Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Colony Credit Real Estate — Q3 2019 Earnings Presentation
45 slides from Brightspire Capital's earnings presentation, Nov 7, 2019
Slide 1: Supplemental Financial Report Third Quarter 2019
Exhibit 99.3 Supplemental Financial Report Third Quarter 2019 November 7, 2019 1Exhibit 99.3 Supplemental Financial Report Third Quarter 2019 November 7, 2019 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: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS We present Core Earnings/Legacy, Non-Strategic Earnings, which are non-GAAP supplemental financial measures of our performance. We believe that Core Earnings/Legacy, Non-Strategic Earnings provides meaningful information to conside
Slide 4: Important Note Regarding Non-GAAP Financial Measures and Definitions (Cont'd)
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS (CONT’D) We present loan-to-value which reflects initial loan amount divided by the as-is appraised value as of the date the loan was originated, or by the current principal amount divided by the appraisal value as of the date of t
Slide 5: Notes Regarding Reportable Segments
NOTES REGARDING 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
Slide 6: Table of Contents
TABLE OF CONTENTS Page I. Third Quarter Highlights 7 II. Core Portfolio 10 § Portfolio Overview 11 § Loan & Preferred Equity Portfolio 12 § CRE Debt Securities 14 § Net Lease Real Estate 15 § Investment Detail 16 III. Legacy, Non-Strategic Portfolio 18 IV. Capitalization 27 V. Appendix 30 6 6TABLE O
Slide 7: I. Third Quarter Highlights
I. THIRD QUARTER HIGHLIGHTS 7I. THIRD QUARTER HIGHLIGHTS 7
Slide 8: Third Quarter Highlights & Subsequent Events
I. THIRD QUARTER HIGHLIGHTS & SUBSEQUENT EVENTS § Third quarter 2019 GAAP net income (loss) attributable to common stockholders of $(356.0) million, or $(2.77) per share § Core Portfolio o GAAP net income (loss): $(1.5) million, or $(0.01) per share o Core Earnings (Loss): $44.7 million, or $0.34 pe
Slide 9: Company Snapshot
I. COMPANY SNAPSHOT ($ in thousands, unless otherwise stated; as of September 30, 2019; at CLNC share) Company overview Portfolio overview Carrying Net carrying Per (1) (4) value value Share (1) Total at-share assets $5.6 billion Core Portfolio Senior mortgage loans $ 2,277,750 $ 717,143 $ 5.45 (2)
Slide 10: II. Core Portfolio
II. CORE PORTFOLIO 10II. CORE PORTFOLIO 10
Slide 11: Core Portfolio – Overview
II. CORE PORTFOLIO – OVERVIEW (As of September 30, 2019; at CLNC share) (3) (3) Portfolio summary Investment type Property type Total number of 113 Mezzanine loans (5) Other investments Preferred equity 6% 8% (4) & other loans 7% Hotel (1) $4.5 billion Total at-share assets Office 15% CRE debt 33% s
Slide 12: Core Portfolio – Loans & Preferred Equity Portfolio Overview
II. CORE PORTFOLIO – LOANS & PREFERRED EQUITY PORTFOLIO OVERVIEW (As of September 30, 2019; at CLNC share) (5) Investment type Overview Preferred equity & other loans 10% % of performing loans 100% Mezzanine loans 10% Senior (1) mortgage Total loans & preferred equity $2.8 billion loans 80% Total nu
Slide 13: Core Portfolio – Loans & Preferred Equity Portfolio Overview (Cont'd)
II. CORE PORTFOLIO – LOANS & PREFERRED EQUITY PORTFOLIO OVERVIEW (CONT’D) ($ in thousands; as of September 30, 2019; at CLNC share) Carrying Net carrying W.A. unlevered W.A. remaining W.A. extended Number of (1) (2) (3) (4) (5) investments value value all-in yield term (years) term (years) Floating
Slide 14: Core Portfolio – CRE Debt Securities
II. CORE PORTFOLIO – CRE DEBT SECURITIES (As of September 30, 2019, unless otherwise stated; at CLNC share) (6) Overview Ratings Category B-Piece (1) Principal value Investments $469 million 30% (1) BBB- Carrying value $367 million 62% BB | B 8% (2) Net carrying value $161 million (6) Vintage (3) To
Slide 15: Core Portfolio – Net Lease Real Estate
II. CORE PORTFOLIO – NET LEASE REAL ESTATE ($ and square feet in thousands; as of September 30, 2019, unless otherwise stated; at CLNC share) Rentable square W.A. % leased W.A. remaining Carrying Net carrying Q3 NOI / Annualized Q3 Number of Number of at end of lease term feet ( RSF ) / (1) (2) (3)
Slide 16: Core Portfolio – Investment Detail
II. CORE PORTFOLIO – INVESTMENT DETAIL ($ in millions; as of September 30, 2019; at CLNC share) Core Portfolio – loans & preferred equity portfolio Carrying Coupon Cash Unlevered Extended Risk (1) (2) (3) (4) ranking Collateral type City, State value type coupon all-in yield maturity date LTV Senior
