Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q3 2021 Earnings Presentation
34 slides from Brightspire Capital's earnings presentation, Nov 3, 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 a growing balance sheet Stable & $4.4B $2.1B Sroie inert “irom Robust ortfolio ceca Liquidity Of Prir Ve IS Net Lea: 88% of investments in senior loans o
Slide 4: Third Quarter & Subsequent Events Update
THIRD QUARTER & SUBSEQUENT EVENTS UPDATE * Net loss of $(70.1) million, or $(0.54) per share, and Distributable Loss of $(68.4) million, or $(0.51) per share * Adjusted Distributable Earnings of $35.0 million, or $0.26 per share FINANCIAL * Recorded $0.74 per share fair value loss related to a const
Slide 5: Financial Overview
FINANCIAL OVERVIEW Key Financial Metrics Capital Structure GAAP Net Loss ($M) $(70.1) : Per Share $10.54) Stockholders’ equity (undepreciated) = Securitization bonds payable (non-recourse) Distributable Loss ($M) $(68.4) Total Per Share $(0.51) capitalization = Master repurchase facilities (limited
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net carrying value as of September 30, 2021 Investment Carrying Net carrying (At BRSP share) count value value Per share @Loan portfolio Senior mortgage loans 75 $ 2,976 $ 842 $ 6.34 Mezzanine loans 10 186 186 1.40 Net lease & other
Slide 7: Loan Portfolio
LOAN PORTFOLIO Total number of investments $3.2B Total loans & preferred equity $36M Average investment size 1.6 yrs. W.A. remaining term") 3.5 yrs. W.A.extended remaining term!) 5.4% W.A. unlevered all-in yield) 3.2 W.A. risk ranking Senior mortgage loans 99.7% of senior loans are floating rate ™ M
Slide 8: Loans Portfolio (Cont'd)
LOANS PORTFOLIO (CONT'D) Collateral Type West | Southwest | Northeast | Southeast Region Exposure as a % of Carrying Value Midwest 22% 27% 1% 2% = 12% 3% 1% 3% 7 13% 0% 0% * 1% 0% a 2% # = 0% 0% 0% 0% 0% Europe Number of Carrying % of carrying (At BRSP share) investments value value Multifamily 83 $
Slide 9: Loan Portfolio (Cont'd)
LOAN PORTFOLIO (CONT'D) r of Carrying Net carrying unlevered extended (At BRSP share) investments value value term (years) Floating rate Senior mortgage loans 74 $ 2,967,965 93% 833,699 49% 35 Mezzanine loans i) 12,120 0% 12,120 n1S% 09 Total / W.A. floating rate 75 2,980,085 93% 845,819 4.9% 3.5 Fi
Slide 10: Loan Portfolio (Cont'd)
LOAN PORTFOLIO (CONT'D) Weighted average fully extended remaining term of approximately 3.5 years across the loan portfolio Fully Extended Loan Maturities‘) $2,000 = Fully extended loan maturities (carrying value) = Unfunded Commitments $1,500 $1,000 $500 151 $82 § $24 <$1 $49 <$1 $0 $0 SS 2021 2022
Slide 11: Net Lease Real Estate & Other Real Estate
NET LEASE REAL ESTATE & OTHER REAL ESTATE Rentable : ; W.A. % leased |W.A. remaining Number of BRSP Carrying | %ofcamying | Net carrying | @3'21NOI B i square feet at end of lease term investments |ownership %| jo cc value value value —_| (at BRSP share) ej 5) (At BRSP share) ("RSF") & Keys period (
Slide 12: CRE Debt Securities
CRE DEBT SECURITIES 6 Total number of investments $114M Principal value mE IB ="B-Piece" investments $48M Carrying value $48M Net carrying value Vintage +e 100% a 5.6 yrs. W.A. remaining term") miNGh-investmentgrade = "B-Piece" investments eo 75% 3 Portfolio Activity & 50% crag ro) + Subsequent to Q
Slide 13: Investment Detail
INVESTMENT DETAIL Loan Portfolio 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 'Seniorloans Loan Jon-8 Hotel San Jose, CA 185 Floating Le 48% 53% Jon-23 62% 4 Loon2 Jun-19 Multifam
Slide 14: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Loan Portfolio (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 Loon 39 May-21 Multifamily Houston, TX 28 Floating L+3.0% 37% Jun-26
Slide 15: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Loan Portfolio (Cont'd) Origination Canying Coupon Cash Unlevered Extended Risk (At BRSP shore) date Collateral type City, State value type coupon all-in yield! __ maturity date" Lv ranking (Mezzanine loans Loan 76 * Dec-18 Multifamily Santa Clarita, CA $ 64 Fixed 7.0% Bee
