BRSP

Interested in BrightSpire Capital, Inc.? Here are five stocks we like better. BrightSpire reported a weak GAAP result: a second-quarter net loss of $18.3 million, or $0.15 per share, despite $16.8 million in adjusted distributable earnings. Net book value fell to $6.81 per share, pressured by higher CECL reserves and real estate impairments. The loan portfolio expanded significantly: BrightSpire originated 10 loans totaling $319 million, growing its portfolio to approximately $2.9 billion across 106 loans. Management aims to reach $3.5 billion by year-end and nearly $4 billion by mid-2027, with greater multifamily exposure and less office concentration. Asset sales will support capital recycling but delay dividend coverage: the planned $300 million sale of the Albertsons investment is expected to free about $100 million for higher-return lending, while delaying full dividend coverage by roughly two quarters. The company also raised its CECL reserve to $100 million and held $131 million in liquidity. BrightSpire Capital (NYSE:BRSP) reported a second-quarter GAAP net loss attributable to common stockholders of $18.3 million, or $0.15 per share, while adjusted distributable earnings totaled $16.8 million, or $0.13 per share. Distributable earnings were $15.8 million, or $0.12 per share. The company ended the quarter with GAAP net book value of $6.81 per share and undepreciated book value of $8.10 per share. Chief Financial Officer Frank Saracino said the declines from the prior quarter were driven mainly by higher CECL reserves and real estate impairments, partly offset by the effect of share repurchases. → This Tiny AI Supplier Could Be More Important Than the Chipmakers CEO Mike Mazzei said BrightSpire had an active quarter of lending activity, completing 10 loans totaling $319 million. After quarter-end, the company closed three additional loans totaling $117 million and had four loans totaling $178 million in execution. BrightSpire's loan portfolio stood at approximately $2.9 billion across 106 loans as of June 30, an increase of nearly $200 million from the prior quarter. President and Chief Operating Officer Andy Witt said the portfolio's weighted-average loan balance was $27 million and its weighted-average risk ranking was 3.0. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Year to date, the company committed $892 million across 24 loans, with an average loan balance of $37 million. Witt said BrightSpire expects its average loan size going forward to be in a range of roughly $30 million to $35 million, while generally avoiding loans below $20 million. Mazzei said BrightSpire expects to grow its loan book to about $3.5 billion by year-end and toward $4 billion by the middle of 2027. The company is seeking to shift its portfolio toward more multifamily loans, less office exposure, smaller average loan sizes and a greater share of loans originated after interest-rate increases. → Innovative ETF Strategies That Are Paying Off This Summer Management said multifamily whole-loan spreads continue to center around roughly 250 basis points over SOFR. BrightSpire sees an active lending environment, with its year-to-date pipeline volume running ahead of 2025. Witt said the company had seen about $57 billion of opportunities through the top of its origination funnel and could reach $110 billion to $120 billion by year-end if current trends continue. BrightSpire agreed to sell its Albertsons triple-net equity investment for $300 million, including the assumption of $200 million in CMBS debt. The transaction is expected to close in the third quarter and will eliminate refinancing risk associated with the property's 2028 debt maturity. Mazzei said the debt carried a 4.77% interest rate, and refinancing it at current market rates could have resulted in a higher borrowing cost, reduced loan proceeds and a need for additional equity. The sale is expected to free approximately $100 million of capital that BrightSpire intends to deploy at a higher return on equity. While management previously expected to reach full dividend coverage by year-end, Mazzei said the Albertsons sale is likely to delay that objective by about two quarters. He said the company expects stronger dividend coverage during the second or third quarter of 2027 as capital is redeployed into loans. BrightSpire also repurchased more than 3.8 million shares for approximately $21 million during the quarter, at an average price of $5.46 per share. Saracino said the buyback increased undepreciated book value by $0.08 per share. The company had about $29 million remaining under its repurchase authorization. The company resolved three watchlist loans totaling $99 million during the quarter, producing a net reduction of $30 million in watchlist exposure after two loans were added. BrightSpire's watchlist consisted of four loans totaling $136 million at quarter-end. The additions included an $11 million Denver office loan that management expects to sell in the near term and a $57 million Las Vegas multifamily loan. Witt said leasing improved at an Austin multifamily property, which was operating near stabilized occupancy, while a Dallas office property was approaching 70% occupancy. BrightSpire held six REO properties with a gross book value of $330 million. Two multifamily assets with combined net asset value of $62 million were under contract for sale, including a Mesa, Arizona, property expected to close in the third quarter. The company recorded a $3.8 million GAAP impairment on that property based on expected net sale proceeds, along with an estimated $6.5 million reduction in undepreciated book value. The company expects two other multifamily REO assets, with combined net asset value of $84 million, to reach the