Colony Capital, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 SUPPLEMENTAL

Attached files

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EX-99.1 - EXHIBIT 99.1 PRESS RELEASE - Colony Capital, Inc.	a2016q2exhibit991pressrele.htm
8-K - FORM 8-K - Colony Capital, Inc.	clny2016q2form8-k.htm

Forward-Looking Statements

Some of the statements contained in this presentation constitute 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 of forward-Looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions.

The forward-looking statements contained in this presentation reflect Colony Capital, Inc.’s (or “the Company”) current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances, many of which are beyond the Company’s control, that may cause the Company’s actual results to differ significantly from those expressed in any forward-looking statement. Statements regarding the following subjects, among others, may be forward-looking: the market, economic and environmental conditions in the industrial real estate, single-family rental, and lodging sectors; any decrease in the Company’s net income and funds from operations as a result of the combination transaction with Colony Capital, LLC; the Company’s ability to manage the combination with Colony Capital, LLC effectively; the Company’s exposure to risks to which it has not historically been exposed, including liabilities with respect to the assets acquired from Colony Capital, LLC and ongoing liabilities and business risks inherent to Colony Capital LLC’s business; the Company’s business and investment strategy, including the Company’s investment in and ability to generate revenue from the single-family homes in which the Company indirectly owns an interest; the Company’s ability to dispose of its real estate investments quickly; the performance of the hotels in which the Company owns an interest; market trends in the Company’s industry, interest rates, real estate values, the debt securities markets or the general economy or the demand for commercial real estate loans; the Company’s projected operating results; actions, initiatives and policies of the U.S. government and changes to U.S. government policies and the execution and impact of these actions, initiatives and policies; the state of the U.S. and global economy generally or in specific geographic regions; the Company’s ability to obtain and maintain financing arrangements, including securitizations; the amount and value of commercial mortgage loans requiring refinancing in future periods; the availability of attractive investment opportunities; the availability and cost of debt financing from traditional lenders; the volume of short-term loan extensions; the demand for new capital to replace maturing loans; the Company’s expected leverage; the general volatility of the securities markets in which the Company participates; changes in the value of the Company’s assets; interest rate mismatches between the Company’s target assets and any borrowings used to fund such assets; changes in interest rates and the market value of the Company’s target assets; changes in prepayment rates on the Company’s target assets; effects of hedging instruments on the Company’s target assets; rates of default or decreased recovery rates on the Company’s target assets; the impact of and changes in governmental regulations, tax law and rates, accounting guidance and similar matters; the Company’s ability to maintain its qualification as a real estate investment trust, or REIT, for U.S. federal income tax purposes; the Company’s ability to maintain its exemption from registration as an investment company under the Investment Company Act of 1940, as amended (the “1940 Act”); the availability of opportunities to acquire commercial mortgage-related, real estate-related and other securities; the availability of qualified personnel; estimates relating to the Company’s ability to make distributions to the Company’s stockholders in the future; and the Company’s understanding of its competition.

While forward-looking statements reflect Colony Capital, Inc.’s good faith beliefs, assumptions and expectations, they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and subsequent filings with the SEC.

This presentation contains statistics and other data that has been obtained from or compiled from information made available by third-party service providers. Colony Capital, Inc. has not independently verified such statistics or data.

This information is provided for informational purposes only and is not intended to be indicative of future results. Actual performance of Colony Capital, Inc. may vary materially.




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 1 \|

Important Note Regarding Non-GAAP Financial Measures

This supplemental package includes certain “non-GAAP” supplemental measures that are not defined by generally accepted accounting principles, or GAAP, including funds from operations, or FFO, and core funds from operations, or Core FFO.

The Company calculates funds from operations ("FFO") in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, which defines FFO as net income or loss calculated in accordance with GAAP, excluding gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus real estate-related depreciation and amortization, and after similar adjustments for unconsolidated partnerships and joint ventures. Included in FFO are gains and losses from sales of assets which are not depreciable real estate such as loans receivable, investments in unconsolidated joint ventures as well as investments in debt and other equity securities, as applicable.

The Company computes core funds from operations ("Core FFO") by adjusting FFO for the following items, including the Company's share of these items recognized by unconsolidated partnerships and joint ventures: (i) gains and losses from sales of depreciable real estate, net of depreciation, amortization and impairment previously adjusted for FFO; (ii) stock compensation expense; (iii) effects of straight-line rent revenue and straight-line rent expense on ground leases; (iv) amortization of acquired above- and below-market lease values; (v) amortization of deferred financing costs and debt premiums and discounts; (vi) unrealized fair value gains or losses on derivative instruments and on foreign currency remeasurements; (vii) acquisition-related expenses, merger and integration costs; (viii) amortization and impairment of finite-lived intangibles related to investment management contracts and customer relationships; (ix) gain on remeasurement of consolidated investment entities and the effect of amortization thereof; (x) non-real estate depreciation and amortization; (xi) change in fair value of contingent consideration; and (xii) deferred tax effect on the foregoing adjustments. Also, beginning with the first quarter of 2016, the Company's share of Core FFO from its interest in Colony Starwood Homes (NYSE:SFR) will represent its percentage interest multiplied by SFR's reported Core FFO, which may differ from the Company's calculation of Core FFO. Refer to SFR's filings for its definition and calculation of Core FFO.

FFO and Core FFO should not be considered alternatives to GAAP net income as indications of operating performance, or to cash flows from operating activities as measures of liquidity, nor as indications of the availability of funds for the Company's cash needs, including funds available to make distributions. FFO and Core FFO should not be used as supplements to or substitutes for cash flow from operating activities computed in accordance with GAAP. The Company's calculations of FFO and Core FFO may differ from methodologies utilized by other REITs for similar performance measurements, and, accordingly, may not be comparable to those of other REITs.

The Company uses FFO and Core FFO as supplemental performance measures because, in excluding real estate depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates, and operating costs. The Company also believes that, as widely recognized measures of the performance of REITs, FFO and Core FFO will be used by investors as a basis to compare its operating performance with that of other REITs. However, because FFO and Core FFO excludes depreciation and amortization and captures neither the changes in the value of the Company’s properties that results from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of its properties, all of which have real economic effect and could materially impact the Company’s results from operations, the utility of FFO and Core FFO as measures of the Company’s performance is limited. Other equity REITs may not calculate FFO and Core FFO in accordance with the NAREIT definition and, accordingly, the Company’s FFO and Core FFO may not be comparable to such other REITs’ FFO and Core FFO. Accordingly, FFO and Core FFO should be considered only as supplements to net income as a measure of the Company’s performance.




