Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q2 2022 Earnings Presentation
33 slides from Brightspire Capital's earnings presentation, Aug 3, 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, diversified and internally-managed commercial real estate credit REIT $5.3B $3.8B Total At-Share Assets Total Loan (Undepreciated) Portfolio Stable & Diversified Portfolio *T10 total loans, $35M average size + A
Slide 4: Second Quarter & Subsequent Events Update
SECOND QUARTER & SUBSEQUENT EVENTS UPDATE Net income of $34.3 million, or $0.26 per share Distributable Earnings and Adjusted Distributable Earnings of $31.4 million, or $0.24 per share FINANCIAL RESULTS GAAP net book value of $11.26 per share and undepreciated book value of $12.42 per share Repurch
Slide 5: Financial Overview
FINANCIAL OVERVIEW Capital Structure GAAP Net Income ($M) $34.3 - 4 Per Share $0.26 ™ Stockholders’ equity (undepreciated) ™ Master repurchase facilities (limited recourse) Distributable Earnings ($M) $31.4 Total Per Share $0.24 6, capitalization = Securitization bonds payable (non-recourse) »\ $5.1
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net carrying value as of June 30, 2022 Investment Carrying Net carrying (At BRSP share) count value value Per share Loan portfolio Senior mortgage loans 104 $ 3,730 $ 842 $ 6.53 Mezzanine loans 6 104 104 0.81 ™Net lease & other real
Slide 7: Loan Portfolio Highlights
LOAN PORTFOLIO HIGHLIGHTS $306M $34M 6.0% 100% 70% Total commitments Average loan size WA. unlevered % floating rate WA, loan-to-value (total commitments) in yield") (senior loans only) (senior loans only) Loan Portfolio Activity 10% YTD loan growth 27% YoY loan growth Total Loan Rey ments Total Loa
Slide 8: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW Total number of investments $3.8B Total loan portfolio $35M Average investment size 1.4 yrs. W.A. remaining term") ‘Southwest 3.5 yrs. W.A. extended remaining term™! 33% 5.9% W.A. unlevered all-in yield" 3.1 W.A. risk ranking Senior mortgage loans 9, F 100% of senior loans ar
Slide 9: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Collateral Type Region Exposure as a % of Carrying Value Piet eel Bunbenst = Eaming «= atoning West | eertinert | Nontient: eouhenet Multifamily 67 $ 2,003,363 52% 21% 27% 1% 3% Office 32 1,238,136 32% 13% 6% 10% 3% Hotel 5 418,599 1% 1% - 0% - Mixed-use 4 148,186 4% -
Slide 10: Loan Portfolio Summary
LOAN PORTFOLIO SUMMARY W.A. unlevered all-in yiela™ Number of estments W.A. extended term (years)? Net carrying value (At BRSP share) WeIO sanving yoke Floating rate Senior mortgage loans 104, $ 3,729,515 97% $ 842,039 5.7% 35 Mezzanine loans 1 12,120 0% 12,120 12.8% 0.2 Total / W.A. floating rate 1
Slide 11: Net Lease Real Estate & Other Real Estate Summary
NET LEASE REAL ESTATE & OTHER REAL ESTATE SUMMARY Number of BRSP Rentable Conv cant co ; a222No1 | WA: %leased | W.A. remaining _Number of 2 acuicie test carrying pe otearyieg: lat Carin, at end of lease term investments | ownership % | once value value value {at BRSP share) 05) 16) (At BRSP share)
Slide 12: Investment Detail
INVESTMENT DETAIL Loan Portfolio ori Carrying Coupon Cash Unlevered Extended Risk (At BRSP share) date Collateral type City, State value type coupon all-inyield™ __ maturity date™! uv. ranking [Senior loans Loan 1 Jon-18 Hotel San Jose, CA $ 185 Floating Ls 48% 65% Nov-26 19% 4 Loan 2 Jun-19 Multifa
Slide 13: 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-inyield™ __ maturity date™! uv. ranking [Senior loans Loan 41 Apr-22 Office San Jose, CA 33 Floating SHA.2% 63% Apr-27 70
Slide 14: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Loan Portfolio (Cont'd) Carrying ‘Coupon ‘Cosh Unlevered Extended Risk (At BRSP share) date Collateral type. City, State value type coupon, all-in yield" __ maturity date uv ranking [Senior loans Loan 81 Jon-22 — Multifarnily Austin, TX 19 Floating $+ 3.4% 55% Feb-27 78% 3
