Blackstone Mortgage Trust, Inc. (NYSE:BXMT) Q1 2022 Earnings Conference Call April 27, 2022 9:00 AM ET Company Participants Weston Tucker - Head of Shareholder Relations Katie Keenan - Chief Executive Officer Tony Marone - Chief Financial Officer Doug Armer - Executive Vice President, Capital Markets Conference Call Participants Don Fandetti - Wells Fargo Steve DeLaney - JPM Securities Jade Rahmani - KBW Rick Shane - JPMorgan Derek Hewett - Bank of America Doug Harter - Credit Suisse Operator Welcome, every ...

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, 2022 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 Mortgage Trust, Inc. (Exact name of Registrant as specified in its charter) Maryland 94-6181186 ...

Summary of Blackstone Mortgage Trust, Inc. Conference Call Company Overview - **Company**: Blackstone Mortgage Trust, Inc. (NYSE: BXMT) - **Industry**: Commercial Real Estate Lending - **Key Participants**: - Katie Keenan - CEO - Doug Armer - Executive Vice President, Capital Markets - Austin Peña - Executive Vice President, Investments Core Points and Arguments 1. **Investment Proposition**: - Blackstone Mortgage Trust offers unparalleled access to real-time information and is typically the largest player in its lending markets, which aids in making informed credit decisions [6] - The company has a fully scaled portfolio of $24 billion, with a focus on low leverage lending (65% LTV) and high-quality borrowers [6][9] - The dividend yield is attractive at 8%, and the floating rate lending model is positively correlated with rising interest rates, positioning the company well for inflation [6] 2. **CRE Lending Strategy**: - The strategy focuses on first mortgage lending to institutional quality assets with experienced sponsors [9] - The company has a competitive advantage due to its scale, allowing it to address larger lending opportunities [9] 3. **Current Market Environment**: - The current CRE lending environment is balanced with experienced lenders and borrowers, focusing on asset selection rather than high leverage [11] - In 2021, the company originated $14.6 billion in loans, with 50% in multifamily and industrial sectors [11] 4. **Property Type Preferences**: - The company favors multifamily, high-quality office properties, and growth markets in the Sunbelt, while avoiding commodity office products and closed malls [13][15] 5. **Geopolitical Impact**: - The geopolitical situation, particularly in Ukraine, has introduced volatility but has not significantly altered the company's investment strategy [30] 6. **Funding Structure**: - The funding structure has evolved with an increase in securitization, providing stability and flexibility in capital markets [34] - The company has diversified its funding sources, which has proven beneficial during market volatility [34][37] 7. **Leverage and ROE Expectations**: - The company is comfortable with leverage between 3x and 4x debt-to-equity and expects ROEs to expand with rising interest rates [42][44] 8. **Loan Repayment Expectations**: - Loan repayments are expected to follow a normal cycle, correlating with the portfolio's historical performance [28][48] 9. **Investment Opportunities**: - The current dislocation in capital markets presents unique investment opportunities for lenders like Blackstone Mortgage Trust, particularly in the CMBS market [40] 10. **Stock Value Proposition**: - The company emphasizes the reliability and predictability of its dividend yield, which is supported by a strong portfolio of first mortgage loans [50] Additional Important Insights - The company has a strong focus on maintaining a diversified balance sheet to optimize capital structure and manage risk effectively [37] - The management team has extensive experience and a well-established network, which enhances the company's competitive position in the market [19] - The company is open to exploring new business lines but prioritizes stability and predictability in its existing operations [46]

Summary of Blackstone Mortgage Trust (BXMT) Conference Call Company Overview - **Company**: Blackstone Mortgage Trust (BXMT) - **Industry**: Commercial Real Estate Lending - **Key Participants**: - Katie Keenan - CEO - Doug Armer - Executive Vice President, Capital Markets - Austin Peña - Executive Vice President, Investments Core Points and Arguments 1. **Investment Proposition**: - BXMT offers unparalleled access to real-time information and is typically the largest player in its lending markets, which aids in making informed credit decisions [6] - The company has a fully scaled portfolio of $24 billion, with strong borrower relationships and a diversified balance sheet [6] - BXMT provides an attractive 8% dividend yield, benefiting from a floating rate lending model that is positively correlated with rising interest rates [6] 2. **CRE Lending Strategy**: - BXMT focuses on first mortgage lending with a low leverage ratio of 65% LTV, targeting institutional quality assets and experienced sponsors [9] - The company has a competitive advantage due to its scale, allowing it to engage in larger lending opportunities [9] 3. **Current Market Environment**: - The current CRE lending environment is balanced with experienced lenders and borrowers, focusing on quality assets rather than high leverage [11] - In 2021, BXMT originated $14.6 billion in loans, with 50% allocated to multifamily and industrial sectors [11] 4. **Preferred Asset Classes**: - BXMT sees opportunities in multifamily, high-quality office properties, and leisure resort hospitality, while avoiding commodity office products and closed malls [13][15] 5. **Geographic Diversification**: - Historically, 30% of BXMT's portfolio has been outside the U.S., with a focus on Europe and Australia, which provide attractive relative value [21] - In 2021, approximately 20% of the business was outside the U.S. due to slower market reopenings post-COVID [21] 6. **Interest Rate Sensitivity**: - BXMT has a significant portion of its portfolio with LIBOR floors, which enhances its sensitivity to rising interest rates, positively impacting earnings [23] - A hypothetical increase in interest rates could lead to a material positive impact on cash flows, estimated at $0.02 to $0.04 per quarter [23] 7. **Funding Structure**: - The funding structure has evolved with an increased proportion of securitized liabilities, providing stability and flexibility [34] - BXMT has diversified its funding sources, including credit facilities and securitizations, which allows for strategic capital market access [34][37] 8. **Market Dislocation Opportunities**: - Current capital market dislocations present unique investment opportunities for BXMT, particularly in the CMBS market where spreads have widened [40] - BXMT is positioned to capitalize on attractive pricing for stabilized multifamily and industrial assets that may have previously been priced tightly [40] 9. **Leverage Strategy**: - BXMT is comfortable with leverage levels between 3x and 4x debt-to-equity, aiming for maximum return on equity while maintaining a well-managed balance sheet [42] 10. **Dividend Stability**: - The company emphasizes the stability and predictability of its dividend yield, which is currently at 8%, supported by a portfolio of first mortgage loans [50] Additional Important Insights - The company has maintained a strong credit performance throughout the pandemic, validating its low leverage lending strategy and asset selection [32] - BXMT's approach to new business lines is cautious, focusing on stability and predictability in income generation [46] - The correlation between originations and repayments is strong, suggesting a stable portfolio even in volatile market conditions [48]

Blackstone Mortgage Trust Inc. (NYSE:BXMT) Q4 2021 Earnings Conference Call February 9, 2022 9:00 AM ET Company Participants Weston Tucker - Head of shareholder relations Mike Nash - Executive Chairman Katharine Keenan - Chief Executive Officer Austin Pena - Executive Vice President Investments Anthony Marone - Chief Financial Officer Douglas Armer - Executive Vice President, Capital Markets Conference Call Participants Rick Shane - JPMorgan Donald Fandetti - Wells Fargo Douglas Harter - Credit Suisse Ti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 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 1-14788 ortgage Trust Tradingsymbol(s) $0.01pershareBXMT Blackstone Mortgage Trust, Inc. (Exact name of Registrant as specified in its charter) Mary ...

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]