Mortgage Trust Blackstone Mortgage Trust Reports Third Quarter 2021 Results New York, October 27, 2021: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its third quarter 2021 results. Third quarter EPS, Distributable EPS, and dividends paid per share were $0.56, $0.63, and $0.62, respectively. Katie Keenan, Chief Executive Officer, said, "BXMT's accelerating momentum throughout the year led to exceptional performance in the third quarter, with a record $4.7 billion of new originations driving $2. ...

Blackstone Mortgage Trust Inc. (NYSE:BXMT) Q3 2021 Earnings Conference Call October 27, 2021 9:00 AM ET Company Participants Katharine Keenan – Chief Executive Officer Mike Nash – Executive Chairman Weston Tucker – Head of shareholder relations Jonathan Pollack – Global Head of Real Estate, Debt Strategies Anthony Marone – Chief Financial Officer Douglas Armer – Executive Vice President, Capital Markets Conference Call Participants Timothy Hayes – BTIG Stephen Laws – Raymond James Richard Shane – JPM Donald ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited consolidated financial statements, management's discussion and analysis, market risk disclosures, and internal control evaluations [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements and accompanying notes for the periods ended September 30, 2021 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$20.71 billion** by September 30, 2021, driven by loan growth, with corresponding increases in liabilities and equity Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $211,180 | $289,970 | | Loans receivable, net | $20,276,078 | $16,399,166 | | **Total Assets** | **$20,705,872** | **$16,958,955** | | **Liabilities** | | | | Secured debt, net | $11,170,330 | $7,880,536 | | Securitized debt obligations, net | $2,836,049 | $2,922,499 | | **Total Liabilities** | **$16,435,320** | **$13,054,724** | | **Total Equity** | **$4,270,552** | **$3,904,231** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Net income for Q3 2021 was **$83.8 million**, while nine-month net income surged to **$295.3 million**, primarily due to a favorable change in credit loss provision Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Income from loans, net | $117,424 | $114,961 | $340,528 | $322,727 | | (Increase) decrease in CECL reserve | ($2,767) | $6,055 | $49,432 | ($173,466) | | Net income attributable to BXMT | $83,757 | $89,860 | $295,254 | $54,054 | | Net income per share (basic and diluted) | $0.56 | $0.61 | $2.00 | $0.39 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was **$255.0 million**, while significant investing outflows of **$3.93 billion** were largely offset by **$3.62 billion** from financing activities Cash Flow Summary for the Nine Months Ended September 30 (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $255,022 | $261,296 | | Net cash used in investing activities | ($3,926,040) | ($105,726) | | Net cash provided by financing activities | $3,616,649 | $120,778 | | **Net (decrease) increase in cash** | **($54,369)** | **$276,348** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the company's accounting policies, including CECL, and financial results, covering loan portfolio, debt, and equity - The company is a real estate finance company originating senior loans collateralized by commercial real estate in North America, Europe, and Australia, operating as a REIT[31](index=31&type=chunk) - The company adopted the Current Expected Credit Loss (CECL) standard (ASU 2016-13) on January 1, 2020, which requires estimating credit losses over the life of financial instruments, resulting in a **$17.65 million** charge to retained earnings upon initial adoption[49](index=49&type=chunk)[59](index=59&type=chunk) - The company is actively managing the transition from LIBOR to alternative reference rates like SOFR and SONIA, as detailed in its accounting policies and recent developments[94](index=94&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=52&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the company's financial condition, results of operations, loan portfolio, and liquidity, highlighting key performance indicators [Key Financial Measures and Indicators](index=54&type=section&id=MD%26A_Key%20Financial%20Measures%20and%20Indicators) The company focuses on key metrics like EPS, dividends, Distributable Earnings, and book value per share, with Q3 2021 EPS at **$0.56** and Distributable Earnings at **$0.63** Q3 2021 Key Metrics per Share | Metric | Q3 2021 | | :--- | :--- | | Net Income per Share | $0.56 | | Dividends Declared per Share | $0.62 | | Distributable Earnings per Share | $0.63 | | Book Value per Share | $26.92 | - Distributable Earnings, a