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 2 \|

Table of Contents



			Page				Page
I.	Overview			V.	Single Family Residential Rentals
	a.	Summary Metrics	4		a.	Summary Metrics	17
	b.	Summary of Segments	5	VI.	Other Real Estate Equity
II.	Financial Results				a.	Summary Metrics	18
	a.	Consolidated Income Statements	6		b.	Portfolio Overview	19
	b.	Pro Rata Segment Balance Sheets	7	VII.	Real Estate Debt
	c.	Pro Rata Segment Operating Results	8		a.	Summary Metrics	20
	d.	Pro Rata Segment Reconciliation of Net Income to FFO & Core FFO	9		b.	Portfolio Overview by Loan Type	21
III.	Capitalization				c.	Portfolio Overview by Collateral Type	22
	a.	Overview	10	VIII.	Investment Management
	b.	Debt Overview	11		a.	Summary Metrics	23
	c.	Investment-Level Debt Overview	12	IX.	Definitions		24
	d.	Credit Facility, Convertible Debt & Preferred Equity Overview	14
IV.	Colony Light Industrial Platform
	a.	Summary Metrics	15
	b.	Portfolio & Lease Overview	16




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 3 \|

Ia. Overview—Summary Metrics



Summary metrics
($ and shares in thousands, except per share data, unless otherwise noted; as of or for the three months ended June 30, 2016 unless otherwise noted)
Financial data
Net income attributable to common stockholders	$	42,956
Net income attributable to common stockholders per basic share		0.38
Core FFO		100,394
Core FFO per basic share		0.75
FFO		78,580
FFO per basic share		0.58
Q3 2016 dividend per share		0.40
Annualized dividend		1.60
AUM	$	18.4 billion
FEEUM		7.6 billion



Balance sheet, capitalization and trading statistics
Total consolidated assets	$	9,883,159
CLNY OP share of consolidated assets		6,895,671
Total consolidated debt ⁽¹⁾		4,243,504
CLNY OP share of consolidated debt ⁽¹⁾		3,341,297
Shares and OP units outstanding as of 8/5/2016		134,715
Share price as of 8/5/2016	$	17.97
Market value of common equity & OP units		2,420,828
Liquidation preference of preferred equity		625,750
Insider ownership of shares and OP units		18.2	%

________

Note: See appendix for definitions and acronyms.

(1) Represents principal balance and excludes debt issuance costs, discounts and premiums.




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 4 \|

Ib. Overview—Summary of Segments



($ in thousands, unless otherwise noted; as of or for the three months ended June 30, 2016)
Light Industrial
1) CLNY OP share of undepreciated cost basis of real estate assets ⁽¹⁾⁽²⁾	$	1,262,868
CLNY OP share of investment-level non-recourse financing ⁽³⁾		742,922
2) Carrying value of CLIP operating platform		20,000
Net income attributable to common stockholders		2,995
Core FFO		17,517
Single Family Residential Rentals
1) CLNY OP share of equity method investments - Colony Starwood Homes	$	325,857
Colony Starwood Homes shares beneficially owned by OP and common stockholders		15.1 million
CLNY OP interest in SFR as of June 30, 2016		14.0%
2) CLNY OP share of equity method investments - Colony American Finance		56,769
CLNY OP interest in CAF as of June 30, 2016		17.4%
Net loss attributable to common stockholders		(1,712	)
Core FFO		5,655
Other Real Estate Equity
1) CLNY OP share of undepreciated cost basis of real estate assets, held for investment ⁽¹⁾⁽²⁾	$	973,240
2) CLNY OP share of undepreciated cost basis of real estate assets, held for sale ⁽¹⁾		86,351
3) CLNY OP share of equity method investments		143,896
CLNY OP share of investment-level non-recourse financing ⁽³⁾		595,394
4) CLNY OP share of other investments - Albertsons investment		49,862
Net income attributable to common stockholders		36,777
Core FFO		49,588
Real Estate Debt
1) CLNY OP share of loans receivable held for investment, net	$	2,680,712
CLNY OP share of investment-level financing ⁽³⁾		929,904
2) CLNY OP share of carrying value of real estate assets (REO within debt portfolio) ⁽¹⁾		35,691
3) CLNY OP share of investments in equity method investments		118,465
4) CLNY OP share of other investments		4,649
Net income attributable to common stockholders		44,549
Core FFO		60,523
Investment Management
AUM	$	18.4 billion
FEEUM		7.6 billion
Credit Funds		3.7 billion
Core Plus / Value-Add Funds		1.6 billion
Opportunity Funds		2.3 billion
Net income attributable to common common stockholders		2,639
Core FFO		5,916

________

(1) Includes all components related to real estate assets, including tangible real estate and lease-related intangibles.

(2) Excludes accumulated depreciation.

(3) Represents unpaid principal balance.




