Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Colony Credit Real Estate — Q1 2021 Earnings Presentation
24 slides from Brightspire Capital's earnings presentation, May 5, 2021
Slide 1: Investor Presentation May 5, 2021
Exhibit 99.3 INVESTOR PRESENTATION May 5, 2021Exhibit 99.3 INVESTOR PRESENTATION May 5, 2021
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: 2021 Accomplishments & Priorities
2021 Accomplishments & Priorities YTD 2021 Accomplishments 2021 Priorities Closed Internalization Transaction on April 30, 2021 Achieve Internalization Cost Savings Reinstated Quarterly Dividend for Q1 21 ($0.10/share) Deploy Cash on Balance Sheet while Maintaining Strong Liquidity Position Increase
Slide 4: Completed Internalization of Management and Operating Functions
On April 30, 2021, CLNC completed an internalization of management and operating functions and termination of the management agreement with Colony Capital, Inc. The tran produce meaningful results Cost Savings through Management Further Aligns Rebranding to Reflect Reduction in Operating Continuity
Slide 5: Company Highlights
Company Highlights Leading internalized commercial real estate credit REIT with conservative balance sheet poised for growth Stable & Growing Portfolio Robust Liquidity of Primarily Senior Loans & Net Lease Assets $4.1B $1.0B $443M $330M (3) Total At-Share Assets New Senior Loan Originations Total L
Slide 6: CLNC Has Transitioned to Offense After Protecting the Balance Sheet
CLNC has transitioned to offense after decisive actions to protect the balance sheet in response to COVID-19 13% Growing Portfolio (1) Loan Portfolio Growth senior loan • $4.1B total at-share assets Subordinate Debt increase Senior Loans • $2.7B loan portfolio (including $2.4B of senior loans) since
Slide 7: Significant New Originations Activity
Significant New Originations Activity Building quality earnings through the deployment of cash into first mortgages with a focus on multifamily and office in growing markets Convert Liquidity into New First Mortgage Collateral Diversification Loan Originations Office 17% • $330M cash on hand to fund
Slide 8: Lending Market Update
Lending Market Update The debt market remains open for quality loans and the macro landscape for debt is favorable with a clear path to economic recovery CRE Debt Market CLNC Investment Themes Economic recovery underway Middle market focus Volatility in treasuries and steepening yield $25 to $50 mil
Slide 9: Robust Investment Platform
Robust Investment Platform Rigorous underwriting and screening process for each investment Comprehensive Investment Capabilities Screen & Evaluation Process (Since September 2020) % of 45 dedicated professionals throughout the U.S. Investments Evaluated Total Investments Evaluated # of Investments /
Slide 10: Portfolio Transition Substantially Complete
Portfolio Transition Substantially Complete CLNC has transitioned its portfolio to floating rate first mortgages, while reducing exposure to the other investment types (1) (1) Investment Type (%) Core Portfolio vs. Legacy, Non-Strategic Portfolio (2) (3) Loan Portfolio NNN & Other RE CRE Debt Securi
Slide 11: CLNC Is Reducing The Discount
CLNC Is Reducing The Discount is trading at a $530 million discount, or $4 per share Trading Discount to Book Value Per Share Reducing the Discount Deploy Cash on ~$4/share or Balance Sheet ~$530M between Investment Portfolio Book Value (Investment-Level Only) current share price (3) $10.40 $12.84 a
Slide 12: Q1 Summary Results
Q1 Summary Results (1) ($ in millions, except where noted and per share data) Q1 21 Investment Type (%) GAAP Net Loss ($92.3) Per Share ($0.71) CRE Debt Securities 6% Distributable Earnings $13.8 Net Lease & Per Share $0.10 Other Real Estate 13% Adjusted Distributable Earnings $18.0 Per Share $0.14
Slide 13: Q1 Portfolio Detail
Q1 Portfolio Detail Total loan portfolio increased 17% from $2.3 billion at year-end 2020 to $2.7 billion as a result of new senior loan originations in Q1 (1) Loan Portfolio Real Estate Portfolio NNN Other RE Total Number of Investments 9 3 Total Number of Investments 64 Carrying Value $2.7B Carryi
Slide 14: Prudent Capital Structure Positioned for Growth
Prudent Capital Structure Positioned for Growth Current capital structure provides flexibility and support to drive growth and return on equity Capital Structure Access to Diverse and Efficient Financing Sources (1) • Robust liquidity: $443M of total liquidity, $330M of unrestricted cash 5% • Modera
Slide 15: Investment Opportunity
Investment Opportunity Internalized structure and strong balance sheet positions the Company on a path towards substantial earnings growth and shareholder value creation Positioned for Growth A Simple Game Plan Stable and Recurring Earnings • Internalized, transparent organizational model • Deploy c
Slide 16: Company Information
Company Information Colony Credit Real Estate (NYSE: CLNC) is 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 properties predomi
Slide 17: Appendix
APPENDIX ColonyCredit REAL ESTATE
Slide 18: 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 19: Consolidated Balance Sheet
Consolidated Balance Sheet $ in thousands, except share data; as of March 31, 2021, unless otherwise stated 19Consolidated Balance Sheet $ in thousands, except share data; as of March 31, 2021, unless otherwise stated 19
Slide 20: Consolidated Statements of Operations
Consolidated Statements of Operations In thousands, except per share data; as of March 31, 2021, unless otherwise stated; Unaudited 20Consolidated Statements of Operations In thousands, except per share data; as of March 31, 2021, unless otherwise stated; Unaudited 20
Slide 21: Reconciliation of Consolidated Balance Sheet to at CLNC Share
Reconciliation of GAAP to Non-GAAP Financial Information Reconciliation of Consolidated Balance Sheet to at CLNC Share Balance Sheet In thousands, except per share data; as of March 31, 2021, unless otherwise stated; Unaudited 1) Represents interests in assets held by third party partners 21 2) Repr
Slide 22: Reconciliation of GAAP Net Book Value to Undepreciated Book Value
Reconciliation of GAAP Net Book Value to Undepreciated Book Value In thousands, except per share data; as of March 31, 2021, unless otherwise stated; Unaudited 1) Represents net accumulated depreciation and amortization on real estate investments, including related intangible assets and liabilities
Slide 23: Reconciliation of GAAP Net Loss to Distributable Earnings
Reconciliation of GAAP Net Loss to Distributable Earnings Reconciliation of Distributable Earnings to Adjusted Distributable Earnings In thousands, except per share data; as of March 31, 2021, unless otherwise stated; Unaudited 1) The Company calculates Distributable Earnings and Adjusted Distributa
Slide 24: Colony Credit Real Estate
ColonyCredit EAL ESTATE
Colony Credit Real Estate — Q1 2021 Earnings Presentation on 6ix