CAPITAL TRUST LTD (NYSE:BXMT) Q1 2020 Earnings Conference Call - Final Transcript

Apr 29, 2020 • 10:00 am ET


CAPITAL TRUST LTD (NYSE:BXMT) Q1 2020 Earnings Conference Call - Final Transcript


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Good day, and welcome everyone to the Blackstone Mortgage Trust First Quarter 2020 Investor Call. My name is Tommy, and I'm your Event Manager. [Operator Instructions] I would like to advise all parties the conference is being recorded for replay purposes.

And now, I would like to hand over to your host, Weston Tucker, Head of Investor Relations. Please go ahead, sir.

Weston Tucker

Great. Thank you, and good morning, everyone, and welcome to Blackstone Mortgage Trust's first quarter conference call. I'm joined remotely today by Mike Nash, Executive Chairman; Steve Plavin, Chief Executive Officer; Jonathan Pollock, Global Head of Real Estate Debt Strategies; Katie Keenan, President; Tony Marone, Chief Financial Officer; and Doug Armer, Executive Vice President, Capital Markets. Last night, we filed our 10-Q and issued a press release with the presentation of our results, which are available on our website and have been filed with the SEC. I'd like to remind everyone that today's call may include forward-looking statements, which are uncertain and outside of the company's control.

Actual results may differ materially. For a discussion of some of the risks that could affect results, please see the Risk Factors section of our most recent 10-K and 10-Q reports. We do not undertake any duty to update forward-looking statements. We will also refer to certain non-GAAP measures on this call, and for reconciliations, you should refer to the press release and our 10-Q. This audio cast is copyrighted material of Blackstone Mortgage Trust. It may not be duplicated without our consent. So, a quick recap of our results. We reported a GAAP net loss per share of $0.39 for the first quarter, while core earnings were positive $0.64 per share. Two weeks ago, we paid a dividend of $0.62 per share with respect to the first quarter. If you have any questions following today's call, please let me know.

And with that, I'll now turn things over to Steve.

Stephen Plavin

Thanks, Weston, and good morning, everyone. We appreciate you joining the call under what are very challenging circumstances for many. We hope that you and your families are safe and healthy. At Blackstone, we've been working remotely since March 16, but with the demands of the current market not to mention our heavy Zoom usage, we feel very connected as a team and with our important clients and counterparties as well. And we have a lot to update you about. Our Q1 was essentially a pre-COVID quarter with continued strong performance, although we did revise our CECL reserve at quarter end to reflect current market conditions Tony will take you through the details of the quarter and the reserve methodology, which as a reminder is an accounting adjustment and not specific to any loans in our portfolio.

I want to focus my remarks on where BXMT is today amid the pandemic and how our disciplined business model positions us for the staying power required in a time like this. Coming into this period of volatility, the overall real estate industry was