Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q1 2024 Earnings Presentation
36 slides from Brightspire Capital's earnings presentation, May 1, 2024
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 publicly-traded, diversified and internally- managed commercial real estate credit REIT $4.1B $2.8B Total At-Share Assets Total Loan (Undepreciated) Portfolio Liq uid ity Diversified Portfolio Of Prim +85 total loans,
Slide 4: Summary Results & Subsequent Events Update
SUMMARY RESULTS & SUBSEQUENT EVENTS UPDATE . GAAP Net Loss of ($57.1) million, or ($0.45) per share . Distributable Earnings of $22.5 million, or $0.17 per share FINANCIAL RESULTS Adjusted Distributable Earnings of $29.7 million, or $0.23 per share . GAAP net book value of $9.10 per share and undepr
Slide 5: Financial Overview
FINANCIAL OVERVIEW Key ial Metrics Capital Structure GAAP Net Loss ($M) ($57.1) Per Share ($0.45) ™ Stockholders’ equity (undepreciated) Distributable Earnings ($M) $22.5 ™ Master repurchase facilities limited recourse) Per Share $0.7 dete capitalization '™ Securitization bonds payable (non-recourse
Slide 6: Financial Performance
FINANCIAL PERFORMANCE Earnings Per Share Book Value Per Share Adjusted Distributable Earnings = GAAP Net Book Value ™ Undepreciated Book Value $0.28 $0.28 $11.53 $11.55 $11.35 $0.25 $0.23 $10.67 iia | ; Dividend Q2'23 Q3'23 Q4'23 QlI'24 Q2'23 Q3'23 Q4'23 Ql24 GAAP Net Income (Loss) GAAP Net Book Val
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net comying value as of March 31, 2024 Investment Carrying Net carrying (At BRSP share) count value value Per share Lik rtfoli cen porwere Senior mortgage loans 80 $ 2744 § ™m $ 6.05 ™ Net lease & other Mezzanine loans 5 87 87 0.66
Slide 8: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW 85 $2.8B $33M 0.5 yrs. 2.1yrs. 9.2% 3.2 100% 70% Total number of investments Total loan portfolio Average investment size W.A. remaining term W.A. extended remaining term" W.A. unlevered all-in yield W.A. risk ranking of senior loans are floating rate Senior mortgage loans =
Slide 9: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Collateral Type Region Exposure as a % of Carrying Value Number of Carrying % of carrying (At BRSP share) investments value value Multifamily 51 $ 1,541,092 54% Office 25 846,816 30% 15% 7% 4% 4% Hotel 3 220,458 8% 8% aa 0% a Mixed-use 4 186,450 7% 1% ae 6% -- Industri
Slide 10: Loan Portfolio Summary
LOAN PORTFOLIO SUMMARY (At BRSP share) Floating rate Senior mortgage loans Mezzanine loans* Total / W.A. floating rate Fixed rate Mezzanine loans Total / W.A. fixed rate Number of investments 80 $ 81 2,743,925 12,450 2,756,375 74,060 74,060 Net carrying W.A. extended carrying value value term (years
Slide 11: Loan Portfolio Maturities
LOAN PORTFOLIO MATURITIES Weighted average fully extended remaining term of approximately 2.1 years across the loan portfolio Fully Extended Loan Maturities" $1,250 = Fully extended loan maturities (carrying value) = Unfunded commitments $1,000 $750 £ ' ” Minimal final 1 $500 1 maturities in 2024 4
Slide 12: Net Lease Real Estate & Other Real Estate Summary
NET LEASE REAL ESTATE & OTHER REAL ESTATE SUMMARY romero | en] RemaHe | conn [Retaania| nercorns | S25ne! ac Siueal armen RS chen) investments | ownership % | pees) / units value value value ces period” (years) lease real estate ("NNN") Office” 3 100% 1812RSF $ — 288,425 34% $ 89,843 $ 6372 100% 59
Slide 13: Loan Portfolio Watch List Loans
LOAN PORTFOLIO WATCH LIST LOANS Denver, CO San Jose, CA Santa Clara, CA Las Vegas, NV Las Vegas, NV Arlington, TX Investment Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan ( 36) {Loan 77) (Loan 1) 2 (Loan 5) (Loan 6) en Floating-Rate Floating-Rate Floating-Rate Floating-Rate
Slide 14: Loan Portfolio Watch List Loans (Cont'd)
LOAN PORTFOLIO WATCH LIST LOANS (CONT'D) Tualatin, OR Reston, VA Dallas, TX Miami, FL Phoenix, AZ Richardson, TX Investment Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan n 57) (Loan 59) (Loan 63} (Loan 44) herein Floating-Rate Floating-Rate Floating-Rate Floating-Rate Float
Slide 15: Investment Updates
INVESTMENT UPDATES Net Lease Real Estate & Other Real Estate Collateral Origination # of of Rentable square W.A. W.A.lease Undepreciated Property Principal —Finaldebt 124 (At BRSP share) type City, State date properties buildings feet 'RSF') leased term(yrs)"® carrying value basis amountofdebt matur
Slide 16: Investment Detail