non-GAAP measure used to evaluate performance and determine dividends, excludes non-cash items like equity compensation and unrealized gains/losses, including changes in the CECL reserve[267](index=267&type=chunk)[268](index=268&type=chunk) [Loan Portfolio](index=56&type=section&id=MD%26A_Loan%20Portfolio) The company originated **$4.7 billion** in loans in Q3 2021, growing its **$22.0 billion** portfolio with a **65.1%** LTV and improved credit quality Loan Activity - Q3 2021 (in billions) | Activity | Amount | | :--- | :--- | | Loan Originations | $4.7 | | Loan Fundings | $3.9 | | Loan Repayments and Sales | ($0.9) | | **Total Net Fundings** | **$3.0** | - The total investment portfolio stood at **$22.0 billion** with a weighted-average origination LTV of **65.1%** and an all-in yield of L+3.54%[278](index=278&type=chunk) - The company collected **100%** of contractual interest payments due during Q3 2021, demonstrating the portfolio's strength and borrowers' financial capacity[283](index=283&type=chunk) - The portfolio's weighted-average risk rating improved to **2.8** as of September 30, 2021, from **3.0** at year-end 2020, indicating improved credit quality[286](index=286&type=chunk) [Results of Operations](index=67&type=section&id=MD%26A_Results%20of%20Operations) Net interest income increased in Q3 2021, but net income decreased to **$83.8 million** due to CECL reserve changes, while year-to-date net income surged to **$295.3 million** Quarterly Results Comparison (in thousands) | Account | Q3 2021 | Q2 2021 | Change | | :--- | :--- | :--- | :--- | | Net interest income | $117,424 | $113,951 | $3,473 | | (Increase) decrease in CECL reserve | ($2,767) | $50,906 | ($53,673) | | Net income attributable to BXMT | $83,757 | $131,595 | ($47,838) | Year-to-Date Results Comparison (in thousands) | Account | Nine Months 2021 | Nine Months 2020 | Change | | :--- | :--- | :--- | :--- | | Net interest income | $340,527 | $322,727 | $17,800 | | Decrease (increase) in CECL reserve | $49,432 | ($173,466) | $222,898 | | Net income attributable to BXMT | $295,254 | $54,054 | $241,200 | [Liquidity and Capital Resources](index=69&type=section&id=MD%26A_Liquidity%20and%20Capital%20Resources) The company maintained **$1.1 billion** in total liquidity as of September 30, 2021, with a **4.1x** total leverage ratio and **$1.6 billion** in unfunded loan commitments Liquidity Sources as of September 30, 2021 (in thousands) | Source | Amount | | :--- | :--- | | Cash and cash equivalents | $211,180 | | Senior secured notes, net (issued Oct 2021) | $395,000 | | Available borrowings under secured debt | $452,438 | | Loan principal payments held by servicer, net | $299 | | **Total Liquidity** | **$1,058,917** | Leverage Ratios | Ratio | September 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Debt-to-equity ratio | 3.1x | 2.5x | | Total leverage ratio | 4.1x | 3.6x | - The company has net unfunded loan commitments of **$1.6 billion**, which it expects to fund over a weighted-average period of **3.2 years**[336](index=336&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=81&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details the company's exposure to market risks, including interest rate, credit, and currency risks, and outlines mitigation strategies - The company's business model is generally structured such that rising interest rates increase net income, with **98%** of investments being floating-rate, creating a net positive correlation to interest rate movements[362](index=362&type=chunk) Annualized Net Interest Income Sensitivity to Interest Rate Changes (in thousands) | Rate Change | Impact on Net Interest Income | | :--- | :--- | | +50 bps | ($14,464) | | +25 bps | ($8,763) | | -25 bps | $6,387 | | -50 bps | $6,457 | - Credit risk is mitigated by a low portfolio-wide origination LTV of **65.1%**, strong institutional sponsors, and active asset management informed by Blackstone's real estate platform[374](index=374&type=chunk)[375](index=375&type=chunk) - Currency risk is managed by matching the currency of foreign assets to related borrowings and using foreign currency forward contracts to hedge substantially all of the net asset exposure[380](index=380&type=chunk)[382](index=382&type=chunk) [Controls and Procedures](index=84&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures are effective[383](index=383&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[384](index=384&type=chunk) [PART II. OTHER INFORMATION](index=85&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, senior security defaults, and a list of exhibits [Legal Proceedings](index=85&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) As of September 30, 