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 5 \|

IIa. Financial Results—Consolidated Income Statements



	2015														2016
($ in thousands, except per share data)	Q1 ⁽¹⁾			Q2				Q3				Q4			Q1				Q2
Income
Interest income	$	46,137		$	101,270			$	142,269			$	127,629		$	89,361			$	103,860
Property operating income	43,793			83,230				86,435				86,413			91,617				95,348
Income from equity method investments	26,349			10,956				6,879				3,421			2,429				53,113
Fee income	—			21,928				23,070				20,745			16,609				15,505
Other income	333			3,520				4,325				3,274			3,202				2,815
Total income	116,612			220,904				262,978				241,482			203,218				270,641
Expenses
Management fees	14,961			101				—				—			—				—
Transaction, investment and servicing expenses	16,807			10,034				7,058				28,722			11,421				13,360
Interest expense	26,593			30,924				38,027				37,550			41,871				42,568
Property operating expenses	14,011			35,905				35,615				32,182			30,786				29,780
Depreciation and amortization	22,308			36,645				42,656				39,368			46,142				39,541
Provision for loan losses	—			4,078				26,495				6,538			4,630				6,213
Impairment loss	—			—				317				10,425			2,079				2,441
Compensation expense	—			28,644				25,734				29,513			26,867				24,240
Administrative expenses	4,781			11,411				11,154				11,507			12,771				13,098
Total expenses	99,461			157,742				187,056				195,805			176,567				171,241
Gain on sale of real estate assets, net	—			—				—				—			51,119				5,844
Gain on remeasurement of consolidated investment entities, net	—			41,486				—				—			—				—
Other (loss) gain, net	(286		)	(1,215		)		(759		)		5,602			14,045				(348		)
Income before income taxes	16,865			103,433				75,163				51,279			91,815				104,896
Income tax (provision) benefit	(650		)	(349		)		3,598				6,697			(784		)		(1,760		)
Net income	16,215			103,084				78,761				57,976			91,031				103,136
Net income attributable to noncontrolling interests—Investment entities	5,686			34,630				22,264				23,543			57,595				40,169
Net income attributable to noncontrolling interests—Operating Company	—			9,138				7,200				3,595			3,421				7,918
Net income attributable to Colony Capital, Inc.	10,529			59,316				49,297				30,838			30,015				55,049
Preferred dividends	6,972			11,410				12,094				12,093			11,880				12,093
Net income attributable to common stockholders	$	3,557		$	47,906			$	37,203			$	18,745		$	18,135			$	42,956
Net income per common share—Basic	$	0.03		$	0.43			$	0.33			$	0.17		$	0.16			$	0.38
Net income per common share—Diluted	$	0.03		$	0.40			$	0.32			$	0.17		$	0.16			$	0.36
Weighted average number of common shares outstanding—Basic	109,415			111,394				111,443				111,444			111,660				112,306
Weighted average number of common shares outstanding—Diluted	109,415			136,434				136,138				111,444			111,660				137,255
FFO	$	29,663		$	83,159			$	72,162			$	54,272		$	36,729			$	78,580
FFO per basic share	$	0.27		$	0.62			$	0.54			$	0.41		$	0.27			$	0.58
Core FFO	$	53,561		$	58,692		⁽²⁾	$	70,064		⁽²⁾	$	75,562	⁽²⁾	$	53,316		⁽²⁾	$	100,394
Core FFO per basic share	$	0.49		$	0.44		⁽²⁾	$	0.52		⁽²⁾	$	0.56	⁽²⁾	$	0.41		⁽²⁾	$	0.75

__________


(1)	Prior to the Combination transaction on April 2, 2015, the Company was externally managed and many of the Company's investments were held through unconsolidated joint ventures. Therefore, results of operations for Q1 2015 are not directly comparable to subsequent quarters.


(2)	The Company added the deferred tax effect related to Core FFO adjustments to the definition of Core FFO. As such, the Company has presented revised Core FFO and Core FFO per basic common share / common OP Unit for prior periods to exclude such deferred tax effects to conform to the current quarter calculation of Core FFO.




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 6 \|

IIb. Financial Results—Pro Rata Segment Balance Sheets



	OP pro rata share by segment																			Amounts attributable to noncontrolling interests		CLNY consolidated as reported
($ in thousands; as of June 30, 2016)	Light Industrial Platform			Single-Family Residential Rentals			Other Real Estate Equity			Real Estate Debt			Investment Management		Amounts not allocated to segments			Total OP pro rata share		Amounts attributable to noncontrolling interests		CLNY consolidated as reported
ASSETS
Cash	$	9,616		$	—		$	33,048		$	36,960		$	13,601	$	55,648		$	148,873	$	78,331	$	227,204
Loans receivable held for investment, net	—			—			—			2,680,712			—		—			2,680,712		1,141,483		3,822,195
Real estate assets, net
Held for investment	1,131,199			—			874,997			8,954			—		—			2,015,150		1,242,900		3,258,050
Held for sale	7,018			—			77,496			26,680			—		—			111,194		108,761		219,955
Equity method investments	—			382,626			143,896			118,465			9,187		14,961			669,135		151,925		821,060
Other investments	—			—			49,862			4,649			—		—			54,511		68,644		123,155
Goodwill	20,000			—			—			—			660,127		—			680,127		—		680,127
Deferred leasing costs and intangible assets, net	47,849			—			94,804			57			78,181		—			220,891		100,533		321,424
Due from affiliates and other assets	19,133			—			46,407			159,832			19,944		69,762			315,078		94,911		409,989
Total assets	$	1,234,815		$	382,626		$	1,320,510		$	3,036,309		$	781,040	$	140,371		$	6,895,671	$	2,987,488	$	9,883,159
LIABILITIES & EQUITY
Liabilities:
Accrued and other liabilities	$	29,517		$	—		$	48,642		$	79,481		$	43,020	$	26,811		$	227,471	$	49,866	$	277,337
Intangible liabilities, net	6,989			—			4,745			—			—		—			11,734		10,925		22,659
Due to affiliates—contingent consideration	—			—			—			—			—		43,900			43,900		—		43,900
Dividends and distributions payable	—			—			—			—			—		65,979			65,979		—		65,979
Debt, net	734,185			—			586,226			923,679			—		470,577			2,714,667		886,502		3,601,169
Convertible senior notes, net	—			—			—			—			—		591,942			591,942		—		591,942
Total liabilities	770,691			—			639,613			1,003,160			43,020		1,199,209			3,655,693		947,293		4,602,986
Equity:
Stockholders' equity	405,963			334,707			595,577			1,778,385			645,536		(926,151		)	2,834,017		—		2,834,017
Noncontrolling interests in investment entities	—			—			—			—			—		—			—		2,040,195		2,040,195
Noncontrolling interests in Operating Company	58,161			47,919			85,320			254,764			92,484		(132,687		)	405,961		—		405,961
Total equity	464,124			382,626			680,897			2,033,149			738,020		(1,058,838		)	3,239,978		2,040,195		5,280,173
Total liabilities and equity	$	1,234,815		$	382,626		$	1,320,510		$	3,036,309		$	781,040	$	140,371		$	6,895,671	$	2,987,488	$	9,883,159
By Geography⁽¹⁾:
United States	100		%	100		%	47		%	82		%	N/A		N/A
Europe	—		%	—		%	53		%	16		%	N/A		N/A
Other	—		%	—		%	—		%	2		%	N/A		N/A

__________

(1) Geographic breakdown for each segment is based on the net assets of the underlying investments held by each segment.




