Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q2 2021 Earnings Presentation
33 slides from Brightspire Capital's earnings presentation, Aug 4, 2021
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 scale internally managed commercial real estate credit REIT with conservative balance sheet poised for growth Stable & $4.3B $1.5B Growi Late] Total At-Share Assets New Senior Loan ; (Undepreciated) Originations Portfo
Slide 4: Second Quarter & Subsequent Events Update
SECOND QUARTER & SUBSEQUENT EVENTS UPDATE Closed internalization transaction on April 30"" INTERNALIZATION Expected annual cost savings of ~$14 to $16 million or ~$0.10 to $0.12 per share Completed rebranding to BrightSpire Capital, Inc. on June 24" Net loss of $(19.7) million, or $(0.15) per share,
Slide 5: Financial Overview
FINANCIAL OVERVIEW Key ial Metrics GAAP Net Loss ($M) Per Share Distributable Loss ($M) Per Share Adjusted Distributable Earnings ($M) Per Share Total At-Share Assets ($B) (Undepreciated) Total Debt Outstanding (UPB) ($B) Debt-to-Assets® Book Value (GAAP) ($B) Per Share Book Value (Undepreciated) ($
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net carrying value as of June 30, 2021 Investment Carrying Net carrying (At BRSP share) count value value Per share = Loan portfolio Senior mortgage loans 59 $ 2,624 $ 75 $ 5.39 mNet lease & other Mezzanine loans 10 275 275 2.07 rea
Slide 7: Senior & Mezzanine Loans & Preferred Equity
SENIOR & MEZZANINE LOANS & PREFERRED EQUITY Total number of investments $2.9B Total loans & preferred equity $39M Average investment size 100% of senior loans are floating rate 1.4 yrs. W.A. remaining term” 3.5 yrs. W.A.extended remaining term‘? 5.1% W.A. unlevered all-in yield") Senior mortgage loa
Slide 8: Senior & Mezzanine Loans & Preferred Equity (Cont'd)
SENIOR & MEZZANINE LOANS & PREFERRED EQUITY (CONT'D) Collateral Type Region Exposure as a % of Carrying Value Number of Carrying % of carrying | | (At BRSP share) investments value value West {Southwest iam Source’ 21% 21% - 4% - - Multifamily 39 $ 1,359,541 46% Office 20 857,668 29% 12% 3% 12% 2% -
Slide 9: Senior & Mezzanine Loans & Preferred Equity (Cont'd)
SENIOR & MEZZANINE LOANS & PREFERRED EQUITY (CONT'D) Number of Net carrying W.A. unlever xtended (At BRSP share) vestments all-in yield term (years) Floating rate Senior mortgage loans 58 $ 2,616,568 89% $ 707,976 47% 3.6 Mezzanine loans 1 1,182 0% 1,182 1.5% 12 Preferred equity 1 4,686 0% 4,686 0.0
Slide 10: Net Lease Real Estate & Other Real Estate
NET LEASE REAL ESTATE & OTHER REAL ESTATE PE endl EC OmCe (At BRSP share) ('RSF") & Keys period™! Net lease real estate ("NNN") Office 4 1933 RSF $ 395,832 57% $ 297 $ 7,001 100% Industrial 1 782 RSF 74,880 11% 20,911 4421 100% Retail 4 468 RSF 30,241 4% (11,278) 1218 100% Total / W.A. - NNN 9 3,183
Slide 11: CRE Debt Securities
CRE DEBT SECURITIES 6 Total number of investments $114M Principal value mbB IB ="B-Piece" investments $48M Carrying value $48M Net carrying value Vintage 100% 5.8 yrs. W.A. remaining term() = Non-investment grace ™"B-Piece” investments 75% Portfolio Activity + Sold four CRE debt security tranches, r
Slide 12: Investment Detail
INVESTMENT DETAIL Senior & Mezzanine Loans & Preferred Equity Origination Carrying Coupon Cash Unlevered Extended Risk (At BRSP share) date Collateral type City, State, value type coupon all-in yield’ _ maturity date" uv. ranking ‘Senior loans Loan Jun-19 Multifamily Milpitas, CA $ 180 Floating Le 3
Slide 13: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Senior & Mezzanine Loans & Preferred Equity (Cont'd) Origination Carrying Coupon Cash Unlevered Extended Risk (At BRSP share) date Collateral type City, State, value type coupon all-in yield’ _ maturity date" uv. ranking ‘Senior loans Loan 31 Apr-21 Office San Diego, CA 30
Slide 14: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Senior & Mezzanine Loans & Preferred Equity (Cont'd) Origination Carrying Coupon Cash Unlevered Extended Risk (At BRSP share) date Collateral type City, State, value type coupon all-in yield’ _maturity date" uv. ranking Mezzanine loans Loan 60 *,** Sep-20 Other (mixed-use)
