Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q4 2022 Earnings Presentation
34 slides from Brightspire Capital's earnings presentation, Feb 21, 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 scale, diversified and internally-managed commercial real estate credit REIT $4.9B $3.5B Total At-Share Assets Total Loan (Undepreciated) Portfolio Diversified Portfolio Primarily & Net Lea: +103 total loans, $34M aver
Slide 4: Summary Results & Subsequent Events Update
SUMMARY RESULTS & SUBSEQUENT EVENTS UPDATE * Q4'22 and full year 2022 Net Income of $0.03 per share and $0.34 per share, respectively * Q4'22 and full year 2022 Distributable Earnings of $0.27 per share and $0.53 per share, respectively FINANCIAL RESULTS * Q4'22 and full year 2022 Adjusted Distribut
Slide 5: Financial Overview
FINANCIAL OVERVIEW Key incial Metrics Capital Structure GAAP Net Income ($M) $4.2 Per Share $0.03 ™ Stockholders’ equity (undepreciated) Distributable Earnings ($M) $34.2 ™ Master repurchase facilities (limited recourse) Per Share $0.27 etl capitalization m= Securitization bonds payable (non-recours
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net carrying value as of December 31, 2022 Investment Carrying —_—Net carrying (At BRSP share) count value value Per share Loan portfolio Senior mortgage loans 96 3,383 $ 842 653 ™Net lease & other Mezzanine loans 6 m3 13 0.88 real
Slide 7: Loan Portfolio Highlights
LOAN PORTFOLIO HIGHLIGHTS $1.0B $34M S$+3.63% 100% 68% Total Average loan size W.A. cash coupon"! % floating rate") W.A. loan-to-value"! commitments) (total commitments) Loan Portfolio Activity $107 ($35) ($913) — i Total Loan Repayments + Sales 25 12/31/21 Total New Loans - Additional Loan Other!)
Slide 8: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW 103 $3.5B $34M 1.2 yrs. 3.2 yrs. 8.5% 3.2 100% 69% Total number of investments Total loan portfolio Average investment size W.A. remaining term") W.A. extended remaining term™) W.A. unlevered all-in yield") W.A. risk ranking F m Senior mortgage loans ™ Multifamily Office of s
Slide 9: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Collateral Type Region Exposure as a % of Carrying Value (At BRSP share) investment my . —, "9 we Sourheat Multifamily 59 $ 1,728,196 49% 18% 27% 1% 3% Office 32 1,169,853 33% 15% 6% 9% 3% Hotel 5 418,231 12% 12% -- 0% -- Mixed-use 4 151,307 4% = = 4% -” Industrial 3 5
Slide 10: Loan Portfolio Summary
LOAN PORTFOLIO SUMMARY Number of % of Net carrying W.A. unlevered extended (At BRSP share) vestments carrying value value yield") term (years) Floating rate Senior mortgage loans % $ 3,382,540 96% $ 841,975 8.3% 32 Mezzanine loans” 1 12,120 0% 12,120 15.4% 0.0 Total / W.A. floating rate 7 3,394,660
Slide 11: Loan Portfolio Maturities
LOAN PORTFOLIO MATURITIES Weighted average fully extended remaining term of approximately 3.2 years across the loan portfolio (14) Fully Ex: $1,500 = Fully extended loan maturities (carrying value) |= Unfunded commitments $1,250 $1,000 $750 $1,401 $500 $934 $250 $472 $525 $97 $96 $45 $12 $0 $3 2022°
Slide 12: Net Lease Real Estate & Other Real Estate Summary
NET LEASE REAL ESTATE & OTHER REAL ESTATE SUMMARY Noneerer nee Rentable ce re f i . GENGI W.A. % leased | W.A. remaining ineiceal ° square feet eli ee iL) at end of lease term investments | ownership % sae value value value {at BRSP share) 16) m7) (At BRSP share) ("RSF") period’ (years) N 7 NNN") Of
Slide 13: Investment Detail
INVESTMENT DETAIL Loan Portfolio Origination Carrying Coupon Cash Unlevered Extended Risk {At BRSP shore) Investment Type date City, State value type coupon all-inyield"'__ maturity date™ uv ranking Multifamily Loan 1* Senior Jun-19 Santa Clara, CA $ $7 Floating Le 9.0% Jun-24 65% 4 Loan 2 Senior Ma
Slide 14: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Loan Portfolio (Cont'd) Origination Carrying Coupon Cosh Unlevered Extended Risk (At BRSP share) Investment Type date City, State volue type coupon all-in yield" __maturity date" uv ranking Loan 39 Senior ‘Mar-22 Phoenix, AZ 23 ____ Floating 37% 83% ‘ApI-27 75% 3 Loan 40 S
