Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q1 2021 Earnings Presentation
32 slides from Brightspire Capital's earnings presentation, May 5, 2021
Slide 1: Supplemental Financial Report First Quarter 2021
S U P P L E M E N TA L F I N A N C I A L R E P O R T FIRST QUARTER 2021 MAY 5, 2021 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: Company Highlights
COMPANY HIGHLIGHTS Leading internalized commercial real estate credit REIT with conservative balance sheet poised for growth Stable & Growing Portfolio Robust Liquidity of Primarily Senior Loans & Net Lease Assets $4.1B $1.0B $443M $330M Total At-Share Assets New Senior Loan Originations Total Liqui
Slide 4: First Quarter & Subsequent Events Update
FIRST QUARTER & SUBSEQUENT EVENTS UPDATE • Announced internalization transaction on April 5th and subsequently closed on April 30th Internalization • Expected annual cost savings of ~$14 to $16 million or ~$0.10 to $0.12 per share • Transparent organizational model with a dedicated employee base and
Slide 5: Financial Overview
FINANCIAL OVERVIEW Key Financial Metrics (At CLNC share) $mm / Per Share (At CLNC share) $mm / Per Share GAAP Net Loss ($92.3) / ($0.71) Total At-Share Assets $4,086 Distributable Earnings $13.8 / $0.10 GAAP Net Book Value $1,593 / $11.98 Adj. Distributable Earnings* $18.0 / $0.14 Undepreciated Book
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net book value as of March 31, 2021 Investment Carrying Net carrying CRE debt securities(6) (At CLNC share) Count value value Per Share 6% Net lease & other real estate Senior mortgage loans 48 $ 2,409 $ 706 $ 5.31 13% Mezzanine loa
Slide 7: Senior and Mezzanine Loans and Preferred Equity
SENIOR AND MEZZANINE LOANS AND PREFERRED EQUIT Y Overview 64 Total number of investments West 53% Northeast 20% $2.7 billion Total loans & preferred equity Midwest 1% Southwest $43 million Average investment size 21% Southeast 99% % Senior loans floating rate Europe 1% 4% (11) 1.3 years W.A. remaini
Slide 8: Senior and Mezzanine Loans and Preferred Equity (Cont'd)
SENIOR AND MEZZANINE LOANS AND PREFERRED EQUIT Y (CONT’D) Collateral Type Region Exposure as a % of Carrying Value Number of Carrying % of carrying West Southwest Northeast Southeast Europe Midwest (At CLNC share) investments value value Multifamily 29 $ 1,121,677 41% 21% 18% - 2% - - Office 19 865,
Slide 9: Senior and Mezzanine Loans and Preferred Equity (Cont'd)
SENIOR AND MEZZANINE LOANS AND PREFERRED EQUIT Y (CONT’D) Number of Carrying % of carrying Net carrying W.A. unlevered W.A. extended (13) (12) (At CLNC share) investments value value value all-in yield term (years) Floating rate Senior mortgage loans 47 $ 2,386,512 87% $ 682,785 5.0% 3.5 Mezzanine l
Slide 10: Net Lease Real Estate and Other Real Estate
NET LEASE REAL ESTATE AND OTHER REAL ESTATE Rentable W.A. % leased W.A. remaining Number of Carrying % of carrying Net carrying square feet Q1'21 NOI at end of lease term investments value value value (14) (15) (At CLNC share) ("RSF") & Keys period (years) Net lease real estate ("NNN") Office 4 1,93
Slide 11: CRE Debt Securities
CRE DEBT SECURITIES Overview Ratings Category Based on GAAP gross carrying value as of March 31, 2021 BB | B 10 Total number of investments 6% $188 million Principal value $79 million Carrying value "B-Piece" Investments 94% $79 million Net carrying value Vintage Based on GAAP gross carrying value a
Slide 12: Investment Detail
INVESTMENT DETAIL Senior and mezzanine loans and preferred equity Origination Carrying Coupon Cash Unlevered Extended Risk (13 ) (1 2) (At CLNC share) date Collateral type City, State value type coupon all-in yield maturity date LTV ranking Senior loans Loan 1 Jun-19 Multifamily Milpitas, CA $ 180 F
Slide 13: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT’D) Senior and mezzanine loans and preferred equity (cont’d) Origination Carrying Coupon Cash Unlevered Extended Risk (13 ) (1 2) (At CLNC share) date Collateral type City, State value type coupon all-in yield maturity date LTV ranking Senior loans Loan 39 Feb-21 Multifamily R
Slide 14: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT’D) Net lease real estate and other real estate Origination Carrying Q1'21 # of # of Rentable square W.A. W.A. lease (1 4 ) (1 5 ) (At CLNC share) date Collateral type City, State value NOI properties buildings feet ("RSF") % leased term (yrs) Net lease real estate Net lease 1
