Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q1 2023 Earnings Presentation
33 slides from Brightspire Capital's earnings presentation, May 3, 2023
Slide 1: Exhibit 99.2
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
COMPANY HIGHLIGHTS BrightSpire Capital, Inc. (“BRSP” or the “Company”) is a large publicly-traded, diversified and internally- managed commercial real estate credit REIT $4.8B $3.4B Total At-Share Assets Total Loan (Undepreciated) Portfolio Diversified Portfolio +100 total loans, $34M average size +
Slide 4: Summary Results & Subsequent Events Update
SUMMARY RESULTS & SUBSEQUENT EVENTS UPDATE * GAAP Net Loss of ($4.1) million, or ($0.03) per share . Distributable Loss of ($11.5) million, or ($0.09) per share . FINANCIAL RESU! Adjusted Distributable Earnings of $34.5 million, or $0.27 per share GAAP net book value of $10.41 per share and undeprec
Slide 5: Financial Overview
FINANCIAL OVERVIEW Key ial Metrics Capital Structure GAAP Net Loss ($M) ($4.1) Per Share ($0.03) ™ Stockholders’ equity (undepreciated) Distributable Loss ($M) ($11.5) ™ Master repurchase facilities (limited recourse) Per Share ($0.09) dete capitalization '™ Securitization bonds payable (non-recours
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net carrying value as of March 31, 2023 Investment Carrying Net carrying (At BRSP share) count value value Per share Loan portfolio Senior mortgage loans 93 $ 3,259 $ 802 $ 67 Mezzanine loans é 101 101 0.78 ™Net lease & other real e
Slide 7: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW Invest Type Property Type 100 Total number of investments $3.4B Total loan portfolio $34M Average investment size 1.0 yrs. W.A. remaining term® 3.0 yrs. W.A. extended remaining term" 8.8% W.A. unlevered all-in yield 3.2 W.A. risk ranking - Senior mortgage loans = Multifamily
Slide 8: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Collateral Type Region Exposure as a % of Carrying Value (At BRSP share) investments oe . a Wert | Soumwert | Homiecst | Soumecs’ Multifamily 56 $ 1,662,136 49% 18% 27% 1% 3% Office 33 1,094,832 32% 14% 6% 9% 3% Hotel 5 422,722 13% 12% -- 1% -- Mixed-use 3 151,699 4% a
Slide 9: Loan Portfolio Summary
LOAN PORTFOLIO SUMMARY Number of W.A. extended (At BRSP share) investments carrying value term (years) Floating rate Senior mortgage loans 93 $ 3,258,992 96% $ 802,416 8.7% 3.0 Mezzanine loans 1 12,450 0% 12,450 16.8% 07 Total / W.A. floating rate 94 3,271,442 97% 814,866 8.7% 3.0 Fixed rate Mezzani
Slide 10: Loan Portfolio Maturities
LOAN PORTFOLIO MATURITIES Weighted average fully extended remaining term of approximately 3.0 years across the loan portfolio Fully Extended Loan Maturities" $1,500 ™ Fully extended loan maturities (carrying value) = Unfunded commitments $1,250 $1,000 2 i= ° $750 $in $500 $250 $0 2023 2024 2025 2026
Slide 11: Loan Portfolio Risk Rankings & CECL Reserve
LOAN PORTFOLIO RISK RANKINGS & CECL RESERVE Risk Ranking Overview ECL Reserve Overview mQ23 79% ® Specific CECL Reserve ™ General CECL Reserve Total Reserve $146M Total Reserve $107M $112M 100% Risk Rank 5 100% Risk Rank 5 $57M Loan Count ain Cour & 13% % Rank a 1 2 3 4 5 Q4'22 Q123 =Q422 =Q123 Mult
Slide 12: Net Lease Real Estate & Other Real Estate Summary
NET LEASE REAL ESTATE & OTHER REAL ESTATE SUMMARY W.A. % leased | W.A. remaining lease term (years) at end of rm) period! 100% 69 100% 164 100% 5.0 100% 10.4 85% 3.6 85% 3.6 Number of BRSP pentabie Carrying %ofcanying Net carrying Q123 NOI investments | ownership % ian eaena value value value (at BR
Slide 13: Investment Detail
INVESTMENT DETAIL Loan Portfolio Origination Carrying Coupon Cash Unlevered Extended QVZBRisk 622 Risk {At BRSP shore) __ Investment Type date City, State, value type coupon ali-inyield™ maturity date” uv ranking ranking [Multifamily Loan 1" Senior Jun-19 Santa Ciara, CA $ 57 Floating ery 95% Jun-24
Slide 14: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Loan Portfolio (Cont'd) Origination Carrying Coupon Cash Unlevered Extended QT23 Risk — Q422 Risk (At 8RSP shore) Investment Type date City, State value type coupon all-inyield" maturity dote™ LT ranking ranking Loan 39 Senior Nov-21__Austin, TX 23_ Floating SH3.4% 85% Nov
Slide 15: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Loan Portfolio (Cont'd) Origination Carrying Coupon Cash Unlevered Extended QIZSRisk 622 Risk {At BRSP shore) __ Investment Type date City, State, value type coupon all-inyield™ __maturity date" uv ranking ranking Loan 77 Senior Feb-19 Charlotte, NC $ 2% Floating L33% 83%
