BrightSpire Capital, Inc. (NYSE:BRSP) Q2 2021 Results Earnings Conference Call August 4, 2021 10:00 AM ET Company Participants David Palamé - General Counsel, Executive Vice President, Secretary Mike Mazzei - Chief Executive Officer, President Andy Witt - Chief Operating Officer, Executive Vice President Frank Saracino - Chief Financial Officer, Treasurer, Executive Vice President Conference Call Participants Ethan Saghi - BTIG Stephen Laws - Raymond James Matthew Howlett - B. Riley Steve Delaney - JMP Secu ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38377 BRIGHTSPIRE CAPITAL, INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 38-4046290 (State or Other Jurisdiction of Incorporation or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38377 COLONY CREDIT REAL ESTATE, INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 38-4046290 (State or Other Jurisdiction of Incorpora ...

Colony Credit Real Estate, Inc. (CLNC) Q1 2021 Earnings Conference Call May 5, 2021 5:00 PM ET Company Participants David Palamé – General Counsel Mike Mazzei – President and Chief Executive Officer Andy Witt – Chief Operating Officer Frank Saracino – Chief Financial Officer Conference Call Participants Matthew Howlett – B.Riley Tim Hayes – BTIG Steve Delaney – JMP Securities Operator Greetings. Welcome to the Colony Credit Real Estate Incorporated First Quarter 2021 Earnings Call. At this time all partici ...

SUPPLEMENTAL FINANCIAL REPORT FOURTH QUARTER 2020 FEBRUARY 24, 2021 1 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS 2 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 similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use ...

Financial Data and Key Metrics Changes - For Q4 2020, the company reported a GAAP net loss attributable to common shareholders of $52.5 million or $0.41 per share, and a distributable loss of $25.7 million or $0.20 per share [34] - The year-end GAAP net book value decreased from $13.25 to $12.96 per share, while the undepreciated book value decreased from $14.53 to $14.14 per share [35] - The unrestricted cash position at year-end was $473 million, approximately $3.59 per share, with total liquidity standing at $689 million [11][41] Business Line Data and Key Metrics Changes - The core loan portfolio had a carrying value of approximately $2.3 billion at year-end, with a blended unlevered yield of approximately 5.8% [38] - During Q4, the company originated five senior loans for initial gross funding of $158 million, and subsequently originated four loans for approximately $147 million [39] - The legacy non-strategic portfolio has been significantly reduced, with only 14 remaining positions, down from 70 initially, now accounting for less than 1% of the total portfolio [28][40] Market Data and Key Metrics Changes - The company has focused its loan originations on multifamily and selective office properties due to market conditions created by COVID-19 [14] - The retail property sector has incurred lasting damage, leading to a supply and demand imbalance for credit across property sectors [15] - The overall risk ranking remained consistent at 3.7 at the end of Q4, with a slight decrease in the CECL provision to $38.5 million [42] Company Strategy and Development Direction - The company is transitioning its asset base towards floating rate first mortgages, with a goal to increase loan originations [12] - The company plans to selectively expand loan originations to other property types as economic conditions improve [16] - The management aims to build earnings and grow dividends as cornerstones to improve valuation, recognizing that CLNC continues to trade at a discount to book value [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by COVID-19 but expressed optimism about the business model in the current operating environment [17] - The company expects acquisition activity and loan refinancings to increase in the second half of 2021 as the economy reopens [16] - Management emphasized the importance of maintaining adequate liquidity to defend the balance sheet against potential future challenges [46] Other Important Information - The company reinstated a quarterly dividend of $0.10 per share for Q1 2021, payable on April 15 [36] - The company has made significant progress in resolving the legacy non-strategic portfolio, with substantial sales and resolutions completed [27] - The company will collapse the LNS recording segment starting with Q1 2021 reporting due to its limited size [28] Q&A Session Summary Question: Outlook for portfolio growth and CLO financing - Management indicated a target of over $1 billion in loan originations for the year, with plans to utilize CLO as a financing model [45] Question: Timing for reallocating capital from non-earning assets - Management stated that the timing for reallocating cash will depend on understanding which assets may need to be moved around [49] Question: Dividend policy moving forward - The dividend was established at a sustainable level with a view towards growth as capital is deployed [55] Question: Credit adjustments and fair value impacts - Management confirmed that the fair value adjustment was primarily due to the Dublin project, with no other significant impairments reported [81] Question: Use of corporate debt for balance sheet growth - Management acknowledged the potential for using corporate debt to enhance balance sheet flexibility and growth [92]

