Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q1 2020 Earnings Presentation
44 slides from Brightspire Capital's earnings presentation, May 7, 2020
Slide 1: Supplemental Financial Report First Quarter 2020
Supplemental Financial Report First Quarter 2020 May 7, 2020 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: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS We present Core Earnings/Legacy, Non-Strategic (“LNS”) Earnings, which are non-GAAP supplemental financial measures of our performance. Our Core Earnings are generated by the Core Portfolio and Legacy, Non-Strategic Earnings are ge
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 reportable segments below, which are based on how management reviews and manages its business. Each segment also includes
Slide 6: Table of Contents
TABLE OF CONTENTS Page I. Business Developments & Portfolio Highlights 7 II. Core Portfolio 11 Portfolio Overview 12 Loan & Preferred Equity Portfolio 13 CRE Debt Securities 15 Net Lease Real Estate 16 Investment Detail 17 III. Legacy, Non-Strategic Portfolio 19 IV. Capitalization 28 V. Ap
Slide 7: I. Business Developments & Portfolio Highlights
I. BUSINESS DEVELOPMENTS & PORTFOLIO HIGHLIGHTS 7
Slide 8: I. Business Developments & Highlights
I. BUSINESS DEVELOPMENTS & HIGHLIGHTS Total Company Michael J. Mazzei joined as Chief Executive Officer & President of the Company on April 1, 2020 Operating Results Q1’20 GAAP net loss of $(78.8) million, or $(0.62) per share Q1’20 Total Core / LNS Earnings of $11.5 million, or $0.09 per sh
Slide 9: I. Business Developments & Highlights (Cont'd)
I. BUSINESS DEVELOPMENTS & HIGHLIGHTS (CONT’D) Core Portfolio (Cont’d) CRE Debt Securities Master Repurchase Facilities: Subsequent to the first quarter, the Company consolidated its borrowings with one existing counterparty, paid down its borrowings to a blended advance rate of 62% (providing f
Slide 10: I. Company Snapshot
I. COMPANY SNAPSHOT ($ in thousands, unless otherwise stated; as of March 31, 2020; at CLNC share) Company overview Portfolio overview Carrying Net carrying (1) Per Share $5.4 billion Total at-share assets value (1 ) value (4 ) Core Portfolio (2) Senior mortgage loans $ 2,281,164 $ 663,979 $ 5.05 60
Slide 11: II. Core Portfolio
ColonyCredit REAL ESTATE Il. CORE PORTFOLIO
Slide 12: II. Core Portfolio – Overview
II. CORE PORTFOLIO – OVERVIEW (As of March 31, 2020; at CLNC share) Portfolio summary Investment type(3) Property type(3) Total number of Preferred equity & Other / 110 investments CRE debt other loans(4) mixed-use(5) securities 6% 11% 6% (1) $4.7 billion Total at-share assets Mezzanine Hotel Office
Slide 13: II. Core Portfolio – Loans & Preferred Equity Portfolio Overview
II. CORE PORTFOLIO – LOANS & PREFERRED EQUIT Y PORTFOLIO OVERVIEW (As of March 31, 2020; at CLNC share) Overview Investment type(5) Preferred equity & other loans (1) 9% $2.9 billion Total loans & preferred equity Mezzanine loans 11% Senior mortgage 53 Total number of investments loans 80% $54 milli
Slide 14: II. Core Portfolio – Loans & Preferred Equity Portfolio Overview (Cont'd)
II. CORE PORTFOLIO – LOANS & PREFERRED EQUIT Y PORTFOLIO OVERVIEW (CONT’D) ($ in thousands; as of March 31, 2020; at CLNC share) Number of Carrying Net carrying W.A. unlevered W.A. remaining W.A. extended (1) (2) (3) (4) (5) investments value value all-in yield term (years) term (years) Floating rat
Slide 15: II. Core Portfolio – CRE Debt Securities
II. CORE PORTFOLIO – CRE DEBT SECURITIES (As of March 31, 2020, unless otherwise stated; at CLNC share) Overview Ratings Category(6) (1) "B-Piece" $469 million Principal value Investments 33% (1) BBB- $270 million Carrying value 59% BB | B 8% (2) $73 million Net carrying value Vintage(6) (3) 51 Tota
Slide 16: II. Core Portfolio – Net Lease Real Estate
II. CORE PORTFOLIO – NET LEASE REAL ESTATE ($ and square feet in thousands; as of March 31, 2020, unless otherwise stated; at CLNC share) Rentable W.A. % leased W.A. remaining Number of Number of Carrying Net carrying (3) Annualized square feet (1) (2) Q1'20 NOI (4) at end of lease term properties b
Slide 17: II. Core Portfolio – Investment Detail
