DigitalBridge (DBRG) 8-K Fourth Quarter 2016 Financial Results

 Forward-Looking Statements

This presentation may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and 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.

Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that might cause such a difference include, without limitation, our failure to achieve anticipated synergies in the completed merger among NorthStar Asset Management Group Inc., Colony Capital, Inc. and NorthStar Realty Finance Corp., Colony NorthStar’s liquidity, including its ability to complete identified monetization transactions and other potential sales of non-core investments, the timing of and ability to deploy available capital, the timing of and ability to complete repurchases of Colony NorthStar’s stock, Colony NorthStar’s ability perform on the RMZ, Colony NorthStar’s leverage, including the timing and amount of borrowings under its credit facility, increased interest rates and operating costs, adverse economic or real estate developments in Colony NorthStar’s markets, Colony NorthStar’s failure to successfully operate or lease acquired properties, decreased rental rates, increased vacancy rates or failure to renew or replace expiring leases, defaults on or non-renewal of leases by tenants, the impact of economic conditions on the borrowers of Colony NorthStar’s commercial real estate debt investments and the commercial mortgage loans underlying its commercial mortgage backed securities, adverse general and local economic conditions, an unfavorable capital market environment, decreased leasing activity or lease renewals, and other risks and uncertainties detailed in our filings with the Securities and Exchange Commission (“SEC”). All forward-looking statements reflect the Colony NorthStar’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Additional information about these and other factors can be found in Colony NorthStar’s reports filed from time to time with the SEC.

Colony NorthStar cautions investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this presentation. Colony NorthStar is under no duty to update any of these forward-looking statements after the date of this presentation, nor to conform prior statements to actual results or revised expectations, and Colony NorthStar does not intend to do so.

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

This presentation is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Colony NorthStar. This information is not intended to be indicative of future results. Actual performance of Colony NorthStar may vary materially.

The endnotes herein contain important information that is material to an understanding of this presentation and you should read this presentation only with and in context of the endnotes.

Colony Capital, Inc. Fourth 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 and pro rata financial information.

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. Our calculation 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. Accordingly, FFO and Core FFO should be considered only as supplements to net income as a measure of the Company’s performance.

The Company presents pro rata financial information, which is not, and is not intended to be, a presentation in accordance with GAAP. The Company computes pro rata financial information by applying its economic interest to each financial statement line item on an investment-by-investment basis.  Similarly, noncontrolling interests’ share of assets, liabilities, profits and losses was computed by applying noncontrolling interests’ economic interest to each financial statement line item.  The Company provides pro rata financial information because it may assist investors and analysts in estimating the Company’s economic interest in its investments.  However, pro rata financial information as an analytical tool has limitations.  Other equity REITs may not calculate their pro rata information in the same methodology, and accordingly, the Company’s pro rata information may not be comparable to such other REITs' pro rata information. As such, the pro rata financial information should not be considered in isolation or as a substitute for our financial statements as reported under GAAP, but may be used as a supplement to financial information as reported under GAAP.

Colony Capital, Inc. Fourth 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	20
	b.	Summary of Segments	5	VI.	Other Real Estate Equity
II.	Financial Results				a.	Summary Metrics	21
	a.	Consolidated Income Statement	6		b.	Portfolio Overview	22
	b.	Consolidated Segment Balance Sheet	7
	c.	Noncontrolling Interests' Share Segment Balance Sheet	8	VII.	Real Estate Debt
	d.	Consolidated Segment Operating Results	9		a.	Summary Metrics	23
	e.	Noncontrolling Interests' Share Segment Operating Results	10		b.	Portfolio Overview by Loan Type	24
	f.	Segment Reconciliation of Net Income to FFO & Core FFO	11		c.	Portfolio Overview by Collateral Type	25
III.	Capitalization			VIII.	Investment Management
	a.	Overview	12		a.	Summary Metrics	26
	b.	Debt Overview	13	IX.	Definitions		27
	c.	Debt Maturity and Amortization Schedules	14
	d.	Investment-Level Debt Overview	15
	e.	Credit Facility, Convertible Debt & Preferred Equity Overview	17
IV.	Industrial
	a.	Summary Metrics	18
	b.	Portfolio & Lease Overview	19

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

 Ia. Overview—Summary Metrics

($ and shares in thousands, except per share data)		Three months ended           December 31, 2016			Twelve months ended December 31, 2016
Financial data
Net income attributable to common stockholders	$	(16,810	)	$	67,159
Net income attributable to common stockholders per basic share		(0.15	)		0.58
Core FFO		49,389			272,275
Core FFO per basic share		0.37			2.02
FFO		(1,021	)		158,462
FFO per basic share		(0.01	)		1.18

Balance sheet, capitalization and trading statistics
Total consolidated assets	$	9,760,992
CLNY OP share of consolidated assets		6,256,046
Total consolidated debt (1)		3,757,646
CLNY OP share of consolidated debt (1)		2,765,824
Shares and OP units outstanding as of 1/10/2017		135,654
Share price as of 1/10/2017		21.52
Market value of common equity & OP units		2,919,274
Liquidation preference of preferred equity		625,750
Insider ownership of shares and OP units		18.1	%
AUM		16.8 billion
FEEUM		6.9 billion

________

Note: See appendix for definitions and acronyms.

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

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

 Ib. Overview—Summary of Segments

($ in thousands, unless otherwise noted; as of or for the three months ended December 31, 2016)		Consolidated     amount		CLNY OP share of consolidated amount
Industrial
1) Undepreciated cost basis of real estate assets (1)(2)	$	2,245,564	$	1,104,961
Investment-level non-recourse financing (3)		1,010,514		497,237
2) Carrying value of Industrial operating platform		20,000		20,000
Net income attributable to common stockholders				(5,215	)
Core FFO				12,179
Single Family Residential Rentals
1) Equity method investments - Colony Starwood Homes (Represents 14.0% interest in SFR)	$	316,113	$	316,113
Colony Starwood Homes shares beneficially owned by OP and common stockholders		15.1 million		15.1 million
2) Equity method investments - Colony American Finance (Represents 17.4% interest in CAF)		57,754		57,754
Net loss attributable to common stockholders				(509	)
Core FFO				8,617
Other Real Estate Equity
1) Undepreciated cost basis of real estate assets, held for investment (1)(2)	$	1,451,754	$	901,981
2) Undepreciated cost basis of real estate assets, held for sale (1)(2)		150,515		65,347
Investment-level non-recourse financing (3)		908,497		569,167
3) Equity method investments		241,987		193,990
4) Other investments - Albertsons investment		99,736		49,861
Net income attributable to common stockholders				11,885
Core FFO				18,793
Real Estate Debt
1) Loans receivable held for investment, net	$	3,432,992	$	2,208,852
2) Loans receivable held for sale, net		29,353		28,223
Investment-level financing (3)		772,387		633,172
3) Carrying value of real estate assets (REO within debt portfolio) (1)(2)		77,938		25,113
4) Equity method investments		305,878		135,636
5) Other investments		23,446		4,771
Net income attributable to common stockholders				31,879
Core FFO				46,491
Investment Management
AUM			$	16.8 billion
FEEUM				6.9 billion
Credit Funds				3.6 billion
Core Plus / Value-Add Funds				1.6 billion
Opportunity Funds				1.7 billion
Net income attributable to common common stockholders				3,586
Core FFO				6,423

