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 ...

PART I [Business](index=5&type=section&id=ITEM%201.%20BUSINESS) The company is a real estate finance REIT focused on originating senior loans for commercial properties in major global markets - Blackstone Mortgage Trust is a real estate finance company focused on originating senior loans for commercial real estate in North America, Europe, and Australia and operates as a REIT externally managed by a subsidiary of Blackstone[13](index=13&type=chunk) - The company's investment guidelines stipulate that no more than **25% of its equity** can be invested in a single investment without board committee approval[36](index=36&type=chunk) Investment Portfolio Overview as of December 31, 2020 | Metric | Balance Sheet Portfolio | Total Loan Exposure | Total Investment Portfolio | | :--- | :--- | :--- | :--- | | Number of investments | 120 | 120 | 121 | | Principal balance | $16.7 billion | $17.5 billion | $18.2 billion | | Net book value | $16.4 billion | $16.4 billion | $16.5 billion | | Unfunded loan commitments | $3.2 billion | $4.0 billion | $4.0 billion | | Weighted-average all-in yield | L + 3.53% | L + 3.58% | L + 3.56% | | Origination LTV | 64.9% | 64.9% | 64.0% | Portfolio Financing as of December 31, 2020 | Financing Type | Outstanding Principal Balance | | :--- | :--- | | Secured debt agreements | $7.90 billion | | Securitizations | $3.60 billion | | Asset-specific financings | $1.20 billion | | **Total portfolio financing** | **$12.70 billion** | [Risk Factors](index=13&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces significant risks from the COVID-19 pandemic, lending activities, financing, and its external management structure [Risks Related to the Ongoing COVID-19 Pandemic](index=13&type=section&id=Risks%20Related%20to%20the%20Ongoing%20COVID-19%20Pandemic) The COVID-19 pandemic adversely impacted collateral values, increased loan modifications, and materially raised credit loss reserves - The company's portfolio, particularly assets in the hotel and retail sectors, has been negatively impacted, with **17% of total investment exposure in hospitality assets** as of December 31, 2020[51](index=51&type=chunk) - The company processed **49 loan modifications in 2020**, representing an aggregate principal balance of **$6.5 billion**, including term extensions and covenant waivers[51](index=51&type=chunk) - The company materially increased its Current Expected Credit Loss (CECL) reserve, with a **net increase of $167.7 million** recorded during 2020, bringing the total to **$185.4 million**[53](index=53&type=chunk) [Risks Related to Our Lending and Investment Activities](index=15&type=section&id=Risks%20Related%20to%20Our%20Lending%20and%20Investment%20Activities) Lending risks include borrower defaults, intense competition, asset illiquidity, and the transition away from LIBOR - The company faces **significant competition** from other financial entities, which may limit loan origination opportunities and negatively affect yields[39](index=39&type=chunk)[70](index=70&type=chunk) - The adoption of the **Current Expected Credit Loss (CECL) model** has materially affected the allowance for loan losses, potentially creating more earnings volatility[83](index=83&type=chunk)[85](index=85&type=chunk) - Investments in subordinated instruments like B-Notes and mezzanine loans expose the company to a **greater risk of loss** in a default scenario[90](index=90&type=chunk)[93](index=93&type=chunk) - The planned discontinuation of LIBOR creates uncertainty, as the transition to alternative rates like SOFR may **adversely affect net interest income** and increase financing costs[35](index=35&type=chunk)[113](index=113&type=chunk) [Risks Related to Our Financing and Hedging](index=31&type=section&id=Risks%20Related%20to%20Our%20Financing%20and%20Hedging) Significant debt usage exposes the company to restrictive covenants, margin calls, and imperfect hedging outcomes - The company's **significant debt** exposes it to risks such as insufficient cash flow for payments and violation of covenants[138](index=138&type=chunk)[140](index=140&type=chunk) - Financing facilities may require the company to provide **additional collateral or repay debt** if the market value of pledged assets declines[143](index=143&type=chunk)[144](index=144&type=chunk) - The use of non-recourse securitizations exposes the company to **magnified losses**, and Dodd-Frank risk retention rules may increase costs[155](index=155&type=chunk)[157](index=157&type=chunk) - Hedging activities may be ineffective and expose the company to counterparty credit risk, with derivative agreements totaling **$1.7 billion in notional value** as of December 31, 2020[159](index=159&type=chunk)[163](index=163&type=chunk) [Risks Related to Our Relationship with Our Manager and its Affiliates](index=38&type=section&id=Risks%20Related%20to%20Our%20Relationship%20with%20Our%20Manager%20and%20its%20Affiliates) The