Financial Data and Key Metrics Changes - The company reported a GAAP net loss attributable to common stockholders of $23.1 million or $0.19 per share for the second quarter [4] - Adjusted distributable earnings were $22.9 million or $0.18 per share, compared to $3.4 million or $0.03 per share in distributable earnings [21] - Current liquidity stands at $325 million, with $106 million in unrestricted cash [4][21] - GAAP net book value decreased to $7.65 per share from $7.92 per share in the previous quarter, while undepreciated book value remained unchanged at $8.75 per share [22][23] Business Line Data and Key Metrics Changes - The loan portfolio grew by approximately 3% or $70 million on a net basis, excluding the impact of the San Jose loan moving to REO [14] - The company experienced positive net loan originations during the quarter, with six loans totaling $114 million closed or in execution [12] - The REO portfolio currently consists of eight properties with an aggregate undepreciated gross book value of $379 million [18][20] Market Data and Key Metrics Changes - Market conditions showed notable improvement with a decline in volatility, and commercial real estate debt markets remained largely unaffected by recent headlines [7] - Credit and lending spreads have stabilized, and loan inquiries have increased steadily [7] - The CMBS market has returned to normal and is quite active, with bank warehouse lenders providing competitive financing [7] Company Strategy and Development Direction - The company aims to continue reducing exposure to watch list loans and managing the resolution of REO assets [6][13] - Plans include making operational improvements to the San Jose Hotel ahead of significant events in the Bay Area, with a potential sale in 2026 [9][30] - The focus is on maximizing the value of existing properties to fuel loan portfolio growth over the next several quarters [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the CRE market's continued progress due to recent improvements in market conditions [7] - The company anticipates an increase in repayment volume related to loan payoffs and REO resolutions in the coming quarters [15][61] - Management noted that the current lending environment is different from previous cycles, with better debt yields and a focus on new construction takeout [46][49] Other Important Information - The company repurchased 561,000 shares at an average price of $5.19, trading at a roughly 40% discount to its undepreciated book value [12] - Specific CECL reserves of approximately $19.5 million were recorded during the quarter related to the San Jose Hotel and Santa Clara multifamily predevelopment loan [21][24] Q&A Session Summary Question: Can you provide details on value-added activities for the REO portfolio? - Management discussed the need for significant capital investment in the San Jose Hotel to address deferred maintenance and prepare for upcoming events [30] Question: How has the bridge loan underwriting changed post-COVID? - Management noted lessons learned from the previous bubble market and emphasized improved borrower quality and property structures in the current lending environment [40][46] Question: What is the expected trajectory for repayments throughout 2025? - Management indicated an expected uptick in repayments over the second half of the year, with significant positions in sight for resolution [61] Question: How does the new Texas legislation on HFCs affect existing and future loans? - Management stated that the new legislation would have no significant impact on their strategy and execution regarding REOs [68] Question: Can you elaborate on the cross-collateralized preferred equity investments? - Management confirmed that the preferred equity position originated during the quarter is cross-collateralized across six properties in Phoenix, with an occupancy rate of about 92% [84]

Financial Performance - GAAP Net Loss was $(231) million, or $(019) per share[7] - Distributable Earnings were $34 million, or $003 per share[7] - Adjusted Distributable Earnings reached $229 million, or $018 per share[7] - A dividend of $016 per share was declared and paid for Q2'25, representing a 130% yield on the current share price[7] Portfolio Overview - Total at-share assets amounted to $35 billion, predominantly in floating-rate senior loans[7,8] - The loan portfolio totaled $24 billion with an average loan size of $30 million and a W A unlevered yield of 78%[7] - Positive net deployment during Q2'25 was $86 million[7] - The company committed $98 million of capital across two new loans and a cross-collateralized preferred equity investment in Q2'25[7] Liquidity and Capitalization - Available liquidity was $325 million, including unrestricted cash, revolver capacity, and approved undrawn borrowings[7] - Total master repurchase facility capacity was $20 billion with $12 billion of availability[7] - The company repurchased 06 million shares of Class A common stock for $29 million at a blended price of $519 per share[7] Loan Portfolio Risk - The W A risk ranking of the loan portfolio improved to 31 from 32 in Q1'25[7] - Watch list loans decreased to 5 loans totaling $202 million, representing 9% of the loan portfolio, a ~50% reduction from Q1'25[7] - Total CECL reserve was $137 million, or $106 per share[7]

