Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Colony Credit Real Estate — Q4 2019 Earnings Presentation
45 slides from Brightspire Capital's earnings presentation, Feb 27, 2020
Slide 1: Supplemental Financial Report Fourth Quarter 2019
Supplemental Financial Report Fourth Quarter 2019 February 27, 2020 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: Core Earnings / Legacy, Non-Strategic Earnings non-GAAP measures
We present Core Earnings/Legacy, Non-Strategic Earnings, which are non-GAAP supplemental financial measures of our performance. Our Core Earnings are generated by the Core Portfolio and Legacy, Non-Strategic Earnings are generated by the Legacy, Non-Strategic Portfolio. We believe that Core Earnings
Slide 4: Pro rata financial information presentation
The Company presents pro rata (“at share” or “at CLNC 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 applying its economic interest to each financial statement line item on an inve
Slide 5: Colony Credit Real Estate reportable segments
Colony Credit Real Estate, Inc. (“CLNC”, “Colony Credit Real Estate”, the “Company” or “We”) currently holds investment interests through the reportable segments below, which are based on how management reviews and manages its business. Each segment also includes corporate-level asset management and
Slide 6: Table of contents
Table of contents Business Developments & Portfolio Highlights Core Portfolio Portfolio Overview Loan & Preferred Equity Portfolio CRE Debt Securities Net Lease Real Estate Investment Detail Legacy, Non-Strategic Portfolio Capitalization Appendix Page 7 11 12 13 15 16 17 19 28 31
Slide 7: I. Business Developments & Portfolio Highlights
I. Business Developments & Portfolio Highlights
Slide 8: Business Developments & Highlights: Total Company, Core Portfolio
I. Business Developments & Highlights Total Company Core Portfolio Andrew E. Witt, Managing Director & Chief Operating Officer of Global Credit at Colony Capital, Inc., Appointed Interim Chief Executive Officer & President Operating Results Q4’19 GAAP net income of $34.0 million, or $0.26 per share
Slide 9: Legacy, Non-Strategic Portfolio highlights and operating results
Operating Results Q4’19 GAAP net income of $3.7 million, or $0.03 per share and Legacy, Non-Strategic Earnings of $5.3 million, or $0.04 per share FY’19 GAAP net loss of $(489.9) million, or $(3.82) per share and Legacy, Non-Strategic Earnings (loss) of $(217.2) million, or $(1.65) per share. FY’19
Slide 10: Company snapshot
I. Company snapshot Company overview ($ in thousands, unless otherwise stated; as of December 31, 2019; at CLNC share) See footnotes in the appendix $5.6 billion Total at-share assets(1) 57% Debt-to-asset ratio(2) 1.4x Net-debt-to-equity ratio(3) $2.2 billion / $16.49 per share GAAP net book value(1
Slide 11: II. Core Portfolio
ColonyCredit REAL ESTATE ll. CORE PORTFOLIO
Slide 12: Core Portfolio – Overview
II. Core Portfolio – Overview (As of December 31, 2019; at CLNC share) See footnotes in the appendix Select Underlying Assets Northern California Luxury Hotel Los Angeles Mixed-Used Development Southwest Multifamily Property NNN Dublin Office Campus Investment type(3) Property type(3) Portfolio summ
Slide 13: Core Portfolio – Loans & Preferred Equity Portfolio Overview
II. Core Portfolio – Loans & Preferred Equity Portfolio Overview Overview Investment type(5) (As of December 31, 2019; at CLNC share) $2.9 billion Total loans & preferred equity(1) 56 Total number of investments $52 million Average investment size 93% % Senior loans floating rate (All floating rate
Slide 14: Loans & Preferred Equity Portfolio Overview (Cont'd)
II. Core Portfolio – Loans & Preferred Equity Portfolio Overview (Cont’d) ($ in thousands; as of December 31, 2019; at CLNC share) See footnotes in the appendix
Slide 15: Core Portfolio – CRE Debt Securities
II. Core portfolio – CRE Debt securities Ratings Category(6) Vintage(6) (As of December 31, 2019, unless otherwise stated; at CLNC share) Overview $469 million Principal value(1) $363 million Carrying value(1) $157 million Net carrying value(2) 51 Total number of investments(3) 6.1 years W.A. remain