II. CORE PORTFOLIO – INVESTMENT DETAIL ($ in millions; as of March 31, 2020; at CLNC share) Core Portfolio – loans & preferred equity portfolio Originatio n C arrying C oupo n C ash Unle ve red Ex tended Risk date C olla teral type C ity, State value ( 1) type coupo n all-in yie ld ( 2) ma turity da
Slide 18: II. Core Portfolio – Investment Detail (Cont'd)
II. CORE PORTFOLIO – INVESTMENT DETAIL (CONT’D) ($ in millions; rentable square feet in thousands; as of March 31, 2020; at CLNC share) Core Portfolio – loans & preferred equity portfolio (cont’d) Origination C arrying C oupo n C ash Unlevere d Ex te nded Risk date C o llateral type C ity, State val
Slide 19: III. Legacy, Non-Strategic Portfolio
III. LEGACY, NON- STRATEGIC PORTFOLIO 19
Slide 20: III. Legacy, Non-Strategic – Portfolio Overview
III. LEGACY, NON-STRATEGIC – PORTFOLIO OVERVIEW ($ in thousands, unless otherwise stated; as of March 31, 2020; at CLNC share) Portfolio summary Investment type(3) Property type(3) Total number of 51 investments Senior PE interests Hotel mortgage loans 2% Preferred equity(4) 5% 5% <1% Retail (1) Net
Slide 21: III. Legacy, Non-Strategic – Loans & Preferred Equity Portfolio Overview
III. LEGACY, NON-STRATEGIC – LOANS & PREFERRED EQUIT Y PORTFOLIO OVERVIEW (As of March 31, 2020; at CLNC share) Overview Investment type(5) Preferred equity <1% Senior (1) loans $92 million Total loans & preferred equity Mezzanine 31% loans 69% 11 Total number of investments Property type(5) $8 mill
Slide 22: III. Legacy, Non-Strategic – Loans & Preferred Equity Portfolio Overview (Cont'd)
III. LEGACY, NON-STRATEGIC – LOANS & PREFERRED EQUIT Y PORTFOLIO OVERVIEW (CONT’D) ($ in thousands; as of March 31, 2020; at CLNC share) Number of Carrying Net carrying W.A. unlevered W.A. remaining W.A. extended (1) (2) (3) (4) (5) investments value value all-in yield term (years) term (years) Floa
Slide 23: III. Legacy, Non-Strategic – Net Lease Real Estate
III. LEGACY, NON-STRATEGIC – NET LEASE REAL ESTATE ($ and square feet in thousands; as of March 31, 2020, unless otherwise stated; at CLNC share) Rentable W.A. % leased W.A. remaining Number of Number of Carrying Net carrying (3) Annualized square feet (1) (2) Q1'20 NOI (4) at end of lease term prop
Slide 24: III. Legacy, Non-Strategic – Other Real Estate
III. LEGACY, NON-STRATEGIC – OTHER REAL ESTATE ($ and square feet in thousands; as of March 31, 2020, unless otherwise stated; at CLNC share) Rentable square Annualized W.A. % leased W.A. remaining Number of Number of Carrying Net carrying Q1'20 NOI / feet ("RSF") / (1) (2) (3) Q1'20 NOI / at end of
Slide 25: III. Legacy, Non-Strategic – Investment Detail
III. LEGACY, NON-STRATEGIC – INVESTMENT DETAIL ($ in millions; as of March 31, 2020; at CLNC share) Legacy, Non-Strategic Portfolio – loans & preferred equity portfolio C oupon C ash Unle ve red Ex tended C olla tera l type C ity, Sta te type coupon a ll-in yield ( 1) m aturity date ( 2) Senio r loa
Slide 26: III. Legacy, Non-Strategic – Investment Detail (Cont'd)
III. LEGACY, NON-STRATEGIC – INVESTMENT DETAIL (CONT’D) ($ in millions; rentable square feet in thousands; as of March 31, 2020; at CLNC share) Legacy, Non-Strategic Portfolio – net lease & other real estate Re ntable square # of # of fe et ("RSF ") / W .A. W .A. le ase C o llate ral type C ity, Sta
Slide 27: III. Legacy, Non-Strategic – Investment Detail (Cont'd)
III. LEGACY, NON-STRATEGIC – INVESTMENT DETAIL (CONT’D) ($ in millions; rentable square feet in thousands; as of March 31, 2020; at CLNC share) Legacy, Non-Strategic Portfolio – net lease & other real estate (cont’d) Re ntable square # of # of fe et ("RSF ") / W .A. W .A. le ase C o llate ral type C
Slide 28: IV. Capitalization
ColonyCredit REAL ESTATE IV. CAPITALIZATION
Slide 29: IV. Capitalization Highlights
IV. CAPITALIZATION HIGHLIGHTS (As of March 31, 2020, unless otherwise stated; at CLNC share) Overview Capital structure(4) CMBS credit $5.2 billion Total capitalization facilities (excluding cash) 4% Corporate revolving Other debt(6) credit facility 1% 7% (1) $3.2 billion Total outstanding debt Mast
Slide 30: IV. Capitalization Overview
IV. CAPITALIZATION OVERVIEW ($ in thousands; as of March 31, 2020; at CLNC share) Recourse vs. W.A. extended W.A. contractual W.A. all-in Outstanding (1) (2) (2) (2)(3) (4) Non-recourse maturity interest rate COF debt (UPB) Corporate debt Corporate revolving credit facility Recourse Feb-23 L + 2.25%