company's reliance on its external manager, a Blackstone affiliate, creates potential conflicts of interest and high termination costs - The company is **completely reliant on its external Manager**, an affiliate of Blackstone, and has no employees of its own[170](index=170&type=chunk)[171](index=171&type=chunk) - The Manager's fee structure may incentivize strategies that are **not optimal for stockholders**, such as taking on riskier investments to boost short-term income[175](index=175&type=chunk)[177](index=177&type=chunk) - **Significant conflicts of interest** exist as Blackstone manages other vehicles with overlapping investment strategies, potentially reducing opportunities for the company[178](index=178&type=chunk)[180](index=180&type=chunk) - Terminating the Management Agreement without cause is costly, requiring a termination fee equal to **three times the average annual base management and incentive fees**[194](index=194&type=chunk) [Risks Related to Our Company](index=48&type=section&id=Risks%20Related%20to%20Our%20Company) Operational risks include maintaining exclusion from the Investment Company Act, regulatory changes, and cybersecurity threats - The company must conduct its operations to **avoid being regulated as an investment company**, which may restrict certain attractive investments[200](index=200&type=chunk)[203](index=203&type=chunk) - **Changes in laws and regulations**, such as the Dodd-Frank Act, could negatively impact operations and impose additional costs[209](index=209&type=chunk)[213](index=213&type=chunk) - The company is exposed to operational risks, including **cybersecurity threats and system failures**, which could result in significant losses and business disruption[226](index=226&type=chunk)[228](index=228&type=chunk) [Risks Related to our REIT Status and Certain Other Tax Items](index=55&type=section&id=Risks%20Related%20to%20our%20REIT%20Status%20and%20Certain%20Other%20Tax%20Items) Maintaining REIT status requires strict compliance with tax code provisions, including annual distribution requirements - **Failure to maintain REIT qualification** would subject the company to corporate income tax and prevent requalification for four years[235](index=235&type=chunk) - To comply with REIT asset tests, the company must ensure that at least **75% of its assets are qualified real estate assets** at the end of each quarter[239](index=239&type=chunk) - The company may recognize **"phantom income"** where taxable income exceeds cash received, complicating its ability to meet the 90% distribution requirement[254](index=254&type=chunk)[255](index=255&type=chunk) [Risks Related to Our Class A Common Stock](index=61&type=section&id=Risks%20Related%20to%20Our%20Class%20A%20Common%20Stock) The company's stock price is subject to high volatility, and charter provisions may deter potential takeovers - The market price of the company's class A common stock has been **highly volatile**, fluctuating between a high of **$40.51** and a low of **$13.02** following the COVID-19 outbreak[269](index=269&type=chunk) - Provisions in the company's charter and Maryland law may **deter potential acquisitions**, limiting opportunities for stockholders to sell shares at a premium[272](index=272&type=chunk)[273](index=273&type=chunk)[276](index=276&type=chunk) - **Future issuances of equity or debt securities** may dilute existing shareholders' ownership and adversely affect the market price of the stock[287](index=287&type=chunk) [Unresolved Staff Comments](index=67&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports no unresolved staff comments from the Securities and Exchange Commission - There are **no unresolved staff comments**[298](index=298&type=chunk) [Properties](index=67&type=section&id=ITEM%202.%20PROPERTIES) The company's principal executive offices are located in leased space in New York and it does not own any real property - The company **leases its principal executive offices** and does not own any real property[299](index=299&type=chunk) [Legal Proceedings](index=67&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) As of year-end 2020, the company was not involved in any material legal proceedings - As of December 31, 2020, there were **no material legal proceedings** involving the company[300](index=300&type=chunk) [Mine Safety Disclosures](index=67&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company's business operations - **Not applicable**[301](index=301&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=68&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT'S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's stock trades on the NYSE, with dividends subject to board discretion and no Q4 2020 stock repurchases - The company's class A common stock is listed on the NYSE under the ticker symbol **"BXMT"**[304](index=304&type=chunk) - The company **did not repurchase any of its class A common stock** in the fourth quarter of 2020[306](index=306&type=chunk) [Selected Financial Data](index=69&type=section&id=ITEM%206.