2021, the company was not involved in any material legal proceedings - The company reports no involvement in any material legal proceedings as of September 30, 2021[387](index=387&type=chunk) [Risk Factors](index=85&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - No material changes to risk factors were reported for the period[388](index=388&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=85&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company reported no unregistered sales of equity securities during the period - None[389](index=389&type=chunk) [Defaults Upon Senior Securities](index=85&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon its senior securities - None[390](index=390&type=chunk) [Other Information](index=85&type=section&id=ITEM%205.%20OTHER%20INFORMATION) The company reported no other information required to be disclosed under this item - None[391](index=391&type=chunk) [Exhibits](index=86&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including amendments to financing agreements, CEO/CFO certifications (Sections 302 and 906), and XBRL data files - Key exhibits include an amendment to the Master Repurchase Agreement with Citibank and certifications by the CEO and CFO as required by the Sarbanes-Oxley Act[393](index=393&type=chunk)

Financial Data and Key Metrics Changes - The company reported GAAP net income per share of $0.89 for Q2 2021, an increase of $0.35 from the previous quarter [19] - Distributable earnings rose to $0.61 per share, up from the previous quarter, reflecting continued deployment of balance sheet capital into new loan originations [20] - Book value increased by $0.33 to $26.68 per share, driven by a reduction in the CECL loan loss reserve [19][20] Business Line Data and Key Metrics Changes - The company achieved $2.2 billion in new loan originations across 21 transactions, marking one of the most productive quarters for new origination [7] - The portfolio size reached a record $19.2 billion, reflecting nearly $1 billion in net investment year-to-date [7] - The weighted average loan-to-value (LTV) ratio for new loans was 65%, consistent with the existing portfolio [24] Market Data and Key Metrics Changes - In the multifamily sector, leasing spreads in June across the top 40 markets hit 9.7%, indicating strong asset performance [10] - New tenant requirements in major cities reached 81% of 2019 levels, with new leasing activity at 35 million square feet in Q2, the highest since the pandemic began [12] - The hotel sector showed significant recovery, particularly in resort areas, with many assets covering debt service [56] Company Strategy and Development Direction - The company is focused on low leverage floating rate lending to top-quality sponsors on institutional assets, with a strong pipeline of opportunities [17] - The strategic advantage lies in the scale of Blackstone's real estate debt and equity businesses, allowing for extensive market transactions and insights [9] - The company aims to capitalize on favorable market dynamics, including low rates and a global search for yields, to enhance portfolio growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery of the economy and its positive impact on credit performance and asset values [14] - The company anticipates continued growth in lending opportunities, particularly in Europe and the hotel sector, as markets normalize [15] - Management remains cautious about potential short-term headwinds from interest rate changes but believes higher rates will benefit the business over time [18] Other Important Information - The company upgraded 15 loans during the quarter, reflecting improved performance and a partial reduction of the CECL reserve [16] - The company closed a new $1.8 billion credit facility and upsized its term loan B-2 tranche, enhancing its capital structure [26][27] - The company maintains a low debt-to-equity ratio of 2.7x and liquidity of $1.4 billion, indicating strong financial health [27] Q&A Session Summary Question: What impact do current inflation rates in construction materials costs have on loans with a construction element? - Management indicated that inflation in construction costs would likely lead to lower new supply and enhance the value of existing assets, with protections in place for construction loans [30] Question: Do you anticipate an increase in repayments similar to Q2? - Management does not expect an increase in repayments, citing the larger portfolio size which smooths out the impact of individual loan repayments [32] Question: How is the company managing interest rate headwinds? - Management noted that the business model is organically hedged, allowing for stability in returns despite changing interest rates [36] Question: What is the right level of liquidity for the company now that the environment has normalized? - Management stated that the current capital structure supports significant portfolio growth, with a focus on maximizing high-quality growth opportunities [43] Question: Can you provide more color on CECL reserves and the model used? - Management explained that the decrease in CECL reserves was driven by improved risk ratings and overall market performance, with the WARM model being utilized for assessments [49][50]

