Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Colony Credit Real Estate — Q1 2020 Earnings Presentation
44 slides from Brightspire Capital's earnings presentation, May 7, 2020
Slide 1: Supplemental Financial Report First Quarter 2020
Supplemental Financial Report First Quarter 2020 May 7, 2020 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: Non-GAAP Financial Measures: Core Earnings/LNS Earnings
We present Core Earnings/Legacy, Non-Strategic (“LNS”) Earnings, which are non-GAAP supplemental financial measures of our performance. Our Core Earnings are generated by the Core Portfolio and Legacy, Non-Strategic Earnings are generated by the Legacy, Non-Strategic Portfolio. We believe that Core
Slide 4: Pro Rata Financial Information
The Company presents pro rata (“at share” or “at CLNC share”) financial information, which is not, and is not intended to be, a presentation in accordance with GAAP. The Company computes pro rata financial information by applying its economic interest to each financial statement line item on an inve
Slide 5: Colony Credit Real Estate Reportable Segments
Colony Credit Real Estate, Inc. (“CLNC”, “Colony Credit Real Estate”, the “Company” or “We”) currently holds investment interests through the reportable segments below, which are based on how management reviews and manages its business. Each segment also includes corporate-level asset management and
Slide 6: Table of Contents
Table of contents Business Developments & Portfolio Highlights Core Portfolio Portfolio Overview Loan & Preferred Equity Portfolio CRE Debt Securities Net Lease Real Estate Investment Detail Legacy, Non-Strategic Portfolio Capitalization Appendix Page 7 11 12 13 15 16 17 19 28 31
Slide 7: I. Business Developments & Portfolio Highlights
I. Business Developments & Portfolio Highlights
Slide 8: Business Developments and Operating Results
Michael J. Mazzei joined as Chief Executive Officer & President of the Company on April 1, 2020 Operating Results Q1’20 GAAP net loss of $(78.8) million, or $(0.62) per share Q1’20 Total Core / LNS Earnings of $11.5 million, or $0.09 per share; Total Core / LNS Earnings excluding gains / (losses) of
Slide 9: CRE Debt Securities, Investments and Portfolio Management Update
CRE Debt Securities Master Repurchase Facilities: Subsequent to the first quarter, the Company consolidated its borrowings with one existing counterparty, paid down its borrowings to a blended advance rate of 62% (providing for 15% of buffer before any additional margin calls) and extended the repur
Slide 10: Company Snapshot: Company Overview
I. Company snapshot Company overview ($ in thousands, unless otherwise stated; as of March 31, 2020; at CLNC share) See footnotes in the appendix $5.4 billion Total at-share assets(1) 60% Debt-to-asset ratio(2) 1.4x Net-debt-to-equity ratio(3) $2.0 billion / $14.85 per share GAAP net book value(1) $
Slide 11: II. Core Portfolio
ColonyCredit REAL ESTATE ll. CORE PORTFOLIO
Slide 12: Core Portfolio – Overview
II. Core Portfolio – Overview (As of March 31, 2020; at CLNC share) See footnotes in the appendix Select Underlying Assets Northern California Luxury Hotel Northeast Office Property Southwest Multifamily Property NNN Dublin Office Campus Investment type(3) Property type(3) Portfolio summary 110 Tota
Slide 13: Core Portfolio – Loans & Preferred Equity Portfolio Overview
II. Core Portfolio – Loans & Preferred Equity Portfolio Overview Overview Investment type(5) (As of March 31, 2020; at CLNC share) $2.9 billion Total loans & preferred equity(1) 53 Total number of investments $54 million Average investment size 92% % Senior loans floating rate (All floating rate sen
Slide 14: Loans & Preferred Equity Portfolio Overview (Cont'd)
II. Core Portfolio – Loans & Preferred Equity Portfolio Overview (Cont’d) ($ in thousands; as of March 31, 2020; at CLNC share) See footnotes in the appendix
Slide 15: Core Portfolio – CRE Debt Securities
II. Core portfolio – CRE Debt securities Ratings Category(6) Vintage(6) (As of March 31, 2020, unless otherwise stated; at CLNC share) Overview $469 million Principal value(1) $270 million Carrying value(1) $73 million Net carrying value(2) 51 Total number of investments(3) 6.0 years W.A. remaining
