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Item 9A. Controls and Procedures

2022-02-09 compared with 2021-02-10 · 929 added, 930 removed, 1163 unchanged (62% of the section changed)

1 unchanged sentence

Evaluation of Disclosure Controls and Procedures

The company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e)

and 15d-15(e)

under the Exchange Act) that are designed to ensure that information required to be disclosed in the company’s reports under the Exchange Act is recorded, processed, and summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

The company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in the company’s reports under the Exchange Act is recorded, processed, and summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this annual report on Form 10-K

was made under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer.

Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (a) are effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this annual report on Form 10-K was made under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer.

or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

9 unchanged sentences

In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Management conducted an assessment of the effectiveness of Blackstone Mortgage Trust’s internal control over financial reporting as of December 31, 2020, based on the framework established in Internal Control—Integrated Framework

issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.

Management conducted an assessment of the effectiveness of Blackstone Mortgage Trust’s internal control over financial reporting as of December 31, 2021, based on the framework established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.

Based on this assessment, management has determined that Blackstone Mortgage Trust’s internal control over financial reporting as of December 31, 2021, was effective.

Deloitte & Touche LLP, an independent registered public accounting firm, has audited Blackstone Mortgage Trust’s financial statements included in this report on Form 10-K

and issued its report on the effectiveness of Blackstone Mortgage Trust’s internal control over financial reporting as of December 31, 2020, which is included herein.

Deloitte & Touche LLP, an independent registered public accounting firm, has audited Blackstone Mortgage Trust’s financial statements included in this report on Form 10-K and issued its report on the effectiveness of Blackstone Mortgage Trust’s internal control over financial reporting as of December 31, 2021, which is included herein.

OTHER INFORMATION

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

5 unchanged sentences

The following table summarizes information, as of December 31, 2021, relating to our equity compensation plans pursuant to which shares of our class A common stock or other equity securities may be granted from time to time:

Plan category

Plan category (a)

Number of securities

13 unchanged sentences

Equity compensation plans approved by security holders (1)

$ — 1,170,042

Equity compensation plans not approved by security holders (3)

Total 363,572 $ — 1,170,042

(1) The number of securities remaining for future issuances consists of an aggregate 1,170,042 shares issuable under our 2018 stock incentive plan and our 2018 manager incentive plan.

Awards under the plans may include restricted stock, unrestricted stock, stock options, stock units, stock appreciation rights, performance shares, performance units, deferred share units, or other equity-based awards, as the board of directors may determine.

Reflects deferred stock units granted to our non-employee

The deferred stock units are settled upon the non-employee

director’s separation from service with the company by delivering to the non-employee

director one share of class A common stock for each deferred stock unit settled.

(2) Reflects deferred stock units granted to our non-employee directors.

The deferred stock units are settled upon the non-employee director’s separation from service with the company by delivering to the non-employee director one share of class A common stock, or the cash equivalent, for each deferred stock unit settled.

As these awards have no exercise price, the weighted average exercise price in column (b) does not take these awards into account.

5 unchanged sentences

The information required by this item is incorporated by reference to the company’s definitive proxy statement to be filed not later than April 30, 2022 with the SEC pursuant to Regulation 14A under the Exchange Act.

EXHIBITS, FINANCIAL STATEMENT SCHEDULES

Financial Statements

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) (1) Financial Statements

See the accompanying Index to Financial Statement Schedule on page F-1.

Consolidated Financial Statement Schedules

(a) (2) Consolidated Financial Statement Schedules

See the accompanying Index to Financial Statement Schedule on page F-1.

(a) (3) Exhibits

EXHIBIT INDEX

3 unchanged sentences

1-14788) filed on October 3, 2012 and incorporated herein by reference)

Articles of Amendment and Restatement (filed as Exhibit 3.1.a to the Registrant’s Current Report on Form 8-K (File No.

2.2* Amendment No.

1 to Purchase and Sale Agreement, dated July 21, 2021, by and between Blackstone Mortgage Trust, Inc.

(formerly known as Capital Trust, Inc.) and Huskies Acquisition LLC

3.1.a Articles of Amendment and Restatement (filed as Exhibit 3.1.a to the Registrant’s Current Report on Form 8-K (File No.

1-14788) filed on April 2, 2003 and incorporated herein by reference)

Certificate of Notice (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No.

3.1.b Certificate of Notice (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No.

1-14788) filed on February 27, 2007 and incorporated herein by reference)

Articles Supplementary for Series A Junior Participating Preferred Stock (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No.

3.1.c Articles Supplementary for Series A Junior Participating Preferred Stock (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No.

1-14788) filed on March 3, 2011 and incorporated herein by reference)

Articles of Amendment (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No.

3.1.d Articles of Amendment (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No.

1-14788) filed on December 21, 2012 and incorporated herein by reference)

Articles of Amendment (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No.

3.1.e Articles of Amendment (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No.

1-14788) filed on May 7, 2013 and incorporated herein by reference)

Articles Supplementary (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No.

3.1.f Articles Supplementary (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No.

1-14788) filed on May 29, 2013 and incorporated herein by reference)

Articles of Amendment, dated April 13, 2015 (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No.

3.1.g Articles of Amendment, dated April 13, 2015 (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No.

1-14788) filed on April 13, 2015 and incorporated herein by reference)

Articles of Amendment dated June 8, 2020 (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 11, 2020 and incorporated herein by reference)

3.1.h Articles of Amendment dated June 8, 2020 (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 11, 2020 and incorporated herein by reference)

3.2 Fifth Amended and Restated Bylaws of Blackstone Mortgage Trust, Inc.

2 unchanged sentences

4.1 Description of Securities of Blackstone Mortgage Trust, Inc.

(filed as Exhibit 4.1 to the Registrant's Annual Report on Form 10-K (file No.

1-14788) filed on February 10, 2021 and incorporated herein by reference)

4.2 Indenture, dated as of November 25, 2013, between Blackstone Mortgage Trust, Inc.

1 unchanged sentence

1-14788) filed on November 25, 2013 and incorporated herein by reference)

Second Supplemental Indenture, dated May 5, 2017, between Blackstone Mortgage Trust, Inc.

4.3 Second Supplemental Indenture, dated as of May 5, 2017, between Blackstone Mortgage Trust, Inc.

and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No.

1 unchanged sentence

4.4 Form of 4.375% Convertible Senior Notes due 2022 (included as Exhibit A in Exhibit 4.3)

Third Supplemental Indenture, dated March 27, 2018, between Blackstone Mortgage Trust, Inc.

4.5 Third Supplemental Indenture, dated as of March 27, 2018, between Blackstone Mortgage Trust, Inc.

and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No.

1 unchanged sentence

4.6 Form of 4.75% Convertible Senior Notes due 2023 (included as Exhibit A in Exhibit 4.5)

Exhibit Description

4.7 Indenture, dated October 5, 2021, among Blackstone Mortgage Trust, Inc., the Guarantors and The Bank of New York Mellon Trust Company, N.A., as trustee and collateral agent (filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No.

001-14788) filed on October 5, 2021 and incorporated herein by reference)

4.8 Form of 3.750% Senior Secured Notes due 2027 (included as Exhibit B to Exhibit 4.7)

4.9 Pledge and Security Agreement, dated as of October 5, 2021, by and among Blackstone Mortgage Trust, Inc., the other grantors from time to time party thereto and The Bank of New York Mellon Trust Company, N.A., as collateral agent (filed as Exhibit 4.3 to the Registrant’s Current Report on Form 8-K (File No.

001-14788) filed on October 5, 2021 and incorporated herein by reference)

4.9 First Lien Intercreditor Agreement, dated as of October 5, 2021, by and among Blackstone Mortgage Trust, Inc., JPMorgan Chase Bank, N.A., as agent under the Term Loan Credit Agreement, and The Bank of New York Mellon Trust Company, N.A., as trustee and notes collateral agent (filed as Exhibit 4.4 to the Registrant’s Current Report on Form 8-K (File No.

001-14788) filed on October 5, 2021 and incorporated herein by reference)

10.1 Second Amended and Restated Management Agreement, dated as of October 23, 2014, by and between Blackstone Mortgage Trust, Inc.

42 unchanged sentences

1-14788) filed on June 17, 2016 and incorporated herein by reference)

Exhibit Description

10.15 + Form of Restricted Stock Award of Blackstone Mortgage Trust, Inc.

21 unchanged sentences

1-14788) filed on December 21, 2012 and incorporated herein by reference)

Master Repurchase Agreement, dated as of May 21, 2013, by and between Bank of America, N.A.

and Parlex 1 Finance, LLC (filed as Exhibit 10.25 of the Registrant’s Registration Statement on Form S-11 (No.

333-187541) filed on May 22, 2013 and incorporated herein by reference)

Joinder Agreement, dated as of September 23, 2013, by Parlex 1 Finance, LLC, Parlex 3 Finance LLC and Bank of America, N.A.

(filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on October 29, 2013 and incorporated herein by reference)

Joinder Termination Agreement, dated as of March 25, 2016, among Parlex 1 Finance, LLC, Parlex 3 Finance, LLC and Bank of America, N.A.

(filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 26, 2016 and incorporated herein by reference)

Amendment No.

1 to Master Repurchase Agreement, dated as of September 23, 2013, by and between Bank of America, N.A.

and Parlex 1 Finance, LLC (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on October 29, 2013 and incorporated herein by reference)

Amendment No.

2 to Master Repurchase Agreement, dated as of June 30, 2014, by and among Parlex 1 Finance, LLC, Parlex 3 Finance, LLC, and Bank of America, N.A.

(filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 28, 2015 and incorporated herein by reference)

Amendment No.

3 to Master Repurchase Agreement, dated as of March 27, 2015, by and among Parlex 1 Finance, LLC, Parlex 3 Finance, LLC, and Bank of America, N.A.

(filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 28, 2015 and incorporated herein by reference)

Exhibit Description

Amendment No.

4 to Master Repurchase Agreement, dated as of March 25, 2016, by and between Parlex 1 Finance, LLC and Bank of America, N.A.

(filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 26, 2016 and incorporated herein by reference)

Amendment No.

5 to Master Repurchase Agreement, dated as of December 21, 2017, among Parlex 1 Finance, LLC and Bank of America, N.A.

(filed as Exhibit 10.7 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 24, 2018 and incorporated herein by reference)

Amendment No.

6 to Master Repurchase Agreement, dated as of March 30, 2018, among Parlex 1 Finance, LLC and Bank of America, N.A.

(filed as Exhibit 10.8 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 24, 2018 and incorporated herein by reference)

Amendment No.

7 to Master Repurchase Agreement, dated as of December 19, 2019, among Parlex 1 Finance, LLC and Bank of America, N.A.

(filed as Exhibit 10.32 to the Registrant’s Annual Report on Form 10-K (File No.

1-14788) filed on February 11, 2020 and incorporated herein by reference)

Amendment No.

8 to Master Repurchase Agreement, dated as of February 19, 2020, among Parlex 1 Finance, LLC and Bank of America, N.

(filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 28, 2020 and incorporated herein by reference)

Guarantee Agreement, dated as of May 21, 2013, made by Blackstone Mortgage Trust, Inc.

in favor of Bank of America, N.A.

(filed as Exhibit 10.26 of the Registrant’s Registration Statement on Form S-11 (No.

333-187541) filed on May 22, 2013 and incorporated herein by reference)

Amendment No.

1 to Guarantee Agreement, dated as of September 23, 2013, made by Blackstone Mortgage Trust, Inc.

in favor of Bank of America, N.A.

(filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on October 29, 2013 and incorporated herein by reference)

Amendment No.

2 to Guarantee Agreement, dated as of February 21, 2014, made by Blackstone Mortgage Trust, Inc.

in favor of Bank of America, N.A.

(filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 29, 2014 and incorporated herein by reference)

Amendment No.

3 to Guarantee Agreement, dated as of November 25, 2019, made by Blackstone Mortgage Trust, Inc.

in favor of Bank of America, N.A.

(filed as Exhibit 10.36 to the Registrant’s Annual Report on Form 10-K (File No.

1-14788) filed on February 11, 2020 and incorporated herein by reference)

Fourth Amended and Restated Master Repurchase Agreement, dated as of February 15, 2019, among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Parlex 2 UK Finco, LLC, Parlex 2 Eur Finco, LLC, Parlex 2 AU Finco, LLC, Parlex 2 CAD Finco, LLC and Citibank, N.A.

(filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 23, 2019 and incorporated herein by reference)

First Amendment, dated as of June 7, 2019, to Fourth Amended and Restated Master Repurchase Agreement, dated as of February 15, 2019, among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Parlex 2 UK Finco, LLC, Parlex 2 Eur Finco, LLC, Parlex 2 AU Finco, LLC, Parlex 2 CAD Finco, LLC and Citibank, N.A.

10.23 Fifth Amended and Restated Master Repurchase Agreement, dated as of April 16, 2021, among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Parlex 2 UK Finco, LLC, Parlex 2 Eur Finco, LLC, Parlex 2 AU Finco, LLC, Parlex 2 CAD Finco, LLC and Citibank, N.A.

(filed as Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q (File NO.

1-14788) filed on July 28, 2021 and incorporated herein by reference)

Exhibit Description

Second Amendment, dated as of July 16, 2019, to Fourth Amended and Restated Master Repurchase Agreement by and among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Parlex 2 UK Finco, LLC, Parlex 2 Eur Finco, LLC, Parlex 2 AU Finco, LLC, Parlex 2 CAD Finco, LLC and Citibank, N.A.

(filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on October 23, 2019 and incorporated herein by reference)

Third Amendment, dated as of February 19, 2020, to Fourth Amended and Restated Master Repurchase Agreement, dated as of February 15, 2019, among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Parlex 2 UK Finco, LLC, Parlex 2 Eur Finco, LLC, Parlex 2 AU Finco, LLC, Parlex 2 CAD Finco, LLC, and Citibank, N.A.

(filed as Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 28, 2020 and incorporated herein by reference)

Fourth Amendment, dated as of September 30, 2020, to Fourth Amended and Restated Master Repurchase Agreement, dated as of February 15, 2019, among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Parlex 2 UK Finco, LLC, Parlex 2 Eur Finco, LLC, Parlex 2 AU Finco, LLC, Parlex 2 CAD Finco, LLC, and Citibank, N.A.

First Amendment to Fifth Amended and Restated Master Repurchase Agreement, dated as of August 26, 2021, among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Parlex 2 UK Finco, LLC, Parlex 2 EUR Finco, LLC, Parlex 2 AU Finco, LLC, Parlex 2 CAD Finco, LLC, Wispar 5 Finco, LLC and Citibank, N.A.

(filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on October 27, 2021 and incorporated herein by reference)

10.25* Second Amendment to Fifth Amended and Restated Master Repurchase Agreement, dated as of December 24, 2021, among Parlex 2 Finance, LLC, Parlex 2A Finco, LLC, Parlex 2 UK Finco, LLC, Parlex 2 EUR Finco, LLC, Parlex 2 AU Finco, LLC, Parlex 2 CAD Finco, LLC, Wispar 5 Finco, LLC and Citibank, N.A.

10.26 Limited Guaranty, dated as of June 12, 2013, made by Blackstone Mortgage Trust, Inc.

22 unchanged sentences

1-14788) filed on April 23, 2019 and incorporated herein by reference)

10.32 Sixth Amendment to Limited Guaranty, dated as of April 16, 2021, by and between Blackstone Mortgage Trust, Inc.

and Citibank, N.A.

(filed as Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on July 28, 2021 and incorporated herein by reference)

10.33 Guarantee Agreement, dated as of March 13, 2014, made by Blackstone Mortgage Trust, Inc.

4 unchanged sentences

1-14788) filed on April 28, 2015 and incorporated herein by reference)

Exhibit Description

10.35 Amendment No.

11 unchanged sentences

10.39 Amendment No.

5 to Amended and Restated Master Repurchase and Securities Contract, dated June 30, 2016, by and between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.

5 to Amended and Restated Master Repurchase and Securities Contract, dated June 30, 2016, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on July 26, 2016 and incorporated herein by reference)

10.40 Amendment No.

6 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 13, 2017, by and between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (File No.

6 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 13, 2017, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 25, 2017 and incorporated herein by reference)

10.41 Amendment No.

7 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 31, 2017, by and between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q (File No.

7 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 31, 2017, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 25, 2017 and incorporated herein by reference)

11 unchanged sentences

1-14788) filed on April 28, 2020 and incorporated herein by reference)

Exhibit Description

10.46 Amendment No.

1 unchanged sentence

1-14788) filed on April 28, 2020 and incorporated herein by reference)

10.47 Amendment No.

13 to Amended and Restated Master Repurchase and Securities Contract, dated as of March 12, 2021, between Parlex 5 Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 28, 2021 and incorporated herein by reference)

10.48 Fourth Amended and Restated Master Repurchase and Securities Contract, dated as of June 30, 2016, by and among Parlex 5 Ken Finco, LLC, Parlex 5 Ken UK Finco, LLC, Parlex 5 Ken CAD Finco, LLC, Parlex 5 Ken ONT Finco, LLC, Parlex 5 Ken EUR Finco, LLC and Wells Fargo Bank, National Association (filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (File No.

9 unchanged sentences

1-14788) filed on July 26, 2016 and incorporated herein by reference)

Master Repurchase Agreement, dated as of June 27, 2014, between Parlex 7 Finco, LLC and Metropolitan Life Insurance Company (filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on July 29, 2014 and incorporated herein by reference)

Amendment No.

1 to Master Repurchase Agreement, dated as of February 24, 2015, by and between Parlex 7 Finco, LLC and Metropolitan Life Insurance Company (filed as Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 28, 2015 and incorporated herein by reference)

Amendment No.

2 to Master Repurchase Agreement, dated as of April 22, 2016, by and between Parlex 7 Finco, LLC and Metropolitan Life Insurance Company (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on July 26, 2016 and incorporated herein by reference)

Amendment No.

3 to Master Repurchase Agreement, dated as of April 21, 2017, by and between Parlex 7 Finco, LLC and Metropolitan Life Insurance Company (filed as Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on July 25, 2017 and incorporated herein by reference)

Amendment No.

4 to Master Repurchase Agreement, dated as of September 23, 2019, by and between Parlex 7 Finco, LLC and Metropolitan Life Insurance Company (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on October 23, 2019 and incorporated herein by reference)

Guaranty, dated as of June 27, 2014, made by Blackstone Mortgage Trust, Inc., in favor of Metropolitan Life Insurance Company (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on October 28, 2014 and incorporated herein by reference)

Exhibit Description

10.52 Second Amended and Restated Master Repurchase Agreement, dated as of December 16, 2019, by and among Parlex 15 Finco, LLC and Deutsche Bank AG, Cayman Islands Branch (filed as Exhibit 10.67 to the Registrant’s Annual Report on Form 10-K (File No.

12 unchanged sentences

1-14788) filed on October 29, 2020 and incorporated herein by reference)

10.57 Second Amendment, dated March 19, 2021, to Amended and Restated Master Repurchase Agreement, dated as of June 19, 2019, by and among Parlex 3A Finco, LLC, Parlex 3A UK Finco, LLC, Parlex 3A Eur Finco, LLC, Parlex 3A Sek Finco, LLC and Barclays Bank plc (filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (file No.

1-14788) filed on April 28, 2021 and incorporated herein by reference)

10.58 Amended and Restated Guaranty, dated as of June 19, 2019, made by Blackstone Mortgage Trust, Inc.

12 unchanged sentences

1-14788) filed on July 29, 2020 and incorporated herein by reference)

Exhibit Description

10.63 Third Amendment to Term Loan Credit Agreement, dated as of June 11, 2020, by and among Blackstone Mortgage Trust, Inc., the subsidiary guarantors party thereto, each lender party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (filed as Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on July 29, 2020 and incorporated herein by reference)

10.64 Fourth Amendment to Term Loan Credit Agreement, dated as of February 19, 2021, by and among Blackstone Mortgage Trust, Inc., the subsidiary guarantors party thereto, each lender party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on April 28, 2021 and incorporated herein by reference)

10.65 Fifth Amendment to Term Loan Credit Agreement, dated as of June 21, 2021, by and among Blackstone Mortgage Trust, Inc., the subsidiary guarantors party thereto, each lender party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on July 28, 2021 and incorporated herein by reference)

10.66 Loan Guaranty, entered into as of April 23, 2019, by and among the subsidiary guarantors and other persons from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (filed as Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q (File No.