________

(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. Fourth Quarter 2016 Supplemental Financial Report | 5 |

 IIa. Financial Results—Consolidated Income Statements

	2016
($ in thousands, except per share data)	Q1				Q2			Q3		Q4
Income
Interest income	$	89,361			$	103,860		$	98,275	$	94,355
Property operating income	91,617				95,348			92,505		91,612
Income from equity method investments	2,429				53,113			16,684		27,149
Fee income	16,609				15,505			17,233		18,384
Other income	3,202				2,815			4,054		4,122
Total income	203,218				270,641			228,751		235,622
Expenses
Transaction, merger integration, investment and servicing expenses	11,421				13,360			11,305		28,185
Interest expense	41,871				42,568			42,196		43,448
Property operating expenses	30,786				29,780			28,903		28,992
Depreciation and amortization	46,142				39,541			43,593		42,406
Provision for loan losses	4,630				6,213			6,569		17,593
Impairment loss	2,079				2,441			941		6,256
Compensation expense	26,867				24,240			29,582		31,149
Administrative expenses	12,771				13,098			12,891		12,939
Total expenses	176,567				171,241			175,980		210,968
Gain on sale of real estate assets, net	51,119				5,844			11,151		5,502
Other (loss) gain, net	14,045				(348		)	4,573		146
Income before income taxes	91,815				104,896			68,495		30,302
Income tax (provision) benefit	(784		)		(1,760		)	3,409		(5,647		)
Net income	91,031				103,136			71,904		24,655
Net income attributable to noncontrolling interests—Investment entities	57,595				40,169			32,744		32,576
Net income attributable to noncontrolling interests—Operating Company	3,421				7,918			4,189		(3,204		)
Net income attributable to Colony Capital, Inc.	30,015				55,049			34,971		(4,717		)
Preferred dividends	11,880				12,093			12,093		12,093
Net income attributable to common stockholders	$	18,135			$	42,956		$	22,878	$	(16,810	)
Net income per common share—Basic	$	0.16			$	0.38		$	0.20	$	(0.15	)
Net income per common share—Diluted	$	0.16			$	0.36		$	0.20	$	(0.15	)
Weighted average number of common shares outstanding—Basic	111,660				112,306			112,423		112,539
Weighted average number of common shares outstanding—Diluted	111,660				137,255			112,423		112,539
FFO attributable to common interests in Operating Company and common stockholders (1)	$	36,348			$	76,857		$	46,278	$	(1,021	)
FFO per common share / common OP Unit (1)	$	0.27			$	0.57		$	0.34	$	(0.01	)
Core FFO attributable to common interests in Operating Company and common stockholders (1)(2)	$	54,935		(2)	$	98,671		$	69,280	$	49,389
Core per common share / common OP Unit (1)(2)	$	0.41		(2)	$	0.73		$	0.51	$	0.37

__________

(1) Total FFO and Core FFO attributable to common interests in Operating Company and common stockholders have been adjusted from previously reported figures to reflect the correction of over-allocation of loss to noncontrolling interests as follows: reduction of $0.4 million, $1.7 million, $0.7 million for the quarters ended March 31, 2016, June 30, 2016 and September 30, 2016, respectively.

(2) In Q2 2016, 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. Fourth Quarter 2016 Supplemental Financial Report | 6 |

 IIb. Financial Results—Consolidated Segment Balance Sheet

														Total
($ in thousands; as of December 31, 2016)	Industrial		Single-Family Residential Rentals		Other Real Estate Equity		Real Estate Debt		Investment Management		Amounts not allocated to segments
ASSETS
Cash	$	132,524	$	—	$	75,945	$	145,631	$	15,704	$	6,201		$	376,005
Loans receivable, net
Held for investment	—		—		—		3,432,992		—		—			3,432,992
Held for sale	—		—		—		29,353		—		—			29,353
Real estate assets, net
Held for investment	1,969,247		—		1,266,132		8,252		—		—			3,243,631
Held for sale	23,504		—		130,929		69,521		—		—			223,954
Equity method investments	—		373,867		241,987		305,878		13,187		18,340			953,259
Other investments	—		—		99,736		23,446		—		—			123,182
Goodwill	20,000		—		—		—		660,127		—			680,127
Deferred leasing costs and intangible assets, net	86,308		—		142,811		165		70,696		—			299,980
Due from affiliates and other assets	36,089		—		45,294		231,125		22,138		63,863			398,509
Total assets	$	2,267,672	$	373,867	$	2,002,834	$	4,246,363	$	781,852	$	88,404		$	9,760,992
LIABILITIES & EQUITY
Liabilities:
Accrued and other liabilities	$	51,456	$	—	$	72,779	$	73,511	$	70,482	$	31,935		$	300,163
Intangible liabilities, net	12,134		—		8,928		—		—		—			21,062
Due to affiliates—contingent consideration	—		—		—		—		—		41,250			41,250
Dividends and distributions payable	—		—		—		—		—		65,972			65,972
Debt, net	999,560		—		892,604		766,880		—		463,748			3,122,792
Convertible senior notes, net	—		—		—		—		—		592,826			592,826
Total liabilities	1,063,150		—		974,311		840,391		70,482		1,195,731			4,144,065
Equity:
Stockholders' equity	529,424		327,865		544,561		1,719,186		623,839		(971,076		)	2,773,799
Noncontrolling interests in investment entities	600,815		—		407,555		1,445,568		—		—			2,453,938
Noncontrolling interests in Operating Company	74,283		46,002		76,407		241,218		87,531		(136,251		)	389,190
Total equity	1,204,522		373,867		1,028,523		3,405,972		711,370		(1,107,327		)	5,616,927
Total liabilities and equity	$	2,267,672	$	373,867	$	2,002,834	$	4,246,363	$	781,852	$	88,404		$	9,760,992

