Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q2 2023 Earnings Presentation
36 slides from Brightspire Capital's earnings presentation, Aug 2, 2023
Slide 1: Exhibit 99.2
Exhibit 99.2
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and
Slide 3: Company Highlights
COMPANY HIGHLIGHTS BrightSpire Capital, Inc. (“BRSP” or the “Company”) is a large publicly-traded, diversified and internally- managed commercial real estate credit REIT $4.5B $3.2B Total At-Share Assets Total Loan (Undepreciated) Portfolio Diversified Portfolio Of Primari & Net Lease *96 total loan
Slide 4: Summary Results & Subsequent Events Update
SUMMARY RESULTS & SUBSEQUENT EVENTS UPDATE . . FINANCIAL RESU GAAP Net Loss of ($7.5) million, or ($0.06) per share Distributable Earnings of $21.1 million, or $0.16 per share Adjusted Distributable Earnings of $32.0 million, or $0.25 per share GAAP net book value of $10.16 per share and undepreciat
Slide 5: Financial Overview
FINANCIAL OVERVIEW Key ial Metrics Capital Structure GAAP Net Loss ($M) ($7.5) Per Share ($0.06) ™ Stockholders’ equity (undepreciated) Distributable Earnings ($M) $211 ™ Master repurchase facilities (limited recourse) Per Share $0.16 eel capitalization '™ Securitization bonds payable (non-recourse)
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net carrying value as of June 30, 2023 Investment Carrying Net carrying (At BRSP share) count value value Per share mLoonpsortroler Senior mortgage loans 89 $ 3,066 $ 819 $ 6.30 Mezzanine loans 6 75 7S 0.58 ™Net lease & other real e
Slide 7: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW 96 Total number of investments $3.2B Total loan portfolio $33M Average investment size 0.9 yrs. W.A. remaining term) 2.9 yrs. W.A extended remaining term" 9.1% W.A. unlevered all-in yield 3.1 W.A. risk ranking - Senior mortgage loans = Multifamily "Office 100% of senior loans
Slide 8: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Collateral Type Region Exposure as a % of Carrying Value avaRspisnee) Number of os % ores West Southwest Northeast Southeast Multifamily 56 $ 1,657,944 52% 20% 28% 1% 3% Office 31 1,023,032 32% 15% 7% 7% 3% Hotel 3 278,885 9% 8% cS 1% 2 Mixed-use ES 151,794 5% - -- 5%
Slide 9: Loan Portfolio Summary
LOAN PORTFOLIO SUMMARY Number of let carrying extend: (At BRSP share) investments value term (years) Floating rate Senior mortgage loans 89 $ 3,066,108 97% $ 819,200 9.0% 29 Mezzanine loans 1 12,450 0% 12,450 17.1% Os Total / W.A. floating rate 90 3,078,558 97% 831,650 9.1% 29 Fixed rate Mezzanine l
Slide 10: Loan Portfolio Maturities
LOAN PORTFOLIO MATURITIES Weighted average fully extended remaining term of approximately 2.9 years across the loan portfolio Fully Extended Loan Maturities" $1,500 = Fully extended loan maturities (carrying value) m= Unfunded commitments $1,250 $1,000 a c S $750 £ rd $500 $250 $0 2023 2024 2025 202
Slide 11: Risk Ranking and CECL Reserve
9Q223 83% k Ranking Specific CECL Reserve * ™ General CECL Reserve Total Reserve $146M . Total Reserve Loan Count $107M 38% Risk Rank 4 62% Risk Rank 283 =QT23 §Q2'23 Multifamily Office Hotel Mixed-use Inustrial BG@ BRIGHTSPIR Above charts based on GAAP gross carrying value and excludes the impact o
Slide 12: Loan Portfolio Top Office Loans
LOAN PORTFOLIO TOP 5 OFFICE LOANS Investment Boston, MA Senior Loan (Loan 57) Carlsbad, CA Senior Loan San Jose, CA Senior Loan Phoenix, AZ Senior Loan Baltimore, MD Senior Loan Investment Type Origination Date / Transaction Type Collateral Carrying Value / % of Total Office Loan Portfolio Loan Basi
Slide 13: Net Lease Real Estate & Other Real Estate Summary
NET LEASE REAL ESTATE & OTHER REAL ESTATE SUMMARY Rentable 5 . W.A. % leased |W.A. remaining Number of BRSP Carrying % of carrying | Net carrying | @2'23 NOI Ai i square feet at end of lease term investments ownership %| “Tare t value value value —_|(at BRSP share) eens Aa (At BRSP share) ("RSF") pe
Slide 14: Loan Portfolio Watch List
LOAN PORTFOLIO WATCH LIST Investment Washington, D.C. Office Senior Loan Oakland, CA Office Senior Loan (Loan 74) (Loan 84) San Jose, CA Hotel Senior Loan (Loan 88) Las Vegas, NV Multifamily Senior Loan {Loan 4) Phoenix, AZ Multifamily Senior Loan (Loan 6) inesmer Toe Hare mee Qtsnentate/ yz /teason
Slide 15: Loan Portfolio Watch List Loans (Cont'd)
LOAN PORTFOLIO WATCH LIST LOANS (CONT'D) Arlington, TX Tualatin, OR Office Senior Loan (Loan 64) Investment Multifamily Senior Loan (Loan 7) Reston, VA Office Glendale, AZ Multifamily Senior Loan (Loan 31) Senior Loan (Loan 65) Floating-Rate Senior Loan Floating-Rate Investment Type Senior Loan 2 ro
Slide 16: Investment Detail
INVESTMENT DETAIL Loan Portfolio Origination ‘Coupon Cash Unlevered Extended Q223 Risk 125 Risk (At BRSP share) Investment Type date City, State type coupon all-inyield™ maturity date” uv ranking ranking [Multifamily Loan 1" Senior Jun-19 Santa Ciara, CA $ 57 Floating S+55% 10.6% Jun-24 6% 3 4 Loan
Slide 17: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Loan Portfolio (Cont'd) Origination Coupon Cash Unlevered Extended Q225 Risk QT23 Risk (At BRSP share) Investment Type date City, State value type coupon all-inyield™ maturity date” uv ranking ranking Loan 39 Prefered Nov-22 _ Mpitas, CA 3 Fixed 60% T21% Dec-32 n/a 3 3 Loa
Slide 18: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) ‘Coupon Cosh Unlevered Extended @223Risk 123 Risk (At BRSP share) Investment Type City, State value type coupon alin yield __maturitydate"! Tv ranking ranking [Office Loan 7 Senior Son Francisco, CA $ 23 Floating S13.3% 8am Oct-24 82% 3 3 Loan 78 Senior Denver, CO 23 Float
