Part I. Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements present BrightSpire Capital, Inc.'s financial position as of June 30, 2023, and December 31, 2022, and its operational results for the three and six months ended June 30, 2023, and 2022, showing total assets decreased to $4.35 billion from $4.75 billion, and a net loss of $7.5 million for Q2 2023, a significant shift from a net income of $34.6 million in the same period of 2022, largely driven by a substantial increase in the provision for current expected credit losses (CECL) Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2023 (Unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Loans and preferred equity held for investment, net | $3,112,973 | $3,468,742 | | Real estate, net | $771,383 | $732,468 | | Cash and cash equivalents | $218,170 | $306,320 | | **Total Assets** | **$4,354,753** | **$4,750,389** | | **Liabilities** | | | | Securitization bonds payable, net | $992,583 | $1,167,600 | | Credit facilities | $1,217,251 | $1,339,993 | | **Total Liabilities** | **$3,032,211** | **$3,361,365** | | **Total Equity** | **$1,322,542** | **$1,389,024** | Consolidated Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $30,244 | $32,763 | $63,198 | $62,148 | | Total Expenses | $62,584 | $44,567 | $134,667 | $80,273 | | Increase of CECL reserve | $28,966 | $10,143 | $68,579 | $9,277 | | **Net Income (Loss)** | **($7,498)** | **$34,631** | **($11,700)** | **$63,030** | | **Net Income (Loss) per Share - Diluted** | **($0.06)** | **$0.26** | **($0.09)** | **$0.47** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and financial activities, covering the business overview as a CRE credit REIT, basis of presentation, significant accounting policies like CECL, composition of loan and real estate portfolios, debt structures, fair value measurements, segment reporting, and subsequent events including dividend payments and property acquisitions post-quarter end - The company is a **commercial real estate (CRE) credit REIT** focused on originating, acquiring, financing, and managing a **diversified portfolio of CRE debt investments and net leased properties**, primarily in the United States[167](index=167&type=chunk) - The global markets are characterized by **volatility** from tightening monetary policy and geopolitical uncertainty, with the **office property market remaining distressed** due to work-from-home trends, which may impact the company's borrowers and tenants[116](index=116&type=chunk)[168](index=168&type=chunk) - The company's CECL reserve for financial instruments represents a **lifetime estimate of expected credit losses**, primarily utilizing a **probability of default (PD)/loss given default (LGD) model** based on historical data and a 12-month forecast period[236](index=236&type=chunk)[264](index=264&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=56&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's business strategy, portfolio composition, and recent developments, noting the portfolio totaled $4.0 billion in carrying value with a weighted average loan risk ranking of 3.1 as of June 30, 2023, and detailing the significant impact of rising interest rates and a distressed office market on operations, resulting in a net loss of $7.5 million in Q2 2023 driven by a $29.0 million CECL reserve increase, while maintaining $347.0 million in liquidity and reporting Distributable Earnings of $0.16 per share and Adjusted Distributable Earnings of $0.25 per share for the quarter - The company's primary investment strategy is **originating and acquiring CRE debt**, mainly **first mortgage loans**, supplemented by mezzanine loans, preferred equity, and net leased properties[25](index=25&type=chunk)[470](index=470&type=chunk) Portfolio Summary as of June 30, 2023 (dollars in thousands) | Investment Type | Count | Carrying Value (at BRSP share) | Net Carrying Value (at BRSP share) | | :--- | :--- | :--- | :--- | | Senior loans | 89 | $3,066,108 | $819,200 | | Mezzanine loans | 6 | $75,185 | $75,185 | | Preferred equity | 1 | $23,079 | $23,079 | | Net leased real estate | 8 | $577,218 | $137,547 | | Other real estate | 4 | $234,030 | $74,512 | | Private equity interests | 1 | $2,790 | $2,790 | | **Total/Weighted average** | **109** | **$3,978,410** | **$1,132,313** | - Significant developments in Q2 2023 include receiving **$162.0 million in loan repayments**, placing an Oakland office senior loan on nonaccrual status with a **$10.9 million specific CECL reserve**, and **acquiring two Long Island City office properties through deed-in-lieu of foreclosure**[30](index=30&type=chunk) Q2 2023 vs Q1 2023 Results of Operations (in thousands) | Account | Q2 2023 | Q1 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $30,244 | $32,954 | ($2,710) | (8.2)% | | Increase of CECL reserve | $28,966 | $39,613 | ($10,647) | (26.9)% | | **Net Income (Loss)** | **($7,498)** | **($4,202)** | **($3,296)** | **(78.4)%** | Six Months Ended June 30, 2023 vs 2022 Results (in thousands) | Account | 6M 2023 | 6M 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $63,198 | $62,148 | $1,050 | 1.7% | | Increase of CECL reserve | $68,579 | $9,277 | $59,302 | 639.2% | | **Net Income (Loss)** | **($11,700)** | **$63,030** | **($74,730)** | **(118.6)%** | [Quantitative and Qualitative Disclosures About Market Risk](index=87&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include interest rate, prepayment, extension, credit, real estate market, capital market, and foreign currency risk, with a hypothetical 100 basis point change in interest rates impacting annual net interest income by approximately $8.0 million, and these risks are managed through rigorous underwriting, active asset management, and derivative instruments, while the distressed office market and broader economic uncertainties continue to pose significant credit and real estate market risks - The company's main market risks are **interest rate, prepayment, credit, real estate, capital market, and foreign currency risk**[504](index=504&type=chunk) - A hypothetical **100 basis point increase or decrease** in the applicable interest rate benchmark on the loan portfolio would increase or decrease annual interest income by **$8.0 million**, net of interest expense[550](index=550&type=chunk) - **Credit risk is managed through a comprehensive underwriting process, careful asset monitoring, and proactive management of sub-performing assets**, which may include loan modifications or foreclosures[657](index=657&type=chunk)[663](index=663&type=chunk) - The company uses **derivative instruments**, including **interest rate swaps and foreign currency forwards**, to hedge against fluctuations in interest rates and protect the value of its foreign-denominated investments[507](index=507&type=chunk)[694](index=694&type=chunk) [Controls and Procedures](index=89&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2023, with no material changes to the company's internal control over financial reporting during the most recent fiscal quarter - The CEO and CFO concluded that as of June 30, 2023, the company's disclosure controls and procedures were **effective** at providing **reasonable assurance regarding the reliability of financial reporting**[695](index=695&type=chunk) - There were **no material changes** in internal control over financial reporting during the most recent fiscal quarter[670](index=670&type=chunk)[688](index=688&type=chunk) Part II. Other Information [Legal Proceedings](index=90&type=section&id=Item%201.%20Legal%20Proceedings) As of the reporting date, BrightSpire Capital, Inc. is not subject to any material legal proceedings and anticipates potential involvement in ordinary course legal actions in the future but does not expect them to have a material adverse effect on its financial condition or operations - The Company is **not currently subject to any material legal proceedings** and **does not expect future ordinary course litigation to have a material adverse effect**[696](index=696&type=chunk) [Risk Factors](index=90&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022, and investors are advised to consider those previously disclosed risks - There have been **no material changes** to the risk factors disclosed in the Company's Form 10-K for the year ended December 31, 2022[706](index=706&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=90&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20and%20Use%20of%20Proceeds) The company reported no sales of unregistered equity securities during the six months ended June 30, 2023, and no repurchases of its Class A common stock were made during the three months ended June 30, 2023 - There were **no sales of unregistered securities** during the six months ended June 30, 2023[672](index=672&type=chunk) - The Company **did not repurchase any of its Class A common stock** during the three months ended June 30, 2023[697](index=697&type=chunk)

