Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q2 2020 Earnings Presentation
37 slides from Brightspire Capital's earnings presentation, Aug 6, 2020
Slide 1: Supplemental Financial Report Second Quarter 2020
Supplemental Financial Report Second Quarter 2020 August 6, 2020 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: Company Highlights
ColonyCredit REAL ESTATE COMPANY HIGHLIGHTS
Slide 4: Second Quarter Company Highlights
SECOND QUARTER COMPANY HIGHLIGHTS $525M $4.7B $14.43 1.4x Total Liquidity(1) Total At-Share Assets(2) Book Value Per Share(3) Net-Debt-to-Equity Ratio(4) • Net loss of $(227.1) million or $(1.77) per share and Total Core/LNS Earnings (Loss) of $(230.5) million or $(1.75) per share • Total Core/LNS E
Slide 5: Second Quarter Significant Developments
SECOND QUARTER SIGNIFICANT DEVELOPMENTS CLNC generated liquidity, further solidified the balance sheet and improved positioning for future opportunities Asset Sales • Core Portfolio • Sold one preferred equity interest collateralized by a portfolio of operating intensive properties for $98 million o
Slide 6: Second Quarter Book Value Bridge
SECOND QUARTER BOOK VALUE BRIDGE In aggregate, events during the quarter resulted in a book value reduction of $1.69 per share Undepreciated Book Value Adjustments(1) $17.00 $16.12 ($0.68) ($0.73) $15.00 ($0.53) $0.25 $14.43 $13.00 $11.00 $9.00 Undepreciated BVPS LA Mixed-Use Other Impairments / Non
Slide 7: Balance Sheet Summary
BALANCE SHEET SUMMARY ($ in thousands, unless otherwise stated; as of June 30, 2020; at CLNC share) Company Overview Portfolio Overview Number of Carrying Net carrying (1 ) (4) Per Share (1) investments value value $4.7 billion Total at-share assets Core Portfolio Senior mortgage loans 35 $ 2,136,27
Slide 8: Core Portfolio
ColonyCredit REAL ESTATE CORE PORTFOLIO
Slide 9: Core Portfolio – Overview
CORE PORTFOLIO – OVERVIEW ($ in thousands, unless otherwise stated; as of June 30, 2020; at CLNC share) Portfolio Summary Investment Type(2) Property Type(2) Total number of Preferred equity CRE debt Other / 81 investments & other loans(3) securities mixed-use(4) 4% 4% 6% Mezzanine Hotel (1) loans 1
Slide 10: Core Portfolio – Loans & Preferred Equity Portfolio Overview
CORE PORTFOLIO – LOANS & PREFERRED EQUIT Y PORTFOLIO OVERVIEW (As of June 30, 2020; at CLNC share) Overview Investment Type(5) Preferred equity & other loans 6% 51 Total number of investments Mezzanine loans 9% (1) $2.5 billion Total loans & preferred equity Senior mortgage loans 85% $49 million Ave
Slide 11: Core Portfolio – Loans & Preferred Equity Portfolio Overview (Cont'd)
CORE PORTFOLIO – LOANS & PREFERRED EQUIT Y PORTFOLIO OVERVIEW (CONT’D) ($ in thousands; as of June 30, 2020; at CLNC share) Number of Carrying Net carrying W.A. unlevered W.A. remaining W.A. extended (1) (2) (3) (4) (5) investments value value all-in yield term (years) term (years) Floating rate Sen
Slide 12: Core Portfolio – CRE Debt Securities
CORE PORTFOLIO – CRE DEBT SECURITIES (As of June 30, 2020, unless otherwise stated; at CLNC share) Overview Ratings Category(5) (1) 24 Total number of investments "B-Piece" Investments BBB- 58% 36% (2) $285 million Principal value BB | B (2) 6% $142 million Carrying value Vintage(5) (3) $103 million
Slide 13: Core Portfolio – Net Lease Real Estate
CORE PORTFOLIO – NET LEASE REAL ESTATE ($ and square feet in thousands; as of June 30, 2020, unless otherwise stated; at CLNC share) Rentable W.A. % leased W.A. remaining Number of Number of Carrying Net carrying (3) Annualized square feet (1) (2) Q2'20 NOI (4) at end of lease term investments prope
Slide 14: Core Portfolio – Investment Detail
CORE PORTFOLIO – INVESTMENT DETAIL ($ in millions; as of June 30, 2020; at CLNC share) Core Portfolio – loans & preferred equity portfolio Origination Carrying Coupon Cash Unlevered Extended Risk (1 ) (2) (3) (4 ) date Collateral type City, State value type coupon all-in yield maturity date LTV rank
Slide 15: Core Portfolio – Investment Detail (Cont'd)
CORE PORTFOLIO – INVESTMENT DETAIL (CONT’D) ($ in millions; as of June 30, 2020; at CLNC share) Core Portfolio – loans & preferred equity portfolio (cont’d) Origination Carrying Coupon Cash Unlevered Extended Risk (1 ) (2) (3) (4 ) date Collateral type City, State value type coupon all-in yield matu
Slide 16: Core Portfolio – Investment Detail (Cont'd)
CORE PORTFOLIO – INVESTMENT DETAIL (CONT’D) ($ in millions; rentable square feet in thousands; as of June 30, 2020; at CLNC share) Core Portfolio – net lease real estate Origination Carrying Annualized # of # of Rentable square W.A. W.A. lease ( 1) ( 2) ( 3) (4 ) date Collateral type City, State val
Slide 17: Legacy, Non-Strategic Portfolio
LEGACY, NON-STRATEGIC PORTFOLIO 17
Slide 18: Legacy, Non-Strategic – Portfolio Overview
LEGACY, NON-STRATEGIC – PORTFOLIO OVERVIEW ($ in thousands, unless otherwise stated; as of June 30, 2020; at CLNC share) Portfolio Summary Investment Type(2) Property Type(2) Total number of Senior 43 investments PE interests Preferred equity(3) Other(5) mortgage loans 2% <1% Hotel 5% 2% Mezzanine l
Slide 19: Capitalization
ColonyCredit REAL ESTATE CAPITALIZATION