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 7 \|

IIc. Financial Results—Pro Rata Segment Operating Results



	OP pro rata share by segment																				Amounts attributable to noncontrolling interests			CLNY consolidated as reported
($ in thousands; for the three months ended June 30, 2016)	Light Industrial Platform		Single-Family Residential Rentals			Other Real Estate Equity			Real Estate Debt			Investment Management			Amounts not allocated to segments			Total OP pro rata share
Income
Interest income	$	—	$	—		$	8		$	65,363		$	—		$	18		$	65,389		$	38,471		$	103,860
Property operating income	29,812		—			24,936			792			—			—			55,540			39,808			95,348
(Loss) income from equity method investments	—		(2,026		)	39,695			3,054			(493		)	1,897			42,127			10,986			53,113
Fee income	—		—			—			31			15,505			—			15,536			(31		)	15,505
Other income	3,483		—			89			437			—			666			4,675			(1,860		)	2,815
Total income	33,295		(2,026		)	64,728			69,677			15,012			2,581			183,267			87,374			270,641
Expenses
Transaction, investment and servicing expenses	106		—			668			1,532			22			7,125			9,453			3,907			13,360
Interest expense	6,210		—			6,429			8,823			—			10,949			32,411			10,157			42,568
Property operating expenses	8,370		—			5,887			715			—			—			14,972			14,808			29,780
Depreciation and amortization	13,557		—			8,322			75			3,559			1,100			26,613			12,928			39,541
Provision for loan losses	—		—			—			2,250			—			—			2,250			3,963			6,213
Impairment loss	85		—			—			638			—			—			723			1,718			2,441
Compensation expense	1,213		—			629			2,061			7,880			11,511			23,294			946			24,240
Administrative expenses	298		—			834			1,045			692			8,561			11,430			1,668			13,098
Total expenses	29,839		—			22,769			17,139			12,153			39,246			121,146			50,095			171,241
Gain on sale of real estate assets, net	12		—			1,296			530			—			—			1,838			4,006			5,844
Other gain (loss), net	42		—			442			(113		)	44			(837		)	(422		)	74			(348		)
Income before income taxes	3,510		(2,026		)	43,697			52,955			2,903			(37,502		)	63,537			41,359			104,896
Income tax benefit (expense)	36		—			(473		)	(193		)	227			(167		)	(570		)	(1,190		)	(1,760		)
Net income (loss)	3,546		(2,026		)	43,224			52,762			3,130			(37,669		)	62,967			40,169			103,136
Net income attributable to noncontrolling interests:
Investment entities	—		—			—			—			—			—			—			40,169			40,169
Operating Company	551		(314		)	6,447			8,213			491			(7,470		)	7,918			—			7,918
Net income (loss) attributable to Colony Capital, Inc.	2,995		(1,712		)	36,777			44,549			2,639			(30,199		)	55,049			—			55,049
Preferred dividends	—		—			—			—			—			12,093			12,093			—			12,093
Net income (loss) attributable to common stockholders	$	2,995	$	(1,712	)	$	36,777		$	44,549		$	2,639		$	(42,292	)	$	42,956		$	—		$	42,956




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 8 \|

IId. Financial Results—Pro Rata Segment Reconciliation of Net Income to FFO & Core FFO



	OP pro rata share by segment																					Amounts attributable to noncontrolling interests			CLNY consolidated as reported
($ in thousands; for the three months ended June 30, 2016)	Light Industrial Platform			Single-Family Residential Rentals			Other Real Estate Equity			Real Estate Debt			Investment Management			Amounts not allocated to segments			Total OP pro rata share			Amounts attributable to noncontrolling interests			CLNY consolidated as reported
Net income (loss) attributable to common stockholders	$	2,995		$	(1,712	)	$	36,777		$	44,549		$	2,639		$	(42,292	)	$	42,956		$	—		$	42,956
Net income attributable to noncontrolling common interests in Operating Company	551			(314		)	6,447			8,213			491			(7,470		)	7,918			—			7,918
Net income (loss) attributable to common interests in Operating Company and common stockholders	3,546			(2,026		)	43,224			52,762			3,130			(49,762		)	50,874			—			50,874
Adjustments for FFO:
Real estate depreciation and amortization	13,557			6,216			9,071			75			—			—			28,919			12,989			41,908
Impairment of real estate	85			20			—			488			—			—			593			1,868			2,461
Gain on sales of real estate	(12		)	(73		)	(1,296		)	(425		)	—			—			(1,806		)	(4,127		)	(5,933		)
Less: Adjustments attributable to noncontrolling interests in investment entities	—			—			—			—			—			—			—			(10,730		)	(10,730		)
FFO	$	17,176		$	4,137		$	50,999		$	52,900		$	3,130		$	(49,762	)	$	78,580		$	—		$	78,580

Additional adjustments for Core FFO:
Gain on sale of real estate, net of depreciation, amortization and impairment previously adjusted for FFO	20			—			(1,007		)	196			—			—			(791		)	2,224			1,433
Noncash equity compensation expense	102			111			89			202			994			2,036			3,534			—			3,534
Straight-line rent revenue	(836		)	—			(1,638		)	—			—			—			(2,474		)	(1,122		)	(3,596		)
Loss on change in fair value of contingent consideration	—			—			—			—			—			689			689			—			689
Amortization of acquired above- and below-market lease intangibles, net	359			—			(418		)	—			—			—			(59		)	117			58
Amortization of deferred financing costs and debt premium and discounts	634			1,476			1,020			1,702			—			924			5,756			2,293			8,049
Unrealized (gain) loss on derivatives	—			(644		)	8			—			(44		)	—			(680		)	17			(663		)
Acquisition-related expenses, merger and integration costs	62			948			376			—			—			6,437			7,823			1,083			8,906
Amortization and impairment of investment management intangibles	—			—			—			—			3,558			—			3,558			—			3,558
Non-real estate depreciation and amortization	—			—			—			—			—			1,100			1,100			—			1,100
Amortization of gain on remeasurement of consolidated investment entities, net	—			—			159			5,523			—			—			5,682			16,131			21,813
Deferred tax benefit, net	—			—			—			—			(1,722		)	(229		)	(1,951		)	—			(1,951		)
Net gain on SFR's non-performing loans business	—			(373		)	—			—			—			—			(373		)	—			(373		)
Less: Adjustments attributable to noncontrolling interests in investment entities	—			—			—			—			—			—			—			(20,743		)	(20,743		)
Core FFO	$	17,517		$	5,655		$	49,588		$	60,523		$	5,916		$	(38,805	)	$	100,394		$	—		$	100,394




