Brightspire Capital, Inc. · NYSE:BRSP
Brightspire Capital — Colony NorthStar Credit Real Estate — Q1 2018 Earnings Presentation
27 slides from Brightspire Capital's earnings presentation, May 9, 2018
Slide 1: Supplemental Financial Report – First Quarter 2018
Colony NorthStar Credit Real Estate, Inc. Supplemental Financial Report – First Quarter 2018 May 8, 2018 To Update: Owned RE metrics NI to NOI rec Annualized NOI/EBITDA 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: Important Note Regarding Non-GAAP Financial Measures
Important Note Regarding Non-GAAP Financial Measures We present Core Earnings, which is a non-GAAP supplemental financial measure of our performance. We believe that Core Earnings provides meaningful information to consider in addition to our net income and cash flow from operating activities determ
Slide 4: Notes Regarding CLNC Reportable Segments
Notes Regarding CLNC Reportable Segments Colony NorthStar Credit Real Estate, Inc. currently holds investment interests through the following four reportable segments, which are based on how management reviews and manages its business: Loan Portfolio As of March 31, 2018, the Company’s Loan Portfoli
Slide 5: Table of Contents
Business & Portfolio Highlights 6 Loan Portfolio 8 CRE Debt Securities 10 Net Lease Real Estate 11 Non-Core Assets 12 Capitalization 14 Appendix 17 Table of Contents
Slide 6: I. Business Highlights
I. Business Highlights Business & Financial Completed previously announced merger to create Colony NorthStar Credit Real Estate, Inc., a leading commercial real estate credit REIT Completed listing on the New York Stock Exchange (“NYSE”) under the ticker symbol “CLNC” on February 1, 2018 First quart
Slide 7: I. Portfolio Highlights
See footnotes in the appendix I. Portfolio Highlights Property type(5) Geography(5) ($ in thousands; as of March 31, 2018, unless otherwise stated) Non-core assets Portfolio Highlights $4.3 Billion Total Investment-Level Assets (2) $3.1 Billion Total Book Equity Value (1) $4.9 Billion Total At-Share
Slide 8: II. Loan Portfolio Highlights
$2.3 billion Total loan portfolio(1) 83 Total # of investments $28 million Average loan size (at CLNC share) 1.9 years W.A. remaining term(2) 3.3 years W.A. extended remaining term(3) 8.2% W.A. unlevered all-in yield(4) 12.6% Illustrative W.A. levered yield(5) A 50 basis point increase in LIBOR woul
Slide 9: II. Loan Portfolio Overview
II. Loan Portfolio Overview ($ in thousands; as of March 31, 2018, unless otherwise stated) Property type(7) Geography(7) See footnotes in the appendix
Slide 10: III. CRE Debt Securities
III. CRE Debt Securities ($ in thousands; as of March 31, 2018, unless otherwise stated) CMBS portfolio by vintage(4) See footnotes in the appendix % of portfolio 2011 2013 2014 2015 2016 2017 2018 2012 Rating # of investments Principal amount (1) Carrying value (1) W.A. unlevered all-in yield (2) W
Slide 11: IV. Net Lease Real Estate
IV. Net Lease Real Estate ($ and square feet in thousands; as of March 31, 2018, unless otherwise stated) See footnotes in the appendix See footnotes in the appendix As a result of the merger closing January 31, 2018, reported NOI does not represent a full quarter of NOI as it does not include the f
Slide 12: V. Non-Core Assets: Other Real Estate Equity
V. Non-Core Assets: Other Real Estate Equity ($ and square feet in thousands; as of March 31, 2018, unless otherwise stated) See footnotes in the appendix See footnotes in the appendix Property type(5) Geography(5) W.A. remaining lease term(4)(5) * As a result of the merger closing January 31, 2018,
Slide 13: V. Non-Core Assets: Private Equity Interests
$257 million Carrying value(1) 6% % of total investment portfolio(2) 107 Total # of funds 86% Carrying value as a % of underlying GP NAV(3) 1.3 years W.A. remaining life(4) Overview V. Non-Core Assets: Private Equity Interests Investment type(5) Geography(5) See footnotes in the appendix (As of Marc
Slide 14: VI. Capitalization Highlights