Slide 16: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Net Lease Real Estate & Other Real Estate Origination Carrying @321 # of # of Rentable square WA W.A. lease (At BRSP share) date Collateral type City, State value NOL properties buildings feet ("RSF") %leased™ term (yrs) ‘Net lease real estate Net lease 1° Jul-18 Office St
Slide 17: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Diversified capital structure of primarily non-recourse debt and a 1.6x net debt-to-equity ratio. Embedded capacity under existing financing sources including an undrawn corporate revolver and $1.4B of repurchase facilities availability Key Financial Metrics Capital Structu
Slide 18: Capitalization Overview
CAPITALIZATION OVERVIEW Recourse vs. contractual i standing (At BRSP share) non-recourse™ terest rate™ debt (UPB) Corporate debt Corporate revolving credit facility Recourse Feb-23 L+ 2.25% 2.33% $ EI Investment-level debt Securitization bonds payable (2019-FL1) Non-recourse Aug-35, S+ 159% 1.76% 84
Slide 19: Benefiting from Low Rates
BENEFITING FROM LOW RATES BRSP's portfolio benefits from current low rate environment due to in-place LIBOR floors Y 99.7% of senior mortgage loan value is floating rate (indexed to one-month USD LIBOR) @) 62% of floating rate senior mortgage loan value is subject to a LIBOR floor of at least 50 bps
Slide 20: Appendix
APPENDIX Be BRIGHTSPIRE
Slide 21: 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 Eamings provides meaningful information to consider in addition to our net income and cash flow
Slide 22: Important Note Regarding Non-GAAP Financial Measures (Cont'd)
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS (CONT'D) NOI should not be considered as an altemative to net income (loss), determined in accordance with U.S. GAAP, as an indicator of operating performance. In addition, our methodology for calculating NOI involves subjective ju
Slide 23: 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, we re
Slide 24: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET September 30, 2021 (Unaudited) December 31, 2020 Assets Cash and cash equivalents $ 2087 $ 47437 Restticted cash 70,304 65,213 Loans and prefered equity held for investment 3,166,236 2,220,688 ‘Allowance for loan losses (42,730) (37,190) Loans and preferred equity held for
Slide 25: 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 (
Slide 26: Consolidated Statement of Operations by Segment
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT 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 operati
Slide 27: Outstanding Common Shares and OP Units
OUTSTANDING COMMON SHARES AND OP UNITS As of As of September 30, 2021 June 30, 2021 Class A common stock 129,759,132 129,759,132 OP units 3,075,623 3,075,623 Total common stock and OP units outstanding 132,834,755, 132,834,755. pe BRIGHTSPIRE CAPITAL 27
Slide 28: 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 Assets Loans and preferred equity held for investment, net Real estate securities, available for sale, at fair value Real estate, net Investments in unconsolidated ven
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 book value to undepreciated book value As of September 30, 2021 GAAP net book value (excluding noncontrolling interests in investment entities) $ 1,466,050 Accumulated depreciation and amortization” 128,044
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 loss to Distributable Earnings (Loss) Three Months Ended Net loss attributable to BrightSpire Capital, Inc. common stockholders Adjustments: Net loss attributable to noncontrolling interest of the Operating
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 income to NOI Net income attributable to BrightSpire Capital, Inc. common stockholders Adjustments: Net income attributable to noncontrolling interests in investment entities Amortization of above- and below
Slide 32: Footnotes
FOOTNOTES PANS n Amounts presented reflect total committed capital and include both closed and in-execution deals as of November 1, 2021 Based on GAAP gross carrying values; excludes cash and net assets and the impact of CECL reserves As of November 1, 2021 Net-debt-to-equity ratio based on BRSP's s
Slide 33: 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 34: BrightSpire Capital
BRIGHT SPIRE CAPITAL