Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Q1 2022 Earnings Presentation
25 slides from Brightspire Capital's earnings presentation, May 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 mecning 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 HIGHLIG BrightSpire Capital, Inc. (“BRSP" or the “Company’) is a large scale internally-managed commercial real estate credit REIT with a growing balance sheet De Bs PRIGHTSPIRE Simple strategy focused on building current and [oKe} izati Transparent organizational model led by veteran predic
Slide 4: Key Metrics Snapshot
KEY METRICS SNAPSHOT Diversified and growing $5.2 billion portfolio primarily comprised of senior loans and net lease assets Investment Portfolio® New Originations @r22 YTD22") Total At-Share Assets ($B) (Undepreciated) $5.2 m Senior mortgage loans ; Number of Loans 7 27 oan |= Mezzanine loans Pale
Slide 5: Accomplishments & Priorities
CCOMPLISHMENTS & PRIORITIES BRSP had a strong start to 2022 and is well-positioned to continue executing on its business plan Recent Accomplishments OWOVVOO BRIGHTSPIRE % CAPITAL Increased Earnings Q1'22 Adj. Distributable Earnings of $0.22/share (57% growth since QI'21) Five Consecutive Quarterly D
Slide 6: Growing & Diversified Loan Portfolio
R G & DIVERSIFIED LOAN PORTFOLIO BRSP has grown the portfolio while lowering exposure to large balance loans Growth - Shift to Senior Loans"? Loan Size — Diversified Risk Concentration" Senior Loans Subordinate Debt Loan Portfolio $3.88 Loan Portfolio v2 122 x~ $3.8B loan portfolio, up from $2.8B ye
Slide 7: Improved Loan Portfolio Risk Profile
IMPROVED LOAN PORTFOLIO RISK PROFILE BRSP has improved the risk profile of the portfolio Diversification - Increasing Multifamily” Transition - Improving Quality” 2Q121 212 mQ122 5122 ae 1 ' 1 ! 1 ' 1 ‘ 54% ff 41% 1 1% 13% i ' 31% 30% 28% = . | 1 16% ie ths 1 6 % ‘ 1 _ i 0% “all 2% | MULTIFAMILY | O
Slide 8: Lending Market Update
LENDING MARKET UPDATE CRE Debt Market BRSP Investment Themes Economic recovery continues, with headwinds forming from inflation and geopolitics Transaction volumes remain healthy particularly in growth markets Interest rates rising, favoring floating-rate lenders Sales and valuations beginning to ad
Slide 9: Middle Market Focus
MIDDLE MARKET FOCUS 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?) $211 ° ATT) Thy MSAs with above average population Total CRE Market G growth®) eaten 1% Transaction size 79% —— <
Slide 10: Robust Investment Platform
ROBUST INVESTMENT PLATFORM Rigorous underwriting and screen process for each investment Comprehensive Investment Capabilities Screening & Evaluation Process (yTD 2022) % of Investments Total Investments Evaluated Aectod . . #of Investments / Face Value ($8) x) 55+ dedicated professionals throughout
Slide 11: 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) Y) Powerful Originations Platform Producing Results + $3.0B of new origination
Slide 12: Prudent Capital Structure
RUDENT CAPIT URE Capital structure provides flexibility and support to drive growth and return on equity Capital Structure Access to Diverse and Efficient Financing Sources + Robust liquidity: $431M of total liquidity, $266M of cash?) 2.1x Debt-to- equity ratio + Moderate leverage ratios with embedd
Slide 13: Reducing the Trading Gap
DUCING THE TRADING GAP Q1'22 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 Q1'22 Book Value $12.36 $3.86/share or ~$510M between current share price and book value Investment Portfolio {Inve
Slide 14: Q1 Results Summary
Q1 RESULTS SUMMARY ($ in millions, except where noted and per share data) Qi'22 Q4'21 %Change Investment Type % GAAP Net Income $27.7 $81.0 (67%) Per Share $0.21 $0.63 Distributable Earnings $28.8 $22.9 oo Per Share $0.22 $0.17 a Adjusted Distributable Earnings $28.8 $36.1 (19%) Total Per Share $0.2
Slide 15: Portfolio Detail
1 PORTFOLIO DET BRSP’s loan portfolio increased 36% year-over-year from $2.8 billion at Q1'21 to $3.8 billion at Q1'22 driven by new senior loan originations Loan Portfolio Real Estate Portfolio NNN Other RE Total Number of Investments no Total Number of Investments 8 2 Carrying Value $3.8B Carrying
Slide 16: Investment Opportunity
INVESTMENT OPPORTUNITY Internalized structure and prudent balance sheet positions the Company on a path towards substantial earnings growth and shareholder value creation fe) O da % $H i <} POSITIONED FOR GROWTH A SIMPLE GAME PLAN STABLE & RECURRING EARNINGS + Internalized, transparent * Continue de
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 a»diversified portfolio ‘consisting primarily of CRE debt investments and net leased
Slide 18: Appendix
APPENDIX B Hy 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 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 20: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Assets ‘Cash and cash equivalents Restricted cash Loans held for investment Curent expected credit loss reserve ‘Loans held for investment, net Real estate, net Investments in unconsolidated ventures (84,406 and $4,406 at fir valve, respectively) Receivables, net Deferred
Slide 21: Consolidated Statement of Operations
CONSOLIDATED STATEMENT OF OPERATIONS ‘Three Months Ended March 31 2022 2021 Net interest income Interest income 3 4570 B37 Interest expense ‘go72) (12495) Interest income on mortgage loans held in secutzation trusts 935 19.659 interest expense on mortgage obligations sued by securtization tests (e48
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 March 31, 2022 Consolidated nei” At BRSP share” Assets Loans hel for investment, net s 3725869 $ ans 3725869 Realestate, net 781629 13097 768,532 Investments in
Slide 23: Reconciliation of GAAP to Non-GAAP Financial Information (Cont'd)
ECONCILIATION OF GAAP TO NON-GAAP FINANCIA INFORMATION (CONT'D) Reconciliation of GAAP net book value to undepreciated book value __As of March 31,2022 GAAP net book value (excluding nencontrolling interests in investment entities) $ 1/494,536 Accumulated depreciation and amortization" 145,769 Undep
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 March 31, 2022 Net income attributable to BrightSpire Capital, Inc. common stockholders $ 27h Adjustments: Net income a
Slide 25: BrightSpire Capital
BRIGHT SPIRE CAPITAL