%20SELECTED%20FINANCIAL%20DATA) This section presents a five-year summary of key operating and balance sheet data, showing recent financial trends Selected Operating Data (2016-2020) | (in thousands, except per share) | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | Interest and related income | $779,648 | $882,679 | $756,109 | $537,915 | $497,974 | | Net income | $140,414 | $307,393 | $285,813 | $217,968 | $246,440 | | Net income per share (Basic & Diluted) | $0.97 | $2.35 | $2.50 | $2.27 | $2.53 | | Dividends declared per share | $2.48 | $2.48 | $2.48 | $2.48 | $2.48 | Selected Balance Sheet Data (2016-2020) | (in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total assets | $16,958,955 | $16,551,871 | $14,467,375 | $10,258,825 | $8,812,615 | | Total liabilities | $13,054,724 | $12,767,190 | $11,092,768 | $7,341,419 | $6,319,012 | | Total equity | $3,904,231 | $3,784,681 | $3,374,607 | $2,917,406 | $2,493,603 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=70&type=section&id=ITEM%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) The discussion details the financial impact of COVID-19, including a significant increase in the CECL reserve and its effect on net income [Key Financial Measures and Indicators](index=71&type=section&id=I.%20Key%20Financial%20Measures%20and%20Indicators) The company uses Distributable Earnings, a non-GAAP measure, to evaluate performance excluding certain non-cash items like the CECL reserve Key Metrics for FY 2020 | Metric | Value | | :--- | :--- | | Net Income per Share | $0.97 | | Distributable Earnings per Share | $2.48 | | Dividends Declared per Share | $2.48 | | Book Value per Share (as of 12/31/20) | $26.42 | Reconciliation of GAAP Net Income to Distributable Earnings (FY 2020 vs 2019) | (in thousands) | Year Ended Dec 31, 2020 | Year Ended Dec 31, 2019 | | :--- | :--- | :--- | | Net income attributable to BXMT | $137,670 | $305,567 | | Increase in CECL reserve | $167,653 | — | | Non-cash compensation expense | $34,532 | $30,656 | | Other adjustments | $12,135 | $14,472 | | **Distributable Earnings** | **$351,990** | **$350,695** | [Loan Portfolio](index=74&type=section&id=II.%20Loan%20Portfolio) The loan portfolio saw modest net growth in 2020, with a high interest collection rate despite an increase in its overall risk rating - The company collected **99.7% of contractual interest payments** due during 2020, demonstrating the general strength of its borrowers[320](index=320&type=chunk)[337](index=337&type=chunk) - The **weighted-average risk rating** of the loan portfolio increased from **2.8 to 3.0** at year-end 2020, primarily due to downgrades of loans impacted by COVID-19[343](index=343&type=chunk) - The total **CECL reserve increased by $167.7 million** during 2020 to a total of **$185.4 million**, reflecting the macroeconomic impact of the pandemic[346](index=346&type=chunk) Loan Activity for Year Ended December 31, 2020 | Activity | Amount (in billions) | | :--- | :--- | | Loan originations | $1.6 | | Loan fundings | $2.1 | | Loan repayments and sales | $2.0 | | **Total net fundings** | **$0.14** | [Results of Operations](index=84&type=section&id=III.%20Our%20Results%20of%20Operations) Net income decreased significantly in 2020 due to a large provision for credit losses, while net interest income remained stable - The decrease in net income in 2020 was primarily due to the **$167.7 million increase in the CECL reserve**, reflecting the impact of the COVID-19 pandemic[375](index=375&type=chunk)[381](index=381&type=chunk) - **Net interest income increased by $8.0 million** year-over-year, driven by a larger loan portfolio and the benefit of interest rate floors[376](index=376&type=chunk) Consolidated Results of Operations (2018-2020) | (in thousands) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Income from loans and other investments, net | $432,177 | $424,176 | $396,484 | | Total other expenses | $123,787 | $117,289 | $110,363 | | Increase in current expected credit loss reserve | ($167,653) | — | — | | **Net income attributable to BXMT** | **$137,670** | **$305,567** | **$285,078** | | **Net income per share – basic and diluted** | **$0.97** | **$2.35** | **$2.50** | [Liquidity and Capital Resources](index=87&type=section&id=IV.%20Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position, increasing total available liquidity to $1.1 billion and improving its debt-to-equity ratio - Primary liquidity needs include funding **$3.2 billion in unfunded loan commitments**, for which the company has identified financing for $2.2 billion[405](index=405&type=chunk) Sources of Liquidity | (in thousands) | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Cash and cash equivalents | $289,970 | $150,090 | | Available borrowings under secured debt agreements | $829,165 | $598,840 | | Loan principal payments held by servicer, net | $19,460 | $1,965 | | **Total Liquidity** | **$1,138,595** | **$750,895** | Leverage Ratios | Ratio | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Debt-to-equity ratio | 2.5x | 3.0x | | Total leverage ratio | 3.6x | 3.7x | [Other Items](index=90&type=section&id=V.