Financial Performance and Risks - The company has not established a minimum distribution payment level and cannot assure future distributions [25]. - The novel coronavirus pandemic has had a material adverse effect on the company's business and financial condition [24]. - The company depends on its Manager, Colony Capital, for success, and any adverse changes in their financial health could hinder performance [24]. - Interest rate fluctuations could reduce the company's ability to generate income on investments and may cause losses [29]. - The company is exposed to credit risk from loans held for investment, with default rates influenced by various factors, including the ongoing impacts of the COVID-19 pandemic [715]. - The company faces real estate market risk, with market values subject to volatility influenced by economic conditions and the COVID-19 pandemic [719]. Investment Strategies and Risks - The company invests in mezzanine loans, which involve greater risks of loss than senior loans secured by income-producing properties [28]. - The company has investments in private equity real estate funds, with no assurance these investments will achieve expected returns [28]. - The company has debt investments that contain a payment-in-kind provision, which may affect interest income recognition [661]. - The company’s operations in Europe expose it to risks inherent in conducting business in foreign markets [28]. - The company actively manages credit risk through rigorous underwriting processes and tenant evaluations, particularly in light of COVID-19 impacts [716]. Financial Reporting and Valuation - Nonaccrual status is applied to loans and preferred equity investments that are 90 days or more past due, impacting interest income recognition [662]. - Loans held for sale are recorded at the lower of amortized cost or fair value less disposal costs, with valuation changes recognized as impairment loss [664]. - The current expected credit loss (CECL) reserve represents a lifetime estimate of expected credit losses, considering factors like loan-to-value ratio and borrower financial performance [666]. - CECL reserves are measured collectively for similar risk characteristics, using a probability of default/loss given default model based on historical loss rates [668]. - Real estate held for investment is carried at cost less accumulated depreciation, with significant renovations capitalized and depreciated over their useful lives [682]. - Impairment evaluations for real estate held for investment are conducted periodically, considering future cash flows and market conditions [685]. - Real estate classified as held for sale is recorded at the lower of carrying amount or estimated fair value less disposal costs, with impairment losses recognized as needed [686]. - Foreclosed properties are recognized at fair value upon acquisition, with any difference from the loan's carrying value recorded as a provision for loan loss [688]. - CRE securities are classified as available for sale and carried at fair value, with unrealized gains or losses recorded in accumulated other comprehensive income [689]. - The company has elected the fair value option for certain investments, with unrealized gains or losses recorded in the consolidated statements of operations [692]. - The company evaluates impairment of CRE securities quarterly, recognizing impairment when fair value is below amortized cost, with specific conditions leading to write-downs [693]. Currency and Interest Rate Exposure - As of December 31, 2020, the company had approximately $266.4 million in net investments in European subsidiaries, with a 1.0% change in foreign currency rates potentially impacting translation gains or losses by $2.7 million [725][726]. - A hypothetical 100 basis point increase in the applicable interest rate benchmark would decrease annual interest income by $12.2 million, net of interest expense [712]. - The company utilizes interest rate swaps and other derivatives to hedge against fluctuations in interest rates, which carry certain risks [709]. - The company is exposed to credit loss risks due to potential non-performance by counterparties in these contracts [727]. - To mitigate this risk, the company selects major international banks and financial institutions as counterparties [727]. - A quarterly review of the financial health and stability of trading counterparties is conducted by the company [727]. - Based on the review at December 31, 2020, the company does not anticipate any counterparty defaults on obligations [727]. Debt and Financing - The company has amended its Bank Credit Facility and Master Repurchase Facilities to adjust covenants and reduce advance rates to mitigate future compliance issues [723]. - The maturity dates of these instruments align with projected cash flow dates for specific investments [727].

ColonyCredit REAL ESTATE 1 S U P P L E M E N TA L F I N A N C I A L R E P O R T T H I R D Q U A R T E R 2 0 2 0 NOVEMBER 5, 2020 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS 2 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 similar expressions concerning matters that are not historical facts. In some ca ...