分组1 - BrightSpire (BRSP) reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, but down from $0.22 per share a year ago, representing an earnings surprise of +12.50% [1] - Colony Credit posted revenues of $16.73 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 8.62%, but down from $25.25 million year-over-year [2] - The stock of Colony Credit has underperformed, losing about 11.9% since the beginning of the year compared to the S&P 500's gain of 8.6% [3] 分组2 - The earnings outlook for Colony Credit is mixed, with the current consensus EPS estimate at $0.16 on $15.7 million in revenues for the coming quarter and $0.64 on $63.3 million in revenues for the current fiscal year [7] - The Zacks Industry Rank indicates that the REIT and Equity Trust sector is currently in the top 20% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8] - Ellington Credit, another company in the same industry, is expected to report quarterly earnings of $0.21 per share, reflecting a year-over-year decline of -41.7%, while revenues are projected to be $9.68 million, up 148.2% from the previous year [9]

[General Information](index=1&type=section&id=General%20Information) This section provides general filing details for BrightSpire Capital, Inc., including its NYSE listing [Filing Details](index=1&type=section&id=Filing%20Details) BrightSpire Capital, Inc. filed this Form 8-K on July 29, 2025, announcing current events and its Class A common stock listing on the NYSE under BRSP - Registrant: **BrightSpire Capital, Inc.**[2](index=2&type=chunk) - Date of Report (earliest event reported): **July 29, 2025**[2](index=2&type=chunk) | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :-------------------------- | :---------------- | :---------------------------------------- | | Class A common stock, par value $0.01 per share | BRSP | New York Stock Exchange | [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This section details the announcement of BrightSpire Capital, Inc.'s financial results and its method for distributing company information [Announcement of Financial Results](index=2&type=section&id=Announcement%20of%20Financial%20Results) BrightSpire Capital, Inc. announced its Q2 2025 financial results and position via a press release and supplemental presentation, furnished as 8-K exhibits - On **July 29, 2025**, BrightSpire Capital, Inc. issued a press release announcing its financial position as of **June 30, 2025**, and financial results for the **second quarter ended June 30, 2025**[5](index=5&type=chunk) - A Supplemental Financial Disclosure Presentation for the **second quarter ended June 30, 2025**, was made available on the Company's website[6](index=6&type=chunk) - Information in **Item 2.02** and **Item 9.01** (including **Exhibits 99.1** and **99.2**) is furnished, not deemed 'filed' for Section 18 of the Securities Exchange Act of 1934 purposes[7](index=7&type=chunk) [Use of Website to Distribute Material Company Information](index=2&type=section&id=Use%20of%20Website%20to%20Distribute%20Material%20Company%20Information) The company uses its website's 'Shareholders' subpage, www.brightspire.com, as a primary channel for distributing material information and investor notifications - Company website address: **www.brightspire.com**[8](index=8&type=chunk) - The website's '**Shareholders**' subpage distributes important company information, including press releases, analyst presentations, and financial information[8](index=8&type=chunk) - Investors can register for automatic e-mail and other notifications when new information is available on the Shareholders subpage[8](index=8&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section provides a comprehensive list of all financial statements and exhibits furnished with this Form 8-K filing [List of Exhibits](index=2&type=section&id=List%20of%20Exhibits) This section lists all exhibits furnished with the Form 8-K, including the financial results press release, supplemental presentation, and interactive data file | Exhibit No. | Description | | :---------- | :------------------------------------------------------------- | | 99.1 | Press Release, dated July 29, 2025 | | 99.2 | Supplemental Financial Disclosure Presentation for the second quarter ended June 30, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signature](index=3&type=section&id=SIGNATURE) This section confirms the official signing and submission of the Form 8-K report by an authorized company officer [Report Signature](index=3&type=section&id=Report%20Signature) The report was officially signed by David A. Palamé, General Counsel & Secretary of BrightSpire Capital, Inc., on July 29, 2025 - The report was signed on **July 29, 2025**[13](index=13&type=chunk) - Signed by **David A. Palamé**, General Counsel & Secretary of **BrightSpire Capital, Inc.**[14](index=14&type=chunk)