Slide 15: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Loan Portfolio (Cont'd) Origination Carrying Coupon Cosh Unlevered Extended Risk (at BRSP shore) Investment Type date City, State value type coupon all-inyield"®”__maturity date™ uv ranking Loan 7 Senior Nov-2)__ Gardena, C& 28 Floating 935% 82% Dec=26 69% 3 Loan 78 Senior
Slide 16: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Net Lease Real Estate & Other Real Estate Origination Undepreciated Carrying 622 Hof #of —-Rentablesquare = W.A.—W.A. lease (At BRSP share) date Collateraltype City, State carrying value value NOL properties buildings feet ("RSF") % leased") term (yrs)? Net lease real esta
Slide 17: 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 $940M of repurchase facilities availability Key Financial Metrics Capital Structur
Slide 18: Capitalization Summary
CAPITALIZATION SUMMARY Recourse v: W.A. contractual Outstanding (At BRSP share) non-recourse' interest rate”? debt (UPB) Corporate debt Corporate revolving credit facility Recourse Jan-27 $+2.25% 6.72% $ - Investment-level debt Master repurchase facilities Limited recourse Oct-26 U/S+1.93% 6.30% 1,3
Slide 19: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY BRSP'’s portfolio is positioned to benefit in a rising rate environment a) 100% of senior mortgage loan value is floating rate 2) 57% of floating rate senior mortgage loan value is indexed to Term SOFR and 43% to one-month USD LIBOR Annual Net Interest Income Sensit ity to
Slide 20: Appendix
APPENDIX Be BRIGHTSPIRE
Slide 21: 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 22: Important Note Regarding Non-GAAP Financial Measures and Definitions (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 23: 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 Preferred
Slide 24: 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 Recelvables, net Deferred leasing costs and intangible assets, net ‘Ass
Slide 25: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS Net interest income Interest income Interest expense Interest income on mortgage loans held in securitization trusts Interest expense on mortgage obligations issued by securitization trusts Net interest income. Property and other income Property operating income
Slide 26: Consolidated Statement of Operations by Segment
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT Net interest income Interest income Interest expense Interest income on mortgage loans held in securitization trusts Interest expense on mortgage obligations issued by securitization trusts Net interest income Property and other income Property operati
Slide 27: Consolidated Statement of Operations by Segment
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT Net interest income Interest income Interest expense Interest income on mortgage loans held in securitization trusts Interest expense on mortgage obligations issued by securitization trusts Net interest income Property and other income Property operati
Slide 28: 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 December 31, 2022 Consolidated nei”) At BRSP share”) Assets Loans and preferred equity held for investment, net $ 3,468,742 $ - $ 3,468,742 Real estate, net 732,468 1
Slide 29: Reconciliation of GAAP to Non-GAAP Information (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP 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 per share
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 income to Distributable Earnings and Adjusted Distributable Earnings Net income attributable to BrightSpire Capital, Inc. common stockholders Adjustments: Net income attributable to noncontrolling interest o
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 NOI Net income attributable to BrightSpire Capital, Inc, common stockholders Adjustments: Net income attributable to non-net leased and other real estate portfolios’ Net loss attributable to noncon
Slide 32: Footnotes
FOOTNOTES 1. Includes availability under the corporate revolving creait facility and unrestricted cash as of February 15, 2023 2. Asof February 15, 2023 3. Debt-to-equity ratio based on BRSP’s share of total outstanding unpaid principal balance ("UPB") divided by total stockholders’ equity excluding
Slide 33: 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 34: BrightSpire Capital
BRIGHT SPIRE CAPITAL