Slide 16: Core Portfolio – Net lease real estate
II. Core Portfolio – Net lease real estate Property type(7) ($ and square feet in thousands; as of December 31, 2019, unless otherwise stated; at CLNC share) Geography(7) W.A. remaining lease term(6)(7) * 100% is related to industrial net lease properties See footnotes in the appendix
Slide 17: Core Portfolio – Investment Detail
Core Portfolio – loans & preferred equity portfolio II. Core Portfolio – Investment Detail ($ in millions; as of December 31, 2019; at CLNC share) See footnotes in the appendix * Reflects loans and preferred equity interests in which the underlying collateral is related to construction/development p
Slide 18: Core Portfolio – Investment Detail (Cont'd)
II. Core Portfolio – Investment Detail (Cont’d) ($ in millions; rentable square feet in thousands; as of December 31, 2019; at CLNC share) Core Portfolio – loans & preferred equity portfolio (cont’d) Core Portfolio – net lease real estate * Reflects loans and preferred equity interests in which the
Slide 19: III. Legacy, Non-Strategic Portfolio
III. Legacy, Non-Strategic Portfolio
Slide 20: Legacy, Non-Strategic – Portfolio Overview
III. Legacy, Non-Strategic – Portfolio Overview ($ in thousands, unless otherwise stated; as of December 31, 2019; at CLNC share) See footnotes in the appendix Portfolio Activity Investment type(3) Property type(3) Portfolio summary Portfolio Overview FY 2019 Legacy, Non-Strategic Earnings excluding
Slide 21: Legacy, Non-Strategic – Loans & Preferred Equity Portfolio Overview
III. Legacy, Non-Strategic – Loans & Preferred Equity Portfolio Overview Overview Investment type(5) (As of December 31, 2019; at CLNC share) $235 million Total loans & preferred equity(1) 17 Total number of investments $14 million Average investment size 85% % Senior loans floating rate 1.3 years W
Slide 22: Legacy, Non-Strategic – Loans & Preferred Equity Portfolio Overview (Cont'd)
* During the fourth quarter 2019, placed two mezzanine loans (or three investments) and one preferred equity interest on non-accrual ** Represents an equity participation interest *,** III. Legacy, Non-Strategic – Loans & Preferred Equity Portfolio Overview (Cont’d) ($ in thousands; as of December 3
Slide 23: Legacy, Non-Strategic – Net lease real estate
III. Legacy, Non-Strategic – net lease real estate Property type(7) ($ and square feet in thousands; as of December 31, 2019, unless otherwise stated; at CLNC share) Geography(7) W.A. remaining lease term(6)(7) See footnotes in the appendix
Slide 24: Legacy, Non-Strategic – Other real estate
Property type(8) III. Legacy, Non-Strategic – Other real estate ($ and square feet in thousands; as of December 31, 2019, unless otherwise stated; at CLNC share) Geography(8) W.A. remaining lease term(6)(8) See footnotes in the appendix *During the fourth quarter 2019, the Company sold five Legacy,
Slide 25: Legacy, Non-Strategic – Investment Detail
III. Legacy, Non-Strategic – Investment Detail ($ in millions; as of December 31, 2019; at CLNC share) Legacy, Non-Strategic Portfolio – loans & preferred equity portfolio * Represents loans on nonaccrual status ** Reflects loans and preferred equity interests in which the underlying collateral is r
Slide 26: Legacy, Non-Strategic – Investment Detail (Cont'd)
III. Legacy, non-Strategic – Investment Detail (Cont’d) ($ in millions; rentable square feet in thousands; as of December 31, 2019; at CLNC share) Legacy, Non-Strategic Portfolio – net lease & other real estate See footnotes in the appendix
Slide 27: Legacy, Non-Strategic – Investment Detail (Cont'd)
III. Legacy, non-Strategic – Investment Detail (Cont’d) ($ in millions; rentable square feet in thousands; as of December 31, 2019; at CLNC share) Legacy, Non-Strategic Portfolio – net lease & other real estate (cont’d) See footnotes in the appendix Legacy, Non-Strategic Portfolio – net lease & othe
Slide 28: IV. Capitalization
ColonyCredit REAL ESTATE IV. CAPITALIZATION
Slide 29: Capitalization Highlights
IV. Capitalization Highlights (As of December 31, 2019, unless otherwise stated; at CLNC share) Overview $5.3 billion Total capitalization (excluding cash) $3.1 billion Total outstanding debt(1) $340 million ($453 million maximum facility availability) Corporate revolving credit facility availabilit
