BrightSpire Capital(US:BRSP)2025-04-30 20:12Interest 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].