Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Colony Credit Real Estate — Q2 2018 Earnings Presentation
28 slides from Brightspire Capital's earnings presentation, Aug 7, 2018
Slide 1: Supplemental Financial Report Second Quarter 2018
Supplemental Financial Report Second Quarter 2018 August 7, 2018 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: Core Earnings non-GAAP measure notice
We present Core Earnings, which is a non-GAAP supplemental financial measure of our performance. We believe that Core Earnings provides meaningful information to consider in addition to our net income and cash flow from operating activities determined in accordance with U.S. GAAP. This supplemental
Slide 4: Pro rata financial information notice
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: Company reportable segments
Colony Credit Real Estate, Inc. (“CLNC”, “Colony Credit Real Estate” or the “Company”) currently holds investment interests through the following four reportable segments, which are based on how management reviews and manages its business: Loan Portfolio As of June 30, 2018, the Company’s Loan Portf
Slide 6: Table of contents
Table of contents Business & Portfolio Highlights Loan Portfolio CRE Debt Securities Net Lease Real Estate Other Assets Capitalization Appendix Page 7 9 11 12 13 15 18
Slide 7: I. Business Highlights
I. Business Highlights Business & Financial Completed name change to Colony Credit Real Estate, Inc. effective June 25, 2018 Added to the U.S. Small-cap Russell 2000 Index effective June 25, 2018 Second quarter 2018 GAAP net income attributable to common stockholders of $16.0 million, or $0.12 per d
Slide 8: I. Portfolio highlights
I. Portfolio highlights Geography(7) Overview Property type(7) ($ in thousands, unless otherwise stated; as of June 30, 2018; at CLNC share) See footnotes in the appendix $4.6 Billion Total Investment-Level Assets(2) $3.1 Billion Total Book Equity Value(1) $4.9 Billion Total At-Share Assets(1) Non-c
Slide 9: II. Loan portfolio Highlights
II. Loan portfolio Highlights Fixed vs. Floating(7) Overview Investment type(7) (As of June 30, 2018; at CLNC share) See footnotes in the appendix $2.6 billion Total loan portfolio(1)(2) 80 Total number of investments $32 million Average loan size 2.3 years W.A. remaining term(3) 3.7 years W.A. exte
Slide 10: II. Loan portfolio overview
II. Loan portfolio overview Property type(7) Geography(7) ($ in thousands; as of June 30, 2018; at CLNC share) See footnotes in the appendix
Slide 11: III. CRE Debt securities
III. CRE Debt securities ($ in thousands; as of June 30, 2018; at CLNC share) % of portfolio CRE debt securities by vintage(4) See footnotes in the appendix Vintage year
Slide 12: IV. Net lease real estate
IV. Net lease real estate Property type(6) ($ and square feet in thousands; as of June 30, 2018, unless otherwise stated; at CLNC share) Geography(6) W.A. remaining lease term(5)(6) See footnotes in the appendix
Slide 13: V. Other real estate Equity
V. Other real estate Equity Property type(5) ($ and square feet in thousands; as of June 30, 2018, unless otherwise stated; at CLNC share) See footnotes in the appendix Geography(5) W.A. remaining lease term(4)(5)
Slide 14: V. Private equity interests
V. Private equity interests Investment type(5) Geography(5) (As of June 30, 2018, unless otherwise stated; at CLNC share) See footnotes in the appendix Overview $241 million Carrying value(1) 5% % of total investment portfolio(2) 107 Total number of funds 86% Carrying value as a % of underlying Gene
Slide 15: VI. Capitalization Highlights
VI. Capitalization Highlights (As of June 30, 2018, unless otherwise stated; at CLNC share) See footnotes in the appendix Overview $4.8 billion Total capitalization (excluding cash) $1.7 billion Total outstanding debt(1) $380 million Corporate revolving credit facility availability As of August 3, 2
Slide 16: VI. Capitalization overview
VI. Capitalization overview ($ in thousands; as of June 30, 2018, unless otherwise stated) See footnotes in the appendix
Slide 17: VI. Interest Rate sensitivity
VI. Interest Rate sensitivity (As of June 30, 2018) CLNC’s loan portfolio benefits from a rising rate environment Approximately 97% of senior mortgage loans are floating rate Approximately 73% of the total loan portfolio is floating rate A 100 basis point increase in one-month USD LIBOR would increa
Slide 18: VII. Appendix
ColonyCredit REAL ESTATE Vil. APPENDIX
Slide 19: VII. Important note regarding financial statements
VII. Important note regarding financial statements Colony Credit Real Estate was formed on January 31, 2018, through the combination of a select commercial real estate debt and credit real estate portfolio of Colony Capital, Inc. (“Colony Capital Investment Entities”) with substantially all of the a
Slide 20: VII. Appendix – Consolidated Balance sheet
VII. Appendix – Consolidated Balance sheet (In thousands, except share and per share data; as of June 30, 2018)
Slide 21: VII. Appendix – Consolidated Statements of operations
VII. Appendix – Consolidated Statements of operations (In thousands, except per share data; as of June 30, 2018) (Unaudited)
Slide 22: VII. Appendix – Outstanding common shares and Op units
VII. Appendix – Outstanding common shares and Op units
Slide 23: VII. Appendix – reconciliation of GAAP to non-GAAP financial information
VII. Appendix – reconciliation of gaap to non-gaap financial information ($ and shares in thousands, except per share data; as of June 30, 2018) (Unaudited) See footnotes in the appendix Reconciliation of GAAP total assets to CLNC share of total assets Reconciliation of GAAP book value to undeprecia
Slide 24: VII. Appendix – Reconciliation of GAAP to Non-GAAP (Cont’d)
VII. Appendix – Reconciliation of GAAP to Non-gaap financial information (Cont’d) ($ and shares in thousands, except per share data; as of June 30, 2018) (Unaudited) See footnotes in the appendix Reconciliation of GAAP net income to core earnings Reconciliation of GAAP net income to NOI/EBITDA
Slide 25: VII. Appendix – Footnotes
VII. Appendix – Footnotes Page 7 The Company calculates Core Earnings per share, a non-GAAP financial measure, based on a weighted average number of common shares and OP units (held by members other than the Company or its subsidiaries). For the second quarter 2018, the weighted average number of co
Slide 26: VII. Appendix – Footnotes (cont’d)
VII. Appendix – Footnotes (cont’d) Page 11 Represents principal amounts and carrying values at CLNC share as of June 30, 2018; at CLNC share values for securitization assets are presented net of the impact from consolidation In addition to the stated cash coupon rate, unlevered all-in yield includes
Slide 27: VII. Appendix – Footnotes (cont’d)
VII. Appendix – Footnotes (cont’d) Page 16 Subject to customary non-recourse carve-outs W.A. calculation based on outstanding debt at CLNC share as of June 30, 2018 Represents unpaid principal balance at CLNC share as of June 30, 2018 Page 17 Represents the impact on net interest income assuming cha
Slide 28: VII. Company information
Company Website: www.clncredit.com VII. 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 mor
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