Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q3 2023 Earnings Presentation
36 slides from Brightspire Capital's earnings presentation, Oct 31, 2023
Slide 1: Supplemental Financial Report Third Quarter 2023
OCTOBER 30, 2023 SUPPLEMENTAL FINANCIAL REPORT THIRD QUARTER 2023 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
COMPANY HIGHLIGHTS BrightSpire Capital, Inc. (“BRSP” or the “Company”) is a large publicly-traded, diversified and internally- managed commercial real estate credit REIT Diversified $4.5B $3.1B $348M $183M Total At-Share Assets Total Loan Total Liquidity(1) Total Unrestricted Cash Portfolio (Undepre
Slide 4: Summary Results & Subsequent Events Update
SUMMARY RESULTS & SUBSEQUENT EVENTS UPDATE • GAAP Net Income of $12.4 million, or $0.09 per share • Distributable Earnings of $31.0 million, or $0.24 per share FINANCIAL • Adjusted Distributable Earnings of $35.8 million, or $0.28 per share RESULTS • GAAP net book value of $10.11 per share and undep
Slide 5: Financial Overview
FINANCIAL OVERVIEW Key Financial Metrics Capital Structure GAAP Net Income ($M) $12.4 1% Per Share $0.09 14% Stockholders' equity (undepreciated) Distributable Earnings ($M) $31.0 34% Master repurchase facilities (limited recourse) Per Share $0.24 Total capitalization Securitization bonds payable (n
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net carrying value as of September 30, 2023 Investment Carrying Net carrying (At BRSP share) count value value Per share <1% Loan portfolio 20% Senior mortgage loans 87 $ 3,032 $ 796 $ 6.12 Net lease & other Mezzanine loans 5 78 78
Slide 7: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW Overview Investment Type Property Type 92 Total number of investments $3.1B Total loan portfolio 3% 5% 2% 9% $34M Average investment size 52% 0.6 yrs. W.A. remaining term(9) 2.6 yrs. W.A. extended remaining term(10) 32% 97% 9.3% W.A. unlevered all-in yield(11) 3.2 W.A. risk r
Slide 8: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Collateral Type Region Exposure as a % of Carrying Value Number of Carrying % of carrying West Southwest Northeast Southeast (At BRSP share) investments value value Multifamily 53 $ 1,614,533 52% 18% 29% 1% 3% Office 30 1,010,238 32% 15% 7% 7% 4% Hotel 3 278,885 9% 9%
Slide 9: Loan Portfolio Summary
LOAN PORTFOLIO SUMMARY Number of Carrying % of Net carrying W.A. unlevered W.A. extended (11) (10) (At BRSP share) investments value carrying value value all-in yield term (years) Floating rate Senior mortgage loans 87 $ 3,032,483 98% $ 795,809 9.2% 2.6 Mezzanine loans 1 12,450 0% 12,450 17.3% 0.2 T
Slide 10: Loan Portfolio Maturities
LOAN PORTFOLIO MATURITIES Weighted average fully extended remaining term of approximately 2.6 years across the loan portfolio Fully Extended Loan Maturities(10) $1,500 Fully extended loan maturities (carrying value) Unfunded commitments $1,250 $1,000 $ in Millions $750 $1,336 $500 $942 $250 $443 $31
Slide 11: Loan Portfolio Risk Rankings & CECL Reserve
LOAN PORTFOLIO RISK RANKINGS & CECL RESERVE Risk Ranking Overview CECL Reserve Overview Q3'23 Q3’23 W.A. Risk Ranking Specific CECL Reserve 79% 3.2 General CECL Reserve Total Reserve $107M ($0.83/share) Total Reserve Loan Count $90M ($0.69/share) 77 100% Risk Rank 5 $55M $35M 100% Risk Rank 5 Loan C
Slide 12: Loan Portfolio Top 5 Office Loans
LOAN PORTFOLIO TOP 5 OFFICE LOANS Boston, MA Carlsbad, CA San Jose, CA Phoenix, AZ Baltimore, MD Investment Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan (Loan 54) (Loan 55) (Loan 56) (Loan 57) (Loan 58) Floating-Rate Floating-Rate Floating-Rate Floating-Rate Floating-Rate Investment T
Slide 13: Net Lease Real Estate & Other Real Estate Summary
NET LEASE REAL ESTATE & OTHER REAL ESTATE SUMMARY Rentable W.A. % leased W.A. remaining Number of BRSP Carrying % of carrying Net carrying Q3'23 NOI square feet at end of lease term investments ownership % value value value (at BRSP share) (14) (15) (At BRSP share) ("RSF") period (years) Net lease r
Slide 14: Loan Portfolio Watch List Loans
LOAN PORTFOLIO WATCH LIST LOANS Phoenix, AZ Washington, D.C. San Jose, CA Las Vegas, NV Las Vegas, NV Arlington, TX Investment Multifamily Senior Loan Office Senior Loan Hotel Senior Loan Multifamily Senior Loan Multifamily Senior Loan Multifamily Senior Loan (Loan 6) (Loan 76) (Loan 84) (Loan 4) (L
Slide 15: Loan Portfolio Watch List Loans (Cont'd)
LOAN PORTFOLIO WATCH LIST LOANS (CONT’D) Tualatin, OR Reston, VA Dallas, TX Denver, CO Phoenix, AZ Richardson, TX Investment Office Senior Loan Office Senior Loan Office Senior Loan Multifamily Senior Loan Multifamily Senior Loan Office Senior Loan (Loan 61) (Loan 62) (Loan 63) (Loan 27) (Loan 46) (
Slide 16: Investment Detail
INVESTMENT DETAIL Loan Portfolio Origination Carrying Coupon Cash Unlevered Extended Q3'23 Risk Q2'23 Risk (At BRSP share) Investment Type date City, State value type coupon all-in yield(11) maturity date(10) LTV ranking ranking Multifamily Loan 1 * Senior Jun-19 Santa Clara, CA $ 57 Floating S+5.5%
