Digitalbridge Group, Inc. · NYSE:DBRG
Digitalbridge — Colony NorthStar — Investor Presentation (February 2017)
33 slides from Digitalbridge's investor presentation, Feb 28, 2017
Slide 1: Investor Presentation: A Diversified Equity REIT
Investor Presentation March 1, 2017 NYSE: CLNS | A Diversified Equity REIT
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Colony NorthStar, Inc. 1 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, anticip
Slide 3: Colony NorthStar Highlights
Colony NorthStar, Inc. 2 Colony NorthStar Highlights World-Class Real Estate and Investment Management Platform Improving Balance Sheet and Liquidity with Path to Reduced Cost of Capital Strategic Transition to Simplify Balance Sheet and Focus on Core Property Verticals Scaled, Dynamic and Diversifi
Slide 4: Colony NorthStar Overview
Colony NorthStar, Inc. 3 Colony NorthStar Overview Leading global equity REIT with an embedded investment management platform NYSE:CLNS / RMZ Constituent $56 Billion of AUM 500+ Employees | 17 Offices Globally $18 Billion Total Capitalization3 $8 Billion Equity Market Capitalization2 Quick Facts Bus
Slide 5: Highly Experienced Management Team
Colony NorthStar, Inc. 4 Highly experienced, cohesive team with demonstrated track record and unwavering commitment to create shareholder value Highly Experienced Management Team Thomas J. Barrack, Jr. – Executive Chairman – Executive Chairman of Colony Capital, the investment firm he founded in 199
Slide 6: AUM Breakdown and Colony NorthStar Portfolio
Colony NorthStar, Inc. 5 $7 $3 $4 $1 $39 $1 $1 Investment Management Other Hospitality Healthcare Industrial AUM Breakdown (1) In $ billions $15 $41Total AUM $15 Billion(1) Balance Sheet AUM (at share) Colony NorthStar Portfolio Notes: 1. Please reference the endnotes of this presentation for a defi
Slide 7: Benefits of Being a REIT & Investment Manager
Colony NorthStar, Inc. 6 Raises 3rd party capital in partnership with balance sheet for core property verticals as well as distinct tactical balance sheet-light strategies Growing, stable fees generate diversified income stream Provides flexibility in accessing growth capital throughout cycles
Slide 8: The Colony NorthStar Advantage
Colony NorthStar, Inc. 7 20+ Countries invested across the globe since 1991 $100B+ total capital invested over 26 years 25+ years of experience managing real estate The Colony NorthStar Advantage Differentiated access to public and private capital provides attractively priced growth equity throughou
Slide 9: Longer-Term Strategic Initiatives
Colony NorthStar, Inc. 8 BALANCE SHEET-LIGHTBALANCE SHEET-HEAVY Longer-Term Strategic Initiatives CORE STRATEGIC VERTICALS MULTIPLE ASSET CLASSES TACTICAL STRATEGIES HOSPITALITYHEALTHCARE NEW VERTICAL(S) INDUSTRIAL 3 to 5 vertically-integrated + scalable segments over long-term Focused on real e
Slide 10: Strategic Transition
Colony NorthStar, Inc. 9 8 10 12 14 16 18 20 22 Strategic Transition Colony NorthStar has a clear, actionable path to capturing significant valuation upside Colony NorthStar Alternative Asset Managers Colony NorthStar’s Path to Multiple Expansion Colony NorthStar’s path to a simpler REIT structure w
Slide 11: Near-Term Priorities
Colony NorthStar, Inc. 10 Near-Term Priorities Asset Sales Successfully closed the sale of a medical office portfolio and an equity interest in the Healthcare portfolio between December ‘16 – January ‘17 Complete sale of Manufactured Housing portfolio Accelerate monetization of non-core assets
Slide 12: Healthcare Portfolio Overview