Slide 15: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Conservative and diversified capital structure with a 1.1x net debt-to-equity ratio and embedded capacity under existing financing sources (fully undrawn corporate revolver, $1.2 billion of availability under repo facilities) Overview Capital Structure $3.8 billion Total ca
Slide 16: Capitalization Overview
CAPITALIZATION OVERVIEW Recourse vs. W.A. extended W.A. contractual W.A. all-in Outstanding (18) (19) (19) (17) (At CLNC share) Non-recourse maturity interest rate COF debt (UPB) Corporate debt Corporate revolving credit facility Recourse Feb-23 L + 2.25% 2.36% $ - Investment-level debt Securitizati
Slide 17: Benefiting from Low Rates
BENEFITING FROM LOW RATES CLNC net interest income is well-protected and benefits from current low rates due to in-place LIBOR floors 99% of the total senior mortgage loan portfolio are floating rate (indexed to one-month USD LIBOR) 99% of floating rate senior mortgage loans have in-place LIBOR
Slide 18: Appendix
Colony REAL ESTATE APPENDIX
Slide 19: 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 20: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS 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 applying i
Slide 21: 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. During the first quarter of
Slide 22: Appendix – Consolidated Balance Sheet
APPENDIX – CONSOLIDATED BALANCE SHEET March 31, 2021 (Unaudited) December 31, 2020 Assets Cash and cash equivalents $ 430,312 $ 474,817 Restricted cash 58,031 65,213 Loans and preferred equity held for investment 2,616,308 2,220,688 Allowance for loan losses (40,791) (37,191) Loans and preferred equ
Slide 23: Appendix – Consolidated Statements of Operations
APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended March 31, 2021 2020 Net interest income Interest income $ 34,374 $ 46,104 Interest expense (12,495) (20,744) Interest income on mortgage loans held in securitization trusts 19,689 20,555 Interest expense on mortgage obligations issu
Slide 24: Appendix – Consolidated Statements of Operations by Segment
APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT Three Months Ended March 31, 2021 Loans and preferred equity CRE debt securities Net lease real estate Corporate Total Net interest income Interest income $ 34,374 $ - $ - $ - $ 34,374 Interest expense (11,455) - - (1,040) (12,495) Interest
Slide 25: Appendix – Outstanding Common Shares and OP Units
APPENDIX – OUTSTANDING COMMON SHARES AND OP UNITS As of As of March 31, 2021 December 31, 2020 Class A common stock 129,849,135 128,564,930 OP units 3,075,623 3,075,623 Total common stock and OP units outstanding 132,924,758 131,640,553 25 25
Slide 26: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION Reconciliation of consolidated balance sheet to at CLNC share balance sheet As of March 31, 2021 (20) (21) Consolidated NCI At CLNC share Assets Loans and preferred equity held for investment, net $ 2,575,517 $ - $ 2,575,517 Real es
Slide 27: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) Reconciliation of GAAP net book value to undepreciated book value As of March 31, 2021 GAAP net book value (excluding noncontrolling interests in investment entities) $ 1,592,886 (10) Accumulated depreciation and amortizati
Slide 28: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) Reconciliation of GAAP net loss to Distributable Earnings Three Months Ended March 31, 2021 Net loss attributable to Colony Credit Real Estate, Inc. common stockholders $ (92,314) Adjustments: Net loss attributable to nonco
Slide 29: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) Reconciliation of GAAP net income (loss) to NOI Three Months Ended March 31, 2021 Net lease Other real estate real estate Total Net income (loss) attributable to Colony Credit Real Estate, Inc. common stockholders $ 12,982
Slide 30: Appendix – Footnotes
APPENDIX – FOOTNOTES 1. Amounts presented reflect total committed capital and include both closed and in-execution deals as of May 3, 2021 2. Based on GAAP gross carrying values; excludes cash and net assets 3. As of May 3, 2021 4. Net-debt-to-equity ratio based on CLNC’s share of total outstanding
Slide 31: Company Information
COMPANY INFORMATION Colony Credit Real Estate (NYSE: CLNC) is 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 properties predomi
Slide 32: Colony Credit Real Estate
ColonyCredit REAL ESTATE