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 ...

分组1 - BrightSpire (BRSP) reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, but down from $0.28 per share a year ago, representing an earnings surprise of 10.53% [1] - Colony Credit posted revenues of $20.73 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 14.16%, and down from $31.98 million year-over-year [2] - Colony Credit shares have declined approximately 28.8% year-to-date, contrasting with the S&P 500's gain of 22.1% [3] 分组2 - The earnings outlook for Colony Credit is mixed, with the current consensus EPS estimate at $0.19 on revenues of $23.79 million for the upcoming quarter, and $0.82 on revenues of $100.58 million for the current fiscal year [7] - The REIT and Equity Trust industry is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - ACRES Commercial, another company in the same industry, is expected to report quarterly earnings of $0.39 per share, reflecting a year-over-year decline of 46.6%, with revenues anticipated to be $10.6 million, down 27.7% from the previous year [9][10]

Company Overview BrightSpire Capital's Q3 2024 performance, financial highlights, and strategic activities are presented [Q3 2024 Highlights and Subsequent Events](index=3&type=section&id=SUMMARY%20RESULTS%20%26%20SUBSEQUENT%20EVENTS%20UPDATE) In Q3 2024, BrightSpire Capital reported GAAP Net Income of $12.7 million and Adjusted Distributable Earnings of $27.0 million, or $0.21 per share, maintaining a quarterly dividend of $0.16 per share, while repurchasing 1.2 million shares, receiving $127 million in loan repayments, and reducing the watch list, with subsequent events including a $675 million CLO closing, an REO property sale, and a new loan commitment, maintaining strong liquidity of $416 million Q3 2024 Key Financial Results | Metric | Amount | Per Share | | :--- | :--- | :--- | | GAAP Net Income | $12.7 million | $0.10 | | Distributable Earnings | $17.9 million | $0.14 | | Adjusted Distributable Earnings | $27.0 million | $0.21 | | Quarterly Dividend | - | $0.16 | - The company's loan portfolio stands at **$2.6 billion** with a weighted average risk ranking of 3.2, consistent with the trailing twelve months[13](index=13&type=chunk) - Portfolio management activities included receiving **$127 million** in repayment proceeds from 10 loans and reducing the watch list to 9 loans (**$456 million**) from 12 loans (**$551 million**) in the prior quarter[13](index=13&type=chunk) - Subsequent to quarter-end, the company enhanced its capital position by closing a **$675 million** CLO with a cost of funds at S+2.47% and sold a Washington, D.C. office REO property for **$19 million** in net proceeds[13](index=13&type=chunk) - As of September 30, 2024, the company reported available liquidity of **$416 million**, comprising **$251 million** in unrestricted cash and **$165 million** in undrawn corporate revolver capacity[13](index=13&type=chunk) Financial Performance The company's Q3 2024 financial position, capitalization, and interest rate sensitivity are detailed [Financial Overview](index=5&type=section&id=FINANCIAL%20OVERVIEW) As of Q3 2024, the company's total at-share assets were $3.9 billion, with a total debt of $2.6 billion, resulting in a debt-to-equity ratio of 2.2x, while GAAP book value was $8.39 per share and undepreciated book value stood at $9.11 per share, with a total CECL reserve of $155.7 million, equivalent to $1.20 per share, and no specific reserves recorded, and a capital structure primarily composed of securitization bonds (32%) and master repurchase facilities (29%) Key Financial Metrics as of September 30, 2024 | Metric | Value | Per Share / Ratio | | :--- | :--- | :--- | | Total At-Share Assets (Undepreciated) | $3.9 B | - | | Total Debt Outstanding (UPB) | $2.6 B | - | | Debt-to-Equity Ratio | - | 2.2x | | Book Value (GAAP) | $1.1 B | $8.39 | | Book Value (Undepreciated) | $1.2 B | $9.11 | | General CECL Reserve | $155.7 M | $1.20 / 578 bps | - The Undepreciated Book Value Per Share decreased slightly from **$9.25** at the end of Q2 2024 to **$9.11** at the end of Q3 2024, primarily driven by earnings in excess of dividends (**+$0.05**), offset by non-GAAP real estate impairment and other factors (**-$0.02**)[50](index=50&type=chunk) [Capitalization](index=20&type=section&id=CAPITALIZATION%20HIGHLIGHTS) The company maintains a diversified capital structure of $3.7 billion, with total outstanding debt of $2.6 billion and a debt-to-equity ratio of 2.2x, a blended all-in cost of financing of 6.44%, and the majority