Slide 31: V. Appendix
ColonyCredit REAL ESTATE V. APPENDIX LL LLL b LZ LLL
Slide 32: V. Appendix – Consolidated Balance Sheet
V. APPENDIX – CONSOLIDATED BALANCE SHEET (In thousands, except share and per share data; as of March 31, 2020 unless otherwise stated) March 31, 2020 (Unaudit ed) December 31, 2019 Assets Cash and cash equivalents $ 393,845 $ 69,619 Restricted cash 159,521 126,065 Loans and preferred equity held for
Slide 33: V. Appendix – Consolidated Statements of Operations
V. APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data; as of March 31, 2020, unless otherwise stated) (Unaudited) Three Months Ended March 31, 2020 2019 Net interest income Interest income $ 46,104 $ 38,409 Interest expense (20,744) (19,292) Interest income on mort
Slide 34: V. Appendix – Consolidated Statements of Operations by Segment
V. APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT ($ in thousands; as of March 31, 2020) (Unaudited) Three Months Ended March 31, 2020 Core Portfolio Loans and Legacy, Non- preferred CRE debt Net lease real Total Core Strategic equity securities estate Corporate Portfolio Portfolio Tota
Slide 35: V. Appendix – Outstanding Common Shares and OP Units
V. APPENDIX – OUTSTANDING COMMON SHARES AND OP UNITS As of As of March 31, 2020 December 31, 2019 Class A common stock 128,366,427 128,538,703 OP units 3,075,623 3,075,623 Total common stock and OP units outstanding 131,442,050 131,614,326 35 35
Slide 36: V. Appendix – Reconciliation of GAAP to Non-GAAP Financial Information
V. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (In thousands, except per share data; as of March 31, 2020) (Unaudited) Reconciliation of consolidated balance sheet to at CLNC share balance sheet As of March 31, 2020 Total Core Portf olio Legacy, Non-S trategic Portf olio (1)
Slide 37: V. Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
V. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) (In thousands, except per share data; as of March 31, 2020) (Unaudited) Reconciliation of GAAP net book value to undepreciated book value As of March 31, 2020 Legacy, Non-Strategic Total Portfolio Core Portfolio GAAP net
Slide 38: V. Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
V. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) (In thousands, except per share data; as of March 31, 2020) (Unaudited) Reconciliation of GAAP net income (loss) to Core Earnings (Loss)/Legacy, Non-Strategic Earnings (Loss) Three Months Ended March 31, 2020 Legacy, Non
Slide 39: V. Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
V. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) ($ in thousands; as of March 31, 2020) (Unaudited) Reconciliation of GAAP net income (loss) to NOI/EBITDA Three Months Ended March 31, 2020 Core Portfolio Legacy, Non-Strategic Portfolio Net lease Other Total Core Net le
Slide 40: V. Appendix – Footnotes
V. APPENDIX – FOOTNOTES Page 9 1. Net carrying value includes $27.5 million of investment-level financing related to one sold / resolved asset that was paid down subsequent to September 30, 2019. As a result, net carrying values as of September 30, 2019 may not be an appropriate proxy when comparing
Slide 41: V. Appendix – Footnotes (Cont'd)
V. APPENDIX – FOOTNOTES (CONT’D) Page 15 (cont’d) 4. W.A. calculation based on carrying value at CLNC share as of March 31, 2020 5. In addition to the stated cash coupon rate, unlevered all-in yield includes non-cash interest income related to the accretion of purchase discounts and are loss-adjuste
Slide 42: V. Appendix – Footnotes (Cont'd)
V. APPENDIX – FOOTNOTES (CONT’D) Page 20 (cont’d) 6. Other includes commercial and residential development and predevelopment assets 7. Represents carrying values at CLNC share as of March 31, 2020 8. Represents carrying values net of any in-place investment-level financing at CLNC share as of March
Slide 43: V. Appendix – Footnotes (Cont'd)
V. APPENDIX – FOOTNOTES (CONT’D) Page 26 1. Represents the percent leased as of March 31, 2020 and is weighted by carrying value at CLNC share as of March 31, 2020. Excludes hotel properties 2. Based on in-place leases (defined as occupied and paying leases) as of March 31, 2020 and assumes that no
Slide 44: V. Company Information
V. 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, preferr