Digitalbridge Group, Inc. · NYSE:DBRG
Digitalbridge — Colony NorthStar — Q1 2017 Earnings Presentation
39 slides from Digitalbridge's earnings presentation, May 9, 2017
Slide 1: Supplemental Financial Report First Quarter 2017
Supplemental Financial Report First Quarter 2017 May 9, 2017 NYSE:CLNS | A Diversified Equity REIT
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Colony NorthStar, Inc. | Supplemental Financial Report 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
Slide 3: Important Note Regarding Non-GAAP Financial Measures
Colony NorthStar, Inc. | Supplemental Financial Report Important Note Regarding Non-GAAP Financial Measures This supplemental package includes certain “non-GAAP” supplemental measures that are not defined by generally accepted accounting principles, or GAAP, including; funds from operations, or FFO;
Slide 4: Note Regarding CLNS Reportable Segments
Colony NorthStar, Inc. | Supplemental Financial Report Note Regarding CLNS Reportable Segments / Consolidated and OP Share of Consolidated Amounts Colony NorthStar holds investment interests in five reportable segments: Healthcare Real Estate; Industrial Real Estate; Hospitality Real Estate; Other E
Slide 5: Table of Contents
Colony NorthStar, Inc. | Supplemental Financial Report 5 Table of Contents I. Overview a. Summary Metrics b. Summary of Segments II. Financial Results a. Consolidated Balance Sheet b. Noncontrolling Interests’ Share Balance Sheet c. Consolidated Segment Operating Results d. Noncontrolling Interests’
Slide 6: Overview - Summary Metrics
Colony NorthStar, Inc. | Supplemental Financial Report 6 ($ and shares in thousands, except per share data; as of or for the three months ended March 31, 2017, unless otherwise noted) Financial Data Net income (loss) attributable to common stockholders(1) (5,216)$ Net income (loss) attributable to c
Slide 7: Overview - Summary of Segments
Colony NorthStar, Inc. | Supplemental Financial Report 7 Ib. Overview - Summary of Segments ($ in thousands; as of or for the three months ended March 31, 2017, unless otherwise noted) Consolidated amount CLNS OP share of consolidated amount Healthcare Real Estate (1) Q1 2017 net operating income(2)
Slide 8: Overview - Summary of Segments (Other Equity and Debt)
Colony NorthStar, Inc. | Supplemental Financial Report 8 ($ in thousands except as noted; as of or for the three months ended March 31, 2017, unless otherwise noted) Consolidated amount CLNS OP share of consolidated amount Other Equity and Debt (1) 1) Net lease real estate equity a) Q1 2017 net oper
Slide 9: Consolidated Balance Sheet
Colony NorthStar, Inc. | Supplemental Financial Report 9 ($ in thousands, except per share data) (Unaudited) As of March 31, 2017 Assets Cash and cash equivalents 633,210 Restricted cash 316,288 Real estate assets, net 13,460,872 Loans receivable, net 4,039,995 Investments in unconsolidated ventures
Slide 10: Noncontrolling Interests' Share Balance Sheet
Colony NorthStar, Inc. | Supplemental Financial Report 10 ($ in thousands, except per share data) (Unaudited) As of March 31, 2017 Assets Cash and cash equivalents 116,731$ Restricted cash 70,050 Real estate assets, net 3,777,337 Loans receivable, net 1,194,502 Investments in unconsolidated ventures
Slide 11: Consolidated Segment Operating Results
Colony NorthStar, Inc. | Supplemental Financial Report 11 ($ in thousands) (Unaudited) Healthcare Industrial Hospitality Other Equity and Debt Investment Management Amounts not allocated to segments Total Revenues Property operating income 137,431$ 56,679$ 175,670$ 57,074$ —$ —$ 426,854$ Interest in
Slide 12: Noncontrolling Interests' Share Segment Operating Results
Colony NorthStar, Inc. | Supplemental Financial Report 12 ($ in thousands) (Unaudited) Healthcare Industrial Hospitality Other Equity and Debt Investment Management Amounts not allocated to segments Total Revenues Property operating income 16,371$ 28,931$ 13,853$ 20,716$ -$ -$ 79,871$ Interest incom
Slide 13: Segment Reconciliation of Net Income to FFO & Core FFO
Colony NorthStar, Inc. | Supplemental Financial Report 13 IIe. Financial Results - Segment Reconciliation of Net Income to FFO & Core FFO Notes: (1) Includes $51.1 million of depreciation, amortization and impairment charges previously adjusted to calculate FFO and Core Earnings, a non-GAAP measure
Slide 14: Capitalization - Overview and Liquidity