of debt being non-recourse, primarily from securitization bonds and mortgage debt, with $1.2 billion in availability under its master repurchase facilities and a fully undrawn $165 million corporate revolver as of October 25, 2024 Capitalization Metrics | Metric | Value | | :--- | :--- | | Total Capitalization | $3.7 B | | Total Outstanding Debt | $2.6 B | | Debt-to-Equity Ratio | 2.2x | | Debt-to-Asset Ratio | 65% | | Blended All-in Cost of Financing | 6.44% | Debt Composition Summary | Debt Type | Recourse Status | W.A. Extended Maturity | W.A. All-in COF | | :--- | :--- | :--- | :--- | | Corporate Revolver | Recourse | Jan-27 | 7.21% | | Master Repurchase Facilities | Limited Recourse | Apr-27 | 7.08% | | Securitization Bonds | Non-recourse | Aug-37 / Aug-38 | 6.55% - 7.32% | | Mortgage Debt | Non-recourse | Jul-29 / Nov-24 | 4.39% - 4.40% | [Interest Rate Sensitivity](index=22&type=section&id=INTEREST%20RATE%20SENSITIVITY) The company's annual net interest income is sensitive to changes in benchmark rates, as 100% of its senior mortgage loan portfolio is floating rate, with a 1.00% (100 bps) decrease in rates negatively impacting annual net interest income by approximately $4.0 million, or $0.03 per share, based on the SOFR rate of 4.85% as of September 30, 2024, while a 1.00% increase would have a positive impact - A 100 basis point (1.00%) decrease in the SOFR benchmark rate would result in an estimated **$4.0 million** decrease in annual net interest income, or **$0.03** per share[82](index=82&type=chunk) - A 50 basis point (0.50%) decrease in the SOFR benchmark rate would lead to an estimated **$2.1 million** decrease in annual net interest income, or **$0.02** per share[82](index=82&type=chunk) Investment Portfolio BrightSpire's investment portfolio, encompassing loans, real estate, and REO assets, is overviewed [Portfolio Overview](index=6&type=section&id=PORTFOLIO%20OVERVIEW) As of Q3 2024, BrightSpire's total investment portfolio has a carrying value of $3.25 billion across 92 investments, dominated by senior mortgage loans (80% by carrying value), with the remaining 20% composed of net lease and other real estate, and diversified by property type with Multifamily (**41%**) and Office (**32%** total) being the largest exposures Total Investment Portfolio Breakdown (at BRSP share) | Investment Type | Investment Count | Carrying Value ($M) | | :--- | :--- | :--- | | Total Loan Portfolio | 76 | $2,431 | | Net Lease & Other Real Estate | 15 | $816 | | CRE Debt Securities | 1 | $2 | | **Total Investment Portfolio** | **92** | **$3,249** | - The portfolio's property type exposure is led by Multifamily at **41%**, followed by Office (**32%** total: **24%** from loans, **8%** from owned real estate), and Hotel at **14%**[51](index=51&type=chunk) [Loan Portfolio](index=7&type=section&id=LOAN%20PORTFOLIO%20OVERVIEW) The $2.6 billion loan portfolio consists of 76 loans, with 98% being floating-rate senior mortgages, a weighted average unlevered all-in yield of 8.2%, and a stable risk ranking of 3.2, with $127 million in repayments in Q3 and the watch list reduced to 9 loans totaling $456 million [Loan Portfolio Diversification & Activity](index=7&type=section&id=LOAN%20PORTFOLIO%20DIVERSIFICATION) The $2.6 billion loan portfolio comprises 76 investments with an average size of $34 million, where senior mortgage loans make up 98% of the portfolio, geographically concentrated in the West (45%) and Southwest (35%), and by property type, Multifamily (51%) and Office (32%) are the largest segments, with Q3 activity including $127 million in repayments and $15 million in additional fundings Loan Portfolio Key Statistics | Metric | Value | | :--- | :--- | | Total Investments | 76 | | Total Loan Portfolio | $2.6 B | | Average Investment Size | $34 M | | W.A. Unlevered All-in Yield | 8.2% | | % Senior Loans (Floating Rate) | 100% | - The loan portfolio is primarily composed of senior mortgage loans (**98%**) with the remainder in mezzanine loans (**2%**)[52](index=52&type=chunk)[58](index=58&type=chunk) - In Q3 2024, loan portfolio activity included **$15 million** in additional fundings and **$127 million** in total repayments[55](index=55&type=chunk) [Loan Portfolio Maturities](index=10&type=section&id=LOAN%20PORTFOLIO%20MATURITIES) The loan portfolio has a weighted average fully extended remaining term of approximately 1.7 years, with minimal final maturities of only $48 million due in 2024, and maturities staggered, with the largest portion (**$1.023 billion**) maturing in 2026 - The company