Slide 16: Core Portfolio – Net Lease Real Estate
II. Core Portfolio – Net lease real estate Property type(7) ($ and square feet in thousands; as of March 31, 2020, unless otherwise stated; at CLNC share) Geography(7) W.A. remaining lease term(6)(7) * 100% is related to industrial net lease properties See footnotes in the appendix
Slide 17: Core Portfolio – Investment Detail
Core Portfolio – loans & preferred equity portfolio II. Core Portfolio – Investment Detail ($ in millions; as of March 31, 2020; at CLNC share) See footnotes in the appendix * Reflects loans and preferred equity interests in which the underlying collateral is related to construction/development proj
Slide 18: Core Portfolio – Investment Detail (Cont'd)
II. Core Portfolio – Investment Detail (Cont’d) ($ in millions; rentable square feet in thousands; as of March 31, 2020; at CLNC share) Core Portfolio – loans & preferred equity portfolio (cont’d) Core Portfolio – net lease real estate * Reflects loans and preferred equity interests in which the und
Slide 19: III. Legacy, Non-Strategic Portfolio
III. Legacy, Non-Strategic Portfolio
Slide 20: Legacy, Non-Strategic – Portfolio Overview
III. Legacy, Non-Strategic – Portfolio Overview ($ in thousands, unless otherwise stated; as of March 31, 2020; at CLNC share) See footnotes in the appendix Portfolio Activity Investment type(3) Property type(3) Portfolio summary Portfolio Overview Q1’20 LNS Earnings ex. gains / (losses) of approxim
Slide 21: Legacy, Non-Strategic – Loans & Preferred Equity Portfolio Overview
III. Legacy, Non-Strategic – Loans & Preferred Equity Portfolio Overview Overview Investment type(5) (As of March 31, 2020; at CLNC share) $92 million Total loans & preferred equity(1) 11 Total number of investments $8 million Average investment size 59% % Senior loans floating rate 0.4 years W.A. r
Slide 22: Legacy, Non-Strategic – Loans & Preferred Equity Overview (Cont'd)
* During the first quarter 2020, placed one senior loan on non-accrual ** Represents an equity participation interest ** III. Legacy, Non-Strategic – Loans & Preferred Equity Portfolio Overview (Cont’d) ($ in thousands; as of March 31, 2020; at CLNC share) See footnotes in the appendix *
Slide 23: Legacy, Non-Strategic – Net Lease Real Estate
III. Legacy, Non-Strategic – net lease real estate Property type(7) ($ and square feet in thousands; as of March 31, 2020, unless otherwise stated; at CLNC share) Geography(7) W.A. remaining lease term(6)(7) See footnotes in the appendix
Slide 24: Legacy, Non-Strategic – Other Real Estate
Property type(8) III. Legacy, Non-Strategic – Other real estate ($ and square feet in thousands; as of March 31, 2020, unless otherwise stated; at CLNC share) Geography(8) W.A. remaining lease term(6)(8) See footnotes in the appendix * During the first quarter 2020, the Company sold five Legacy, Non
Slide 25: Legacy, Non-Strategic – Investment Detail
III. Legacy, Non-Strategic – Investment Detail ($ in millions; as of March 31, 2020; at CLNC share) Legacy, Non-Strategic Portfolio – loans & preferred equity portfolio * Represents loans on nonaccrual status ** Reflects loans and preferred equity interests in which the underlying collateral is rela
Slide 26: Legacy, Non-Strategic – Investment Detail (Cont'd)
III. Legacy, non-Strategic – Investment Detail (Cont’d) ($ in millions; rentable square feet in thousands; as of March 31, 2020; at CLNC share) Legacy, Non-Strategic Portfolio – net lease & other real estate See footnotes in the appendix
Slide 27: Legacy, Non-Strategic – Investment Detail (Cont'd)
III. Legacy, non-Strategic – Investment Detail (Cont’d) ($ in millions; rentable square feet in thousands; as of March 31, 2020; at CLNC share) Legacy, Non-Strategic Portfolio – net lease & other real estate (cont’d) See footnotes in the appendix Legacy, Non-Strategic Portfolio – net lease & other r
Slide 28: IV. Capitalization
ColonyCredit REAL ESTATE IV. CAPITALIZATION