Slide 17: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT’D) Loan Portfolio (Cont’d) Origination Carrying Coupon Cash Unlevered Extended Q3'23 Risk Q2'23 Risk (At BRSP share) Investment Type date City, State value type coupon all-in yield(11) maturity date(10) LTV ranking ranking Loan 38 Senior Nov-21 Austin, TX $ 23 Floating S+3.4%
Slide 18: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT’D) Loan Portfolio (Cont’d) Origination Carrying Coupon Cash Unlevered Extended Q3'23 Risk Q2'23 Risk (At BRSP share) Investment Type date City, State value type coupon all-in yield(11) maturity date(10) LTV ranking ranking Office Loan 74 Senior Jul-21 Denver, CO $ 23 Floating
Slide 19: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT’D) Net Lease Real Estate & Other Real Estate Origination Collateral Undepreciated Carrying Q3'23 # of # of Rentable square W.A. W.A. lease (At BRSP share) date type City, State carrying value value NOI properties buildings feet ("RSF") % leased(14) term (yrs)(15) Net lease re
Slide 20: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Diversified capital structure of primarily non-recourse debt and a 1.9x debt-to-equity ratio. Embedded capacity under existing financing facilities including an undrawn corporate revolver and $805M of repurchase facilities availability Key Financial Metrics Capital Structur
Slide 21: Capitalization Summary
CAPITALIZATION SUMMARY Recourse vs. W.A. extended W.A. contractual W.A. all-in Outstanding (At BRSP share) non-recourse(18) maturity(19) interest rate(19) COF(17) debt (UPB) Corporate debt Corporate revolving credit facility Recourse Jan-27 S + 2.25% 7.68% $ - Investment-level debt Master repurchase
Slide 22: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY 100% of senior mortgage loan value is floating rate Annual Net Interest Income Sensitivity to Changes in Benchmark Rates – Total Portfolio SOFR: 5.32% (As of September 30, 2023) $5.0 $4.0 $2.0 $0.03 per share $0.0 ($0.03) $0.02 per share per share ($0.06) $ in Millions ($5.
Slide 23: Appendix
APPENDIX BRIGHTSPIRE APITAL
Slide 24: Important Note Regarding Non-GAAP Financial Measures and Definitions
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 flo
Slide 25: 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 BRSP 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 26: 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 27: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET September 30, 2023 (Unaudited) December 31, 2022 Assets Cash and cash equivalents $ 236,197 $ 306,320 Restricted cash 97,432 92,508 Loans and preferred equity held for investment 3,145,196 3,574,989 Current expected credit loss reserve (89,172) (106,247) Loans and preferre
Slide 28: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended September 30, 2023 2022 Net interest income Interest income $ 75,630 $ 63,671 Interest expense (43,647) (32,944) Interest income on mortgage loans held in securitization trusts - 9,597 Interest expense on mortgage obligations issued by securiti
Slide 29: Consolidated Statement of Operations by Segment
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT Three Months Ended September 30, 2023 Loans and CRE debt Net leased and preferred equity securities other real estate Corporate Total Net interest income Interest income $ 75,586 $ - $ - $ 44 $ 75,630 Interest expense (43,340) - - (307) (43,647) Net in
Slide 30: 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 As of September 30, 2023 (20) (21) Consolidated NCI At BRSP share Assets Loans and preferred equity held for investment, net $ 3,056,024 $ - $ 3,056,024 Real estate, net 7
Slide 31: 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 September 30, 2023 GAAP net book value (excluding noncontrolling interests in investment entities) $ 1,314,178 Accumulated depreciation and amortization(8) 187,2
Slide 32: 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 September 30, 2023 Net income attributable to BrightSpire Capital, Inc. common stockholders $ 12,389 Adjustments: Non-
Slide 33: 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 September 30, 2023 Net income attributable to BrightSpire Capital, Inc. common stockholders $ 12,389 Adjustments: Net income attributable to non-net leased and other real es
Slide 34: Footnotes
FOOTNOTES 1. Includes availability under the corporate revolving credit facility and unrestricted cash as of October 27, 2023 2. As of October 27, 2023 3. Debt-to-equity ratio based on BRSP’s share of total outstanding unpaid principal balance (“UPB”) divided by total stockholders’ equity excluding
Slide 35: 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 36: Thank You
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