INVESTMENT DETAIL Loan Portfolio Origination Carrying ‘Coupon Cash Unlevered Extended QIWRisk 623 Risk (At BRSP share) _ Investment Type date City, State value type coupon all-inyield" maturity date" uv. ranking ranking [Multifamily Loan 1* Senior Jun-19 Santa Ciara, CA $ 57 Floating $+55% 108% Jun-
Slide 17: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Loan Portfolio (Cont'd) Originat ‘Coupon Cash Unlevered Extended {At BRSP share) __ Investment Type date City, State value type coupon all-in yield" _ maturity date" uv. Loan 38 Senior JuF2T__ Oregon City, OR $ 2 Floating S3.4% 9.0% ‘Aug-26 78% 3 Loan 39 Senior Jon-22 Aust
Slide 18: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) ‘Coupon Cosh Unlevered Extended QT2Risk 623 Risk (At BRSP share) Investment Type. City, State type ‘coupon all-in yield” maturity date") uv. ranking ranking office Loan 72 Senior Oct-21 Burbank, CA $ Floating S1440% 97% Nov-26 57% 3 3 Loan 73 Senior Aug-21 Los Angeles, CA
Slide 19: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Net Lease Real Estate & Other Real Estate Origination Collateral Undepreciated Carrying 124 tof Rentable square = WA. W.A. lease (At BRSP share) date type City, State carrying value value NOI properties feet ("RSF") / Units _%leased™ term (yrs) Net lease real estate Net le
Slide 20: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Diversified capital structure of primarily non-recourse debt and a 1.8x debt-to-equity ratio. Embedded capacity under existing financing facilities including an undrawn corporate revolver and $968M of repurchase facilities availability Key Financial Metrics Capital Structur
Slide 21: Capitalization Summary
CAPITALIZATION SUMMARY Recourse vs. xtend. contractual Outstanding (At BRSP share) non-recourse"™ maturity” interest rate™ debt (UPB) Corporate debt Corporate revolving credit facility Recourse Jan-27 S+ 2.25% 7.69% $ - Investment-level debt Master repurchase facilities Limited recourse Apr-27 S+197
Slide 22: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY 2) 100% of senior mortgage loan value is floating rate nnual Net Interest Income Sensitivity to Changes in Be: SOFR: 5.33% (As of March 31, 2024) $5.0 $0.0 2 2 ($5.0) = ($7.6) i ($0.06) ($10.0) per share ($0.09) ($14.5) per share ($15.0) ($0.11) per share ($20.0) (2.00%) (1
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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 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 Total assets
Slide 28: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS Net interest income Interest income Interest expense Net interest income Property and other income Property operating income Other income Total property and other income Expenses Property operating expense Transaction, investment and servicing expense Interest ex
Slide 29: Consolidated Statement of Operations by Segment
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT Three Months Ended March 31, 2024 Loans and Net leased and — Corporate and preferred equity _other real estate other Total Net interest income Interest income $ 67,477 $ v7 $ 0 |$ 67,563 Interest expense (39,762) (68) (303) (40,133) Net interest income
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 Assets Loans and preferred equity held for investment, net Real estate, net Deferred leasing costs and intangible assets, net Assets held for sale Cash, restricted cash, re
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 GAAP net book value (excluding noncontrolling interests in investment entities) Accumulated depreciation and amortization® Undepreciated book value GAAP net book value
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 loss to Distributable Earnings and Adjusted Distributable Earnings Three Months Ended March 31, 2024 Net loss attributable to BrightSpire Capital, Inc. common stockholders $ (57,103) Adjustments: Non-cash eq
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 loss to NOI Three Months Ended __March's1.2024 _ Net loss attributable to BrightSpire Capital, Inc. common stockholders $ (57,103) Adjustments: Net loss attributable to non-net leased and other real estate p
Slide 34: Footnotes
FOOTNOTES 1. Includes availability under the corporate revolving credit facility and unrestricted cash as of April 26, 2024 2. Asof April26, 2024 3. Debt-to-equity ratio based on BRSP’s shate of total outstanding unpaid principal balance ("UPB") divided by total stockholders’ equity excluding the im
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: BrightSpire Capital
BD@ BRIGHTSPIRE