market over the next several quarters. Management continues to target a 2027 resolution for its San Jose hotel property and said it remains patient with a Santa Clara multifamily pre-development asset as Bay Area rents improve. Second-quarter results also included approximately $9 million of operating real estate impairments related to two legacy retail triple-net assets and an REO multifamily property. Saracino said the retail impairments had an immaterial effect on undepreciated book value because the investments had been written down two years earlier. BrightSpire increased its general CECL reserve to $100 million, or 327 basis points of total loan commitments, from $87 million, or 306 basis points, in the first quarter. Mazzei said the increase was roughly split between loan-specific factors and broader economic conditions. Management said it expects to issue a second CRE CLO in 2026, which would be the first time BrightSpire has completed two CLO transactions in one year. Mazzei said the anticipated fourth-quarter CLO would provide higher leverage than the company's existing loan-book financing. As of the call date, BrightSpire reported approximately $131 million of liquidity, including $45 million of cash, $30 million available under its credit facility and about $56 million of approved but undrawn warehouse borrowings. The company's debt-to-assets ratio was 70%, while its debt-to-equity ratio was 2.7 times. BrightSpire Capital Inc (NYSE: BRSP) is a real estate investment trust (REIT) specializing in commercial real estate debt. The company primarily originates, acquires and manages a diversified portfolio of mortgage loans, mezzanine loans and preferred equity investments secured by office, retail, industrial, multifamily and hospitality assets across the United States. By focusing on income-producing credit instruments, BrightSpire seeks to deliver attractive risk-adjusted returns to its shareholders through regular dividend distributions. BrightSpire’s investment strategy spans the capital structure of commercial real estate, with an emphasis on senior mortgages that offer more stable cash flows and downside protection. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BrightSpire Capital Q2 Earnings Call Highlights" was originally published by MarketBeat. 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This article first appeared on GuruFocus. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BrightSpire Capital Inc (NYSE:BRSP) closed 10 loans in the second quarter for $319 million, with an additional 3 loans for $117 million closed after the quarter ended. The company completed its largest quarterly share buyback, repurchasing 3.8 million shares for approximately $21 million. BrightSpire Capital Inc (NYSE:BRSP) is actively rotating out of real estate equity investments and into its core strategy of first mortgage loans. The company resolved 3 watch list loans totaling $99 million, resulting in a net reduction of $30 million in watch list loan exposure. BrightSpire Capital Inc (NYSE:BRSP) plans to grow its loan book to approximately $3.5 billion by year-end, with ongoing originations improving portfolio composition. BrightSpire Capital Inc (NYSE:BRSP) reported a second quarter GAAP net loss attributable to common stockholders of $18.3 million or $0.15 per share. The sale of Albertson's triple net equity position slightly delays reaching full dividend coverage by year-end as previously anticipated. The company recorded approximately $9 million of operating real estate impairment related to legacy retail triple net assets and an REO multi-family property. BrightSpire Capital Inc (NYSE:BRSP) added two loans to the watch list, including an $11 million Denver office loan and a $57 million Las Vegas multi-family loan. The company's general Cecil provision increased to $100 million, driven by macroeconomic conditions and specific inputs on certain loans. Warning! GuruFocus has detected 7 Warning Signs with BRSP. Is BRSP fairly valued? Test your thesis with our free DCF calculator. Q: Can you talk about how to think about the run rate for DE on a go-forward basis in conjunction with the significant loan portfolio growth? A: Mike Mazzie, CEO: As we redeploy capital from REO into the loan book, we expect to reach a loan book of $3.5 billion, which would cover the dividend. However, the sale of Albertsons has delayed this by about two quarters. We aim to grow the loan book closer to $4 billion by the end of 2027, which should lead to more positive dividend coverage. Q: Can you discuss the landscape and opportunities in Texas and Arizona, given recent loan activities there? A: Mike Mazzie, CEO: We are seeing a reset in the market, which is fueling asset sales. Lenders are pushing borrowers to execute short sales or foreclosures, creating opportunities at reset bases. We are entering these markets again at higher debt yields than during the interest rate bubble. Q: With the 10-year treasury remaining high, does this affect your ability to reach the $3.5 billion loan portfolio goal by year-end? A: Mike Mazzie, CEO: We plan to run leverage a bit higher and issue a CLO in the fourth quarter. Despite high interest rates, the bridge and CLO markets remain liquid, and we are moving forward with our plans. We may pause if asset bids don't reflect value, but we aim to continue despite current rates. Q: Can you provide more color on the increase in Cecil reserves? Was it due to specific assets or broader economic concerns? A: Frank Saracino, CFO: The increase is about 50-50 between specific assets and economic conditions. We have a fair number of office loans, and we assess these every quarter. New loans also add to the Cecil reserves. Q: Can you provide insights into the industrial loan market and how it compares to multi-family loans? A: Andy Witt, President and COO: Industrial spreads have tightened and are now more inside of 300 basis points, compared to last year. We favor multi-family loans due to more granularity in rent rolls. Industrial loans are about 25-30 basis points wider than multi-family, but we see more opportunities in multi-family. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NEW YORK, July 28, 2026--(BUSINESS WIRE)--BrightSpire Capital, Inc. (NYSE: BRSP) ("BrightSpire Capital" or the "Company") today announced its financial results for the second quarter 2026 and certain updates. The Company reported second quarter 2026 GAAP net loss attributable to common stockholders of ($18.3) million, or ($0.15) per share, Distributable Earnings of $15.8 million, or $0.12 per share, and Adjusted Distributable Earnings of $16.8 million, or $0.13 per share. The Company reported GAAP net book value of $6.81 per share and undepreciated book value of $8.10 per share as of June 30, 2026. Michael J. Mazzei, Chief Executive Officer, commented, "The Company had a productive second quarter. Highlights include the largest quarterly share buyback in the Company’s history, positive net loan originations and net reduction in watch list exposure. We also entered into a contract for the sale of one of our triple net lease assets, providing another meaningful step in rotating capital out of owned real estate equity investments and into our core strategy of first mortgage loans." Andrew E. Witt, President & Chief Operating Officer, commented, "We had a strong quarter of loan originations with $319 million of committed capital closed and an additional $295 million closed or in-execution subsequent to quarter end. As of today our loan book stands at approximately $2.9 billion, up over 20% year-over-year. We expect to continue growing the portfolio and remain focused on resolving our remaining REO properties and redeploying the capital to drive earnings growth." Supplemental Financial Report A Second Quarter 2026 Supplemental Financial Report is available on the Shareholders – Events and Presentations section of the Company’s website at www.brightspire.com. This information will be furnished to the SEC in a Current Report on Form 8-K. We refer to "Distributable Earnings" and "Adjusted Distributable Earnings", which are non-GAAP financial measures, in this release. A reconciliation to net income/(loss) attributable to BrightSpire Capital common stockholders, the most directly comparable GAAP measure, is included in our full detailed Second Quarter 2026 Supplemental Financial Report and is available on our website at www.brightspire.com. Second Quarter 2026 Conference Call The Company will conduct a conference call to discuss the results on Wednesday, July 29, 2026, at 10:00 a.m. ET / 7:00 a.m. PT. To participate in the event by telephone, please dial (833) 821-4389 ten minutes prior to the start time (to allow time for registration). International callers should dial (412) 652-1257. The call will also be broadcast live over the Internet and can be accessed on the ‘Shareholders’ section of the Company’s website at www.brightspire.com. A webcast of the call will be available for 90 days on the Company’s website. For those unable to participate during the live call, a replay will be available starting July 29, 2026, at 1:00 p.m. ET / 10:00 a.m. PT, through August 5, 2026, at 11:59 p.m. ET / 8:59 p.m. PT. To access the replay, dial (844) 512-2921 and use conference ID code 10209858. International callers should dial (412) 317-6671 and enter the same conference ID. Dividend Announcement On June 15, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.16 per share to holders of Class A common stock for the second quarter of 2026, which was paid on July 15, 2026, to common stockholders of record as of June 30, 2026. About BrightSpire Capital, Inc. BrightSpire Capital, Inc. (NYSE: BRSP) is internally managed and one of the largest publicly traded commercial real estate (CRE) credit REITs, focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE debt investments predominantly in the United States. CRE debt investments primarily consist of first mortgage loans, which we expect to be the primary investment strategy. BrightSpire Capital is organized as a Maryland corporation and taxed as a REIT for U.S. federal income tax purposes. For additional information regarding the Company and its management and business, please refer to www.brightspire.com. Cautionary Statement Regarding Forward-Looking Statements This press release 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 statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ significantly from those expressed in any forward-looking statement. Among others, the following uncertainties and other factors could cause actual results to differ from those set forth in the forward-looking statements: operating costs and business disruption may be greater than expected; the Company's operating results may differ materially from the information presented in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as in the Company’s other filings with the Securities and Exchange Commission; defaults by borrowers in paying debt service on outstanding indebtedness; borrowers’ abilities to manage and stabilize properties; deterioration in the performance of the properties securing our investments (including the impact of higher interest expense, depletion of interest and other reserves or payment-in-kind concessions in lieu of current interest payment obligations, population shifts and migration, reduced demand for office, multifamily, hospitality or retail space) that may cause deterioration in the performance of