Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q1 2025 Earnings Presentation
35 slides from Brightspire Capital's earnings presentation, Apr 30, 2025
Slide 1: Supplemental Financial Report First Quarter 2025
APRIL 29, 2025 SUPPLEMENTAL FINANCIAL REPORT FIRST QUARTER 2025 1
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 Diversified Portfolio Liquidity & Capitalization Earnings & Dividend $3.7B $2.5B $310M $145M $0.16 Total At-Share Assets Total Loa
Slide 4: Summary Results & Subsequent Events Update
SUMMARY RESULTS & SUBSEQUENT EVENTS UPDATE • GAAP Net Income of $5.3 million, or $0.04 per share • Distributable Earnings of $11.4 million, or $0.09 per share FINANCIAL • Adjusted Distributable Earnings of $20.1 million, or $0.16 per share RESULTS • Declared and paid a dividend of $0.16 per share fo
Slide 5: Financial Overview
FINANCIAL OVERVIEW Key Financial Metrics Capital Structure GAAP Net Income ($M) $5.3 1% Per Share $0.04 17% Stockholders' equity (undepreciated) Distributable Earnings ($M) $11.4 33% Securitization bonds payable (non-recourse) Per Share $0.09 Total capitalization Master repurchase facilities (limite
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net carrying value as of March 31, 2025 Investment Carrying Net carrying (At BRSP share) count value value Per share <1% Senior mortgage loans 72 $ 2,411 $ 735 $ 5.62 Loan portfolio 19% Mezzanine loans 2 46 46 0.36 Net lease & other
Slide 7: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW Overview Investment Type Property Type 74 Total number of investments $2.5B Total loan portfolio 2% 8% 2% 8% $33M Average investment size 53% 0.6 yrs. W.A. remaining term(12) 29% 1.6 yrs. W.A. extended remaining term(13) 98% 7.4% W.A. unlevered all-in yield(1) 3.2 W.A. risk r
Slide 8: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Collateral Type Region Exposure as a % of Carrying Value Number of Carrying % of carrying West Southwest Northeast Southeast (At BRSP share) investments value value Multifamily 44 $ 1,305,221 53% 22% 25% 2% 5% Office 21 720,107 29% 12% 9% 5% 3% Hotel 2 206,903 8% 8% --
Slide 9: Loan Portfolio Summary
LOAN PORTFOLIO SUMMARY Number of Carrying % of Net carrying W.A. unlevered W.A. extended (1) (At BRSP share) investments value carrying value value all-in yield term (years)(13) Floating rate Senior mortgage loans 71 $ 2,391,624 97% $ 715,114 7.3% 1.6 Total / W.A. floating rate 71 2,391,624 97% 715,
Slide 10: Loan Portfolio Maturities
LOAN PORTFOLIO MATURITIES Weighted average fully extended remaining term of approximately 1.6 years across the loan portfolio Fully Extended Loan Maturities(13) $1,000 Fully extended loan maturities (carrying value) Unfunded commitments $750 $ in Millions $500 $928 $855 $250 $515 $160 $37 $42 $16 $1
Slide 11: Loan Portfolio Risk Rankings & CECL Reserve
LOAN PORTFOLIO RISK RANKINGS & CECL RESERVE Risk Ranking Overview CECL Reserve Overview Q4'24 Q4’24 W.A. Risk Ranking: 3.2 Specific CECL Reserve No specific CECL reserve on Q1’25 W.A. Risk Ranking: 3.2 balance sheet for Q4’24 & Q1’25 Q1'25 General CECL Reserve 84% 84% Loan Loan Count Count 69 67 Tot
Slide 12: Net Lease Real Estate & Other Real Estate Summary
NET LEASE REAL ESTATE & OTHER REAL ESTATE SUMMARY Rentable % of net W.A. % W.A. Carrying Net carrying Q1'25 NOI Number of BRSP square feet carrying leased remaining value value (at BRSP investments ownership % ("RSF") / value at end of lease term (Undep.) (Undep.) share) Units (Undep.) period(17) (y
Slide 13: Loan Portfolio Watch List Loans
LOAN PORTFOLIO WATCH LIST LOANS San Jose, CA Santa Clara, CA Las Vegas, NV Tualatin, OR Reston, VA Dallas, TX Austin, TX Investment Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan (Loan 66) (Loan 1) (Loan 2) (Loan 48) (Loan 51) (Loan 52) (Loan 28) Risk Ranking (Q1
Slide 14: Real Estate Owned
REAL ESTATE OWNED Multifamily Multifamily Multifamily Multifamily Office Office Investment Arlington, TX Phoenix, AZ Fort Worth, TX Mesa, AZ Long Island City, NY Long Island City, NY (Other Real Estate 3) (Other Real Estate 4) (Other Real Estate 5) (Other Real Estate 6) (Other Real Estate 7) (Other
Slide 15: Investment Detail
INVESTMENT DETAIL Loan Portfolio Origination Carrying Coupon Cash Unlevered Extended Q1'25 Risk Q4'24 Risk (At BRSP share) Investment Type date City, State value type coupon all-in yield(1) maturity date(13) LTV ranking ranking Multifamily Loan 1 *,** Senior Jun-19 Santa Clara, CA $ 57 Floating n/a
Slide 16: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT’D) Loan Portfolio (Cont’d) Origination Carrying Coupon Cash Unlevered Extended Q1'25 Risk Q4'24 Risk (At BRSP share) Investment Type date City, State value type coupon all-in yield(1) maturity date(13) LTV ranking ranking Loan 34 Senior Jan-22 Austin, TX 20 Floating S+3.4% 7.
