Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q1 2023 Earnings Presentation
23 slides from Brightspire Capital's earnings presentation, May 3, 2023
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 meaning of the federal securities laws. Forwarcl-looking statements relate to expectations, belie's, projections, future plans and strategies, anticipated events or trends an
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 De Bs PRIGHTSPIRE (@M@— Transparent organizational model led by veteran Simple strategy focused on current and predictable insOxa)
Slide 4: Key Metrics Snapshot
KEY METRICS SNAPSHOT Diversified $4.8 billion portfolio primarily comprised of senior loans and net lease assets Investment Portfolio?) Loan Portfolio) Total Number of Investments 100 Total Assets ($B) $4.8 & 4 (Undepreciated) mSenior mortgage loans, _ Total Carrying Value ($8) $3.4 Portfolio mMezza
Slide 5: Accomplishments & Priorities
CCOMPLISHMENTS & PRIORITIES BRSP is well positioned to navigate the changing market environment Recent Accomplishments 2023 Priorities Strong Earnings Actively Manage Portfolio While Maintaining Ample Q1'23 Adjusted Distributable Earnings of $0.27/share (23% YoY growth) Liquidity Fully Covered Divid
Slide 6: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO $3.4 billion loan portfolio consisting of 96% floating rate senior loans and 49% multifamily exposure Loan Portfolio Exposure" Property Type Mix — Predominantly Multifamily” Senior Loans Subordinate Debt Loan Portfolio $3.48 32 = Multifamily \ = Office 100% = Hotel Sx = Mi
Slide 7: Loan Portfolio Risk Profile
LOAN PORTFOLIO RISK PROFILE Granular portfolio with minimal concentration risk, average loan size of $34 million and a risk ranking of 3.2 Loan Size - Diversified Risk Concentration" Transition - Reduced Risk Profile" mAs of Q122 mAs of Q123 37% 27% 20% 0% 17% weet om 2*_, 51% >$50M LOAN SIZE DEVELO
Slide 8: Lending Market Overview
LENDING MARKET OVERVIEW CRE Debt Market Update BRSP Investment Strategy Slowdown in CRE transaction volumes continues G) Middle market focus, value-add business plans given macroeconomic environment $25 to $50 million average loan size * Cap rates slowly moving upwards yet lagging rise in interest r
Slide 9: Middle Market Focus
MIDDLE MARKET FOCUS Lending in the largest and fastest growing markets in the nation to trusted partners Originating in Growth Markets with Repeat Sponsors"! Focusing on Middle Market?) $201+ Total CRE Market 77% Top 25 MSAs sateaitas PO% Transaction size ° 87% _ _ _ < $100M D 75> MSAs with above av
Slide 10: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Diversified and conservative capital structure with a 2.0x debt-to-equity ratio Capital Structure" Access to Diverse and Efficient Financing Sources + $424M of total liquidity, $259M of cash?) 2.0x Debt-to- equity ratio + Moderate leverage ratios with embedded financing cap
Slide 11: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY BRSP's loan portfolio is 97% floating rate, of which 100% of senior mortgage value is floating rate Annual Net Interest Income Sensitivity to Changes in Benchmark Rates — Total Portfolio LIBOR: 4.86% | SOFR: 4.80% (As of March 31, 2023) $5.0 $4.0 $0.0 ($0.06) per share s ($
Slide 12: Results Summary
1 RESULTS S ARY (Sin millions, except where noted and per share data) Qi'23 Q4'22. % Change _ Investment Type % GAAP Net Income (Loss) $(4.1) $4.2 na Per Share $(0.03) $0.03 i Distributable Earnings (Loss) $(11.5) $34.2 na. Per Share $(0.09) $0.27 aa Adjusted Distributable Earnings $34.5 $35.0 _ Per
Slide 13: Portfolio Detail
PORTFOLIO DETAIL Loan Portfolio Real Estate Portfolio NNN Other RE Total Number of Investments 100 Total Number of Investments 8 2 Undepreciated Carrying Value / $707M / $213M / Conisihig Welt 48 Carrying Value $589M $159M Average Loan Size $34M Rentable Square Feet 5.1M 1.3M W.A. % Leased / 100% /
Slide 14: Investment Opportunity
INVESTMENT OPPORTUNITY Internalized structure and diversified balance sheet with minimal concentration risk and lower leverage profile positions the Company to navigate current market environment $Y INTERNALLY MANAGED & VETERAN MANAGEMENT TEAM + Internalized, transparent organizational model with de
Slide 15: 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 16: Appendix
APPENDIX B 5 SRicHTsPIRE
Slide 17: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS We present Distributable Eamings, 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 flow
Slide 18: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET March 31, 2023 (Unaudited) December 31,2022 Assets ‘Cash and cash equivalents $ 313.520 $ 306,320, Restricted cash 80,023 92,508 Loans and preferred eauity held for investment 3,494,895 3574,989 Current expected credit loss reserve (148836) (106,267) Loans and preferred eq
Slide 19: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS ‘Three Months Ended March 31 1023 22 Net interest income Interest income $s 756 44,570 Interest expense (42,662) 06,072) Interest income on mortgage loans held in securitization trusts - 9,375 Interest expense on mortgage obligations issued by securitization tust
Slide 20: 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 Realestate, net Deferred leasing costs and intangible assets, net Cash, restricted cash, receivables and oth
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
ONCILIATION OF GAAP INFORMATION (CONT'D) NON-GAAP FINANCIA Reconciliation of GAAP net book value to undepreciated book value As of March 31, 2023 GAAP net book value (excluding noncontrolling interests in investment entities) $ 1,353,418 Accumulated depreciation and amortization” Undepreciated book
Slide 22: 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 Loss and Adjusted Distributable Earnings Three Months Ended Net loss attributable to BrightSpire Capital, nc. common stockholders Adjustments: Non-cash equity compensation expense 2295
Slide 23: BrightSpire Capital
BRIGHT SPIRE CAPITAL