our investments and, potentially, principal losses to us; the fair value of the Company's investments may be subject to uncertainties (including impacts associated with inflationary trends, the volatility of interest rates and credit spreads, increased market volatility affecting commercial real estate businesses and public securities); the Company's use of leverage and interest rate mismatches between the Company’s assets and borrowings could hinder its ability to make distributions and may significantly impact its liquidity position; the timing of and ability to generate additional liquidity and deploy available liquidity, including in senior mortgage loans; whether the Company will achieve its anticipated Distributable Earnings per share (as adjusted), or maintain or produce higher Distributable Earnings per share (as adjusted) in the near term or ever; the Company’s ability to maintain or grow the dividend at all in the future; adverse impacts on the Company's corporate revolver, including covenant compliance and borrowing base capacity; adverse impacts on the Company's liquidity, including available capacity under and margin calls on master repurchase facilities; lease payment defaults or deferrals, demands for protective advances and capital expenditures; the ability of the Company to refinance certain mortgage debt on similar terms to those currently existing or at all; the ability to execute CRE CLO’s on a go forward basis, including at a reduced cost of capital; whether transactions under letter of intent or contract will close on expected terms, in the expected time period or at all; the impact of legislative, regulatory, tax and competitive changes, regime changes and the actions of government authorities and in particular those affecting the commercial real estate finance and mortgage industry or our business; and the ongoing impacts of global geopolitical uncertainties and unforeseen public health crises on the real estate market. The foregoing list of factors is not exhaustive. Additional information about these and other factors can be found in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as in BrightSpire Capital’s other filings with the Securities and Exchange Commission. We caution investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this press release. BrightSpire Capital is under no duty to update any of these forward-looking statements after the date of this press release, nor to conform prior statements to actual results or revised expectations, and BrightSpire Capital does not intend to do so. View source version on businesswire.com: https://www.businesswire.com/news/home/20260728255277/en/ Contacts Investor Relations BrightSpire Capital, Inc.Addo Investor RelationsAnne [email protected]

BrightSpire (BRSP) came out with quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -7.14%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.15 per share when it actually produced earnings of $0.14, delivering a surprise of -6.67%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Colony Credit, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $17.23 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 10.09%. This compares to year-ago revenues of $16.73 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Colony Credit shares have lost about 6.4% since the beginning of the year versus the S&P 500's gain of 8.3%. While Colony Credit has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Colony Credit was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.15 on $16.5 million in revenues for the coming quarter and $0.60 on $65.95 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Ares Commercial Real Estate (ACRE), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This real estate investment trust is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of +115.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Ares Commercial Real Estate's revenues are expected to be $26.52 million, up 14.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BrightSpire Capital, Inc. (BRSP) : Free Stock Analysis Report Ares Commercial Real Estate Corporation (ACRE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NEW YORK, June 15, 2026--(BUSINESS WIRE)--BrightSpire Capital, Inc. (NYSE: BRSP) ("BrightSpire Capital" or the "Company") today announced that the Company’s Board of Directors has declared a dividend of $0.16 per share of Class A common stock for the quarter ending June 30, 2026. The dividend is payable on July 15, 2026 to stockholders of record as of June 30, 2026. About BrightSpire Capital, Inc. BrightSpire Capital, Inc. (NYSE: BRSP) is internally managed and one of the largest publicly traded commercial real estate (CRE) credit REITs, focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE debt investments predominantly in the United States. CRE debt investments primarily consist of first mortgage loans, which we expect to be the primary investment strategy. BrightSpire Capital is organized as a Maryland corporation and taxed as a REIT for U.S. federal income tax purposes. For additional information regarding the Company and its management and business, please refer to www.brightspire.com. Cautionary Statement Regarding Forward-Looking Statements This press release 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 statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ significantly from those expressed in any forward-looking statement. Among others, the following uncertainties and other factors could cause actual results to differ from those set forth in the forward-looking statements: operating costs and business disruption may be greater than expected; the Company's operating results may differ materially from the information