Part I. Financial Information [Item 1. Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Blackstone Mortgage Trust's unaudited consolidated financial statements for Q2 and H1 2021, covering key financial statements and detailed notes [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) Total assets grew to **$17.90 billion** by June 30, 2021, driven by loans, with Q2 2021 net income significantly improving to **$132.5 million** due to reduced credit loss provisions Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$17,901,747** | **$16,958,955** | | Loans receivable, net | $17,307,898 | $16,399,166 | | **Total Liabilities** | **$13,944,792** | **$13,054,724** | | Secured debt, net | $8,709,818 | $7,880,536 | | **Total Equity** | **$3,956,955** | **$3,904,231** | Consolidated Statement of Operations Highlights (in thousands) | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Income from loans, net | $113,951 | $107,129 | $223,104 | $207,765 | | (Decrease) increase in CECL reserve | $50,906 | $(56,819) | $52,199 | $(179,521) | | **Net income (loss)** | **$132,468** | **$18,505** | **$213,008** | **$(34,780)** | | **Net income (loss) per share** | **$0.89** | **$0.13** | **$1.44** | **$(0.26)** | Consolidated Statement of Cash Flows Highlights (in thousands) | Metric | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $165,373 | $175,708 | | Net cash used in investing activities | $(924,972) | $(234,728) | | Net cash provided by financing activities | $806,118 | $1,169,772 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail the company's accounting policies, loan portfolio, financing, CECL, derivatives, equity, and commitments - The company is a real estate finance company organized as a REIT, originating senior loans collateralized by commercial real estate in North America, Europe, and Australia[31](index=31&type=chunk) - The company's CECL reserve estimation uses the Weighted Average Remaining Maturity (WARM) method, augmented with market loan loss data from Trepp LLC, focusing on comparable CMBS data[48](index=48&type=chunk)[51](index=51&type=chunk) - The company acknowledges that the COVID-19 pandemic creates uncertainty, making estimates and assumptions as of June 30, 2021, inherently less certain[39](index=39&type=chunk) - The company is actively managing the transition from LIBOR to alternative reference rates like SOFR and SONIA, with some financing facilities already transitioned[94](index=94&type=chunk)[95](index=95&type=chunk) [Note 3: Loans Receivable, Net](index=22&type=section&id=Note%203%3A%20Loans%20Receivable%2C%20Net) The loan portfolio expanded to **$17.5 billion** by June 30, 2021, primarily floating-rate senior loans, with improved credit quality and a reduced CECL reserve Loan Portfolio Overview (in thousands) | Metric | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Number of loans | 124 | 120 | | Principal balance | $17,529,542 | $16,652,824 | | Net book value | $17,307,898 | $16,399,166 | | Unfunded loan commitments | $3,353,259 | $3,160,084 | Loan Portfolio Composition by Property Type (June 30, 2021) | Property Type | Percentage of Portfolio | | :--- | :--- | | Office | 53% | | Hospitality | 14% | | Multifamily | 14% | | Industrial | 5% | | Other | 14% | Loan Portfolio by Risk Rating (Total Loan Exposure) | Risk Rating | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | 1 - Very Low Risk | $877.7M | $778.3M | | 2 - Low Risk | $3,849.0M | $2,528.8M | | 3 - Medium Risk | $11,116.9M | $10,763.5M | | 4 - High Risk | $2,346.4M | $3,045.3M | | 5 - Impaired/Loss Likely | $338.7M | $338.7M | | **Weighted-Average** | **2.9** | **3.0** | - The CECL reserve for loans receivable decreased by **$44.6 million** during the first six months of 2021 to **$128.9 million**, reflecting the ongoing market recovery from COVID-19. Two loans with an aggregate principal of **$338.7 million** remain on non-accrual status with a specific CECL reserve of **$69.7 million**[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk) [Note 5-9: Financing and Debt Structure](index=31&type=section&id=Note%205-9%3A%20Financing%20and%20Debt%20Structure) The company's