Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Colony Credit Real Estate — Q4 2018 Earnings Presentation
28 slides from Brightspire Capital's earnings presentation, Feb 28, 2019
Slide 1: Supplemental Financial Report Fourth Quarter 2018
Supplemental Financial Report Fourth Quarter 2018 February 28, 2019
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: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS 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 a
Slide 4: Important Note Regarding Non-GAAP Financial Measures and Definitions (Cont'd)
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS (CONT’D) 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 a
Slide 5: 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 following four reportable segments, which are based on how management reviews and manages its business: Loan Portfolio As
Slide 6: Table of Contents
TABLE OF CONTENTS Page I. Business Developments & Portfolio Highlights 7 II. Loan Portfolio 9 III. CRE Debt Securities 11 IV. Net Lease Real Estate 12 V. Other Assets 13—Operating Real Estate—Private Equity Interests VI. Capitalization 15 VII. Appendix 17
Slide 7: Business Developments & Highlights
I. BUSINESS DEVELOPMENTS & HIGHLIGHTS ï,§ Fourth quarter 2018 GAAP net loss attributable to common stockholders of $(127.1) million, or $(1.00) per diluted share, and core earnings of $(37.3) million, or $(0.29) per diluted share. Excluding: (i) private equity secondaries mark-to-market adjustments
Slide 8: Loan Portfolio Highlights
II. LOAN PORTFOLIO HIGHLIGHTS (As of December 31, 2018; at CLNC share) Overview Investment type(5) Preferred equity (1) 11% $2.8 billion Total loan portfolio Mezzanine loans Senior 16% loans 73% 76 Total number of investments Property type(5) $36 million Average loan size Industrial Other(6) 6% 8% H
Slide 9: Loan Portfolio Overview
II. LOAN PORTFOLIO OVERVIEW ($ in thousands; as of December 31, 2018; at CLNC share) Number of Carrying Net carrying W.A. unlevered W.A. remaining W.A. extended investments value(1) value(2) all-in yield(3) term (years)(4) term (years)(5) Floating rate Senior mortgage loans 43 $ 1,724,644 $ 764,532
Slide 10: CRE Debt Securities
III. CRE DEBT SECURITIES ($ in thousands; as of December 31, 2018; at CLNC share) Number of Principal Carrying Net carrying W.A. unlevered W.A. term Rating (1) (1) (2) (3) (4) investments amount value value all-in yield in years Investment grade rated BBB- 39 $ 253,666 $ 203,212 $ 55,251 6.3% 7.6 No
Slide 11: Net Lease Real Estate
IV. NET LEASE REAL ESTATE ($ and square feet in thousands; as of December 31, 2018, unless otherwise stated; at CLNC share) Number of Rentable Undepreciated Undepreciated Annualized W.A. % leased W.A. remaining (1) (2) Q4 NOI(3) (4) (5) (6) buildings square feet carrying value net carrying value Q4
Slide 12: Operating Real Estate
V. OPERATING REAL ESTATE ($ and square feet in thousands; as of December 31, 2018, unless otherwise stated; at CLNC share) Number of Rentable Undepreciated Undepreciated Q4 NOI / Annualized W.A. % leased W.A. remaining buildings square feet carrying value(1) net carrying value(2) EBITDA(3) Q4 NOI /
Slide 13: Private Equity Interests
V. PRIVATE EQUITY INTERESTS (As of December 31, 2018, unless otherwise stated; at CLNC share) Overview Investment type(4) Industrial Retail 2% Residential / 10% (1) Condo $161 million Carrying value 21% Lodging 11% % of total investment portfolio(2) Other(5) Office 3% 11% 16% Land 13% Multifamily 16
Slide 14: Capitalization Highlights
VI. CAPITALIZATION HIGHLIGHTS (As of December 31, 2018, unless otherwise stated; at CLNC share) Overview Capital structure(4) CMBS credit $5.3 billion Total capitalization facilities Securitization bonds (excluding cash) 4% payable Corporate revolving 1% credit facility 5% $2.5 billion Total outstan