2 unchanged sentences

1-14788) filed on July 29, 2020 and incorporated herein by reference)

10.68 Master Repurchase Agreement, dated as of May 14, 2021, by and among Parlex 8 USD IE Issuer Designated Activity Company, Parlex 8 GBP IE Issuer Designated Activity Company, Parlex 8 EUR IE Issuer Designated Activity Company, Banco Santander, S.A., Parlex 8 Finco, LLC, Parlex 8 GBP Finco, LLC and Parlex 8 EUR Finco, LLC (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on July 28, 2021 and incorporated herein by reference)

10.69 Guaranty, dated as of May 14, 2021, made by Blackstone Mortgage Trust, Inc., for the benefit of Parlex 8 USD IE Issuer Designated Activity Company, Parlex 8 GBP IE Issuer Designated Activity Company and Parlex 8 EUR IE Issuer Designated Activity Company (filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q (File No.

1-14788) filed on July 28, 2021 and incorporated herein by reference)

21.1 * Subsidiaries of Blackstone Mortgage Trust, Inc.

6 unchanged sentences

Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

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101.LAB ++ Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE ++ Inline XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF ++ Inline XBRL Taxonomy Extension Definition Linkbase Document

104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

Pursuant to the requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FORM 10-K SUMMARY

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BLACKSTONE MORTGAGE TRUST, INC.

February 10, 2021

/s/ Stephen D.

February 9, 2022 By:

/s/ Katharine A.

Date Katharine A.

Chief Executive Officer

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Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

February 10, 2021

/s/ Michael B.

February 9, 2022 /s/ Michael B.

Date Michael B.

Executive Chairman of the Board of Directors

February 10, 2021

/s/ Stephen D.

February 9, 2022 /s/ Katharine A.

Date Katharine A.

Chief Executive Officer and Director

(Principal Executive Officer)

February 10, 2021

/s/ Anthony F.

February 9, 2022 /s/ Anthony F.

Date Anthony F.

Chief Financial Officer

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Principal Accounting Officer)

February 10, 2021

/s/ Leonard W.

February 9, 2022 /s/ Leonard W.

Date Leonard W.

Cotton, Director

February 10, 2021

/s/ Thomas E.

February 9, 2022 /s/ Thomas E.

Date Thomas E.

Dobrowski, Director

February 10, 2021

/s/ Martin L.

February 9, 2022 /s/ Martin L.

Date Martin L.

Edelman, Director

February 10, 2021

February 9, 2022 /s/ Nnenna J.

Date Nnenna J.

Lynch, Director

February 9, 2022 /s/ Henry N.

Date Henry N.

Nassau, Director

February 10, 2021

/s/ Jonathan L.

February 9, 2022 /s/ Jonathan L.

Date Jonathan L.

Pollack, Director

February 10, 2021

February 9, 2022 /s/ Lynne B.

Date Lynne B.

Sagalyn, Director

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE

Report of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm (PCAOB ID No.

Consolidated Balance Sheets as of December 31, 2021 and 2020

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and subsidiaries (the "Company") as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2021, and the related notes and the schedule listed in the Index at Item 15(a) (collectively referred to as the "financial statements").

We also have audited the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013)

issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

We also have audited the Company’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013)

issued by COSO.

Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

Change in Accounting Principle

“Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326).”

As discussed in Note 2 to the financial statements, the Company has changed its method of accounting for credit losses in the year ended December 31, 2020 due to adoption of Accounting Standard Update, or ASU, 2016-13 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326).”

Basis for Opinions

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Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and

operating effectiveness of internal control based on the assessed risk.

Our audits also included performing such other procedures as we considered necessary in the circumstances.

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A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and

that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;

and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

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The items considered in management’s estimation include unemployment rates, interest rates and other macroeconomic factors impacting the likelihood and magnitude of potential credit losses for the Company’s loans during their anticipated term.

We identified the adjustments to the CECL reserve to reflect management’s estimation of the current and future economic conditions that may impact the performance of the commercial real estate assets securing the Company’s loans as a critical audit matter because of the subjectivity, complexity and estimation uncertainty in

such adjustments made to account for the macroeconomic factors.

This required a high degree of auditor judgment and an increased extent of effort when performing audit procedures to evaluate whether the adjustments determined by management reasonably and appropriately quantify macroeconomic risks associated with the Company’s loan portfolio.

How the Critical Audit Matter Was Addressed in the Audit

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• We tested the accuracy and completeness of quantitative data used by management to develop the adjustments to account for current and future economic conditions.

• We utilized credit specialists to assist in the evaluation of management’s CECL methodology and assumptions, including the estimation of economic conditions.

CECL Reserve – Estimation of Fair Value of Underlying Collateral of Impaired Loans – Refer to Note 2 and Note 3 in the Financial Statements

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• We utilized our internal fair value specialists to assist in the evaluation of management’s valuation methodologies and assumptions.

With the assistance of our internal fair value specialists, we evaluated certain of these assumptions (e.g., guideline transactions, discount rates, capitalization rates).

internal fair value specialist procedures included testing the underlying source information of the assumptions, as well as developing a range of independent estimates and comparing those to the assumptions used by management.

With the assistance of our specialists, we evaluated certain of these assumptions (e.g., guideline transactions, discount rates, capitalization rates).

Our internal specialist procedures included testing the underlying source information of the assumptions, as well as developing a range of independent estimates and comparing those to the assumptions used by management.

/s/ Deloitte & Touche LLP

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(in thousands, except share data)

December 31, 2021 December 31, 2020

Cash and cash equivalents $ 551,154 $ 289,970

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Loans receivable, net 21,878,338 16,399,166

Other assets 273,797 269,819

Total Assets $ 22,703,289 $ 16,958,955

Liabilities and Equity

Secured debt agreements, net

Secured debt, net $ 12,280,042 $ 7,880,536

Securitized debt obligations, net 2,838,062 2,922,499

Asset-specific debt agreements, net

Secured term loans, net

Asset-specific debt, net 393,824 391,269

Term loans, net 1,327,406 1,041,704

Senior secured notes, net 394,010 —

Convertible notes, net 619,876 616,389

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Commitments and contingencies — —

Class A common stock, $ 0.01 par value, 400,000,000 shares authorized and 146,780,031 shares issued and outstanding as of December 31, 2020, and 200,000,000 shares authorized and 135,003,662 shares issued and outstanding as of December 31, 2019

Additional paid-in

Accumulated other comprehensive income (loss)

Class A common stock, $ 0.01 par value, 400,000,000 shares authorized, 168,179,798 and 146,780,031 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively

Additional paid-in capital 5,373,029 4,702,713

Accumulated other comprehensive income 8,308 11,170

Accumulated deficit ( 794,832 ) ( 829,284 )

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stockholders’ equity 4,588,187 3,886,067

Non-controlling

Non-controlling interests 30,524 18,164

Total Equity 4,618,711 3,904,231

Total Liabilities and Equity $ 22,703,289 $ 16,958,955

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Year Ended December 31,

2021 2020 2019

Income from loans and other investments

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Total other expenses 131,635 123,787 117,289

Increase in current expected credit loss reserve

Decrease (increase) in current expected credit loss reserve 39,864 ( 167,653 ) —

Income before income taxes 422,696 140,737 306,887

Income tax provision (benefit) 423 323 ( 506 )

Net income attributable to non-controlling

Net income 422,273 140,414 307,393

Net income attributable to non-controlling interests ( 3,080 ) ( 2,744 ) ( 1,826 )

Net income attributable to Blackstone Mortgage Trust, Inc.

$ 419,193 $ 137,670 $ 305,567

Net income per share of common stock basic and diluted $ 2.77 $ 0.97 $ 2.35

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Year Ended December 31,

Other comprehensive income

Unrealized gain (loss) on foreign currency translation

Realized and unrealized (loss) gain on derivative financial instruments

Other comprehensive income (loss)

2021 2020 2019

Net income $ 422,273 $ 140,414 $ 307,393

Other comprehensive (loss) income

Unrealized (loss) gain on foreign currency translation ( 84,470 ) 87,113 23,920

Realized and unrealized gain (loss) on derivative financial instruments 81,608 ( 59,710 ) ( 5,931 )

Other comprehensive (loss) income ( 2,862 ) 27,403 17,989

Comprehensive income 419,411 167,817 325,382

Comprehensive income attributable to non-controlling

Comprehensive income attributable to non-controlling interests ( 3,080 ) ( 2,744 ) ( 1,826 )

Comprehensive income attributable to Blackstone Mortgage Trust, Inc.

$ 416,331 $ 165,073 $ 323,556

See accompanying notes to consolidated financial statements.

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Blackstone Mortgage Trust, Inc.

Additional Paid-

Stock Additional Paid-

Accumulated Other

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Balance at December 31, 2018

$ 1,234 $ 3,966,540 $ ( 34,222 ) $ ( 569,428 ) $ 3,364,124 $ 10,483 $ 3,374,607

Shares of class A common stock issued, net 116 372,232 — — 372,348 — 372,348

Restricted class A common stock earned — 30,146 — — 30,146 — 30,146

Issuance of convertible notes

Conversion of convertible notes

Dividends reinvested — 596 — 42 638 — 638

Deferred directors’ compensation — 500 — — 500 — 500

Other comprehensive loss

Dividends declared on common stock, $ 2.48 per share

Contributions from non-controlling

Distributions to non-controlling

Net income — — — 305,567 305,567 1,826 307,393

Other comprehensive income — — 17,989 — 17,989 — 17,989

Dividends declared on common stock and deferred stock units, $ 2.48 per share

— — — ( 328,729 ) ( 328,729 ) — ( 328,729 )

Contributions from non-controlling interests — — — — — 51,418 51,418

Distributions to non-controlling interests — — — — — ( 41,629 ) ( 41,629 )

Balance at December 31, 2019

$ 1,350 $ 4,370,014 $ ( 16,233 ) $ ( 592,548 ) $ 3,762,583 $ 22,098 $ 3,784,681

Adoption of ASU 2016-13 — — — ( 17,565 ) ( 17,565 ) ( 85 ) ( 17,650 )

Shares of class A common stock issued, net 118 297,491 — — 297,609 — 297,609

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Deferred directors’ compensation — 500 — — 500 — 500

Net income — — — 137,670 137,670 2,744 140,414

Other comprehensive income — — 27,403 — 27,403 — 27,403

Dividends declared on common stock, $ 2.48 per share

Contributions from non-controlling

Distributions to non-controlling

Dividends declared on common stock and deferred stock units, $ 2.48 per share

— — — ( 356,892 ) ( 356,892 ) — ( 356,892 )

Contributions from non-controlling interests — — — — — 8,431 8,431

Distributions to non-controlling interests — — — — — ( 15,024 ) ( 15,024 )

Balance at December 31, 2020

Adoption of ASU 2016-13

$ 1,468 $ 4,702,713 $ 11,170 $ ( 829,284 ) $ 3,886,067 $ 18,164 $ 3,904,231

Shares of class A common stock issued, net 214 637,802 — — 638,016 — 638,016

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Deferred directors’ compensation — 595 — — 595 — 595

Other comprehensive income

Dividends declared on common stock, $ 2.48 per share

Contributions from non-controlling

Distributions to non-controlling

Net income — — — 419,193 419,193 3,080 422,273

Other comprehensive loss — — ( 2,862 ) — ( 2,862 ) — ( 2,862 )

Dividends declared on common stock and deferred stock units, $ 2.48 per share

— — — ( 384,741 ) ( 384,741 ) — ( 384,741 )

Contributions from non-controlling interests — — — — — 55,912 55,912

Distributions to non-controlling interests — — — — — ( 46,632 ) ( 46,632 )

Balance at December 31, 2021

$ 1,682 $ 5,373,029 $ 8,308 $ ( 794,832 ) $ 4,588,187 $ 30,524 $ 4,618,711

See accompanying notes to consolidated financial statements.

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Year Ended December 31,

2021 2020 2019

Cash flows from operating activities

Net income $ 422,273 $ 140,414 $ 307,393

Adjustments to reconcile net income to net cash provided by operating activities

compensation expense

Satisfaction of management and incentive fees in stock — 19,277 —

Non-cash compensation expense 31,647 34,532 30,656

Amortization of deferred fees on loans and debt securities ( 68,905 ) ( 56,844 ) ( 57,926 )

Amortization of deferred financing costs and premiums/

discount on debt obligations

Increase in current expected credit loss reserve

Amortization of deferred financing costs and premiums/ discount on debt obligations 41,002 37,403 32,195

(Decrease) increase in current expected credit loss reserve ( 39,864 ) 167,653 —

Unrealized (gain) loss on assets denominated in foreign currencies, net ( 6,866 ) ( 3,366 ) 881

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Changes in assets and liabilities, net

Other assets ( 21,616 ) 3,352 ( 7,355 )

Other liabilities 24,856 ( 6,311 ) ( 747 )

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Cash flows from investing activities

Origination and fundings of loans receivable

Principal fundings of loans receivable ( 12,550,463 ) ( 1,896,276 ) ( 6,890,249 )

Principal collections and sales proceeds from loans receivable and debt securities 6,730,339 1,850,003 4,940,194

Loan contributed to securitization

Investment in debt securities held-to-maturity

Origination and exit fees received on loans receivable 143,002 21,275 66,558

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Year Ended December 31,

2021 2020 2019

Cash flows from financing activities

Borrowings under secured debt agreements

Repayments under secured debt agreements

Proceeds from issuance of

securitized debt

Repayment of securitized debt

Borrowings under asset-specific debt agreements

Repayments under asset-specific debt agreements

Borrowings under secured debt $ 12,475,664 $ 2,567,834 $ 6,322,165

Repayments under secured debt ( 7,801,330 ) ( 4,690,607 ) ( 5,526,989 )

Proceeds from issuance of securitized debt obligations 803,750 2,051,875 —

Repayment of securitized debt obligations ( 888,763 ) ( 300,879 ) ( 102,478 )

Borrowings under asset-specific debt 272,065 161,960 247,295

Repayments under asset-specific debt ( 271,065 ) ( 82,754 ) —

Proceeds from sale of loan participations — — 21,346

Repayment of loan participations — — ( 115,874 )

Net proceeds from issuance of secured term loan

Repayments of secured term loan

Net proceeds from issuance of term loans 298,500 315,438 748,414

Repayments of term loans ( 13,495 ) ( 9,113 ) ( 3,122 )

Proceeds from issuance of senior secured notes 400,000 — —

Payment of deferred financing costs ( 43,725 ) ( 47,345 ) ( 39,370 )

Contributions from non-controlling

Distributions to non-controlling

Net proceeds from issuance of convertible notes

Repayment of convertible notes

Contributions from non-controlling interests 55,912 8,431 51,418

Distributions to non-controlling interests ( 46,632 ) ( 15,024 ) ( 41,629 )

Net proceeds from issuance of class A common stock 638,005 278,322 372,337

Dividends paid on class A common stock ( 370,662 ) ( 348,907 ) ( 320,961 )

Net cash (used in) provided by financing activities

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities 5,508,224 ( 110,769 ) 1,612,552

Net increase in cash and cash equivalents 263,246 137,587 45,441

Cash and cash equivalents at beginning of year 289,970 150,090 105,662

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Payments of interest $ ( 287,715 ) $ ( 312,093 ) $ ( 425,801 )

(Payments) receipts of income taxes

Supplemental disclosure of non-cash

investing and financing activities

Receipts (payments) of income taxes $ 73 $ ( 232 ) $ 109

Supplemental disclosure of non-cash investing and financing activities

Dividends declared, not paid $ ( 104,271 ) $ ( 91,004 ) $ ( 83,702 )

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We are not in the business of buying or trading securities, and the only securities we own are the retained interests from our securitization financing transactions, which we have not financed.

We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of The Blackstone Group Inc., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” Our principal executive offices are located at 345 Park Avenue, 15th Floor, New York, New York 10154.

We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” Our principal executive offices are located at 345 Park Avenue, 24th Floor, New York, New York 10154.

We were incorporated in Maryland in 1998, when we reorganized from a California common law business trust into a Maryland corporation.

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All intercompany balances and transactions have been eliminated in consolidation.

Certain reclassifications have been made in the presentation of the prior period balance sheet, statements of cash flows, and secured debt agreements in Note 5 to conform to the current period presentation.

Certain reclassifications have been made in the presentation of the prior period statements of changes in equity, statements of cash flows, and loans receivable in Note 3 to conform to the current period presentation.

Principles of Consolidation

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In the third quarter of 2018, we contributed a loan to a single asset securitization vehicle, or the 2018 Single Asset Securitization, which is a VIE, and invested in the related subordinate position.

We are not the primary

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

beneficiary of the VIE because we do not have the power to direct the activities that most significantly affect the VIE’s economic performance and, therefore, do not consolidate the 2018 Single Asset Securitization on our balance sheet.

We have classified the subordinate position we own as a held-to-maturity

debt security that is included in other assets on our consolidated balance sheets.

We are not the primary beneficiary of the VIE because we do not have the power to direct the activities that most significantly affect the VIE’s economic performance and, therefore, do not consolidate the 2018 Single Asset Securitization on our balance sheet.

We have classified the subordinate position we own as a held-to-maturity debt security that is included in other assets on our consolidated balance sheets.

Refer to Note 17 for additional discussion of our VIEs.

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We consolidate the Multifamily Joint Venture as we have a controlling financial interest.

The non-controlling

interests included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are owned by Walker & Dunlop.

A portion of our Multifamily Joint Venture’s consolidated equity and results of operations are allocated to these non-controlling

interests based on Walker & Dunlop’s pro rata ownership of our Multifamily Joint Venture.

The non-controlling interests included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are owned by Walker & Dunlop.

A portion of our

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Multifamily Joint Venture’s consolidated equity and results of operations are allocated to these non-controlling interests based on Walker & Dunlop’s pro rata ownership of our Multifamily Joint Venture.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

As of December 31, 2020, there is an ongoing global outbreak of a novel coronavirus, or COVID-19.

In March 2020, the World Health Organization designated COVID-19

as a pandemic, and numerous countries, including the United States, declared national emergencies with respect to COVID-19.

The United States and other countries reacted to the COVID-19

outbreak with unprecedented government intervention, including interest rate cuts and economic stimulus.

The global impact of the outbreak rapidly evolved (and continues to do so), and many countries reacted by instituting, or strongly encouraging, quarantines and restrictions on travel, closing financial markets and/or restricting trading, limiting operations of non-essential

offices, retail centers, hotels, and other businesses, and taking other restrictive measures designed to help slow the spread of COVID-19.

Businesses also implemented similar precautionary measures.

Such measures, as well as the general uncertainty surrounding the dangers and impact of COVID-19,

have created disruption in global supply chains, increasing rates of unemployment and adversely impacting many industries, including industries related to the collateral underlying certain of our loans.

Moreover, with the continued spread of COVID-19,

governments and businesses are likely to continue to take aggressive measures to help slow its spread.

For this reason, among others, as COVID-19

continues to spread, the potential impacts, including a global, regional, or other economic recession, are increasingly uncertain and difficult to assess.

The rapid development and fluidity of this situation preclude any prediction as to the ultimate adverse impact of COVID-19

on economic and market conditions.

will have on the global economy generally, and our business in particular, makes any estimates and assumptions as of December 31, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19.

Actual results may ultimately differ materially

from those estimates.

As the novel coronavirus, or COVID-19, pandemic has evolved from its emergence in early 2020, so has its global impact.

During the year ended December 31, 2021, many countries have re-instituted, or strongly encouraged, varying levels of quarantines and restrictions on travel and in some cases have at times limited operations of certain businesses and taken other restrictive measures designed to help slow the spread of COVID-19 and its variants.

Governments and businesses have also instituted vaccine mandates and testing requirements for employees.

While vaccine availability and uptake has increased, the longer-term macro-economic effects on global supply chains, inflation, labor shortages and wage increases continue to impact many industries, including the collateral underlying certain of our loans.

Moreover, with the potential for new strains of COVID-19 to emerge, governments and businesses may re-impose aggressive measures to help slow its spread in the future.

For this reason, among others, as the COVID-19 pandemic continues, the potential global impacts are uncertain and difficult to assess.

We believe the estimates and assumptions underlying our consolidated financial statements are reasonable and supportable based on the information available as of December 31, 2021, however uncertainty over the ultimate impact COVID-19 will have on the global economy generally, and our business in particular, makes any estimates and assumptions as of December 31, 2021 inherently less certain than they would be absent the current and potential impacts of COVID-19.

Actual results may ultimately differ materially from those estimates.

Revenue Recognition

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Recognition of fees, premiums, and discounts associated with these investments is deferred and recorded over the term of the loan or debt security as an adjustment to yield.

Income accrual is generally suspended for loans at the earlier of the date

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

at which payments become 90 days past due or when, in the opinion of our Manager, recovery of income and principal becomes doubtful .

Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of our Manager, recovery of income and principal becomes doubtful.

Interest received is then recorded as a reduction in the outstanding principal balance until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed.

In addition, for loans we originate, the related origination expenses are deferred and recognized as a component of interest income, however

expenses related to loans we acquire are included in general and administrative expenses as incurred.

