Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q4 2020 Earnings Presentation
42 slides from Brightspire Capital's earnings presentation, Feb 24, 2021
Slide 1: Supplemental Financial Report Fourth Quarter 2020
S U P P L E M E N TA L F I N A N C I A L R E P O R T FOURTH QUARTER 2020 FEBRUARY 24, 2021 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
Colony REAL ESTATE COMPANY HIGHLIGHTS
Slide 4: Company Highlights
COMPANY HIGHLIGHTS Leading commercial real estate credit REIT with conservative balance sheet poised for growth Stable & Growing Portfolio Robust Liquidity of Primarily Senior Loans & Net Lease Assets $4.1B $690M $689M 2.7x Total At-Share Assets New Senior Loan Originations Total Liquidity(2) Increa
Slide 5: Fourth Quarter & Subsequent Events Update
FOURTH QUARTER & SUBSEQUENT EVENTS UPDATE • Net loss of $(52.5) million or $(0.41) per share and Total Core/LNS Distributable Loss of $(25.7) million or $(0.20) per share Financial • Total Adjusted Core/LNS Distributable Earnings of $26.1 million or $0.20 per share, excluding gains/losses and FV adj
Slide 6: Company Snapshot
COMPANY SNAPSHOT Investment Type Portfolio Overview Based on GAAP net book value as of December 31, 2020 LNS Portfolio Investment Carrying Net carrying <1% (At CLNC share) Count value value (6 ) Per Share Cash & net Senior mortgage Core Portfolio assets(4) loans 30% 34% Senior mortgage loans 34 $ 2,
Slide 7: Financial Overview
FINANCIAL OVERVIEW Key Financial Metrics ($mm / Per Share) GAAP Core / LNS Adjusted Core / LNS GAAP Undepreciated (At CLNC share) Net Income / (Loss) Distributable Loss Distributable Earnings* Net Book Value Book Value Core Portfolio ($42.7) / ($0.33) ($24.7) / ($0.19) $23.3 / $0.18 $1,709 / $12.98
Slide 8: Core Portfolio
Colony REAL ESTATE CORE PORTFOLIO
Slide 9: Core Portfolio – Overview
CORE PORTFOLIO – OVERVIEW Portfolio Summary Investment Type(1) Property Type(1) Based on GAAP gross carrying value as of December 31, 2020 Based on GAAP gross carrying value as of December 31, 2020 Total number of 63 investments CRE debt Other / Preferred equity(4) Mezzanine securities (3) mixed-use
Slide 10: Core Portfolio – Loans & Preferred Equity Portfolio Overview
CORE PORTFOLIO – LOANS & PREFERRED EQUIT Y PORTFOLIO OVERVIEW Overview West 48 Total number of investments 59% Northeast 23% Midwest 1% Southwest $2.3 billion Total loans & preferred equity 13% Southeast Europe 2% 2% $49 million Average investment size Investment Type(4) 99% % Senior loans floating
Slide 11: Core Portfolio – Loans & Preferred Equity Portfolio Overview (Cont'd)
CORE PORTFOLIO – LOANS & PREFERRED EQUIT Y PORTFOLIO OVERVIEW (CONT’D) Number of Carrying Net carrying W.A. unlevered W.A. extended (1) (2) (4) (At CLNC share) investments value value all-in yield term (years) Floating rate Senior mortgage loans 33 $ 2,001,149 $ 550,127 5.6% 3.4 Mezzanine loans 1 11
Slide 12: Core Portfolio – Net Lease Real Estate
CORE PORTFOLIO – NET LEASE REAL ESTATE Rentable W.A. % leased W.A. remaining Number of Number of Carrying Net carrying (2) Annualized square feet (1) Q4'20 NOI (3) at end of lease term investments properties value value Q4'20 NOI (4) (5) (At CLNC share) ("RSF") period (years) Office 3 3 1,812 RSF $
Slide 13: Core Portfolio – CRE Debt Securities
CORE PORTFOLIO – CRE DEBT SECURITIES Overview Ratings Category(4) BBB- (1) 7% 10 Total number of investments BB | B 8% $196 million Principal value $70 million Carrying value "B-Piece" Investments (2) 85% $70 million Net carrying value Vintage(4) (3) 60% Investment grade 56% 5.0 years W.A. remaining
Slide 14: Core Portfolio – Investment Detail
CORE PORTFOLIO – INVESTMENT DETAIL Core Portfolio – loans & preferred equity portfolio Origination Carrying Coupon Cash Unlevered Extended Risk (1) (2) (3 ) (At CLNC share) date Collateral type City, State value type coupon all-in yield maturity date LTV ranking Senior loans Loan 1 Jun-19 Multifamil
