Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q3 2021 Earnings Presentation
24 slides from Brightspire Capital's earnings presentation, Nov 3, 2021
Slide 1: Exhibit 99.3
Exhibit 99.3
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements within the mecning 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 HIGHLIG BrightSpire Capital, Inc. (“BRSP" or the “Company’) is a large scale internally-managed commercial real estate credit REIT with a growing balance sheet De Bs PRIGHTSPIRE ous Veteran management team with proven track record Stable and growing portfolio of primarily senior loans and ne
Slide 4: Key Metrics Snapshot
KEY METRICS SNAPSHOT Diversified and growing $4.4 billion portfolio primarily comprised of senior loans and net lease assets New Originations (Since September 2020)! Number of Loans 69 Total At-Share Assets ($8) $44 (Undepreciated) x Senior mortgage loans Loan Total Committed Capital ($B) $2.1 Mezza
Slide 5: Accomplishments & Priorities
CCOMPLISHMENTS & PRIORITIES BRSP is executing on its business plan YTD 2021 Accomplishments Reinstated and Growing Dividend Reinstated dividend at $0.10/share for Q1'21 Increased dividend to $0.14/share for Q2'21 and to $0.16/share for @3'21 Increased dividend to $0.18/share for Q4'21 (80% growth si
Slide 6: Internalization Strategic Benefits
INTE ALIZATION — EGIC BENEFIT On April 30, 2021, BRSP completed an internalization of management and operating functions. The transaction enhances BRSP's positioning and produces meaningful cost savings COST SAVINGS THROUGH REDUCTION IN OPERATING EXPENSES Achieved run-rate cash G&A savings of $16M p
Slide 7: Dividend growth
• • • • • • • • • • • dividend growth since Q1’21 since Q3’20 since Q3’20
Slide 8: Significant New Originations Activity
SIGNIFICANT NEW ORIGINATIONS ACTIVITY Building quality earnings through the deployment of cash into first mortgages with a focus on multifamily and office in growth markets Convert Liquidity into New First Mortgage Collateral Diversification Region Diversification Loan Originations + $367M of liquid
Slide 9: Lending Market Update
LENDING MARKET UPDATE CRE Debt Market BRSP Investment Themes x) Economic recovery underway ) Lending into the path of growth x) Low interest rates support robust transaction Middle market focus volume and liquid financing markets $25 to $50 million average loan size Potential for rising rates favors
Slide 10: Total loan requests reviewed
Total loan requests reviewed: $[X]bn2
Slide 11: Current capital structure provides flexibility and support to drive growth
Current capital structure provides flexibility and support to drive growth and return on equity Capital Structure Access to Diverse and Efficient Financing Sources 61. Recourse debt Stockholders’ + Robust liquidity: $367M of total liquidity, $209M of cash® % 3% equity -to- dl ited) Denes (a pie ed)
Slide 12: Reducing the Trading Gap
EDUCING THE TRADING GAP Q3'21 book value of approximately $1.6 billion and BRSP is trading at over a $2 per share discount Trading Discount to Book Value Per Share Reducing the Discount Q3'21 Book Value $12.00 ~ Deploy Cash on Balance Sheet $2.06/share or ~$275M between current share dnvestnen: Rol
Slide 13: Results Summary
3 RESULTS SUMMARY ($ in millions, except where noted and per share data) Q2'21 Q3'21 %Change Investment Type % GAAP Net Loss $(19.7) $(70.1) ie Per Share $(0.15) $(0.54) _ Distributable Loss $(27.1) $(68.4) na. Per Share $(0.20) $(0.51) -_ Adjusted Distributable Earnings $27.0 $35.0 08 Total Per Sha
Slide 14: Portfolio Detail
3 PORTFOLIO DETAIL BRSP’s loan portfolio increased 33% year-over-year from $2.4 billion at Q3'20 to $3.2 billion driven by new senior loan originations Loan Portfolio Real Estate Portfolio NNN Other RE" Total Number of Investments 90 Total Number of Investments 9 3 Carrying Value $3.2B Carrying Valu
Slide 15: Investment Opportunity
INVESTMENT OPPORTUNITY Internalized structure and prudent balance sheet positions the Company on a path towards substantial earnings growth and shareholder value creation $0 POSITIONED FOR GROWTH + Internalized, transparent organizational model with dedicated employee base of over 50 professionals *
Slide 16: 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
Slide 17: Appendix
APPENDIX B Hy BRIG HTSPIRE
Slide 18: 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 measute of our performance, We believe that Distributable Earnings provides meaningful information to consider in addition to our net income and cash flo
Slide 19: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET September 30, 2021 (Unaudited) December 31, 2020 Assets ‘Cash and cash equivalents 8 poem $ wan Resticted cosh 70,304 65253 Loans and preferred equity held for investment 366236 2220,688 ‘Allowance for loan losses (42,730) (790, Loans and preferred equity held for investme
Slide 20: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS Throe Months Ended September 30, 2021 2020 Net interest income Interest income $ “7082 $ 36391 Interest expense (4,962) (13,426) Interest income on mortgage loans held in securitization trusts 10,805 20,462 Interest expense on mortgage obligations issued by secur
Slide 21: 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 September 30, 2021 ‘Consolidated new” 'ALBRSP shore™ Assets Loans and preferred equity held for investment, net $ 313506 $ = $ 323,508 Reol estate securities, av
Slide 22: Reconciliation of GAAP to Non-GAAP Financial Information
ECONCILIATION OF GAAP TO NON-GAAP FINANCIA INFORMATION 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” 128,064 Undepreciat
Slide 23: Reconciliation of GAAP to Non-GAAP Financial Information
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION Reconciliation of GAAP net loss to Distributable Earnings (Loss) Three Months Ended _September 30, 2021 Net loss attributable to BrightSpire Capital, Inc. common stockholders $ (70,087) Adjustments: Net loss attributable to noncontroliing inte
Slide 24: BrightSpire Capital
BRIGHT SPIRE CAPITAL