In addition, for loans we originate, the related origination expenses are deferred and recognized as a component of interest income, however expenses related to loans we acquire are included in general and administrative expenses as incurred.

Cash and Cash Equivalents

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Debt Securities Held-to-Maturity

We classify our debt securities as held-to-maturity,

as we have the intent and ability to hold these securities until maturity.

We classify our debt securities as held-to-maturity, as we have the intent and ability to hold these securities until maturity.

We include our debt securities in other assets on our consolidated balance sheets at amortized cost.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Current Expected Credit Losses Reserve

The current expected credit loss, or CECL, reserve required under Accounting Standard Update, or ASU, 2016-13

“Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326),” or ASU 2016-13,

reflects our current estimate of potential credit losses related to our loans and debt securities included in our consolidated balance sheets.

The current expected credit loss, or CECL, reserve required under Accounting Standard Update, or ASU, 2016-13 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326),” or ASU 2016-13, reflects our current estimate of potential credit losses related to our loans and debt securities included in our consolidated balance sheets.

The initial CECL reserve recorded on January 1, 2020 is reflected as a direct charge to retained earnings on our consolidated statements of changes in equity;

however subsequent changes to the CECL reserve are recognized through net income on our consolidated statements of operations.

While ASU 2016-13

does not require any particular method for determining the CECL reserve, it does specify the reserve should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan.

In addition, other than a few narrow exceptions, ASU 2016-13

requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the GAAP principal underlying the CECL model that all loans, debt securities, and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

While ASU 2016-13 does not require any particular method for determining the CECL reserve, it does specify the reserve should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan.

In addition, other than a few narrow exceptions, ASU 2016-13 requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the GAAP principal underlying the CECL model that all loans, debt securities, and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors.

We estimate our CECL reserve primarily using the Weighted Average Remaining Maturity, or WARM method, which has been identified as an acceptable loss-rate method for estimating CECL reserves in the Financial Accounting Standards Board Staff Q&A Topic 326, No.

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Application of the WARM method to estimate a CECL reserve requires judgment, including (i) the appropriate historical loan loss reference data, (ii) the expected timing and amount of future loan fundings and repayments, and (iii) the current credit quality of our portfolio and our expectations of performance and market conditions over the relevant time period.

To estimate the historic loan losses relevant to our portfolio, we have augmented our historical loan performance, which includes zero realized loan losses since the launch of our senior loan origination business in 2013, with market loan loss data licensed from Trepp LLC.

To estimate the historic loan losses relevant to our portfolio, we have augmented our historical loan performance, with market loan loss data licensed from Trepp LLC.

This database includes commercial mortgage-backed securities, or CMBS, issued since January 1, 1999 through November 30, 2021.

Within this database, we focused our historical loss reference calculations on the most relevant subset of available CMBS data, which we determined based on loan metrics that are most comparable to our loan portfolio including asset type, geography, and origination loan-to-value,

We believe this CMBS data, which includes month-over-month loan and property performance, is the most relevant, available, and comparable dataset to our portfolio.

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WARM method that incorporates a subset of historical loss data, expected weighted average remaining maturity of our loan pool, and an economic view.

• Unique Loans :

a probability of default and loss given default model, assessed on an individual basis.

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The CECL reserve is assessed on an individual basis for these loans by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan.

These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed relevant by our Manager.

Actual losses, if any, could ultimately

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

differ materially from these estimates.

sponsorship, actions of other lenders, and other factors deemed relevant by our Manager.

Actual losses, if any, could ultimately differ materially from these estimates.

We only expect to realize the impairment losses if and when such amounts are deemed nonrecoverable upon a realization event.

This is generally at the time a loan is repaid, or in the case of foreclosure, when the underlying asset is sold, but non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected.

We adopted ASU 2016-13

using the modified-retrospective method for all financial assets measured at amortized cost.

We adopted ASU 2016-13 using the modified-retrospective method for all financial assets measured at amortized cost.

Prior to our adoption, we had no loan loss provisions on our consolidated balance sheets.

2 unchanged sentences

Impact of ASU 2016-13

Loans $ 8,955

Unique Loans 1,356

CECL reserve on loans $ 13,942

CECL reserve on held-to-maturity

debt securities

CECL reserve on held-to-maturity debt securities 445

CECL reserve on unfunded loan commitments 3,263

Total impact of ASU 2016-13

adoption on retained earnings

Total impact of ASU 2016-13 adoption on retained earnings $ 17,650

Contractual Term and Unfunded Loan Commitments

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Our Manager performs a quarterly risk review of our portfolio of loans, and assigns each loan a risk rating based on a variety of factors, including, without limitation, LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship.

Based on a 5-point

scale, our loans are rated “l” through “5,” from less risk to greater risk, relative to our loan portfolio in the aggregate, which ratings are defined as follows:

Based on a 5-point scale, our loans are rated “l” through “5,” from less risk to greater risk, relative to our loan portfolio in the aggregate, which ratings are defined as follows:

1 - Very Low Risk

3 - Medium Risk

4 - High Risk/Potential for Loss:

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We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets at fair value.

On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or non-designated

For all derivatives other than those designated as non-designated

hedges, we formally document our hedge relationships and designation at the contract’s inception.

For all derivatives other than those designated as non-designated hedges, we formally document our hedge relationships and designation at the contract’s inception.

This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction.

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To the extent a derivative does not qualify for hedge accounting and is deemed a non-designated hedge, the changes in its fair value are included in net income concurrently.

Secured Debt Agreements and Asset-Specific Debt Agreements

Where applicable, we record investments financed with secured debt agreements or asset-specific debt agreements as separate assets and the related borrowings under any secured debt agreements or asset-specific debt agreements are recorded as separate liabilities on our consolidated balance sheets.

Interest income earned on

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements ( continued

the investments and interest expense incurred on the secured debt agreements or asset-specific debt agreements are reported separately on our consolidated statements of operations.

Secured Debt and Asset-Specific Debt

We record investments financed with secured debt or asset-specific debt as separate assets and the related borrowings under any secured debt or asset-specific debt are recorded as separate liabilities on our consolidated balance sheets.

Interest income earned on the investments and interest expense incurred on the secured debt or asset-specific debt are reported separately on our consolidated statements of operations.

Senior Loan Participations

In certain instances, we finance our loans through the non-recourse syndication

of a senior loan interest to a third-party.

In certain instances, we finance our loans through the non-recourse syndication of a senior loan interest to a third-party.

Depending on the particular structure of the syndication, the senior loan interest may remain on our GAAP balance sheet or, in other cases, the sale will be recognized and the senior loan interest will no longer be included in our consolidated financial statements.

When these sales are not recognized under GAAP we reflect the transaction by recording a loan participations sold liability on our consolidated balance sheet, however this gross presentation does not impact stockholders’ equity or net income.

When the sales are recognized, our balance sheet only includes our remaining subordinate loan and not the non-consolidated senior

interest we sold.

Secured Term Loans

We record our secured term loans as liabilities on our consolidated balance sheets.

Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the secured term loans as additional non-cash

interest expense.

When the sales are recognized, our balance sheet only includes our remaining subordinate loan and not the non-consolidated senior interest we sold.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

We record our term loans as liabilities on our consolidated balance sheets.

Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the term loans as additional non-cash interest expense.

Senior Secured Notes

We record our senior secured notes as liabilities on our consolidated balance sheets.

Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the senior secured notes as additional non-cash interest expense.

Convertible Notes

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We measured the estimated fair value of the debt component of our convertible notes as of the respective issuance dates based on our nonconvertible debt borrowing rate.

The equity component of each series of our convertible notes is reflected within additional paid-in

capital on our consolidated balance sheet, and the resulting issue discount is amortized over the period during which such convertible notes are expected to be outstanding (through the maturity date) as additional non-cash

interest expense.

The additional non-cash

interest expense attributable to such convertible notes will increase in subsequent periods through the maturity date as the notes accrete to their par value over the same period.

The equity component of each series of our convertible notes is reflected within additional paid-in capital on our consolidated balance sheet, and the resulting issue discount is amortized over the period during which such convertible notes are expected to be outstanding (through the maturity date) as additional non-cash interest expense.

The additional non-cash interest expense attributable to such convertible notes will increase in subsequent periods through the maturity date as the notes accrete to their par value over the same period.

Deferred Financing Costs

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Fair Value of Financial Instruments

The “Fair Value Measurements and Disclosures” Topic o f

the FASB, or ASC 820

, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under

The “Fair Value Measurements and Disclosures” Topic o f the FASB, or ASC 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP.

Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments.

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These inputs require significant judgment or estimation by management of third-parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed of members of senior management of our Manager, including our Chief Executive Officer, Chief Financial Officer, and other senior officers.

Certain of our other assets are reported at fair value, as of quarter-end,

either (i) on a recurring basis or (ii) on a nonrecurring basis, as a result of impairment or other events.

Certain of our other assets are reported at fair value, as of quarter-end, either (i) on a recurring basis or (ii) on a nonrecurring basis, as a result of impairment or other events.

Our assets that are recorded at fair value are discussed further in Note 16.

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During the year ended December 31, 2020, we recorded an aggregate $ 69.7 million CECL reserve specifically related to two of our loans receivable with an aggregate outstanding principal balance of $ 338.7 million, as of December 31,

During the year ended December 31, 2020, we recorded an aggregate $ 69.7 million CECL reserve specifically related to two of our loans receivable.

During the three months ended December 31, 2021, we charged off $ 14.4 million of the CECL reserve related to one of our loans receivable, bringing this asset-specific CECL reserve to $ 54.9 million as of December 31, 2021.

The $ 54.9 million CECL reserve specifically related to one of our loans receivable with an outstanding principal balance of $ 286.3 million, net of cost-recovery proceeds, as of December 31, 2021.

The CECL reserve was recorded based on our Manager’s estimation of the fair value of the loan’s underlying collateral as of December 31, 2021.

These loans receivable are therefore measured at fair value on a nonrecurring basis using significant unobservable inputs, and are classified as Level 3 assets in the fair value hierarchy.

The significant unobservable inputs used to estimate the fair value of these loans receivable include the exit capitalization rate assumption used to forecast the future sale price of the underlying real estate collateral, which ranged from 4.25 % to 4.80 %.

We are also required by GAAP to disclose fair value information about financial instruments, which are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair

value for those instruments.

These disclosure requirements exclude certain financial instruments and all

non-financial

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

This loan receivable is therefore measured at fair value on a nonrecurring basis using significant unobservable inputs, and is classified as a Level 3 asset in the fair value hierarchy.

The significant unobservable inputs used to estimate the fair value of this loan receivable include the exit capitalization rate assumption of 4.80 % used to forecast the future sale price of the underlying real estate collateral and the unlevered discount rate of 8.30 %, in addition to reviewing comparable sales on a per-key basis.

These disclosure requirements exclude certain financial instruments and all non-financial instruments.

The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value:

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The fair value of our foreign currency and interest rate contracts was estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads.

Secured debt agreements, net:

• Secured debt, net:

The fair value of these instruments was estimated based on the rate at which a similar credit facility would currently be priced.

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In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price.

Asset-specific debt agreements, net:

• Asset-specific debt, net:

The fair value of these instruments was estimated based on the rate at which a similar agreement would currently be priced.

Secured term loans, net:

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

• Term loans, net:

The fair value of these instruments was estimated by utilizing third-party pricing service providers.

• Senior secured notes, net:

The fair value of these instruments was estimated by utilizing third-party pricing service providers.

• Convertible notes, net:

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Our financial results generally do not reflect provisions for current or deferred income taxes on our REIT taxable income.

We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a

result, we generally do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries.

We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries.

If we were to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and penalties.

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Stock-Based Compensation

Our stock-based compensation consists of awards issued to our Manager and certain individuals employed by an affiliate of our Manager that vest over the life of the awards, as well as deferred stock units issued to certain

members of our board of directors.

Stock-based compensation expense is recognized for these awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A common stock.

Refer to Note 15 for additional information.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Earnings per Share

Basic earnings per share, or Basic EPS, is computed in accordance with the two-class

method and is based on the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by the weighted-average number of shares of our class A common stock, including restricted class A common stock and deferred stock units outstanding during the period.

Our restricted class A common stock is considered a participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class

method as these restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or losses.

Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by the weighted-average number of shares of our class A common stock, including restricted class A common stock and deferred stock units outstanding during the period.

Our restricted class A common stock is considered a participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or losses.

Diluted earnings per share, or Diluted EPS, is determined using the treasury stock method, and is based on the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by the weighted-average number of shares of our class A common stock, including restricted class A common stock and deferred stock units.

10 unchanged sentences

Underwriting Commissions and Offering Costs

Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a reduction of additional paid-in

Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a reduction of additional paid-in capital.

Costs incurred that are not directly associated with the completion of a common stock offering are expensed when incurred.

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13

“Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326),” or ASU 2016-13.

significantly changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income.

replaced the incurred loss model under previous guidance with a CECL model for instruments measured at amortized cost, and requires entities to record reserves for available-for-sale

debt securities rather than reduce the carrying amount, as they did previously under the other-than-temporary impairment model.

It also simplified the accounting model for purchased credit-impaired debt securities and loans.

We adopted ASU 2016-13

on January 1, 2020, and recorded a $ 17.7 million cumulative-effect adjustment to retained earnings.

In March 2020, the FASB issued ASU

“Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” or ASU

provides optional

and exceptions to GAAP requirements for modifications on debt instruments, leases, derivatives, and other contracts, related to the expected market transition from LIBOR, and certain other floating rate benchmark indices, or collectively, IBORs, to alternative reference rates.

generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination.

The guidance in ASU

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

optional and may be elected over time, through December 31, 2022, as reference rate reform activities occur.

Once ASU 2020-04

is elected, the guidance must be applied prospectively for all eligible contract modifications.

Recent Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” or ASU 2020-04.

ASU 2020-04 provides optional expedients and exceptions to GAAP requirements for modifications on debt instruments, leases, derivatives, and other contracts, related to the expected market transition from LIBOR, and certain other floating rate benchmark indices, or collectively, IBORs, to alternative reference rates.

ASU 2020-04 generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination.

In January 2021, the FASB issued ASU 2021-01 “Reference Rate Reform (Topic 848):

Scope,” or ASU 2021-01.

ASU 2021-01 clarifies that the practical expedients in ASU 2020-04 apply to derivatives impacted by changes in the interest rate used for margining, discounting, or contract price alignment.

The guidance in ASU 2020-04 is optional and may be elected over time, through December 31, 2022, as reference rate reform activities occur.

Once ASU 2020-04 is elected, the guidance must be applied prospectively for all eligible contract modifications.

In the first quarter of 2020, we have elected to apply the hedge accounting expedients, related to probability and the assessments of effectiveness, for future IBOR-indexed cash flows, to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives.

Application of these expedients preserves the presentation of derivatives consistent with our past presentation.

We continue to evaluate the impact of ASU 2020-04

and may apply other elections, as applicable, as the expected market transition from IBORs to alternative reference rates continues to develop.

In August 2020, the FASB issued ASU

“Debt—Debt with Conversion and Other Options (Subtopic

and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic

We continue to evaluate the impact of ASU 2020-04 and may apply other elections, as applicable, as the expected market transition from IBORs to alternative reference rates continues to develop.

In August 2020, the FASB issued ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40):

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,” or ASU 2020-06.

simplifies the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models.

also updates the earnings per share calculation and requires entities to assume share settlement when the convertible debt can be settled in cash or shares.

is effective for fiscal years beginning after December 15, 2021 and is to be adopted through a cumulative-effect adjustment to the opening balance of retained earnings either at the date of adoption or in the first comparative period presented.

Upon adoption of ASU

convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature, will no longer be allocated between debt and equity components.

This will reduce the issue discount and result in less

interest expense in our consolidated financial statements.

Additionally, ASU

will result in the reporting of a diluted earnings per share, if the

effect is dilutive, in our consolidated financial statements, regardless of our settlement intent.

ASU 2020-06 simplifies the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models.

ASU 2020-06 also updates the earnings per share calculation and requires entities to assume share settlement when the convertible debt can be settled in cash or shares.

ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 and is to be adopted through a cumulative-effect adjustment to the opening balance of retained earnings either at the date of adoption or in the first comparative period presented.

Upon adoption of ASU 2020-06, convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature, will no longer be allocated between debt and equity components.

This will reduce the issue discount and result in less non-cash interest expense in our consolidated financial statements.

Additionally, ASU 2020-06 will result in the reporting of a diluted earnings per share, if the effect is dilutive, in our consolidated financial statements, regardless of our settlement intent.

We expect to adopt ASU 2020-06 using the modified retrospective method of transition, which we expect will result in an aggregate decrease to our additional paid-in capital of $ 2.4 million, an aggregate decrease to our accumulated deficit of $ 2.0 million, and an aggregate increase to our convertible notes, net, balance of $ 476,000 , as of January 1, 2022.

Reference Rate Reform

LIBOR and certain other floating rate benchmark indices to which our floating rate loans and other loan agreements are tied, including, without limitation, the Euro Interbank Offered Rate, or EURIBOR, the Stockholm Interbank Offered Rate, or STIBOR, the Australian Bank Bill Swap Reference Rate, or BBSY, the Canadian Dollar Offered Rate, or CDOR, and the Swiss Average Rate Overnight, or SARON, or collectively, IBORs, are the subject of recent national, international and regulatory guidance and proposals for reform.

As of December 31, 2021, the ICE Benchmark Association, or IBA, ceased publication of all non-USD LIBOR and previously announced its intention to cease publication of remaining U.S.

dollar LIBOR settings immediately after June 30, 2023.

Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S.

financial institutions, has identified the Secured Overnight Financing Rate, or SOFR, a new index calculated using short-term repurchase agreements backed by Treasury securities, as its preferred alternative rate for USD LIBOR.

Market participants have started to transition to the Sterling Overnight Index Average, or SONIA, in line with guidance from the U.K.

As of December 31, 2021, one-month SOFR is utilized as the floating benchmark rate on 16 of our loans, the financing provided on the 2020 FL3 and 2020 FL2 CLOs, plus a credit spread adjustment of 0.11 %, and one of our credit facilities.

As of December 31, 2021, the one-month SOFR was 0.05 % and one-month USD LIBOR was 0.10 %.

Additionally, as of December 31, 2021, daily compounded SONIA is utilized as the floating benchmark rate on nine of our loans and five of our credit facilities.

As of December 31, 2021, SONIA was 0.19 % and three-month GBP LIBOR was 0.26 %.

At this time, it is not possible to predict how markets will respond to SOFR, SONIA, or other alternative reference rates as the transition away from USD LIBOR and GBP LIBOR proceeds.

Despite the LIBOR transition in other markets, benchmark rate methodologies in Europe, Australia, Canada, and Switzerland have been reformed and rates such as EURIBOR, STIBOR, BBSY, CDOR, and SARON may persist as International Organization of Securities Commissions, or

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

IOSCO, compliant reference rates moving forward.

However, multi-rate environments may persist in these markets as regulators and working groups have suggested market participants adopt alternative reference rates.

LOANS RECEIVABLE, NET

The following table details overall statistics for our loans receivable portfolio ($ in thousands):

December 31, 2021 December 31, 2020

Number of loans 188 120

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Unfunded loan commitments (1)

$ 4,180,128 $ 3,160,084

Weighted-average cash coupon (2)

Weighted-average all-in

+ 3.19 % + 3.18 %

Weighted-average all-in yield (2)

+ 3.52 % + 3.53 %

Weighted-average maximum maturity (years) (3)

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These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date.

The weighted-average cash coupon and all-in

yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR, as applicable to each loan.

As of December 31, 2020, 99 % of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR, and $ 13.7 billion of such loans earned interest based on floors that are above the applicable index.

(2) The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, SOFR, GBP LIBOR, SONIA, EURIBOR, and other indices, as applicable to each loan.

As of December 31, 2021, 99.5 % of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR.

The other 0.5 % of our loans earned a fixed rate of interest.

As of December 31, 2020, 99.4 % of our loans by total loan exposure earned a floating rate of interest, primarily indexed to USD LIBOR.

The other 0.6 % of our loans earned a fixed rate of interest.

We reflect our fixed rate loans as a spread over the relevant floating benchmark rates, as of December 31, 2021 and December 31, 2020, respectively, for purposes of the weighted-averages.

As of December 31, 2019, 99 % of our loans by total loan exposure earned a floating rate of interest, primarily indexed to USD LIBOR, and $ 6.1 billion of such loans earned interest based on floors that are above the applicable index.

In addition to cash coupon,

yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees.

Excludes loans accounted for under the cost-recovery method.

In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees.

Excludes a loan accounted for under the cost-recovery method.

(3) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date.