Colony NorthStar, Inc. 11 Senior Housing 40% SNF 35% MOB 19% Hospital 6% <1.0x 3% 1.0x - 1.5x 59% >1.5x 38%Private Pay 62% Medicaid 29% Medicare 9% Platform and Strategy Overview Diversified portfolio across senior housing facilities (operating and triple net), medical office buildings, skilled nu
Slide 13: Healthcare Geographic Overview
Colony NorthStar, Inc. 12 Geographic Overview (% of 2016 Property Count) PA: 3% KY: <1% TX: 8% CO: 2% WA: 2% GA: 5% IL: 9% MI: 1% MD: <1% NC: 2% AL: <1% TN: 2% OH: 8% NM: <1% AZ: <1% MA: 2% VA: 2% UT: <1% SC: <1% OR: 7% OK: 2% NE: <1% MO: <1% MS: <1% MN: 3% KS: <1% IN: 13% ID: <1% FL: 7% CA: 4% AR:
Slide 14: Healthcare Portfolio – Select Photos
Colony NorthStar, Inc. 13 Healthcare Portfolio – Select Photos Carriage Court Senior Housing Memphis, TN The Durham Senior Housing Durham, NC Liberty Heights Senior Housing Colorado Springs, CO Mooresville Senior Housing Mooresville, IN Wakarusa SNF Wakarusa, IN Tuscola Senior Housing Tuscola, IL
Slide 15: Industrial Portfolio Overview
Colony NorthStar, Inc. 14 Industrial Portfolio Overview Platform and Strategy Overview Vertically integrated, industrial operating platform Invest in U.S. light industrial properties, which are the critical and essential “last mile” of the logistics chain and are experiencing high demand due to
Slide 16: Industrial Geographic Overview
Colony NorthStar, Inc. 15 Geographic Overview (% of 2016 NOI) Philadelphia/ New Jersey: 10% Denver: 3% Atlanta: 22% Baltimore: 1% Phoenix: 6% Austin: 1% Salt Lake City: 4% Kansas City: 4% St. Louis: 3% Minneapolis: 7% Chicago: 11% Houston: 6% Dallas: 17% Orlando: 3% Tampa: 2%
Slide 17: Industrial Portfolio – Select Photos
Colony NorthStar, Inc. 16 Industrial Portfolio – Select Photos Parc 114 – Dallas, TX Commerce Center – Phoenix, AZ Meadows at Bluegrass – Atlanta, GA Mission Park – Phoenix, AZ CrownPointe I-IV – Orlando, FL GSW & Alliance – Dallas, TX
Slide 18: Hospitality Portfolio Overview
Colony NorthStar, Inc. 17 Hospitality Portfolio Overview Attractive Select Service Portfolio Well-diversified across 26 states, including California (17% of 2016 EBITDA), Florida (11%) and New Jersey (7%) 95% branded with Marriott or Hilton Well-maintained with over $200 million (~$9,000/key)
Slide 19: Hospitality Geographic Overview
Colony NorthStar, Inc. 18 Geographic Overview (% of 2016 NOI) NJ: 7% NY: 5% PA: 2% KY: 2% CO: 3% GA: 4% IL: 1% MI: 4% San Francisco/ San Jose: 9% CT: 2% MD: 3% NC: 4% AL: <1% TN: 3% OH: 2% NM: <1% AZ: 2% NH: 4% MA: 3% CA: 17% WA: 5% FL: 11% TX: 9% LA: 1% VA: 5% ME: <1% * Los Angeles/ Long Beach/ Ana
Slide 20: Hospitality Portfolio – Select Photos
Colony NorthStar, Inc. 19 Hospitality Portfolio – Select Photos Aloft – Chapel Hill, NC Courtyard – Miami, FL Residence Inn – San Jose, CA Courtyard – West Palm Beach, FL Courtyard – Seattle, WA Hyatt House – Los Angeles, CA
Slide 21: Other Equity & Debt: Top Ten Investments
Colony NorthStar, Inc. 20 Gross Net AUM AUM 1 Investment Category Category ($ in mm) ($ in mm) 1. Colony Starwood Homes Equity: SFR $919 $388 2. Floating Rate 1st Mortgage Securitization Debt: Loan Originations 847 316 3. Private Equity Secondaries Equity: PE Fund Interests 417 417 4. Statoil Global
Slide 22: Investment Management Platform Overview
Colony NorthStar, Inc. 21 Manager of public / private vehicles Sponsor of private equity funds Embedded broker-dealer Sponsor of retail vehicles Investment management segments may include the full spectrum of real assets (e.g. real estate, infrastructure, energy, etc.) $41 Billion 3rd PART