Group 1 - The article emphasizes the importance of creating a portfolio that generates income without the need for selling assets, aiming to simplify retirement investing [1] - It highlights a community-focused investment service that offers model portfolios, buy/sell alerts, and educational resources for investors [2] - The service philosophy is centered around the belief that investing should not be done alone, promoting a vibrant community for support and education [2] Group 2 - The article mentions that the service includes features like dividend and portfolio trackers, as well as regular market updates to assist investors [2] - It notes that the recommendations provided by the service are closely monitored, with alerts issued for buy and sell decisions exclusive to members [4] - The article also indicates that past performance does not guarantee future results, underscoring the need for careful consideration in investment decisions [5]

Group 1 - The article emphasizes the importance of creating a portfolio that generates income without the need for selling assets to fund retirement dreams [1] - It addresses a common misconception among newer investors and retirees that they need to act quickly and make rapid decisions regarding their investments [2] - The service offers features such as model portfolios with buy/sell alerts, preferred and baby bond portfolios for conservative investors, and regular market updates, focusing on community and education [3] Group 2 - The article mentions that recommendations are closely monitored, and buy/sell alerts are exclusive to members, indicating a proactive approach to investment management [5]

Group 1 - Mortgage REITs, such as BrightSpire Capital (NYSE: BRSP), are influenced by interest rate environments, which can make them challenging investments [1] - BrightSpire Capital aims to deliver attractive total returns through a diversified portfolio of senior loans [1] - The investment strategy includes a mix of classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds to enhance income while achieving total returns comparable to traditional index funds like the S&P [1]

Summary of BrightSpire Capital (BRSP) 2025 Conference Call Company Overview - BrightSpire Capital was formed from the merger of Colony Capital and North Star, transitioning from Colony Credit in 2020 during the COVID-19 pandemic [4][5] - The company has internalized its management and is one of the few internally managed commercial mortgage REITs [6] Financial Performance and Strategy - The current portfolio stands at $2.5 billion, with 43% in multifamily, 22% in office, 14% in net lease, 8% in industrial, and 13% in other categories [24] - The company aims to increase its multifamily exposure to over 50% of the loan book and grow the portfolio to approximately $3.5 billion [24][25] - The stock price is currently $5, while the book value is estimated at $8.75, indicating a significant market dislocation [11] - The company plans to cover its dividend of 16 cents per quarter and aims to increase it back to 20 cents as earnings grow [12][55] Origination Activity - The company has originated approximately $300 million in loans since late 2022, with a focus on middle-market lending [10] - The origination market is currently challenging, with a high percentage of refinancing requests and a lack of actionable deals [15][18] - The market is described as "zombie-like," driven by lenders rather than organic borrower activity [18][19] Market Dynamics - Interest rates remain high, with SOFR in the low fours, impacting borrower activity and refinancing options [23] - The company is experiencing a shift in its origination focus, with multifamily remaining a priority, while also exploring industrial and lodging opportunities [25][26] Asset Management and Foreclosures - The company recently foreclosed on a significant asset in San Jose, which is expected to be a source of capital in the future [35][41] - The asset is currently undergoing management improvements to enhance its value before potential sale [42][43] Capital Structure and Future Plans - BrightSpire aims to issue another CLO by the end of the year, contingent on origination volume [47][49] - The company is committed to its dividend policy despite potential negative coverage in the short term, with plans to resolve low-earning assets [55] Conclusion - BrightSpire Capital is navigating a challenging market environment with a focus on stabilizing its portfolio, increasing multifamily exposure, and managing its capital structure effectively [60]

