Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Colony Credit Real Estate — Q2 2020 Earnings Presentation
37 slides from Brightspire Capital's earnings presentation, Aug 6, 2020
Slide 1: Supplemental Financial Report Second Quarter 2020
Supplemental Financial Report Second Quarter 2020 August 6, 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: Company Highlights
ColonyCredit REAL ESTATE COMPANY HIGHLIGHTS
Slide 4: Second Quarter Highlights
Non-Recourse Preferred Financing Closed $229 million non-recourse preferred financing on a portfolio of five investments Asset Sales – Core Portfolio Since Q1 2020, sold 3 investments for $222 million of net proceeds Sold 27 CRE debt securities for $24 million of net proceeds One investment under co
Slide 5: CLNC generated liquidity and solidified the balance sheet
CLNC generated liquidity, further solidified the balance sheet and improved positioning for future opportunities Second quarter Significant Developments $229 million of non-recourse preferred financing on portfolio of five Company investments. Borrowings of $200 million at closing representing a 52.
Slide 6: Events during the quarter resulted in a book value reduction of $1.69 per share
In aggregate, events during the quarter resulted in a book value reduction of $1.69 per share Second quarter Book Value Bridge Undepreciated Book Value Adjustments(1) As of 3/31/20 LA Mixed-Use Development Other Impairments / Asset Sales(2) Non-Recourse Preferred Financing Earnings & Other Adjustmen
Slide 7: Balance sheet summary
Balance sheet summary Company Overview ($ in thousands, unless otherwise stated; as of June 30, 2020; at CLNC share) See footnotes in the appendix $4.7 billion Total at-share assets(1) 60% Debt-to-asset ratio(2) 1.4x Net-debt-to-equity ratio(3) $1.7 billion / $13.06 per share GAAP net book value(1)
Slide 8: Core Portfolio
ColonyCredit REAL ESTATE CORE PORTFOLIO
Slide 9: Core Portfolio – Overview
Q2’20 Core Earnings ex. gains / (losses) of approximately $35.6 million, or $0.27 per share During the second quarter 2020, sold one preferred equity interest and 27 CRE debt securities for $121 million of net proceeds Subsequent to the second quarter 2020, sold one senior loan and one preferred equ
Slide 10: Core Portfolio – Loans & Preferred Equity Portfolio Overview
Core Portfolio – Loans & Preferred Equity Portfolio Overview Overview Investment Type(5) (As of June 30, 2020; at CLNC share) 51 Total number of investments $2.5 billion Total loans & preferred equity(1) $49 million Average investment size 98% % Senior loans floating rate (All floating rate senior l
Slide 11: Core Portfolio – Loans & Preferred Equity Portfolio Overview (Cont'd)
Core Portfolio – Loans & Preferred Equity Portfolio Overview (Cont’d) ($ in thousands; as of June 30, 2020; at CLNC share) See footnotes in the appendix
Slide 12: Core Portfolio – CRE Debt Securities
Core portfolio – CRE Debt securities Ratings Category(5) Vintage(5) (As of June 30, 2020, unless otherwise stated; at CLNC share) Overview 24 Total number of investments(1) $285 million Principal value(2) $142 million Carrying value(2) $103 million Net carrying value(3) 5.6 years W.A. remaining term
Slide 13: Core Portfolio – Net Lease Real Estate
Core Portfolio – Net lease real estate Property type(7) ($ and square feet in thousands; as of June 30, 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 14: Core Portfolio – Investment Detail
Core Portfolio – loans & preferred equity portfolio Core Portfolio – Investment Detail ($ in millions; as of June 30, 2020; at CLNC share) See footnotes in the appendix * ** Represents loans and preferred equity interests which sold/paid off subsequent to the second quarter 2020 Reflects loans and p
Slide 15: Core Portfolio – Investment Detail (Cont'd)
Core Portfolio – Investment Detail (Cont’d) ($ in millions; as of June 30, 2020; at CLNC share) Core Portfolio – loans & preferred equity portfolio (cont’d) Core Portfolio – CRE debt securities * ** *** See footnotes in the appendix Represents loans and preferred equity interests which sold/paid off
Slide 16: Core Portfolio – Investment Detail (Cont'd)
Core Portfolio – Investment Detail (Cont’d) ($ in millions; rentable square feet in thousands; as of June 30, 2020; at CLNC share) Core Portfolio – net lease real estate Core Portfolio – summary See footnotes in the appendix HFS = held for sale
Slide 17: Legacy, Non-Strategic Portfolio