Slide 23: Investment Management Segments
Colony NorthStar, Inc. 22 12/31/2016 Segment Products AUM ($bn) Description Institutional Funds ● Credit funds ● Core plus / value-added ● Opportunistic ● Colony Industrial open-end fund ● Other special accounts and co- investment vehicles 11.0 ● 25 years of institutional investment management exper
Slide 24: Initial Dividend and Capital Structure
Colony NorthStar, Inc. 23 Initial Dividend Capital Structure1 Capital Structure 1. Total market capitalization based on debt balances as of 12/31/16 (pro forma for the sale of the manufactured housing portfolio and excluding recourse debt repaid in connection with the merger closing), preferred equi
Slide 25: Best-in-Class Corporate Governance
Colony NorthStar, Inc. 24 Best-in-Class Corporate Governance Colony NorthStar has implemented best-in-class corporate governance policies, which align the interests of the Board and management with the interests of public REIT shareholders. Policies Highlight Alignment with Public Shareholders Opted
Slide 26: Appendix
D> NORTHSTAR APPENDIX
Slide 27: Attractive Sector Fundamentals
Colony NorthStar, Inc. 26 Attractive Sector Fundamentals Strong Demand – Light Industrial properties are the critical “last mile” and an essential part of the logistics chain Smaller infill locations are vital for e-commerce and other tenants that require increasingly quick delivery times Limi
Slide 28: Capital Formation and Operational Execution
Colony NorthStar, Inc. 27 Capital Formation Initial Acquisition (Q4 2014) Colony, in partnership with three institutional co-investors, acquired a $1.6 billion light industrial portfolio $950 million of total equity commitments, including $390 million of dry powder Current On September 30, 201
Slide 29: Core Property Vertical Case Study – Colony Starwood Homes
Colony NorthStar, Inc. 28 Core Property Vertical Case Study – Colony Starwood Homes Colony Starwood Homes is the successful culmination of building a platform/vertical from the “ground up” including capital formation, management team recruitment and property aggregation Thesis Colony American Home
Slide 30: Colony Starwood Homes Case Study (Cont.)
Colony NorthStar, Inc. 29 Core Property Vertical Case Study – Colony Starwood Homes (Cont.) Through Colony’s stewardship, Colony Starwood Homes is now a leading independent publicly traded REIT (NYSE: SFR) focused on single family homes for rent with over 35,000 homes Structure & Consideration Mer
Slide 31: Notes on asset monetizations
Colony NorthStar, Inc. 30 Notes: 1. Pro forma for asset monetizations which include the following: a portfolio of senior housing assets sold during the first quarter 2016; a portfolio of medical office buildings sold during the fourth quarter 2016; the net lease industrial portfolio sold during the
Slide 32: NOI Reconciliation – Industrial (Historical CLNY)
Colony NorthStar, Inc. 31 NOI Reconciliation – Industrial (Historical CLNY) ($ in thousands) Industrial Property operating income 194,670$ Other income 1,685 Straight-line rent revenue and amortization of acquired above- and below-market lease intangibles, net (3,798) Total income 192,557 Property o
Slide 33: Presentation Endnotes
Colony NorthStar, Inc. 32 Presentation Endnotes Assets Under Management (“AUM”): Refers to assets which the Company and its affiliates provides investment management services, including assets for which the Company may or may not charge management fees and/or performance allocations. AUM is generall
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