Slide 15: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Net Lease Real Estate & Other Real Estate Origination Canying eza Hof Hof Rentable square Wa. WaA. lease (At BRSP share) date Collateral type City, State value NOI properties buildings feet ("RSF") %leased™ term (yrs)! Net lease real estate Net lease 1 Jul-18 Office Staven
Slide 16: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Conservative and diversified capital structure with a 1.3x net debt-to-equity ratio and embedded capacity under existing financing sources (fully undrawn corporate revolver, $1.5 billion of repurchase facilities availability) Key Financial Metrics Capital Structure Total ca
Slide 17: Capitalization Overview
CAPITALIZATION OVER (At BRSP share) Corporate debt Corporate revolving credit facility Investment-level debt Master repurchase facilities Securitization bonds payable Mortgage debt — net lease (fixed) Mortgage debt — net lease (floating) Mortgage debt - other real estate (fixed) Mortgage debt - othe
Slide 18: Benefiting from Low Rates
BENEFITING FROM LOW RATES BRSP net interest income is well-protected and benefits from current low rates due to in-place LIBOR floors 2) ~100% of the total senior mortgage loan portfolio are floating rate (indexed to one-month USD LIBOR) ‘@) 96% of floating rate senior mortgage loans have in-place L
Slide 19: Appendix
APPENDIX Be BRIGHTSPIRE
Slide 20: 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 21: 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 BRSP 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 22: 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. During the first quarter of 2021, the C
Slide 23: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET June 30, 2021 (unaudited) December 31, 2020 Assets Cash and cash equivalents $ 210,182 $ 474817 Restticted cash 81837 65,218 Loans and prefered equity held for investment 2,852,935 2,220,688 Allowance for loan losses (42,152) (37,191) Loans and preferred equity held for in
Slide 24: 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 25: Consolidated Statement of Operations by Segment
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT Net interest income Interest income Interest expense Three Months Ended June 30, 2021 Interest income on mortgage loans held in securitization trusts Interest expense on mortgage obligations issued by securitization trusts Net interest income Property
Slide 26: Outstanding Common Shares and OP Units
OUTSTANDING COMMON SHARES AND OP UNITS As of As of June 30, 2021 March 31, 2021 Class A common stock 129,759,132 129,849,135 OP units 3,075,623 3,075,623 Total common stock and OP units outstanding 132,834,755 132,924,758 Be BRIGHTSPIRE CAPITAL 26
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 BRSP share balance sheet As of June 30, 2021 (20) a0 Consolidated NCI At BRSP share! Assets Loans and preferred equity held for investment, net $ 2,810,783 $ - $ 2,810,783 Real estate securiti
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT'D) Reconciliation of GAAP net book value to undepreciated book value As of June 30, 2021 GAAP net book value (excluding noncontrolling interests in investment entities) $ 1,560,311 Accumulated depreciation and amortization" 121,254 Undep
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 Earnings (Loss) Three Months Ended June 30, 2021 Net loss attributable to BrightSpire Capital, Inc. common stockholders $ (19,720) Adjustments: Net loss attributable to noncontrolling i
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 income (loss) to NOI Three Months Ended June 30, 2021 Net lease Other realestate real estate Total Net income (loss) attributable to BrightSpire Capital, Inc. common stockholders $ 2,703 $ (1,257)| $ 446 Adj
Slide 31: Footnotes
FOOTNOTES PANS n Amounts presented reflect total committed capital and include both closed and in-execution deals as of August 2, 2021 Based on GAAP gross carrying values; excludes cash and net assets As of August 2, 2021 Net-debt-to-equity ratio based on BRSP's share of total outstanding secured de
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