Slide 17: Core Portfolio – Investment Detail (Cont'd)
II. CORE PORTFOLIO – INVESTMENT DETAIL (CONT’D) ($ in millions; rentable square feet in thousands; as of September 30, 2019; at CLNC share) Core Portfolio – loans & preferred equity portfolio (cont’d) Carrying Coupon Cash Unlevered Extended Risk (1) (2) (3) (4) Collateral type City, State value type
Slide 18: III. Legacy, Non-Strategic Portfolio
III. LEGACY, NON- STRATEGIC PORTFOLIO 18III. LEGACY, NON- STRATEGIC PORTFOLIO 18
Slide 19: Legacy, Non-Strategic – Portfolio Overview
III. LEGACY, NON-STRATEGIC – PORTFOLIO OVERVIEW ($ in thousands, unless otherwise stated; as of September 30, 2019; at CLNC share) (3) (3) Portfolio summary Investment type Property type Total number of 70 PE interests (4) (6) Other Net lease Preferred equity investments 2% <1% 10% real estate 7% Ho
Slide 20: Legacy, Non-Strategic – Loans & Preferred Equity Portfolio Overview
III. LEGACY, NON-STRATEGIC – LOANS & PREFERRED EQUITY PORTFOLIO OVERVIEW (As of September 30, 2019; at CLNC share) (5) Investment type Overview Preferred equity <1% (1) Mezzanine Total loans & preferred equity $240 million loans Senior 29% loans 71% Total number of investments 17 (5) Property type A
Slide 21: Legacy, Non-Strategic – Loans & Preferred Equity Portfolio Overview (Cont'd)
III. LEGACY, NON-STRATEGIC – LOANS & PREFERRED EQUITY PORTFOLIO OVERVIEW (CONT’D) ($ in thousands; as of September 30, 2019; at CLNC share) Carrying Net carrying W.A. unlevered W.A. remaining W.A. extended Number of (1) (2) (3) (4) (5) investments value value all-in yield term (years) term (years) F
Slide 22: Legacy, Non-Strategic – Net Lease Real Estate
III. LEGACY, NON-STRATEGIC – NET LEASE REAL ESTATE ($ and square feet in thousands; as of September 30, 2019, unless otherwise stated; at CLNC share) W.A. % leased W.A. remaining Rentable Carrying Net carrying Annualized Number of Number of (3) at end of lease term square feet Q3 NOI (1) (2) (4) pro
Slide 23: Legacy, Non-Strategic – Other Real Estate
III. LEGACY, NON-STRATEGIC – OTHER REAL ESTATE ($ and square feet in thousands; as of September 30, 2019, unless otherwise stated; at CLNC share) W.A. % leased W.A. remaining Rentable square Carrying Net carrying Q3 NOI / Annualized Q3 Number of Number of feet ( RSF ) / at end of lease term (1) (2)
Slide 24: Legacy, Non-Strategic – Investment Detail
III. LEGACY, NON-STRATEGIC – INVESTMENT DETAIL ($ in millions; as of September 30, 2019; at CLNC share) Legacy, Non-Strategic Portfolio – loans & preferred equity portfolio Coupon Cash Unlevered Extended (1) (2) Collateral type City, State type coupon all-in yield maturity date Senior loans * Loan 1
Slide 25: Legacy, Non-Strategic – Investment Detail (Cont'd)
III. LEGACY, NON-STRATEGIC – INVESTMENT DETAIL (CONT’D) ($ in millions; rentable square feet in thousands; as of September 30, 2019; at CLNC share) Legacy, Non-Strategic Portfolio – net lease & other real estate Rentable square # of # of feet ( RSF ) / W.A. W.A. lease (1) (2) Collateral type City, S
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 September 30, 2019; at CLNC share) Legacy, Non-Strategic Portfolio – net lease & other real estate (cont’d) Rentable square # of # of feet ( RSF ) / W.A. W.A. lease (1) (2) Collateral typ
Slide 27: IV. Capitalization
IV. CAPITALIZATION 27IV. CAPITALIZATION 27
Slide 28: Capitalization Highlights
IV. CAPITALIZATION HIGHLIGHTS (As of September 30, 2019, unless otherwise stated; at CLNC share) (4) Overview Capital structure Corporate revolving (6) Other debt Total capitalization $5.3 billion credit facility 1% (excluding cash) 3% CMBS credit facilities Stockholders' 4% (5) equity (1) Total out
Slide 29: Capitalization Overview
IV. CAPITALIZATION OVERVIEW ($ in thousands; as of September 30, 2019; at CLNC share) Recourse vs. W.A. extended W.A. contractual W.A. all-in Outstanding (1) (2) (2) (2)(3) (4) Non-recourse maturity interest rate COF debt (UPB) Corporate debt Corporate revolving credit facility Recourse Feb-23 L + 2
Slide 30: V. Appendix
ColonyCredit REAL ESTATE V. APPENDIX
Slide 31: Appendix – Consolidated Balance Sheet
V. APPENDIX – CONSOLIDATED BALANCE SHEET (In thousands, except share and per share data; as of September 30, 2019 unless otherwise stated) September 30, 2019 (Unaudited) December 31, 2018 Assets Cash and cash equivalents $ 60,332 $ 77,317 Restricted cash 139,549 110,146 Loans and preferred equity he
Slide 32: Appendix – Consolidated Statements of Operations
V. APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data; as of September 30, 2019, unless otherwise stated) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net interest income Interest income $ 46,991 $ 40,139 $ 127,47
Slide 33: Appendix – Consolidated Statements of Operations by Segment
V. APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT ($ in thousands; as of September 30, 2019) (Unaudited) Three Months Ended September 30, 2019 Core Portfolio Loans and Preferred Legacy, Non- Equity CRE debt Net lease Total Core Strategic Investments securities real estate Corporate Port
Slide 34: Appendix – Consolidated Statements of Operations by Segment (Cont'd)
V. APPENDIX – CONSOLIDATED STATEMENTS OF OPERATIONS BY SEGMENT (CONT’D) ($ in thousands; as of September 30, 2019) (Unaudited) Nine Months Ended September 30, 2019 Core Portfolio Loans and Preferred Legacy, Non- Equity CRE debt Net lease Total Core Strategic Investments securities real estate Corpor
Slide 35: Appendix – Outstanding Common Shares and OP Units
V. APPENDIX – OUTSTANDING COMMON SHARES AND OP UNITS As of As of September 30, 2019 June 30, 2019 Class A common stock 128,538,703 128,545,190 Class B-3 common stock - - OP units 3,0 75,623 3,075,623 Total common stock and OP units outstanding 131,614,326 131,620,813 35 35V. APPENDIX – OUTSTANDING C
Slide 36: Appendix – 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 September 30, 2019) (Unaudited) Reconciliation of consolidated balance sheet to at CLNC share balance sheet As of September 30, 2019 Total Core Portfolio Legacy, Non-Strategic Portfolio
Slide 37: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
V. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) (In thousands, except per share data; as of September 30, 2019) (Unaudited) Reconciliation of GAAP book value to undepreciated book value As of September 30, 2019 Legacy, Non-Strategic Core Portfolio Portfolio Total $ 1,
Slide 38: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
V. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) (In thousands, except per share data; as of September 30, 2019, unless otherwise stated) (Unaudited) Reconciliation of GAAP net income (loss) to Core Earnings (Loss)/Legacy, Non-Strategic Earnings (Loss) Three Months End
Slide 39: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
V. APPENDIX – RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) ($ in thousands; as of September 30, 2019) (Unaudited) Reconciliation of GAAP net income (loss) to NOI/EBITDA Three Months Ended September 30, 2019 Core Portfolio Legacy, Non-Strategic Portfolio Net lease real Other Tota
Slide 40: Appendix – Footnotes
V. APPENDIX – FOOTNOTES Page 9 1. Represents CLNC share as of September 30, 2019. This includes noncontrolling interests in the Operating Partnership and excludes noncontrolling interests in investment entities 2. Debt-to-asset ratio based on total outstanding secured debt agreements (unpaid princip
Slide 41: Appendix – Footnotes (Cont'd)
V. APPENDIX – FOOTNOTES (CONT’D) Page 14 1. Represents principal amounts and carrying values at CLNC share as of September 30, 2019; for securitization assets, carrying values at CLNC share are presented net of the impact from consolidation 2. Represents carrying values net of any in-place investmen
Slide 42: Appendix – Footnotes (Cont'd)
V. APPENDIX – FOOTNOTES (CONT’D) Page 19 1. Represents CLNC share as of September 30, 2019. This includes noncontrolling interests in the Operating Partnership and excludes noncontrolling interests in investment entities 2. Based on annualized year to date (“YTD”) September 30, 2019 Legacy, Non-Stra
Slide 43: Appendix – Footnotes (Cont'd)
V. APPENDIX – FOOTNOTES (CONT’D) Page 23 1. Represents carrying values at CLNC share as of September 30, 2019; includes deferred leasing costs and other net intangibles; includes the impact of accumulated depreciation and amortization 2. Represents carrying values net of any in-place investment-leve
Slide 44: Appendix – Footnotes (Cont'd)
V. APPENDIX – FOOTNOTES (CONT’D) Page 36 1. Represents interests in assets held by third party partners 2. Represents the proportionate share attributed to CLNC based on CLNC’s ownership % by asset 3. Reflects the net impact of securitization assets and related obligations which are consolidated for
Slide 45: Company Information
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 mortgage loans, mezzanine loans, preferr
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