financing strategy includes **$8.7 billion** in secured credit facilities, **$2.8 billion** in CLOs, and other debt, with new facilities and increased term loan borrowings in Q2 2021 - In Q2 2021, the company entered into a new **€1.5 billion** Master Repurchase Agreement with Banco Santander and increased an existing facility with Citibank by **$500 million** to **$2.0 billion**[389](index=389&type=chunk)[393](index=393&type=chunk) Financing Structure (Net Book Value, in thousands) | Debt Type | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Secured debt, net | $8,709,818 | $7,880,536 | | Securitized debt obligations, net | $2,833,778 | $2,922,499 | | Asset-specific debt, net | $292,122 | $391,269 | | Term loans, net | $1,332,130 | $1,041,704 | | Convertible notes, net | $618,111 | $616,389 | - During H1 2021, the company increased borrowings under its term loan facilities by a net **$300.0 million**[153](index=153&type=chunk) - In Q2 2021, the company issued a new **$803.8 million** CLO (2021 FL4), collateralized by **$1.0 billion** of loans[147](index=147&type=chunk)[148](index=148&type=chunk) [Note 10: Derivative Financial Instruments](index=38&type=section&id=Note%2010%3A%20Derivative%20Financial%20Instruments) The company uses derivatives like foreign currency forwards and interest rate caps to hedge investment and financing risks, holding **$19.9 million** in derivative assets and **$13.7 million** in liabilities - The sole objective for using derivatives is to minimize risks and costs associated with investments and financing; they are not used for speculative purposes[164](index=164&type=chunk) - The company uses foreign currency forward contracts as net investment hedges to protect against currency risk and interest rate caps as cash flow hedges for interest rate risk[166](index=166&type=chunk)[168](index=168&type=chunk) Fair Value of Derivative Instruments (in thousands) | Position | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Derivative Assets | $19,860 | $522 | | Derivative Liabilities | $13,749 | $58,915 | [Note 11: Equity](index=41&type=section&id=Note%2011%3A%20Equity) As of June 30, 2021, the company had **147.0 million** shares outstanding, declared a **$0.62**/share dividend, reported **$0.89** Q2 EPS, and made no ATM sales - A dividend of **$0.62 per share** (**$91.1 million** in aggregate) was declared on June 15, 2021[186](index=186&type=chunk) Earnings Per Share (EPS) | Period | Net Income (Loss) Attributable to BXMT (in thousands) | Weighted-Average Shares | Basic & Diluted EPS | | :--- | :--- | :--- | :--- | | **Q2 2021** | $131,595 | 147,342,822 | **$0.89** | | **Q2 2020** | $17,544 | 138,299,418 | **$0.13** | | **H1 2021** | $211,497 | 147,339,895 | **$1.44** | | **H1 2020** | $(35,808) | 136,959,341 | **$(0.26)** | - No shares were sold under the At-The-Market (ATM) stock offering program during the six months ended June 30, 2021. An aggregate of **$363.8 million** remained available for issuance[184](index=184&type=chunk) [Note 18: Commitments and Contingencies](index=48&type=section&id=Note%2018%3A%20Commitments%20and%20Contingencies) The company's commitments total **$15.1 billion**, including **$3.4 billion** in unfunded loan commitments, with **$1.2 billion** due within one year, alongside ongoing COVID-19 uncertainty - As of June 30, 2021, the company had unfunded commitments of **$3.4 billion** related to 86 loans receivable, with an average future funding period of **3.1 years**[234](index=234&type=chunk) Contractual Obligations and Commitments (in thousands) | Obligation Type | Total Obligation | Less Than 1 Year | 1 to 3 Years | 3 to 5 Years | More Than 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Unfunded loan commitments | $3,353,259 | $153,985 | $1,666,386 | $1,525,438 | $7,450 | | Principal debt repayments | $11,007,522 | $812,386 | $3,865,234 | $5,848,654 | $481,248 | | Interest payments | $722,833 | $233,663 | $325,750 | $159,561 | $3,859 | | **Total** | **$15,083,614** | **$1,196,034** | **$5,851,200** | **$7,533,653** | **$502,727** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=50&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) MD&A highlights Q2 2021 Distributable Earnings of **$0.61**/share, **$2.2 billion** in loan originations, **$19.2 billion** portfolio, improved credit quality, **$1.4 billion** liquidity, and increased net income due to reduced CECL reserve [Key Financial Measures and Indicators](index=52&type=section&id=Key%20Financial%20Measures%20and%20Indicators) Key metrics for Q2 2021 include **$0.89** GAAP EPS, **$0.62** dividend, **$0.61** Distributable Earnings, and **$26.68** book value per share, with Distributable Earnings as a