%20Other%20Items) This section covers the company's REIT tax status, lack of off-balance sheet arrangements, and critical accounting policies like CECL - The company has elected to be taxed as a REIT and must **distribute at least 90% of its net taxable income annually** to maintain this status[413](index=413&type=chunk)[417](index=417&type=chunk) - The company adopted the **CECL accounting standard** on January 1, 2020, resulting in an initial charge to retained earnings of **$17.7 million**[421](index=421&type=chunk)[427](index=427&type=chunk) - The company's primary credit quality indicator is an **internal 5-point risk rating system**, and the CECL reserve for impaired loans is based on collateral fair value[425](index=425&type=chunk)[430](index=430&type=chunk) [Loan Portfolio Details](index=95&type=section&id=VI.%20Loan%20Portfolio%20Details) This section provides a comprehensive, loan-by-loan breakdown of the company's portfolio as of December 31, 2020 - A detailed table presents specifics for each of the **120 loans in the portfolio** as of December 31, 2020, including metrics like principal balance, coupon, and risk rating[435](index=435&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=100&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is primarily exposed to interest rate risk, credit risk heightened by the pandemic, and currency risk from foreign investments - The company's business model is **positively correlated to rising interest rates**, as 98% of its investments earn a floating rate of interest[441](index=441&type=chunk) - Credit risk is actively managed, and in response to COVID-19, the company closed **49 loan modifications in 2020**, representing **$6.5 billion in principal**[449](index=449&type=chunk) - The company mitigates currency risk by matching the currency of its foreign assets with borrowings and using **foreign currency forward contracts** to hedge its net asset exposure[457](index=457&type=chunk)[460](index=460&type=chunk) Interest Rate Sensitivity Analysis (12-Month Impact) | Change in Benchmark Rates | Impact on Net Interest Income (in thousands) | | :--- | :--- | | +50 basis points | ($16,463) | | +25 basis points | ($8,699) | | -25 basis points | $4,811 | | -50 basis points | $4,913 | [Financial Statements and Supplementary Data](index=104&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This item refers to the company's audited consolidated financial statements and supplementary data included in the report - The company's financial statements and supplementary data are located in the report **starting on page F-1**[461](index=461&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=104&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - **None reported**[462](index=462&type=chunk) [Controls and Procedures](index=104&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and internal control over financial reporting were effective - Management concluded that the company's **disclosure controls and procedures were effective** as of the end of the fiscal year[463](index=463&type=chunk) - Management's report on internal control over financial reporting concluded that such controls were **effective as of December 31, 2020**, with an unqualified opinion from the auditor[466](index=466&type=chunk)[469](index=469&type=chunk)[470](index=470&type=chunk) [Other Information](index=105&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) The company reports no other information for this item - **None**[471](index=471&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=106&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Required information is incorporated by reference from the company's 2021 definitive proxy statement - Information is **incorporated by reference** from the company's definitive proxy statement[473](index=473&type=chunk) [Executive Compensation](index=106&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Required information is incorporated by reference from the company's 2021 definitive proxy statement - Information is **incorporated by reference** from the company's definitive proxy statement[474](index=474&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=106&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) This section provides information on equity compensation plans and incorporates other details by reference - Other information required by this item is **incorporated by reference** from the company's definitive proxy statement[476](index=476&type=chunk) Equity Compensation Plan Information as of December 31, 2020 | Plan category | Securities to be issued upon exercise