Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q2 2024 Earnings Presentation
35 slides from Brightspire Capital's earnings presentation, Jul 30, 2024
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 Diversified Portfolio ating ate Senior Li Balance Sheet $3.9B $2.8B Total At-Share Assets Total Loan (Undepreciated) Portfolio *83
Slide 4: Summary Results & Subsequent Events Update
SUMMARY RESULTS & SUBSEQUENT EVENTS UPDATE * GAAP Net Loss of ($67.9) million, or ($0.53) per share * Distributable Earnings of $17.0 million, or $0.13 per share * Adjusted Distributable Earnings of $28.8 million, or $0.22 per share FINANCIAL RESU. * Paid a dividend of $0.20 per share for Q2'24 * GA
Slide 5: Financial Overview
FINANCIAL OVERVIEW ial Metrics Capital Structure Key GAAP Net Loss ($M) ($67.9) Per Share ($0.53) ™ Stockholders’ equity (undepreciated) Distributable Earnings ($M) $17.0 ™ Master repurchase facilities (limited recourse) Per Share $0.13 dete capitalization '™ Securitization bonds payable (non-recour
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Bosed on GAAP net carrying value as of June 30, 2024 Investment Carrying —_—Net carrying (At BRSP share) count value value Per share ®Loan portfolio Senior mortgage loans 78 $ 2,667 $ 790 $ 6.05 wiNet lease @other Mezzanine loans 5 87 87 0.67 rea
Slide 7: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW 83 $2.8B $33M 0.5 yrs. 1.9 yrs. 8.6% Total number of investments Total loan portfolio Average investment size W.A. remaining term W.A. extended remaining term" W.A. unlevered all-in yield W.A. risk ranking of senior loans are floating rate Senior mortgage loans = Multifamily
Slide 8: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Collateral Type Region Exposure as a % of Carrying Value Number of Carrying % of carrying (At BRSP share) investments value value Mies: | southwest | Northeast | Soutreast Multifamily 49 $ 1,481,325 54% 19% 30% 2% 4% Office 24 821,219 30% 18% 8% 5% 3% Hotel 3 220,504 8
Slide 9: Loan Portfolio Summary
LOAN PORTFOLIO SUMMARY Number of Net carrying xtended (At BRSP share) investments carrying value value term (years) Floating rate Senior mortgage loans 78 $ 2,666,957 97% $ 789,828 8.7% 19 Mezzanine loans 1 12,450 0% 12,450 16.3% 03 Total / W.A. floating rate 79 2,679,407 97% 802,278 8.7% 19 Fixed r
Slide 10: Loan Portfolio Maturities
LOAN PORTFOLIO MATURITIES Weighted average fully extended remaining term of approximately 1.9 years across the loan portfolio Fully Extended Loan Maturities" $1,250 = Fully extended loan maturities (carrying value) = Unfunded commitments $1,000 $750 £ ' ” Minimal final 1 $500 1 maturities in 2024 4
Slide 11: Net Lease Real Estate & Other Real Estate Summary
NET LEASE REAL ESTATE & OTHER REAL ESTATE SUMMARY Number of BRSP Bae Canying | %ofearying | Net carrying | @2'24NOI “s pws bali) (at BRSP share) investments | ownership % | pee /ynite | value value value | et BRSPshore)] 7 (years)? Net lease real estate ("NNN") Office* 3 100% 1SIRSF $ 256,452 32% $
Slide 12: Loan Portfolio Watch List Loans
LOAN PORTFOLIO WATCH LIST LOANS San Jose, CA Santa Clara, CA Arlington, TX Las Vegas, NV Fort Worth, TX Milpitas, CA Investment Senior Loan Senior Loan Senior Loan Senior Loan Senior Le Mezzanine Loan ( in 74) 1) 5) ( ) fe) ) (l in 19) WReEIRErE TRE Floating-Rate Floating-Rate Floating-Rate Floating
Slide 13: Loan Portfolio Watch List Loans (Cont'd)
LOAN PORTFOLIO WATCH LIST LOANS (CONT'D) Investment Las Vegas, NV Mezzanine Loan (Loan 25) Phoenix, AZ Senior Loan (Loan 42) Tualatin, OR Senior Loan {Lo« Reston, VA Senior Loan (Loan 57) Dallas, TX Senior Loan Richardson, TX Senior Loan N72) Investment Type Origination Date / Transaction Type Colla
Slide 14: Investment Updates
INVESTMENT UPDATES Net Lease Real Estate & Other Real Estate Collateral jation —# of Rentable square Principal Undepreciated Final debt @2'24 type Ci date properties. bui feet ("RSF emount ofdebt net carrying value mati Nol Netlease1 Industrial Various - U.S. Aug-18 2 2 2,787k RSF 100% WI $200M $92M
Slide 15: Investment Detail
INVESTMENT DETAIL Loan Portfolio Origination Carrying Coupon Cash Unlevered Extended 226 Risk —_Q124 Risk (At BRSP shore) __Investment Type date City, State value type coupon all-in yield" maturity date™ LTV ranking ranking [Multifamily Loan 1" Senior Jun-19 Santa Clara, CA $ ST Floating S155% 108%
Slide 16: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Carrying Coupon Cash Unlevered Extended Q226 Risk 124 Risk {At BRSP shore) __ Investment Type date City, State value type coupon all-inyield” maturity date" uv ranking Loan 36 Senior Jura Oregon City, OR $ 2 Floating S545 9.0% ‘Aug=26 73% 3 3 Loan 37 Senior Jon-22 Austin,
Slide 17: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Loan Portfolio (Cont'd) Origination Carrying Coupon Cash Unlevered Extended G22 Risk QT Risk (At BRSP share) __ Investment Type date City, State value type coupon all-inyield” maturity date” uv ranking ranking (office Loan 70 Senior ‘Aug-21 Los Angeles, CA 1% Floating $+4.
