Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q3 2022 Earnings Presentation
24 slides from Brightspire Capital's earnings presentation, Nov 2, 2022
Slide 1: Exhibit 99.3
Exhibit 99.3
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. Forwarcl-looking statements relate to expectations, belie's, projections, future plans and strategies, anticipated events or trends an
Slide 3: Company Highlight
COMPANY HIGHLIGHT BrightSpire Capital, Inc. (“BRSP" or the “Company’”) is a large scale, diversified and internally-managed commercial real estate credit REIT De Bs PRIGHTSPIRE Simple strategy focused on current and predictable earnings and sustainable dividends. 10.3% dividend ous Transparent organ
Slide 4: Key Metrics Snapshot
KEY METRICS SNAPSHOT Diversified $5.3 billion portfolio primarily comprised of senior loans and net lease assets Q3'22 YTD22°) Total At-Share Assets ($B) (Undepreciated) $5.3 Senior mortgage loans. Number of Loans. 3 29 F Portfolio Te Mezranine oars 84% Total Committed Capital ($M) $91 $987 Average
Slide 5: Accomplishments & Priorities
CCOMPLISHMENTS & PRIORITIES BRSP is well positioned to navigate the changing macroeconomic environment Recent Accomplishments Rem Strong Earnings, Benefitting from Higher Rates Q3'22 Adjusted Distributable Earnings of $0.25/share 1g 2022 & 2023 Priorities Actively Manage Portfolio While Maintaining
Slide 6: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO BRSP has grown the portfolio and increased exposure to floating rate senior loans Growth - Shift to Floating Rate Senior Loans Property Type Mix — Predominantly Multifamily” Senior Loans Subordinate Debt Loan Portfolio $3.98 Loan Portfolio = Multifamily $3.28 = Office 100%
Slide 7: Improved Loan Portfolio Risk Profile
IMPROVED LOAN PORTFOLIO RISK PROFIL BRSP has improved the risk profile of the portfolio Loan Size — Diversified Risk Concentration" Transition - Improving Quality” 20321 9322 31% 20% 9, = Abn >$75M LOAN SIZE DEVELOPMENT PIK Average loan size $35M W.A. risk ranking currently stands at 3.1, down from
Slide 8: Lending Market Overview
LENDING MARKET OVERVIEW CRE Debt Market Update BRSP Investment Themes Heightened macroeconomic volatility from rising G) Middle market focus, value-add business plans inflation, interest rates and geopolitics $25 to $50 million average loan size * Continued slowdown in CRE transaction volumes 2 to 3
Slide 9: Middle Market Focus
MIDDLE MARKET FOCUS Lending in the largest and fastest growing markets in the nation to trusted partners Originating in Growth Markets with Repeat Sponsors"! Focusing on Middle Market?) $201+ Total CRE Market Eee 83% Top 25 MsAs oe sateaitas PO% Transaction size ° 85%___ < $100M D 70x MSAs with abov
Slide 10: Robust Investment Platform
ROBUST INVESTMENT PLATFORM Rigorous underwriting and screen process for each investment Comprehensive Investment Capabilities Screening & Evaluation Process (yTD 2022) % of Investments tal Investments Evalua Fe Evaluated Deep relationships with borrowers and intermediaries ~1,925 / ~$97B 100% Total
Slide 11: Originations Focus
ORIGINATIONS FOCUS Quality earnings through deployment into first mortgages with a focus on growth markets Collateral Diversification?) Region Diversification) Y) Powerful Originations Platform + $3.0B of new originations closed since Q3'20 across 98 loans" mtulefomnity ahead =e Office ® Southwest i
Slide 12: Prudent Capital Structure
RUDENT CAPIT TRUCTURE Capital structure provides flexibility and support to drive growth and return on equity Capital Structure" Access to Diverse and Efficient Financing Sources + Robust liquidity: $387M of total liquidity, $222M of cash?! 2.3x Debt-to- equity ratio + Moderate leverage ratios with
Slide 13: Results Summary
3 RESULTS SUMMAR (Sin millions, except where noted and per share data) Q3'22 Q2'22. % Change Investment Type %") GAAP Net Income (Loss) $(20.5) $34.3 na Per Share $(0.16) $0.26 i Distributable Earnings (Loss) $(24.7) $31.4 na. Per Share $(0.19) $0.24 aa Adjusted Distributable Earnings $32.3 $31.4 i
Slide 14: Q3 Portfolio Detail
Q3 PORTFOLIO DETAIL BRSP’s loan portfolio increased 22% year-over-year from $3.2 billion at Q3'21 to $3.9 billion at Q3'22 driven by new senior loan originations Loan Portfolio Real Estate Portfolio NNN Other RE Total Number of Investments m Total Number of Investments 8 2 Undepreciated Carrying Val
Slide 15: Investment Opportunity
INVESTMENT OPPORTUNITY Internalized structure and diversified balance sheet positions the Company to navigate current market environment, while continuing to grow earnings and create shareholder value $Y INTERNALLY MANAGED & DIVERSIFIED BALANCE SHEET + Internalized, transparent . organizational mode
Slide 16: 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
Slide 17: Appendix
APPENDIX B 5 SRicHTsPIRE
Slide 18: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS We present Distributable Eamings, 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 flow
Slide 19: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET September 30, 2022 (Unaudited) December 31, 2021 Assots CCosh and cosh equivalents $ 226456 $ 259722 Restricted cash 104,868 86,041 Loans held fr investment 391436 3485 607 ‘Current expected credit loss reserve (85,589) (36,598) Loans held fo investment, net R25 847 549,00
Slide 20: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS ‘Three Months Ended September 30, 2022 2021 Net interest income Interest income $ een § 47,082 Incerest expense (32.944) (14962), Interest income on mortgage loons held in securitization trusts 9597 10,806 Interest expense on mortgage cbligations issued by securi
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Information
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION Reconciliation of consolidated balance sheet to at BRSP share balance sheet ‘As of September 30, 2022 ‘Consolidated net 'ALBRSP share™ Assets Loans held for investment, net $ 3825847 $ - $ 3825847 Real estate, net 715529 12936 702,593 Deferred
Slide 22: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
ECONCILIATION OF GAAP NON-GAAP FINANCIA INFORMATION (CONT'D) Reconciliation of GAAP net book value to undepreciated book value ‘As of September 30, 2022 (GAAP net book value (excluding noncontrolling interests in investment entities) $ 401900 Accumulated depreciation and amortization” 155,409 Undepr
Slide 23: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT'D) Reconciliation of GAAP net loss to Distributable Loss and Adjusted Distributable Earnings Three Months Ended September 30, 2022 Net loss attributable to BrightSpire Capital, nc. carnmon stockholders $ (20,463) Adjustments: Non-cash eq
Slide 24: BrightSpire Capital
BRIGHT SPIRE CAPITAL