of outstanding options, warrants, and rights | Weighted-average exercise price | Securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 306,691 | — | 2,263,098 | | Equity compensation plans not approved by security holders | — | — | — | | **Total** | **306,691** | **—** | **2,263,098** | [Certain Relationships and Related Transactions, and Director Independence](index=106&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Required information is incorporated by reference from the company's 2021 definitive proxy statement - Information is **incorporated by reference** from the company's definitive proxy statement[477](index=477&type=chunk) [Principal Accountant Fees and Services](index=106&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Required information is incorporated by reference from the company's 2021 definitive proxy statement - Information is **incorporated by reference** from the company's definitive proxy statement[478](index=478&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=107&type=section&id=ITEM%2015.%20EXHIBITS%2C%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists all financial statements, schedules, and exhibits filed as part of the annual report - This item provides an **index of all financial statements, schedules, and exhibits** included with or incorporated by reference into the annual report[479](index=479&type=chunk)[481](index=481&type=chunk) [Form 10-K Summary](index=117&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY) The company indicates that no Form 10-K summary is provided - **None**[493](index=493&type=chunk)

Financial Data and Key Metrics Changes - The company reported GAAP net income per share of $0.61 and core earnings of $0.63 for Q3 2020, with a dividend of $0.62 per share [6][25] - The book value increased to $26.51 per share, up by $0.06 from the previous quarter, primarily due to a reduction in CECL reserves [27] - The portfolio size was $18.1 billion, slightly up due to higher foreign exchange rates [30] Business Line Data and Key Metrics Changes - The office portfolio showed strong performance with rent collections averaging 95% despite COVID-19 impacts [17] - The company had no new four or five-rated loans and no new specific CECL reserves during the quarter, indicating strong credit performance [10][31] - The company completed 11 loan modifications, reflecting continued support from borrowers [29] Market Data and Key Metrics Changes - The company maintained a weighted average origination LTV of 64%, indicating significant equity from well-capitalized institutional borrowers [31] - The company has $1.2 billion of liquidity at quarter-end, positioning it well for new originations [10] Company Strategy and Development Direction - The company focuses on senior mortgage lending on high-quality real estate with strong sponsors, aiming to leverage its diversified balance sheet [7] - The company is seeing a reemergence of lending opportunities, with $230 million of new loans in closing [22][76] - The company emphasizes the importance of high-quality assets and sponsors to navigate the post-COVID environment [18][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's quality and the strength of the balance sheet to outperform in the recovery phase [13] - The company views the impact of COVID-19 on the hospitality sector as cyclical rather than secular, anticipating a rebound in travel and leisure [40] - Management noted that while transaction activity remains muted, there are signs of normalcy returning to the market [20][57] Other Important Information - The company has no corporate debt maturing until 2022, with 97% of asset-level financing term-matched to underlying collateral [32] - The leadership of the loan asset management function is transitioning, with Rob Sitman succeeding Tom Ruffing [36][37] Q&A Session Summary Question: Can you talk about your hotel portfolio this quarter? - Management noted that the hotel market is disrupted but believes the impact is cyclical. They have been selective in hotel lending, focusing on low LTV loans [40][41] Question: What modifications are being made? - Modifications generally involve extending timelines in exchange for additional capital from sponsors, with strong interest payments being collected [42] Question: Is there any sponsor concentration risk? - The company has a well-diversified portfolio with strong sponsors, which is viewed as a strength rather than a weakness [48][49] Question: What drove the changes in CECL reserves? - Changes in CECL reserves were primarily due to foreign exchange rates and estimated loan tenor adjustments, not indicative of credit deterioration [50][51] Question: What is the competitive environment for large loans? - The company maintains a competitive advantage in making large loans on high-quality assets, with a unique position in the market [54][55] Question: What is the outlook for new loan commitments? - The company has $230 million of new loans in closing, indicating active engagement in the market despite cautious selection [76]