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 9 \|

IIIa. Capitalization—Overview



($ in thousands, except share and per share data; as of June 30, 2016, unless otherwise noted)
Debt (UPB)
$850,000 Revolving credit facility				$	428,500
5.0% Convertible senior notes due 2023				200,000
3.875% Convertible senior notes due 2021				402,500
Corporate aircraft promissory note				42,077
CLNY OP share of investment-level debt				2,268,220
Total CLNY OP share of debt				3,341,297
Preferred equity
Series A 8.5% cumulative redeemable perpetual preferred stock, redemption value				252,000
Series B 7.5% cumulative redeemable perpetual preferred stock, redemption value				86,250
Series C 7.125% cumulative redeemable perpetual preferred stock, redemption value				287,500
Total redemption value of preferred equity				625,750
Common equity (as of August 5, 2016)	Price per share		Shares / Units
Class A common stock	$	17.97	113,264	2,035,354
Class B common stock	17.97		527	9,470
OP units	17.97		20,924	376,004
Total market value of common equity				2,420,828

Total capitalization				$	6,387,875




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 10 \|

IIIb. Capitalization—Debt Overview



Debt overview
($ in thousands; as of June 30, 2016)	Type	Weighted-average years remaining to maturity	Weighted-average interest rate		CLNY OP pro rata share of unpaid principal balance		Deferred financing costs and discount / premium			CLNY OP pro rata share of carrying value
Investment-level debt by segment
Light Industrial Platform	Non-recourse	4.1	2.92	%	$	742,922	$	(8,737	)	$	734,185
Other Real Estate Equity	Non-recourse	7.8	3.61	%	595,394		(9,168		)	586,226
Real Estate Debt	Partial recourse ⁽¹⁾	14.3	2.70	%	929,904		(6,225		)	923,679
Total investment-level debt		9.2	3.01	%	2,268,220		(24,130		)	2,244,090

Corporate debt
Line of credit	Recourse	4.8	2.91	%	428,500		—			428,500
5.0% Convertible senior notes	Recourse	6.8	5.00	%	200,000		(4,651		)	195,349
3.875% Convertible senior notes	Recourse	4.5	3.88	%	402,500		(5,907		)	396,593
Corporate aircraft promissory note	Recourse	9.4	5.02	%	42,077		—			42,077
Total corporate debt		5.2	3.74	%	1,073,077		(10,558		)	1,062,519

Total debt outstanding		7.9	3.25	%	$	3,341,297	$	(34,688	)	$	3,306,609



Debt maturity and amortization schedule⁽²⁾

	Payments due by period
($ in thousands; as of June 30, 2016)	2016		2017		2018		2019		2020		2021 and after		Total
Line of credit	$	—	$	—	$	—	$	—	$	—	$	428,500	$	428,500
Convertible senior notes	—		—		—		—		—		602,500		602,500
Warehouse facilities	—		47,253		131,327		—		—		—		178,580
Corporate aircraft promissory note	929		1,930		2,029		2,134		2,244		32,811		42,077
CMBS securitization debt	—		—		—		—		—		679,141		679,141
Scheduled amortization payments on investment-level debt	2,743		5,991		6,097		5,683		5,745		39,170		65,429
Balloon payments on investment-level debt	17,495		86,178		666,776		17,106		6,323		551,192		1,345,070
Total	$	21,167	$	141,352	$	806,229	$	24,923	$	14,312	$	2,333,314	$	3,341,297

__________

(1) $80 million is recourse debt.

(2) Based on initial maturity dates or extended maturity dates to the extent criteria are met and the extension option is at the borrower's discretion.




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 11 \|

IIIc. Capitalization—Investment Level Debt Overview

($ and € in thousands; as of June 30, 2016)

Light Industrial Platform

Initial / current

maturity date

Fully extended

maturity date

Interest

rate

Maximum

principal amount

CLNY OP

pro rata share

CLIP acquisition financing

Dec-2016

Dec-2019

L + 2.25%

⁽¹⁾

N/A

563,610

CLIP fixed rate mortgage

Aug-2025

3.80%

N/A

104,577

CLIP credit facility

Jul-2016 ⁽²⁾

Jan-2017

L + 2.25%

100,000

15,773

CLIP fixed rate mortgage

Apr-2028

4.04%

N/A

58,962

Total UPB of debt related to Light Industrial Platform

742,922

Debt issuance costs

(8,737

)

Total carrying value of debt related to Light Industrial Platform segment

734,185

Other Real Estate Equity

Initial / current

maturity date

Fully extended

maturity date

Interest

rate

Maximum

principal amount

CLNY OP
pro rata share

NNN investments

Office - Minnesota

Jan-2024

4.84

N/A

86,818

Office - France

Nov-2022

1.89

N/A

17,436

Office - Norway

Jun-2025

3.91

N/A

191,360

Education - Switzerland

Dec-2029

2.72

N/A

122,318

Total UPB of debt related to NNN investments, held for investment

417,932

Other real estate assets

Hotel portfolio - Various U.S.

Jan-2019

Jan-2021

L + 4.65%

N/A

12,387

Office - Arizona

Jul-2018

Jul-2020

L + 2.65%

N/A

7,030

Mixed use - Italy

Nov-2018

4.02%

N/A

24,514

⁽³⁾

Industrial - Spain

Jan-2021

3M EUR + 3.00%

N/A

22,381

Industrial - Spain

Jun-2022

3M EUR + 2.80%

N/A

11,841

Office portfolio - UK

Aug-2018

Aug-2020

3M GBP L + 2.50%

N/A

39,530

Office - UK

Feb-2020

3M GBP L + 2.35%

N/A

6,323

Mixed use - UK

Dec-2018

Dec-2020

3M GBP L + 3.28%

N/A

42,534

Total UPB of debt related to other real estate assets, held for investment

166,540

Total UPB of debt related to other real estate assets, held for sale

5,918

Subscription line

Sept-2016

L + 1.60%

N/A

5,004

Total UPB of debt related to Other Real Estate Equity segment

595,394

Total debt issuance costs and discount

(9,168

)

Total carrying value of debt related to Other Real Estate Equity segment

586,226

__________

(1) Interest rate increases to 1-month LIBOR plus 2.5% after December 2018.

(2) In July 2016, exercised extension option to January 2017.


(3)	Seller provided zero-interest financing on acquired portfolio of properties, requiring principal payments of €15,750, €35,438 and €27,562 in Nov 2016, Nov 2017 and Nov 2018, respectively, of which CLNY and OP share is 28%. A discount was established at inception with an imputed interest rate of 4.02% and the discount is being accreted based on required payment schedule.




