Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q3 2024 Earnings Presentation
36 slides from Brightspire Capital's earnings presentation, Oct 29, 2024
Slide 1: Supplemental Financial Report Third Quarter 2024
1 OCTOBER 29, 2024 SUPPLEMENTAL FINANCIAL REPORT THIRD QUARTER 2024 Exhibit 99.2
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
2 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 a
Slide 3: Company Highlights
3 Diversified Portfolio Liquidity & Capitalization Earnings & Dividend $3.9B Total At-Share Assets (Undepreciated) * Refer to the Appendix for a definition and reconciliation to GAAP net income (loss) *** Refer to the Appendix for a definition and reconciliation to GAAP net book value As of Septembe
Slide 4: Summary Results & Subsequent Events Update
4 SUMMARY RESULTS & SUBSEQUENT EVENTS UPDATE PORTFOLIO FINANCIAL RESULTS LIQUIDITY & CAPITALIZATION As of September 30, 2024, unless otherwise stated; at BRSP share See footnotes in the appendix • Closed a $675 million CLO with an 86.5% advance rate and S+2.47% cost of funds (pre-transaction costs);
Slide 5: Financial Overview
5 $9.08 $9.11$0.05 $0.01 ($0.02) ($0.01) $8.50 $8.75 $9.00 $9.25 6/30/24 Undepreciated BVPS Earnings in Excess of Dividends Share Buybacks & Other Non-GAAP RE Impairment Change in CECL Reserve 9/30/24 Undepreciated BVPS 32% 29% 23% 16% <1% Stockholders' equity (undepreciated) Securitization bonds pa
Slide 6: Portfolio Overview
6 80% 20% <1% Loan portfolio Net lease & other real estate CRE debt securities 41% 24% 14% 8% 6% 6% 1%Multifamily Office (loan portfolio) Office (NNN & Other RE) Industrial Hotel Other / Mixed-use Retail Above charts exclude the impact of CECL reserves. In addition, “Property Type” chart excludes CR
Slide 7: Loan Portfolio Overview
7 $2,754 $2,586 $15 ($127) ($48) ($8) 6/30/24 Loan Portfolio Additional Loan Fundings Total Repayments REO Other 9/30/24 Loan Portfolio Above charts based on GAAP gross carrying value and excludes the impact of CECL reserves $ in millions, unless otherwise stated; as of September 30, 2024, unless ot
Slide 8: Loan Portfolio Diversification
8 Collateral Type Region Exposure as a % of Carrying Value (At BRSP share) Number of investments Carrying value % of carrying value West Southwest Northeast Southeast Multifamily 42 1,306,911$ 51% 19% 27% 2% 3% Office 24 827,263 32% 16% 8% 5% 3% Hotel 3 220,550 8% 8% -- 0% -- Other / Mixed-use 5 195
Slide 9: Loan Portfolio Summary
9 (At BRSP share) Number of investments Carrying value % of carrying value Net carrying value W.A. unlevered all-in yield(1) W.A. extended term (years)(13) Floating rate Senior mortgage loans 73 2,530,961$ 98% 689,872$ 8.2% 1.7 Mezzanine loans 1 12,450 0% 12,450 15.8% 0.0 Total / W.A. floating rate
Slide 10: Loan Portfolio Maturities
10 LOAN PORTFOLIO MATURITIES Fully Extended Loan Maturities(13) $226 $507 $1,023 $830 $10 $16 $48 $34 $0 $250 $500 $750 $1,000 $1,250 2024 2025 2026 2027+ Fully extended loan maturities (carrying value) Unfunded commitments $ in M ill io ns Weighted average fully extended remaining term of approxima
Slide 11: Loan Portfolio Risk Rankings & CECL Reserve
11 0% 0% 80% 15% 5% 0% 0% 82% 11% 7% 1 2 3 4 5 Q2'24 Q3'24 Risk Ranking Overview LOAN PORTFOLIO RISK RANKINGS & CECL RESERVE Above charts based on GAAP gross carrying value and excludes the impact of CECL reserves, unless otherwise stated As of September 30, 2024, unless otherwise stated; at BRSP sh
Slide 12: Net Lease Real Estate & Other Real Estate Summary
12 58%29% 9% 4% Office Industrial Multifamily Retail NET LEASE REAL ESTATE & OTHER REAL ESTATE SUMMARY Europe 23% 75% 25% <1% 5.0+ 2.5 - 5.0 <2.5 Region Property Type W.A. Remaining Lease Term(18) West 35% Northeast 18% Midwest 15% Southwest 9% * Q3’24 NOI in the above table excludes NOI related to
Slide 13: Loan Portfolio Watch List Loans
13 LOAN PORTFOLIO WATCH LIST LOANS * Loans that are on non-accrual status As of September 30, 2024, unless otherwise stated; at BRSP share See footnotes in the appendix Investment San Jose, CA Senior Loan (Loan 67) Fort Worth, TX Senior Loan (Loan 8) Santa Clara, CA Senior Loan (Loan 1) Las Vegas, N
Slide 14: Loan Portfolio Watch List Loans (Cont'd)
14 LOAN PORTFOLIO WATCH LIST LOANS (CONT’D) As of September 30, 2024, unless otherwise stated; at BRSP share See footnotes in the appendix Investment Denver, CO Senior Loan (Loan 10) Reston, VA Senior Loan (Loan 50) Dallas, TX Senior Loan (Loan 51) Richardson, TX Senior Loan (Loan 65) Risk Ranking (
Slide 15: Real Estate Owned
15 REAL ESTATE OWNED As of September 30, 2024, unless otherwise stated; at BRSP share See footnotes in the appendix Investment Multifamily Arlington, TX (Other Real Estate 3) Multifamily Phoenix, AZ (Other Real Estate 4) Office Long Island City, NY (Other Real Estate 5) Office Long Island City, NY (
Slide 16: Investment Detail
16 Origination Carrying Coupon Cash Unlevered Extended Q3'24 Risk Q2'24 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% 10.3% Feb-25 69% 4 4 Loan 2 Sen