Mortgage Trust Blackstone Mortgage Trust Reports Third Quarter 2020 Results New York, October 29, 2020: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its third quarter 2020 results. Stephen D. Plavin, Chief Executive Officer, said, "BXMT's strong third-quarter results reflect the earnings power and credit performance of our loan portfolio, as well as the benefits of a focused strategy of senior lending backed by top-quality properties with well-capitalized, institutional borrowers." Blackstone ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides detailed financial statements, management's discussion and analysis, and disclosures on market risks and internal controls [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents unaudited consolidated financial statements, including balance sheets, income statements, and cash flows, highlighting key financial positions and performance Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$16,876,804** | **$16,551,871** | | Loans receivable, net | $16,291,677 | $16,164,801 | | Cash and cash equivalents | $427,028 | $150,090 | | **Total Liabilities** | **$12,972,852** | **$12,767,190** | | Secured debt agreements, net | $8,973,810 | $10,054,930 | | **Total Equity** | **$3,903,952** | **$3,784,681** | Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Income from loans and other investments, net | $114,961 | $101,916 | $322,727 | $314,465 | | Net income attributable to Blackstone Mortgage Trust | $89,860 | $74,897 | $54,054 | $226,635 | | Net income per share (diluted) | $0.61 | $0.56 | $0.39 | $1.76 | - The company adopted the new accounting standard ASU 2016-13 (CECL) on January 1, 2020, resulting in a **$17.7 million** cumulative-effect adjustment to retained earnings[91](index=91&type=chunk)[55](index=55&type=chunk) [Note 3. Loans Receivable, Net](index=20&type=section&id=Note%203.%20LOANS%20RECEIVABLE%2C%20NET) The loan portfolio, totaling **$16.6 billion** in principal, saw its weighted-average risk rating increase to 3.0 due to COVID-19, with a **$177.0 million** CECL reserve Loan Portfolio Statistics | Metric | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Number of loans | 123 | 128 | | Principal balance | $16.6 billion | $16.3 billion | | Net book value | $16.3 billion | $16.2 billion | | Unfunded loan commitments | $3.3 billion | $3.9 billion | | Weighted-average all-in yield | L + 3.53% | L + 3.55% | - The loan portfolio is primarily concentrated in Office (**60%**), Hospitality (**13%**), and Multifamily (**11%**) properties, with **70%** located in the United States[99](index=99&type=chunk)[101](index=101&type=chunk) - The weighted-average risk rating increased to **3.0** from **2.8** due to **$3.2 billion** in downgraded loans, reflecting higher risk from the COVID-19 pandemic[107](index=107&type=chunk) - The total CECL reserve for loans receivable was **$177.0 million**, including specific reserves for two troubled debt restructurings placed on non-accrual status[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) [Note 5. Secured Debt Agreements, Net](index=28&type=section&id=Note%205.%20SECURED%20DEBT%20AGREEMENTS%2C%20NET) Secured debt decreased to **$9.0 billion** as of September 30, 2020, with amendments made to credit facilities in Q2 2020 to suspend credit mark provisions Secured Debt Balances (in thousands) | Debt Type | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Secured credit facilities | $8,651,313 | $9,753,059 | | Asset-specific financings | $348,964 | $330,879 | | **Total secured debt** | **$9,000,277** | **$10,083,938** | - In Q2 2020, agreements with seven lenders for **$7.9 billion** in secured credit facilities were amended to temporarily suspend credit mark provisions in exchange for repayments and additional collateral[128](index=128&type=chunk) [Note 10. Equity](index=40&type=section&id=Note%2010.%20EQUITY) The company issued **10.8 million** shares of class A common stock, raising **$297.6 million** in net proceeds, and declared consistent dividends of **$0.62** per share for Q3 - In June 2020, the company completed a public offering of **10,000,000** shares of class A common stock, generating **$278.3 million** in net proceeds[179](index=179&type=chunk) Dividends Declared Per Share | Period | 2020 | 2019 | | :--- | :--- | :--- | | **Three Months Ended Sep 30** | $0.62 | $0.62 | | **Nine Months Ended Sep 30** | $1.86 | $1.86 | [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the COVID-19 pandemic's impact, highlighting **99%** Q3 interest collection, **$0.62** dividend, **$0.63** Core Earnings per share, and a **$191.2 million** CECL reserve - The COVID-19 pandemic has significantly disrupted industries underlying loan collateral, prompting active engagement with borrowers and lenders[253](index=253&type=chunk)[256](index=256&type=chunk) Key