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 12 \|

IIIc. Capitalization—Investment Level Debt Overview (cont'd)

($ in thousands; as of June 30, 2016)

Real Estate Debt

Initial / current

maturity date

Fully-extended

maturity date

Interest rate

Maximum

principal amount

CLNY OP

pro rata share

Non-PCI

CMBS 2015-FL3

Sept-2032

L + 2.36%

N/A

295,350

CMBS 2014-FL2

Nov-2031

L + 2.01%

N/A

161,457

CMBS MF2014-1

Apr-2050

2.54%

N/A

123,515

April 2015 warehouse facility

Apr-2018

Apr-2019

L + 2.50% - L+2.75%

250,000

131,327

CMBS 2014-FL1

Apr-2031

L + 1.78%

N/A

98,819

February 2014 warehouse facility

Feb-2017

L + 2.50%

150,000

47,253

Freddie Mac portfolio

Dec-2017

Dec-2019

L + 2.85%

N/A

42,691

Total UPB of debt related to Non-PCI loans

900,412

PCI

Project London loan portfolio

Apr-2017

Apr-2019

L + 3.75%

N/A

11,027

Metro loan portfolio

Apr-2017

Apr-2018

L + 3.75%

N/A

4,066

California first mortgage portfolio I

Aug-2016

Aug-2018

L + 3.75%

N/A

3,377

California first mortgage portfolio II

Sept-2016

Sept-2018

L + 3.25%

N/A

1,844

Midwest loan portfolio

Jun-2016

Jun-2017

L + 4.00%

N/A

1,590

Total UPB of debt related to PCI loans

21,904

Subscription line

Sept-2016

L + 1.60%

N/A

7,588

Total UPB of debt related to Real Estate Debt segment

929,904

Total debt issuance costs

(6,225

)

Total carrying value of debt related to Real Estate Debt segment

923,679




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 13 \|

IIId. Capitalization—Credit Facility, Convertible Debt & Preferred Stock Overview

($ and shares in thousands; as of or for the three months ended June 30, 2016)

Credit facility

Revolving credit facility

Maximum principal amount

850,000

Amount outstanding

428,500

Initial maturity

March 31, 2020

Fully-extended maturity

March 31, 2021

Interest rate

LIBOR + 2.25%

Covenant level

Actual level at June 30, 2016

Financial covenants as defined in the Credit Agreement:

Consolidated Tangible Net Worth

Minimum $1,915 million

$2,564 million

Consolidated Fixed Charge Coverage Ratio

Minimum 1.50 to 1.00

2.44 to 1.00

Consolidated Interest Coverage Ratio

Minimum 3.00 to 1.00

16.64 to 1.00

Consolidated Leverage Ratio

Maximum 0.65 to 1.00

0.43 to 1.00

Convertible debt

Description

Outstanding

principal

Issuance date

Due date

Interest rate

Conversion price

(per share of common stock)

Conversion

ratio

Conversion

Redemption date

5.0% Convertible senior notes

200,000

April 2013

April 15, 2023

5.00% fixed

23.35

42.8183

8,564

On or after April 22, 2020

3.875% Convertible senior notes

402,500

January and June 2014

January 15, 2021

3.875% fixed

24.56

40.7089

16,385

On or after January 22, 2019

602,500

Preferred stock

Description

Liquidation preference

Issuance date

Dividend rate

outstanding

Redemption period

Series A 8.5% cumulative redeemable perpetual

252,000

March 2012

8.50%

10,080

On or after March 27, 2017

Series B 7.5% cumulative redeemable perpetual

86,250

June 2014

7.50%

3,450

On or after June 19, 2019

Series C 7.125% cumulative redeemable perpetual

287,500

April 2015

7.125%

11,500

On or after April 13, 2020

625,750

25,030




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 14 \|

IVa. CLIP—Summary Metrics



($ in thousands, except per share; as of or for the three months ended June 30, 2016)
Financial results related to the segment
Net Income attributable to common stockholders						$	2,995
Net Income attributable to common stockholders per basic share						0.03
Core FFO						17,517
Core FFO per basic common share						0.13
FFO						17,176
FFO per basic common share						0.13

Portfolio overview
Number of buildings						328
Rentable square feet						35,386
% leased at end of period						94		%
CLNY OP share of undepreciated cost basis of real estate assets ⁽¹⁾						$	1,262,868
CLNY OP share of debt (UPB)						742,922
CLNY OP share of debt / undepreciated cost basis						59		%
Carrying value of CLIP operating platform (CLNY OP owns 100%)						$	20,000
Uncalled third party capital commitments						61,334

Recent acquisitions
Property / portfolio name	Acquisition date	Number of buildings	Rentable square feet	% leased		Purchase price
Q2 2016 acquisitions
Orlando light industrial portfolio	Apr-2016	4	669,010	95	%	55,650
Total		4	669,010	95	%	$	55,650

Q3 2016 acquisitions
Phoenix light industrial building	July-2016	1	60,000	100	%	4,250
Total		1	60,000	100	%	$	4,250

__________

(1) Includes all components related to the real estate assets, including tangible real estate and lease-related intangibles. Excludes accumulated depreciation.




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 15 \|

IVb. CLIP—Portfolio and Lease Overview



(As of or for the three months ended June 30, 2016)
Location Markets	Property type	Number of buildings	Rentable square feet (in thousands)	Annualized base rent (in thousands)		Percentage leased		Number of leases	Lease expiration	Year acquired
United States
Atlanta	Industrial	84	8,286	$	32,049	94	%	233	7/2016 to 4/2030	2014-2015
Austin	Industrial	4	236	1,479		94	%	14	9/2016 to 8/2025	2014
Chicago	Industrial	34	3,972	16,375		93	%	50	7/2016 to 12/2026	2014
Dallas	Industrial	58	6,142	21,129		96	%	150	7/2016 to 4/2040	2014-2015
Denver	Industrial	8	1,128	4,666		98	%	24	7/2016 to 3/2026	2014
Houston	Industrial	21	1,713	8,907		95	%	52	7/2016 to 8/2026	2014
Kansas City	Industrial	9	1,664	5,812		98	%	24	7/2016 to 11/2024	2014
Maryland	Industrial	5	431	2,214		100	%	12	7/2016 to 12/2023	2015-2016
Memphis	Industrial	3	383	752		85	%	5	2/2017 to 9/2024	2014
Minneapolis	Industrial	15	1,993	9,052		90	%	55	7/2016 to 10/2025	2014-2015
New Jersey South / Philadelphia	Industrial	30	3,328	14,361		93	%	70	7/2016 to 4/2027	2014-2015
Orlando	Industrial	7	1,224	5,585		93	%	21	9/2016 to 6/2021	2014 / 2016
Phoenix	Industrial	17	1,645	7,471		93	%	50	10/2016 to 8/2024	2014-2015
Salt Lake City	Industrial	16	1,269	5,218		93	%	33	7/2016 to 11/2023	2014
St. Louis	Industrial	8	1,355	4,503		87	%	16	8/2016 to 7/2024	2014
Tampa	Industrial	9	617	3,095		95	%	34	10/2016 to 1/2024	2014
Total / Weighted average		328	35,386	$	142,668	94	%	843