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

 IIc. Financial Results—Noncontrolling Interests' Share Segment Balance Sheet

													Total noncontrolling interest share
($ in thousands; as of December 31, 2016)	Industrial		Single-Family Residential Rentals		Other Real Estate Equity		Real Estate Debt		Investment Management		Amounts not allocated to segments
ASSETS
Cash	$	67,314	$	—	$	42,320	$	77,867	$	—	$	—	$	187,501
Loans receivable held for investment, net	—		—		—		—		—		—
Held for investment	—		—		—		1,224,140		—		—		1,224,140
Held for sale	—		—		—		1,130		—		—		1,130
Real estate assets, net	—		—		—		—		—		—
Held for investment	1,000,252		—		465,168		4,448		—		—		1,469,868
Held for sale	11,939		—		76,481		48,295		—		—		136,715
Equity method investments	—		—		47,997		170,242		—		—		218,239
Other investments	—		—		49,875		18,675		—		—		68,550
Goodwill	—		—		—		—		—		—		—
Deferred leasing costs and intangible assets, net	43,839		—		60,341		82		—		—		104,262
Due from affiliates and other assets	18,640		—		16,871		59,030		—		—		94,541
Total assets	$	1,141,984	$	—	$	759,053	$	1,603,909	$	—	$	—	$	3,504,946
LIABILITIES & EQUITY
Liabilities:
Accrued and other liabilities	$	27,290	$	—	$	14,893	$	20,524	$	—	$	—	$	62,707
Intangible liabilities, net	6,164		—		5,248		—		—		—		11,412
Due to affiliates—contingent consideration	—		—		—		—		—		—		—
Dividends and distributions payable	—		—		—		—		—		—		—
Debt, net	507,715		—		331,357		137,817		—		—		976,889
Convertible senior notes, net	—		—		—		—		—		—		—
Total liabilities	541,169		—		351,498		158,341		—		—		1,051,008
Equity:
Stockholders' equity	—		—		—		—		—		—		—
Noncontrolling interests in investment entities	600,815		—		407,555		1,445,568		—		—		2,453,938
Noncontrolling interests in Operating Company	—		—		—		—		—		—		—
Total equity	600,815		—		407,555		1,445,568		—		—		2,453,938
Total liabilities and equity	$	1,141,984	$	—	$	759,053	$	1,603,909	$	—	$	—	$	3,504,946

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

 IId. Financial Results—Consolidated Segment Operating Results

($ in thousands; for the three months ended December 31, 2016)	Industrial			Single-Family Residential Rentals			Other Real Estate Equity			Real Estate Debt			Investment Management			Amounts not allocated to segments			Total
Income
Interest income	$	2		$	—		$	—		$	94,317		$	—		$	36		$	94,355
Property operating income	51,977			—			38,288			1,347			—			—			91,612
(Loss) income from equity method investments	—			(604		)	19,264			8,633			(792		)	648			27,149
Fee income	—			—			—			—			18,384			—			18,384
Other income	422			—			197			1,985			600			918			4,122
Total income	52,401			(604		)	57,749			106,282			18,192			1,602			235,622
Expenses
Transaction, merger integration, investment and servicing expenses	36			—			214			6,381			648			20,906			28,185
Interest expense	13,928			—			9,145			9,255			—			11,120			43,448
Property operating expenses	14,288			—			13,161			1,543			—			—			28,992
Depreciation and amortization	23,393			—			14,076			71			3,684			1,182			42,406
Provision for loan losses	—			—			—			17,593			—			—			17,593
Impairment loss	270			—			2,308			3,678			—			—			6,256
Compensation expense	2,923			—			826			2,536			9,557			15,307			31,149
Administrative expenses	595			—			1,732			1,686			1,132			7,794			12,939
Total expenses	55,433			—			41,462			42,743			15,021			56,309			210,968
Gain on sale of real estate assets, net	139			—			4,138			1,225			—			—			5,502
Other (loss) gain, net	(213		)	—			2,741			(314		)	(168		)	(1,900		)	146
(Loss) income before income taxes	(3,106		)	(604		)	23,166			64,450			3,003			(56,607		)	30,302
Income tax (expense) benefit	(549		)	—			(5,591		)	(152		)	1,244			(599		)	(5,647		)
Net (loss) income	(3,655		)	(604		)	17,575			64,298			4,247			(57,206		)	24,655
Net (loss) income attributable to noncontrolling interests:
Investment entities	2,520			—			3,498			26,558			—			—			32,576
Operating Company	(960		)	(95		)	2,192			5,861			661			(10,863		)	(3,204		)
Net (loss) income attributable to Colony Capital, Inc.	(5,215		)	(509		)	11,885			31,879			3,586			(46,343		)	(4,717		)
Preferred dividends	—			—			—			—			—			12,093			12,093
Net (loss) income attributable to common stockholders	$	(5,215	)	$	(509	)	$	11,885		$	31,879		$	3,586		$	(58,436	)	$	(16,810	)

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

 IIe. Financial Results—Noncontrolling Interests' Share Segment Operating Results

($ in thousands; for the three months ended December 31, 2016)	Industrial			Single-Family Residential Rentals		Other Real Estate Equity			Real Estate Debt			Investment Management		Amounts not allocated to segments		Total noncontrolling interest share
Income
Interest income	$	1		$	—	$	—		$	39,532		$	—	$	—	$	39,533
Property operating income	25,156			—		16,057			552			—		—		41,765
Income from equity method investments	—			—		3,191			4,901			—		—		8,092
Fee income	—			—		—			—			—		—		—
Other income	4,113			—		74			1,472			—		—		5,659
Total income	29,270			—		19,322			46,457			—		—		95,049
Expenses
Transaction, merger integration, investment and servicing expenses	17			—		85			3,917			—		—		4,019
Interest expense	6,663			—		3,549			1,285			—		—		11,497
Property operating expenses	7,127			—		7,600			840			—		—		15,567
Depreciation and amortization	11,174			—		5,984			14			—		—		17,172
Provision for loan losses	—			—		—			10,357			—		—		10,357
Impairment loss	129			—		1,567			2,805			—		—		4,501
Compensation expense	1,057			—		115			426			—		—		1,598
Administrative expenses	284			—		510			863			—		—		1,657
Total expenses	26,451			—		19,410			20,507			—		—		66,368
Gain on sale of real estate assets, net	66			—		2,670			703			—		—		3,439
Other (loss) gain, net	(102		)	—		1,514			(89		)	—		—		1,323
Income before income taxes	2,783			—		4,096			26,564			—		—		33,443
Income tax (expense) benefit	(263		)	—		(598		)	(8		)	—		—		(869		)
Net income (loss) attributable to noncontrolling interests in investment entities	$	2,520		$	—	$	3,498		$	26,556		$	—	$	—	$	32,574

