Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q1 2022 Earnings Presentation
33 slides from Brightspire Capital's earnings presentation, May 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 internally-managed commercial real estate credit REIT with a growing balance sheet Stable & $5.2B $920M $431M $266M Growin Total At-Share Assets New Senior Loan Total Liquidity Total Unrestricted Cash Portf ie (U
Slide 4: First Quarter & Subsequent Events Update
FIRST QUARTER & SUBSEQUENT EVENTS UPDATE * Net income of $27.7 million, or $0.21 per share FINANCIAL * Distributable Earnings and Adjusted Distributable Earnings of $28.8 million, or $0.22 per share RESULT: * GAAP net book value of $11.26 per share and undepreciated book value of $12.36 per share *
Slide 5: Financial Overview
FINANCIAL OVERVIEW Key Financial Metrics Capital Structure GAAP Net Income ($M) $27.7 ; Per Share $0.21 Stockholders’ equity (undepreciated) = Securitization bonds payable (non-recourse) Distributable Earnings ($M) $28.8 Total Per Share $0.22 capitalization = Master repurchase facilities (limited re
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net carrying value as of March 31, 2022 Investment Carrying Net carrying (At BRSP share) count value value Per share Senior mortgage loans 102 $ 3,629 $ 895 $ 674 = Loan portfolio Mezzanine loans 7 130 130 0.98 ™Net lease & other re
Slide 7: Loan Portfolio Highlights
LOAN PORTFOLIO HIGHLIGHTS Q1'22 LOAN PORTFOLIO ACTIVITY $476 $20 $3 ($224) Total Loan Repayments 12/31/21 Total New Loans - Additional Loan Other (4) Repayments. 3/31/22 Loan Portfolio Initial Fundings "3) Fundings Loan Portfolio $589M $35M 4.5% 100% 67% Total commitments Average loan size W.A. unle
Slide 8: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW Total number of investments $3.8B Total loans & preferred equity $34M Average investment size 1.5 yrs. W.A. remaining term") 3.6 yrs. | W.A. extended remaining term” 5.0% W.A. unlevered all-in yield") 3.1 W.A. risk ranking Senior mortgage loans 100% of senior loans are floati
Slide 9: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Collateral Type Region Exposure as a % of Carrying Value (At BRSP share) ieee conving ® oteamina West Southwest | Northeast | Southeast Midwest Multifamily 68 $ 2,025,037 S4% 21% 28% 2% 3% - Office 30 1,150,948 30% 13% 4% 10% 3% = Hotel 6 437,501 12% 1% = 0% - 1% Other
Slide 10: Loan Portfolio Summary
LOAN PORTFOLIO SUMMARY Number of Carrying Net carrying W.A. unlevered W.A. extend (At BRSP share) westments value carrying value value term (years) Floating rate Senior mortgage loans 102 $ 3,629,415. 96% $ 894,559 48% 3.6 Mezzanine loans 1 12,120 0% 12,120 1.5% 04 Total / W.A. floating rate 103 3,6
Slide 11: Net Lease Real Estate & Other Real Estate Summary
NET LEASE REAL ESTATE & OTHER REAL ESTATE SUMMARY Rentable A F W.A. % leased | W.A. remaining Number of BRSP Carrying ®eofeamying | Net carrying Q122 NOI" ; f square feet at end of lease term investments | ownership % | once value value value (at BRSP share) a at (At BRSP share) ('RSF") & Keys perio
Slide 12: Investment Detail
INVESTMENT DETAIL Loan Portfolio Origination Carrying Coupon Cash Unlevered Extended Risk {At BRSP share) date Collateral type City, State, value type coupon all-in yield" ___ maturity date” uw ranking [Senior loans Loan Jon-18 Hotel Son Jose, CA $ 185 Floating L+48% 53% Nov-26 16% 4 Loan 2 Jun-19 M
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-in yield" ___ maturity date” uw ranking [Senior loans Loan 41 Jul-21— Multifamily Phoenix, AZ 31 Floating L+33% 40% ‘ug-
Slide 14: 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” tv ranking Loan 81 Jun-21__ Multifamily Phoenix, AZ 7 Fioating Ls 34% 43% Ju-26 63% 3 Loan 8
Slide 15: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Net Lease Real Estate & Other Real Estate Origination Carrying ar22 tof tof Rentable square wa. W.A. lease (At BRSP share) date Collateral type City, State value NOI" properties buildings feet ("RSF") %leased™ term yrs)” |Net lease real estate Net lease 1"* Ju-18 Office St
Slide 16: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Diversified capital structure of primarily non-recourse debt and a 2.1x debt-to-equity ratio. Embedded capacity under existing financing sources including an undrawn corporate revolver and $714M of repurchase facilities availability Key Financial Metrics Capital Structure $
Slide 17: Capitalization Summary
CAPITALIZATION SUMMARY Recourse vs. contractual i Outstanding (At BRSP share) jon-recourse™ debt (UPB) Corporate debt Corporate revolving credit facility Recourse Jan-27 $+2.25% 2.66% $ - Investment-level debt Master repurchase facilities Limited recourse Aug-24 L/S +1.88% 2.38% 1,199,789 Securitiza
Slide 18: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY BRSP's portfolio is positioned to benefit in a rising rate environment (2) 100% of senior mortgage loan value is floating rate 2) W.A. benchmark floor of approximately 70 bps across senior mortgage loans 3) 58% of floating rate senior mortgage loan value is subject to a ben
Slide 19: Appendix
APPENDIX Be BRIGHTSPIRE
Slide 20: 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 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 Preferre
Slide 23: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET March 31, 2022 (Unaudited) December 31, 2021 Assets ‘Cash and cash equivalents 246,010 $ 259,722 Restricted cash 84,492 a6,e41 Loans held for investment 3,759,873 3,485,607 ‘Current expected credit oss reserve (34,004) (36,598) Loans held for investment, net 3725869 FAd9,0
Slide 24: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended March 31, 2022 2021 Net interest income Interest income $ 44,570 $ 34,376 Interest expense (16,072) (12,495) Interest income on mortgage loans held in securitization trusts 9.375 19,689 Interest expense on mortgage obligations issued by securit
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 March 31, 2022 December 31, 2021 Class A common stock 129,633,136 129,769,365 OP units 3,075,623 3,075,623 Total common stock and OP units outstanding 132,708,759 132,844,988 pe 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 Assets Loans held for investment, net Real estate, net Investments in unconsolidated ventures Deferred leasing costs and intangible assets, net Mortgage loans held in
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 March 31, 2022 _ GAAP net book value (excluding noncontrolling interests in investment entities) $ 1,494,536 Accumulated depreciation and amortization™ 145,769 Un
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 March 31, 2022 Net income attributable to BrightSpire Capital, Inc. common stockholders $ 27,724. Adjustments: Net inco
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 March 31, 2022 Net income attributable to BrightSpire Capital, Inc. common stockholders $ 27,724 Adjustments: Net income attributable to non-net leased and other real estate
Slide 31: Footnotes
FOOTNOTES Amounts presented reflect total committed capital and include both closed and in-execution deals where applicable; as of April 29, 2022 Based on GAAP gross carrying values; excludes cash and net assets and the impact of CECL reserves As of April 29, 2022 Debt-to-equity ratio based on BRSP'
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