Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q3 2022 Earnings Presentation
33 slides from Brightspire Capital's earnings presentation, Nov 2, 2022
Slide 1: Exhibit 99.2
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: Company Highlights
COMPANY HIGHLIGHTS BrightSpire Capital, Inc. (“BRSP” or the “Company”) is a large scale, diversified and internally-managed commercial real estate credit REIT $5.3B $3.9B Total At-Share Assets Total Loan (Undepreciated) Portfolio Diversified Portfolio +111 total loans, $35M average size +97% floatin
Slide 4: Third Quarter & Subsequent Events Update
THIRD QUARTER & SUBSEQUENT EVENTS UPDATE FINANCIAL RESULTS Net loss of ($20.5) million, or ($0.16) per share Distributable Loss of ($24.7) million, or ($0.19) per share Adjusted Distributable Earnings of $32.3 million, or $0.25 per share GAAP net book value of $10.87 per share and undepreciated book
Slide 5: Financial Overview
FINANCIAL OVERVIEW Key ial Metrics Capital Structure GAAP Net Loss ($M) ($20.5) Per Share ($0.16) ™ Stockholders’ equity (undepreciated) Distributable Loss ($M) ($24.7) = Master repurchase facilities (limited recourse) Per Share ($0.19) Heel capitalization ™ Securitization bonds payable (non-recours
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net carrying value as of September 30, 2022 Investment Carrying —Net carrying (At BRSP share) count value value Per share Senior mortgage loans 105 $ 3743 $ 834 $ 6.47 "Loan portfolio Mezzanine loans 6 m ™m 0.86 Net lease & other re
Slide 7: Loan Portfolio Highlights
LOAN PORTFOLIO HIGHLIGHTS $1.0B $34M 7.3% 100% 68% Total Average loan size W.A. unlevered % floating rate W.A. loan-to-value commitments’) (total commitments) all-in yield" {senior loans only) (senior loans only) Loan Portfolio Activity 10%* YTD loan growth 22% YoY loan growth $837 $87 ($42) ($528)
Slide 8: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW Total number of investments $3.9B Total loan portfolio $35M Average investment size Northeast 4% 1.2 yrs. W.A. remaining term") 3.3 yrs. W.A. extended remaining term 7.2% W.A. unlevered all-in yield 3.1 W.A. risk ranking Senior mortgage loans 9, E 100% of senior loans are flo
Slide 9: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Region Exposure as a % of Carrying Value Collateral Type IsoRspshre) __mvertnens___ “vate” woo" ce oe Multifamily o7 $ 2,051,243 53% 21% 28% 1% 3% Office 32 1,185,592 31% 14% S% 9% 3% Hotel 5 418,415 1% n% aint 0% an Mixed-use 4 150,358 4% al so 4% ae Industrial 3 48,6
Slide 10: Loan Portfolio Summary
LOAN PORTFOLIO SUMMARY Number of extended (At BRSP share) vestments carrying value term (years) Floating rate Senior mortgage loans 105 $ 3,742,972 97% $ 834,075 7.0% 34 Mezzanine loans 1 12,120 0% 12,120 14.1% 0.0 Total / W.A. floating rate 106 3,755,092 97% 846,195 7.0% 3.3 Fixed rate Mezzanine lo
Slide 11: Loan Portfolio Maturities
LOAN PORTFOLIO MATURITIES Weighted average fully extended remaining term of approximately 3.3 years across the loan portfolio Fully Extended Loan Maturities") $1,750 = Fully extended loan maturities (carrying value) $1500 = Unfunded commitments $1,250 a 5 $1,000 = $750 we $500 $250 $46 <$o. $148 $3
Slide 12: Net Lease Real Estate & Other Real Estate Summary
NET LEASE REAL ESTATE & OTHER REAL ESTATE SUMMARY Rentable ; 4 W.A. % leased |W.A. remaining Number of | BRSP Carrying | %ofearrying | Net carrying | @3'22 NOI A ‘a square feet at end of lease term investments |ownership % aes value value value —_| (at BRSP share) oe 6) (At BRSP share) esa) period (
Slide 13: Investment Detail
INVESTMENT DETAIL Loan Portfolio Origination Carrying Coupon Cosh Unlevered Extended Risk (At BRSP share} date Collateral type City, State value type coupon alltin yield"? __ maturity date™! uv ranking [Senior loans Loan Jan-18 Hotel San Jose, CA $ 185 Floating L4.8% 19% Nov-26 719% 4 Loan 2 Jun-19
Slide 14: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Loan Portfolio (Cont'd) Origination Carrying Coupon Cosh Unlevered Extended Risk (At BRSP share} date Collateral type City, State value type coupon alltin yield"? __ maturity date™! uv ranking [Senior loans Loan a ** May-19 Office Long Island City, NY 4 n/a n/a n/a Jun-24
Slide 15: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Loan Portfolio (Cont'd) Origination Carrying Coupon Cash Unlevered Extended Risk (At BRSP share} date Collateral type City, State value type coupon all-inyield"”__maturity date? uv ranking [Senior loans Loan 81 Sep-21 Multifamily Denton, TX 1 Floating Ls3.2% 61% Oct-25 70%
Slide 16: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT'D) Net Lease Real Estate & Other Real Estate Origination Undepreciated Carrying 322 #of tof Rentable square W. W.A. lease (At BRSP share) date Collateraltype _City, State carrying value value NOI properties buildings feet ("RSF") % leased" term (yrs)! Net lease real estate Ne
