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]

Core Viewpoint - The article discusses the impact of rising interest rates on the commercial real estate market and highlights the case of BrightSpire Capital, Inc. (BRSP), which has cut its dividend due to a shrinking loan portfolio and poor performance of legacy equity investments [3][4][6]. Company Overview - BrightSpire Capital, Inc. (NYSE:BRSP) is a commercial mortgage REIT with a current yield of 12% [3]. - The company's portfolio has decreased from over $3.8 billion to $2.8 billion as borrowers repaid loans without new capital deployment [3]. Dividend Cut Analysis - BRSP announced a reduction in its dividend from $0.20 to $0.16 per quarter, citing a loss of cash earnings from legacy equity investments and a focus on long-term planning [4][5]. - The company recognized impairments on three office properties, writing off 100% of their value exceeding the mortgage size, indicating a strategic decision to avoid further losses [4][5]. Financial Performance - Distributable earnings for Q2 2024 were reported at $0.22 per share, slightly above expectations, but the dividend cut reflects a conservative approach to cash flow management [4][5]. - The three impaired properties generated $8.4 million in NOI in Q2, with $306 million in debt, leading to a decision to let them go due to rising interest expenses [5]. Management Strategy - BRSP's management is prioritizing stability and is not willing to pay dividends that are not covered by cash flow, indicating a conservative capital management strategy [5][6]. - The expectation is that the dividend will remain reduced for at least two to four quarters until the company can increase loan origination and cash flow [5][6]. Market Outlook - The article suggests that while the market may react negatively to the dividend cut, the long-term strategy of BRSP to wait for better conditions before redeploying capital could limit the depth of any sell-off [5][6]. - The overall portfolio has experienced 20 dividend hikes and 4 cuts this year, indicating a mixed performance in the high dividend opportunities sector [6][7].

Core Viewpoint - BrightSpire Capital, Inc. (NYSE: BRSP) is rated as a Strong Sell due to its declining financial performance and dividend cut, indicating significant underlying issues within the company [2][18]. Company Overview - BrightSpire Capital, Inc. is a diversified and internally-managed commercial real estate credit REIT with a portfolio valued at $2.8 billion [4]. - The company has faced a substantial GAAP net loss of $67.9 million, equating to a loss of $0.53 per share, which is more than three times its quarterly dividend [5][6]. Financial Performance - The company reported distributable earnings of $17 million, or $0.13 per share, and a reduction in its dividend from $0.20 to $0.16 per share starting in Q3 2024 [3][8]. - The book value per share has significantly decreased, dropping to $8.41, with a tangible book value decline of approximately $3.50 per share over the last two years [12][15]. Dividend and Earnings Analysis - The dividend coverage ratio was previously reported at 1.4 times, but the recent cut indicates a deterioration in financial health [10][18]. - The company has been impacted by real estate depreciation and increased reserves for expected credit losses (CECL), leading to a cash flow sweep trigger [6][7]. Market Position and Risks - The company is heavily invested in floating-rate loans, which poses additional risks in a changing interest rate environment [12][13]. - The debt-to-equity ratio has increased to 2.1x, indicating a higher financial leverage and risk profile [13][14]. Investment Outlook - The total return for BRSP has been significantly negative at -51.54%, contrasting sharply with a positive return of 21.17% for the iShares 5-10 Year Investment Grade Corporate Bond ETF [16]. - The recommendation is to avoid investing in BRSP due to its deteriorating financial metrics and the risks associated with its current strategy [18].

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. ...

This quarterly report represents an earnings surprise of 4.76%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.24 per share when it actually produced earnings of $0.23, delivering a surprise of -4.17%. Colony Credit, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $25.25 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.76%. This compares to year-ago revenues of $30.24 million. The company has top ...

Financial Results - BrightSpire Capital, Inc. announced its financial results for the second quarter ended June 30, 2024, on July 30, 2024[15]. - The company provided a Supplemental Financial Disclosure Presentation available on its website, detailing its financial position as of June 30, 2024[3]. - The press release regarding the financial results is attached as Exhibit 99.1 to the Current Report on Form 8-K[15]. - The financial statements and exhibits related to the report are included in Item 9.01 of the Current Report[5]. Company Information - The Class A common stock of BrightSpire Capital, Inc. is traded on the New York Stock Exchange under the symbol BRSP[6]. - The company is not classified as an emerging growth company under the Securities Act[7]. - The company’s principal executive offices are located at 590 Madison Avenue, 33rd Floor, New York, NY 10022[6]. - The registrant's telephone number is (212) 547-2631[14]. Information Distribution - The company uses its website as a distribution channel for important information, including press releases and financial data[4]. - The information in the report is not deemed "filed" for the purposes of the Securities Exchange Act of 1934[13].

Core Viewpoint - BRSP is considered a conservatively managed mortgage real estate investment trust (mREIT) in a challenging market, currently trading at a significant discount to its net asset value (NAV), presenting a potential investment opportunity [1][2][5]. Company Overview - BRSP is managed by an experienced team and is currently trading at a 40%+ discount to NAV, which is viewed as an attractive opportunity [1]. - The company has a conservative approach to managing its portfolio, with a debt-to-equity ratio of only 1.8x, allowing for flexible decision-making regarding defaulted properties [8]. Financial Performance - As of the end of 2022, BRSP's portfolio was valued at over $3.5 billion, with $148 million in credit losses written off as the company took possession of properties [8]. - The adjusted distributable earnings of BRSP declined in Q1, but the company still covered its dividend, although coverage is tighter [15]. - The book value of BRSP has decreased primarily due to CECL reserves, which are currently $1.10 per share [15]. Portfolio Composition - The total core portfolio of BRSP is valued at $4.54 billion, with a net carrying value of $1.76 billion, translating to $13.39 per share [3]. - The breakdown of the portfolio includes senior mortgage loans valued at approximately $2.28 billion, mezzanine loans at $268 million, and preferred equity & other loans at $287 million [3]. Market Sentiment - The market is currently punishing BRSP for its conservative management style, leading to a 55% discount to book value, despite the company's strong fundamentals [8]. - There is a perception that the risks associated with BRSP's portfolio are being overestimated by the market, particularly in comparison to the actual risk levels of senior mortgages today [4][7].

When evaluating companies on the stock market, the risk factor causes you to discount the value of something based on how risky you think it is. The riskier the company (or its dividend), the more discounted its stock price. This can be amplified if the company is involved in lending to a sector that is seeing an increase in risk or perceived risk. Pick #1: BRSP - Yield 12.7% PM Images Co-authored by Treading Softly Today, I want to examine two companies that offer sky-high double-digit yields because of th ...

BrightSpire Capital, Inc. (NYSE:BRSP) Q1 2024 Results Conference Call May 1, 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 - Citizens JMP Matthew Erdner - JonesTrading Operator Greetings, and welcome to the BrightSpire Capital Inc.'s First Quarter 2024 Earnings Call. At this time, all pa ...