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Notes to Consolidated Financial Statements (continued)

The following table details the index rate floors for our loans receivable portfolio as of December 31, 2021 ($ in thousands):

Loans Receivable Principal Balance

Index Rate Floors USD Non-USD (1)

Fixed Rate $ 37,500 $ 78,367 $ 115,867

0.00% or no floor (2)

3,835,467 5,444,841 9,280,308

0.01% to 0.25% floor 6,686,115 447,339 7,133,454

0.26% to 1.00% floor 1,259,076 501,764 1,760,840

1.01% or more floor 3,641,876 224,092 3,865,968

$ 15,460,034 $ 6,696,403 $ 22,156,437

(1) Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, Canadian Dollar, and Swiss Franc currencies.

(2) Includes a $ 286.3 million loan accounted for under the cost-recovery method.

(3) Excludes investment exposure to $ 79.2 million subordinate position we own in the $ 379.3 million 2018 Single Asset Securitization.

Refer to Notes 4 and 17 to our consolidated financial statements for further discussion of the 2018 Single Asset Securitization.

(4) As of December 31, 2021, the weighted-average index rate floor of our loan portfolio was 0.39 %.

Excluding 0.0% index rate floors, the weighted-average index rate floor was 0.66 %.

Activity relating to our loans receivable portfolio was as follows ($ in thousands):

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Loans Receivable, as of December 31, 2019

$ 16,277,343 $ ( 112,542 ) $ 16,164,801

Loan fundings 1,896,276 — 1,896,276

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Loans Receivable, as of December 31, 2020

$ 16,652,824 $ ( 80,109 ) $ 16,572,715

Loan fundings 12,550,463 — 12,550,463

Loan repayments and sales ( 6,733,105 ) — ( 6,733,105 )

Unrealized gain (loss) on foreign currency translation

Principal charge-offs ( 14,427 ) — ( 14,427 )

Unrealized (loss) gain on foreign currency translation ( 299,318 ) 1,424 ( 297,894 )

Deferred fees and other items — ( 143,002 ) ( 143,002 )

1 unchanged sentence

Loans Receivable, as of December 31, 2021

$ 22,156,437 $ ( 153,420 ) $ 22,003,017

CECL reserve ( 124,679 )

Loans Receivable, net, as of December 31, 2021

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December 31, 2021

Property Type

Property Type Number of

Exposure (1)(2)

Percentage of

Office 65 $ 9,473,039 $ 10,425,026 44 %

Multifamily 75 5,721,260 5,771,517 24

Hospitality 25 3,427,245 3,540,391 15

Industrial 6 1,102,452 1,185,606 5

Retail 8 871,241 909,970 4

Other 9 1,407,780 1,836,601 8

Total loans receivable 188 $ 22,003,017 $ 23,669,111 100 %

CECL reserve ( 124,679 )

Loans receivable, net $ 21,878,338

Geographic Location

Geographic Location Number of

Exposure (1)(2)

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United States

Sunbelt 71 $ 5,907,230 $ 6,206,216 26 %

Northeast 37 4,615,076 4,934,295 21

West 33 3,520,942 4,199,208 18

Midwest 10 1,063,202 1,113,959 5

Northwest 5 251,121 252,700 1

Subtotal 156 15,357,571 16,706,378 71

International

United Kingdom 17 2,342,146 2,598,033 11

Spain 4 1,374,364 1,380,763 6

Ireland 1 1,210,375 1,216,864 5

Sweden 1 546,319 551,149 2

Australia 4 504,668 509,885 2

Canada 2 68,558 68,478 —

Other Europe 3 599,016 637,561 3

Subtotal 32 6,645,446 6,962,733 29

Total loans receivable 188 $ 22,003,017 $ 23,669,111 100 %

CECL reserve ( 124,679 )

Loans receivable, net $ 21,878,338

In certain instances, we finance our loans through the non-recourse

sale of a senior loan interest that is not included in our consolidated financial statements.

(1) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements.

See Note 2 for further discussion.

Total loan exposure encompasses the entire loan we originated and financed, including $ 801.8 million of such non-consolidated

senior interests as of December 31, 2020.

Excludes investment exposure to the $ 735.5

million 2018 Single Asset Securitization.

Total loan exposure encompasses the entire loan we originated and financed, including $ 1.5 billion of such non-consolidated senior interests as of December 31, 2021.

(2) Excludes investment exposure to the $ 379.3 million 2018 Single Asset Securitization.

See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization.

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December 31, 2020

Property Type

Property Type Number of

Exposure (1)(2)

Percentage of

Geographic Location

Office 59 $ 9,980,799 $ 10,451,658 59 %

Hospitality 14 2,295,255 2,369,454 14

Multifamily 31 1,788,149 1,862,667 11

Industrial 6 673,912 675,344 4

Retail 4 538,702 551,243 3

Other 6 1,295,898 1,544,255 9

Total loans receivable 120 $ 16,572,715 $ 17,454,621 100 %

CECL reserve ( 173,549 )

Loans receivable, net $ 16,399,166

Geographic Location Number of

Exposure (1)(2)

1 unchanged sentence

United States

Northeast 25 $ 4,369,537 $ 4,389,384 25 %

West 27 2,942,126 3,413,089 20

Sunbelt 33 2,902,996 2,986,221 17

Midwest 8 973,702 976,693 6

Northwest 1 15,404 15,413 —

Subtotal 94 11,203,765 11,780,800 68

International

United Kingdom 13 1,816,901 2,066,390 12

In certain instances, we finance our loans through the non-recourse

sale of a senior loan interest that is not included in our consolidated financial statements.

Ireland 1 1,309,443 1,317,846 8

Spain 2 1,247,162 1,252,080 7

Australia 2 259,126 259,788 1

Canada 3 82,185 82,262 —

Other Europe 5 654,133 695,455 4

Subtotal 26 5,368,950 5,673,821 32

Total loans receivable 120 $ 16,572,715 $ 17,454,621 100 %

CECL reserve ( 173,549 )

Loans receivable, net $ 16,399,166

(1) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements.

See Note 2 for further discussion.

Total loan exposure encompasses the entire loan we originated and financed, including $ 688.5 million of such non-consolidated

senior interests as of December 31, 2019.

Total loan exposure encompasses the entire loan we originated and financed, including $ 801.8 million of such non-consolidated senior interests as of December 31, 2020.

(2) Excludes investment exposure to the $ 735.5 million 2018 Single Asset Securitization.

See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization .

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Loan Risk Ratings

3 unchanged sentences

Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings ($ in thousands):

December 31, 2020

December 31, 2019

December 31, 2021 December 31, 2020

Exposure (1)(2)

1 8 $ 642,776 $ 645,854 8 $ 777,163 $ 778,283

2 28 5,200,533 5,515,250 17 2,513,848 2,528,835

3 141 13,604,027 14,944,045 79 9,911,914 10,763,496

4 10 2,270,872 2,277,653 14 3,032,593 3,045,309

5 1 284,809 286,309 2 337,197 338,698

Total loans receivable 188 $ 22,003,017 $ 23,669,111 120 $ 16,572,715 $ 17,454,621

CECL reserve ( 124,679 ) ( 173,549 )

Loans receivable, net $ 21,878,338 $ 16,399,166

In certain instances, we finance our loans through the non-recourse

sale of a senior loan interest that is not included in our consolidated financial statements.

(1) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements.

See Note 2 for further discussion.

Total loan exposure encompasses the entire loan we originated and financed, including $ 801.8 million and $ 688.5 million of such non-consolidated

senior interests as of December 31, 2020 and December 31, 2019, respectively.

Total loan exposure encompasses the entire loan we originated and financed, including $ 1.5 billion and $ 801.8 million of such non-consolidated senior interests as of December 31, 2021 and December 31, 2020, respectively.

(2) Excludes investment exposure to the 2018 Single Asset Securitization of $ 379.3 million and $ 735.5 million as of December 31, 2021 and December 31, 2020, respectively.

1 unchanged sentence

The weighted-average risk rating of our total loan exposure was 2.8 and 3.0 as of December 31, 2021 and 2020, respectively.

The increase in the risk rating was primarily the result of loans with an aggregate principal balance of $ 3.2 billion that were downgraded to a “ 4 ” or “ 5 ” during the year ended December 31, 2020 to reflect the higher risk in loans collateralized by hospitality assets and select other assets that are particularly negatively impacted by the COVID-19

The decrease in risk rating reflects the ongoing market recovery from COVID-19 and resulting improvement in the performance of the collateral assets underlying our portfolio, which resulted in several risk rating upgrades in our portfolio during the year ended December 31, 2021.

Current Expected Credit Loss Reserve

The CECL reserve required under GAAP reflects our current estimate of potential credit losses related to the loans and debt securities included in our consolidated balance sheets.

Refer to Note 2 for further discussion of

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

our CECL reserve.

The following table presents the activity in our loans receivable CECL reserve by investment pool for the year ended December 31, 2020 ($ in thousands):

Refer to Note 2 for further discussion of our CECL reserve.

The following table presents the activity in our loans receivable CECL reserve by investment pool for the year ended December 31, 2021 and 2020 ($ in thousands):

Loans Non-U.S.

Loans Receivable, Net

CECL reserve as of December 31, 2020

$ 42,995 $ 27,734 $ 33,159 $ 69,661 $ 173,549

Decrease in CECL reserve ( 16,110 ) ( 17,471 ) ( 502 ) ( 360 ) ( 34,443 )

Charge-offs of CECL reserve — — — ( 14,427 ) ( 14,427 )

CECL reserve as of December 31, 2021

$ 26,885 $ 10,263 $ 32,657 $ 54,874 $ 124,679

CECL reserve as of December 31, 2019

$ — $ — $ — $ — $ —

Initial CECL reserve on January 1, 2020 8,955 3,631 1,356 — 13,942

1 unchanged sentence

CECL reserve as of December 31, 2020

$ 42,995 $ 27,734 $ 33,159 $ 69,661 $ 173,549

Our initial CECL reserve of $ 13.9 million against our loans receivable portfolio, recorded on January 1, 2020, is reflected as a direct charge to retained earnings on our consolidated statements of changes in equity;

however subsequent changes to the CECL reserve are recognized through net income on our consolidated statements of operations.

During the year ended December 31, 2020, we recorded an increase of $ 159.6 million in the current expected credit loss reserve against our loans receivable portfolio, bringing our total CECL reserve to $ 173.5 million as of December 31, 2020.

This CECL reserve reflects the macroeconomic impact of the COVID-19

pandemic on commercial real estate markets generally, as well as certain loans assessed for impairment in our portfolio.

During the year ended December 31, 2021, we recorded a decrease of $ 48.9 million in the current expected credit loss reserve against our loans receivable portfolio, bringing our total CECL reserve to $ 124.7 million as of December 31, 2021.

This CECL reserve reflects the macroeconomic impact of the COVID-19 pandemic on commercial real estate markets generally, as well as certain loans assessed for impairment in our portfolio.

See Note 2 for further discussion of COVID-19.

During the first and fourth quarters of 2020, we entered into loan modifications related to a multifamily asset in New York City, which is classified as a troubled debt restructuring under GAAP.

These modifications included, among other changes, a reduction in the loan’s contractual interest payments and an extension of the loan’s maturity date.

During the three months ended June 30, 2020, we recorded a $ 14.8 million CECL reserve on this loan, which was unchanged as of December 31, 2020.

This loan has an outstanding principal balance of $ 52.4 million, net of cost-recovery proceeds, as of December 31, 2020.

The CECL reserve was recorded based on our Manager’s estimation of the fair value of the loan’s underlying collateral as of December 31, 2020.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

During 2020 and 2021, we entered into loan modifications related to a multifamily asset in New York City, which are classified as troubled debt restructurings under GAAP.

During the three months ended June 30, 2020, we recorded a $ 14.8 million CECL reserve on this loan.

During the three months ended December 31, 2021, the borrower committed significant additional capital to the property and engaged new management to oversee property operations, and we reduced the loan's outstanding principal balance to $ 37.5 million.

As a result of the modification, we charged-off $ 14.4 million of the $ 14.8 million asset-specific CECL reserve we recorded on this loan during the three months ended June 30, 2020, and reversed the remaining $ 360,000 CECL reserve.

We have no remaining asset-specific CECL reserve against this loan as of December 31, 2021.

The loan is paying interest income current and we resumed income accrual for this loan as of December 31, 2021.

See Note 2 to our consolidated financial statements for further discussion on the CECL reserve.

During the third quarter of 2020, we entered into a loan modification related to a hospitality asset in New York City, which is classified as a troubled debt restructuring under GAAP.

This modification included, among other changes, a reduction in the loan’s contractual interest payments and an extension of the loan’s maturity date.

During the three months ended June 30, 2020, we recorded a $ 54.9 million CECL reserve on this loan, which was unchanged as of December 31, 2020.

During the three months ended June 30, 2020, we recorded $ 54.9 million CECL reserve on this loan, which was unchanged as of December 31, 2021.

As of July 1, 2020, the income accrual on this loan was suspended and no income was recorded subsequent to July 1, 2020.

This loan has an outstanding principal balance of $ 286.3 million, net of cost-recovery proceeds, as of December 31, 2021.

The CECL reserve was recorded based on our Manager’s estimation of the fair value of the loan’s underlying collateral as of December 31, 2020.

As of July 1, 2020, the income accrual was suspended on the two loans detailed above, which had an aggregate outstanding principal balance of $ 338.7 million, as of December 31, 2020.

No income was recorded on these loans subsequent to July 1, 2020.

The CECL reserve was recorded based on our estimation of the fair value of the loan’s underlying collateral as of December 31, 2021.

Blackstone Mortgage Trust, Inc.

1 unchanged sentence

Our primary credit quality indicator is our risk ratings, which are further discussed above.

The following table presents the net book value of our loan portfolio as of December 31, 2020 by year of origination, investment pool, and risk rating ($ in thousands):

The following tables present the net book value of our loan portfolio as of December 31, 2021 and December 31, 2020, respectively, by year of origination, investment pool, and risk rating ($ in thousands):

Net Book Value of Loans Receivable by Year of Origination (1)(2)

As of December 31, 2021

2021 2020 2019 2018 2017 Prior Total

1 $ 125,873 $ — $ 196,017 $ 72,752 $ 248,134 $ — $ 642,776

2 876,536 427,839 221,513 1,134,176 354,775 82,274 3,097,113

3 7,511,883 358,448 1,109,170 1,116,872 292,520 228,264 10,617,157

4 — — 96,539 534,938 63,358 89,439 784,274

5 — — — — — — —

loans $ 8,514,292 $ 786,287 $ 1,623,239 $ 2,858,738 $ 958,787 $ 399,977 $ 15,141,320

1 $ — $ — $ — $ — $ — $ — $ —

2 698,130 98,412 1,306,878 — — — 2,103,420

3 1,403,110 — 932,939 394,949 — — 2,730,998

4 — — 343,030 — — — 343,030

5 — — — — — — —

Total Non-U.S.

loans $ 2,101,240 $ 98,412 $ 2,582,847 $ 394,949 $ — $ — $ 5,177,448

1 $ — $ — $ — $ — $ — $ — $ —

2 — — — — — — —

3 — — — 197,018 — 58,854 255,872

4 — — 322,787 820,781 — — 1,143,568

5 — — — — — — —

Total unique loans $ — $ — $ 322,787 $ 1,017,799 $ — $ 58,854 $ 1,399,440

Impaired loans

1 $ — $ — $ — $ — $ — $ — $ —

2 — — — — — — —

3 — — — — — — —

4 — — — — — — —

5 — — — 284,809 — — 284,809

Total impaired loans $ — $ — $ — $ 284,809 $ — $ — $ 284,809

Total loans receivable

1 $ 125,873 $ — $ 196,017 $ 72,752 $ 248,134 $ — $ 642,776

2 1,574,666 526,251 1,528,391 1,134,176 354,775 82,274 5,200,533

3 8,914,993 358,448 2,042,109 1,708,839 292,520 287,118 13,604,027

4 — — 762,356 1,355,719 63,358 89,439 2,270,872

5 — — — 284,809 — — 284,809

Total loans receivable $ 10,615,532 $ 884,699 $ 4,528,873 $ 4,556,295 $ 958,787 $ 458,831 $ 22,003,017

CECL reserve ( 124,679 )

Loans receivable, net $ 21,878,338

1 unchanged sentence

Origination dates are subsequently updated to reflect material loan modifications.

Excludes the $ 75.7

million net book value of our held-to-maturity

debt securities which represents our subordinate position we own in the 2018 Single Asset Securitization, and is included in other assets on our consolidated balance sheets.

(2) Excludes the $ 78.0 million net book value of our held-to-maturity debt securities which represents our subordinate position we own in the 2018 Single Asset Securitization, and is included in other assets on our consolidated balance sheets.

See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization.

1 unchanged sentence

Notes to Consolidated Financial Statements (continued)

Net Book Value of Loans Receivable by Year of Origination (1)(2)

As of December 31, 2020

2020 2019 2018 2017 2016 Prior Total

1 $ — $ 231,796 $ 253,674 $ 43,906 $ 17,009 $ — $ 546,385

2 — 282,017 1,172,168 757,138 79,848 222,677 2,513,848

3 781,595 2,391,297 1,672,897 1,134,288 227,466 220,644 6,428,187

4 65,978 170,541 1,055,142 63,293 105,380 — 1,460,334

5 — — — — — — —

loans $ 847,573 $ 3,075,651 $ 4,153,881 $ 1,998,625 $ 429,703 $ 443,321 $ 10,948,754

1 $ — $ — $ 136,021 $ 94,757 $ — $ — $ 230,778

2 — — — — — — —

3 105,300 2,526,225 479,512 — 113,653 — 3,224,690

4 — 256,494 — — — — 256,494

5 — — — — — — —

Total Non-U.S.

loans $ 105,300 $ 2,782,719 $ 615,533 $ 94,757 $ 113,653 $ — $ 3,711,962

1 $ — $ — $ — $ — $ — $ — $ —

2 — — — — — — —

3 — — 198,433 — — 60,604 259,037

4 — 325,097 990,668 — — — 1,315,765

5 — — — — — — —

Total unique loans $ — $ 325,097 $ 1,189,101 $ — $ — $ 60,604 $ 1,574,802

Impaired loans

1 $ — $ — $ — $ — $ — $ — $ —

2 — — — — — — —

3 — — — — — — —

4 — — — — — — —

5 — — 284,809 — — 52,388 337,197

Total impaired loans $ — $ — $ 284,809 $ — $ — $ 52,388 $ 337,197

Total loans receivable

1 $ — $ 231,796 $ 389,695 $ 138,663 $ 17,009 $ — $ 777,163

2 — 282,017 1,172,168 757,138 79,848 222,677 2,513,848

3 886,895 4,917,522 2,350,842 1,134,288 341,119 281,248 9,911,914

4 65,978 752,132 2,045,810 63,293 105,380 — 3,032,593

5 — — 284,809 — — 52,388 337,197

Total loans receivable $ 952,873 $ 6,183,467 $ 6,243,324 $ 2,093,382 $ 543,356 $ 556,313 $ 16,572,715

CECL reserve ( 173,549 )

Loans receivable, net $ 16,399,166

(1) Date loan was originated or acquired by us.

Origination dates are subsequently updated to reflect material loan modifications.

(2) Excludes the $ 75.7 million net book value of our held-to-maturity debt securities which represents our subordinate position we own in the 2018 Single Asset Securitization, and is included in other assets on our consolidated balance sheets.

See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Multifamily Joint Venture

4 unchanged sentences

The following table details the components of our other assets ($ in thousands):

Debt securities held-to-maturity

December 31, 2021 December 31, 2020

Accrued interest receivable $ 86,101 $ 66,757

Debt securities held-to-maturity (1)

78,083 77,445

CECL reserve ( 70 ) ( 1,723 )

Debt securities held-to-maturity, net 78,013 75,722

Loan portfolio payments held by servicer (2)

Accrued interest receivable

Collateral deposited under derivative agreements

Prepaid expenses

77,624 73,224

Derivative assets 30,531 522

Prepaid expenses 956 973

Collateral deposited under derivative agreements — 51,050

Prepaid taxes — 376

Other 572 1,195

Total $ 273,797 $ 269,819

(1) Represents the subordinate position we own in the 2018 Single Asset Securitization, which held aggregate loan assets of $ 379.3 million and $ 735.5 million as of December 31, 2021 and December 31, 2020, respectively, with a yield to full maturity of L+10.0% and a maximum maturity date of June 9, 2025, assuming all extension options are exercised by the borrower.

Refer to Note 17 for additional discussion.

Represents loan principal and interest payments held by our third-party loan servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle.

(2) Represents loan principal, interest payments, and related loan fees held by our third-party loan servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle.