Slide 17: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT’D) Loan Portfolio (Cont’d) Origination Carrying Coupon Cash Unlevered Extended Q1'25 Risk Q4'24 Risk (At BRSP share) Investment Type date City, State value type coupon all-in yield(1) maturity date(13) LTV ranking ranking Hotel Loan 66 * Senior Jan-18 San Jose, CA $ 135 Float
Slide 18: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT’D) Net Lease Real Estate & Other Real Estate Undepreciated Origination Collateral Undepreciated net carrying Q1'25 # of Rentable square W.A. W.A. lease (At BRSP share) date type City, State carrying value value NOI properties feet ("RSF") / Units % leased(17) term (yrs)(18) N
Slide 19: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Diversified capital structure of primarily non-recourse debt and a 2.0x debt-to-equity ratio. Embedded capacity under existing financing facilities including an undrawn corporate revolver and $1.2B of repurchase facilities availability Key Financial Metrics Capital Structur
Slide 20: Capitalization Summary
CAPITALIZATION SUMMARY Recourse vs. W.A. extended W.A. contractual W.A. all-in Outstanding (20) (21) (21) (5) (At BRSP share) non-recourse maturity interest rate COF debt (UPB) Corporate debt Corporate revolving credit facility Recourse Jan-27 S + 2.25% 6.68% $ - Investment-level debt Master repurch
Slide 21: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY Annual Net Interest Income Sensitivity to Changes in Benchmark Rates – Total Investment Portfolio SOFR: 4.32% (As of March 31, 2025) $2.5 $0.01 per share $1.4 $0.0 ($1.4) ($0.01) $ in Millions per share ($2.5) ($2.7) ($0.02) per share ($4.0) ($0.03) ($5.2) per share ($5.0)
Slide 22: Appendix
APPENDIX BRIGHTSPIRE APITAL
Slide 23: 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 24: Important Note Regarding Non-GAAP Financial Measures and Definitions (Cont'd)
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS (CONT’D) The Company presents pro rata (“at share” or “at BRSP 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 a
Slide 25: 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 26: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET March 31, 2025 (Unaudited) December 31, 2024 Assets Cash and cash equivalents $ 200,911 $ 302,173 Restricted cash 90,896 148,523 Loans held for investment 2,457,835 2,518,925 Current expected credit loss reserve (155,365) (165,932) Loans held for investment, net 2,302,470
Slide 27: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended March 31, 2025 2024 Net interest income Interest income $ 48,086 $ 67,563 Interest expense (32,211) (40,133) Net interest income 15,875 27,430 Property and other income Property operating income 26,858 25,105 Other income 2,618 3,099 Total prop
Slide 28: Consolidated Statement of Operations by Segment
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT Three Months Ended March 31, 2025 Net leased and Corporate and Loan portfolio other real estate other Total Net interest income Interest income $ 47,991 $ 28 $ 67 $ 48,086 Interest expense (31,844) (67) (300) (32,211) Net interest income (expense) 16,1
Slide 29: 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 March 31, 2025 Consolidated NCI(22) At BRSP share (23) Assets Loans and preferred equity held for investment, net $ 2,302,470 $ - $ 2,302,470 Real estate, net 782,24
Slide 30: 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 As of March 31, 2025 GAAP net book value (excluding noncontrolling interests in investment entities) $ 1,034,924 Accumulated depreciation and amortization(10) 241,234
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 income to Distributable Earnings and Adjusted Distributable Earnings Three Months Ended March 31, 2025 Net income attributable to BrightSpire Capital, Inc. common stockholders $ 5,342 Adjustments: Non-cash
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 income to NOI Three Months Ended March 31, 2025 Net income attributable to BrightSpire Capital, Inc. common stockholders $ 5,342 Adjustments: Net income attributable to non-net leased and other real estate
Slide 33: Footnotes
FOOTNOTES 1. In addition to the stated cash coupon rate, unlevered all-in yield includes non-cash PIK interest income and the accrual of origination and exit fees. For W.A. calculations, unlevered all-in yield for the loan portfolio assumes the applicable floating benchmark rate or benchmark floor a
Slide 34: 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 35: Thank You
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