non-GAAP dividend capacity indicator Key Metrics per Share - Q2 2021 | Metric | Value | | :--- | :--- | | Earnings Per Share (GAAP) | $0.89 | | Dividends Declared | $0.62 | | Distributable Earnings (Non-GAAP) | $0.61 | | Book Value Per Share | $26.68 | Reconciliation of GAAP Net Income to Distributable Earnings (Q2 2021, in thousands) | Line Item | Amount | | :--- | :--- | | Net income attributable to Blackstone Mortgage Trust | $131,595 | | *Less:* Decrease in CECL reserve | $(50,906) | | *Add:* Non-cash compensation expense | $8,020 | | *Add:* Other adjustments | $1,186 | | **Distributable Earnings** | **$89,895** | [Loan Portfolio Analysis](index=54&type=section&id=Loan%20Portfolio%20Analysis) Strong Q2 2021 loan originations of **$2.2 billion** grew the portfolio to **$19.2 billion**, with improved credit quality (**2.9** risk rating), **100%** interest collection, and a reduced CECL reserve of **$133.1 million** - Originated or acquired **$2.2 billion** of loans in Q2 2021 and **$3.9 billion** in the first six months of 2021[264](index=264&type=chunk)[265](index=265&type=chunk) Total Investment Portfolio Statistics (June 30, 2021) | Metric | Value | | :--- | :--- | | Total Investment Exposure | $19.2 billion | | Number of Investments | 125 | | Weighted-Average Origination LTV | 64.8% | | Weighted-Average All-in Yield | +3.56% | - During Q2 2021, the company collected **100%** of contractual interest payments due under its loans, with virtually no interest deferrals[272](index=272&type=chunk) - The total CECL reserve (for loans, debt securities, and unfunded commitments) decreased by an aggregate **$52.2 million** during H1 2021 to a total of **$133.1 million** as of June 30, 2021[279](index=279&type=chunk) [Portfolio Financing and Capital Resources](index=59&type=section&id=Portfolio%20Financing%20and%20Capital%20Resources) The company maintains a robust capital structure with **$13.4 billion** in asset-level financing, **$2.0 billion** in corporate debt, **2.7x** debt-to-equity, **3.8x** total leverage, and **$1.4 billion** liquidity, with floating-rate financing positively correlated to rising rates Leverage Ratios | Ratio | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Debt-to-equity ratio | 2.7x | 2.5x | | Total leverage ratio | 3.8x | 3.6x | Sources of Liquidity (in thousands) | Source | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $289,552 | $289,970 | | Available borrowings under secured debt | $1,068,649 | $829,165 | | Loan principal payments held by servicer, net | $27,612 | $19,460 | | **Total Liquidity** | **$1,385,813** | **$1,138,595** | - As of June 30, 2021, **98%** of the company's investments by total exposure earned a floating rate of interest, financed with floating-rate liabilities, resulting in a positive correlation to rising interest rates[306](index=306&type=chunk) [Results of Operations](index=65&type=section&id=Results%20of%20Operations) Q2 2021 net income rose to **$131.6 million** (**$0.89**/share), primarily due to a **$49.6 million** decrease in the CECL reserve and increased net interest income, leading to **$211.5 million** net income for H1 2021 Quarter-over-Quarter Results of Operations (in thousands) | Metric | Q2 2021 | Q1 2021 | Change | | :--- | :--- | :--- | :--- | | Net interest income | $113,951 | $109,152 | $4,799 | | Decrease in CECL reserve | $50,906 | $1,293 | $49,613 | | **Net income attributable to BXMT** | **$131,595** | **$79,902** | **$51,693** | Year-over-Year (Six Months) Results of Operations (in thousands) | Metric | H1 2021 | H1 2020 | Change | | :--- | :--- | :--- | :--- | | Net interest income | $223,104 | $207,765 | $15,339 | | (Decrease) increase in CECL reserve | $52,199 | $(179,521) | $231,720 | | **Net income (loss) attributable to BXMT** | **$211,497** | **$(35,808)** | **$247,305** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate risk, with **98%** floating-rate investments, projecting a **$10.0 million** decrease in net interest income for a **50 bps** rate increase, while credit and currency risks are mitigated Annualized Interest Rate Sensitivity Analysis (in thousands) | Rate Change | Impact on Net Interest Income | | :--- | :--- | | +50 bps | $(10,043) | | +25 bps | $(5,592) | | -25 bps | $4,134 | | -50 bps | $4,200 | - Credit risk is managed through disciplined underwriting and active asset management, benefiting from Blackstone's real estate platform. The portfolio's low weighted-average LTV of **64.8%** provides significant equity protection[368](index=368&type=chunk)[369](index=369&type=chunk) - Currency risk is substantially mitigated by matching the currency of foreign assets with corresponding borrowings and using foreign currency forward