Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Colony Credit Real Estate — Q2 2019 Earnings Presentation
27 slides from Brightspire Capital's earnings presentation, Aug 8, 2019
Slide 1: Supplemental Financial Report Second Quarter 2019
Exhibit 99.2 Supplemental Financial Report Second Quarter 2019 August 8, 2019 1Exhibit 99.2 Supplemental Financial Report Second Quarter 2019 August 8, 2019 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, 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: 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 5: Table of Contents
TABLE OF CONTENTS Page I. Business Developments & Portfolio Highlights 6 II. Loan Portfolio 8 III. CRE Debt Securities 10 IV. Net Lease Real Estate 11 V. Other Real Estate 12 VI. Capitalization 13 VII. Appendix 15 5 5TABLE OF CONTENTS Page I. Business Developments & Portfolio Highlights 6 II. Loan P
Slide 6: I. Business Developments & Highlights
I. BUSINESS DEVELOPMENTS & HIGHLIGHTS § Second quarter 2019 GAAP net loss attributable to common stockholders of $(107.3) million, or $(0.84) per common share, and core earnings of $36.3 million, or $0.28 per diluted share. Excluding $14.5 million of realized losses related to completed foreclosure
Slide 7: I. Portfolio Highlights
I. PORTFOLIO HIGHLIGHTS ($ in thousands, unless otherwise stated; as of June 30, 2019; at CLNC share) (4) Overview Property type (6) Other (1) $5.8 Billion Total At-Share Assets 11.1% Annual Dividend Yield Retail 5% 6% Office (2) (3) 52% Debt-to-Assets 1.1x Net-Debt-to-Equity Hotel 36% 17% (1) $2.7
Slide 8: II. Loan Portfolio Highlights
II. LOAN PORTFOLIO HIGHLIGHTS (As of June 30, 2019; at CLNC share) (5) Investment type Overview Preferred equity & other loans 10% (1) Mezzanine Total loan portfolio $3.1 billion loans 13% Senior loans 77% Total number of investments 70 (5) Property type Average loan size $44 million Industrial Reta
Slide 9: II. Loan Portfolio Overview
II. LOAN PORTFOLIO OVERVIEW ($ in thousands; as of June 30, 2019; at CLNC share) Carrying Net carrying W.A. unlevered W.A. remaining W.A. extended Number of (1) (2) (3) (4) (5) investments value value all-in yield term (years) term (years) Floating rate Senior mortgage loans 41 $ 2,136,303 $ 670,179
Slide 10: III. CRE Debt Securities
III. CRE DEBT SECURITIES (As of June 30, 2019, unless otherwise stated; at CLNC share) (6) Overview Ratings Category B-Piece (1) Investments Principal value $519 million 37% BBB- (1) 56% Carrying value $399 million BB | B (2) 7% Net carrying value $192 million (6) Vintage (3) Number of investments 5
Slide 11: IV. Net Lease Real Estate
IV. NET LEASE REAL ESTATE ($ and square feet in thousands; as of June 30, 2019, unless otherwise stated; at CLNC share) Undepreciated Undepreciated W.A. % leased W.A. remaining Annualized Number of Rentable (3) carrying net carrying at end of lease term Q2 NOI (4) buildings square feet Q2 NOI (1) (2
Slide 12: V. Other Real Estate
V. OTHER REAL ESTATE ($ and square feet in thousands; as of June 30, 2019, unless otherwise stated; at CLNC share) Undepreciated Undepreciated W.A. % leased W.A. remaining Rentable square Q2 NOI / Annualized Q2 Number of carrying net carrying at end of lease term feet ( RSF ) / (3) (4) buildings EBI
Slide 13: VI. Capitalization Highlights
VI. CAPITALIZATION HIGHLIGHTS (As of June 30, 2019, unless otherwise stated; at CLNC share) (4) Overview Capital structure (6) Other debt CMBS credit Total capitalization Securitization 1% facilities $5.6 billion bonds payable (excluding cash) 4% <1% Corporate revolving credit facility 4% (1) Total
Slide 14: VI. Capitalization Overview
VI. CAPITALIZATION OVERVIEW ($ in thousands; as of June 30, 2019; at CLNC share) Recourse vs. W.A. extended W.A. contractual W.A. all-in Outstanding Maximum (1) (2) (2) (2)(3) (4) Non-recourse maturity interest rate COF debt (UPB) availability Corporate debt Corporate revolving credit facility $560,
Slide 15: VII. Appendix
VII. APPENDIX 15VII. APPENDIX 15
Slide 16: Consolidated Balance Sheet
VII. APPENDIX – CONSOLIDATED BALANCE SHEET (In thousands, except share and per share data; as of June 30, 2019 unless otherwise stated) June 30, 2019 (Unaudited) December 31, 2018 Assets $ 59,838 $ 77,317 Cash and cash equivalents Restricted cash 114,127 110,146 Loans and preferred equity held for i
Slide 17: Consolidated Statements of Operations
VII. APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data; as of June 30, 2019 unless otherwise stated) (Unaudited) Three Months Ended June 30, 2019 2018 Net interest income Interest income $ 42,073 $ 36,795 Interest expense (21,046) (9,703) Interest income on mortga
Slide 18: Consolidated Statements of Operations by Segment
VII. APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT (In thousands; as of June 30, 2019 unless otherwise stated) (Unaudited) Three Months Ended June 30, 2019 Loan CRE debt Net lease portfolio securities real estate Other Corporate Total Net interest income Interest income $ 38,058 $ 4,40
Slide 19: Outstanding Common Shares and OP Units
VII. APPENDIX – OUTSTANDING COMMON SHARES AND OP UNITS On February 1, 2019, all Class B-3 common stock converted to Class A common stock (the “common stock”). As of August 6 2019, the Company had approximately 128.5 million shares of common stock outstanding and the Company’s operating partnership h
Slide 20: 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 June 30, 2019) (Unaudited) Reconciliation of GAAP total assets to CLNC share of total assets As of June 30, 2019 (1) (2) Consolidated NCI At CLNC share Cash and cash equi
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
VII. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) ($ and shares in thousands, except per share data; as of June 30, 2019 unless otherwise stated) (Unaudited) Reconciliation of GAAP net loss to core earnings Three Months Ended June 30, 2019 Net loss attributable to Col
Slide 22: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
VII. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) ($ in thousands; as of June 30, 2019 unless otherwise stated) (Unaudited) Reconciliation of segment GAAP net income/(loss) to core earnings Three Months Ended June 30, 2019 Loan CRE debt Net lease portfolio securities
Slide 23: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
VII. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) ($ in thousands; as of June 30, 2019) (Unaudited) Reconciliation of GAAP net loss to NOI/EBITDA Three Months Ended June 30, 2019 Net lease Other real estate real estate Net loss attributable to Colony Credit Real Estat
Slide 24: Footnotes
VII. APPENDIX – FOOTNOTES Page 6 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 second quarter 2019, the weighted average number of
Slide 25: Footnotes (Cont'd)
VII. APPENDIX – FOOTNOTES (CONT’D) Page 11 1. Represents undepreciated carrying values at CLNC share as of June 30, 2019; includes deferred leasing costs and other intangible assets 2. Represents undepreciated carrying values net of any in-place investment-level financing at CLNC share as of June 30
Slide 26: Footnotes (Cont'd)
VII. APPENDIX – FOOTNOTES (CONT’D) Page 21 1. Represents transaction costs incurred as a result of the formation of Colony Credit Real Estate, Inc. 2. Core Earnings reflects adjustments to U.S. GAAP net income to exclude impairment of real estate and provision for loan losses. Upon realization of th
Slide 27: 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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