Colony NorthStar, Inc. | Supplemental Financial Report 14 ($ in thousands, except per share data; as of March 31, 2017, unless otherwise noted) Consolidated amount CLNS OP share of consolidated amount Debt (UPB) $1,000,000 Revolving credit facility -$ -$ Convertible/exchangeable senior notes 631,860
Slide 15: Capitalization - Investment-Level Debt Overview
Colony NorthStar, Inc. | Supplemental Financial Report 15 ($ in thousands; as of or for the three months ended March 31, 2017, unless otherwise noted) Investment-level debt overview Consolidated CLNS OP share of consolidated amount Type Unpaid principal balance Unpaid principal balance Wtd. avg. yea
Slide 16: Capitalization - Revolving Credit Facility Overview
Colony NorthStar, Inc. | Supplemental Financial Report 16 ($ in thousands, except as noted; as of March 31, 2017) Revolving credit facility Maximum principal amount 1,000,000$ Amount outstanding - Initial maturity January 11, 2021 Fully-extended maturity January 10, 2022 Interest rate LIBOR + 2.25%
Slide 17: Capitalization - Corporate Securities Overview
Colony NorthStar, Inc. | Supplemental Financial Report 17 ($ in thousands, except per share data; as of March 31, 2017, unless otherwise noted) Convertible/exchangeable debt Description Outstanding principal Final due date Interest rate Conversion price (per share of common stock) Conversion ratio C
Slide 18: Debt Maturity and Amortization Schedules
Colony NorthStar, Inc. | Supplemental Financial Report 18 ($ in thousands; as of March 31, 2017) Consolidated debt maturity and amortization schedule Payments due by period(1) Q2-Q4 2017 2018 2019(2) 2020 2021 and after Total $1,000,000 Revolving credit facility -$ -$ -$ -$ -$ -$ Convertible/exchang
Slide 19: Healthcare Real Estate - Summary Metrics and Operating Results
Colony NorthStar, Inc. | Supplemental Financial Report 19 ($ in thousands; as of or for the three months ended March 31, 2017, unless otherwise noted) Net operating income Consolidated amount(1) Net operating income(2): MOB's 13,700$ 9,766$ Senior Housing - Operating 18,333 13,068 Triple-Net Lease:
Slide 20: Healthcare Real Estate - Portfolio Overview
Colony NorthStar, Inc. | Supplemental Financial Report 20 (As of or for the three months ended March 31, 2017, unless otherwise noted) Triple-Net Lease Coverage (1) December 31, 2016 TTM Lease Coverage # of Leases Senior Housing Skilled Nursing Facilities & Hospitals % Total NOI WA Remaining Lease T
Slide 21: Healthcare Real Estate - Portfolio Overview (Geography and Operators)
Colony NorthStar, Inc. | Supplemental Financial Report 21 ($ in thousands; as of or for the three months ended March 31, 2017, unless otherwise noted) Top 10 Geographic Locations by NOI Number of buildings NOI Illinois 39 8,777$ UK 43 8,384 Florida 27 7,222 Indiana 55 7,186 Oregon 31 5,016 Californi
Slide 22: Industrial Real Estate - Summary Metrics and Operating Results
Colony NorthStar, Inc. | Supplemental Financial Report 22 ($ in thousands; as of or for the three months ended March 31, 2017, unless otherwise noted) Net operating income Consolidated amount Net operating income(1) 38,197$ 16,440$ Annualized net operating income 152,789$ 65,760$ Portfolio Overview
Slide 23: Industrial Real Estate - Portfolio Overview
Colony NorthStar, Inc. | Supplemental Financial Report 23 ($ in thousands; as of or for the three months ended March 31, 2017, unless otherwise noted) Top 10 Geographic Locations by NOI Number of buildings Rentable square feet (in thousands) NOI % leased at end of period Atlanta 82 8,105 7,616$ 96.4
Slide 24: Hospitality Real Estate - Summary Metrics and Operating Results
Colony NorthStar, Inc. | Supplemental Financial Report 24 ($ in thousands; as of or for the three months ended March 31, 2017, unless otherwise noted) EBITDA Consolidated amount(1) EBITDA(2): Select Service 34,219$ 32,253$ Extended Stay 24,146 22,759 Full Service 2,816 2,654 Total EBITDA 61,181$ 57,
Slide 25: Hospitality Real Estate - Portfolio Overview
Colony NorthStar, Inc. | Supplemental Financial Report 25 ($ in thousands; as of March 31, 2017, unless otherwise noted) Top 10 Geographic Locations by EBITDA Number of hotels Number of rooms Number of rooms-select service Number of rooms-extended stay Number of rooms-full service EBITDA California
Slide 26: Other Equity and Debt - Net Lease and Other Real Estate Equity
Colony NorthStar, Inc. | Supplemental Financial Report 26 ($ in thousands; as of March 31, 2017, unless otherwise noted) Net Lease Real Estate Equity Consolidated amount CLNS OP share of consolidated amount Number of buildings Rentable square feet (thousands) NOI NOI % leased at end of period Weight
