Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q4 2024 Earnings Presentation
37 slides from Brightspire Capital's earnings presentation, Feb 19, 2025
Slide 1: Supplemental Financial Report Fourth Quarter 2024
FEBRUARY 18, 2025 SUPPLEMENTAL FINANCIAL REPORT FOURTH QUARTER 2024 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: Company Highlights
COMPANY HIGHLIGHTS BrightSpire Capital, Inc. (“BRSP” or the “Company”) is a large publicly-traded, diversified and internally- managed commercial real estate credit REIT Diversified Portfolio Liquidity & Capitalization Earnings & Dividend $3.8B $2.5B $418M $253M $0.18 Total At-Share Assets Total Loa
Slide 4: Summary Results & Subsequent Events Update
SUMMARY RESULTS & SUBSEQUENT EVENTS UPDATE • Q4’24 and full year 2024 GAAP Net Loss of ($0.16) per share and ($1.05) per share, respectively • Q4’24 and full year 2024 Distributable Earnings of $0.11 per share and $0.55 per share, respectively FINANCIAL • Q4’24 and full year 2024 Adjusted Distributa
Slide 5: Financial Overview
FINANCIAL OVERVIEW Key Financial Metrics Capital Structure GAAP Net Loss ($M) ($19.7) 1% Per Share ($0.16) 16% Stockholders' equity (undepreciated) 32% Securitization bonds payable (non-recourse) Distributable Earnings ($M) $13.7 Per Share $0.11 Total capitalization Master repurchase facilities (lim
Slide 6: Financial Performance
FINANCIAL PERFORMANCE Earnings Per Share Book Value Per Share GAAP Net Book Value Undepreciated Book Value Adjusted Distributable Earnings $10.67 $9.10 $9.08 $9.11 $8.89 $0.23 $8.41 $8.39 $8.08 $0.22 $0.21 $0.20 Quarterly $0.18 Dividend $0.16 Quarterly Dividend Q1’24 Q2’24 Q3’24 Q4’24 Q1’24 Q2’24 Q3
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW Investment Type Portfolio Overview Based on GAAP net carrying value as of December 31, 2024 Investment Carrying Net carrying (At BRSP share) count value value Per share <1% Senior mortgage loans 74 $ 2,474 $ 665 $ 5.13 Loan portfolio 20% Mezzanine loans 2 45 45 0.35 Net lease & ot
Slide 8: Loan Portfolio Overview
LOAN PORTFOLIO OVERVIEW Overview Investment Type Property Type 76 Total number of investments 2% 1% $2.5B Total loan portfolio 8% 9% $33M Average investment size 51% 0.4 yrs. W.A. remaining term(12) 31% 1.6 yrs. W.A. extended remaining term(13) 98% 7.6% W.A. unlevered all-in yield(1) 3.2 W.A. risk r
Slide 9: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Collateral Type Region Exposure as a % of Carrying Value Number of Carrying % of carrying West Southwest Northeast Southeast (At BRSP share) investments value value Multifamily 43 $ 1,292,316 51% 20% 26% 2% 4% Office 23 768,617 31% 14% 8% 5% 3% Mixed-use & Other 6 214,
Slide 10: Loan Portfolio Summary
LOAN PORTFOLIO SUMMARY Number of Carrying % of Net carrying W.A. unlevered W.A. extended (11) (10) (At BRSP share) investments value carrying value value all-in yield term (years) Floating rate Senior mortgage loans 74 $ 2,473,793 98% $ 665,353 7.6% 1.6 Total / W.A. floating rate 74 2,473,793 98% 66
Slide 11: Loan Portfolio Maturities
LOAN PORTFOLIO MATURITIES Weighted average fully extended remaining term of approximately 1.6 years across the loan portfolio Fully Extended Loan Maturities(13) $1,250 Fully extended loan maturities (carrying value) Unfunded commitments $1,000 $ in Millions $750 $500 $986 $833 $648 $250 $41 $31 $53
Slide 12: Loan Portfolio Risk Rankings & CECL Reserve
LOAN PORTFOLIO RISK RANKINGS & CECL RESERVE Risk Ranking Overview CECL Reserve Overview Q3'24 Q3’24 W.A. Risk Ranking: 3.2 Specific CECL Reserve No specific CECL reserve on Q4’24 W.A. Risk Ranking: 3.2 balance sheet for Q3’24 & Q4’24 Q4'24 General CECL Reserve 84% 82% Loan Loan Count Count Total Res
Slide 13: Net Lease Real Estate & Other Real Estate Summary
NET LEASE REAL ESTATE & OTHER REAL ESTATE SUMMARY Rentable % of net W.A. % W.A. Carrying Net carrying Q4'24 NOI Number of BRSP square feet carrying leased remaining value value (at BRSP investments ownership % ("RSF") / value at end of lease term (Undep.) (Undep.) share) Units (Undep.) period(17) (y
Slide 14: Loan Portfolio Watch List Loans
LOAN PORTFOLIO WATCH LIST LOANS San Jose, CA Santa Clara, CA Las Vegas, NV Tualatin, OR Reston, VA Denver, CO Dallas, TX Investment Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan (Loan 67) (Loan 1) (Loan 2) (Loan 47) (Loan 50) (Loan 9) (Loan 51) Risk Ranking (Q4’
Slide 15: Real Estate Owned
REAL ESTATE OWNED Multifamily Multifamily Multifamily Office Office Office* Investment Arlington, TX Phoenix, AZ Fort Worth, TX Long Island City, NY Long Island City, NY Oakland, CA (Other Real Estate 3) (Other Real Estate 4) (Other Real Estate 5) (Other Real Estate 6) (Other Real Estate 7) (Other R
Slide 16: Investment Detail
INVESTMENT DETAIL Loan Portfolio Origination Carrying Coupon Cash Unlevered Extended Q4'24 Risk Q3'24 Risk (At BRSP share) Investment Type date City, State value type coupon all-in yield(1) maturity date(13) LTV ranking ranking Multifamily Loan 1 * Senior Jun-19 Santa Clara, CA $ 57 Floating S+5.5%
Slide 17: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT’D) Loan Portfolio (Cont’d) Origination Carrying Coupon Cash Unlevered Extended Q4'24 Risk Q3'24 Risk (At BRSP share) Investment Type date City, State value type coupon all-in yield(1) maturity date(13) LTV ranking ranking Loan 33 Senior Jan-22 Austin, TX 20 Floating S+3.4% 7.