has minimal near-term maturities, with only **$48 million** in carrying value maturing for the remainder of 2024[60](index=60&type=chunk) Fully Extended Loan Maturities (Carrying Value) | Year | Amount ($M) | | :--- | :--- | | 2024 | $48 | | 2025 | $507 | | 2026 | $1,023 | | 2027+ | $226 | [Risk Rankings & CECL Reserves](index=11&type=section&id=LOAN%20PORTFOLIO%20RISK%20RANKINGS%20%26%20CECL%20RESERVES) The weighted average risk ranking of the loan portfolio remained stable at **3.2** in Q3 2024, unchanged from Q2 2024, with loans ranked 4 or 5 (higher risk) decreasing to 9 loans, representing 18% of the portfolio, down from 12 loans (20%) in the previous quarter, and the total CECL reserve standing at $156 million, or $1.20 per share, with no specific reserves - The weighted average risk ranking was unchanged at **3.2** from Q2'24 to Q3'24, indicating stable credit quality in the overall portfolio[66](index=66&type=chunk) - The number of loans rated 4 or 5 (high risk/potential for loss) decreased from **12** in Q2'24 to **9** in Q3'24, representing **18%** of the portfolio by carrying value, down from **20%**[65](index=65&type=chunk) CECL Reserve Overview | Reserve Type | Amount ($M) | Per Share | | :--- | :--- | :--- | | General CECL Reserve | $155.7 | $1.20 | | Specific CECL Reserve | $0.0 | $0.00 | | **Total Reserve** | **$155.7** | **$1.20** | [Watch List Loans](index=13&type=section&id=LOAN%20PORTFOLIO%20WATCH%20LIST%20LOANS) The watch list consists of 9 loans with risk rankings of 4 or 5, including two loans ranked 5: a **$136 million** hotel loan in San Jose, CA, which is on non-accrual status, and a **$42 million** multifamily loan in Fort Worth, TX, with the remaining seven loans ranked 4 and including multifamily and office properties Summary of Watch List Loans (Risk Rank 4 & 5) | Location | Collateral Type | Risk Rank (Q3'24) | Carrying Value ($M) | | :--- | :--- | :--- | :--- | | San Jose, CA | Hotel | 5 | $136 | | Fort Worth, TX | Multifamily | 5 | $42 | | Santa Clara, CA | Multifamily (Land) | 4 | $57 | | Las Vegas, NV | Multifamily | 4 | $47 | | Denver, CO | Multifamily | 4 | $40 | | Reston, VA | Office | 4 | $39 | | Dallas, TX | Office | 4 | $38 | - The largest watch list asset is a **$136 million** senior loan on a hotel in San Jose, CA, which is on non-accrual status and has a risk ranking of **5**[70](index=70&type=chunk) [Net Lease & Other Real Estate](index=11&type=section&id=NET%20LEASE%20REAL%20ESTATE%20%26%20OTHER%20REAL%20ESTATE%20SUMMARY) The Net Lease and Other Real Estate portfolio consists of 15 properties with a total carrying value of $816 million and generated $17.5 million in NOI in Q3 2024, dominated by Office (**58%**) and Industrial (**29%**) properties by carrying value, and geographically diversified across the West (**35%**), Europe (**23%**), and other US regions Net Lease & Other Real Estate Portfolio Summary | Segment | Number of Investments | Carrying Value ($M) | Q3'24 NOI ($M) | | :--- | :--- | :--- | :--- | | Net Lease Real Estate (NNN) | 8 | $523 | $12.4 | | Other Real Estate | 7 | $293 | $5.0 | | **Total / W.A.** | **15** | **$816** | **$17.5** | - By property type, the portfolio's carrying value is composed of Office (**58%**), Industrial (**29%**), Multifamily (**9%**), and Retail (**4%**)[68](index=68&type=chunk) [Real Estate Owned (REO)](index=15&type=section&id=REAL%20ESTATE%20OWNED) The company's Real Estate Owned (REO) portfolio includes four properties acquired between June 2023 and July 2024, consisting of two multifamily properties in Texas and Arizona, and two office properties in Long Island City, NY, with multifamily assets showing strong leasing at 91% and 67%, while office assets have lower occupancy at 6% and 31% REO Portfolio Details | Location | Property Type | Undepreciated Net Carrying Value ($M) | W.A. % Leased | | :--- | :--- | :--- | :--- | | Arlington, TX | Multifamily | $15 | 67% | | Phoenix, AZ | Multifamily | $17 | 91% | | Long Island City, NY | Office | $36 | 6% | | Long Island City, NY | Office | $31 | 31% | [Detailed Investment Schedule](index=16&type=section&id=INVESTMENT%20DETAIL) This section provides a comprehensive, line-item detail for each investment within the company's portfolio as of September 30, 2024, including schedules for the loan portfolio broken down by property type (Multifamily, Office, Hotel, etc.), as well as for the Net Lease and Other Real Estate properties, with each entry specifying details such as carrying value, origination date, coupon, and maturity date - Provides a detailed breakdown of