Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q4 2021 Earnings Presentation
24 slides from Brightspire Capital's earnings presentation, Feb 22, 2022
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 internally-managed commercial real estate credit REIT with a growing balance sheet BS BRIGHTSPIRE DD CAPITAL O90 Transparent organizational model led by veteran Simple strategy focused on building current and con
Slide 4: Key Metrics Snapshot
KEY METRICS SNAPSHOT Diversified and growing $5.0 billion portfolio primarily comprised of senior loans and net lease assets Quick Facts Investment Portfolio”) New Originations 2021 YTD22") ieee (5) $5.0 Senior mortgage loans Number of Loans 64 0 oon ™ Mezzanine loans -Pewole Total Committed Capital
Slide 5: 2021 Accomplishments & 2022 Priorities
CCOMPLISHMENTS & PRIORITIES BRSP executed on its business plan in 2021 and is well-positioned for 2022 2021 Accomplishments 2022 Priorities Internalized on April 30" and Rebranded to BrightSpire Capital, Inc. on June 24t Deploy Cash on the Balance Sheet while Managing Repayments and Maintaining Flex
Slide 6: Growing & Diversified Loan Portfolio
GROWING & DIVERSIFIED LOAN PORTFOLIO BRSP has grown the portfolio while lowering exposure to large balance loans in 2021 Growth - Shift to Senior Loans” Loan Size — Diversified Risk Concentration" 1 Senior Loans = Subordinate Debt Loan Portfolio $3.58 Loan Portfolio $51-$75M 15% $25-$50M 36% 4'20 4°
Slide 7: Improved Loan Portfolio Risk Profile
IMPROVED LOAN PORTFOLIO RISK PROFILE BRSP significantly improved the risk profile of the portfolio in 2021 Diversification - Increasing Multifamily” Transition — Improving Quality” #0420 5420 ma4ai #0471 ' 1 1 1 1 1 i 16% 1 1 34% 33% 1 1 1 ' — 4 I 1 OFFICE ALL OTHER® NON-PERFORMING DEVELOPMENT ‘Z) 5
Slide 8: Significant Originations Activity
SIGNIFICANT ORIGINATIONS ACTIVITY Building quality earnings through the deployment of cash into first mortgages with a focus on multifamily and office in growth markets Collateral Diversification) Region Diversification) (2) Powerful Originations Platform Producing Results * $2.7B of new origination
Slide 9: Lending Market Update
LENDING MARKET UPDATE CRE Debt Market BRSP Investment Themes ) Lending into the path of growth (@) Economic recovery underway Middle market focus Z) Interest rates remain at historic lows, fueling transaction volume $25 to $50 million average loan size . = . 2 to 3-year initial term ) Expectations o
Slide 10: Total loan requests reviewed
Total loan requests reviewed: $[X]bn2
Slide 11: Prudent Capital Structure
RUDENT CAPIT UR Capital structure provides flexibility and support to drive growth and return on equity Capital Structure Access to Diverse and Efficient Financing Sources * Robust liquidity: $434M of total liquidity, $269M of cash”) 1.9x Debt-to- equity ratio + Successfully amended and restated $16
Slide 12: Reducing the Trading Gap
EDUCING THE TRADING GAP Q4'21 book value of approximately $1.6 billion and BRSP is trading at over a $3 per share discount Trading Discount to Book Value Per Share Reducing the Discount Q4'21 Book Value — @) Deploy Cash on Balance Sheet $3.28/share or ~$435M between current share Investment Portfoli
Slide 13: Q4 Results Summary
Q4 RESULTS SUMMARY ($ in millions, except where noted and per share data) Q4'21 Q3'21 %Change Investment Type % GAAP Net Income (Loss) $81.0 $(70.1) ne Per Share $0.63 $(0.54) “o Distributable Earnings (Loss) $22.9 $(68.4) Per Share $0.17 $(0.51) aed Adjusted Distributable Earnings $36.1 $35.0 ee To
Slide 14: Q4 Portfolio Detail
Q4 PORTFOLIO DETAIL BRSP’s loan portfolio increased 46% year-over-year from $2.4 billion at Q4'20 to $3.5 billion at Q4'21 driven by new senior loan originations Loan Portfolio Real Estate Portfolio NNN Other RE" Total Number of Investments 98 Total Number of Investments 9 3 Carrying Value $3.5B Car
Slide 15: Investment Opportunity
INVESTMENT OPPORTUNITY Internalized structure and prudent balance sheet positions the Company on a path towards substantial earnings growth and shareholder value creation $Y POSITIONED FOR GROWTH + Internalized, transparent organizational model with dedicated employee base of 55 professionals * Liqu
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 Assots ‘Cash and cash equivalents Restricted cash Loans and preferred equity held for investment ‘Alowance for loan losses Loans and preferred equity held for investment, net Real estate secures, available for sole, at fair value Realestate, net Investments in unconsolidat
Slide 20: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS ‘Three Months Ended December 31, Year Ended December 31, 2021 2020. 2021 2020 Net interest income Interest income $ 49469 $ 34848 $ wees § 156,851 Interest expense (95,035) (12,229) (55,484), (63,043) Interest income on mortgage loans held in securtization trusts
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, 2021 Consolidated Nei” ‘At BRSP share! Assets Loans and preferred equity held for investment, net $ 3,409,009 $ - $ 3,449,009 Real estate, net 783,2
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, 2021 GAAP net book value (excluding noncontrolling interests in investment entities) $ 1489,843 Accumulated depreciation and amortization" 153,433, Undeprecia
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 (loss) to Distributable Earnings (Loss) Net income (loss) attributable to BrightSpire Capital, Inc. common stockholders Adjustments: Net income (loss) attributable to noncontrolling interest of the Op
Slide 24: BrightSpire Capital
BRIGHT SPIRE CAPITAL