Slide 18: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT’D) Loan Portfolio (Cont’d) Origination Carrying Coupon Cash Unlevered Extended Q4'24 Risk Q3'24 Risk (At BRSP share) Investment Type date City, State value type coupon all-in yield(1) maturity date(13) LTV ranking ranking Office Loan 64 Senior Nov-21 Charlotte, NC $ 15 Floati
Slide 19: Investment Detail (Cont'd)
INVESTMENT DETAIL (CONT’D) Net Lease Real Estate & Other Real Estate Undepreciated Origination Collateral Undepreciated net carrying Q4'24 # of Rentable square W.A. W.A. lease (At BRSP share) date type City, State carrying value value NOI properties feet ("RSF") / Units % leased(17) term (yrs)(18) N
Slide 20: Capitalization Highlights
CAPITALIZATION HIGHLIGHTS Diversified capital structure of primarily non-recourse debt and a 2.2x debt-to-equity ratio. Embedded capacity under existing financing facilities including an undrawn corporate revolver and $1.2B of repurchase facilities availability Key Financial Metrics Capital Structur
Slide 21: Capitalization Summary
CAPITALIZATION SUMMARY Recourse vs. W.A. extended W.A. contractual W.A. all-in Outstanding (20) (21) (21) (5) (At BRSP share) non-recourse maturity interest rate COF debt (UPB) Corporate debt Corporate revolving credit facility Recourse Jan-27 S + 2.25% 6.70% $ - Investment-level debt Master repurch
Slide 22: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY 100% of senior mortgage loan value is floating rate Annual Net Interest Income Sensitivity to Changes in Benchmark Rates – Total Portfolio SOFR: 4.33% (As of December 31, 2024) $2.0 $1.0 $1.1 $0.0 $0.01 per share ($1.1) $ in Millions ($1.0) ($0.01) ($2.1) per share ($2.0) (
Slide 23: Appendix
APPENDIX BRIGHTSPIRE APITAL
Slide 24: 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 25: Important Note Regarding Non-GAAP Financial Measures and Definitions (Cont'd)
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES AND DEFINITIONS (CONT’D) The Company presents pro rata (“at share” or “at BRSP share”) financial information, which is not, and is not intended to be, a presentation in accordance with GAAP. The Company computes pro rata financial information by a
Slide 26: 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 27: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET December 31, 2024 December 31, 2023 Assets Cash and cash equivalents $ 302,173 $ 257,506 Restricted cash 148,523 104,583 Loans held for investment 2,518,925 2,936,506 Current expected credit loss reserve (165,932) (76,028) Loans held for investment, net 2,352,993 2,860,478
Slide 28: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net interest income Interest income $ 54,305 $ 73,118 $ 244,773 $ 298,702 Interest expense (36,848) (42,905) (153,910) (173,309) Net interest income 17,457 30,213 90,863 125,393 Property
Slide 29: Consolidated Statement of Operations by Segment
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT Three Months Ended December 31, 2024 Loans and Net leased and Corporate and preferred equity other real estate other Total Net interest income Interest income $ 54,278 $ (41) $ 68 $ 54,305 Interest expense (36,473) (68) (307) (36,848) Net interest inco
Slide 30: Consolidated Statement of Operations by Segment
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT Year Ended December 31, 2024 Loans and Net leased and Corporate and preferred equity other real estate other Total Net interest income Interest income $ 244,159 $ 342 $ 272 $ 244,773 Interest expense (152,417) (272) (1,221) (153,910) Net interest incom
Slide 31: 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 December 31, 2024 (22) (23) Consolidated NCI At BRSP share Assets Loans and preferred equity held for investment, net $ 2,352,993 $ - $ 2,352,993 Real estate, net 77
Slide 32: 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 December 31, 2024 GAAP net book value (excluding noncontrolling interests in investment entities) $ 1,048,218 (10) Accumulated depreciation and amortization 232,
Slide 33: 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 Earnings and Adjusted Distributable Earnings Three Months Ended Year Ended December 31, 2024 December 31, 2024 Net loss attributable to BrightSpire Capital, Inc. common stockholders $
Slide 34: 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 December 31, 2024 Net loss attributable to BrightSpire Capital, Inc. common stockholders $ (19,744) Adjustments: Net loss attributable to non-net leased and other real estate
Slide 35: Footnotes
FOOTNOTES 1. In addition to the stated cash coupon rate, unlevered all-in yield includes non-cash PIK interest income and the accrual of origination and exit fees. For W.A. calculations, unlevered all-in yield for the loan portfolio assumes the applicable floating benchmark rate or benchmark floor a
Slide 36: 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 37: Thank You
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