all **76** loans in the portfolio, categorized by property type, including carrying value, coupon, and extended maturity dates for each loan[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) - Lists individual properties in the Net Lease and Other Real Estate segments, detailing their collateral type, location, carrying value, and Q3 2024 NOI[76](index=76&type=chunk) Appendix Non-GAAP financial measure definitions and consolidated financial statements are provided for reference [Non-GAAP Financial Measures and Definitions](index=22&type=section&id=IMPORTANT%20NOTE%20REGARDING%20NON-GAAP%20FINANCIAL%20MEASURES%20AND%20DEFINITIONS) This section defines the non-GAAP financial measures used throughout the report, which management believes are useful for evaluating performance and comparability, including Distributable Earnings, Adjusted Distributable Earnings, Net Operating Income (NOI), Undepreciated Book Value, and the company's internal loan risk ranking methodology (a 1-5 scale) - Distributable Earnings is defined as GAAP net income excluding non-cash items like equity compensation, general CECL reserves, and unrealized gains/losses, intended to be an indicator of the ability to pay dividends[82](index=82&type=chunk)[83](index=83&type=chunk) - Adjusted Distributable Earnings further adjusts Distributable Earnings by excluding realized gains/losses on asset sales and realized specific CECL reserves[84](index=84&type=chunk) - Undepreciated Book Value is a non-GAAP measure that excludes accumulated depreciation and amortization on real estate investments to provide a measure that management believes enhances comparability with peers[88](index=88&type=chunk) [Consolidated Financial Statements](index=27&type=section&id=CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements for the period ending September 30, 2024, including the Consolidated Balance Sheet, showing total assets of $3.84 billion, and the Consolidated Statement of Operations, reporting a net income of $12.7 million for the third quarter [Consolidated Balance Sheet](index=27&type=section&id=CONSOLIDATED%20BALANCE%20SHEET) As of September 30, 2024, the company reported total assets of $3.84 billion, with key assets including $2.43 billion in net loans held for investment and $0.77 billion in net real estate, and total liabilities of $2.75 billion, with total equity of $1.09 billion Consolidated Balance Sheet Summary (in thousands) | Account | September 30, 2024 (in thousands) | | :--- | :--- | | **Total Assets** | **$3,838,425** | | Loans held for investment, net | $2,430,851 | | Real estate, net | $774,807 | | **Total Liabilities** | **$2,751,900** | | Securitization bonds payable, net | $1,086,908 | | Credit facilities | $848,381 | | **Total Equity** | **$1,086,525** | [Consolidated Statement of Operations](index=28&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20OPERATIONS) For the three months ended September 30, 2024, the company generated net interest income of $20.7 million and total property and other income of $25.9 million, resulting in net income attributable to common stockholders of $12.7 million, or $0.10 per basic share, after total expenses of $36.6 million Q3 2024 Statement of Operations Summary (in thousands) | Account | Three Months Ended Sep 30, 2024 (in thousands) | | :--- | :--- | | Net Interest Income | $20,679 | | Total Property and Other Income | $25,884 | | Total Expenses | ($36,602) | | **Net Income Attributable to Common Stockholders** | **$12,708** | | Net Income Per Share - Basic | $0.10 | [Reconciliation of GAAP to Non-GAAP Financial Information](index=30&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20INFORMATION) This section provides detailed reconciliations of GAAP figures to the non-GAAP measures presented in the report, including a reconciliation of the consolidated balance sheet to the 'at share' balance sheet, GAAP net book value to undepreciated book value, and GAAP net income to both Distributable Earnings and Adjusted Distributable Earnings - Reconciles GAAP net book value per share of **$8.38** to Undepreciated book value per share of **$9.11** by adding back accumulated depreciation (**$1.78** per share) and adjusting for non-GAAP real estate impairment (**-$1.05** per share)[101](index=101&type=chunk)[102](index=102&type=chunk) - Details the adjustments to reconcile GAAP net income (**$12.7 million**) to Distributable Earnings (**$17.9 million**) and Adjusted Distributable Earnings (**$27.0 million**) for Q3 2024[103](index=103&type=chunk)[104](index=104&type=chunk)