Slide 16: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Net Lease Real Estate & Other Real Estate Origination Undepreciated Carrying ar23 #of #of —-Rentablesquore = WA. W.A. lease (At BRSP share) date Collateraltype _City, State carrying value value NOL properties buildings feet ("RSF") %leased™ term (yrs) Net lease real estate
Slide 17: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Diversified capital structure of primarily non-recourse debt and a 2.0x debt-to-equity ratio. Embedded capacity under existing financing facilities including an undrawn corporate revolver and $968M of repurchase facilities availability Key Financial Metrics Capital Structur
Slide 18: Capitalization Summary
CAPITALIZATION SUMMARY Recourse vs. W.A. extend: Outstanding (At BRSP share) non-recourse"™ maturity” debt (UPB) Corporate debt Corporate revolving credit facility Recourse Jan-27 $+225% 7.17% $ - iT =| it Master repurchase facilities Limited recourse Jan-27 L/S + 1.97% 6.78% 1,292,176 Securitizatio
Slide 19: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY 2) 100% of senior mortgage loan value is floating rate 2) 68% of floating rate senior mortgage loan value is indexed to Term SOFR and 32% to one-month USD LIBOR Annual Net Interest Income Sensitivi i mark Rates — Total Portfolio $5.0 $4.0 $0.03 r per share 0.0 ($0.03) ($0.0
Slide 20: Appendix
APPENDIX BS BRIGHTSPIRE
Slide 21: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS We present Distributable Earnings, 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 flo
Slide 22: Important Note Regarding Non-GAAP Financial Measures and Definitions (Cont'd)
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS (CONT'D) NOI should not be considered as an alternative to net income (loss), determined in accordance with GAAP, as an indicator of operating performance. In addition, our methodology for calculating NOI involves subjective judgme
Slide 23: Notes Regarding Reportable Segments
NOTES REGARDING REPORTABLE SEGMENTS BrightSpire Capital, Inc. ("BRSP", “BrightSpire Capital", the "Company” or “We") currently holds investment interests through the reportable segments below, which are based on how management reviews and manages its business. Senior and Mezzanine Loans and Preferre
Slide 24: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET March 31, 2023 (Unaudited) December 31, 2022 Assets Cash and cash equivalents $ 313,520 $ 306,320 Restricted cash 80,023 92,508 Loans and preferred equity held for investment 3,494,895 3,574,989 Current expected credit loss reserve (145,836) (106,247) Loans and preferred e
Slide 25: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS Net interest income Interest income Interest expense Interest income on mortgage loans held in securitization trusts Interest expense on mortgage obligations issued by securitization trusts Net interest income Property and other income Property operating income O
Slide 26: Consolidated Statement of Operations by Segment
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT ‘Three Months Ended March 31, 2023 Loans and CRE debt Net lease real preferred equity securities estate Corporate Total Net interest income Interest income. $ 75,607 $ - $ 6 $ 318 75,616 Interest expense (42,364) < 6) (292) (42,662) Net interest income
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Information
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION Reconciliation of consolidated balance sheet to at share balance sheet As of March 31, 2023 Consolidated Nel) At BRSP share”? Assets Loans and preferred equity held for investment, net $ 3,349,059 $ SES 3,349,059 Real estate, net 714,725 12,82
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION (CONT'D) FINANCIAL Reconciliation of GAAP net book value to undepreciated book value GAAP net book value (excluding noncontrolling interests in investment entities) Accumulated depreciation and amortization® Undepreciated book value GAAP net book value
Slide 29: 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 March 31, 2023 Net loss attributable to BrightSpire Capital, Ine. common stockholders $ (4,127) Adjustments: Non-cash equity
Slide 30: 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 NOI Three Months Ended March 31, 2023 Net loss attributable to BrightSpire Capital, Inc. common stockholders $ (4,127) Adjustments: Net loss attributable to non-net leased and other real estate portf
Slide 31: Footnotes
FOOTNOTES Includes availability under the corporate revolving credit facility and unrestricted cash as of April 28, 2023 As of April 28, 2023, Debt-to-equity ratio based on BRSP's share of total outstanding unpaid principal balance ("UPB") divided by total stockholders’ equity excluding the impact o
Slide 32: 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 p
Slide 33: BrightSpire Capital
BRIGHT SPIRE CAPITAL