Current Expected Credit Loss Reserve

2 unchanged sentences

The following table presents the activity in our debt securities CECL reserve by investment pool for the year ended December 31, 2021 ($ in thousands):

Debt Securities Held-To-Maturity

Debt Securities Held-To-Maturity Total

CECL reserve as of December 31, 2020

Decrease in CECL reserve ( 1,653 )

CECL reserve as of December 31, 2021

CECL reserve as of December 31, 2019 $ —

Initial CECL reserve on January 1, 2020 445

1 unchanged sentence

CECL reserve as of December 31, 2020

Our initial CECL reserve of $ 445,000 against our debt securities held-to-maturity, recorded on January 1, 2020, is reflected as a direct charge to retained earnings on our consolidated statements of changes in equity;

however subsequent changes to the CECL reserve are recognized through net income on our consolidated statements of operations.

During the year ended December 31, 2021, we recorded a decrease of $ 1.7 million in the CECL reserve against our debt securities held-to-maturity, bringing our total CECL reserve to $ 70,000 as of December 31, 2021.

During the year ended December 31, 2020,

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Our initial CECL reserve of $ 445,000 against our debt securities held-to-maturity,

recorded on January 1, 2020, is reflected as a direct charge to retained earnings on our consolidated statements of changes in equity;

subsequent changes to the CECL reserve are recognized through net income on our consolidated statements of operations.

During the year ended December

2020 , we recorded an increase of $

1.3 million in the expected credit loss reserve against our debt securities

held-to-maturity,

bringing our total CECL reserve to $

1.7 million as of December

This CECL reserve reflects the macroeconomic impact of the

pandemic on commercial real estate markets generally and is not specific to any loan losses or impairments in our portfolio.

2 for further discussion of

we recorded an increase of $ 1.3 million in the CECL reserve against our debt securities held-to-maturity, bringing our total CECL reserve to $ 1.7 million as of December 31, 2020.

See Note 2 for further discussion of COVID-19.

Other Liabilities

The following table details the components of our other liabilities ($ in thousands):

December 31, 2021 December 31, 2020

Accrued dividends payable $ 104,271 $ 91,004

Derivative liabilities

Secured debt repayments pending servicer remittance (1)

Accrued interest payable 29,851 20,548

Accrued management and incentive fees payable 28,373 19,158

Current expected credit loss reserve for unfunded loan commitments (1)

Accounts payable and other liabilities 9,046 2,671

Derivative liabilities 5,890 58,915

Current expected credit loss reserve for unfunded loan commitments (2)

Total $ 231,358 $ 202,327

(1) Represents pending transfers from our third-party loan servicer that were remitted to our banking counterparties during the subsequent remittance cycle.

(2) Represents the CECL reserve related to our unfunded loan commitments.

5 unchanged sentences

The following table presents the activity in the CECL reserve related to our unfunded loan commitments by investment pool for the year ended December 31, 2021 ($ in thousands):

Loans Non-U.S.

Unfunded Loan Commitments

CECL reserve as of December 31, 2020

$ 6,953 $ 2,994 $ 84 $ — $ 10,031

Decrease in CECL reserve ( 2,881 ) ( 803 ) ( 84 ) — ( 3,768 )

CECL reserve as of December 31, 2021

$ 4,072 $ 2,191 $ — $ — $ 6,263

CECL reserve as of December 31, 2019 $ — $ — $ — $ — $ —

Initial CECL reserve on January 1, 2020 2,801 453 9 — 3,263

1 unchanged sentence

CECL reserve as of December 31, 2020

$ 6,953 $ 2,994 $ 84 $ — $ 10,031

Our initial CECL reserve of $ 3.3 million against our unfunded loan commitments, recorded on January 1, 2020, is reflected as a direct charge to retained earnings on our consolidated statements of changes in equity;

however subsequent changes to the CECL reserve are recognized through net income on our consolidated statements of operations.

During the year ended December 31, 2020, we recorded an increase of $ 6.8 million in the expected

During the year ended December 31, 2021, we recorded a decrease of $ 3.8 million in the CECL reserve against our unfunded loan commitments, bringing our total CECL reserve to $ 6.3 million as of December 31, 2021.

During the year ended December 31, 2020, we recorded an increase of $ 6.8 million in the CECL reserve against our unfunded loan commitments, bringing our total CECL reserve to $ 10.0 million as of December 31, 2020.

The decrease in the CECL reserve during the year ended December 31, 2021 reflects the ongoing market recovery from COVID-19 and the resulting improvement in the performance of the collateral assets underlying our portfolio.

See Note 2 for further discussion of COVID-19.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

credit loss reserve against our unfunded loan commitments, bringing our total CECL reserve to $ 10.0 million as of December 31, 2020.

This CECL reserve reflects the macroeconomic impact of the COVID-19

pandemic on commercial real estate markets generally and is not specific to any loan losses or impairments in our portfolio.

See Note 2 for further discussion of COVID-19.

SECURED DEBT AGREEMENTS, NET

During the three months ended June 30, 2020, we entered into agreements with our

largest secured credit facility lenders, representing an aggregate

billion of our secured credit facilities as of June 30, 2020, to temporarily suspend credit mark provisions and pre-approve certain loan modifications to certain of their portfolio assets, primarily in exchange for cash repayments and pledging additional loan collateral.

During the three months ended December 31, 2020, we extended the credit facility modification agreements with the

lenders without any further deleveraging or increased cost.

In addition, during the year ended December 31, 2020, we increased the size of one of our credit facilities and added a multi-currency facility with one of our existing lenders, providing an aggregate additional $ 650.0 million of credit capacity.

Our secured debt agreements include secured credit facilities and a revolving credit agreement.

The following table details our secured debt agreements ($ in thousands):

Secured Debt Agreements

SECURED DEBT, NET

Our secured debt includes our secured credit facilities and acquisition facility.

During the year ended December 31, 2021, we obtained approval for $ 10.5 billion of new borrowings against $ 13.2 billion of collateral assets.

Additionally, during the year ended December 31, 2021, we (i) entered into two new secured credit facilities providing an aggregate $ 2.5 billion of credit capacity and (ii) increased the size of four existing secured credit facilities providing an aggregate $ 1.2 billion of additional credit capacity.

The following table details our secured debt ($ in thousands):

Borrowings Outstanding

December 31, 2020

December 31, 2019

December 31, 2021 December 31, 2020

Secured credit facilities $ 12,299,580 $ 7,896,863

Revolving credit agreement

Total secured debt agreements

Acquisition facility — —

Total secured debt $ 12,299,580 $ 7,896,863

Deferred financing costs (1)

( 19,538 ) ( 16,327 )

Net book value of secured debt $ 12,280,042 $ 7,880,536

Costs incurred in connection with our secured debt agreements are recorded on our consolidated balance sheet when incurred and recognized as a component of interest expense over the life of each related agreement.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

(1) Costs incurred in connection with our secured debt are recorded on our consolidated balance sheet when incurred and recognized as a component of interest expense over the life of each related facility.

Secured Credit Facilities

Our secured credit facilities are bilateral agreements we use to finance diversified pools of senior loan collateral with sufficient flexibility to accommodate our investment and asset management strategy.

The facilities are uniformly structured to provide currency, index, and term-matched financing without capital markets based mark-to-market provisions.

The following table details our secured credit facilities as of December 31, 2021 ($ in thousands):

December 31, 2021

Credit Facility Borrowings

Potential (1)

Available (1)

Deutsche Bank

Goldman Sachs

Bank of America

Morgan Stanley

Société Générale

Goldman Sachs -

Bank of America -

Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged.

When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility.

Recourse Limitation

Currency Lenders (1)

Borrowings Maturity (2)

Loan Count Collateral (3)

USD 13 $ 7,334,420 10/17/2025 128 $ 10,420,015 11/27/2025 34 % 25 % - 100 %

EUR 6 2,333,523 10/18/2024 10 3,148,250 9/27/2024 47 % 25 % - 100 %

GBP 6 1,743,519 6/15/2025 15 2,323,140 6/27/2025 26 % 25 % - 50 %

4 888,118 5/10/2025 6 1,150,976 4/25/2025 26 % 25 % - 100 %

Total 12 $ 12,299,580 7/11/2025 159 $ 17,042,381 8/5/2025 35 % 25 % - 100 %

(1) Represents the number of lenders with fundings advanced in each respective currency, as well as the total number of facility lenders.

(2) Based on the earlier of (i) the maximum maturity date of each secured credit facility, or (ii) the maximum maturity date of the collateral loans.

(3) Represents the principal balance of the collateral assets.

These facilities finance the loan investments of our consolidated Multifamily Joint Venture.

Refer to Note 2 for additional discussion of our Multifamily Joint Venture.

The weighted-average outstanding balance of our secured credit facilities was $ 8.8 billion for the year ended December 31, 2020.

As of December 31, 2020, we had aggregate borrowings of $ 7.9 billion outstanding under our secured credit facilities, with a weighted-average cash coupon of LIBOR plus 1.63 % per annum, a weighted-average all-in

cost of credit, including associated fees and expenses, of LIBOR plus 1.83 % per annum, and a weighted-average advance rate of 72.8 %.

As of December 31, 2020, outstanding borrowings under these facilities had a weighted-average maturity, including extension options, of 3.0 years.

(4) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date.

(5) Includes Swedish Krona, Australian Dollar, Canadian Dollar, and Swiss Franc currencies.

The availability of funding under our secured credit facilities is based on the amount of approved collateral, which collateral is proposed by us in our discretion and approved by the respective counterparty in its discretion, resulting in a mutually agreed collateral portfolio construction.

Certain structural elements of our secured credit facilities, including the limitation on recourse to us and facility economics are influenced by the specific collateral portfolio construction of each facility, and therefore vary within and among the facilities.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table details our secured credit facilities as of December 31, 2019 ($ in thousands):

December 31, 2019

Credit Facility Borrowings

Potential (1)

Available (1)

Deutsche Bank

Bank of America

Morgan Stanley

Goldman Sachs

Société Générale

Goldman Sachs -

Bank of America -

Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged.

When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility.

The following tables detail the spread of our secured debt as of December 31, 2021 and December 31, 2020 ($ in thousands):

Year Ended December 31, 2021 December 31, 2021

New Financings (2)

All-in Cost (1)(3)(4)

Collateral (5)

All-in Yield (1)(6)

+ 1.50 % or less

$ 5,306,925 $ 7,746,026 + 1.52 % $ 10,193,801 + 3.18 % + 1.66 %

+ 1.51 % to + 1.75 %

1,477,177 2,710,587 + 1.88 % 3,977,492 + 3.55 % + 1.67 %

+ 1.76 % to + 2.00 %

668,470 998,781 + 2.13 % 1,458,074 + 4.28 % + 2.15 %

+ 2.01 % or more

310,991 844,186 + 2.49 % 1,413,014 + 4.75 % + 2.26 %

Total $ 7,763,563 $ 12,299,580 + 1.72 % $ 17,042,381 + 3.49 % + 1.77 %

Year Ended December 31, 2020 December 31, 2020

New Financings (2)

All-in Cost (1)(3)(4)

Collateral (5)

All-in Yield (1)(6)

+ 1.50 % or less

$ 376,085 $ 4,192,280 + 1.59 % $ 6,338,626 + 3.09 % + 1.50 %

+ 1.51 % to + 1.75 %

172,447 1,945,692 + 1.95 % 2,975,581 + 3.43 % + 1.48 %

+ 1.76 % to + 2.00 %

215,056 926,666 + 2.06 % 1,212,546 + 3.83 % + 1.77 %

+ 2.01 % or more

134,928 832,225 + 2.49 % 1,514,154 + 4.34 % + 1.85 %

Total $ 898,516 $ 7,896,863 + 1.83 % $ 12,040,907 + 3.40 % + 1.57 %

(1) The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include USD LIBOR, SOFR, GBP LIBOR, SONIA, EURIBOR, and other indices as applicable.

(2) Represents borrowings outstanding as of December 31, 2021 and December 31, 2020, respectively, for new financings during the year ended December 31, 2021 and December 31, 2020, respectively, based on the date collateral was initially pledged to each credit facility.

(3) In addition to spread, the cost includes the associated deferred fees and expenses related to the respective borrowings.

(4) Represents the weighted-average all-in cost as of December 31, 2021 and December 31, 2020, respectively, and is not necessarily indicative of the spread applicable to recent or future borrowings.

(5) Represents the principal balance of the collateral assets.

These facilities finance the loan investments of our consolidated Multifamily Joint Venture.

Refer to Note 2 for additional discussion of our Multifamily Joint Venture.

The weighted-average outstanding balance of our secured credit facilities was $ 8.8 billion for the year ended December 31, 2019.

As of December 31, 2019, we had aggregate borrowings of $ 9.8 billion outstanding under our secured credit facilities, with a weighted-average cash coupon of LIBOR plus 1.60 % per annum, a weighted-average all-in

cost of credit, including associated fees and expenses, of LIBOR plus 1.79 % per annum, and a weighted-average advance rate of 79.4 %.

As of December 31, 2019, outstanding borrowings under these facilities had a weighted-average maturity, including extension options, of 3.6 years.

Borrowings under each facility are subject to the initial approval of eligible collateral loans by the lender and the maximum advance rate and pricing rate of individual advances are determined with reference to the attributes of the respective collateral loan.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table outlines the key terms of our secured credit facilities as of December 31, 2020:

Guarantee (1)

Margin Call (2)

Term/Maturity

Deutsche Bank

Collateral marks only

Term matched (6)

Collateral marks only

Term matched (6)

Collateral marks only

Term matched (6)

$ / £ / € / A$ / C$

Collateral marks only

Term matched (6)

Goldman Sachs

Collateral marks only

Term matched (6)

Bank of America

Collateral marks only

May 21, 2024 (7)

Collateral marks only

January 7, 2024 (8)

Morgan Stanley

Collateral marks only

September 29, 2025 (9)

Collateral marks only

September 23, 2025 (10)

Collateral marks only

Term matched (6)

Société Générale

Collateral marks only

Term matched (6)

Collateral marks only

Term matched (6)

Goldman Sachs -

Collateral marks only

July 12, 2022 (11)

Bank of America -

Collateral marks only

July 19, 2023 (12)

Other than amounts guaranteed based on specific collateral asset types, borrowings under our credit facilities are non-recourse

Margin call provisions under our credit facilities do not permit valuation adjustments based on capital markets events, and are limited to collateral-specific credit marks.

These provisions have been temporarily suspended on certain of our facilities as described above.

These facilities finance the loan investments of our consolidated Multifamily Joint Venture.

Refer to Note 2 for additional discussion of our Multifamily Joint Venture.

Specific borrowings outstanding of $ 907.9 million are 100 % guaranteed.

The remainder of the credit facility borrowings are 25 % guaranteed.

In addition to the 25 % guarantee across all borrowings, there is an incremental guarantee of $ 147.2 million related to $ 196.3 million of specific borrowings outstanding.

These secured credit facilities have various availability periods during which new advances can be made and which are generally subject to each lender’s discretion.

Maturity dates for advances outstanding are tied to the term of each respective collateral asset.

Includes two one-year

extension options which may be exercised at our sole discretion.

Includes two one-year

extension options which may be exercised at our sole discretion.

Includes two one-year

extension options which may be exercised at our sole discretion.

Includes four one-year

extension options which may be exercised at our sole discretion.

Includes a one-year

extension option which may be exercised at our sole discretion.

Includes two one-year

extension options which may be exercised at our sole discretion.

(6) In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees.

(7) Represents the difference between the weighted-average all-in yield and weighted-average all-in cost.

Our secured credit facilities generally permit us to increase or decrease the amount advanced against the pledged collateral in our discretion within certain maximum/minimum amount and frequency limitations.

As of December 31, 2021, there was an aggregate $ 607.4 million available to be drawn at our discretion under our credit facilities.

Acquisition Facility

We have a $ 250.0 million full recourse secured credit facility that is designed to finance eligible first mortgage originations for up to nine months as a bridge to term financing without obtaining discretionary lender approval.

The cost of borrowing under the facility is variable, dependent on the type of loan collateral, and its maturity date is April 4, 2023.

During the year ended December 31, 2021, we had no borrowings under the acquisition facility and we recorded interest expense of $ 1.2 million, including $ 354,000 of amortization of deferred fees and expenses.

As of December 31, 2021, we had one asset pledged to our acquisition facility and there was an aggregate $ 147.5 million available to be drawn at our discretion.

During the year ended December 31, 2020, we had no borrowings under the acquisition facility and we recorded interest expense of 1.6 million, including $ 685,000 of amortization of deferred fees and expenses.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table details the floating benchmark rates for our secured credit facilities as of December 31, 2020 ($/€/£/A$/C$ in thousands):

Borrowings (1)

Floating Rate Index (2)

INDEX + 1.63%

Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged.

When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility.

Floating rate indices are generally matched to the payment timing under the terms of each secured credit facility and its respective collateral assets.

Represents weighted-average advance rate based on the approved outstanding principal balance of the collateral assets pledged.

Revolving Credit Agreement

We have a $ 250.0 million full recourse secured revolving credit agreement with Barclays that is designed to finance first mortgage originations for up to nine months as a bridge to term financing or syndication.

Advances under the agreement are subject to availability under a specified borrowing base and accrue interest at a per annum pricing rate equal to the sum of (i) an applicable base rate or Eurodollar rate and (ii) an applicable margin, in each case, dependent on the applicable type of loan collateral.

The maturity date of the facility is April 4, 2023.

During the year ended December 31, 2020, we had no borrowings under the revolving credit agreement and we recorded interest expense of $ 1.6 million, including $ 685,000 of amortization of deferred fees and expenses.

During the year ended December 31, 2019, the weighted-average outstanding borrowings under the revolving credit agreement was $ 14.3 million and we recorded interest expense of $ 2.6 million, including $ 1.0 million of amortization of deferred fees and expenses.

As of December 31, 2019, we had no outstanding borrowings under the agreement.

Debt Covenants

The guarantees related to our secured debt agreements contain the following financial covenants:

Financial Covenants

We are subject to the following financial covenants related to our secured debt:

(i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to fixed charges, as defined in the agreements, shall be not less than 1.4 to 1.0;

(ii) our tangible net worth, as defined in the agreements, shall not be less than $ 3.0 billion as of each measurement date plus 75 % of the net cash proceeds of future equity issuances subsequent to December 31, 2020;

(ii) our tangible net worth, as defined in the agreements, shall not be less than $ 3.5 billion as of each measurement date plus 75 % to 85 % of the net cash proceeds of future equity issuances subsequent to December 31, 2021;

(iii) cash liquidity shall not be less than the greater of (x) $ 10.0 million or (y) no more than 5 % of our recourse indebtedness;

1 unchanged sentence

As of December 31, 2021 and December 31, 2020, we were in compliance with these covenants.

These financial covenants also apply to our asset-specific debt agreements.

Refer to Note 7 for information regarding our asset-specific financings.

Refer to Note 8 for information regarding financial covenants contained in the agreements governing our senior secured term loan facility.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

SECURITIZED DEBT OBLIGATIONS, NET

We have financed certain pools of our loans through collateralized loan obligations, which include the 2020 FL3 CLO, 2020 FL2 CLO, and 2017 FL1 CLO, or collectively, the CLOs.

We have financed certain pools of our loans through collateralized loan obligations, which include the 2021 FL4 CLO, 2020 FL3 CLO, 2020 FL2 CLO, and 2017 FL1 CLO or collectively, the CLOs.

We have also financed one of our loans through a single asset securitization vehicle, or the 2017 Single Asset Securitization.

The CLOs and the 2017 Single Asset Securitization have issued securitized debt obligations that are non-recourse

The CLOs and the 2017 Single Asset Securitization are consolidated in our financial statements.

The CLOs and the 2017 Single Asset Securitization are consolidated in our financial statements and have issued securitized debt obligations that are non-recourse to us.

Refer to Note 16 for further discussion of our CLOs and 2017 Single Asset Securitization.

1 unchanged sentence

December 31, 2021

Securitized Debt Obligations

Securitized Debt Obligations Count Principal

Yield/Cost (1)(2)

2021 FL4 Collateralized Loan Obligation

Collateral assets

February 2024

Financing provided

November 2037

Collateral assets 34 $ 1,000,000 $ 1,000,000 + 3.42 % October 2024

Financing provided 1 803,750 797,373 + 1.66 % May 2038

2020 FL3 Collateralized Loan Obligation

Collateral assets

Financing provided

February 2038

Collateral assets 18 1,000,000 1,000,000 + 3.06 % May 2024

Financing provided 1 808,750 804,096 + 2.10 % November 2037

2020 FL2 Collateralized Loan Obligation

Collateral assets

Financing provided

2017 Single Asset Securitization

Collateral assets (3)

Financing provided

Collateral assets 21 1,500,000 1,500,000 + 3.15 % March 2024

Financing provided 1 1,243,125 1,236,593 + 1.45 % February 2038

Collateral assets 73 $ 3,500,000 $ 3,500,000 + 3.20 %

Financing provided (4)

3 $ 2,855,625 $ 2,838,062 + 1.69 %

(1) In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees.