Slide 17: Investment Detail (Cont'd)
17 Origination Carrying Coupon Cash Unlevered Extended Q3'24 Risk Q2'24 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 Jul-21 Aurora, CO 21 Floating S+3.2% 8.1% Jul-26 73% 3 3 Loan 34 Senior Jan-22 Austin,
Slide 18: Investment Detail (Cont'd)
18 Origination Carrying Coupon Cash Unlevered Extended Q3'24 Risk Q2'24 Risk (At BRSP share) Investment Type date City, State value type coupon all-in yield(1) maturity date(13) LTV ranking ranking Office Loan 63 Senior Aug-21 Los Angeles, CA 16$ Floating S+4.6% 9.5% Sep-26 58% 3 3 Loan 64 Senior No
Slide 19: Investment Detail (Cont'd) CRE Debt Securities
19 INVESTMENT DETAIL (CONT’D) CRE Debt Securities * Q3’24 NOI in the above table excludes NOI related to the sale of one other real estate office property, which was sold during the third quarter 2024 ** The current maturity of the debt on Other real estate 1 is October 2024. We are currently negoti
Slide 20: Capitalization Highlights
20 As of September 30, 2024, unless otherwise stated; at BRSP share See footnotes in the appendix 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 corpora
Slide 21: Capitalization Summary
21 Note: during the third quarter 2024, the Company recorded approximately $1.7M of amortization of deferred financing costs, which implies approximately 17 bps of annualized financing costs on the Company’s total debt capacity as of September 30, 2024 $ in thousands; as of September 30, 2024; at BR
Slide 22: Interest Rate Sensitivity
22 * Reflects incremental changes to SOFR spot rate as of September 30, 2024 $ in millions, except per share data; as of September 30, 2024; at BRSP share 100% of senior mortgage loan value is floating rate INTEREST RATE SENSITIVITY Annual Net Interest Income Sensitivity to Changes in Benchmark Rate
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Slide 24: Important Note Regarding Non-GAAP Financial Measures and Definitions
24 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
Slide 25: Pro Rata Financial Information Note
25 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 applying its economic interest to each financial statement line item on an i
Slide 26: Notes Regarding Reportable Segments
26 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 Prefe
Slide 27: Consolidated Balance Sheet
27 $ in thousands, except per share data; as of September 30, 2024, unless otherwise stated CONSOLIDATED BALANCE SHEET September 30, 2024 (Unaudited) December 31, 2023 Assets Cash and cash equivalents 263,763$ 257,506$ Restricted cash 175,383 104,583 Loans held for investment 2,586,341 2,936,506 Cur
Slide 28: Consolidated Statement of Operations
28 In thousands, except per share data; as of September 30, 2024, unless otherwise stated; unaudited CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended September 30, 2024 2023 Net interest income Interest income 59,587$ 75,630$ Interest expense (38,862) (43,647) Net interest income 20,725 31,98
Slide 29: Consolidated Statement of Operations by Segment
29 $ in thousands; as of September 30, 2024; unaudited CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT Three Months Ended September 30, 2024 Loans and preferred equity Net leased and other real estate Corporate and other Total Net interest income Interest income $ 59,166 352$ 69$ 59,587$ Interest ex
Slide 30: Reconciliation of GAAP to Non-GAAP Financial Information
30 Reconciliation of consolidated balance sheet to at share balance sheet In thousands, except per share data; as of September 30, 2024; unaudited See footnotes in the appendix RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION As of September 30, 2024 Consolidated NCI(22) At BRSP share(23) As
Slide 31: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
31 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) Reconciliation of GAAP net book value to undepreciated book value In thousands, except per share data; as of September 30, 2024; unaudited See footnotes in the appendix As of September 30, 2024 GAAP net book value (excluding noncon
Slide 32: Reconciliation of GAAP Net Income to Distributable Earnings
32 Reconciliation of GAAP net income to Distributable Earnings and Adjusted Distributable Earnings In thousands, except per share data; as of September 30, 2024; unaudited See footnotes in the appendix RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) Three Months Ended September 30,
Slide 33: Reconciliation of GAAP Net Income to NOI
33 Reconciliation of GAAP net income to NOI $ in thousands; as of September 30, 2024; unaudited See footnotes in the appendix RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONT’D) Three Months Ended September 30, 2024 Net income attributable to BrightSpire Capital, Inc. common stockholde
Slide 34: Footnotes
34 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 as of Se
Slide 35: Company Information
35 COM P AN Y IN F OR M ATION 35 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
Slide 36: DB@ BRIGHTSPIRE
DB@ BRIGHTSPIRE