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 March 31, 2023 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 o ...

BrightSpire Capital, Inc. (NYSE:BRSP) Q4 2022 Earnings Conference Call February 21, 2023 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 Steve Delaney - JMP Securities Eric Hagen - BTIG Jason Sabshon - KBW Operator Greetings and welcome to the BrightSpire Capital Inc. Fourth Quarter 2022 Earnings Conference Call. At this time, all parti ...

Holders of our common stock are entitled to receive distributions if and when the Board of Directors authorizes and declares a distribution. The Board of Directors has not established any minimum distribution level. In order to maintain our qualification as a REIT, we intend to pay dividends to our stockholders that, on an annual basis, will represent at least 90% of our taxable income (which may not necessarily equal net income as calculated in accordance with U.S. GAAP), determined without regard to the d ...

BrightSpire Capital, Inc. (NYSE:BRSP) Q3 2022 Earnings Conference Call November 2, 2022 10:00 AM ET Company Participants David Palame - General Counsel Mike Mazzei - Chief Executive Officer Andy Witt - President & Chief Operating Officer Frank Saracino - Chief Financial Officer Conference Call Participants Ethan Saghi - BTIG Stephen Laws - Raymond James Chris Muller - JMP Securities Matthew Erdner - JonesTrading Matthew Howlett - B. Riley Jade Rahmani - KBW Operator Greetings, and welcome to the BrightSp ...

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, 2022 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 ...

BrightSpire Capital, Inc. (NYSE:BRSP) Q2 2022 Earnings Conference Call August 3, 2022 10:00 AM ET Company Participants David Palame - General Counsel, Secretary & Executive Vice President Michael Mazzei - Chief Executive Officer & Board Member Andrew Witt - President & Chief Operating Officer Frank Saracino - Chief Financial Officer, Treasurer & Executive Vice President Conference Call Participants Eric Hagen - BTIG Chris Muller - JMP Securities Operator Greetings, ladies and gentlemen and welcome to the Br ...

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, 2022 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 ...

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 March 31, 2022 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 o ...

BrightSpire Capital, Inc. (NYSE:BRSP) Q1 2022 Earnings Conference Call May 3, 2022 10:00 AM ET Company Participants David Palamé - General Counsel, Secretary & Executive Vice President Michael Mazzei - Chief Executive Officer & Board Member Andrew Witt - President & Chief Operating Officer Frank Saracino - Chief Financial Officer, Treasurer & Executive Vice President Conference Call Participants Eric Hagen - BTIG Steven DeLaney - JMP Securities Derek Hewett - Bank of America Operator Greetings. Welcome to t ...