(2) The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR and one-month SOFR, as applicable to each securitized debt obligation.

As of December 31, 2021, the floating benchmark rate for the financing provided on the 2020 FL3 and 2020 FL2 CLOs is one-month SOFR, plus a credit spread adjustment of 0.11 %.

As of December 31, 2021, one-month SOFR was 0.05 % and one-month USD LIBOR was 0.10 %.

(3) Loan term represents weighted-average final maturity, assuming all extension options are exercised by the borrower.

Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments.

The term of these obligations represents the rated final distribution date of the securitizations.

(4) During the year ended December 31, 2021, we recorded $ 46.0 million of interest expense related to our securitized debt obligations.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

December 31, 2020

Securitized Debt Obligations

Securitized Debt Obligations Count Principal

Book Value Wtd.

Yield/Cost (1)(2)

2020 FL3 Collateralized Loan Obligation

Collateral assets

September 2022

Financing provided

Collateral assets 25 $ 1,000,000 $ 1,000,000 + 3.09 % February 2024

Financing provided 1 808,750 800,993 + 2.08 % November 2037

2020 FL2 Collateralized Loan Obligation

Collateral assets 31 1,500,000 1,500,000 + 3.17 % January 2024

Financing provided 1 1,243,125 1,233,464 + 1.44 % February 2038

2017 FL1 Collateralized Loan Obligation

Collateral assets 15 666,334 666,334 + 3.39 % January 2023

Financing provided 1 483,834 483,113 + 1.83 % June 2035

2017 Single Asset Securitization

Collateral assets (4)

Financing provided

1 619,194 618,766 + 3.57 % June 2023

Financing provided 1 404,929 404,929 + 1.63 % June 2033

Collateral assets 72 $ 3,785,528 $ 3,785,100 + 3.25 %

Financing provided (5)

In addition to cash coupon, all-in

yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees.

yield for the total portfolio assumes applicable floating benchmark rates for weighted-average calculation.

4 $ 2,940,638 $ 2,922,499 + 1.70 %

(1) In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees.

(2) The weighted-average all-in yield and cost are expressed as a spread over USD LIBOR.

(3) Loan term represents weighted-average final maturity, assuming all extension options are exercised by the borrower.

2 unchanged sentences

(4) The collateral assets for the 2017 Single Asset Securitization include the total loan amount, of which we securitized $ 500.0 million.

During the years ended December 31, 2020 and 2019, we recorded $ 43.1 million and $ 47.2 million, respectively, of interest expense related to our securitized debt obligations.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

ASSET-SPECIFIC DEBT AGREEMENTS, NET

The following tables detail our asset-specific debt agreements ($ in thousands):

(5) During the year ended December 31, 2020, we recorded $ 43.1 million of interest expense related to our securitized debt obligations.

ASSET-SPECIFIC DEBT, NET

The following tables detail our asset-specific debt ($ in thousands):

December 31, 2021

Asset-Specific Debt Agreements

Asset-Specific Debt Count Principal

Book Value Wtd.

Yield/Cost (1)

Guarantee (2)

Collateral assets

Financing provided

Collateral assets 4 $ 446,276 $ 435,727 + 4.04 % March 2025

Financing provided 4 $ 400,699 $ 393,824 + 2.78 % March 2025

December 31, 2020

Asset-Specific Debt Agreements

Asset-Specific Debt Count Principal

Book Value Wtd.

Yield/Cost (1)

Guarantee (2)

Collateral assets

Financing provided

Collateral assets 4 $ 512,794 $ 499,085 + 4.65 % October 2023

Financing provided 4 $ 399,699 $ 391,269 + 3.48 % October 2023

(1) These floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency.

1 unchanged sentence

In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs.

Other than amounts guaranteed on an asset-by-asset

basis, borrowings under our asset-specific debt agreements are non-recourse

(2) The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrower.

Each of our asset-specific debt agreements is term-matched to the corresponding collateral loans.

SECURED TERM LOANS, NET

During the year ended December 31, 2020, we entered into a $ 325.0 million senior secured term loan facility, or the 2020 Term Loan.

As of December 31, 2020, the following senior secured term loan facilities, or Secured Term Loans, were outstanding ($ in thousands):

2019 Term Loan

April 23, 2026

2020 Term Loan

April 23, 2026

The 2020 Term Loan includes a LIBOR floor of 1.00 %.

Includes issue discount and transaction expenses that are amortized through interest expense over the life of the Secured Term Loans.

The 2019 and 2020 Term Loans are partially amortizing, with an amount equal to 1.0 % per annum of the aggregate principal balance due in quarterly installments.

The issue discount and transaction expenses on the 2019 Term Loan were $ 1.6 million and $ 10.1 million, respectively, which will be amortized into interest expense over the life of the 2019 Term Loan.

The issue discount and transaction expenses of the 2020 Term Loan were $ 9.6 million and

$ 3.8 million, respectively, which will be amortized into interest expense over the life of the 2020 Term Loan.

Each of our asset-specific debt is term-matched to the corresponding collateral loans.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table details the net book value of our Secured Term Loans on our consolidated balance sheets ($ in thousands):

TERM LOANS, NET

During the year ended December 31, 2021, we (i) increased our borrowings under our B-1 senior term loan facility, or B-1 Term Loan, by $ 200.0 million and (ii) increased our borrowings under our B-2 senior term loan facility, or B-2 Term Loan, by $ 100.0 million and decreased the interest rate by 2.50 % to USD LIBOR plus 2.75 %.

As of December 31, 2021, the following senior term loan facilities, or Term Loans, were outstanding ($ in thousands):

Term Loans Face Value Interest Rate (1)

All-in Cost (1)(2)

B-1 Term Loan $ 929,878 + 2.25 % + 2.53 % April 23, 2026

B-2 Term Loan $ 419,393 + 2.75 % + 3.42 % April 23, 2026

(1) The B-2 Term Loan borrowing is subject to a LIBOR floor of 0.50 %.

(2) Includes issue discount and transaction expenses that are amortized through interest expense over the life of the Term Loans.

The Term Loans are partially amortizing, with an amount equal to 1.0 % per annum of the aggregate principal balance due in quarterly installments.

The issue discount and transaction expenses on the B-1 Term Loan were $ 3.1 million and $ 12.6 million, respectively, which will be amortized into interest expense over the life of the B-1 Term Loan.

The issue discount and transaction expenses of the B-2 Term Loan were $ 9.6 million and $ 5.4 million, respectively, which will be amortized into interest expense over the life of the B-2 Term Loan.

The following table details the net book value of our Term Loans on our consolidated balance sheets ($ in thousands):

December 31, 2021 December 31, 2020

Face value $ 1,349,271 $ 1,062,766

Unamortized discount ( 9,209 ) ( 9,807 )

1 unchanged sentence

Net book value $ 1,327,406 $ 1,041,704

The guarantee under our Secured Term Loans contains the financial covenant that our indebtedness shall not exceed 83.33% of our total assets.

The guarantee under our Term Loans contains the financial covenant that our indebtedness shall not exceed 83.33 % of our total assets.

As of December 31, 2021 and December 31, 2020, we were in compliance with this covenant.

Refer to Note 2 for additional discussion of our accounting policies for the Secured Term Loans.

Refer to Note 2 for additional discussion of our accounting policies for the Term Loans.

SENIOR SECURED NOTES, NET

During the year ended December 31, 2021, we issued $ 400.0 million aggregate principal amount of 3.75 % senior secured notes due 2027, or the Senior Secured Notes.

As of December 31, 2021, the following Senior Secured Notes, were outstanding ($ in thousands):

Senior Secured Notes Face Value Interest Rate All-in Cost (1)

Senior Secured Notes $ 400,000 3.75 % 4.04 % January 15, 2027

(1) Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes.

The transaction expenses on the Senior Secured Notes were $ 6.3 million, which will be amortized into interest expense over the life of the Senior Secured Notes.

The following table details the net book value of our Senior Secured Notes on our consolidated balance sheets ($ in thousands):

December 31, 2021 December 31, 2020

Face value $ 400,000 $ —

Deferred financing costs ( 5,990 ) —

Net book value $ 394,010 $ —

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The covenants under our Senior Secured Notes require us to maintain a total debt to total assets ratio, as defined in the agreements, of not greater than 83.333 % and, in certain circumstances, a total unencumbered assets to total unsecured indebtedness ratio, as defined in the agreements, of 1.20 or greater.

As of December 31, 2021 we were in compliance with these covenants.

CONVERTIBLE NOTES, NET

As of December 31, 2021, the following convertible senior notes, or Convertible Notes, were outstanding ($ in thousands):

Convertible Notes Issuance

Interest Rate

Convertible Notes Issuance Face Value Interest Rate

All-in Cost (1)

Conversion Rate (2)

March 15, 2023

May 2017 $ 402,500 4.38 % 4.85 % 28.0324 May 5, 2022

March 2018 $ 220,000 4.75 % 5.33 % 27.6052 March 15, 2023

(1) Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the effective interest method.

(2) Represents the shares of class A common stock per $ 1,000 principal amount of Convertible Notes, which is equivalent to a conversion price of $ 35.67 and $ 36.23 per share of class A common stock, respectively, for the May 2017 and March 2018 convertible notes.

The cumulative dividend threshold as defined in the respective May 2017 and March 2018 convertible notes supplemental indentures have no t been exceeded as of December 31, 2020.

The cumulative dividend threshold as defined in the respective May 2017 and March 2018 convertible notes supplemental indentures have not been exceeded as of December 31, 2021.

The Convertible Notes are convertible at the holders’ option into shares of our class A common stock, only under specific circumstances, prior to the close of business on January 31, 2022 and December 14, 2022 for the May 2017 and March 2018 convertible notes, respectively, at the applicable conversion rate in effect on the conversion date.

5 unchanged sentences

Including the amortization of the discount and issuance costs, our total cost of the May 2017 convertible notes issuance is 4.91 % per annum.

Upon our issuance of the March 2018 convertible notes, we recorded a $ 1.5 million discount based on the implied value of the conversion option and an assumed effective interest rate of 5.25 %, as well as $ 5.2 million of

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

issue discount and issuance costs.

Including the amortization of the discount and issuance costs, our total cost of the March 2018 convertible notes issuance is 5.49 % per annum.

The following table details the net book value of our Convertible Notes on our consolidated balance sheets ($ in thousands):

December 31, 2021 December 31, 2020

Face value $ 622,500 $ 622,500

Unamortized discount ( 2,472 ) ( 5,715 )

1 unchanged sentence

Net book value $ 619,876 $ 616,389

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table details our interest expense related to the Convertible Notes ($ in thousands):

Year Ended December 31,

2021 2020 2019

Cash coupon $ 28,059 $ 28,059 $ 28,059

Discount and issuance cost amortization 3,486 3,319 3,159

5 unchanged sentences

These derivatives may or may not qualify as net investment, cash flow, or fair value hedges under the hedge accounting requirements of ASC 815 – “Derivatives and Hedging.” Derivatives not designated as hedges are not speculative and are used to manage our exposure to interest rate movements and other identified risks.

Refer to Note 2 for additional discussion of the accounting for designated and non-designated

Refer to Note 2 for additional discussion of the accounting for designated and non-designated hedges.

The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these contractual arrangements do not perform as agreed.

3 unchanged sentences

We use derivative financial instruments, which includes interest rate caps, and may also include interest rate swaps, options, floors, and other interest rate derivative contracts, to hedge interest rate risk.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following tables detail our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (notional amount in thousands):

December 31, 2021

Interest Rate Derivatives

Interest Rate Caps

Interest Rate Derivatives Number of

Index Wtd.-Avg.

Interest Rate Caps 1 $ 20,670 1.0 % CDOR 0.2

December 31, 2020

Interest Rate Derivatives

Interest Rate Swaps

Interest Rate Caps

Interest Rate Derivatives Number of

Index Wtd.-Avg.

Interest Rate Caps 2 $ 38,293 1.0 % CDOR 0.8

Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on our floating rate debt.

4 unchanged sentences

We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S.

During the three months ended March 31, 2020, we terminated all of our outstanding foreign currency forward contracts, with aggregate notional amounts of € 552.1 million, £ 365.5 million, A$ 134.8 million, and C$ 23.7 million.

During the three months ended June 30, 2020, we entered into foreign currency forward contracts with aggregate notional amounts of € 620.4 million, £ 530.2 million, A$ 92.8 million, and C$ 24.4 million.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Designated Hedges of Foreign Currency Risk

The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amount in thousands):

December 31, 2020

December 31, 2019

Foreign Currency Derivatives

Buy USD / Sell EUR Forward

Buy USD / Sell GBP Forward

December 31, 2021 December 31, 2020

Foreign Currency Derivatives Number of

Buy USD / Sell SEK Forward 1 kr 999,500 Buy USD / Sell EUR Forward 8 € 754,722

Buy USD / Sell EUR Forward 7 € 731,182 Buy USD / Sell GBP Forward 4 £ 372,487

Buy USD / Sell GBP Forward 2 £ 489,204 Buy USD / Sell AUD Forward 1 A$ 92,800

Buy USD / Sell AUD Forward 3 A$ 188,600 Buy USD / Sell CAD Forward 1 C$ 26,200

Buy USD / Sell CAD Forward 2 C$ 22,100

Buy USD / Sell CHF Forward 1 CHF 5,200

Non-designated Hedges of Foreign Currency Risk

The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign currency risk (notional amount in thousands):

December 31, 2021 December 31, 2020

Non-designated Hedges Number of

Buy GBP / Sell EUR Forward 1 € 8,410 Buy EUR / Sell GBP Forward 2 £ 146,207

Buy GBP / Sell USD Forward 3 £ 170,600 Buy USD / Sell EUR Forward 1 € 8,410

Buy USD / Sell GBP Forward 3 £ 170,600

Buy USD / Sell EUR Forward

Buy USD / Sell AUD Forward

Buy USD / Sell CAD Forward

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Non-designated

Hedges of Foreign Currency Risk

The following table details our outstanding foreign exchange derivatives that were non-designated

hedges of foreign currency risk (notional amount in thousands):

December 31, 2020

December 31, 2019

Non-designated

Non-designated Hedges

Buy EUR / Sell GBP Forward

Buy CAD / Sell USD Forward

Buy EUR / Sell USD Forward 2 € 165,560

Buy USD / Sell EUR Forward 3 € 165,560

Buy USD / Sell CAD Forward

Buy GBP / Sell EUR Forward

Buy AUD / Sell USD Forward

Buy USD / Sell AUD Forward

Buy CHF / Sell USD Forward 1 CHF 20,300

Buy USD / Sell CHF Forward 1 CHF 20,300

Financial Statement Impact of Hedges of Foreign Currency Risk

The following table presents the effect of our derivative financial instruments on our consolidated statements of operations ($ in thousands):

Increase (Decrease) to Interest Income and

Interest Expense

Recognized from Foreign

Increase (Decrease) to Net Interest Income Recognized from Foreign

Exchange Contracts

3 unchanged sentences

(Expense) Recognized

Designated Hedges

Interest Income

Non-Designated

Interest Income

Non-Designated

Interest Expense

Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019

Designated Hedges Interest Income (1)

$ 7,296 $ 4,382 $ —

Non-Designated Hedges Interest Income (1)

( 342 ) ( 522 ) —

Non-Designated Hedges Interest Expense (2)

( 6,911 ) ( 4,357 ) 1,060

Total $ 43 $ ( 497 ) $ 1,060

(1) Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR.

1 unchanged sentence

dollar terms.

Represents the spot rate movement in our non-designated

hedges, which are marked-to-market

and recognized in interest expense.

(2) Represents the spot rate movement in our non-designated hedges, which are marked-to-market and recognized in interest expense.

Blackstone Mortgage Trust, Inc.

3 unchanged sentences

Fair Value of Derivatives in an Asset

Position (1) as of

Fair Value of Derivatives in a Liability

Position (2) as of

December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020

Derivatives designated as hedging instruments:

1 unchanged sentence

Interest rate derivatives — 1 — —

Total $ 23,423 $ 522 $ 1,383 $ 55,758

Derivatives not designated as

2 unchanged sentences

Interest rate derivatives — — — —

Total $ 7,108 $ — $ 4,507 $ 3,157

Total Derivatives $ 30,531 $ 522 $ 5,890 $ 58,915

4 unchanged sentences

Relationships

Amount of (Loss)

Gain Recognized in

Amount of Gain (Loss) Recognized in

OCI on Derivatives

Reclassified from

Loss Reclassified from

Accumulated OCI into Income

Year Ended December 31,

Year Ended December 31, Accumulated Year Ended December 31,

2021 2020 2019 OCI into Income 2021 2020 2019

3 unchanged sentences

Cash Flow Hedges

Interest rate derivatives

Interest Expense

During the year ended December 31, 2020, we paid net cash settlements of $ 43.0 million on our foreign currency contracts.

During the years ended December 31, 2019, and December 31, 2018, we received net cash settlements of $ 43.1 million and $ 29.1 million, respectively, on our foreign currency forward contracts.

Interest rate derivatives ( 5 ) ( 94 ) ( 144 ) Interest Expense (2)

Total $ 81,598 $ ( 59,703 ) $ ( 5,736 ) $ ( 10 ) $ 7 $ 195

(1) During the years ended December 31, 2021, and December 31, 2020, we paid net cash settlements of $ 1.4 million and $ 43.0 million on our foreign currency contracts.

During the year ended December 31, 2019, we received net cash settlements of $ 43.1 million on our foreign currency forward contracts.

Those amounts are included as a component of accumulated other comprehensive loss on our consolidated balance sheets.

During the years ended December 31, 2020, December 31, 2019, and December 31, 2018, we recorded total interest and related expenses of $ 347.5 million, $ 458.5 million, and $ 359.6 million, respectively, which were reduced by $ 7,000 , $ 195,000 , and $ 563,000 , respectively, related to income generated by our cash flow hedges.

(2) During the year ended December 31, 2021, we recorded total interest and related expenses of $ 340.2 million, which included interest expense of $ 10,000 related to our cash flow hedges.

During the years ended December 31, 2020 and December 31, 2019, we recorded total interest and related expenses of $ 347.5 million and $ 458.5 million, respectively, which were reduced by $ 7,000 and $ 195,000 , respectively, related to income generated by our cash flow hedges.

Credit-Risk Related Contingent Features

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In addition, certain of our agreements with our derivative counterparties require that we post collateral to secure net liability positions.

As of December 31, 2021, we were in a net asset position with both of our derivative counterparties and did not have any collateral posted under these derivative contracts, which amount is included in other assets on our consolidated balance sheet.

As of December 31, 2020,

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

As of December 31, 2020, we were in a net liability position with each such derivative counterparty and posted collateral of $ 51.1

million under these derivative contracts, which amount is included in other assets on our consolidated balance sheet.

As of December 31, 2019, we were in a net liability position with each such derivative counterparty and posted collateral of $ 30.8

million under these derivative contracts, which amount is included in other assets on our consolidated balance sheet.

we were in a net liability position with each such derivative counterparty and posted collateral of $ 51.1 million under these derivative contracts, which amount is included in other assets on our consolidated balance sheet.

Stock and Stock Equivalents

Authorized Capital

During the year ended December 31, 2020, we filed articles of amendment to our charter authorizing us to issue an additional 200,000,000 shares of common stock.

As of December 31, 2021, we had the authority to issue up to 500,000,000 shares of stock, consisting of 400,000,000 shares of class A common stock and 100,000,000 shares of preferred stock.

1 unchanged sentence

In addition, to the extent not issued, currently authorized stock may be reclassified between class A common stock and preferred stock.

We did not have any shares of preferred stock issued and outstanding as of December 31, 2020.

We did not have any shares of preferred stock issued and outstanding as of December 31, 2021 and December 31, 2020.

Class A Common Stock and Deferred Stock Units

3 unchanged sentences

Shares issued 20,361,408 10,840,696 10,534,628

Gross share issue price (4)

Net share issue price (5)

Gross / net issue price per share (4)

31.64 / 31.37

27.79 / 27.52

35.75 / 35.38

Net proceeds (5)

$ 638,005 $ 297,599 $ 372,341

(1) Issuance includes 296,901 shares issued under our at-the-market program, with a weighted-average gross share issue price of $ 33.67 .

(2) Includes 840,696 shares issued to our Manager in satisfaction of the management and incentive fees accrued in the first quarter of 2020, with a share issue price of $ 22.93 .

The per share price was calculated based on the volume-weighted average price on the NYSE of our class A common stock over the five trading days following our April 29, 2020 first quarter 2020 earnings conference call.