Legacy, Non-Strategic Portfolio
Slide 18: Legacy, Non-Strategic – Portfolio Overview
Portfolio Summary 43 Total number of investments $0.6 billion Total at-share assets(1) $0.1 billion / $0.67 GAAP net book value / per share(1) $0.2 billion / $1.30 Undepreciated net book value / per share(1) Q2’20 LNS Earnings (Loss) ex. gains / (losses) of approximately $(1.0) million, or $(0.01) p
Slide 19: Capitalization
ColonyCredit REAL ESTATE CAPITALIZATION
Slide 20: Capitalization Highlights
Entered temporary modifications on two master repurchase facilities to which CLNC voluntarily reduced facility advances corresponding to its financed senior mortgage loans. Agreed to six-month holidays or buffers before further margin calls, additional protections before certain repurchase obligatio
Slide 21: Capitalization overview
Capitalization overview ($ in thousands; as of June 30, 2020; at CLNC share) See footnotes in the appendix
Slide 22: Appendix
ColonyCredit REAL ESTATE APPENDIX
Slide 23: Core Earnings and LNS Earnings non-GAAP measures
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 24: Pro rata (at share) 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 25: Reportable segments description
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 26: Appendix – Consolidated Balance Sheet
Appendix – Consolidated Balance sheet (In thousands, except share and per share data; as of June 30, 2020 unless otherwise stated)
Slide 27: Appendix – Consolidated Statements of Operations
Appendix – Consolidated Statements of operations (In thousands, except per share data; as of June 30, 2020, unless otherwise stated) (Unaudited)
Slide 28: Appendix – Consolidated Statements of Operations By Segment
Appendix – Consolidated Statements of operations By Segment ($ in thousands; as of June 30, 2020) (Unaudited)
Slide 29: Appendix – Outstanding common shares and OP units
Appendix – Outstanding common shares and Op units
Slide 30: Reconciliation of GAAP to non-GAAP financial information
Appendix – reconciliation of gaap to non-gaap financial information (In thousands, except per share data; as of June 30, 2020) (Unaudited) Reconciliation of consolidated balance sheet to at CLNC share balance sheet See footnotes in the appendix
Slide 31: Reconciliation of GAAP net book value to undepreciated book value
Reconciliation of GAAP net book value to undepreciated book value Appendix – reconciliation of gaap to non-gaap financial information (Cont’d) (In thousands, except per share data; as of June 30, 2020) (Unaudited) See footnotes in the appendix
Slide 32: Reconciliation of GAAP net income to Core Earnings/LNS Earnings
Appendix – Reconciliation of GAAP to Non-gaap financial information (Cont’d) (In thousands, except per share data; as of June 30, 2020) (Unaudited) Reconciliation of GAAP net income (loss) to Core Earnings (Loss)/LNS Earnings (Loss) See footnotes in the appendix Reconciliation of Core Earnings (Loss
Slide 33: Reconciliation of GAAP net income (loss) to NOI/EBITDA
Reconciliation of GAAP net income (loss) to NOI/EBITDA Appendix – Reconciliation of GAAP to Non-gaap financial information (Cont’d) ($ in thousands; as of June 30, 2020) (Unaudited)
Slide 34: Appendix – Footnotes
Appendix – Footnotes Page 4 Represents cash-on-hand and availability under the corporate revolving credit facility as of 8/5/20 Represents CLNC share as of 6/30/20. This includes noncontrolling interests in the Operating Partnership (“OP”) and excludes noncontrolling interests in investment entities
Slide 35: Appendix – Footnotes (cont'd)
Appendix – Footnotes (cont’d) Page 10 (Cont’d) Based on carrying values at CLNC share as of 6/30/20 Other / mixed-use includes: (i) commercial and residential development and predevelopment and (ii) mixed-use assets Page 11 Represents carrying values at CLNC share as of 6/30/20 Represents carrying v
Slide 36: Appendix – Footnotes (cont'd)
Appendix – Footnotes (cont’d) Page 16 Represents carrying values at CLNC share as of 6/30/20 Represents annualized reported NOI for the second quarter 2020 at CLNC share Represents the percent leased as of 6/30/20 and is weighted by carrying value at CLNC share as of 6/30/20 Based on in-place leases
Slide 37: Company information
Company Website: www.clncredit.com Company information Colony Credit Real Estate (NYSE: CLNC) is 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 investment
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