Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q2 2021 Earnings Presentation
24 slides from Brightspire Capital's earnings presentation, Aug 4, 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 conservative balance sheet poised for growth Be BRIGHTSPIRE DBD capitat (oe) Veteran management team with proven track insOxal record Stable and growing por
Slide 4: Key Metrics Snapshot
KEY METRICS SNAPSHOT Stable and growing $4.3 billion portfolio primarily comprised of senior loans and net lease assets with a conservative balance sheet Total At-Share Assets ($B) (Undepreciated) $4.3 Market Capitalization ($B)"” $1.2 Current Liquidity ($M)@*) $381 Adjusted Distributable Earnings (
Slide 5: Accomplishments & Priorities
CCOMPLISHMENTS & PRIORITIES BRSP continues to execute on its business plan YTD 2021 Accomplishments -) Reinstated Quarterly Dividend w/ Subsequent Increases Reinstated dividend at $0.10/share for QV'21 Increased dividend to $0.14/share for Q2'21 (40% QoQ growth) Increased dividend to $0.16/share for
Slide 6: Internalization: Strategic Benefits
INTE ALIZATION — EGIC BENEFIT On April 30, 2021, BRSP completed an internalization of management and operating functions. The transaction is expected to enhance BRSP’s positioning and produce meaningful results COST SAVINGS THROUGH REDUCTION IN OPERATING EXPENSES On track to achieve cost savings of
Slide 7: Dividend growth
• • • • • • • • • • dividend growth since Q1’21 since Q2’20 since Q2’20
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 ee ———————— * $38
Slide 9: Lending Market Update
LENDING MARKET UPDATE CRE Debt Market BRSP Investment Themes . G) Lending into the path of growth G) Economic recovery underway Middle market focus G) Volatility in treasuries and potential for rising | rates favors floating rates “is F $25 to $50 million average loan size Y) Multifamily, industrial
Slide 10: Total loan requests reviewed
Total loan requests reviewed: $[X]bn2
Slide 11: Current capital structure provides flexibility and support to drive growth and return on equity
UR Current capital structure provides flexibility and support to drive growth and return on equity Capital Structure Access to Diverse and Efficient Financing Sources Recourse debt + Robust liquidity: $381M of total liquidity, $221M of cash” 57% 6% Stockholders’ Debt-to- equity sect ratio (undepreci
Slide 12: Reducing the Trading Gap
EDUCING THE TRADING GAP Q2'21 book value of approximately $1.7 billion and BRSP is trading at a $3 per share discount Trading Discount to Book Value Per Share Reducing the Discount Q2'21 Book Value == 7 $12.66 2) Deploy Cash on Balance Sheet ~$3/share or ~$440M between current share price and book v
Slide 13: Results Summary
2 RESULTS SUMMARY ($ in millions, except where noted and per share data) Qt121 Q2'21_ %Change Investment Type % GAAP Net Loss $(92.3) $(19.7) ie Per Share $(0.71) $(0.15) nc Distributable Earnings / (Loss) $13.8 $(27.1) na. Per Share $0.10 $(0.20) a Adjusted Distributable Earnings $18.0 $27.0 Soe To
Slide 14: Portfolio Detail
2 PORTFOLIO DETAIL Total loan portfolio increased 16% year-over-year from $2.5 billion at Q2'20 to $2.9 billion as a result of new senior loan originations Loan Portfolio Real Estate Portfolio NNN Other RE” Total Number of Investments 75 Total Number of Investments 9 3 Carrying Value $2.9B Carrying
Slide 15: Investment Opportunity
INVESTMENT OPPORTUNITY Internalized structure and strong balance sheet positions the Company on a path towards substantial earnings growth and shareholder value creation $Y POSITIONED FOR GROWTH Internalized, transparent organizational model with dedicated employee base of over 50 professionals Liqu
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 D Bs orichrseine
Slide 18: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS We present Distributable Eamings, which is @ non-GAAP supplemental financial measure of our performance. We believe that Distributable Earnings provides meaningful information to consider in adlition to our net income ‘and cosh flo
Slide 19: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Assets ‘Cash and cash equivalents Restricted cosh Loans and prefetred equity held for investment Allowance for loon losses Loans and preferred equity held for investment, net Real estate securities, available for sale, ot fair value Real estate, net Investments in unconsol
Slide 20: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS “2020 Net interest income Interest income. $ 19m $ 395508 Interest expense (12.993) 16,745), Interest income on mortgage loans held in securitization trusts 11390 20.539 Interest expense on mortgage obligations issued by securitization trusts fo. (08,364) Net int
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 June 30, 2021 Consolidated nei" At BRSP share” Assets: Loans and preferred equity held for investment, net $ 2,810,783 $ =s 2,810,783 Real estate securities, ava
Slide 22: Reconciliation of GAAP to Non-GAAP Financial Information
ECONCILIATION OF GAAP INFORMATION NON-GAAP FINANCIA Reconciliation of GAAP net book value to undepreciated book value ‘As of June 30, 2021 ‘GAAP net book value (excluding noncontroling interests in investment entities) $ 160,31 Accumulated depreciation and amortization" 121254 Undepreciated book val
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 June 30, 2021 Net loss attributable to BrightSpire Capital, Inc. common stockholders $ (09.720) Adjustments: Net loss attributable to noncontrolling interest o
Slide 24: BrightSpire Capital
BRIGHT SPIRE CAPITAL