Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q2 2022 Earnings Presentation
25 slides from Brightspire Capital's earnings presentation, Aug 3, 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, diversified and internally-managed commercial real estate credit REIT BS BRIGHTSPIRE DD CAPITAL Simple strategy focused on current and predictable earnings and sustainable dividends. 9.0% dividend ens Transparen
Slide 4: Key Metrics Snapshot
KEY METRICS SNAPSHOT Diversified $5.3 billion portfolio primarily comprised of senior loans and net lease assets @2'22.-YTD22") Total At-Share Assets ($B) (Undepreciated) $5.3 mSeniormortgageloans |, Number of Loans 9 29 F Portfolio avenanee Gans 82% Total Committed Capital ($M) $306 $987 ‘Enid Aver
Slide 5: Accomplishments & Priorities
CCOMPLISHMENTS & PRIORITIES BRSP had a productive first half of 2022 and is well positioned to navigate the changing macroeconomic environment Increased Earnings @2'22 Adj. Distributable Earnings of $0.24/share (71% growth since QT'21) Prudently Manage Portfolio While Maintaining Sufficient Liquidit
Slide 6: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO BRSP has grown the portfolio while reducing exposure to large balance loans Growth - Shift to Floating Rate Senior Loans! Loan Size — Diversified Risk Concentration" Senior Loans Subordinate Debt Loan Portfolio $3.88 Loan Portfolio 100% '$51-$75M| Floating Rate 14% {Senior
Slide 7: Improved Loan Portfolio
IMPROVED LOAN PORTFOLIO ISK PROFILE BRSP has significantly improved the risk profile of the portfolio Diversification - Increasing Multifamily” Transition — Improving Quality” 9Q221 9Q221 50222 80222 12% 29% |See 25% 10% 16% ox 3% = OFFICE ALL OTHER” NON-PERFORMING DEVELOPMENT 52% multifamily exposu
Slide 8: Lending Market Update
LENDING MARKET UPDATE CRE Debt Market BRSP Investment Themes Heightened macroeconomic volatility from rising G) Middle market focus, value-add business plans inflation, interest rates and geopolitics $25 to $50 million average loan size * Overall slowdown in CRE transaction volumes 2 to 3-year initi
Slide 9: Middle Market Focus
MIDDLE MARKET FOC Lending in the largest and fastest growing markets in the nation to trusted partners Originating in Growth Markets with Repeat Sponsors” Focusing on Middle Market?) $201+ ° ATT) 72% MSAs with above average population Total CRE Market a growth) moyen PO% Transaction size 86%___ < $1
Slide 10: Robust Investment Platform
ROBU NVESTMENT PLATFORM Rigorous underwriting and screen process for each investment Comprehensive Investment Capabilities Screening & Evaluation Process (yTD 2022) % of Investments Evaluated Deep relationships with borrowers and intermediaries ~1,460 / ~$74B 100% Total Investments Underwritten Y) R
Slide 11: Originations Focus
ORIGINATIONS FOC Quality earnings through deployment into first mortgages with a focus on growth markets Collateral Diversification) Region Diversification) (2) Powerful Originations Platform Producing Results * $3.0B of new originations closed since Q3'20 across 98 loans" me Mulsronity sweet Office
Slide 12: 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: $438M of total liquidity, $273M of cash?) 2.2x Debt-to- equity ratio + Moderate leverage ratios with embedde
Slide 13: Reducing the Trading Gap
DUCING THE TRADING GAP Q2'22 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 Q2'22 Book Value $12.42 Investment Portfolio $3.58/share or ~$460M between current share {investment-Level Only) pr
Slide 14: Q2 Results Summary
Q2 RESULTS SUMMARY ($ in millions, except where noted and per share data) Q2'22 Q1I'22. _% Change Investment Type %" GAAP Net Income $34.3 $277 2% Per Share $0.26 $0.21 Distributable Earnings $31.4 $28.8 oe: Per Share $0.24 $0.22 i Adjusted Distributable Earnings $31.4 $28.8 i Total Per Share $0.26
Slide 15: Portfolio Detail
2 PORTFOLIO DETAIL BRSP’s loan portfolio increased 27% year-over-year from $3.0 billion at Q2'21 to $3.8 billion at Q2'22 driven by new senior loan originations Loan Portfolio Real Estate Portfolio NNN Other RE Total Number of Investments 110 Total Number of Investments 8 2 Carrying Value $3.8B Carr
Slide 16: Investment Opportunity
INVESTMENT OPPORTUNITY Internalized structure and diversified balance sheet positions the Company to navigate current market environment, while continuing to grow earnings and create shareholder value $Y STABLE & DIVERSIFIED BALANCE SHEET Internalized, transparent organizational model with dedicated
Slide 17: 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 18: Appendix
APPENDIX HH BRIG HTSPIRE
Slide 19: 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 20: Consolidated Balance Sheet
CONSOLIDATED Assots Cash and cash equivalents Restricted cash Loans held for investment Curent expected credit loss reserve Loans hele for investment, net Realestate, net Receivables, net Deferred leasing costs and intangible assets, net ‘Assets held for sole Other assets (84, 406 and $4,406 at fair
Slide 21: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS “Three Months Ended June 30, 2022 2021 Not interest income Interest income 8 53.08 $ 37921 Interest expense (455), 12.993) Interest income on mortgage loons held in securitization trusts 972 11390 Interest expense on mortgage obligations issued by securitization
Slide 22: 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 June 30, 2022 Consolidated Nom ‘AL BRSP share™ Assets Loans held for investment, net $ 3709u5 $ - $ 3.789.105 Real estate, net 742,079 018 729,061 Deferred leasi
Slide 23: 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 June 30, 2022 GAAP net book value (excluding noncontrolling interests in investment entities) $ 1,452,008 Accumulated depreciation and amortization" 149,709 Undepreciated
Slide 24: 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 to Distributable Earnings and Adjusted Distributable Earnings Three Months Ended ___ une 30,2022 Net income attributable to BrightSpire Capital, nc. common stockholders $ 34,287 Adjustments: Net incom
Slide 25: BrightSpire Capital
BRIGHT SPIRE CAPITAL