contracts to hedge the net asset exposure[375](index=375&type=chunk)[377](index=377&type=chunk) - Margin call provisions in credit facilities are limited to collateral-specific credit marks and do not permit valuation adjustments based on general capital markets events[371](index=371&type=chunk) [Item 4. Controls and Procedures](index=81&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are effective in ensuring timely and accurate reporting as required by the SEC[378](index=378&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[379](index=379&type=chunk) Part II. Other Information [Summary of Part II Items](index=82&type=section&id=Summary%20of%20Part%20II%20Items) Part II reports no material legal proceedings, risk factor changes, or defaults, detailing debt agreement amendments including refinancing term loans and new/increased repurchase agreements - The company reports no material legal proceedings, no material changes to risk factors, and no defaults on senior securities[381](index=381&type=chunk)[382](index=382&type=chunk)[384](index=384&type=chunk) - On June 21, 2021, the company amended its Term Loan Credit Agreement to refinance and increase its B-2 term loans by **$100.0 million**, while reducing the interest rate spread to **2.75%** from **4.75%**[387](index=387&type=chunk) - On May 14, 2021, subsidiaries entered into a new Master Repurchase Agreement with Banco Santander for up to **€1.5 billion**[389](index=389&type=chunk)[390](index=390&type=chunk) - On April 16, 2021, the company amended its Master Repurchase Agreement with Citibank, increasing the maximum facility size from **$1.5 billion** to **$2.0 billion**[393](index=393&type=chunk)

Blackstone Mortgage Trust, Inc. (NYSE:BXMT) Q1 2021 Earnings Conference Call April 28, 2021 9:00 AM ET Company Participants Steve Plavin - CEO Katie Keenan - President Tony Marone - CFO Doug Armer - EVP, Capital Markets Weston Tucker - Head, IR Conference Call Participants Timothy Hayes - BTIG Doug Harter - Credit Suisse Charlie Arestia - J.P. Morgan Jade Rahmani - KBW Don Fandetti - Wells Fargo Securities Stephen Laws - Raymond James Operator Good day, and welcome to the Blackstone Mortgage Trust, First Qu ...

Financial Performance - First quarter 2021 GAAP earnings per share (EPS) was $0.54, and Distributable EPS was $0.59[11] - A dividend of $0.62 per share was paid[11] - The company's current income from its first mortgage portfolio generated an attractive 90% yield on book relative to USD LIBOR of 01%[11] Portfolio Growth and Composition - $17 billion of new loans were closed in the first quarter of 2021[2,10] - The portfolio grew by nearly $700 million, reaching a record $187 billion at quarter-end[2,10] - Originations were focused on industrial (33%), multifamily (31%), and life sciences (28%) sectors[11,14] - The senior loan portfolio totaled $187 billion, secured by institutional quality real estate in top markets, with a weighted average origination LTV of 65%[11,15] Liquidity and Capitalization - Total liquidity stood at $11 billion, including $280 million in cash and $837 million of available borrowings under credit facilities[10,12] - $13 billion of accretive credit facility financing was closed on increasingly favorable terms[11,17] - A $10 billion CLO was issued post quarter-end, increasing total CLOs outstanding to $35 billion[11] Credit Performance - 100% interest collection was achieved in the first quarter[10,11,15]

Table of Contents 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 March 31, 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 Blackstone Mortgage Trust, Inc. (Exact name of Registrant as specified in its charter) Maryl ...

Mortgage Trust Blackstone Mortgage Trust Reports Fourth Quarter and Full Year 2020 Results New York, February 10, 2021: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its fourth quarter and full year 2020 results. Full year EPS, Distributable EPS, and dividends paid per share were $0.97, $2.48, and $2.48, respectively. Stephen D. Plavin, Chief Executive Officer, said, "BXMT's strong 2020 results reflect the power and stability of our senior lending business. We generated consistent earnings in a ...

Blackstone Mortgage Trust, Inc. (NYSE:BXMT) Q4 2020 Earnings Conference Call February 10, 2021 9:00 AM ET Company Representatives Mike Nash - Executive Chairman Steve Plavin - Chief Executive Officer Jonathan Pollack - Global Head of Real Estate Debt Strategies Katie Keenan - President Tony Marone - Chief Financial Officer Doug Armer - Executive Vice President, Capital Markets Weston Tucker - Head of Investor Relations Conference Call Participants Charlie Arestia - J.P. Morgan Stephen Laws - Raymond James J ...