Slide 29: Capitalization Highlights
IV. Capitalization Highlights (As of March 31, 2020, unless otherwise stated; at CLNC share) Overview $5.2 billion Total capitalization (excluding cash) $3.2 billion Total outstanding debt(1) $299 million Corporate revolving credit facility outstanding As of May 6, 2020 $0.7 billion ($2.3 billion ma
Slide 30: Capitalization Overview
IV. Capitalization overview ($ in thousands; as of March 31, 2020; at CLNC share) See footnotes in the appendix
Slide 31: V. Appendix
ColonyCredit REAL ESTATE V. APPENDIX
Slide 32: Consolidated Balance Sheet
V. Appendix – Consolidated Balance sheet (In thousands, except share and per share data; as of March 31, 2020 unless otherwise stated)
Slide 33: Consolidated Statements of Operations
V. Appendix – Consolidated Statements of operations (In thousands, except per share data; as of March 31, 2020, unless otherwise stated) (Unaudited)
Slide 34: Consolidated Statements of Operations By Segment
V. Appendix – Consolidated Statements of operations By Segment ($ in thousands; as of March 31, 2020) (Unaudited)
Slide 35: Outstanding Common Shares and OP Units
V. Appendix – Outstanding common shares and Op units
Slide 36: Reconciliation of GAAP to Non-GAAP Financial Information
V. Appendix – reconciliation of gaap to non-gaap financial information (In thousands, except per share data; as of March 31, 2020) (Unaudited) Reconciliation of consolidated balance sheet to at CLNC share balance sheet See footnotes in the appendix
Slide 37: Reconciliation of GAAP Net Book Value to Undepreciated Book Value
Reconciliation of GAAP net book value to undepreciated book value V. Appendix – reconciliation of gaap to non-gaap financial information (Cont’d) (In thousands, except per share data; as of March 31, 2020) (Unaudited) See footnotes in the appendix
Slide 38: Reconciliation of GAAP Net Income to Core Earnings/LNS Earnings
V. Appendix – Reconciliation of GAAP to Non-gaap financial information (Cont’d) (In thousands, except per share data; as of March 31, 2020) (Unaudited) Reconciliation of GAAP net income (loss) to Core Earnings (Loss)/Legacy, Non-Strategic Earnings (Loss) See footnotes in the appendix
Slide 39: Reconciliation of GAAP Net Income to NOI/EBITDA
Reconciliation of GAAP net income (loss) to NOI/EBITDA V. Appendix – Reconciliation of GAAP to Non-gaap financial information (Cont’d) ($ in thousands; as of March 31, 2020) (Unaudited)
Slide 40: Appendix – Footnotes
V. Appendix – Footnotes Page 9 Net carrying value includes $27.5 million of investment-level financing related to one sold / resolved asset that was paid down subsequent to September 30, 2019. As a result, net carrying values as of September 30, 2019 may not be an appropriate proxy when comparing to
Slide 41: Appendix – Footnotes (cont'd)
V. Appendix – Footnotes (cont’d) Page 15 (cont’d) W.A. calculation based on carrying value at CLNC share as of March 31, 2020 In addition to the stated cash coupon rate, unlevered all-in yield includes non-cash interest income related to the accretion of purchase discounts and are loss-adjusted for
Slide 42: Appendix – Footnotes (cont'd)
V. Appendix – Footnotes (cont’d) Page 20 (cont’d) Other includes commercial and residential development and predevelopment assets Represents carrying values at CLNC share as of March 31, 2020 Represents carrying values net of any in-place investment-level financing at CLNC share as of March 31, 2020
Slide 43: Appendix – Footnotes (cont'd)
V. Appendix – Footnotes (cont’d) Page 26 Represents the percent leased as of March 31, 2020 and is weighted by carrying value at CLNC share as of March 31, 2020. Excludes hotel properties Based on in-place leases (defined as occupied and paying leases) as of March 31, 2020 and assumes that no renewa
Slide 44: Company Information
Company Website: www.clncredit.com V. Company information Colony Credit Real Estate, Inc. (NYSE: CLNC) is one of the largest publicly traded commercial real estate credit REITs, focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE senior mortg
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