[Part I. Financial Information](index=8&type=section&id=Part%20I.%20Financial%20Information) This section provides the company's unaudited consolidated financial statements, management's discussion, market risk disclosures, and internal controls [Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, reflecting a net loss of **$300.8 million** and a decrease in total assets to **$6.5 billion** as of September 30, 2020 [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) Total assets decreased to **$6.51 billion** as of September 30, 2020, with a net loss of **$314.3 million** for the nine-month period Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2020 (Unaudited) | Dec 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$6,511,657** | **$7,414,306** | | Loans and preferred equity held for investment, net | $2,103,414 | $2,576,332 | | Real estate, net | $1,133,318 | $1,484,796 | | **Total Liabilities** | **$4,494,765** | **$5,212,956** | | Credit facilities | $608,632 | $1,099,233 | | **Total Stockholders' Equity** | **$1,703,385** | **$2,119,022** | Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $25,223 | $26,111 | $78,017 | $71,996 | | Total Expenses | $70,597 | $473,527 | $301,255 | $773,611 | | Provision for loan losses | $10,404 | $110,314 | $80,285 | $220,572 | | Impairment of operating real estate | $3,451 | $272,722 | $33,512 | $282,846 | | Net Income (Loss) | $6,430 | $(401,995) | $(314,295) | $(497,828) | | Net Income (Loss) per Share | $0.04 | $(2.77) | $(2.34) | $(3.51) | [Notes to Consolidated Financial Statements](index=17&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and financial results, including the impact of COVID-19, CECL adoption, and segment realignment - The company operates as a commercial real estate (CRE) credit REIT, externally managed by a subsidiary of Colony Capital, Inc[52](index=52&type=chunk)[54](index=54&type=chunk) - The **COVID-19 pandemic** has significantly impacted investments, especially in hospitality and retail, causing declines in operating cash flows and potential payment defaults[58](index=58&type=chunk)[59](index=59&type=chunk) Impact of CECL Adoption on January 1, 2020 (in thousands) | Item | Impact Amount | | :--- | :--- | | CECL reserve on Loans and preferred equity held for investment, net | $21,093 | | CECL reserve on Accrued and other liabilities | $2,093 | | **Total Impact on Accumulated Deficit** | **$23,186** | - In Q3 2019, the company realigned its business into two segments: the **'Core Portfolio'** and the **'Legacy, Non-Strategic Portfolio'**[396](index=396&type=chunk)[401](index=401&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=80&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses business strategy, the significant impact of COVID-19, and actions taken to preserve cash and liquidity, including asset sales and debt reduction - The company's primary focus since COVID-19 has been on cash preservation and liquidity, including **$531.6 million** in debt reduction and dividend suspension, with resumption expected in 2021[445](index=445&type=chunk)[449](index=449&type=chunk)[455](index=455&type=chunk) - In Q3 2020, the **Core loan portfolio** collected all interest payments, and the **Core net leased portfolio** collected **98%** of rents, while the Legacy portfolio collected **86.5%**[452](index=452&type=chunk)[453](index=453&type=chunk) - The company recapitalized its Los Angeles Mixed-use project, converting mezzanine and preferred equity into a B-participation in an upsized mezzanine loan, eliminating future funding commitments[450](index=450&type=chunk)[505](index=505&type=chunk) - As of November 5, 2020, the company had approximately **$438 million** in cash and **$171.0 million** available on its bank facility, enabling new investments[457](index=457&type=chunk)[673](index=673&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=125&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces significant market risks, including interest rate, credit, and capital market risks, all exacerbated by the COVID-19 pandemic - A **100 basis point increase** in interest rates would decrease annual net interest income by **$13.1 million**[724](index=724&type=chunk) - Significant **credit risk** from loan defaults and tenant non-payments is actively managed through modifications and restructurings[727](index=727&type=chunk)[728](index=728&type=chunk)[729](index=729&type=chunk) - **Capital market disruptions** from COVID-19 led to margin calls, mitigated by amended credit facilities and margin call holidays[735](index=735&type=chunk)[736](index=736&type=chunk) - Foreign currency exposure of approximately **$265.4 million** in European investments means a **1.0% change** in rates would result in a **$2.7 million** change in other comprehensive income[739](index=739&type=chunk) [Controls and Procedures](index=128&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2020, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[743](index=743&type=chunk) - No material changes were made to the company's internal control over financial reporting during the third quarter of 2020[744](index=744&type=chunk) [Part II. Other Information](index=129&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, updated risk factors, and disclosures regarding unregistered sales of equity securities and use of proceeds [Legal Proceedings](index=129&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings and anticipates no material adverse effects from ordinary course actions - As of the reporting date, the company is not involved in any material legal proceedings[748](index=748&type=chunk) [Risk Factors](index=129&type=section&id=Item%201A.%20Risk%20Factors) The COVID-19 pandemic significantly heightens existing risks, impacting asset valuations, capital access, borrower delinquencies, and the company's hedging strategy - The **COVID-19 pandemic** is a primary risk, negatively impacting asset values, access to capital, and the financial stability of borrowers and tenants[749](index=749&type=chunk)[750](index=750&type=chunk) - Inability to access funding on attractive terms, exacerbated by market dislocations, could lead to forced asset sales at depressed prices to meet obligations like margin calls[758](index=758&type=chunk)[760](index=760&type=chunk) - Termination of certain interest rate hedges has increased exposure to interest rate fluctuations, potentially negatively impacting results and liquidity[764](index=764&type=chunk)[765](index=765&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=131&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered equity sales during the nine months ended September 30, 2020, despite an authorized **$300.0 million** stock repurchase program - The company has a **$300.0 million** stock repurchase program in place, extended until March 31, 2021[773](index=773&type=chunk) - No shares were repurchased under the authorized program as of September 30, 2020[339](index=339&type=chunk)[772](index=772&type=chunk)

Colony Credit Real Estate, Inc. (CLNC) Q3 2020 Earnings Conference Call November 5, 2020 5:00 PM ET Company Participants David Palame – General Counsel Mike Mazzei – President and Chief Executive Officer Andy Witt – Chief Operating Officer Neale Redington – Chief Financial Officer Conference Call Participants Stephen Laws – Raymond James Randy Binner – B. Riley Steven Delaney – JMP Securities Operator Thank you for standing by, this is the conference operator. Welcome to Colony Credit Real Estate, Inc's Thi ...