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 16 \|

Va. Single Family Residential Rentals—Summary Metrics



($ in thousands, except per share and unless otherwise noted; as of or for the three months ended June 30, 2016)
Financial results related to the segment
Net income attributable to common stockholders	$	(1,712	)
Net income attributable to common stockholders per basic share	(0.02		)
Core FFO	5,655
Core FFO per basic common share	0.04
FFO	4,137
FFO per basic common share	0.03
Balance sheet
Equity method investments - Colony Starwood Homes	$	325,857
Equity method investments - Colony American Finance	56,769
Ownership in SFR and CAF
Colony Starwood Homes shares beneficially owned by OP and common stockholders	15.1 million
CLNY OP interest in SFR as of June 30, 2016	14.0%
CLNY OP interest in CAF as of June 30, 2016	17.4%

_____________

Note: Refer to SFR filing for additional information.




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 17 \|

VIa. Other Real Estate Equity—Summary Metrics



($ in thousands, except per share data; as of or for the three months ended June 30, 2016)
Financial results related to the segment
Net Income attributable to common stockholders	$	36,777
Net Income attributable to common stockholders per basic share	0.32
Core FFO	49,588
Core FFO per basic share	0.37
FFO	50,999
FFO per basic share	0.38
Portfolio overview
CLNY OP share of consolidated real estate assets (cost basis)
NNN assets held for investment ⁽¹⁾⁽²⁾	$	641,743
Other real estate assets held for investment ⁽¹⁾	331,497
Real estate assets held for sale ⁽¹⁾	86,351
Total CLNY OP share of consolidated real estate assets	1,059,591
CLNY OP share of investment-level non-recourse financing (UPB)
NNN investments held for investment	$	417,932
Other real estate assets held for investment	166,540
NNN and other real estate assets held for sale	5,918
Subscription line	5,004
Total CLNY OP share of investment-level non-recourse financing	595,394
Equity method investments
CLNY OP share of equity method investments	$	143,896
CLNY OP share of other investments - Albertsons investment	49,862
Number of post-IPO shares in Albertsons pursuant to preliminary prospectus dated October 2, 2015	8.45 million
CLNY OP % ownership interest in post-IPO AB Acquisition LLC based on preliminary prospectus dated October 2, 2015	2.17		%

_____________


(1)	Includes all components related to the asset, including tangible real estate and lease-related intangibles.


(2)	CLNY OP share of Q2 NOI was $10.4 million.




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 18 \|

VIb. Other Real Estate Equity—Portfolio Overview



Summary of real estate
				CLNY OP pro rata share
Location	Property type	Number of buildings	Rentable square feet (thousands)	Real estate assets & intangibles, net ⁽¹⁾			Cost basis of real estate assets ⁽¹⁾⁽²⁾		Investment-level non-recourse debt		Percentage leased (end of period)		Number of leases	Lease expiration	Year acquired or foreclosed
NNN investments
Minnesota	Office	1	502	$	109,096		$	121,829	$	86,818	100	%	1	7/2016 to 9/2020	2013
France	Office	3	187	36,495			37,165		17,436		100	%	1	11/2027	2015
Norway	Office	26	1,291	321,451		⁽⁴⁾	302,423		191,360		100	%	1	6/2030	2015
Switzerland	Education	20	304	173,331			180,326		122,318		100	%	2	1/2035	2015
Total NNN investments		50	2,284	640,373			641,743		417,932
Other real estate assets
Various U.S. states	Hotel	12	NA	16,390			19,295		12,387		NA		NA	NA	2012
Arizona	Office	1	458	20,853			22,654		7,030		60	%	19	12/2016 to 6/2022	2013
Italy ⁽³⁾	Mixed Use	80	578	39,546			40,586		24,514		34	%	43	12/2016 to 3/2021	2014
Spain	Industrial	36	2,608	64,406			66,122		34,222		100	%	36	10/2016 to12/2029	2014, 2016
United Kingdom	Office	35	999	68,082			73,150		45,853		91	%	108	7/2016 to 11/2070	2014, 2015
United Kingdom	Mixed Use	65	3,335	103,830			106,162		42,534		94	%	237	9/2016 to 3/2040	2015, 2016
France	Office	5	171	3,521			3,528		—		11	%	2	12/2022	2016
Total other real estate assets		234	8,149	316,628			331,497		166,540

Total other real estate assets held for investment		284	10,433	957,001			973,240		584,472

Total other real estate assets held for sale		46	2,085	85,552			86,351		5,918
Subscription line		—	—	—			—		5,004
Total CLNY OP share of consolidated real estate assets		330	12,518	$	1,042,553		$	1,059,591	$	595,394

_____________


(1)	Includes all components related to the asset, including tangible real estate and lease-related intangibles.


(2)	Excludes accumulated depreciation.


(3)	Excludes one building with 218,000 rentable square feet that is subject to development.


(4)	The carrying value of real estate assets and intangibles, net includes $28.4 million of capitalized taxes, for which there is a corresponding and offsetting deferred tax liability.




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 19 \|

VIIa. Real Estate Debt—Summary Metrics



($ in thousands, except per share data; as of or for the three months ended June 30, 2016)
Financial results related to the segment
Net income attributable to common stockholders	$	44,549
Net income attributable to common stockholders per basic share	0.39
Core FFO	60,523
Core FFO per basic common share	0.45
FFO	52,900
FFO per basic common share	0.39

Portfolio Overview
Non-PCI loans
CLNY OP share of loans receivables held for investment, net	$	2,507,043
CLNY OP share of investment-level financing (UPB)	900,412
CLNY OP share of equity method investments	114,423
PCI loans
CLNY OP share of loans receivables held for investment, net	173,669
CLNY OP share of non-recourse investment-level financing (UPB)	21,904
CLNY OP share of equity method investments	4,042
Other
CLNY OP share of carrying value of real estate ⁽¹⁾	35,691
CLNY OP share of other investments	4,649
CLNY OP share of subscription line (UPB)	7,588

___________

(1) Includes all components related to the asset, including tangible real estate and lease-related intangibles.