presented in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as in the Company’s other filings with the Securities and Exchange Commission; defaults by borrowers in paying debt service on outstanding indebtedness; borrowers’ abilities to manage and stabilize properties; deterioration in the performance of the properties securing our investments (including the impact of higher interest expense, depletion of interest and other reserves or payment-in-kind concessions in lieu of current interest payment obligations, population shifts and migration, reduced demand for office, multifamily, hospitality or retail space) that may cause deterioration in the performance of our investments and, potentially, principal losses to us; the fair value of the Company's investments may be subject to uncertainties (including impacts associated with inflationary trends, the volatility of interest rates and credit spreads, increased market volatility affecting commercial real estate businesses and public securities); the Company's use of leverage and interest rate mismatches between the Company’s assets and borrowings could hinder its ability to make distributions and may significantly impact its liquidity position; the timing of and ability to generate additional liquidity and deploy available liquidity, including in senior mortgage loans; whether the Company will achieve its anticipated Distributable Earnings per share (as adjusted), or maintain or produce higher Distributable Earnings per share (as adjusted) in the near term or ever; the Company’s ability to maintain or grow the dividend at all in the future; adverse impacts on the Company's corporate revolver, including covenant compliance and borrowing base capacity; adverse impacts on the Company's liquidity, including available capacity under and margin calls on master repurchase facilities; lease payment defaults or deferrals, demands for protective advances and capital expenditures; the ability of the Company to refinance certain mortgage debt on similar terms to those currently existing or at all; the ability to execute CRE CLO’s on a go forward basis, including at a reduced cost of capital; whether transactions under letter of intent or contract will close on expected terms, in the expected time period or at all; the impact of legislative, regulatory, tax and competitive changes, regime changes and the actions of government authorities and in particular those affecting the commercial real estate finance and mortgage industry or our business; and the ongoing impacts of global geopolitical uncertainties and unforeseen public health crises on the real estate market. The foregoing list of factors is not exhaustive. Additional information about these and other factors can be found in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as in BrightSpire Capital’s other filings with the Securities and Exchange Commission. We caution investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this press release. BrightSpire Capital is under no duty to update any of these forward-looking statements after the date of this press release, nor to conform prior statements to actual results or revised expectations, and BrightSpire Capital does not intend to do so. View source version on businesswire.com: https://www.businesswire.com/news/home/20260615581230/en/ Contacts Investor Relations BrightSpire Capital, Inc.Addo Investor RelationsAnne [email protected]

BrightSpire reported GAAP net income of $4.8 million ($0.03/sh), Distributable Earnings of $15.6 million ($0.12/sh) and Adjusted DE of $18.2 million ($0.14/sh), with $206 million in liquidity and GAAP net book value of $7.05/share, down modestly from Q4 mainly due to equity and PSU vesting. Origination activity has picked up—management closed 37 loans totaling $1.1 billion with nine more in execution for $283 million (loan book now $2.7 billion)—and plans to grow to $3.5 billion by year-end and issue a fifth CLO in H2 to achieve dividend coverage. The portfolio is shifting toward multifamily as office exposure fell to just over 20%; watchlist exposure has declined to $166 million (four watchlist loans at $134 million with two sales expected) and REO totals $336 million, including a San Jose hotel and a Santa Clara multifamily asset. Interested in BrightSpire Capital, Inc.? Here are five stocks we like better. BrightSpire Capital (NYSE:BRSP) reported first-quarter 2026 results that management characterized as consistent with its expectations, while outlining plans to continue growing the loan book, reduce office and watchlist exposure, and pursue additional financing execution later this year. General Counsel David A. Palamé said the company posted GAAP net income attributable to common stockholders of $4.8 million, or $0.03 per share. BrightSpire also reported Distributable Earnings (DE) of $15.6 million, or $0.12 per share, and Adjusted Distributable Earnings of $18.2 million, or $0.14 per share. → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? Palamé said current liquidity was $206 million, including $58 million of unrestricted cash. As of March 31, 2026, he reported GAAP net book value of $7.05 per share and undepreciated book value of $8.24 per share. Chief Financial Officer Frank V. Saracino reiterated the quarter’s earnings metrics and noted that DE included a specific reserve of approximately $2.6 million. Saracino said book value declined quarter-over-quarter, with GAAP net book value falling to $7.05 per share from $7.30 in the fourth quarter and undepreciated book value to $8.24 from $8.44. He attributed the change “mainly” to equity granted under the company’s stock compensation program and the first vesting of performance stock unit awards, adding that PSU vesting will be an annual first-quarter occurrence going forward. → Did Qualcomm Just Put Apple in Check? On reserves, Saracino said the company recorded the $2.6 million specific CECL reserve during the quarter. He also said the general CECL provision decreased slightly to $87 million, or 306 basis points on total loan commitments, from $88 million, or 315 basis points, in the prior quarter. Saracino reported a debt-to-assets ratio of 68% and debt-to-equity ratio of 2.4x. Liquidity of approximately $206 million included cash, $120 million available under the credit facility, and about $28 million of approved but undrawn borrowings on warehouse lines. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss Chief Executive Officer Michael J. Mazzei said the company has been rebuilding loan production and has closed 37 loans totaling $1.1 billion since reinitiating new originations, with an additional nine loans in execution for $283 million, for a combined total “just over $1.4 billion.” He said the loan book now stands at $2.7 billion. Mazzei said the strategy remains focused on middle-market lending with an average loan size of roughly $27 million, with an emphasis on increasing diversification and avoiding concentrations that are “too large for our equity capital base.” He added that this approach also allows the company to maintain “slightly lower cash balances.” President and Chief Operating Officer Andrew E. Witt said the company closed eight loans totaling $311 million in commitments during and after the first quarter, and had nine additional loans in execution totaling $283 million. He said that in total for the year, BrightSpire had closed or was in execution on 17 loans totaling $594 million in commitments, 14 of which were multifamily. Witt also pointed to an increase in deal flow, saying the company saw more than $29 billion at the “top end of the funnel,” up more than 50% year-over-year. He said the company remains focused on the middle market, “mostly between $20 million and $70 million.” Mazzei said the “overwhelming majority” of new loans have been multifamily, contributing to a more favorable property type mix. He also said the portfolio benefited from payoffs and resolutions of office loans, and he expects a further reduction in office exposure in the next quarter. BrightSpire also closed loans on hotel and industrial properties during the quarter, though management indicated multifamily is expected to remain the primary focus. Witt said repayments during the quarter totaled $169 million across six positions, including two risk rank 5 loans. He noted that three of the repayments were office loans, reducing office exposure to “just over 20% of the loan portfolio,” with further reductions expected during the remainder of 2026. Witt added that the property underlying the company’s Phoenix office loan, its largest office loan, is currently being marketed for sale. In response to analyst questions about the second-quarter market environment, Mazzei said a brief slowdown tied to geopolitical and private credit market developments lasted “about 2 or 3 weeks,” but activity “pretty much right back on track.” He said spreads have remained tight, with multifamily generally “around the mid 200s, plus or minus, 10 basis points,” and cited CRE CLO market indications, including “price talk on the AAAs at 135,” which he said was tighter than where the company printed in January. Mazzei also discussed regional dynamics, saying Sunbelt multifamily bridge lending demand is high as markets work through vacancies and rent concessions. Witt highlighted “headwinds” in “overbuilt Sun Belt markets,” citing rental rate and concession pressures, and said challenges are pronounced in border states such as Texas and Arizona, which he linked to immigration-related policy dynamics. Mazzei said the company is watching Arizona closely, describing limited asset-sale activity there and suggesting it may take another 12 to 18 months for vacancy and absorption to improve. Witt said watchlist exposure continued to decline. During the first quarter, BrightSpire resolved three loans, including one property acquired through foreclosure, bringing watchlist exposure down to $166 million, or 6% of the loan portfolio. He said the company also “downgraded and simultaneously resolved” a $32 million multifamily mezzanine loan. As of the call date, Witt said the company had four watchlist loans totaling $134 million. He added that two of the remaining watchlist loans—both multifamily—are under purchase and sale agreements expected to close in the second quarter. After those sales, the watchlist would be reduced to two positions: a Dallas office loan and an Austin multifamily loan with combined gross book value of $67 million. On the company’s REO portfolio, Witt said BrightSpire had six positions totaling $336 million of gross carrying value. Two multifamily REO properties are being marketed following completion of value-add business plans, while two other multifamily REO assets are still undergoing value-add work and are expected to be marketed in late 2026 or early 2027. Witt said the remaining two REO properties are the San Jose Hotel and a Santa Clara multifamily pre-development property. He said the company continues to improve operations and make upgrades at the San Jose Hotel, adding that the loan represents 43% of REO exposure with a carrying value of $143 million. For the Santa Clara property, Witt said conditions have evolved favorably as the Bay Area sees strong rent growth “fueled by the AI boom,” and the company anticipates taking the property to market later this year or early 2027. Mazzei said priorities include redeploying capital from watchlist and REO resolutions into new loans, growing the loan