Slide 30: Capitalization overview
IV. Capitalization overview ($ in thousands; as of December 31, 2019; at CLNC share) See footnotes in the appendix
Slide 31: V. Appendix
ColonyCredit REAL ESTATE V. APPENDIX
Slide 32: Appendix – Consolidated Balance Sheet
V. Appendix – Consolidated Balance sheet (In thousands, except share and per share data; as of December 31, 2019 unless otherwise stated)
Slide 33: Appendix – Consolidated Statements of Operations
V. Appendix – Consolidated Statements of operations (In thousands, except per share data; as of December 31, 2019, unless otherwise stated)
Slide 34: Consolidated Statements of Operations By Segment
V. Appendix – Consolidated Statements of operations By Segment ($ in thousands; as of December 31, 2019)
Slide 35: Consolidated Statements of Operations By Segment (Cont'd)
V. Appendix – Consolidated Statements of operations By Segment (Cont’d) ($ in thousands; as of December 31, 2019)
Slide 36: Appendix – Outstanding common shares and OP units
V. Appendix – Outstanding common shares and Op units
Slide 37: Reconciliation of GAAP to non-GAAP financial information
V. Appendix – reconciliation of gaap to non-gaap financial information (In thousands, except per share data; as of December 31, 2019) (Unaudited) Reconciliation of consolidated balance sheet to at CLNC share balance sheet See footnotes in the appendix
Slide 38: Reconciliation of GAAP net book value to undepreciated book value
Reconciliation of GAAP net book value to undepreciated book value V. Appendix – reconciliation of gaap to non-gaap financial information (Cont’d) (In thousands, except per share data; as of December 31, 2019) (Unaudited) See footnotes in the appendix
Slide 39: Reconciliation of GAAP net income to Core Earnings / Legacy, Non-Strategic Earnings
V. Appendix – Reconciliation of GAAP to Non-gaap financial information (Cont’d) (In thousands, except per share data; as of December 31, 2019) (Unaudited) Reconciliation of GAAP net income (loss) to Core Earnings (Loss)/Legacy, Non-Strategic Earnings (Loss) See footnotes in the appendix
Slide 40: Reconciliation of GAAP net income (loss) to NOI/EBITDA
Reconciliation of GAAP net income (loss) to NOI/EBITDA V. Appendix – Reconciliation of GAAP to Non-gaap financial information (Cont’d) ($ in thousands; as of December 31, 2019) (Unaudited)
Slide 41: Appendix – Footnotes
V. Appendix – Footnotes Page 9 Net sales price represents gross sales price net of any in-place investment-level financing and transaction costs Page 10 Represents CLNC share as of December 31, 2019. This includes noncontrolling interests in the Operating Partnership and excludes noncontrolling inte
Slide 42: Appendix – Footnotes (cont'd)
V. Appendix – Footnotes (cont’d) Page 16 Represents carrying values at CLNC share as of December 31, 2019; includes deferred leasing costs and other net intangibles; includes the impact of accumulated depreciation and amortization Represents carrying values net of any in-place investment-level finan
Slide 43: Appendix – Footnotes (cont'd)
V. Appendix – Footnotes (cont’d) Page 21 Represents carrying values at CLNC share as of December 31, 2019 Represents the remaining loan term based on the current contractual maturity date of loans and is weighted by carrying value at CLNC share as of December 31, 2019 Represents the remaining loan t
Slide 44: Appendix – Footnotes (cont'd)
V. Appendix – Footnotes (cont’d) Page 27 Represents the percent leased as of December 31, 2019 and is weighted by carrying value at CLNC share as of December 31, 2019. Excludes hotel properties Based on in-place leases (defined as occupied and paying leases) as of December 31, 2019 and assumes that
Slide 45: Company information
Company Website: www.clncredit.com V. Company information Colony Credit Real Estate, Inc. (NYSE: CLNC) is one of the largest publicly traded commercial real estate credit REITs, focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE senior mortg
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