Slide 15: Core Portfolio – Investment Detail (Cont'd)
CORE PORTFOLIO – INVESTMENT DETAIL (CONT’D) Core Portfolio – loans & preferred equity portfolio (cont’d) Origination Carrying Coupon Cash Unlevered Extended Risk (1) (2) (3 ) (At CLNC share) date Collateral type City, State value type coupon all-in yield maturity date LTV ranking Mezzanine loans Loa
Slide 16: Core Portfolio – Investment Detail (Cont'd)
CORE PORTFOLIO – INVESTMENT DETAIL (CONT’D) Core Portfolio – CRE debt securities Principal Carrying W.A. remaining (1 ) (At CLNC share) value value term (yrs) CRE debt securities CRE debt securities (10 investments) $ 196 $ 70 5.0 Total / W.A. CRE debt securities $ 196 $ 70 5.0 Core Portfolio – summ
Slide 17: Legacy, Non-Strategic Portfolio
LEGACY, NON-STRATEGIC PORTFOLIO 17
Slide 18: Legacy, Non-Strategic – Portfolio Overview
LEGACY, NON-STRATEGIC – PORTFOLIO OVERVIEW Portfolio Summary Investment Type(1) Property Type(1) Based on GAAP gross carrying value as of December 31, 2020 Based on GAAP gross carrying value as of December 31, 2020 Total number of 14 investments PE interests Preferred equity(3) Other(4) Mezzanine lo
Slide 19: Capitalization
Colony REAL ESTATE CAPITALIZATION
Slide 20: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Since the first quarter, reduced recourse debt exposure by approximately $584 million to $134 million and reduced net debt-to-equity ratio from 1.4x to 1.0x Overview Capital Structure $3.9 billion Total capitalization (excluding cash) Other debt (non-recourse) Master repurc
Slide 21: Capitalization Overview
CAPITALIZATION OVERVIEW Recourse vs. W.A. extended W.A. contractual W.A. all-in Outstanding (1) (2) (2) (2)(3) (At CLNC share) Non-recourse maturity interest rate COF debt (UPB) Corporate debt Corporate revolving credit facility Recourse Feb-23 L + 2.25% 2.39% $ - Investment-level debt Securitizatio
Slide 22: Benefiting from Low Rates
BENEFITING FROM LOW RATES CLNC net interest income is well-protected and benefits from current low rates due to in-place LIBOR floors 99% of the total senior mortgage loan portfolio are floating rate (indexed to one-month USD LIBOR) 100% of the Core Portfolio floating rate senior mortgage loans
Slide 23: Appendix
Colony REAL ESTATE APPENDIX
Slide 24: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS We present Distributable Earnings/Legacy, Non-Strategic Distributable Earnings, which is a non-GAAP supplemental financial measure of our performance. Our Distributable Earnings are generated by the Core Portfolio and Legacy, Non-S
Slide 25: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS 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 i
Slide 26: Notes Regarding Reportable Segments
NOTES REGARDING REPORTABLE SEGMENTS 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
Slide 27: Appendix – Consolidated Balance Sheet
APPENDIX – CONSOLIDATED BALANCE SHEET December 31, 2020 December 31, 2019 Assets Cash and cash equivalents $ 474,817 $ 69,619 Restricted cash 65,213 126,065 Loans and preferred equity held for investment 2,220,688 2,848,956 Allowance for loan losses (37,191) (272,624) Loans and preferred equity held
Slide 28: Appendix – Consolidated Statements of Operations
APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 Net interest income Interest income $ 34,848 $ 47,696 $ 156,851 $ 175,169 Interest expense (12,128) (24,225) (63,043) (87,730) Interest income on mortgage loans held in securi
Slide 29: Appendix – Consolidated Statements of Operations by Segment
APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT Three Months Ended December 31, 2020 Core Portfolio Legacy, Non- Loans and CRE debt Net lease real Total Core Strategic preferred equity securities estate Corporate Portfolio Portfolio Total Net interest income Interest income $ 34,794 $ 56
Slide 30: Appendix – Consolidated Statements of Operations by Segment (Cont'd)
APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT (CONT’D) Year Ended December 31, 2020 Core Portfolio Legacy, Non- Loans and CRE debt Net lease real Total Core Strategic preferred equity securities estate Corporate Portfolio Portfolio Total Net interest income Interest income $ 151,428 $
Slide 31: Appendix – Outstanding Common Shares and OP Units
APPENDIX – OUTSTANDING COMMON SHARES AND OP UNITS As of As of December 31, 2020 September 30, 2020 Class A common stock 128,564,930 128,582,965 OP units 3,075,623 3,075,623 Total common stock and OP units outstanding 131,640,553 131,658,588 31 31
Slide 32: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION Reconciliation of consolidated balance sheet to at CLNC share balance sheet As of December 31, 2020 Total Core Portfolio Legacy, Non-Strategic Portfolio Consolidated NCI(1) At CLNC share(2) Consolidated NCI(1) At CLNC share(2) Conso
Slide 33: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) Reconciliation of GAAP net book value to undepreciated book value As of December 31, 2020 Legacy, Non-Strategic Core Portfolio Portfolio Total GAAP net book value (excluding noncontrolling interests in investment entities)
Slide 34: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) Reconciliation of GAAP net loss to Distributable Loss / LNS Distributable Loss Three Months Ended December 31, 2020 Legacy, Non-Strategic Core Portfolio Portfolio Total Net loss attributable to Colony Credit Real Estate, In
Slide 35: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) Reconciliation of GAAP net loss to Distributable Loss / LNS Distributable Loss Year Ended December 31, 2020 Legacy, Non-Strategic Core Portfolio Portfolio Total Net loss attributable to Colony Credit Real Estate, Inc. commo
Slide 36: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) Reconciliation of Distributable Loss / LNS Distributable Loss to Adjusted Distributable Earnings / LNS Distributable Earnings Year Ended December 31, 2020 Legacy, Non-Strategic Core Portfolio Portfolio Total Distributable L
Slide 37: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) Reconciliation of GAAP net income (loss) to NOI Three Months Ended December 31, 2020 Core Portfolio Legacy, Non-Strategic Portfolio Net lease real Other Total Core Net lease real Other Total LNS estate real estate Portfolio
Slide 38: Appendix – Footnotes
APPENDIX – FOOTNOTES Page 4 1. Amounts presented reflect total committed capital and include both closed and in-execution deals as of February 22, 2021 2. Represents cash-on-hand and availability under the corporate revolving credit facility as of February 22, 2021 3. Represents cash-on-hand as of F
Slide 39: Appendix – Footnotes (Cont'd)
APPENDIX – FOOTNOTES (CONT’D) Page 12 1. Represents carrying values net of any in-place investment-level financing at CLNC share as of 12/31/20 2. Represents reported NOI for the fourth quarter 2020 at CLNC share 3. Represents annualized reported NOI for the fourth quarter 2020 at CLNC share 4. Repr
Slide 40: Appendix – Footnotes (Cont'd)
APPENDIX – FOOTNOTES (CONT’D) Page 21 1. Subject to customary non-recourse carve-outs 2. W.A. calculation based on outstanding debt (UPB) at CLNC share as of 12/31/20. W.A. extended maturity excludes CMBS facilities 3. Assumes the applicable floating benchmark rate as of 12/31/20 for W.A. calculatio
Slide 41: Company Information
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 investments and net leased properties predomi
Slide 42: Colony Credit Real Estate
ColonyCredit REAL ESTATE