Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Colony Credit Real Estate — Q1 2019 Earnings Presentation
28 slides from Brightspire Capital's earnings presentation, May 8, 2019
Slide 1: Supplemental Financial Report First Quarter 2019
Exhibit 99.2 Supplemental Financial Report First Quarter 2019 May 8, 2019 1Exhibit 99.2 Supplemental Financial Report First Quarter 2019 May 8, 2019 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: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS We present Core Earnings, which is a non-GAAP supplemental financial measure of our performance. We believe that Core Earnings provides meaningful information to consider in addition to our net income and cash flow from operating a
Slide 4: 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 following four reportable segments, which are based on how management reviews and manages its business: Loan Portfolio As
Slide 5: Table of Contents
TABLE OF CONTENTS Page I. Business Developments & Portfolio Highlights 6 II. Loan Portfolio 8 III. CRE Debt Securities 10 IV. Net Lease Real Estate 11 V. Other Real Estate 12 VI. Capitalization 13 VII. Appendix 15 5 5TABLE OF CONTENTS Page I. Business Developments & Portfolio Highlights 6 II. Loan P
Slide 6: I. Business Developments & Highlights
I. BUSINESS DEVELOPMENTS & HIGHLIGHTS § First quarter 2019 GAAP net income attributable to common stockholders of $14.9 million, or $0.11 per common share, and core earnings of $11.8 million, or $0.09 per diluted share. Excluding: (i) $35.5 million of realized losses related to completed foreclosure
Slide 7: I. Portfolio Highlights
I. PORTFOLIO HIGHLIGHTS ($ in thousands, unless otherwise stated; as of March 31, 2019; at CLNC share) (5) Overview Property type (7) Other (1) (2) $5.5 Billion Total At-Share Assets 11.0% Annual Dividend Yield 5% Retail 8% Office (3) (4) 46% Debt-to-Assets 0.9x Net-Debt-to-Equity (6) 35% Multifamil
Slide 8: II. Loan Portfolio Highlights
II. LOAN PORTFOLIO HIGHLIGHTS (As of March 31, 2019; at CLNC share) (5) Investment type Overview Preferred equity 12% (1) Total loan portfolio $2.7 billion Mezzanine Senior loans loans 16% 72% Total number of investments 74 (5) Property type Average loan size $36 million Industrial (6) Other 6% 8% H
Slide 9: II. Loan Portfolio Overview
II. LOAN PORTFOLIO OVERVIEW ($ in thousands; as of March 31, 2019; at CLNC share) Carrying Net carrying W.A. unlevered W.A. remaining W.A. extended Number of (1) (2) (3) (4) (5) investments value value all-in yield term (years) term (years) Floating rate Senior mortgage loans 43 $ 1,703,824 $ 678,09
Slide 10: III. CRE Debt Securities
III. CRE DEBT SECURITIES (As of March 31, 2019, unless otherwise stated; at CLNC share) (6) Overview Ratings Category B-Piece (1) Investments Principal value $519 million 37% BBB- (1) 56% Carrying value $384 million BB | B (2) 7% Net carrying value $185 million (6) Vintage (3) Number of investments
Slide 11: IV. Net Lease Real Estate
IV. NET LEASE REAL ESTATE ($ and square feet in thousands; as of March 31, 2019, unless otherwise stated; at CLNC share) Undepreciated Undepreciated W.A. % leased W.A. remaining Annualized Number of Rentable (3) carrying net carrying at end of lease term Q1 NOI (4) buildings square feet Q1 NOI (1) (
Slide 12: V. Other Real Estate
V. OTHER REAL ESTATE ($ and square feet in thousands; as of March 31, 2019, unless otherwise stated; at CLNC share) Undepreciated Undepreciated W.A. % leased W.A. remaining Q1 NOI / Annualized Q1 Number of Rentable carrying net carrying at end of lease term (3) (4) buildings square feet EBITDA NOI /
Slide 13: VI. Capitalization Highlights
VI. CAPITALIZATION HIGHLIGHTS (As of March 31, 2019, unless otherwise stated; at CLNC share) (4) Overview Capital structure CMBS credit facilities Total capitalization Securitization bonds $5.3 billion 4% (excluding cash) payable Corporate revolving 1% credit facility 4% (1) Total outstanding debt $
Slide 14: VI. Capitalization Overview
VI. CAPITALIZATION OVERVIEW ($ in thousands; as of March 31, 2019; at CLNC share) Recourse vs. W.A. extended W.A. contractual W.A. all-in Outstanding Maximum (1) (2) (2) (2)(3) (4) Non-recourse maturity interest rate COF debt (UPB) availability Corporate debt Corporate revolving credit facility $560
Slide 15: VII. Appendix
VII. APPENDIX 15VII. APPENDIX 15
Slide 16: Important Note Regarding Financial Statements
