BrightSpire Capital(BRSP) - 2019 Q3 - Quarterly Report

Financial Position - Total assets decreased from $8,660,730 thousand as of December 31, 2018, to $7,443,857 thousand as of September 30, 2019, representing a decline of approximately 14.0%[20] - Total liabilities decreased from $5,815,528 thousand to $5,234,802 thousand, a decline of about 10.0%[20] - Stockholders' equity decreased from $2,706,905 thousand to $2,126,762 thousand, a drop of approximately 21.4%[20] - Total Stockholders' Equity as of March 31, 2018, was $1,407,570,000, reflecting an increase from the previous balance[35] - As of September 30, 2018, the balance of Total Equity was $3,052,387,000, showing stability in equity position[35] - The total stockholders' equity at September 30, 2019, was $2,209,055, with a significant accumulated deficit of $(809,344)[39] - The total equity at December 31, 2018, was $2,845,202, with additional paid-in capital of $2,899,353[38] Income and Loss - Net interest income for the three months ended September 30, 2019, was $26,111, a decrease of 12.5% from $29,958 for the same period in 2018[28] - The net loss attributable to Colony Credit Real Estate, Inc. common stockholders was $356,031 for the three months ended September 30, 2019, compared to a loss of $52,703 in the same period of 2018[28] - The comprehensive loss attributable to common stockholders was $352,663 for the three months ended September 30, 2019, compared to a loss of $47,456 in the same period of 2018[31] - The net income (loss) for the quarter ending September 30, 2019, was $(401,995), reflecting a significant decrease compared to previous periods[39] - The company reported a net income (loss) of $(356,031) for the quarter ending September 30, 2019, which included a loss of $(37,445) from operations[39] - Net loss for the nine months ended September 30, 2019, was $497,828, compared to a loss of $45,193 for the same period in 2018[42] Cash Flow - Net cash provided by operating activities increased to $113,205 for the nine months ended September 30, 2019, from $64,394 in 2018, representing a 76% increase[42] - Total cash, cash equivalents, and restricted cash at the end of the period was $199,881, up from $172,252 at the end of September 30, 2018[43] - The Company recorded net cash provided by financing activities of $319.919 million[178] Asset and Investment Changes - Loans and preferred equity held for investment increased from $2,020,497 thousand to $2,516,197 thousand, reflecting a growth of about 24.6%[20] - Cash and cash equivalents decreased from $77,317 thousand to $60,332 thousand, a reduction of approximately 22.0%[20] - Mortgage obligations issued by securitization trusts decreased significantly from $2,973,936 thousand to $1,793,435 thousand, a reduction of about 39.8%[20] - Real estate, net decreased from $1,959,690 thousand to $1,568,682 thousand, a decline of about 19.9%[20] - Investments in unconsolidated ventures decreased from $903,037 thousand to $571,365 thousand, a reduction of approximately 36.7%[20] - Other assets increased from $62,006 thousand to $76,266 thousand, reflecting a growth of about 22.9%[20] Expenses and Provisions - Total expenses surged to $473,527 for the three months ended September 30, 2019, compared to $151,838 in the same period of 2018, reflecting a significant increase[28] - Provision for loan losses increased significantly to $110,314 for the three months ended September 30, 2019, compared to $35,059 in the same period of 2018[28] - Impairment of operating real estate was reported at $272,722 for the three months ended September 30, 2019, a substantial increase from $29,378 in the same period of 2018[28] - Provision for loan loss significantly increased to $220,572 in 2019 from $34,542 in 2018, indicating a rise of over 537%[42] - Impairment of operating real estate rose to $282,846 in 2019, compared to $29,378 in 2018, reflecting an increase of 862%[42] Business Combination and Structure - The Combination Agreement involved the contribution of select portfolios of assets and liabilities from CLNY OP and RED REIT to the Company, along with the merger of NorthStar I and NorthStar II into the Company[56] - The Combination was approved by stockholders on January 18, 2018, and closed on January 31, 2018, with the Company's Class A common stock beginning to trade on the NYSE under the symbol "CLNC" on February 1, 2018[57] - The Company identified certain consolidated and unconsolidated Variable Interest Entities (VIEs) as of September 30, 2019, with assets of each VIE restricted to settle obligations of the respective VIE[78] - The Company holds a majority interest in its operating subsidiary, the OP, which is consolidated as it is deemed the primary beneficiary, representing substantially all of the total consolidated assets and liabilities of the Company[79] - The Company has determined it is the primary beneficiary of two Investing VIEs as of September 30, 2019, consolidating all assets, liabilities, income, and expenses of these entities[83] Taxation - The company elected to be taxed as a REIT beginning with its taxable year ended December 31, 2018, and must continually satisfy specific tests to maintain this status[170] - For the three months ended September 30, 2019, the Company recorded an income tax expense of $1.0 million compared to an income tax benefit of $2.5 million for the same period in 2018[177] - For the nine months ended September 30, 2019, the Company recorded an income tax expense of $0.5 million, while for the same period in 2018, it recorded an income tax benefit of $2.8 million[177]