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

 IIf. Financial Results—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 December 31, 2016)	Industrial			Single-Family Residential Rentals			Other Real Estate Equity			Real Estate Debt			Investment Management			Amounts not allocated to segments			Total OP pro rata share
Net income (loss) attributable to common stockholders	$	(5,215	)	$	(509	)	$	11,885		$	31,879		$	3,586		$	(58,436	)	$	(16,810	)	$	—		$	(16,810	)
Net income (loss) attributable to noncontrolling common interests in Operating Company	(960		)	(95		)	2,192			5,861			661			(10,863		)	(3,204		)	—			(3,204		)
Net income (loss) attributable to common interests in Operating Company and common stockholders	(6,175		)	(604		)	14,077			37,740			4,247			(69,299		)	(20,014		)	—			(20,014		)
Adjustments for FFO:
Real estate depreciation and amortization	12,182			5,991			8,819			40			—			—			27,032			17,425			44,457
Impairment of real estate	141			30			691			881			—			—			1,743			4,543			6,286
Gain on sales of real estate	(72		)	(184		)	(13,320		)	(549		)	—			—			(14,125		)	(5,795		)	(19,920		)
Less: Adjustments attributable to noncontrolling interests in investment entities (1)	4,343			—			—			—			—			—			4,343			(16,173		)	(11,830		)
FFO attributable to common interests in Operating Company and common stockholders	$	10,419		$	5,233		$	10,267		$	38,112		$	4,247		$	(69,299	)	$	(1,021	)	$	—		$	(1,021	)
Additional adjustments for Core FFO:
Gain on sale of real estate, net of depreciation, amortization and impairment previously adjusted for FFO	(65		)	—			10,076			422			—			—			10,433			3,686			14,119
Noncash equity compensation expense	104			130			74			184			907			2,043			3,442			—			3,442
Straight-line rent revenue	(894		)	—			(906		)	—			—			—			(1,800		)	(1,222		)	(3,022		)
Loss on change in fair value of contingent consideration	—			—			—			—			—			1,900			1,900			—			1,900
Amortization of acquired above- and below-market lease intangibles, net	159			—			(290		)	—			—			—			(131		)	212			81
Amortization of deferred financing costs and debt premium and discounts	2,419			1,737			678			2,561			—			932			8,327			3,297			11,624
Unrealized loss (gain) on derivatives	—			94			(1,210		)	—			—			—			(1,116		)	(817		)	(1,933		)
Acquisition-related expenses, merger and integration costs	—			(37		)	—			434			—			20,469			20,866			1,064			21,930
Amortization and impairment of investment management intangibles	—			—			—			—			3,689			—			3,689			—			3,689
Non-real estate depreciation and amortization	37			—			—			—			—			1,177			1,214			—			1,214
Amortization of gain on remeasurement of consolidated investment entities, net	—			—			188			4,885			—			—			5,073			17,354			22,427
Deferred tax benefit, net	—			—			(84		)	(107		)	(2,420		)	(336		)	(2,947		)	—			(2,947		)
Net loss on SFR's non-performing loans business	—			1,460			—			—			—			—			1,460			—			1,460
Less: Adjustments attributable to noncontrolling interests in investment entities	—			—			—			—			—			—			—			(23,574		)	(23,574		)
Core FFO attributable to common interests in Operating Company and common stockholders	$	12,179		$	8,617		$	18,793		$	46,491		$	6,423		$	(43,114	)	$	49,389		$	—		$	49,389

__________

(1) Adjustment attributable to noncontrolling interests in investment entities for the Industrial Platform includes a cumulative correction of an over-allocation of loss to noncontrolling interests in prior periods.

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

 IIIa. Capitalization—Overview

($ in thousands, except share and per share data; as of December 31, 2016, unless otherwise noted)
Debt (UPB)				Consolidated amount		CLNY OP share of consolidated amount
$850,000 Revolving credit facility				$	422,600	$	422,600
5.0% Convertible senior notes due 2023				200,000		200,000
3.875% Convertible senior notes due 2021				402,500		402,500
Corporate aircraft promissory note				41,148		41,148
Investment-level debt				2,691,398		1,699,576
Total CLNY OP share of debt				3,757,646		2,765,824
Preferred equity
Series A 8.5% cumulative redeemable perpetual preferred stock, redemption value				252,000		252,000
Series B 7.5% cumulative redeemable perpetual preferred stock, redemption value				86,250		86,250
Series C 7.125% cumulative redeemable perpetual preferred stock, redemption value				287,500		287,500
Total redemption value of preferred equity				625,750		625,750
Common equity (as of 1/10/17)	Price per share		Shares / Units
Class A common stock	$	21.52	114,467	2,463,330		2,463,330
Class B common stock	21.52		525	11,298		11,298
OP units	21.52		20,662	444,646		444,646
Total market value of common equity				2,919,274		2,919,274
Total capitalization				$	7,302,670	$	6,310,848

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

 IIIb. Capitalization—Debt Overview

($ in thousands; as of or for the three months ended December 31, 2016)
Debt overview
		Consolidated								CLNY OP share of consolidated amount
	Type		Unpaid principal balance		Deferred financing costs and discount / premium			Carrying value		Unpaid Principal balance		Deferred financing costs and discount / premium			Carrying value		Weighted-average years remaining to maturity	Weighted-average interest rate
Investment-level debt by segment
Industrial	Non-recourse		$	1,010,514	$	(10,954	)	$	999,560	$	497,237	$	(5,392	)	$	491,845	11.0	3.46	%
Other Real Estate Equity	Non-recourse		908,497		(15,893		)	892,604		569,167		(7,920		)	561,247		7.4	3.61	%
Real Estate Debt	Partial recourse (1)		772,387		(5,507		)	766,880		633,172		(4,109		)	629,063		14.9	3.04	%
Total investment-level debt			2,691,398		(32,354		)	2,659,044		1,699,576		(17,421		)	1,682,155		11.3	3.35	%
Corporate debt
Line of credit	Recourse		422,600		—			422,600		422,600		—			422,600		5.0	3.02	%
5.0% Convertible senior notes	Recourse		200,000		(4,364		)	195,636		200,000		(4,364		)	195,636		6.3	5.00	%
3.875% Convertible senior notes	Recourse		402,500		(5,310		)	397,190		402,500		(5,310		)	397,190		4.0	3.88	%
Corporate aircraft promissory note	Recourse		41,148		—			41,148		41,148		—			41,148		8.9	5.02	%
Total corporate debt			1,066,248		(9,674		)	1,056,574		1,066,248		(9,674		)	1,056,574		5.0	3.79	%
Total debt outstanding			$	3,757,646	$	(42,028	)	$	3,715,618	$	2,765,824	$	(27,095	)	$	2,738,729	7.3	3.52	%

__________

(1) $24 million is recourse debt.

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

 IIIc. Capitalization—Debt Maturity and Amortization Schedules

($ in thousands; as of or for the three months ended December 31, 2016)
Consolidated debt maturity and amortization schedule
	Payments due by period (1)
	2017		2018		2019		2020		2021		2022 and after		Total
Line of credit (2)	$	—	$	—	$	—	$	—	$	—	$	422,600	$	422,600
Convertible senior notes	—		—		—		—		402,500		200,000		602,500
Warehouse facilities	17,598		27,860		—		—		—		—		45,458
Corporate aircraft promissory note	1,930		2,029		2,134		2,244		2,360		30,451		41,148
CMBS securitization debt	—		—		—		—		—		497,525		497,525
Scheduled amortization payments on investment-level debt	7,281		7,473		6,046		6,109		5,720		32,389		65,018
Balloon payments on investment-level debt	183,821		297,457		444,924		52,094		103,471		1,001,630		2,083,397
Total	$	210,630	$	334,819	$	453,104	$	60,447	$	514,051	$	2,184,595	$	3,757,646

Pro rata debt maturity and amortization schedule
	Payments due by period (1)
	2017		2018		2019		2020		2021		2022 and after		Total
Line of credit (2)	$	—	$	—	$	—	$	—	$	—	$	422,600	$	422,600
Convertible senior notes	—		—		—		—		402,500		200,000		602,500
Warehouse facilities	16,938		27,860		—		—		—		—		44,798
Corporate aircraft promissory note	1,930		2,029		2,134		2,244		2,360		30,451		41,148
CMBS securitization debt	—		—		—		—		—		489,907		489,907
Scheduled amortization payments on investment-level debt	5,812		5,919		5,502		5,563		5,434		32,294		60,524
Balloon payments on investment-level debt	74,428		83,341		213,603		26,047		49,655		657,273		1,104,347
Total	$	99,108	$	119,149	$	221,239	$	33,854	$	459,949	$	1,832,525	$	2,765,824

__________

(1) 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.

(2) On January 10, 2017, the Company amended and restated its JPM Credit Agreement, which extended the maturity date to January 11, 2021, with two 6-month extension options.

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

 IIId. Capitalization—Investment Level Debt Overview

($ and € in thousands; as of December 31, 2016)
Industrial
	Initial / current maturity date	Fully extended maturity date	Interest rate			Maximum principal amount	Consolidated amount				CLNY OP share of consolidated amount
Industrial acquisition financing	Dec-2018	Dec-2019	L + 2.25%		(1)	N/A	$	413,012			$	203,228
Industrial fixed rate mortgage	Aug-2025	Aug-2025	3.80%			N/A	165,750				81,559
Industrial credit facility (2)	Apr-2017	Apr-2017	L + 2.25%			100,000	—				—
Industrial fixed rate mortgage	Apr-2028	Apr-2028	4.04%			N/A	93,450				45,983
Industrial fixed rate mortgage	Aug-2029	Aug-2029	4.11%			N/A	43,687				21,497
Industrial fixed rate mortgage	Oct-2031	Oct-2031	3.60%			N/A	93,000				45,762
Industrial fixed rate mortgage	Oct-2031	Oct-2031	3.65%			N/A	59,000				29,032
Industrial fixed rate mortgage	Oct-2031	Oct-2031	3.65%			N/A	25,000				12,302
Industrial fixed rate mortgage	Nov-2054	Nov-2054	3.60%			N/A	71,460				35,163
Industrial fixed rate mortgage	Dec-2051	Dec-2051	3.60%			N/A	46,155				22,711
Total UPB of debt related to Industrial segment							1,010,514				497,237
Debt issuance costs							(10,954		)		(5,392		)
Total carrying value of debt related to Industrial segment							$	999,560			$	491,845
Other Real Estate Equity
	Initial / current maturity date	Fully extended maturity date	Interest rate			Maximum principal amount	Consolidated amount				CLNY OP share of consolidated amount
NNN investments
Office - Minnesota	Jan-2024	Jan-2024	4.84	%		N/A	$	86,836			$	86,185
Office - France	Nov-2022	Nov-2022	1.89	%		N/A	16,542				16,542
Office - Norway	Jun-2025	Jun-2025	3.91	%		N/A	185,600				185,600
Education - Switzerland	Dec-2029	Dec-2029	2.72	%		N/A	115,368				115,368
Total UPB of debt related to NNN investments, held for investment							404,346				403,695
Other real estate assets
Office - Arizona	Jul-2018	Jul-2020	L + 2.65%			N/A	15,431				7,716
Mixed use - Italy	Nov-2018	Nov-2018	4.02%			N/A	82,974			(3)	23,257
Industrial - Spain	Jan-2021	Jan-2021	3M EUR + 3.00%			N/A	47,195				21,429
Industrial - Spain	Jun-2022	Jun-2022	3M EUR + 2.80%			N/A	24,274				11,022
Office portfolio - UK	Aug-2018	Aug-2020	3M GBP L + 2.50%			N/A	66,874				33,437
Office - UK	Feb-2020	Feb-2020	3M GBP L + 2.35%			N/A	11,688				5,844
Office, Industrial and Retail Portfolio - UK	Jul-2020	Jul-2020	3M GBP L + 2.50%			N/A	24,975				12,488
Office, Industrial and Retail Portfolio - UK	Nov-2018	Nov-2020	3M GBP L + 3.28%			N/A	171,510				34,108
Total UPB of debt related to other real estate assets, held for investment							444,921				149,301
Total UPB of debt related to other real estate assets, held for sale							59,230				16,171
Total UPB of debt related to Other Real Estate Equity segment							908,497				569,167
Total debt issuance costs and discount							(15,893		)		(7,920		)
Total carrying value of debt related to Other Real Estate Equity segment							$	892,604			$	561,247

__________

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

(2)     In February 2017, the Company extended the maturity date to April 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 and is being accreted to debt principal as interest expense. As of December 31, 2016, the Company was in negotiations with the seller to restructure the financing arrangement and no principal payment was made in November 2016.

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

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

($ in thousands; as of December 31, 2016)
Real Estate Debt
	Initial / current maturity date	Fully-extended maturity date	Interest rate	Maximum principal amount		Consolidated amount			CLNY OP share of consolidated amount
Non-PCI
CMBS 2015-FL3	Sept-2032	Sept-2032	L + 2.36%	N/A		$	200,070		$	200,070
CMBS 2014-FL2	Nov-2031	Nov-2031	L + 2.01%	N/A		145,421			139,965
CMBS MF2014-1	Apr-2050	Apr-2050	2.54%	N/A		94,408			94,408
CMBS 2014-FL1	Apr-2031	Apr-2031	L + 1.78%	N/A		57,626			55,464
April 2015 warehouse facility	Apr-2018	Apr-2019	L + 2.50% - L+2.75%	$	250,000	27,860			27,860
Freddie Mac portfolio	Dec-2017	Dec-2019	L + 2.85%	N/A		46,252			33,795
February 2014 warehouse facility (1)	Mar-2017	Mar-2017	L + 2.50%	150,000		17,598			16,937
Austin Hotel (2)	Oct-2019	Oct-2021	L + 3.50%	N/A		58,183			29,092
Total UPB of debt related to Non-PCI loans						$	647,418		$	597,591
PCI
Project London loan portfolio	Apr-2017	Apr-2019	L + 3.75%	N/A		$	20,770		$	10,385
Metro loan portfolio	Apr-2017	Apr-2018	L + 3.75%	N/A		6,843			3,421
California first mortgage portfolio I	Aug-2017	Aug-2018	L + 3.75%	N/A		2,897			1,448
Midwest loan portfolio	Jun-2017	Jun-2017	L + 4.00%	N/A		3,268			1,761
California first mortgage portfolio II	Sept-2017	Sept-2018	L + 3.25%	N/A		2,686			1,343
CRE loan portfolio 2016	Dec-2020	Dec-2022	L + 2.50%	N/A		35,750			7,275
Total UPB of debt related to PCI loans						$	72,214		$	25,633
Subscription line	Apr-2017	Apr-2016	L + 1.60%	N/A		52,755			9,948
Total UPB of debt related to Real Estate Debt segment						$	772,387		$	633,172
Total debt issuance costs						(5,507		)	(4,109		)
Total carrying value of debt related to Real Estate Debt segment						$	766,880		$	629,063

__________

(1) In February 2017, the Company extended the maturity date to March 2017.

(2) A mortgage loan originated by the Company was restructured into a senior and junior note, with the senior note assumed by a third party lender. The Company accounted for the transfer of the senior note as a financing transaction. The senior note bears interest at 1-month LIBOR plus 3.5% or at a minimum of 4.0%, and is subject to two 1-year extension options on its initial term exercisable by the borrower.

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

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

($ and shares in thousands; as of or for the three months ended December 31, 2016)

Credit facility

Revolving credit facility(1)

Maximum principal amount

$

850,000

Amount outstanding

422,600

Initial maturity

March 31, 2020

Fully-extended maturity

March 31, 2021

Interest rate

LIBOR + 2.25%

Covenant level

Actual level at December 31, 2016

Financial covenants as defined in the Credit Agreement:

Consolidated Tangible Net Worth

Minimum $1,915 million

$2,523 million

Consolidated Fixed Charge Coverage Ratio

Minimum 1.50 to 1.00

2.61 to 1.00

Consolidated Interest Coverage Ratio

Minimum 3.00 to 1.00

15.01 to 1.00

Consolidated Leverage Ratio

Maximum 0.65 to 1.00

0.40 to 1.00

Convertible debt

Description

Outstanding principal

Issuance date

Due date

Interest rate

Conversion price (per share of common stock)

Conversion ratio

Conversion shares

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

Shares outstanding

Redemption period

Series A 8.5% cumulative redeemable perpetual

$

252,000

March 2012

8.500

%

10,080

On or after March 27, 2017

Series B 7.5% cumulative redeemable perpetual

86,250

June 2014

7.500

%

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

__________

(1) On January 10, 2017, the Company amended and restated its JPM Credit Agreement, which increased the principal amount provided for under its secured revolving credit facility to $1 billion, with an option for additional increase up to $1.5 billion, subject to agreement by the lenders and customary closing conditions. The maturity date on the credit facility was extended to January 11, 2021, with two 6-month extension options, each subject to a fee of 0.10% of the commitment amount upon exercise. There was no change to the existing interest rate and unused commitment fee rates on the credit facility.

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

 IVa. Industrial—Summary Metrics

($ in thousands, except per share; as of or for the three months ended December 31, 2016)
Financial results related to the segment
Net Income attributable to common stockholders							$	(5,215	)
Net Income attributable to common stockholders per basic share							(0.05		)
Core FFO							12,179
Core FFO per basic common share							0.09
FFO							10,419
FFO per basic common share							0.08
Portfolio overview
Number of buildings							346
Rentable square feet							37,613
% leased at end of period							96		%
				Consolidated amount			CLNY OP share of consolidated amount
Undepreciated cost basis of real estate assets (1)				$	2,245,564		$	1,104,961
Debt (UPB)				1,010,514			497,237
Debt / undepreciated cost basis				45		%	45		%
Carrying value of Industrial operating platform				$	20,000		$	20,000
Recent acquisitions
Property / portfolio name	Acquisition date	Number of buildings	Rentable square feet	% leased			Purchase price
Q4 2016 acquisitions
Dallas industrial portfolio	Oct-2016	3	230,391	88		%	$	20,950
Orlando industrial portfolio	Oct-2016	3	479,100	84		%	47,900
Dallas industrial portfolio	Dec-2016	2	250,317	100		%	19,300
Orlando industrial property	Dec-2016	1	163,200	100		%	13,800
Orlando industrial portfolio	Dec-2016	3	218,413	100		%	10,525
Total		12	1,341,421	92		%	$	112,475
Q1 2017 acquisitions
Austin industrial portfolio	Jan-2017	3	468,405	100		%	50,600
Orlando industrial portfolio	Feb-2017	4	946,379	100		%	67,100
Total		7	1,414,784	100		%	$	117,700

__________

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

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

 IVb. Industrial—Portfolio and Lease Overview

(As of or for the three months ended December 31, 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	82	8,105	$	32,998	96	%	237	1/2017 to 4/2030	2014-2015
Austin	Industrial	4	236	1,614		96	%	14	2/2017 to 8/2025	2014
Chicago	Industrial	34	3,972	16,744		94	%	50	1/2017 to 12/2026	2014
Dallas	Industrial	70	7,191	29,643		97	%	186	2/2017 to 1/2027	2014-2016
Denver	Industrial	8	1,128	4,935		99	%	24	1/2017 to 3/2026	2014
Houston	Industrial	21	1,713	8,863		96	%	51	1/2017 to 8/2026	2014
Kansas City	Industrial	9	1,664	5,976		100	%	23	4/2017 to 11/2024	2014
Baltimore	Industrial	5	431	2,014		89	%	8	5/2017 to 5/2027	2015-2016
Minneapolis	Industrial	18	2,814	13,186		96	%	59	1/2017 to 10/2025	2014-2016
New Jersey South/Philadelphia	Industrial	30	3,328	14,081		93	%	67	1/2017 to 4/2027	2014-2015
Orlando	Industrial	14	2,085	10,009		96	%	38	1/2017 to 12/2027	2014-2016
Phoenix	Industrial	18	1,705	8,000		97	%	53	1/2017 to 8/2024	2014-2016
Salt Lake City	Industrial	16	1,269	5,150		93	%	33	1/2017 to 11/2023	2014
St. Louis	Industrial	8	1,355	4,681		90	%	16	6/2017 to 7/2024	2014
Tampa	Industrial	9	617	3,208		97	%	35	1/2017 to 1/2024	2014
Total / Weighted average		346	37,613	$	161,102	96	%	894

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

 Va. Single Family Residential Rentals—Summary Metrics

($ in thousands, except per share and unless otherwise noted; as of or for the three months ended December 31, 2016)
Financial results related to the segment
Net income attributable to common stockholders	$	(509	)
Net income attributable to common stockholders per basic share	0.00
Core FFO	8,617
Core FFO per basic common share	0.06
FFO	5,233
FFO per basic common share	0.04
Balance sheet
Equity method investments - Colony Starwood Homes	$	316,113
Equity method investments - Colony American Finance	57,754
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 December 31, 2016	14.0%
CLNY OP interest in CAF as of December 31, 2016	17.4%

_____________

Note: Refer to SFR filing for additional information.

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

 VIa. Other Real Estate Equity—Summary Metrics

($ in thousands, except per share data; as of or for the three months ended December 31, 2016)
Financial results related to the segment
Net Income attributable to common stockholders			$	11,885
Net Income attributable to common stockholders per basic share			0.11
Core FFO			18,793
Core FFO per basic share			0.14
FFO			10,267
FFO per basic share			0.08
Portfolio overview
Real estate assets (cost basis)	Consolidated amount		CLNY OP share of consolidated amount
NNN assets held for investment (1)(2)	$	624,059	$	623,139
Other real estate assets held for investment (1)	827,695		278,842
Real estate assets held for sale (1)	150,515		65,347
Total real estate assets (cost basis)	1,602,269		967,328
Investment-level non-recourse financing (UPB)
NNN investments held for investment	$	404,346	$	403,695
Other real estate assets held for investment	444,921		149,301
Other real estate assets held for sale	59,230		16,171
Total investment-level non-recourse financing (UPB)	908,497		569,167
Unconsolidated investments
Equity method investments	$	241,987	$	193,990
Other investments - Albertsons investment	99,736		49,861
Number of post-IPO shares in Albertsons pursuant to preliminary prospectus dated October 2, 2015	N/A		8.45 million
CLNY OP % ownership interest in post-IPO AB Acquisition LLC based on preliminary prospectus dated October 2, 2015	N/A		2.17		%

_____________

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

(2) CLNY OP share of Q4 NOI was $10.3 million.

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

 VIb. Other Real Estate Equity—Portfolio Overview

($ in thousands; as of December 31, 2016)
Summary of real estate
				Consolidated							CLNY OP share of consolidated amount
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 (UPB)		Real estate assets & intangibles, net (1)		Cost basis of real estate assets (1)(2)		Investment-level non-recourse debt (UPB)		Percentage leased (end of period)	Number of leases	Lease expiration	Year acquired or foreclosed
NNN investments
Minnesota	Office	1	502	$	107,416		$	122,750	$	86,836	$	106,611	$	121,830	$	86,185	100%	1	9/2020	2013
France	Office	3	187	34,079			35,259		16,542		34,079		35,259		16,542		100%	1	11/2027	2015
Norway	Office	26	1,291	307,492		(4)	293,319		185,600		307,492		293,319		185,600		100%	1	6/2030	2015
Switzerland	Education	20	304	163,722			172,731		115,368		163,722		172,731		115,368		100%	2	1/2035	2015
Total NNN investments		50	2,284	612,709			624,059		404,346		611,904		623,139		403,695
Other real estate assets
Arizona	Office	1	458	41,315			46,428		15,431		20,657		23,214		7,716		64%	20	3/2017 to 6/2022	2013
Italy (3)	Mixed Use	77	570	124,880			129,723		82,974		35,005		36,362		23,257		34%	43	6/2018 to 5/2023	2014
Spain	Industrial	36	2,608	132,204			139,079		71,469		60,027		63,148		32,451		100%	36	12/2017 to12/2029	2014, 2016
United Kingdom & France	Office	38	1,114	132,875			144,872		78,562		61,405		67,336		39,281		78%	109	2/2017 to 11/2070	2014, 2015, 2016
United Kingdom	Mixed Use	55	2,872	349,703			367,593		196,485		84,655		88,782		46,596		89%	244	1/2017 to 3/2040	2015, 2016
Total other real estate assets		207	7,622	780,977			827,695		444,921		261,749		278,842		149,301
Total other real estate assets held for investment		257	9,906	1,393,686			1,451,754		849,267		873,653		901,981		552,996
Total other real estate assets held for sale		49	1,931	137,258			150,515		59,230		60,549		65,347		16,171
Total real estate assets		306	11,837	$	1,530,944		$	1,602,269	$	908,497	$	934,202	$	967,328	$	569,167

_____________

(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 approximately 218,000 square feet that is subject to development.

(4) The carrying value of real estate assets and intangibles, net includes $27.5 million of capitalized taxes, for which there is a corresponding and offsetting deferred tax liability.

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

 VIIa. Real Estate Debt—Summary Metrics

($ in thousands, except per share data; as of or for the three months ended December 31, 2016)
Financial results related to the segment
Net income attributable to common stockholders			$	31,879
Net income attributable to common stockholders per basic share			0.28
Core FFO			46,491
Core FFO per basic common share			0.35
FFO			38,112
FFO per basic common share			0.28
Portfolio Overview
Non-PCI loans	Consolidated amount		CLNY OP share of consolidated amount
Loans receivables held for investment, net	$	2,963,560	$	2,050,650
Loans receivables held for sale, net	29,353		28,223
Non-recourse investment-level financing (UPB)	647,418		597,591
Equity method investments	302,364		132,122
PCI loans
Loans receivables held for investment, net	469,432		158,202
Non-recourse investment-level financing (UPB)	72,214		25,633
Equity method investments	3,514		3,514
Other
Carrying value of real estate (1)	77,938		25,113
Other investments	23,446		4,771
Subscription line (UPB)	52,755		9,948

___________

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

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

 VIIb. Real Estate Debt—Portfolio by Loan Type

($ in thousands, as of or for the three months ended December 31, 2016)
Loans receivable held for investment by loan type
	Consolidated					CLNY OP share of consolidated amount
Non-PCI loans	Unpaid principal balance		Net carrying amount			Unpaid principal balance		Net carrying amount			Weighted average coupon		Weighted average maturity in years
Fixed rate
First mortgage loans	$	688,789	$	669,907		$	329,940	$	319,542		8.4	%	3.9
Securitized mortgage loans	105,586		107,609			105,586		107,609			6.4	%	15.4
Second mortgage loans / B-notes	205,443		211,848			121,530		124,686			9.7	%	4.0
Mezzanine loans	372,247		369,207			174,055		173,651			11.9	%	2.7
Total fixed rate non-PCI loans	1,372,065		1,358,571			731,111		725,488			9.2	%	5.3
Variable rate
First mortgage loans	458,622		451,844			359,185		357,856			8.4	%	0.7
Securitized mortgage loans	775,963		776,156			762,501		762,645			5.7	%	2.7
Second mortgage loans / B-notes	36,175		35,807			18,088		17,903			9.6	%	1.4
Mezzanine loans	348,035		347,469			192,911		192,562			11.1	%	0.7
Total variable rate non-PCI loans	1,618,795		1,611,276			1,332,685		1,330,966			7.3	%	1.9
Total non-PCI loans	2,990,860		2,969,847			2,063,796		2,056,454
Allowance for loan losses	—		(6,287		)	—		(5,804		)
Total non-PCI loans, net of allowance for loan losses	2,990,860		2,963,560			2,063,796		2,050,650
PCI loans
Mortgage loans	748,930		521,905			238,015		168,284
Securitized mortgage loans	8,146		6,836			8,146		6,836
Total PCI loans	757,076		528,741			246,161		175,120
Allowance for loan losses	—		(59,309		)	—		(16,918		)
Total PCI loans, net of allowance for loan losses	757,076		469,432			246,161		158,202
Total loans receivable, net of allowance for loan losses	$	3,747,936	$	3,432,992		$	2,309,957	$	2,208,852

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

 VIIc. Real Estate Debt—Portfolio by Collateral Type

($ in thousands, as of or for the three months ended December 31, 2016)
Loans receivable held for investment by collateral type
	Consolidated				CLNY OP share of consolidated amount
	Unpaid principal balance		Net carrying amount		Unpaid principal balance		Net carrying amount		Weighted average coupon
Non-PCI Loans
Residential	$	59,574	$	59,343	$	29,787	$	29,672	12.8	%
Multifamily	459,507		453,541		419,841		415,417		5.7	%
Office	523,665		517,287		370,941		370,832		7.2	%
Retail	681,355		678,888		504,305		502,940		8.1	%
Hospitality	875,659		867,231		503,137		497,740		9.4	%
Industrial	9,390		9,397		9,197		9,204		5.7	%
Other commercial	209,633		208,950		140,550		140,383		8.1	%
Land	172,077		168,923		86,038		84,462		11.2	%
Total non-PCI loans, net of allowance for loan losses	2,990,860		2,963,560		2,063,796		2,050,650		7.9	%
PCI Loans
Residential	48,861		25,934		16,498		10,158
Multifamily	191,733		135,319		65,548		47,639
Office	85,098		42,192		39,081		15,545
Retail	132,940		100,250		49,128		39,750
Hospitality	60,169		42,625		11,195		7,932
Industrial	82,681		63,893		31,356		25,148
Other commercial	85,316		42,854		18,066		8,243
Land	70,278		16,365		15,289		3,787
Total PCI loans, net of allowance for loan losses	757,076		469,432		246,161		158,202
Total loans receivable, net of allowance for loan losses	$	3,747,936	$	3,432,992	$	2,309,957	$	2,208,852

Colony Capital, Inc. Fourth Quarter 2016 Supplemental Financial Report | 25 |

 VIIIa. Investment Management—Summary Metrics

($ in thousands unless otherwise noted; as of or for three months ended December 31, 2016)
AUM	$	16.8 billion
FEEUM		6.9 billion
Credit Funds		3.6 billion
Core Plus / Value-Add Funds		1.6 billion
Opportunity Funds		1.7 billion
Income:
Total income	$	18,192
Expenses:
Transaction, integration, investment and servicing expenses		648
Amortization		3,684
Compensation expense		9,557
Administrative expenses		1,132
Total expenses		15,021
Other gain, net		(168	)
Income tax benefit		1,244
Net income attributable to common interests in OP and common stockholders		4,247
Add: Noncash equity compensation expense		907
Add: Unrealized gain on derivatives		—
Add: Amortization of investment management intangibles		3,689
Deduct: Deferred tax benefit effect on amortization and impairment of investment management intangibles		(2,420	)
Core FFO	$	6,423

Colony Capital, Inc. Fourth Quarter 2016 Supplemental Financial Report | 26 |

IX. Definitions

a) 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 December 31, 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 Starwood Homes ("SFR")

d) Colony American Finance ("CAF")

e) 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 December 31, 2016. FEEUM includes $0.3 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.

f) 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.

g) 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.

h) 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.

i) Unpaid Principal Balance ("UPB")

Colony Capital, Inc. Fourth Quarter 2016 Supplemental Financial Report | 27 |