Slide 15: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Net Lease Real Estate & Other Real Estate Undepreciated a22 Hof #of —-Rentablesquare = WA. W.A lease (At BRSP share) Collateral type __City, State carrying value value NOL properties buildings feet ("RSF") % leased" term (yrs) Net lease real estate Net lease 1" JuH8 Office
Slide 16: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Diversified capital structure of primarily non-recourse debt and a 2.2x debt-to-equity ratio. Embedded capacity under existing financing facilities including an undrawn corporate revolver and $712M of repurchase facilities availability Key Financial Metrics Capital Structur
Slide 17: Capitalization
CAPITALIZATION (At BRSP share) SUMMARY xtended contractual fhe maturity”? interest rate” Recourse vs. non-recourse Corporate debt Corporate revolving credit facility Investment-level debt Master repurchase facilities Securitization bonds payable (2019-FL1) Securitization bonds payable (2021-FL1) Mor
Slide 18: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY BRSP'’s portfolio is positioned to benefit in a rising rate environment a) 100% of senior mortgage loan value is floating rate 2) 79% of floating rate senior mortgage loan value is indexed to one-month USD LIBOR and 21% to SOFR nual Net Interest Income Sensit ity to Changes
Slide 19: Appendix
APPENDIX Be BRIGHTSPIRE
Slide 20: Note Regarding Non-GAAP Financial Measures: Distributable Earnings
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 21: 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 22: 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. Senior and Mezzanine Loans and Preferred
Slide 23: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Assets ‘Cash and cash equivalents Restricted cash Loans held for investment Current expected credit loss reserve Loans held for investment, net Real estate, net Receivables, net Deferred leasing costs and intangible assets, net Assets held for sale Other assets ($4,406 and
Slide 24: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS ‘Three Months Ended June 30, 2022 2021 Net interest income Interest income $ 53,083 $ 37921 Interest expense (21,455) (2,993) Interest income on mortgage loans held in securitization trusts 9721 11,390 Interest expense on mortgage obligations issued by securitiza
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 June 30, 2022 March 31, 2022 Class A common stock 128,964,934 129,633,136 OP units = 3,075,623 Total common stock and OP units outstanding 128,964,934 132,708,759 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 share balance sheet Assets Loans held for investment, net Real estate, net Deferred leasing costs and intangible assets, net Mortgage loans held in securitization trusts, at fair value! Cash,
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT'D) Reconciliation of GAAP net book value to undepreciated book value As of June 30, 2022 GAAP net book value (excluding noncontrolling interests in investment entities) $ 1,452,008 Accumulated depreciation and amortization” 149,709 Undep
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 to Distributable Earnings and Adjusted Distributable Earnings Three Months Ended June 30, 2022 Net income attributable to BrightSpire Capital, Inc. common stockholders $ 34,287 Adjustments: Net income
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 to NOI Three Months Ended June 30, 2022 Net income attributable to BrightSpire Capital, Inc. common stockholders $ 34,287 Adjustments: Net income attributable to non-net leased and other real estate p
Slide 31: Footnotes
FOOTNOTES RAN 28. Amounts presented reflect total committed capital and includes only closed deals as of July 29, 2022 Includes availability under the corporate revolving credit facility and unrestricted cash as of July 29, 2022 As of July 29, 2022 Debt-to-equity ratio based on BRSP's share of total
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