Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q4 2021 Earnings Presentation
33 slides from Brightspire Capital's earnings presentation, Feb 22, 2022
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 & $5.0B $1.9B Growi late] Total At-Share Assets New Senior Loan ; (Undepreciated) Originations Portfolio During 2021" 92%
Slide 4: Fourth Quarter & Subsequent Events Update
FOURTH QUARTER & SUBSEQUENT EVENTS UPDATE * Net income of $81.0 million, or $0.63 per share, and Distributable Earnings of $22.9 million, or $0.17 per share FINANCIAL * Adjusted Distributable Earnings of $36.1 million, or $0.27 per share RESULTS * GAAP net book value of $11.22 per share and undeprec
Slide 5: Financial Overview
FINANCIAL OVERVIEW ‘ey Financial Metrics Ca GAAP Net Income ($M) $81.0 - Per Share $0.63 ™ Stockholders’ equity (undepreciated) = Securitization bonds payable (non-recourse) Distributable Earnings ($M) $22.9 Total Per Share $0.17 capitalization = Master repurchase facilities (limited recourse) $4.88
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net carrying value as of December 31, 2021 Investment Carrying Net carrying (At BRSP share) count value value Per share Senior mortgage loans a $ 3,366 $ 885 $ 6.66 = Loan portfolio Mezzanine loans 6 ng 118 0.89 ™Net lease & other r
Slide 7: Loan Portfolio
LOAN PORTFOLIO Total number of investments $3.5B Total loans & preferred equity of $36M Average investment size . 1.7 yrs. W.A. remaining term” 3.6 yrs. W.A. extended remaining term") 4.9% W.A. unlevered all-in yield") 3.1 W.A. risk ranking Senior mortgage loans 100% of senior loans are floating rat
Slide 8: Loan Portfolio (Cont'd)
LOAN PORTFOLIO (CONT'D) Collateral Type Number of Carrying % of carrying (At BRSP share) investments value value Multifamily 60 $ 1,809,818 52% Office 29 1,160,548 33% Hotel 6 437,873 13% Other / mixed-use” 2 75,686 2% Industrial 1 16,200 <1% Total 98 $ 3,500,125 CECL reserves (35,779) Total - Net o
Slide 9: Loan Portfolio (Cont'd)
LOAN PORTFOLIO (CONT'D) Number of (At BRSP share) Lkcauteus Floating rate Senior mortgage loans 7 $ 3,366,300 Mezzanine loans 1 12,120 Total / W.A. floating rate 92 3,378,420 Fixed rate Mezzanine loans 5 105,505 Preferred equity” 1 16,200 Total / W.A. fixed rate 6 121,705 Total / W. 98 CECL reserves
Slide 10: Net Lease Real Estate & Other Real Estate
NET LEASE REAL ESTATE & OTHER REAL ESTATE Rentable fs . , . W.A. % leased | W.A. remaining _Number of BRSP Laatste Carrying %ofeanying | Net carrying Q4'21NOL Bees peseea investments | ownership % | jo sew value value value (at BRSP share) “iy 8) (At BRSP share) ("RSF") & Keys period! (years) Net le
Slide 11: Investment Detail
INVESTMENT DETAIL Loan Portfolio Origination Carrying ‘Coupon Cash Unlevered Extended Risk (At BRSP share) date Collateral type City, State value type coupon alin yield" maturity date" LTV ranking ‘Senior loans loan 1 Jan-18 Hotel San Jose, CA 185 Floating Lr 48% 5.3% Nov-26 74% 4 Loan 2 Jun-19 Mult
Slide 12: 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 Loan 4 May-21 Multifamily Dallas, Tx 30 Floating Ls 3.4% 40% May-26 6
Slide 13: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Loan Portfolio (Cont'd) Origination Carrying Coupon Cash Unlevered Extended Risk (At BRSP shore) date Collateral type City, State value type coupon all-in yield’ _ maturity date Liv ranking Loan 81 Aug-21 Office Los Angeles, CA 74 Floating + 5.0% 57% Sep-26 66% 3 Loan 82 F
Slide 14: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Net Lease Real Estate & Other Real Estate Origination Carrying ean Hof Hof Rentable square WA. WA. lease (At BRSP share) date Collateral type City, State value NOI properties feet ("RSF") % leased” term (yrs)"? Net lease real estate Net lease 1* Jul-18 Office Stavenger,Now
Slide 15: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Diversified capital structure of primarily non-recourse debt and a 1.9x debt-to-equity ratio. Embedded capacity under existing financing sources including an undrawn corporate revolver and $0.9B of repurchase facilities availability Key Financial Metrics Capital Structure T
Slide 16: Capitalization Overview
CAPITALIZATION OVERVIEW Recourse vs. (At BRSP share) no : debt (UPB) Corporate debt Corporate revolving credit facility Recourse Feb-23 L+2.25% 2.35% $ - Investment-level debt Master repurchase facilities Limited recourse May-23 L+185% 2.23% 905,122 Securitization bonds payable (2019-FL1) Non-recour
Slide 17: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY Rotating into lower benchmark floors, positioning BRSP’s portfolio for a rising rate environment a) 100% of senior mortgage loan value is floating rate 2) W.A. benchmark floor of approximately 88 bps across senior mortgage loans, down from 185 bps at Q4'20 ) 51% of floating
Slide 18: Appendix
APPENDIX Be BRIGHTSPIRE
Slide 19: 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 flow from operating activities determined in accordance with U.S. GAAP,
Slide 20: Important Note Regarding Non-GAAP Financial Measures and Definitions (Cont'd)
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS (CONT'D) NOI should not be considered as an alternative 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 j
Slide 21: 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 22: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET December 31, 2021 December 31, 2020 Assets Cash and cash equivalents $ 259,722 $ 474,817 Restricted cash 86,841 65,213 Loans and preferred equity held forinvestment 3,485,607 2,220,688 Allowance for loan losses (36,598) (37,19) Loans and preferred equity held for investmen
Slide 23: 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 24: 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 25: 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 26: Outstanding Common Shares and OP Units
OUTSTANDING COMMON SHARES AND OP UNITS As of As of December 31, 2021 September 30, 2021 Class A common stock 129,769,365, 129,759,132 OP units 3,075,623 3,075,623 Total common stock and OP units outstanding 132,844,988 132,834,755, B@ BRIGHTSPIRE CAPITAL 26
Slide 27: 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 December 31, 2021 Consolidated NcI2) At BRSP share”) Assets Loans and preferred equity held for investment, net $ 3,449,009 $ - $ 3,449,009 Real estate, net 783,
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP 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"?! Undepreciated book value GAAP net book value per shar
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 income (loss) to Distributable Earnings (Loss) Three Months Ended Year Ended December 31,2021__ December 31, 2021 Net income (loss) attributable to BrightSpire Capital, Inc. commen stockholders $ 81045 $ (10
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 income (loss) to NOI Net income (loss) attributable to BrightSpire Capital, Inc. common stockholders Adjustments: Net income (loss) attrilutable to noncontrolling interests in investment entities Amortizatio
Slide 31: Footnotes
FOOTNOTES PANS a Amounts presented reflect total committed capital and include both closed and in-execution deals where applicable; as of February 17, 2022 Based on GAAP gross carrying values; excludes cash and net assets and the impact of CECL reserves As of February 17, 2022 Debt-to-equity ratio b
Slide 32: 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 33: BrightSpire Capital
BRIGHT SPIRE CAPITAL