Slide 19: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Net Lease Real Estate & Other Real Estate Origination Undepreciated Carrying azz tof of Rentablesquare = WA. WA. ease (At BRSP share) date Collateraltype _City, State carrying value value NOL properties buildings feet ("RSF") %leased™ term (yrs) Net lease real estate Net l
Slide 20: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Diversified capital structure of primarily non-recourse debt and a 1.9x debt-to-equity ratio. Embedded capacity under existing financing facilities including an undrawn corporate revolver and $791M of repurchase facilities availability Key Financial Metrics Capital Structur
Slide 21: Capitalization Summary
CAPITALIZATION SUMMARY (At BRSP share) Corporate debt Corporate revolving credit facility Investment-level debt Master repurchase facilities Securitization bonds payable (2021-FL1) Mortgage debt — net lease (fixed) Securitization bonds payable (2019-FL1) Mortgage debt - other real estate (fixed) Oth
Slide 22: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY 2) 100% of senior mortgage loan value is floating rate nnual Net Interest Income Sensitivity to Changes in Benchmark Rate: tal Portfolio SOFR: 5.14% (As of June 30, 2023) $5.0 $4.0 $0.03 per share $0.0 ($0.03) ($0.06) per share per share $ in Millions ($5.0) hoon ($4.0) per
Slide 23: Appendix
APPENDIX Be BRIGHTSPIRE
Slide 24: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS We present Distributable Earnings, which is a non-GAAP supplemental financial measure of our performance. We believe that Distributable Earnings provides meaningful information to consider in addition to our net income and cash flo
Slide 25: Important Note Regarding Non-GAAP Financial Measures (Cont'd)
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS (CONT'D) NOI should not be considered as an alternative to net income (loss), determined in accordance with GAAP, as an indicator of operating performance. In addition, our methodology for calculating NOI involves subjective judgme
Slide 26: Notes Regarding Reportable Segments
NOTES REGARDING REPORTABLE SEGMENTS BrightSpire Capital, Inc. ("BRSP", “BrightSpire Capital”, the "Company" or "We") currently holds investment interests through the reportable segments below, which are based on how management reviews and manages its business. Senior and Mezzanine Loans and Preferre
Slide 27: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Assets Cash and cash equivalents Restricted cash Loans and preferred equity held for investment Current expected credit loss reserve Loans and preferred equity held for investment, net Real estate, net Receivables, net Deferred leasing costs and intangible assets, net Othe
Slide 28: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS ‘Three Months Ended June 30, 2023 2022 Net interest income Interest income $ 74,339 53,083 Interest expense (44,095) (21,455) Interest income on mortgage loans held in securitization trusts - 9721 Interest expense on mortgage obligations issued by securitization
Slide 29: Consolidated Statement of Operations by Segment
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT Net interest income interest income Interest expense Net interest income Property and other income Property operating income Other income Total property and other income Expenses Property operating expense Transaction, investment and servicing expense
Slide 30: Reconciliation of GAAP to Non-GAAP Financial Information
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION Reconciliation of consolidated balance sheet to at share balance sheet As of June 30, 2023 Consolidated Nei? At BRSP share” Assets Loans and preferred equity held for investment, net $ 3,112,973 $ - $ 3,112,973 Real estate, net 77,383 13,053,
Slide 31: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT'D) Reconciliation of GAAP net book value to undepreciated book value GAAP net book value (excluding noncontrolling interests in investment entities) Accumulated depreciation and amortization® Undepreciated book value GAAP net book value
Slide 32: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT'D) Reconciliation of GAAP net loss to Distributable Earnings and Adjusted Distributable Earnings Three Months Ended June 30, 2023 Net loss attributable to BrightSpire Capital, Inc. common stockholders $ (7,486) Adjustments: Non-cash equi
Slide 33: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT'D) Reconciliation of GAAP net loss to NOI Net loss attributable to BrightSpire Capital, Inc. common stockholders Adjustments: Net loss attributable to non-net leased and other real estate portfolios Net loss attributable to noncontrollin
Slide 34: Footnotes
FOOTNOTES 1. _ Includes availability under the corporate revolving credit facility and unrestricted cash as of July 28, 2023 2. As of July 28, 2023 3. Debt-to-equity ratio based on BRSP’s share of total outstanding unpaid principal balance ("UPB") divided by total stockholders’ equity excluding the
Slide 35: Company Information
COMPANY INFORMATION BrightSpire Capital (NYSE: BRSP) is internally managed and one of the largest publicly traded commercial real estate (CRE) credit REITs, focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE debt investments and net leased p
Slide 36: BrightSpire Capital
BRIGHT SPIRE CAPITAL