Slide 27: Other Equity and Debt - Real Estate Debt Portfolio Overview
Colony NorthStar, Inc. | Supplemental Financial Report 27 ($ in thousands; as of or for the three months ended March 31, 2017, unless otherwise noted) Portfolio Overview (1) Consolidated amount CLNS OP share of consolidated amount Non-PCI loans Loans receivables held for investment, net 3,277,168$ 2
Slide 28: Real Estate Debt - Loans by Loan Type
Colony NorthStar, Inc. | Supplemental Financial Report 28 ($ in thousands; as of or for the three months ended March 31, 2017, unless otherwise noted) Loans receivable held for investment by loan type (1) Consolidated amount CLNS OP share of consolidated amount Net carrying amount Net carrying amoun
Slide 29: Real Estate Debt - Loans by Collateral Type
Colony NorthStar, Inc. | Supplemental Financial Report 29 ($ in thousands; as of or for the three months ended March 31, 2017, unless otherwise noted) Loans receivable held for investment by collateral type (1) Consolidated amount CLNS OP share of consolidated amount Net carrying amount Net carrying
Slide 30: Other Equity and Debt - Special Situations
Colony NorthStar, Inc. | Supplemental Financial Report 30 ($ in thousands, except as noted; as of March 31, 2017, unless otherwise noted) Consolidated amount CLNS OP share of consolidated amount amount Colony Starwood Homes (NYSE: SFR) CLNS OP interest in SFR as of May 5, 2017 6.3% 6.3% SFR shares b
Slide 31: Other Equity and Debt - Real Estate PE Fund Interests
Colony NorthStar, Inc. | Supplemental Financial Report 31 ($ in thousands; as of or for the three months ended March 31, 2017, unless otherwise noted) Operating Results Q1 2017 income(1) 12,331$ Return of capital 15,785 Total distributions 28,116 Contributions 73 Net 28,043$ Carrying value 400,984$
Slide 32: Other Equity and Debt - CRE Securities
Colony NorthStar, Inc. | Supplemental Financial Report 32 ($ in thousands; as of March 31, 2017) Portfolio Overview Owned Bonds and Equity of Deconsolidated CDO's Principal amount Carrying Value Total owned deconsolidated CDO bonds 367,022$ 87,560$ Total owned deconsolidated CDO equity 16,872 Consol
Slide 33: Investment Management - Summary Metrics and Operating Results
Colony NorthStar, Inc. | Supplemental Financial Report 33 ($ in thousands, except as noted; as of March 31, 2017) Overview Segment Institutional funds 14,787$ Retail companies(1) 24,506 NorthStar Realty Europe (NYSE:NRE)(1) 3,500 Townsend(1) 11,785 Pro rata corporate investments (earnings of investm
Slide 34: Investment Management - Segment Products and AUM
Colony NorthStar, Inc. | Supplemental Financial Report 34 ($ in millions, except as noted; as of March 31, 2017 unless otherwise noted) Segment Products Description AUM CLNS OP Share Institutional Funds ● Credit ($3.8 billion) ● Core plus / value-added ($1.8 billion) ● Opportunistic ($1.9 billion) ●
Slide 35: Investment Management - Retail Companies
Colony NorthStar, Inc. | Supplemental Financial Report 35 ($ in thousands, except as noted; as of March 31, 2017, unless otherwise noted) NorthStar Income NorthStar Healthcare NorthStar Income II NorthStar/RXR NY Metro Real Estate(1) NorthStar Real Estate Capital Income Fund Total Capital Raising St
Slide 36: Appendices
Colony NorthStar, Inc. | Supplemental Financial Report 36 APPENDICES
Slide 37: Appendices - Definitions
Colony NorthStar, Inc. | Supplemental Financial Report 37 IXa. Appendices - Definitions Assets Under Management (“AUM”) Refers to assets which the Company and its affiliates provides investment management services, including assets for which the Company may or may not charge management fees and/or p
Slide 38: Reconciliation of Net Income (Loss) to NOI/EBITDA
Colony NorthStar, Inc. | Supplemental Financial Report 38 ($ in thousands; for the three months ended March 31, 2017) NOI and EBITDA Determined as Follows Healthcare Industrial Hospitality Other Equity and Debt—Net Lease Properties Total revenues 138,813$ 57,042$ 175,713$ 20,001$ Straight-line rent
Slide 39: Reconciliation of Net Income (Loss) to NOI/EBITDA (cont'd)
Colony NorthStar, Inc. | Supplemental Financial Report 39 IXb. Appendices - Reconciliation of Net Income (Loss) to NOI/EBITDA (cont’d) ($ in thousands; for the three months ended March 31, 2017) Reconciliation of Net Income from Continuing Operations of Other Equity and Debt Segment to NOI of Net Le