Issuance includes 1.9

million shares issued under our at-the-market

program, with a weighted-average gross share issue price of $ 34.63

Issuance includes 7.7

million shares issued under our at-the-market

program, with a weighted-average gross share issue price of $ 33.66

Represents the weighted-average gross price per share paid by the underwriters or sales agents, as applicable.

Represents the weighted-average net proceeds per share after underwriting or sales discounts and commissions, as applicable.

(3) Issuance includes 1.9 million shares issued under our at-the-market program, with a weighted-average gross share issue price of $ 34.63 .

(4) Represents the gross price per share issued, as well as the net proceeds per share after underwriting or sales discounts and commissions.

(5) Net proceeds represent proceeds received from the underwriters less applicable transaction costs.

Includes 19.3 million of net proceeds related to 840,696 shares issued to our Manager in satisfaction of the management and incentives fees accrued in the first quarter of 2020.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

We also issue restricted class A common stock under our stock-based incentive plans.

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In addition to our class A common stock, we also issue deferred stock units to certain members of our board of directors in lieu of cash compensation for services rendered.

These deferred stock units are non-voting,

but carry the right to receive dividends in the form of additional deferred stock units in an amount equivalent to the cash dividends paid to holders of shares of class A common stock.

These deferred stock units are non-voting, but carry the right to receive dividends in the form of additional deferred stock units in an amount equivalent to the cash dividends paid to holders of shares of class A common stock.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table details the movement in our outstanding shares of class A common stock, including restricted class A common stock and deferred stock units:

1 unchanged sentence

Common Stock Outstanding (1)

2021 2020 2019

Beginning balance 147,086,722 135,263,728 123,664,577

Issuance of class A common stock (2)

20,363,592 10,842,746 10,535,842

Issuance of restricted class A common stock, net (3)

1,036,175 933,623 1,032,082

Issuance of deferred stock units 56,881 46,625 31,227

Ending balance 168,543,370 147,086,722 135,263,728

Includes 306,691 deferred stock units, 260,066 deferred stock units, and 228,839 deferred stock units held by members of our board of directors as of December 31, 2020, 2019, and 2018, respectively.

Includes 2,050

1,214 shares, and 1,688 shares issued under our dividend reinvestment program during the years ended December 31, 2020, 2019, and 2018, respectively.

shares, 17,565

shares, and 17,820

shares of restricted class A common stock forfeited under our stock-based incentive plans during the years ended December 31, 2020, 2019, and 2018, respectively.

(1) Includes 363,572 , 306,691 , and 260,066 deferred stock units held by members of our board of directors as of December 31, 2021, 2020, and 2019, respectively.

(2) Includes 2,184 , 2,050 , and 1,214 shares issued under our dividend reinvestment program during the years ended December 31, 2021, 2020, and 2019, respectively.

(3) Net of 29,580 , 879 , and 17,565 shares of restricted class A common stock forfeited under our stock-based incentive plans during the years ended December 31, 2021, 2020, and 2019, respectively.

See Note 15 for further discussion of our stock-based incentive plans.

3 unchanged sentences

The direct stock purchase component allows stockholders and new investors, subject to our approval, to purchase shares of class A common stock directly from us.

During the years ended December 31, 2020, 2019, and 2018 we issued 2,050 shares, 1,214 shares, and 1,688 shares, respectively, of class A common stock under the dividend

reinvestment component of the plan.

As of December

2020 , a total of

shares of class A common stock remained available for issuance under the dividend reinvestment and direct stock purchase plan.

During the years ended December 31, 2021, 2020, and 2019 we issued 2,184 shares, 2,050 shares, and 1,214 shares, respectively, of class A common stock under the dividend reinvestment component of the plan.

As of December 31, 2021, a total of 9,989,790 shares of class A common stock remained available for issuance under the dividend reinvestment and direct stock purchase plan.

At the Market Stock Offering Program

2 unchanged sentences

Sales of class A common stock made pursuant to our ATM Agreements may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended.

Actual sales depend on a variety of factors including market conditions, the trading price of our class A common stock, our capital needs, and our determination of the appropriate sources of

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

funding to meet such needs.

We did not sell any shares of our class A common stock under ATM Agreements during the year ended December 31, 2020.

Actual sales depend on a variety of factors including market conditions, the trading price of our class A common stock, our capital needs, and our determination of the appropriate sources of funding to meet such needs.

During the year ended December 31, 2021, we issued and sold 296,901 shares of class A common stock under ATM Agreements, generating net proceeds totaling $ 9.9 million.

During the year ended December 31, 2020, we did not issue any shares of our class A common stock under ATM Agreements.

During the year ended December 31, 2019, we issued and sold 1,909,628 shares of class A common stock under ATM Agreements, generating net proceeds totaling $ 65.4 million.

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We generally intend to distribute substantially all of our taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to our stockholders each year to comply with the REIT provisions of the Internal Revenue Code.

dividend policy remains subject to revision at the discretion of our board of directors.

Our dividend policy remains subject to revision at the discretion of our board of directors.

All distributions will be made at the discretion of our board of directors and will depend upon our taxable income, our financial condition, our maintenance of REIT status, applicable law, and other factors as our board of directors deems relevant.

On December 15, 2021, we declared a dividend of $ 0.62 per share, or $ 104.3 million in aggregate, that was paid on January 14, 2022 to stockholders of record as of December 31, 2021.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table details our dividend activity ($ in thousands, except per share data):

Year Ended December 31,

2021 2020 2019

Dividends declared per share of common stock $ 2.48 $ 2.48 $ 2.48

1 unchanged sentence

Percent taxable as capital gain dividends — % — % — %

100.00 % 100.00 % 100.00 %

Earnings Per Share

We calculate our basic and diluted earnings per share using the two-class

method for all periods presented as the unvested shares of our restricted class A common stock qualify as participating securities, as defined by GAAP.

We calculate our basic and diluted earnings per share using the two-class method for all periods presented as the unvested shares of our restricted class A common stock qualify as participating securities, as defined by GAAP.

These restricted shares have the same rights as our other shares of class A common stock, including participating in any dividends, and therefore have been included in our basic and diluted net income per share calculation.

2 unchanged sentences

Year Ended December 31,

2021 2020 2019

Net income (1)

$ 419,193 $ 137,670 $ 305,567

Weighted-average shares outstanding, basic and diluted 151,521,941 141,795,977 130,085,398

1 unchanged sentence

(1) Represents net income attributable to Blackstone Mortgage Trust.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Other Balance Sheet Items

Accumulated Other Comprehensive Income

As of December 31, 2021, total accumulated other comprehensive income was $ 8.3 million, primarily representing $ 86.4 million of net realized and unrealized gains related to changes in the fair value of derivative instruments offset by $ 78.1 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign currencies.

As of December 31, 2020, total accumulated other comprehensive income was $ 11.2 million, primarily representing (i) $ 6.4 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign currencies, and (ii) $ 4.8 million of net realized and unrealized gains related to changes in the fair value of derivative instruments.

As of December 31, 2019, total accumulated other comprehensive loss was $ 16.2 million, primarily representing $ 80.7 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign currencies, offset by $ 64.5 million of net realized and unrealized gains related to changes in the fair value of derivative instruments.

Non-Controlling

The non-controlling

interests included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are not owned by us.

A portion of our Multifamily Joint Venture’s consolidated equity and results of operations are allocated to these non-controlling

interests based on their pro rata ownership of our Multifamily Joint Venture.

As of December 31, 2020, our Multifamily Joint Venture’s total equity was $ 121.1 million, of which $ 102.9 million was owned by us, and $ 18.2 million was allocated to non-controlling

As of December 31, 2019, our Multifamily Joint Venture’s total equity was $ 147.3 million, of which $ 125.2 million was owned by us, and $ 22.1 million was allocated to non-controlling

Non-Controlling Interests

The non-controlling interests included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are not owned by us.

A portion of our Multifamily Joint Venture’s consolidated equity and results of operations are allocated to these non-controlling interests based on their pro rata ownership of our Multifamily Joint Venture.

As of December 31, 2021, our Multifamily Joint Venture’s total equity was $ 203.5 million, of which $ 173.0 million was owned by us, and $ 30.5 million was allocated to non-controlling interests.

As of December 31, 2020, our Multifamily Joint Venture’s total equity was $ 121.1 million, of which $ 102.9 million was owned by us, and $ 18.2 million was allocated to non-controlling interests.

OTHER EXPENSES

Our other expenses consist of the management and incentive fees we pay to our Manager and our general and administrative expenses.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Management and Incentive Fees

Pursuant to our Management Agreement, our Manager earns a base management fee in an amount equal to 1.50 % per annum multiplied by our outstanding equity balance, as defined in the Management Agreement.

period over (b) an amount equal to 7.00 % per annum multiplied by our outstanding Equity, provided that our Core Earnings over the prior three-year period is greater than zero.

equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), (iv) net income (loss) attributable to our legacy portfolio, (v) certain non-cash

items, and (vi) incentive management fees.

Pursuant to a management agreement between our Manager and us, or our Management Agreement, our Manager earns a base management fee in an amount equal to 1.50 % per annum multiplied by our outstanding equity balance, as defined in the Management Agreement.

In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i) 20 % and (ii) the excess of (a) our Core Earnings (as defined in our Management Agreement) for the previous 12-month period over (b) an amount equal to 7.00 % per annum multiplied by our outstanding Equity, provided that our Core Earnings over the prior three-year period is greater than zero .

Core Earnings, as defined in our Management Agreement, is generally equal to our GAAP net income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), (iv) net income (loss) attributable to our legacy portfolio, (v) certain non-cash items, and (vi) incentive management fees.

During the years ended December 31, 2021, 2020, and 2019, we incurred $ 64.2 million, $ 60.4 million, and $ 55.3 million, respectively, of management fees payable to our Manager.

2 unchanged sentences

As of December 31, 2021 and 2020 we had accrued management and incentive fees payable to our Manager of $ 28.4 million and $ 19.2 million, respectively.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

General and Administrative Expenses

1 unchanged sentence

Year Ended December 31,

2021 2020 2019

Professional services (1)

$ 7,759 $ 7,324 $ 5,163

Operating and other costs (1)

compensation expenses

3,762 4,015 3,035

Subtotal 11,521 11,339 8,198

Non-cash compensation expenses

Restricted class A common stock earned 31,052 34,032 30,156

Director stock-based compensation 595 500 500

Subtotal 31,647 34,532 30,656

Total general and administrative expenses $ 43,168 $ 45,871 $ 38,854

13 unchanged sentences

As of December 31, 2021 and 2020, we were in compliance with all REIT requirements.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

Securitization transactions could result in the creation of taxable mortgage pools for federal income tax purposes.

As a REIT, so long as we own 100% of the equity interests in a taxable mortgage pool, we generally would not be adversely affected by the characterization of the securitization as a taxable mortgage pool.

Certain categories of stockholders, however, such as foreign stockholders eligible for treaty or other benefits, stockholders with net operating losses, and certain tax-exempt

stockholders that are subject to unrelated business income tax, or UBTI, could be subject to increased taxes on a portion of their dividend income from us that is attributable to the taxable mortgage pool.

Certain categories of stockholders, however, such as foreign stockholders eligible for treaty or other benefits, stockholders with net operating losses, and certain tax-exempt stockholders that are subject to unrelated business income tax, or UBTI, could be subject to increased taxes on a portion of their dividend income from us that is attributable to the taxable mortgage pool.

We have not made UBTI distributions to our common stockholders and do not intend to make such UBTI distributions in the future.

During the year ended December 31, 2020, we recorded a current income tax provision of $ 323 ,000, primarily related to activities of our taxable REIT subsidiaries and various state and local taxes.

During the year ended

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

December 31, 2019, we recorded a current income tax benefit of $ 506 ,000, primarily due to a tax credit refund.

During the year ended December 31, 2018, we recorded a current income tax provision of $ 308 ,000, primarily related to activities of our taxable REIT subsidiaries and various state and local taxes.

We did no t have any deferred tax assets or liabilities as of December 31, 2020 or 2019.

During the years ended December 31, 2021 and December 31, 2020, we recorded a current income tax provision of $ 423,000 and $ 323,000 , respectively, primarily related to activities of our taxable REIT subsidiaries and various state and local taxes.

During the year ended December 31, 2019, we recorded a current income tax benefit of $ 506,000 , primarily due to a tax credit refund.

We did not have any deferred tax assets or liabilities as of December 31, 2021 or 2020.

We have net operating losses, or NOLs, generated by our predecessor business that may be carried forward and utilized in current or future periods.

1 unchanged sentence

As of December 31, 2021, we had estimated NOLs of $ 159.0 million that will expire in 2029, unless they are utilized by us prior to expiration.

We have a full valuation allowance against such NOLs as it is probable that they will expire unutilized.

As of December 31, 2021, tax years 2018 through 2021 remain subject to examination by taxing authorities.

12 unchanged sentences

Balance as of December 31, 2019

1,698,582 $ 34.52

Granted 934,502 31.83

Vested ( 1,004,315 ) 34.26

Forfeited ( 879 ) 34.57

Balance as of December 31, 2020

1,627,890 $ 33.14

Granted 1,065,755 29.93

Vested ( 957,944 ) 33.08

Forfeited ( 29,580 ) 31.52

Balance as of December 31, 2021

These shares generally vest in installments over a three -year period, pursuant to the terms of the respective award agreements and the terms of our current benefit plans.

1,706,121 $ 31.19

These shares generally vest in installments over a period of three years , pursuant to the terms of the respective award agreements and the terms of our current benefit plans.

The 1,706,121 shares of restricted class A common stock outstanding as of December 31, 2021 will vest as follows:

2 unchanged sentences

and 267,320 shares will vest in 2024.

As of December 31, 2020, total unrecognized compensation cost relating to unvested share-based compensation arrangements was $ 51.4 million based on the grant date fair value of shares granted subsequent to July 1, 2018.

The compensation cost of our share-based compensation

As of December 31, 2021, total unrecognized compensation cost relating to unvested share-based compensation arrangements was $ 51.3 million based on the grant date fair value of shares granted.

This cost is expected to be recognized over a weighted-average period of 1.2 years from December 31, 2021.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

arrangements for awards granted before July 1, 2018 is based on the closing price of our class A common stock of $ 31.43 on June 29, 2018, the last trading day prior to July 1, 2018.

This cost is expected to be recognized over a weighted-average period of 1.2 years from December 31, 2020.

Assets and Liabilities Measured at Fair Value

The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands):

December 31, 2020

December 31, 2019

December 31, 2021 December 31, 2020

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

Derivatives $ — $ 30,531 $ — $ 30,531 $ — $ 522 $ — $ 522

Derivatives $ — $ 5,890 $ — $ 5,890 $ — $ 58,915 $ — $ 58,915

Refer to Note 2 for further discussion regarding fair value measurement.

Fair Value of Financial Instruments

As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the statement of financial position, for which it is practicable to estimate that value.

As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized at fair value in the statement of financial position, for which it is practicable to estimate that value.

The following table details the book value, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands):

December 31, 2020

December 31, 2019

December 31, 2021 December 31, 2020

Financial assets

1 unchanged sentence

Loans receivable, net 21,878,338 22,156,437 22,013,762 16,399,166 16,652,824 16,447,192

Debt securities held-to-maturity

Debt securities held-to-maturity, net (1)

78,013 79,200 77,229 75,722 79,200 70,127

Financial liabilities

Secured debt agreements, net

Secured debt, net 12,280,042 12,299,580 12,299,580 7,880,536 7,896,863 7,896,863

Securitized debt obligations, net 2,838,062 2,855,625 2,850,399 2,922,499 2,940,638 2,923,489

Asset-specific debt agreements, net

Asset-specific debt, net 393,824 400,699 400,699 391,269 399,699 399,699

Secured term loans, net 1,327,406 1,349,271 1,335,844 1,041,704 1,062,766 1,053,060

Senior secured notes, net 394,010 400,000 399,012 — — —

Convertible notes, net 619,876 622,500 630,821 616,389 622,500 621,568

1 unchanged sentence

Estimates of fair value for cash and cash equivalents and convertible notes are measured using observable, quoted market prices, or Level 1 inputs.

Estimates of fair value for debt securities held-to-maturity,

securitized debt obligations, and the secured term loans are measured using observable, quoted market prices, in inactive markets, or Level 2 inputs.

Estimates of fair value for debt securities held-to-maturity, securitized debt obligations, the term loans, and the senior secured notes are measured using observable, quoted market prices, in inactive markets, or Level 2 inputs.

All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs.

See Note 2 for further discussion regarding fair value measurement of certain of our assets and liabilities.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

VARIABLE INTEREST ENTITIES

1 unchanged sentence

We have financed a portion of our loans through the CLOs and the 2017 Single Asset Securitization, all of which are VIEs.

We are the primary beneficiary of, and therefore consolidate, the CLOs and the 2017 Single Asset Securitization on our balance sheet as we (i) control the relevant interests of the CLOs and the 2017 Single Asset Securitization that give us power to direct the activities that most significantly affect the CLOs and the 2017 Single Asset Securitization, and (ii) have the right to receive benefits and obligation to absorb losses of the CLOs and the 2017 Single Asset Securitization through the subordinate interests we own.

During the year ended December 31, 2021, the 2017 Single Asset Securitization was liquidated upon full repayment of its collateral and all senior securities outstanding.

We are the primary beneficiary of, and therefore consolidate, the CLOs on our balance sheet as we (i) control the relevant interests of the CLOs that give us power to direct the activities that most significantly affect the CLOs, and (ii) have the right to receive benefits and obligation to absorb losses of the CLOs through the subordinate interests we own.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

The following table details the assets and liabilities of our consolidated CLOs and 2017 Single Asset Securitization VIEs ($ in thousands):

December 31, 2021 December 31, 2020

Loans receivable $ 3,486,750 $ 3,520,130

1 unchanged sentence

Loans receivable, net 3,482,248 3,506,676

Other assets 20,746 81,274

Total assets $ 3,502,994 $ 3,587,950

Securitized debt obligations, net $ 2,838,062 $ 2,922,499

2 unchanged sentences

Assets held by these VIEs are restricted and can be used only to settle obligations of the VIEs, including the subordinate interests owned by us.

The liabilities of these VIEs are non-recourse

to us and can only be satisfied from the assets of the VIEs.

The liabilities of these VIEs are non-recourse to us and can only be satisfied from the assets of the VIEs.

The consolidation of these VIEs results in an increase in our gross assets, liabilities, interest income and interest expense, however it does not affect our stockholders’ equity or net income.

Non-Consolidated

Variable Interest Entities

Non-Consolidated Variable Interest Entities

In the third quarter of 2018, we contributed a $ 517.5 million loan to the $ 1.0 billion 2018 Single Asset Securitization, which is a VIE, and invested in the related $ 99.0 million subordinate position.

We have classified the subordinate position we own as a held-to-maturity

debt security that is included in other assets on our consolidated balance sheets.

We have classified the subordinate position we own as a held-to-maturity debt security that is included in other assets on our consolidated balance sheets.

Our maximum exposure to loss from the 2018 Single Asset Securitization is limited to our book value of $ 78.0 million as of December 31, 2021.

We are not obligated to provide, have not provided, and do not intend to provide financial support to these consolidated and non-consolidated

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

We are not obligated to provide, have not provided, and do not intend to provide financial support to these consolidated and non-consolidated VIEs.

TRANSACTIONS WITH RELATED PARTIES

3 unchanged sentences

During the year ended December 31, 2020, we issued 840,696 shares of class A common stock to our Manager in satisfaction of our aggregate $ 19.3 million of management and incentive fees accrued in the first quarter of 2021.

The per share price with respect to such issuance was calculated based on the volume-weighted average price on the NYSE of our class A common stock

over the five trading days following our April 29, 2020 first quarter 2020 earnings conference call.

In addition, during the years ended December 31, 2020, 2019, and 2018, we reimbursed our Manager for expenses incurred on our behalf of $

1.0 million, $

1.1 million, and $

836,000 , respectively.

As of December 31, 2020, our Manager held 942,054 shares of unvested restricted class A common stock, which had an aggregate grant date fair value of $ 30.1 million, and vest in installments over three years from the date of issuance.

During the years ended December 31, 2020, 2019, and 2018, we recorded non-cash

expenses related to shares held by our Manager of $ 17.0 million, $ 15.1 million, and $ 13.5 million, respectively.

The per share price with respect to such issuance was calculated based on the volume-weighted average price on the NYSE of our class A common stock over the five trading days following our April 29, 2020 first quarter 2021 earnings conference call.

In addition, during the years ended December 31, 2021, 2020, and 2019, we reimbursed our Manager for expenses incurred on our behalf of $ 601,000 , $ 1.0 million, and $ 1.1 million, respectively.

As of December 31, 2021, our Manager held 1.1 million shares of unvested restricted class A common stock, which had an aggregate grant date fair value of $ 33.4 million, and vest in installments over three years from the date of issuance.