Interest Rate Risk - As of March 31, 2025, a hypothetical 100 basis point increase or decrease in the applicable interest rate benchmark on the loan portfolio would increase or decrease interest income by $5.0 million annually, net of interest expense [436]. - The company held no derivative instruments as of March 31, 2025, indicating a potential exposure to interest rate fluctuations [435]. Foreign Currency Risk - The company has approximately NOK 263.1 million or a total of $25.0 million in net investments in European subsidiaries, with a 1.0% change in foreign currency rate resulting in a $0.3 million increase or decrease in translation gain or loss [449]. Credit Risk - The company is subject to credit risk from tenants, including business closures and occupancy levels, which could impact revenue [441]. - The company’s revenue and ability to make distributions depend significantly on the economic viability of borrowers and tenants [7]. Real Estate Market Risk - The company faces risks associated with the commercial real estate market, including volatility in market values and occupancy rates [444]. - The company’s real estate investments are relatively illiquid, which may result in losses if unable to adjust the portfolio in response to economic changes [442]. Financial Compliance and Amendments - The company amended its Bank Credit Facility and Master Repurchase Facilities to adjust certain covenants and reduce advance rates on financed assets to mitigate future compliance issues [447]. - The company has not received any margin calls under its Master Repurchase Facilities for the three months ended March 31, 2025, and through April 29, 2025 [446]. Accounting Standards - The company’s financial statements are prepared in accordance with U.S. GAAP, with no material changes to critical accounting estimates reported for the fiscal year ended December 31, 2024 [431].

Financial Data and Key Metrics Changes - The company reported GAAP net income attributable to common stockholders of $5.3 million or $0.04 per share for the first quarter [5] - Distributable earnings were $11.4 million or $0.09 per share, while adjusted distributable earnings were $20.1 million or $0.16 per share [5][19] - Current liquidity stands at $310 million, including $145 million in unrestricted cash [5][22] - GAAP net book value decreased to $7.92 per share from $8.08 in the previous quarter [19] - Undepreciated book value decreased to $8.75 per share from $8.89 [19] Business Line Data and Key Metrics Changes - The company received $133 million in repayments across nine loans, including five full payoffs [14] - New loan commitments totaled $182 million across five new loan originations during the quarter [14] - The loan portfolio consists of 74 investments with an average loan balance of $33 million [14] - Watch list loan exposure stands at $396 million, a reduction of $15 million quarter over quarter [18] Market Data and Key Metrics Changes - The commercial real estate (CRE) market is experiencing wider credit spreads, but lenders have not withdrawn from the market [8] - The Manhattan leasing market is recovering, with an uptick in leasing inquiries for Long Island City properties [12] - The mortgage REIT sector has seen a significant decline in valuation, with the company's stock trading at a 45% discount to its undepreciated book value [13] Company Strategy and Development Direction - The company aims to maintain its dividend while regrowing earnings and improving its balance sheet [14] - The focus is on increasing loan inquiries and evaluating new loans daily, despite challenges in refinancing [9][10] - The company is optimistic about the market dynamics and is seeing more lenders encouraging borrowers to refinance [11] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing market volatility due to tariff discussions and credit market conditions [7] - There is a concern about potential recessionary impacts, but lower interest rates could benefit borrowers seeking refinancing [31] - The company expects to maintain its dividend and aims to grow its portfolio to $3.5 billion to support this goal [46] Other Important Information - The company is in the final stages of exiting its Phoenix multifamily property and anticipates selecting a buyer soon [12] - The San Jose hotel loan remains in default, with progress being made toward foreclosure [17] Q&A Session Summary Question: What is the remaining buyback authorization? - The share repurchase program was reapproved at $50 million for the upcoming year [26] Question: What is the impact of lower rates on the portfolio and borrowers? - Lower rates are expected to help borrowers refinance, but spreads may widen, which could affect credit performance [31][32] Question: Is the company still targeting $1 billion in originations this year? - The company needs to increase its portfolio to $3.5 billion to sustain and grow its dividend, with current challenges in actionable deals [42][46] Question: Can you provide an update on the San Jose hotel property? - The asset is unlevered, and the company is awaiting resolution of the foreclosure process [54][56] Question: What is the expectation for CLO issuance? - The company plans to execute a CLO in the fourth quarter of the year, despite recent market widening [60][61]