BrightSpire Capital : 4th Quarter 2024 Earnings Supplemental Presentation

Published: 2025-02-18 17:42:05 ET BRSP

FEBRUARY 18, 2025

SUPPLEMENTAL FINANCIAL REPORT

FOURTH QUARTER 2024

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

$3.8B

$2.5B

Total At-Share Assets

Total Loan Portfolio

(Undepreciated)

(76 Total Loans)

98%

$33M

Floating-Rate

Average Loan Size

Loan Portfolio

87%

7.6%

<$50M Loan Size

W.A. Unlevered

(Based on Loan Count)

All-in Yield(1)

Liquidity & Capitalization

$418M

$253M

Total Liquidity(2)

Total Unrestricted Cash

(or $1.95 per share)(3)

Ample Liquidity for New Loan Originations

$165M

$1.2B

Fully Undrawn

Master Repurchase

Corporate Revolver(3)

Facilities Availability(3)

2.2x

6.03%

Debt-to-Equity Ratio(4)

W.A. All-in

Cost of Financing(5)

Earnings & Dividend

$0.18

Q4'24 Adjusted Distributable

Earnings Per Share*

$0.16

10.7%

Q4'24 Quarterly

Annualized

Dividend Per Share

Dividend Yield(6)

$1.2B

$8.89

Undepreciated

Book Value**

Book Value Per Share**

As of December 31, 2024, unless otherwise stated; at BRSP share

See footnotes in the appendix

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 Distributable Earnings of $0.18 per share and $0.84 per share, respectively

RESULTS

• GAAP net book value of $8.08 per share and undepreciated book value of $8.89 per share

• Declared and paid a quarterly dividend of $0.16 per share for Q4'24, 10.7% yield on current share price(6)

• $3.8 billion total at-share assets; predominantly floating rate senior loans

• $2.5 billion loan portfolio with an average loan size of $33 million and W.A. unlevered yield of 7.6%

• $93 million of repayment proceeds across four loans in Q4'24 (including a $49 million partial paydown related

to one our largest office loans); $418 million of repayment proceeds across 22 loans for the full year 2024

PORTFOLIO

• W.A. risk ranking of 3.2 in line with TTM (3.2 as of Q3'24)

- Watch list: three loans removed and one loan added

- 7 watch list loans totaling $411 million or 16% of the loan portfolio (vs. 9 loans totaling $456 million at Q3'24)

• Total CECL reserve of $166 million or $1.28 per share (no specific CECL reserve on balance sheet as of Q4'24)

• Committed $66 million of capital across three new loans in Q4'24

• $418 million of available liquidity ($253 million of unrestricted cash and $165 million of revolver capacity)(3)

LIQUIDITY &

CAPITALIZATION

• $2.0 billion of total master repurchase facility capacity with $1.2 billion of availability(3)

• $100 million of repayment proceeds across six loans (including $50 million related to two office loan payoffs)

SUBSEQUENT

• Sold the Oakland, CA office REO property for $5 million of net proceeds

EVENTS(3)

• Committed $53 million of capital across two new loans

As of December 31, 2024, unless otherwise stated; at BRSP share

See footnotes in the appendix

FINANCIAL OVERVIEW

Key Financial Metrics

Capital Structure

GAAP Net Loss ($M)

($19.7)

16%

Per Share

($0.16)

32%

Distributable Earnings ($M)

$13.7

Total

Per Share

$0.11

capitalization

21%

$3.6B

Adjusted Distributable Earnings ($M)

$23.7

Per Share

$0.18

30%

Total At-Share Assets ($B)

$3.8

(Undepreciated)

Stockholders' equity (undepreciated)

Securitization bonds payable (non-recourse)

Master repurchase facilities (limited recourse)

Mortgage debt (non-recourse)

Other debt (non-recourse)

Total Debt Outstanding (UPB) ($B)

$2.5

Debt-to-Equity(4)

2.2x

Book Value (GAAP) ($B)

$1.0

Per Share

$8.08

Book Value (Undepreciated) ($B)

$1.2

Per Share

$8.89

CECL Reserve (General) ($M)

$166.1

Per Share / Basis Points ("BPS")(7)

$1.28 / 634 bps

CECL Reserve (Specific) ($M)

Per Share

Undepreciated Book Value Per Share Bridge

$9.25

$9.11

$0.02

$0.01

($0.16)

$9.00

($0.09)

$8.89

$8.75

$8.50

$8.25

9/30/24

Earnings in

Other *

Change in CECL

RE Impairment

12/31/24

Undepreciated

Excess of

Reserve

Undepreciated

BVPS

Dividends

BVPS

See footnotes in the appendix

FINANCIAL PERFORMANCE

Earnings Per Share

Book Value Per Share

Adjusted Distributable Earnings

GAAP Net Book Value

Undepreciated Book Value

$10.67

$0.23

$0.22

$0.21

$0.20

Quarterly

Dividend

$9.10

$0.18

$0.16

Quarterly

Dividend

$8.41

$9.08

$8.39

$9.11

$8.89

$8.08

Q1'24

Q2'24

Q3'24

Q4'24

GAAP Net Income (Loss)

($0.45)

($0.53)

$0.10

($0.16)