$4.7 billion Total capitalization (Excluding cash) $1.6 billion Total outstanding debt(1) $400 million Corporate revolving credit facility availability As of May 7, 2018 $1.2 billion Master repurchase facilities availability(2) As of May 7, 2018 0.4x Net debt-to-equity ratio(3) 4.38% Blended cost of
Slide 15: VI. Capitalization Overview
See footnotes in the appendix VI. Capitalization Overview ($ in thousands; as of March 31, 2018, unless otherwise stated)
Slide 16: VI. Interest Rate Sensitivity
VI. Interest Rate Sensitivity Change in one-month USD LIBOR 0.50% 1.00% 1.50% 2.00% Net Interest Income Sensitivity to LIBOR Increases(1)(2) CLNC’s loan portfolio benefits from a rising rate environment Approximately 96% of senior mortgage loans are indexed to one-month USD LIBOR Approximately 77% o
Slide 17: VII. Appendix
<> SELON. NORTHSTAR CREDIT REAL ESTATE Vil. Appendix
Slide 18: VII. Important Note Regarding Financial Statements
VII. Important Note Regarding Financial Statements For the period ending March 31, 2018, the following financial statements represents only the pre-merger financial information of the Colony NorthStar Investment Entities, as the accounting acquirer, on a stand-alone basis from January 1, 2018 throug
Slide 19: VII. Appendix – Consolidated Balance Sheet
VII. Appendix – Consolidated Balance Sheet ($ in thousands, except per share data)(Unaudited) March 31, 2018 December 31, 2017 Assets Cash and cash equivalents 334,952 25,204 Restricted cash 117,443 41,901 Loans held for investment, net 1,816,218 1,300,784 Real estate securities, available for sale
Slide 20: VII. Appendix – Consolidated Statement of Operations
VII. Appendix – Consolidated Statement of Operations ($ and shares in thousands, except per share data)(Unaudited) Three Months Ended March 31, 2018 2017 Net interest income Interest income 36,139 $ 35,151 $ Interest expense on loans held for investment (7,415) (6,104) Interest income on mortgage lo
Slide 21: VII. Appendix – Outstanding Common Shares and OP Units
VII. Appendix – Outstanding Common Shares and OP Units As of May 7, 2018 Class A common stock 83,487,352 Class B-3 common stock 44,399,444 OP units 3,075,623 Total common stock and OP units outstanding as of May 7, 2018 130,962,419
Slide 22: VII. Appendix – Reconciliation of GAAP to Non-GAAP Financial Information
VII. Appendix – Reconciliation of GAAP to Non-GAAP Financial Information ($ in thousands; as of March 31, 2018)(Unaudited) Reconciliation of GAAP total assets to CLNC share of total assets See footnotes in the appendix
Slide 23: VII. Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (cont’d)
VII. Appendix – Reconciliation of GAAP to Non-GAAP Financial Information (cont’d) ($ in thousands, except per share data; as of March 31, 2018)(Unaudited) Reconciliation of GAAP net income to core earnings Reconciliation of GAAP net income to NOI/EBITDA See footnotes in the appendix Three Months End
Slide 24: Footnotes
Page 6 For Core Earnings per share, the Company assumes the 44.4 million shares of Class B-3 common stock and the 3.1 million OP units (held by members other than the Company or its subsidiaries) were outstanding from January 1, 2018 through January 31, 2018 to reflect the standalone pre-merger fina
Slide 25: VII. Appendix – Footnotes (cont’d)
VII. Appendix – Footnotes (cont’d) Page 11 Represents carrying values at CLNC share as of March 31, 2018 Annualized NOI is calculated by annualizing reported NOI after adjusting for the impact of the merger closing on January 31, 2018 Represents the % leased as of March 31, 2018 and is weighted by c
Slide 26: VII. Appendix – Footnotes (cont’d)
VII. Appendix – Footnotes (cont’d) Page 22 Non-controlling interest (“NCI”) represent interests in assets held by third party partners Assets at CLNC share represents the proportionate share attributed to CLNC based on CLNC’s ownership by asset Represents total assets adjusted for the net impact of
Slide 27: Company Information
Company Information Colony NorthStar Credit (NYSE: CLNC) is one of the largest publicly traded commercial real estate credit REITs, focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE senior mortgage loans, mezzanine loans, preferred equity,
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