dividend coverage
Low-leverage loans | ||
protect basis; retained | ||
excess earnings provide | ||
Earnings | Downside | additional credit |
insulation | ||
Power | Protection |
BXMT
Positioning
Blackstone sponsorship | ||
provides unique access | Preeminent | Diversified |
to attractive | ||
investments globally, | Sponsorship | Balance |
and a breadth of | Sheet | |
resources to inform risk | ||
management decisions |
- Diversified funding sources, match-funded financing structures, and substantial liquidity
Blackstone Mortgage Trust, Inc. | Blackstone | 3 |
BLACKSTONE OVERVIEW
- Blackstone is the largest global alternative asset manager(1)
38 yr
investment record
$1T
assets under management
60+
investing strategies
Real Estate $332B
- Opportunistic
- Core+
- Debt
Credit & Insurance $297B
- Private Credit
- Liquid Credit
- Other Credit and Insurance
Private Equity $299B
- Corporate Private Equity
- Secondaries
- Tactical Opportunities
- Infrastructure
- Life Sciences
- Growth
Hedge Fund Solutions $80B
- Portfolio Solutions
- Special Situations
- GP Participation
Note: Assets under management ("AUM") are estimated and unaudited. "AUM" includes co-investments and Blackstone's GP and side-by-side commitments, as applicable. Past performance is not necessarily indicative of future results. There can be no assurance that any Blackstone fund or investment will achieve its objectives or avoid substantial losses. Credit & Insurance AUM is a combined figure that includes Blackstone Credit ("BXC"), Asset Based Finance, Harvest Fund Advisors ("Harvest"), and Blackstone Insurance Solutions ("BIS") businesses. For more information, please see "Important Disclosure Information".
- Based on Blackstone analysis of company earnings presentations and calls, as of June 30, 2023 or latest publicly available data.
Blackstone Mortgage Trust, Inc. | Blackstone | 4 |
BREDS OVERVIEW
- BXMT is the senior floating-rate lending vehicle within BREDS, and benefits from the cross-market knowledge and relationships generated across the BREDS business
Blackstone Mortgage
Trust
("BXMT")
- Originates senior loans on core assets to well-capitalized sponsors
- Downside protection and income orientation
- Dividends generated from interest income
$22.1B
loan portfolio(1)
Investments across real estate debt including mezzanine loans,
BREDS Drawdown | real estate securities, residential and commercial mortgages |
and corporate credit | |
Strategy | |
Traditional closed-end fund structure | |
$17.2B
investor capital(2)
Direct originations and sourcing solutions across high-quality
Insurance | real estate for insurance companies |
Liquid securities and residential / commercial mortgages; | |
primarily fixed rate |
$45.6B
investor capital
Note: Investor capital includes co-investments and Blackstone's GP and side-by-side commitments, as applicable.
- Based on Net Loan Exposure. See Appendix for definition.
- Investor capital also includes Real Estate Securities ($2.2 billion) and other funds ($237 million).
Blackstone Mortgage Trust, Inc. | Blackstone | 5 |
SUPERIOR REAL ESTATE PLATFORM
- Nearly 900 people in 12 offices, across one fully integrated real estate platform
Blackstone Advantage | Constant Communication | ||
Global Business | Weekly | ||
| 889 professionals | | Partners' Meeting |
| 12 global offices | | Global ICMs |
| Investment Review Committees |
Scale Capital | Quarterly | ||
| $333 billion RE AUM | | Board Meetings |
| $49.2 billion raised in LTM | | Portfolio Asset Review |
Long View | Annual |
Long term capital commitments | Regional Strategy Session |
Integrated Perspective
1
global real estate platform
1
investment process- same people, same process
Note: Information on this page is as of June 30, 2023.
Blackstone Mortgage Trust, Inc. | Blackstone | 6 |
BXMT TARGET INVESTMENTS
Loan Size | $50 million to $500+ million |
First mortgages on stabilized or value-add assets | |
Collateral | |
All commercial property types | |
Property Type | |
North America, Western Europe and Australia | |
Geographies | |
Last dollar 50% to 75% | |
Loan to Value | |
SOFR + 3.25% 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 | 7 |
PORTFOLIO OVERVIEW
- Fully-scaled$22.1 billion portfolio(1) is well-diversified by collateral and geography, and secured by institutional assets with growth-oriented business plans well-positioned for the current environment
Collateral Diversification(1)
Geographic Distribution(1)
Retail 4%
Industrial 10%
Hospitality 17%
Life Sciences/ Other Property
Studio 5% 2%
Multifamily 26%
US Office 27%
Non-US Office 9%
Other Western
Europe
15%
UK
15%
Other U.S.
6%
Australia
6%
Sunbelt
25%
Northeast
20%
West
13%65%
U.S.
- Based on Net Loan Exposure. See Appendix for definition.
Blackstone Mortgage Trust, Inc. | Blackstone | 8 |
MULTIFAMILY PORTFOLIO
- 74% of the multifamily portfolio is located in the Sunbelt, New York City, and Southern California
- BXMT's multifamily assets are located in markets exhibiting higher rental growth relative to the U.S. average, with less competitive new supply under construction than their respective markets
Geographic Diversification(1)
Other EU/UK/AU 7%
London 7%
Other US 12%
Southern California 7%
New York City 13%
AZ
Other Sunbelt NC 6%
3%4%
Strong Fundamentals
in BXMT U.S. Markets
TX 17%
20%
higher annual market rent growth(2)
FL 16%
21%
less submarket supply(3)
NV | 54% |
8% | Sunbelt |
- Based on Net Loan Exposure. See Appendix for definition.
- Source: Axiometrics. Represents the average annualized compounded market rent growth over a 2-year period for BXMT's U.S. traditional multifamily portfolio markets, weighted by net loan exposure, compared to the overall U.S. market rent growth over the same period. Based on 3-month trailing market rent data as of July 2023.
- Source: Axiometrics. Reflects average annual new supply expected to deliver over the next 24 months as a % of total existing supply within a 3-mile radius of BXMT's U.S. traditional multifamily portfolio assets, weighted by net loan exposure, compared with new supply expected to deliver in the same time period within their respective MSA. Market data as of July 2023.
Blackstone Mortgage Trust, Inc. | Blackstone | 9 |
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Disclaimer
Blackstone Mortgage Trust Inc. published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2023 14:01:39 UTC.