Adjusted Distributable Earnings*

$0.23

$0.22

$0.21

$0.18

Dividend Distribution

Q1'24

Q2'24

Q3'24

Q4'24

GAAP Net Book Value

$9.10

$8.41

$8.39

$8.08

Undepreciated Book Value**

$10.67

$9.08

$9.11

$8.89

$0.20

$0.16

Dividend Coverage (Adjusted Distributable Earnings)

115%

110%

131%

113%

As of December 31, 2024, unless otherwise stated; at BRSP share

PORTFOLIO OVERVIEW

Investment Type

Based on GAAP net carrying value as of December 31, 2024

Loan portfolio

<1%

20%

Net lease & other

real estate

CRE debt securities (8)

80%

Property Type

Based on GAAP gross carrying value as of December 31, 2024

Multifamily

Office (loan portfolio)

Office (NNN & Other RE)

42%

Industrial

14%

Mixed-use & Other

Hotel

23%

Retail

Portfolio Overview

Investment

Carrying

Net carrying

(At BRSP share)

count

value

Per share

Senior mortgage loans

2,474

665

5.13

Mezzanine loans

0.35

General CECL reserves

(166)

(1.28)

Total loan portfolio

2,353

544

4.20

Net lease & other real estate

815

178

1.37

CRE debt securities(8)

0.02

Total investment portfolio

3,170

724

5.59

Plus: cash & net assets(9)

544

324

2.50

Total - GAAP

3,714

1,048

8.08

Plus: accumulated D&A(10)

232

1.79

Less: non-GAAP impairment of real estate

(128)

(0.99)

Total - Undepreciated

3,818

1,152

8.89

Above charts exclude the impact of CECL reserves. In addition, "Property Type" chart excludes CRE debt securities

$ in millions, except per share data; as of December 31, 2024; at BRSP share

See footnotes in the appendix

LOAN PORTFOLIO OVERVIEW

Overview

76 Total number of investments

$2.5B Total loan portfolio

$33M Average investment size

0.4 yrs. W.A. remaining term(12)

1.6 yrs. W.A. extended remaining term(13)

7.6%

W.A. unlevered all-in yield(1)

3.2 W.A. risk ranking

100% of senior loans are floating rate

Region

West

46%

Northeast

13%

Southwest

34%

Southeast

Investment Type

Property Type

51%

31%

98%

Senior mortgage loans

Multifamily

Office

Mixed-use & Other

Hotel

Mezzanine loans

Industrial

Loan Portfolio Activity

$2,586

$53

$16

($93)

($42)

($1)

$2,519

Total Loan

Count

Total Loan

Count

9/30/24

Total New

Additional

Total

REO (15)

Other (16)

12/31/24

Loan Portfolio

Loans

Loan

Repayments

Loan Portfolio

(Initial Fundings)

Fundings (14)

Above charts based on GAAP gross carrying value and excludes the impact of CECL reserves

$ in millions, unless otherwise stated; as of December 31, 2024, unless otherwise stated; at BRSP share

See footnotes in the appendix

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

Multifamily

1,292,316

51%

20%

26%

Office

768,617

31%

14%

Mixed-use & Other

214,184

Hotel

208,131

Industrial

35,677

Total

2,518,925

100%

46%

34%

13%

General CECL reserves

(166,121)

Total - Net of general CECL reserves

2,352,804

Property Type Exposure by Region

Multifamily

7% 3%

Office

11%

17% 45%

Mixed-use & Other

28%

Hotel

Industrial

40%

50%

72%

27%

100%

 West

 Southwest

 Northeast

 Southeast

Above charts based on GAAP gross carrying value and excludes the impact of CECL reserves $ in thousands; as of December 31, 2024; at BRSP share

LOAN PORTFOLIO SUMMARY

Number of

(At BRSP share)

investments

Floating rate

Carrying

value

Net carrying

value

W.A. unlevered

all-in yield(11)

W.A. extended term (years)(10)

Senior mortgage loans

2,473,793

98%

665,353

7.6%

1.6

Total / W.A. floating rate

2,473,793

98%

665,353

7.6%

1.6

Fixed rate

Mezzanine loans

45,132

8.4%

1.5

Total / W.A. fixed rate

45,132

8.4%

1.5

Total / W.A.

2,518,925

100%

710,485

7.6%

1.6

General CECL reserves

(166,121)

Total / W.A. - Net of general CECL reserves

2,352,804

544,364

$ in thousands; as of December 31, 2024; at BRSP share See footnotes in the appendix

LOAN PORTFOLIO MATURITIES

Weighted average fully extended remaining term of approximately 1.6 years across the loan portfolio

$ in Millions

$1,250

$1,000

$750

$500

$250

Fully Extended Loan Maturities(13)

Fully extended loan maturities (carrying value)

Unfunded commitments

$986

$833

$648

$21

$41

$31

$53

$13

2025

2026

2027

2028+

Above chart based on GAAP gross carrying value and excludes the impact of CECL reserves

As of December 31, 2024, unless otherwise stated; at BRSP share

See footnotes in the appendix

Disclaimer

Brightspire Capital Inc. published this content on February 18, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 18, 2025 at 22:39:54.315.