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 ...

Core Insights - Investors in BrightSpire Capital, Inc. (BRSP) should monitor stock movements due to significant implied volatility in the options market, particularly for the Nov 15, 2024 $2.50 Call option [1] Company Overview - BrightSpire Capital is currently rated as Zacks Rank 3 (Hold) within the REIT and Equity Trust industry, which is positioned in the bottom 36% of the Zacks Industry Rank [3] - Over the past 30 days, no analysts have raised their earnings estimates for the current quarter, while one analyst has lowered the estimate, resulting in a decrease of the Zacks Consensus Estimate from 20 cents per share to 19 cents [3] Market Sentiment - The high implied volatility suggests that options traders anticipate a significant price movement for BrightSpire Capital shares, indicating potential trading opportunities [3] - Seasoned options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of options value if the underlying stock does not move as much as expected [3]

Company Overview - BrightSpire (BRSP) is anticipated to report a year-over-year decline in earnings, with a projected EPS of $0.19, reflecting a decrease of 32.1% compared to the previous year [2] - Revenues for BrightSpire are expected to be $24.15 million, down 24.5% from the same quarter last year [2] - The consensus EPS estimate has been revised 2.94% lower in the last 30 days, indicating a reassessment by analysts [3] Earnings Expectations - The upcoming earnings report for BrightSpire is scheduled for October 29, and the actual results will significantly influence the stock price [1] - A positive Earnings ESP could indicate a potential earnings beat, while a negative reading suggests a more challenging outlook [4][5] - BrightSpire's management discussion during the earnings call will be crucial for determining future earnings expectations and stock price sustainability [1] Industry Context - Arbor Realty Trust (ABR), another player in the REIT sector, is expected to report an EPS of $0.42, which represents a year-over-year decline of 23.6% [9] - Revenues for Arbor Realty Trust are projected to be $277.28 million, down 17.6% from the previous year [9] - The consensus EPS estimate for Arbor has also been revised down by 0.6% in the last month, leading to an Earnings ESP of -1.19% [9]

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 ...

ValleraTo/iStock via Getty Images "I felt a great disturbance in the Force, as if millions of income chasers suddenly cried out in terror and were suddenly silenced. I fear something terrible has happened." Obi-Wan Kenobi Markets play out themes on long timeframes. That is essentially what allows the patient to win out. That is also what destroys the income chasing mentality. In the latter case, the peanut gallery often smiles with each dividend and gleefully points out that if things were bad, they wouldn' ...

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 June 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 Incorporation or ...

BrightSpire Capital, Inc. (NYSE:BRSP) Q2 2024 Results Conference Call July 31, 2024 10:00 AM ET Company Participants David Palame - General Counsel Mike Mazzei - Chief Executive Officer Andy Witt - President and Chief Operating Officer Frank Saracino - Chief Financial Officer Conference Call Participants Stephen Laws - Raymond James Steve Delaney - JMP Securities Matt Howlett - B. Riley Securities Jason Weaver - JonesTrading Tom Catherwood - BTIG Operator Hello, and welcome to the BrightSpire Capital, Inc. ...