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 20 \|

VIIb. Real Estate Debt—Portfolio by Loan Type



($ in thousands, as of or for the three months ended June 30, 2016)
Loans receivable held for investment by loan type
	CLNY OP pro rata share
Non-PCI loans	Unpaid principal balance		Gross carrying amount			Weighted average coupon		Weighted average maturity in years
Fixed rate
First mortgage loans	$	281,186	$	272,397		8.3	%	4.6
Securitized mortgage loans	122,952		125,492			6.4	%	16.1
Second mortgage loans / B-notes	258,007		261,590			9.6	%	2.8
Mezzanine loans	208,236		208,660			11.7	%	3.0
Total fixed rate non-PCI loans	870,381		868,139			9.3	%	5.3

Variable rate
First mortgage loans	529,003		525,134			7.1	%	1.4
Securitized mortgage loans	918,518		916,951			5.7	%	3.1
Second mortgage loans / B-notes	8,846		8,631			9.5	%	1.9
Mezzanine loans	192,912		192,313			10.9	%	1.2
Total variable rate non-PCI loans	1,649,279		1,643,029			6.8	%	2.3

Total Non-PCI loans	2,519,660		2,511,168
Allowance for loan losses	—		(4,125		)
Total Non-PCI loans, net of allowance for loan losses	2,519,660		2,507,043

PCI loans
Mortgage loans	253,030		176,891
Securitized mortgage loans	8,760		7,404
Total PCI loans	261,790		184,295
Allowance for loan losses	—		(10,626		)
Total PCI loans receivable, net of allowance	261,790		173,669

Total loans receivable held for investment, net of allowance	$	2,781,450	$	2,680,712




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 21 \|

VIIc. Real Estate Debt—Portfolio by Collateral Type



($ in thousands, as of or for the three months ended June 30, 2016)
Loans receivable held for investment by collateral type
	CLNY OP pro rata share
	Unpaid principal balance		Net carrying amount		Weighted average coupon
Non-PCI Loans
Residential	$	50,065	$	49,958	13.8	%
Multifamily	653,740		648,444		5.5	%
Office	443,255		441,321		6.8	%
Retail	516,709		516,309		8.0	%
Hospitality	525,923		521,285		9.7	%
Industrial	31,942		31,804		5.5	%
Other commercial	218,160		217,242		7.7	%
Land	79,866		80,680		11.2	%
	2,519,660		2,507,043
PCI Loans
Residential	16,270		10,784
Multifamily	58,879		43,504
Office	41,445		17,002
Retail	57,409		49,361
Hospitality	8,360		5,661
Industrial	34,105		27,590
Other commercial	22,688		11,974
Land	22,634		7,793
	261,790		173,669
Total loans held for investment, net	$	2,781,450	$	2,680,712




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 22 \|

VIIIa. Investment Management—Summary Metrics



($ in thousands unless otherwise noted; as of or for three months ended June 30, 2016)

AUM	$	18.4 billion
FEEUM		7.6 billion
Credit Funds		3.7 billion
Core Plus / Value-Add Funds		1.6 billion
Opportunity Funds		2.3 billion

Income:
Total income	$	15,012
Expenses:
Transaction, investment and servicing expenses		22
Amortization		3,559
Compensation expense		7,880
Administrative expenses		692
Total expenses		12,153
Other loss, net		44
Income tax benefit		227
Net income attributable to common interests in OP and common stockholders		3,130
Add: Noncash equity compensation expense		994
Add: Unrealized gain on derivatives		(44	)
Add: Amortization of investment management intangibles		3,558
Deduct: Deferred tax benefit effect on amortization and impairment of investment management intangibles		(1,722	)
Core FFO	$	5,916




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 23 \|

IX. Definitions

Assets Under Management ("AUM") refers to the assets for which the Company provides investment management services and includes assets for which it may or may not charge management fees and/or performance allocations. AUM is presented as of June 30, 2016 and equals the sum of: a) the gross fair value of investments held directly by the Company or managed by the Company on behalf of its private funds, co-investments, or other investment vehicles; b) leverage, inclusive of debt held by investments and deferred purchases prices; c) uncalled limited partner capital commitments which the Company is entitled to call from investors during the given commitment period at its discretion pursuant to the terms of their respective funds; and d) with respect to majority-owned and substantially controlled investments the Company consolidates gross assets attributable to third-party investors. The Company's calculations of AUM may differ from the calculations of other asset managers, and as a result this measure may not be comparable to similar measures presented by other asset managers.


b)	Colony Capital, Inc. ("CLNY")


c)	Colony Light Industrial Platform ("CLIP")


d)	Colony Starwood Homes ("SFR")


e)	Colony American Finance ("CAF")

Fee-Earning Equity Under Management ("FEEUM") refers to the equity for which the Company provides investment management services and from which it derives management fees and/or performance allocations. FEEUM is presented as of June 30, 2016. FEEUM includes $0.8 billion of uncalled limited partner capital commitments which will not bear fees until such capital is called at the Company’s discretion. Additionally, $0.3 billion pertains to FEEUM of our equity-method investment in a German-based asset management platform. The Company's calculations of FEEUM may differ from the calculations of other asset managers, and as a result this measure may not be comparable to similar measures presented by other asset managers.


g)	Net Operating Income ("NOI") is property operating income less property operating expenses adjusted for non-cash items, including straight line rents and above/below market lease amortization.

Operating Company ("OP") refers to Colony Capital Operating Company, LLC, an operating subsidiary of the Company. The Company is structured as an umbrella partnership real estate investment trust, or UPREIT, in which its wholly-controlled subsidiary, Colony Capital Operating Company, LLC (the “OP”), directly or indirectly holds substantially all of the Company’s assets and directly or indirectly conducts substantially all of the Company’s business.


i)	Purchased Credit-Impaired ("PCI") loans are loans that were acquired at a discount with evidence of underlying credit deterioration and for which it is probable that all contractually required payments will not be collected.


j)	Unpaid Principal Balance ("UPB")




Colony Capital, Inc. Second Quarter 2016 Supplemental Financial Report	\| 24 \|

Colony Capital, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 SUPPLEMENTAL - August 8, 2016

Attached files

Colony Capital, Inc. Reports