VII. IMPORTANT NOTE REGARDING FINANCIAL STATEMENTS Colony Credit Real Estate was formed on January 31, 2018, through the combination of a select commercial real estate debt and credit real estate portfolio of Colony Capital, Inc. (“Colony Capital Investment Entities”) with substantially all of the a
Slide 17: Consolidated Balance Sheet
VII. APPENDIX – CONSOLIDATED BALANCE SHEET (In thousands, except share and per share data; as of March 31, 2019 unless otherwise stated) March 31, 2019 (Unaudited) December 31, 2018 Assets $ 89,916 $ 77,317 Cash and cash equivalents Restricted cash 107,441 110,146 Loans and preferred equity held for
Slide 18: Consolidated Statements of Operations
VII. APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data; as of March 31, 2019 unless otherwise stated) (Unaudited) Three Months Ended March 31, 2019 2018 Net interest income Interest income $ 38,409 $ 36,139 Interest expense (19,292) (7,415) Interest income on mort
Slide 19: Consolidated Statements of Operations by Segment
VII. APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT (In thousands; as of March 31, 2019 unless otherwise stated) (Unaudited) Three Months Ended March 31, 2019 Loan CRE debt Net lease portfolio securities real estate Other Corporate Total Net interest income Interest income $ 34,518 $ 4,
Slide 20: Outstanding Common Shares and OP Units
VII. APPENDIX – OUTSTANDING COMMON SHARES AND OP UNITS On February 1, 2019, all Class B-3 common stock converted to Class A common stock (the “common stock”). As of May 6 2019, the Company had approximately 128.5 million shares of common stock outstanding and the Company’s operating partnership had
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Information
VII. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION ($ and shares in thousands, except per share data; as of March 31, 2019) (Unaudited) Reconciliation of GAAP total assets to CLNC share of total assets As of March 31, 2019 (1) (2) Consolidated NCI At CLNC share Cash and cash eq
Slide 22: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
VII. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) ($ and shares in thousands, except per share data; as of March 31, 2019 unless otherwise stated) (Unaudited) Reconciliation of GAAP net income to core earnings Three Months Ended March 31, 2019 Net income attributable
Slide 23: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
VII. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) ($ in thousands; as of March 31, 2019 unless otherwise stated) (Unaudited) Reconciliation of segment GAAP net income to core earnings Three Months Ended March 31, 2019 Loan CRE debt Net lease portfolio securities real
Slide 24: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
VII. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) ($ in thousands; as of March 31, 2019) (Unaudited) Reconciliation of GAAP net income/(loss) to NOI/EBITDA Three Months Ended March 31, 2019 Net lease Other real estate real estate Net income (loss) attributable to Colo
Slide 25: Footnotes
VII. APPENDIX – FOOTNOTES Page 6 1. The Company calculates Core Earnings per share, a non-GAAP financial measure, based on a weighted average number of common shares and OP units (held by members other than the Company or its subsidiaries). For the first quarter 2019, the weighted average number of
Slide 26: Footnotes (Cont'd)
VII. APPENDIX – FOOTNOTES (CONT’D) Page 11 1. Represents undepreciated carrying values at CLNC share as of March 31, 2019 2. Represents undepreciated carrying values net of any in-place investment-level financing at CLNC share as of March 31, 2019 3. Represents reported NOI for the first quarter 201
Slide 27: Footnotes (Cont'd)
VII. APPENDIX – FOOTNOTES (CONT’D) Page 22 1. Core Earnings reflects adjustments to U.S. GAAP net income to exclude impairment of real estate and provision for loan losses. Upon realization of the related investments, such impairment and losses, to the extent realized, would be reflected in Core Ear
Slide 28: Company Information
VII. COMPANY INFORMATION Colony Credit Real Estate, Inc. (NYSE: CLNC) is one of the largest publicly traded commercial real estate credit REITs, focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE senior mortgage loans, mezzanine loans, prefe
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