Slide 15: Capitalization Overview
VI. CAPITALIZATION OVERVIEW ($ in thousands; as of December 31, 2018; at CLNC share) Maximum Recourse vs. W.A. extended W.A. contractual W.A. all-in Outstanding availability Non-recourse(1) maturity(2) interest rate(2) COF(2)(3) debt (UPB)(4) Corporate debt Corporate revolving credit facility* $525,
Slide 16: Capitalization Overview
VI. CAPITALIZATION OVERVIEW ($ in thousands; as of December 31, 2018; at CLNC share) Maximum Recourse vs. W.A. extended W.A. contractual W.A. all-in Outstanding availability Non-recourse(1) maturity(2) interest rate(2) COF(2)(3) debt (UPB)(4) Corporate debt Corporate revolving credit facility* $525,
Slide 17: Appendix
ColonyCredit REAL ESTATE Vil. APPENDIX
Slide 18: 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 19: Appendix – Consolidated Balance Sheet
VII. APPENDIX – CONSOLIDATED BALANCE SHEET (In thousands, except share and per share data; as of December 31, 2018 unless otherwise stated) December 31, 2018 December 31, 2017 Assets Cash and cash equivalents 77,317 25,204 Restricted cash 110,146 41,901 Loans and preferred equity held for investment
Slide 20: Appendix – Consolidated Statements of Operations
VII. APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data; as of December 31, 2018 unless otherwise stated) Three Months Ended December 31, Year Ended December 31, 2018 2017 2018 2017 Net interest income Interest income $ 38,580 $ 31,772 $ 151,653 $ 140,214 Interest
Slide 21: Appendix – Outstanding Common Shares and OP Units
VII. APPENDIX – OUTSTANDING COMMON SHARES AND OP UNITS As of As of December 31, 2018 September 30, 2018 Class A common stock 83,410,376 83,487,352 Class B-3 common stock 44,399,444 44,399,444 OP units 3,075,623 3,075,623 Total common stock and OP units outstanding 130,885,443 130,962,419
Slide 22: 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 December 31, 2018) (Unaudited) Reconciliation of GAAP total assets to CLNC share of total assets As of December 31, 2018 Consolidated NCI(1) At CLNC share(2) Cash and cas
Slide 23: Reconciliation of GAAP Net Loss to Core Earnings (Loss)
VII. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) ($ and shares in thousands, except per share data; as of December 31, 2018 unless otherwise stated) (Unaudited) Reconciliation of GAAP net loss to core earnings (loss) Three Months Ended December 31, 2018 Year Ended De
Slide 24: Reconciliation of GAAP Net Income/(Loss) to NOI/EBITDA
VII. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) ($ in thousands; as of December 31, 2018) (Unaudited) Reconciliation of GAAP net income/(loss) to NOI/EBITDA Three Months Ended December 31, 2018 Net lease Operating real estate real estate Net income (loss) attributab
Slide 25: Appendix – Footnotes
VII. APPENDIX – FOOTNOTES Page 7 1. 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 fourth quarter 2018, the weighted average number of
Slide 26: Appendix – Footnotes (Cont'd)
VII. APPENDIX – FOOTNOTES (CONT’D) Page 11 1. Represents principal amounts and carrying values at CLNC share as of December 31, 2018; for securitization assets, at CLNC share values are presented net of the impact from consolidation 2. Represents carrying values net of any in-place investment-level
Slide 27: Appendix – Footnotes (Cont'd)
VII. APPENDIX – FOOTNOTES (CONT’D) Page 16 1. Subject to customary non-recourse carve-outs 2. W.A. calculation based on outstanding debt (UPB) at CLNC share as of December 31, 2018. W.A. extended maturity excludes CMBS facilities 3. Assumes the applicable floating benchmark rate as of December 31, 2
Slide 28: Company Information
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 mortgage loans, mezzanine loans, prefe
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