Slide 20: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS (As of June 30, 2020, unless otherwise stated; at CLNC share) Overview Capital Structure(4) Other debt(6) $4.6 billion Total capitalization Corporate revolving 2% CMBS credit facilities (excluding cash) credit facility 1% 4% (1) $2.8 billion Total outstanding debt Master re
Slide 21: Capitalization Overview
CAPITALIZATION OVERVIEW ($ in thousands; as of June 30, 2020; at CLNC share) Recourse vs. W.A. extended W.A. contractual W.A. all-in Outstanding (1) (2) (2) (2)(3) (4) Non-recourse maturity interest rate COF debt (UPB) Corporate debt Corporate revolving credit facility Recourse Feb-23 L + 2.25% 2.41
Slide 22: Appendix
ColonyCredit REAL ESTATE APPENDIX
Slide 23: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS We present Core Earnings/Legacy, Non-Strategic (“LNS”) Earnings, which are non-GAAP supplemental financial measures of our performance. Our Core Earnings are generated by the Core Portfolio and Legacy, Non-Strategic Earnings are ge
Slide 24: Important Note Regarding Non-GAAP Financial Measures and Definitions (Cont'd)
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS (CONT’D) The Company presents pro rata (“at share” or “at CLNC share”) financial information, which is not, and is not intended to be, a presentation in accordance with GAAP. The Company computes pro rata financial information by a
Slide 25: 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 reportable segments below, which are based on how management reviews and manages its business. Each segment also includes
Slide 26: Appendix – Consolidated Balance Sheet
APPENDIX – CONSOLIDATED BALANCE SHEET (In thousands, except share and per share data; as of June 30, 2020 unless otherwise stated) June 30, 2020 (Unaudited) December 31, 2019 Assets Cash and cash equivalents $ 437,951 $ 69,619 Restricted cash 84,011 126,065 Loans and preferred equity held for invest
Slide 27: Appendix – Consolidated Statements of Operations
APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data; as of June 30, 2020, unless otherwise stated) (Unaudited) Three Months Ended June 30, 2020 2019 Net interest income Interest income $ 39,508 $ 42,073 Interest expense (16,745) (21,046) Interest income on mortgage
Slide 28: Appendix – Consolidated Statements of Operations by Segment
APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT ($ in thousands; as of June 30, 2020) (Unaudited) Three Months Ended June 30, 2020 Core Portf olio Loans and Legacy, Non- pref erred CRE debt Net lease Total Core Strategic equity securities real estate Corporate Portf olio Portf olio Tot a
Slide 29: Appendix – Outstanding Common Shares and OP Units
APPENDIX – OUTSTANDING COMMON SHARES AND OP UNITS As of As of June 30, 2020 March 31, 2020 Class A common stock 128,583,198 128,366,427 OP units 3,075,623 3,075,623 Total common stock and OP units outstanding 131,658,821 131,442,050 29 29
Slide 30: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (In thousands, except per share data; as of June 30, 2020) (Unaudited) Reconciliation of consolidated balance sheet to at CLNC share balance sheet As of June 30, 2020 Total Core Portfolio Legacy, Non-Strategic Portf olio (1) (2) (1)
Slide 31: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) (In thousands, except per share data; as of June 30, 2020) (Unaudited) Reconciliation of GAAP net book value to undepreciated book value As of June 30, 2020 Legacy, Non-Strategic Total Portfolio Core Portfolio GAAP net book
Slide 32: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) (In thousands, except per share data; as of June 30, 2020) (Unaudited) Reconciliation of GAAP net income (loss) to Core Earnings (Loss)/LNS Earnings (Loss) Three Months Ended June 30, 2020 Legacy, Non-Strategic Total Portfo
Slide 33: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) ($ in thousands; as of June 30, 2020) (Unaudited) Reconciliation of GAAP net income (loss) to NOI/EBITDA Three Months Ended June 30, 2020 Core Portfolio Legacy, Non-Strategic Portfolio Net lease Other Total Core Net lease O
Slide 34: Appendix – Footnotes
APPENDIX – FOOTNOTES Page 4 1. Represents cash-on-hand and availability under the corporate revolving credit facility as of 8/5/20 2. Represents CLNC share as of 6/30/20. This includes noncontrolling interests in the Operating Partnership (“OP”) and excludes noncontrolling interests in investment en
Slide 35: Appendix – Footnotes (Cont'd)
APPENDIX – FOOTNOTES (CONT’D) Page 10 (Cont’d) 5. Based on carrying values at CLNC share as of 6/30/20 6. Other / mixed-use includes: (i) commercial and residential development and predevelopment and (ii) mixed-use assets Page 11 1. Represents carrying values at CLNC share as of 6/30/20 2. Represent
Slide 36: Appendix – Footnotes (Cont'd)
APPENDIX – FOOTNOTES (CONT’D) Page 16 1. Represents carrying values at CLNC share as of 6/30/20 2. Represents annualized reported NOI for the second quarter 2020 at CLNC share 3. Represents the percent leased as of 6/30/20 and is weighted by carrying value at CLNC share as of 6/30/20 4. Based on in-
Slide 37: Company Information
COMPANY INFORMATION Colony Credit Real Estate (NYSE: CLNC) is 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 properties predomi