Financial Indicators (Q3 2020) | Indicator | Value | | :--- | :--- | | Earnings Per Share | $0.61 | | Dividends Declared | $0.62 | | Core Earnings Per Share | $0.63 | | Book Value Per Share | $26.51 | - The company collected **99%** of Q3 2020 contractual interest payments and executed **11** loan modifications in Q3 (**$1.7 billion** principal) and **13** in Q2 (**$2.4 billion** principal) to address pandemic pressures[272](index=272&type=chunk)[273](index=273&type=chunk) - The total Current Expected Credit Loss (CECL) reserve reached **$191.2 million** as of September 30, 2020, reflecting a **$173.5 million** increase due to the COVID-19 pandemic's macroeconomic impact[283](index=283&type=chunk) Leverage Ratios | Ratio | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Debt-to-equity ratio | 2.6x | 3.0x | | Total leverage ratio | 3.6x | 3.7x | [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=74&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, followed by heightened credit risk due to COVID-19, and mitigated currency risk - The company's net income is positively correlated with rising interest rates, as **98%** of investments are floating-rate, with a **50 basis point** rate increase decreasing net interest income by **$19.6 million** annually[346](index=346&type=chunk)[349](index=349&type=chunk) - Credit risk increased due to the COVID-19 pandemic, managed through active asset management and loan modifications, with a low weighted-average LTV of **63.6%** providing an equity cushion[355](index=355&type=chunk)[356](index=356&type=chunk) - Currency risk is actively managed by matching foreign asset and borrowing currencies and using forward contracts to hedge net exposure to major currencies[364](index=364&type=chunk)[366](index=366&type=chunk) [ITEM 4. Controls and Procedures](index=78&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of September 30, 2020, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the report period end[367](index=367&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[369](index=369&type=chunk) [PART II. OTHER INFORMATION](index=79&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, and other standard disclosures, confirming no material changes or significant events [ITEM 1. Legal Proceedings](index=80&type=section&id=ITEM%201.%20Legal%20Proceedings) The company reported no material legal proceedings as of September 30, 2020 - The company reports no material legal proceedings as of September 30, 2020[371](index=371&type=chunk) [ITEM 1A. Risk Factors](index=80&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors from the 2019 Form 10-K and Q1 2020 Form 10-Q were reported - No material changes to previously disclosed risk factors from the 2019 Form 10-K and Q1 2020 Form 10-Q were reported[372](index=372&type=chunk) [Other Items (Items 2-6)](index=80&type=section&id=ITEMS%202-6) This section covers standard disclosures, reporting no unregistered equity sales, no defaults on senior securities, and no other material information - The company reported no activity under Item 2 (Unregistered Sales of Equity Securities), Item 3 (Defaults Upon Senior Securities), or Item 5 (Other Information)[373](index=373&type=chunk)[374](index=374&type=chunk)[376](index=376&type=chunk)

Blackstone Mortgage Trust, Inc. (NYSE:BXMT) Q2 2020 Earnings Conference Call July 29, 2020 9:00 AM ET Company Participants Weston Tucker – Head-Investor Relations Steve Plavin – Chief Executive Officer Tony Marone – Chief Financial Officer Doug Armer – Executive Vice President-Capital Markets Conference Call Participants Don Fandetti – Wells Fargo Doug Harter – Credit Suisse Steve Delaney – JMP Securities Jade Rahmani – KBW Charlie Arestia – JPMorgan Stephen Laws – Raymond James George Bahamondes – Deutsche ...

Mortgage Trust Blackstone Mortgage Trust Reports Second Quarter 2020 Results New York, July 29, 2020: Blackstone Mortgage Trust, Inc. (NYSE:BXMT) today reported its second quarter 2020 results. Stephen D. Plavin, Chief Executive Officer, said, "BXMT's key advantages—our $18 billion senior mortgage loan portfolio, well- capitalized balance sheet and market-leading real estate platform—all contributed to our strong second quarter performance. We again collected 100% of borrower interest while raising $607 mil ...

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 JUNE 30, 2020 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 94-61811 ...

Blackstone Mortgage Trust, Inc. (NYSE:BXMT) Q1 2020 Earnings Conference Call April 29, 2020 10:00 AM ET Company Participants Weston Tucker - Head of Investor Relations Stephen Plavin - Chief Executive Officer Anthony Marone - Chief Financial Officer, Principal Accounting Officer and Assistant Secretary Katharine Keenan - President Douglas Armer - Executive Vice President of Capital Markets and Treasurer Conference Call Participants Richard Shane - JPMorgan Chase & Co. Steven Delaney - JMP Securities LLC Dou ...