Slide 18: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Net Lease Real Estate & Other Real Estate Origination Collateral Undepreciated Outstanding —Net carrying = @22H tot fof —-Rentablesquare «WA. W.A. lease. (At BRSP share} date type City, State carrying value debt (UPB) value NOI properties buildings feet ("RSF") / Units %le
Slide 19: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Diversified capital structure of primarily non-recourse debt and a 2.1x debt-to-equity ratio. Embedded capacity under existing financing facilities including an undrawn corporate revolver and $1.0B of repurchase facilities availability Key Financial Metrics Capital Structur
Slide 20: Capitalization Summary
CAPITALIZATION SUMMARY Recourse v W.A. contractual Outstanding (At BRSP share) non-recourse interest rate debt (UPB) Corporate debt Corporate revolving credit facility Recourse Jon-27 $+ 2.25% 7.10% $ - Investment-level debt Master repurchase facilities Limited recourse Apr-27 $+1.96% 7.30% 998,699
Slide 21: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY 2) 100% of senior mortgage loan value is floating rate nnual Net Interest Income Sensitivity to Changes in Benchmark Rate: SOFR: 5.34% (As of June 30, 2024) $5.0 $0.0 o 8 = ($5.0) = o ($0.05) ($9.4) per share ($10.0) ($0.07) per share ($0.09) per share ($15.0) (2.00%) (1.50
Slide 22: \ a | amr'd
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Slide 23: 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 24: 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 25: 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 26: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET June 30, 2024 (Unaudited) December 31, 2023 Assets Cash and cash equivalents $ 203,306 $ 257,506 Restricted cash 85,424 104,583 Loans held for investment 2,754,341 2,936,506 Current expected credit loss reserve (71,330) (76,028) Loans held for investment, net 2,583,011 2,8
Slide 27: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended June 30, 2024 2023 Net interest income Interest income $ 63318 $ 74,339 Interest expense (38,066) (44,095) Net interest income 25,252 30,264 Property and other income Property operating income 25,178 Other income 2921 Total property and other i
Slide 28: Consolidated Statement of Operations by Segment
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT Three Months Ended June 30, 2024 Loans and Netleasedand Corporate and preferred equity _ other real estate other Total Net interest income Interest income $ 63,239 $ B S$ 66 | $ 63,318 Interest expense (37,695) (68) (303) (38,066) Net interest income (
Slide 29: 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 June 30, 2024 Consolidated Nelad At BRSP share”? Assets Loans and preferred equity held for investment, net $ 2,583,011 $ - $ 2,583,011 Real estate, net 736,870 11,83
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 book value to undepreciated book value GAAP net book value (excluding noncontrolling interests in investment entities) Accumulated depreciation and amortization” Non-GAAP impairment of real estate” Undepreci
Slide 31: 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 and Adjusted Distributable Earnings Net loss attributable to BrightSpire Capital, Inc. common stockholders Adjustments: Non-cash equity compensation expense Depreciation and am
Slide 32: 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 June 30, 2024 Net loss attributable to BrightSpire Capital, Inc. common stockholders $ (67,860) Adjustments. Net loss attributable to non-net leased and other real estate portf
Slide 33: Footnotes
FOOTNOTES 1. Includes availability under the corporate revolving credit facility and unrestricted cash as of July 26, 2024 2. Asof July 26, 2024 3. Debt-to-equity ratio based on BRSP’s share of total outstanding unpaid principal balance ("UPB") divided by total stockholders’ equity excluding the imp
Slide 34: 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 35: BrightSpire Capital
BD@ BRIGHTSPIRE