Slide 17: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Diversified capital structure of primarily non-recourse debt and a 2.3x debt-to-equity ratio. Embedded capacity under existing financing facilities including an undrawn corporate revolver and $815M of repurchase facilities availability Key Financial Metrics Capital Structur
Slide 18: Capitalization Summary
CAPITALIZATION SUMMARY W.A. contractual Outstanding (At BRSP share) interest rate debt (UPB) Corporate debt Corporate revolving credit facility Recourse Jan-27 S$ +2.25% 5.41% $ - Investment-level debt Master repurchase facilities Limited recourse Aug-26 L/S +1.96% 5.02% 1,533,667 Securitization bon
Slide 19: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY BRSP's portfolio is positioned to benefit in a rising rate environment 2) 100% of senior mortgage loan value is floating rate 2) 77% of floating rate senior mortgage loan value is indexed to one-month USD LIBOR and 23% to SOFR ‘tal Portfolio ity to Changes in Benchmark Rate
Slide 20: Appendix
APPENDIX BS BRIGHTSPIRE
Slide 21: 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 flow from operating activities determined in accordance with GAAP, and t
Slide 22: Important Note Regarding Non-GAAP Financial Measures and Definitions (Cont'd)
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS (CONT'D) NOI should not be considered as an alternative to net income (loss), determined in accordance with GAAP, as an indicator of operating performance. In addition, our methodology for calculating NOI involves subjective judgme
Slide 23: Notes Regarding Reportable Segments
NOTES REGARDING REPORTABLE SEGMENTS BrightSpire Capital, Inc. ("BRSP", “BrightSpire Capital", the "Company” or “We") currently holds investment interests through the reportable segments below, which are based on how management reviews and manages its business. Senior and Mezzanine Loans and Preferre
Slide 24: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET ‘September 30, 2022 __tunaugited) _ December 31, 2021 Assets Cash and cash equivalents $ 286,456 $ 259,722 Restricted cash 104,868 86,841 Loans held for investment 3,971,436 3,485,607 Current expected credit loss reserve (85,589) (36,598) Loans held for investment, net $82
Slide 25: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS ‘Three Months Ended September 30, 2022 2021 Net interest income Interest income $ 63671 $ 47,082 Interest expense (52,944) (14,962) Interest income on mortgage loans held in securitization trusts 9,597 10,806 Interest expense on mortgage obligations issued by sec
Slide 26: Consolidated Statement of Operations by Segment
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT Net interest income Interest income Interest expense Interest income on mortgage loans held in securitization trusts Interest expense on mortgage obligations issued by securitization trusts Net interest income Property and other income Property operati
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Information
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION Reconciliation of consolidated balance sheet to at share balance sheet As of September 30, 2022 Consolidated nei?" AtBRSP share”? Assets Loans held for investment, net $ 3,825,847 $ - $ 3,825,847 Real estate, net 715,529 12,936 702,593 Deferre
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT'D) Reconciliation of GAAP net book value to undepreciated book value As of September 30, 2022 GAAP net book value (excluding noncontrolling interests in investment entities) $ 1,401,900 Accumulated depreciation and amortization” 155,409
Slide 29: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT'D) Reconciliation of GAAP net loss to Distributable Loss and Adjusted Distributable Earnings Three Months Ended September 30, 2022 Net loss attributable to BrightSpire Capital, Inc. common stockholders $ (20,463) Adjustments. Non-cash eq
Slide 30: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT'D) Reconciliation of GAAP net loss to NOI Three Months Ended September 30, 2022 Net loss attributable to BrightSpire Capital, Inc. common stockholders $ (20,463) Adjustments: Net loss attributable to non-net leased and other real estate
Slide 31: Footnotes
FOOTNOTES 1. Includes availability under the corporate revolving credit facility and unrestricted cash as of October 28, 2022 2. Asof October 28, 2022 3. Debt-to-equity ratio based on BRSP’s share of total outstanding unpaid principal balance ("UPB") divided by total stockholders’ equity excluding t
Slide 32: 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 a diversified portfolio consisting primarily of CRE debt investments and net leased p
Slide 33: BrightSpire Capital
BRIGHT SPIRE CAPITAL