During the years ended December 31, 2021, 2020, and 2019, we recorded non-cash expenses related to shares held by our Manager of $ 15.3 million, $ 17.0 million, and $ 15.1 million, respectively.

Refer to Note 15 for further details on our restricted class A common stock.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

An affiliate of our Manager is the special servicer of the CLOs.

This affiliate did not earn any special servicing fees related to the CLOs during the years ended December 31, 2021, 2020 or 2019.

During the years ended December 31, 2020, 2019, and 2018, we originated two loans, nine loans, and six loans respectively, whereby the respective borrowers engaged an affiliate of our Manager to act as title insurance agent in connection with these transactions.

During the years ended December 31, 2021, 2020, and 2019, we originated three loans, two loans, and nine loans respectively, whereby the respective borrowers engaged an affiliate of our Manager to act as title insurance agent in connection with these transactions.

We did not incur any expenses or receive any revenues as a result of these transactions.

During the years ended December 31, 2020, 2019, and 2018, we incurred $ 487,000 , $ 440,000 , and $ 450,000 , respectively, of expenses for various administrative, compliance, and capital market data services to third-party service providers that are affiliates of our Manager.

In the second quarter of 2020, a Blackstone-advised investment vehicle acquired an aggregate $ 5.0 million participation, or 2 %, of the total 2020 Term Loan as a part of a broad syndication lead-arranged by JP Morgan.

During the years ended December 31, 2021, 2020, and 2019, we incurred $ 385,000 , $ 487,000 , and $ 440,000 , respectively, of expenses for various administrative, compliance, and capital markets data services to third-party service providers that are affiliates of our Manager.

In the fourth quarter of 2021, we co-originated A$ 450.0 million of an aggregate A$ 900.0 million senior loan to an unaffiliated third-party.

A Blackstone-advised investment vehicle co-originated the additional pari passu A$ 450.0 million of the loan.

In the fourth quarter of 2021, we issued $ 400.0 million aggregate principal amount of 3.75 % Senior Secured Notes.

The Senior Secured Notes were issued at par and have a maturity date of January 15, 2027.

Blackstone Securities Partners L.P., an affiliate of our Manager, participated in the offering of the Senior Secured Notes and received compensation of $ 400,000 in connection therewith.

This transaction was on terms equivalent to those of unaffiliated parties.

In the third quarter of 2021, we originated $ 246.6 million of a total $ 503.0 million senior loan to an unaffiliated third-party, which was part of a total financing that included a mezzanine loan originated by a Blackstone-advised investment vehicle.

We will forgo all non-economic rights under our loan, including voting rights, so long as any Blackstone-advised investment vehicle controls the mezzanine loan.

The senior loan terms, with respect to the mezzanine lender, were negotiated by a third party without our involvement and our 49 % interest in the senior loan was made on such market terms.

In the third quarter of 2021, we acquired £ 186.0 million of a total £ 379.6 million senior loan to a borrower that is majority owned by a Blackstone-advised investment vehicle.

We will forgo all non-economic rights under the loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower.

The senior loan terms were negotiated by the original lender prior to our acquisition of the loan without our involvement, and we acquired the loan on such market terms.

In the third quarter of 2021, we co-originated $ 243.6 million of a total $ 974.5 million senior loan to an unaffiliated third-party.

A Blackstone-advised investment vehicle co-originated an additional pari passu $ 243.6 million of the loan and unaffiliated third-parties co-originated the remaining $ 487.3 million of the loan.

The loan proceeds were used by the borrower to repay an existing loan previously owned by us.

In the third and fourth quarter of 2019, we acquired € 250.0 million of a total € 1.6 billion senior loan to a borrower that is partially owned by a Blackstone-advised investment vehicle.

We will forgo all non-economic rights under the loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower.

The senior loan terms were negotiated by third parties without our involvement and our 16 % interest in the senior loan was made on such market terms.

In the second quarter of 2021, we acquired an additional € 100.0 million interest in the senior loan from an unaffiliated lender, bringing our total interest to 22 % of the aggregate senior loan.

In the second quarter of 2021, we acquired € 50.0 million of a total € 491.0 million senior loan to a borrower that is majority owned by a Blackstone-advised investment vehicle.

We will forgo all non-economic rights under the loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower.

The senior loan terms were negotiated by the original lenders prior to our acquisition of the loan without our involvement and our 10 % interest in the senior loan was made on such market terms.

In the second quarter of 2021 and 2020, certain Blackstone-advised investment vehicles acquired an aggregate $ 20.0 million participation, or 5 %, of the initial aggregate B-2 Term Loan as a part of a broad syndication lead-arranged by JP Morgan.

Blackstone Securities Partners L.P., an affiliate of our Manager, was engaged as a book-runner for the transaction and received aggregate fees of $ 350,000 in such capacity.

Both of these transactions were on terms equivalent to those of unaffiliated parties.

In the first quarter of 2020, we acquired a $ 140.0 million interest in a total $ 421.5 million senior loan to a borrower that is partially owned by a Blackstone-advised investment vehicle.

We will forgo all non-economic

rights under the loan, including voting rights, so long as we are an affiliate of the borrower.

The senior loan terms were negotiated by third parties without our involvement and our 33 % interest in the senior loan was made on such market terms.

In the fourth quarter of 2019, we acquired € 193.6 million of a total € 388.0 million senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle.

We will forgo all non-economic

rights under the

loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower.

In the first quarter of 2021, we acquired an SEK 5.0 billion interest in a total SEK 10.2 billion senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle.

We will forgo all non-economic rights under the loan, including voting rights, so long as we are an affiliate of the borrower.

The senior loan terms were negotiated by a third party without our involvement and our 49 % interest in the senior loan was made on such market terms.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

senior loan terms were negotiated by a third party without our involvement and our

49 % interest in the senior loan was made on such market terms.

In the first quarter of 2020, we acquired a $ 140.0 million interest in a total $ 421.5 million senior loan to a borrower that is partially owned by a Blackstone-advised investment vehicle.

We will forgo all non-economic rights under the loan, including voting rights, so long as we are an affiliate of the borrower.

The senior loan terms were negotiated by third parties without our involvement and our 33 % interest in the senior loan was made on such market terms.

In the third quarter of 2019, we originated $ 214.3 million of a total $ 437.4 million senior loan to an unaffiliated third party, which was part of a total financing that included a mezzanine loan originated by a Blackstone advised investment vehicle.

We will forgo all non-economic

rights under our loan, including voting rights, so long as any Blackstone advised investment vehicle controls the mezzanine loan.

We will forgo all non-economic rights under our loan, including voting rights, so long as any Blackstone advised investment vehicle controls the mezzanine loan.

The senior loan terms, with respect to the mezzanine lender, were negotiated by a third party without our involvement and our 49 % interest in the senior loan was made on such market terms.

In the third quarter of 2020, we entered into a loan modification with the borrower, which was negotiated by the Blackstone advised investment vehicle that owns the mezzanine loan, and was approved by the third party, majority senior lender, on behalf of the entire senior loan.

In the third and fourth quarter of 2019, we acquired an aggregate € 250.0 million of a total € 1.6 billion senior loan to a borrower that is partially owned by a Blackstone-advised investment vehicle.

We will forgo all non-economic

rights under our loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower.

The senior loan terms were negotiated by third parties without our involvement and our 16 % interest in the senior loan was made on such market terms.

In the second and fourth quarter of 2019, certain Blackstone-advised investment vehicles acquired an aggregate $ 60.0 million participation, or 8 %, of the total 2019 Term Loan as a part of a broad syndication lead-arranged by JP Morgan.

In the second and fourth quarter of 2019, certain Blackstone-advised investment vehicles acquired an aggregate $ 60.0 million participation, or 8 %, of the total B-1 Term Loan as a part of a broad syndication lead-arranged by JP Morgan.

Blackstone Securities Partners L.P., an affiliate of our Manager, was engaged as a book-runner for the transactions and received aggregate fees of $ 750,000 in such capacity.

Both of these transactions were on terms equivalent to those of unaffiliated parties.

In the second quarter of 2019, we originated € 191.8 million of a total € 391.3 million senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle.

We will forgo all non-economic

rights under the loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower.

The senior loan terms were negotiated by a third-party without our involvement and our 49 % interest in the senior loan was made on such market terms.

In the first quarter of 2019, we originated £ 240.1 million of a total £ 490.0 million senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle.

We will forgo all non-economic

rights under the loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower.

The senior loan terms were negotiated by a third party without our involvement and our 49 % interest in the senior loan was made on such market terms.

In the second quarter of 2020, we entered into a loan modification with the borrower.

The modification terms were negotiated by the third party, majority lender, without our involvement.

COMMITMENTS AND CONTINGENCIES

Impact of COVID-19

As further discussed in Note 2, the full extent of the impact of COVID-19

on the global economy generally, and our business in particular, is uncertain.

As of December 31, 2020, no contingencies have been recorded on our consolidated balance sheet as a result of COVID-19,

however as the global pandemic continues and the economic implications worsen, it may have long-term impacts on our financial condition, results of operations, and cash flows.

As further discussed in Note 2, the full extent of the impact of COVID-19 on the global economy generally, and our business in particular, is uncertain.

As of December 31, 2021, no contingencies have been recorded on our consolidated balance sheet as a result of COVID-19, however as the global pandemic continues and the economic implications worsen, it may have long-term impacts on our financial condition, results of operations, and cash flows.

Refer to Note 2 for further discussion of COVID-19.

Unfunded Commitments Under Loans Receivable

As of December 31, 2020, we had unfunded commitments of $ 3.2 billion related to 84 loans receivable.

We generally finance the funding of our loan commitments on terms consistent with our overall credit facilities, with

As of December 31, 2021, we had aggregate unfunded commitments of $ 4.2 billion across 118 loans receivable and $ 2.5 billion of committed or identified financing for those commitments resulting in net unfunded commitments of $ 1.7 billion.

The unfunded loan commitments comprise funding for capital expenditures and construction, leasing costs, and interest and carry costs, and their fundability will vary depending on the progress of capital projects, leasing, and cash flows at the properties securing our loans.

Therefore, the exact timing and amounts of such future loan fundings are uncertain and will depend on the current and future performance of the underlying collateral assets.

We expect to fund our loan commitments over the remaining term of the related loans, which have a weighted-average future funding period of 3.6 years.

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

an average advance rate of 72.8 % for such financed loans, resulting in identified financing for $ 2.2 billion of our aggregate unfunded loan commitments as of December 31, 2020.

Some of our lenders, including substantially all of our financing of construction loans, are contractually obligated to fund their ratable portion of these loan commitments over time, while other lenders have some degree of discretion over future loan funding obligations.

We expect to fund our loan commitments over the tenor of these loans, which have a weighted-average future funding period of 3.7 years.

Our future loan fundings comprise funding for capital expenditures and construction, leasing costs, and interest and carry costs, and will vary depending on the progress of capital projects, leasing, and cash flows at the assets underlying our loans.

Therefore, the exact timing and amounts of such future loan fundings are uncertain and will depend on the current and future performance of the underlying collateral assets.

As a result of the COVID-19

pandemic, the progress of capital expenditures, construction, and leasing has been

slower than otherwise expected, and the pace of funding relating to these capital needs has been

commensurately slower

and may continue to be

Principal Debt Repayments

Our contractual principal debt repayments as of December 31, 2021 were as follows ($ in thousands):

Payment Timing

Principal repayments under secured debt agreements (1)

Principal repayments under asset-specific debt agreements (1)

Principal repayments of secured term loans (2)

Principal repayments of convertible notes (3)

The allocation of repayments under our secured debt agreements and asset-specific debt agreements is based on the earlier of (i) the maturity date of each agreement, or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower.

The Secured Term Loans are partially amortizing, with an amount equal to 1.0 % per annum of the principal balance due in quarterly installments.

Refer to Note 8 for further details on our secured term loans.

Asset-Specific Debt (1)

Senior Secured Notes Convertible Notes (3)

2022 $ 64,564 $ — $ 13,738 $ — $ 402,500 $ 480,802

2023 1,519,427 78,659 13,738 — 220,000 1,831,824

2024 3,859,424 — 13,738 — — 3,873,162

2025 1,226,604 322,040 13,738 — — 1,562,382

2026 4,759,861 — 1,294,319 — — 6,054,180

Thereafter 869,700 — — 400,000 — 1,269,700

Total obligation $ 12,299,580 $ 400,699 $ 1,349,271 $ 400,000 $ 622,500 $ 15,072,050

(1) The allocation of repayments under our secured debt and asset-specific debt is based on the earlier of (i) the maturity date of each agreement, or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower.

(2) The Term Loans are partially amortizing, with an amount equal to 1.0 % per annum of the initial principal balance due in quarterly installments.

Refer to Note 8 for further details on our term loans.

(3) Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium.

Refer to Note 10 for further details on our Convertible Notes.

Total does not include $ 2.9 billion of consolidated securitized debt obligations, $ 656.3 million of non-consolidated

securitized debt obligations, and $ 801.8 million of non-consolidated

senior interests, as the satisfaction of these liabilities will not require cash outlays from us.

(4) Total does not include $ 2.9 billion of consolidated securitized debt obligations, $ 1.5 billion of non-consolidated senior interests, and $ 300.1 million of non-consolidated securitized debt obligations, as the satisfaction of these liabilities will not require cash outlays from us.

Board of Directors’ Compensation

As of December 31, 2020, of the eight members of our board of directors, our five independent directors are entitled to annual compensation of $ 175,000 each, $ 75,000 of which will be paid in the form of cash and $ 100,000 in the form of deferred stock units.

As of December 31, 2021, of the nine members of our board of directors, our six independent directors are entitled to annual compensation of $ 210,000 each, of which $ 95,000 will be paid in the form of cash and $ 115,000 will be paid in the form of deferred stock units or, beginning in 2022, at their election, shares of restricted common stock.

The other three board members, including our chairman and our chief executive officer, are not compensated by us for their service as directors.

In addition, (i) the chair of our audit committee receives additional annual cash compensation of $ 20,000 , (ii) the other members of our audit committee receive additional annual cash compensation of $ 10,000 , and (iii) the chairs of each of our compensation and corporate governance committees receive additional annual cash compensation of $ 10,000 .

Blackstone Mortgage Trust, Inc.

Notes to Consolidated Financial Statements (continued)

In addition, (i) the chairs of our audit, compensation, and corporate governance committees receive additional annual cash compensation of $ 20,000 , $ 15,000 , and $ 10,000 , respectively and (ii) the members of our audit and investment risk management committees receive additional annual cash compensation of $ 10,000 and $ 7,500 , respectively.

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business.

As of December 31, 2021, we were not involved in any material legal proceedings.

SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2020 and 2019 ($ in thousands except per share data):

Income from loans and other investments, net

Net (loss) income

Net (loss) income attributable to

Blackstone Mortgage Trust, Inc.

Net (loss) income per share of class A common stock:

Basic and diluted

Income from loans and other investments, net

Net income attributable to

Blackstone Mortgage Trust, Inc.

Net income per share of class A common stock:

Basic and diluted

Quarterly basic and diluted earnings per share are computed based on the weighted-average shares of common stock and stock units outstanding for each period.

Accordingly, the sum of the quarterly earnings per share amounts may not agree to the total for the year.

Blackstone Mortgage Trust, Inc.

Schedule IV – Mortgage Loans on Real Estate

1 unchanged sentence

(in thousands)

Type of Loan/Borrower

Description / Location

Interest Payment Rates (2)

Type of Loan/Borrower Description / Location Interest Payment Rates (2)

Maturity Date (3)

Prior Liens (6)

Loans (5)(7)(8)

Senior Mortgage Loans (1)

Senior loans in excess of 3% of the carrying amount of total loans

Office / Ireland

Mixed-Use / Spain

Office / Northeast

Office / Southeast

Borrower A Office / Ireland + 2.54 % 2024 I/O $ — $ 1,160,153 $ 1,155,748

Borrower B Mixed-Use / Spain + 3.25 % 2023 I/O — 821,873 820,781

Senior loans less than 3% of the carrying amount of total loans

Senior mortgage loans

Office / Diversified

L + 2.40 % – 8.50 %

Senior mortgage loans

Hospitality / Diversified

L + 2.35 % – 5.00 %

Senior mortgage loans

Mixed-Use / Diversified

L + 2.50 % – 4.10 %

Senior mortgage loans

Multifamily / Diversified

L + 1.86 % – 5.00 %

Senior mortgage loans

Industrial / Diversified

L + 2.60 % – 3.55 %

Senior mortgage loans

Other / Diversified

L + 3.10 % – 5.00 %

Senior Mortgage Loans Office / Diversified + 2.18 – 6.13 %

I/O & P/I — 7,922,784 7,873,811

Senior Mortgage Loans Multifamily / Diversified + 1.60 % – 5.25 %

I/O — 5,162,805 5,115,567

Senior Mortgage Loans Hospitality / Diversified + 2.20 % – 4.30 %

I/O — 3,311,723 3,288,135

Senior Mortgage Loans Industrial / Diversified + 2.60 % – 3.25 %

I/O — 1,076,179 1,067,608

Senior Mortgage Loans Mixed-Use / Diversified + 2.50 % – 5.00 %

I/O — 1,045,590 1,041,047

Senior Mortgage Loans Retail / Diversified + 2.25 % – 3.10 %

I/O — 409,917 406,311

Senior Mortgage Loans Other / Diversified + 3.00 % – 4.60 %

I/O — 824,329 818,410

— 19,753,327 19,610,889

Total senior mortgage loans $ — $ 21,735,353 $ 21,587,418

3 unchanged sentences

(in thousands)

Type of Loan/Borrower

Description / Location

Interest Payment Rates (2)

Type of Loan/Borrower Description / Location Interest Payment Rates (2)

Maturity Date (3)

Loans (5)(7)(8)

Subordinate Loans (9)

Subordinate loans less than 3% of the carrying amount of total loans

Subordinate loans

Various / Diversified

L + 3.12 % – 5.25 %

Subordinate loans Various / Diversified + 2.65 % – 4.00 %

I/O & P/I $ 1,512,675 $ 421,084 $ 415,599

Total subordinate loans $ 1,512,675 $ 421,084 $ 415,599

Total loans $ 1,512,675 $ 22,156,437 $ 22,003,017

CECL reserve (10)

1 unchanged sentence

(1) Includes senior mortgages and similar credit quality loans, including related contiguous subordinate loans, and pari passu participations in senior mortgage loans.

The interest payment rates are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR, as applicable to each loan.

(2) The interest payment rates are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, SOFR, GBP LIBOR, SONIA, EURIBOR, BBSY, CDOR, and SARON, as applicable to each loan.

(3) Maximum maturity date assumes all extension options are exercised.

3 unchanged sentences

(7) The tax basis of the loans included above is $ 21.3 billion as of December 31, 2021.

(8) For one of our multifamily loans, during the three months ended December 31, 2021, we charged off $ 14.4 million of the CECL reserve and reduced the loan's outstanding principal balance to $ 37.5 million.

(9) Includes subordinate interests in mortgages and mezzanine loans.

As of December 31, 2020, we had a total CECL reserve of $ 173.5 million on our loans receivable, of which an aggregate $ 69.7 million is specifically related to two of our loans receivable with an aggregate outstanding principal balance of $ 338.7 million, as of December 31, 2020.

This CECL reserve reflects the macroeconomic impact of the COVID-19

pandemic on commercial real estate markets generally, as well as certain loans assessed for impairment in our portfolio.

(10) As of December 31, 2021, we had a total CECL reserve of $ 124.7 million on our loans receivable, of which $ 54.9 million is specifically related to one of our loans receivable with an outstanding principal balance of $ 286.3 million, as of December 31, 2021.

This CECL reserve reflects the macroeconomic impact of the COVID-19 pandemic on commercial real estate markets generally, as well as certain loans assessed for impairment in our portfolio.

Blackstone Mortgage Trust, Inc.

4 unchanged sentences

The following table reconciles mortgage loans on real estate for the years ended:

2021 2020 2019

Balance at January 1, $ 16,572,715 $ 16,164,801 $ 14,191,200

4 unchanged sentences

Loan repayments and sales proceeds ( 6,733,105 ) ( 1,862,955 ) ( 4,974,881 )

Loan contributed to securitization

Unrealized gain (loss) on foreign currency translation

Principal charge-offs ( 14,427 ) — —

Unrealized (loss) gain on foreign currency translation ( 297,894 ) 340,260 67,376

Deferred fees and other items ( 143,002 ) ( 21,946 ) ( 66,558 )

Balance at December 31, $ 22,003,017 $ 16,572,715 $ 16,164,801

CECL reserve ( 124,679 ) ( 173,549 ) —

Net balance at December 31, $ 21,878,338 $ 16,399,166 $ 16,164,801

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures