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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38377 BRIGHTSPIRE CAPITAL, INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 38-4046290 (State or Other Jurisdiction of Incorporati ...

Financial Data and Key Metrics - GAAP net income attributable to common stockholders was $12.7 million, or $0.10 per share, while distributable earnings were $17.9 million, or $0.14 per share, and adjusted distributable earnings were $27 million, or $0.21 per share [7] - Current liquidity stands at $416 million, with $251 million in unrestricted cash [8] - GAAP net book value decreased to $8.39 per share from $8.41 per share quarter-over-quarter, while undepreciated book value increased to $9.11 from $9.08 per share [37] - The company paid a dividend of $0.16 per share and had earnings from cash flow of $0.17 per share [40] Business Line Data and Key Metrics - The company completed its third CLO transaction of $675 million, which includes an $85 million ramp and a two-year reinvestment period [12] - The remaining loan portfolio consists of 76 investments with an average loan balance of $34 million [24] - The company received $146 million in repayments and resolution proceeds across 11 investments during the quarter [23] - Future funding obligations stand at $108 million, or 4% of outstanding commitments [24] Market Data and Key Metrics - The commercial real estate debt markets are active, with both CMBS and CLO capital markets issuances making a strong comeback year-over-year [10] - Loan and securitization credit spreads have tightened, and bank warehouse spreads have followed suit [11] - The company expects to exit a number of REO or foreclosure assets during 2025 [19] Company Strategy and Industry Competition - The company has restarted loan originations, closing on its first loan post-quarter end and quoting new loans to rebuild the pipeline [15] - The company is focused on growing the loan portfolio and earnings, leveraging improved capital market conditions and rate cuts [16] - The company is internally managed, which is seen as a differentiator in the market, with a vertically integrated asset management approach [96][97] Management Commentary on Operating Environment and Future Outlook - Management highlighted the improvement in market conditions and the positive results from portfolio management efforts [9] - The company is optimistic about the commercial real estate market, citing the reduction in short-term rates as a positive factor [11] - Management expects the investment portfolio to continue tracking positively as new loans are originated and watchlist and REO assets are resolved [34] Other Important Information - The company repurchased 1.2 million shares at an average price of $552 during the quarter, emphasizing the embedded value in the current share price [21] - The company’s stock is trading at a roughly 40% discount to its undepreciated book value of $9.11 [20] - The company’s dividend yield of approximately 12% is roughly 200 basis points higher than the average for its peer group [19] Q&A Session Summary Question: Outlook for portfolio size and leverage growth - The company expects leverage to grow, potentially reaching 2.5% or higher as it redeploys capital [43] Question: Capital allocation between new investments and stock repurchases - The company has the capacity to continue both new investments and stock repurchases, with over $40 million approved for buybacks [44] Question: Bridge loan portfolio growth by end of 2025 - The company aims to grow the bridge loan portfolio by $1 billion, leveraging its cash balance and under-levered assets [53][55] Question: Potential evolution into fixed-rate lending or CMBS conduit lending - While the company has the capability, it currently sees higher barriers to entry and prefers to focus on optimizing its balance sheet [56][59] Question: Timelines for watchlist resolutions and potential CECL reserve releases - The company expects faster resolutions on several watchlist loans, with some potentially moving to REO or being upgraded [65][69] Question: Dividend policy and earnings trajectory - The company cut the dividend to align with cash coverage and expects to hover around breakeven, with potential leakage depending on capital deployment [70] Question: Pipeline growth and origination timing - The company is seeing gradual demand recovery, with a focus on multifamily, industrial, retail, and hospitality sectors [73][80] Question: Long Island City REO assets - The company is receiving interest in the Long Island City assets but expects a longer process, potentially cutting bait by mid-2025 if leasing traction does not improve [81][83] Question: ROEs on CLOs and warehouse lines - The company expects mid-teens ROEs on CLOs, with spreads tightening commensurately with lending spreads [87][91] Question: Differentiation of BrightSpire in the market - The company’s vertically integrated asset management and special servicing capabilities are key differentiators, allowing for high-touch borrower engagement and efficient portfolio growth [96][98]

OCTOBER 29, 2024 1 BRIGHTSPIRE CAPITAL SUPPLEMENTAL FINANCIAL REPORT THIRD QUARTER 2024 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking state ...

BrightSpire (BRSP) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.53%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.21 per share when it actually produced earnings of $0.22, delivering a surprise of 4.76%.Over the last four quarte ...

OCTOBER 29, 2024 BRIGHTSPIRE APITAI SUPPLEMENTAL FINANCIAL REPORT THIRD QUARTER 2024 CAUTIONARY STATEMENT REGARDING FORWARD- STATEMENTS This presentation may contain forward-looking statements within the meaning of the federal securities lows. Forward-looking statements projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical identify forward-looking statements by the use of forward-looking terminology such as "may, "will," "sh ...

BrightSpire Capital (NYSE: BRSP ) has faced a challenging environment due to its notable exposure to the office sector and elevated loan loss provisioning, impacting both earnings and net asset value. With a significant portion of its portfolio currently on the watchlist, BRSP's management I am a young individual investor with a strong focus on long-term wealth creation. My investment strategy revolves around selecting stocks with strong growth potential as well as stocks with stable dividend yields. I firm ...

Investors in BrightSpire Capital, Inc. (BRSP) need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 15, 2024 $2.50 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It co ...

BrightSpire (BRSP) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 2 ...

Tim Platt/DigitalVision via Getty Images Co-authored by Treading Softly. "Far More Money Has Been Lost By Investors Trying To Time Corrections Than In All Corrections Combined" — Peter Lynch. This quote has famously been used to remind investors who live fearing negative outcomes that sometimes the negative outcomes only occur because of their poor decision-making and not because of the realities of the market. The market is going to rise, and the market will fall. The question is how you will react and int ...