Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q4 2022 Earnings Presentation
24 slides from Brightspire Capital's earnings presentation, Feb 21, 2023
Slide 1: Exhibit 99.3
Exhibit 99.3
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, diversified and internally-managed commercial real estate credit REIT BS BRIGHTSPIRE DD CAPITAL O90 Transparent organizational model led by veteran con management team with proven track record Prudent balance sh
Slide 4: Key Metrics Snapshot
KEY METRICS SNAPSHOT Diversified $4.9 billion portfolio primarily comprised of senior loans and net lease assets itn) 2022 Total At-Share Assets ($B) (Undepreciated) $49 Beno eos Gore ee Number of Loans 30 L Portfolio. BMezzanine joane ‘86% Total Committed Capital ($8) $1.0 mPreferred equity z Curre
Slide 5: 2022 Accomplishments & 2023 Priorities
CCOMPLISHMENTS & PRIORITIES BRSP generated solid earnings and increased liquidity during 2022 and is well positioned for 2023 2022 Accomplishments Y OO © Consecutive Quarterly Earnings Increases Q4'22 Adjusted Distributable Earnings of $0.27/share (23% growth since Q1'22) Fully Covered Dividend 4°22
Slide 6: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO $3.5 billion loan portfolio consisting of 96% floating rate senior loans and 49% multifamily exposure Loan Portfolio Exposure" Property Type Mix - Predominantly Multifamily” Senior Loans m Subordinate Debt Loan Portfolio $3.58 @ Multifamil 43: ¥ xe = Office 100% = Hotel 57
Slide 7: Loan Portfolio Risk Profile
LOAN PORTFOLIO RISK PROFILE Average loan size of $34 million and an overall risk ranking of 3.2 Loan Size - Diversified Risk Concentration" Transition — Reduced Risk Profile 5421 9 Q622 $51-$75M 1% 26% 24% ss 20% 16% 4 Sasol omen 2% 51% >$75M LOAN SIZE DEVELOPMENT RISK RANK 4 & 5 Y) Total loan count
Slide 8: Lending Market Overview
LENDING MARKET OVERVIEW CRE Debt Market Update BRSP Investment Strategy Slowdown in CRE transaction volumes continued into 2023 given macroeconomic environment Cap rates slowly moving upwards yet lagging rise in interest rates Rising SOFR and rate cap costs have reduced demand for floating rate loan
Slide 9: Middle Market Focus
MIDDLE MARKET FOC Lending in the largest and fastest growing markets in the nation to trusted partners Originating in Growth Markets with Repeat Sponsors” Focusing on Middle Market?) $201+ Total CRE Market 77% Top 25 MSAs - ~~ 96% Transaction size 89%_ __ < $100M PAT) Ths, MSAs with above average po
Slide 10: Robust Investment Platform
ROBUST INVESTMENT PLATFORM Rigorous underwriting and screening process for each investment Comprehensive Investment Capabilities Screening & Evaluation Process (2022) % of Investments Evaluated Deep relationships with borrowers and intermediaries O Face ~2,200 / ~$110B 100% Y) Real-time real estate
Slide 11: Capitalization Highlights
APITALIZATION HIGHLIGHT Diversified and conservative capital structure with a 2.0x debt-to-equity ratio, reduced from 2.3x in Q3'22 Capital Structure Access to Diverse and Efficient Financing Sources + $449M of total liquidity, $284M of cash!) 2.0x Debt-to- equity ratio + Moderate leverage ratios wi
Slide 12: Positioned for Rising Rates
POSITIONED FOR RISING RATES BRSP's portfolio is positioned to benefit in a rising rate environment Annual Net Interest Income Sensitivity to Changes in Benchmark Rates — Total Portfolio LIBOR: 4.39% | SOFR: 4.36% (As of December 31, 2022) $10.0 $8.5 ee $4.3 $0.07 per share & soo c £ ($5.0 iy HSE) ($
Slide 13: Q4 Results Summary
Q4 RESULTS SUMMARY ($ in millions, except where noted and per share data) Q4'22 Q3'22, % Change _ Investment Type %" GAAP Net Income (Loss) $4.2 $(20.5) ae Per Share $0.03 $(0.16) a Distributable Earnings (Loss) $34.2 $(24.7) na. Per Share $0.27 $(0.19) sil Adjusted Distributable Earnings $35.0 $32.
Slide 14: Q4 Portfolio Detail
Q4 PORTFOLIO DETAIL Loan Portfolio Real Estate Portfolio NNN Other RE Total Number of Investments 103 Total Number of Investments 8 2 Undepreciated Carrying Value / $722M / $213M / ounce) SS58 Carrying Value $608M $16iM Average Investment Size $34M Rentable Square Feet 5.1M 1.3M W.A. % Leased / 100%
Slide 15: Investment Opportunity
INVESTMENT OPPORTUNITY Internalized structure and diversified balance sheet with minimal concentration risk and moderate leverage profile positions the Company to navigate current market environment $Y INTERNALLY MANAGED & VETERAN MANAGEMENT TEAM + Internalized, transparent organizational model with
Slide 16: 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 ‘adiversified portfolio ‘consisting primarily of CRE debt investments and net leased
Slide 17: Appendix
APPENDIX HH BRIG HTSPIRE
Slide 18: Important Note Regarding Non-GAAP Financial Measures and Definitions
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS We present Distributable Eamings, 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
Slide 19: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Assets ‘Cash and cash equivalents: Restricted cash Loans and preferred equity held for investment ‘Current expected credit loss reserve Loans and preferred equity held for investment, net Real estate, net Receivables, net Deferred leasing costs and intangible assets, net ‘
Slide 20: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS ‘Three Months Ended December 1 Year Ended December 51 2022 2021 2022 2021 Net interest income Interest income $ 76056 $ 19.469 $ 236161 $ 168.845 Interest expense (41,336) (05.035), (mos) (55,484) Interest income on mortgage loans held in securtzation trusts 3471
Slide 21: 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 As of December 31, 2022 Consolidated Nei ‘At BRSP share” Assets Loans and preferred equity held for investment, net $ 3aee742 § - $8 3,468,702 Real estate, net 732.468
Slide 22: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
ONCILIATION OF GAAP INFORMATION (CONT'D) N-GAAP FINANCIA Reconciliation of GAAP net book value to undepreciated book value As of December 31, 2022 GAAP net book value (excluding noncontroling interests in investment entities) $ 1,387,768 Accumulated depreciation and amortization" 166,564 Undepreciat
Slide 23: 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 Thee Months Ended Year Ended. December 31, 2022 _December 31, 2022 Net income attributable to BrightSpire Capital, Inc. common stockholder
Slide 24: BrightSpire Capital
BRIGHT SPIRE CAPITAL