book to $3.5 billion by year-end, and executing a fifth CLO in the second half of the year. He said this plan positions the company to cover the dividend by year-end. Asked about changes to dividend coverage timing, Mazzei said progress can be affected by “the timing of asset resolutions and putting out money,” citing delays such as pushing back indications on pricing for an Arizona sale. He said the company was “very confident” it would reach dividend coverage by year-end and noted that results were “just shy” by $0.02 this quarter. On financing spreads and returns, Managing Director and Chief Credit Officer Matthew Heslin said the company has generally tried to maintain about a 100-basis-point spread between loan yields and financing costs, and said that tightening on the loan side has been matched by tightening on the back-leverage side, helping the company maintain targeted returns. Mazzei also addressed share repurchases, saying the company has executed buybacks during 2025 and would consider doing so again, but emphasized that at the current stock level, “the bias is make new loans,” adding that originating loans is more attractive than repurchasing shares at current pricing. BrightSpire Capital Inc (NYSE: BRSP) is a real estate investment trust (REIT) specializing in commercial real estate debt. The company primarily originates, acquires and manages a diversified portfolio of mortgage loans, mezzanine loans and preferred equity investments secured by office, retail, industrial, multifamily and hospitality assets across the United States. By focusing on income-producing credit instruments, BrightSpire seeks to deliver attractive risk-adjusted returns to its shareholders through regular dividend distributions. BrightSpire’s investment strategy spans the capital structure of commercial real estate, with an emphasis on senior mortgages that offer more stable cash flows and downside protection. The article "BrightSpire Capital Q1 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Release Date: April 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BrightSpire Capital Inc (NYSE:BRSP) reported first-quarter GAAP net income attributable to common stockholders of $4.8 million or $0.03 per share. The company closed 37 loans totaling $1.1 billion, with an additional nine loans in execution for $283 million, indicating strong loan origination activity. BrightSpire Capital Inc (NYSE:BRSP) has a strategy focused on middle-market lending, with an average loan size of approximately $27 million, contributing to diversification. The company has reduced its office loan exposure and expects further reductions, which could mitigate risks associated with office properties. BrightSpire Capital Inc (NYSE:BRSP) plans to grow its loan book to $3.5 billion by year-end and execute a fifth CLO in the second half of the year, aiming to cover the dividend by year-end. The company's GAAP net book value decreased to $7.05 per share from $7.30 in the fourth quarter, indicating a decline in shareholder equity value. BrightSpire Capital Inc (NYSE:BRSP) faces challenges in overbuilt Sunbelt markets, particularly in Texas and Arizona, which are experiencing rental rate and concession challenges. The company recorded a specific CECL reserve of approximately $2.6 million, reflecting potential credit risks. BrightSpire Capital Inc (NYSE:BRSP) has a debt-to-assets ratio of 68% and a debt-to-equity ratio of 2.4 times, indicating a relatively high leverage level. The company is still dependent on group business for its San Jose Hotel property, and has not yet seen a pickup in transient business travelers, which could impact revenue. Warning! GuruFocus has detected 10 Warning Signs with BRSP. Is BRSP fairly valued? Test your thesis with our free DCF calculator. Q: How does the investment landscape in the second quarter compare to the first quarter, and is your pipeline growing? A: Mike Mazzi, CEO: The market is doing well despite a brief pause due to geopolitical issues. Spreads remain tight, and the pipeline looks good with over $300 million in loans in execution. We expect to hit the $3 billion mark mid-year, with significant activity in Texas due to lenders incentivizing borrowers to sell or refinance. Q: Is the San Francisco area performing better due to the AI boom, and how does it affect different asset classes? A: Mike Mazzi, CEO: San Francisco is seeing positive rent growth, particularly in multifamily and office sectors, driven by AI-related demand. The office leasing market is doing better than pre-2019 levels, and the lodging sector is expected to benefit from the city's turnaround and AI boom. Q: Are there any realized losses expected from REO sales and five-rated loan repayments in the second quarter? A: Mike Mazzi, CEO: We are evaluating bids for REO properties, and while we expect to be close to our estimates, some markets, particularly in the southwest, are experiencing softness. We are closely monitoring these areas, especially Arizona, which has been slow to recover. Q: Are you looking to add more industrial and hotel loans, or were recent loans in these sectors one-off opportunities? A: Andy Witt, President and COO: We are open to more industrial loans but will be selective in the hotel space. Our primary focus remains on multifamily investments, although we are exploring opportunities in other asset classes. Q: What is the trade-off between stock repurchase and deploying capital into new originations? A: Mike Mazzi, CEO: While we have conducted buybacks in the past, our focus is on making new loans, which we believe is more beneficial for long-term shareholder value. The current stock price and dividend yield make new loan originations more attractive. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Wednesday, October 29, 2025 at 10:00 a.m. ET Chief Executive Officer — Michael Mazzei President and Chief Operating Officer — Andrew Witt Chief Financial Officer — Frank Saracino General Counsel and Secretary — David Palamé Need a quote from a Motley Fool analyst? Email [email protected] David Palamé: Good morning, and welcome to BrightSpire Capital's Third Quarter 2025 Earnings Conference Call. We will refer to BrightSpire Capital as BrightSpire, BRSP, or 'the company' throughout this call. Speaking on the call today are the company's Chief Executive Officer, Mike Mazzei; President and Chief Operating Officer, Andy Witt; and Chief Financial Officer, Frank Saracino. Before I hand the call over, please note that on this call, certain information presented contains forward-looking statements. These statements, which are based on management's current expectations, are subject to risks, uncertainties and assumptions. Potential risks and uncertainties could cause the company's business and financial results to differ materially. For a discussion of risks that could affect results, please see the Risk Factors section of our most recent 10-K and other risk factors and forward-looking statements in the company's current and periodic reports filed with the SEC from time to time. All information discussed on this call is as of today, October 29, 2025, and the company does not intend and undertakes no duty to update for future events or circumstances. In addition, certain financial information presented on this call represents non-GAAP financial measures. The company's earnings release and supplemental presentation, which was released yesterday afternoon and is available on the company's website, presents reconciliations to the appropriate GAAP measures and an explanation of why the company believes such non-GAAP financial measures are useful to investors. Before I turn the call over to Mike, I will provide a brief recap on our results. The company reported third quarter GAAP net income attributable to common stockholders of $1 million or $0.01 per share, distributable earnings of $3.3 million or $0.03 per share, and adjusted distributable earnings of $21.2 million or $0.16 per share. Current liquidity stands at $280 million, of which $87 million is unrestricted cash. The company also reported GAAP net book value of $7.53 per share and undepreciated book value of $8.68 per share as of September 30, 2025. Finally, during this call, management may refer to distributable earnings as DE. With that, I would now like to turn the call over to Mike. Michael Mazzei: Thanks, David, and welcome to our third quarter earnings call. We're pleased to report the strong results achieved during this past quarter and are particularly encouraged by the overall trajectory of the business. In the third quarter, book value remained stable, and we made considerable progress toward established objectives, which include resolving watch list loans and REO properties, and rebuilding our loan portfolio and maintaining dividend coverage. Our adjusted DE continued to cover our dividend, but we also achieved net positive loan originations for the second consecutive quarter, and also saw a meaningful growth in our origination pipeline. Together, these results demonstrate clear progress toward transforming our loan book and growing earnings. Also of note, we are observing continued improvements in the overall commercial real estate markets. Credit and lending spreads continue to tighten, and this has contributed to a steady increase in loan inquiry. Additionally, both the CMBS and CLO markets remain very highly active, showing solid new issuance growth. Coupled with a more favorable interest rate environment, these trends should create a supportive backdrop for increased loan originations. Along these lines, during the third quarter and through the first half of October, we originated 10 loans totaling $224 million. We have currently 7 loans in execution for an additional $242 million. To date, this will bring our total new closed and in execution commitments to $741 million since resuming loan originations late last year. Given this progress, we have already begun the process of preparing for our next CLO securitization. An essential part of our progress this quarter is due to meaningful developments in our watch list, as several of these borrowers have now commenced a formal sales process on the underlying properties. As a reminder, we started 2025 with a watch list of $411 million, which has now been reduced to $182 million. If successful, these borrower-led sales will substantially reduce our remaining watchlist exposure. Turning to the REO portfolio and our largest exposure, the Signia Hotel property, we continue to make gradual improvements while we address deferred maintenance and CapEx needs at the asset. Given the upcoming sporting events calendar, we expect to hold this property through the first half of 2026. Additionally, we currently have 2 REO office properties in the market for sale, and we have a specific timetable to market additional REO assets early next year. Our timetable for sale of REO assets will generate liquidity for future loan originations and drive the loan book growth toward our targeted portfolio of approximately $3.5 billion. The execution of this strategy will strengthen earnings and improve positive dividend coverage in 2026. Furthermore, we're also seeing a continued gradual reduction in our office loan portfolio, which now stands at $653 million, down from $769 million at the start of 2025. We expect an additional reduction as some borrowers have indicated intentions to sell properties in this improving market. The CMBS market has also accepted more office loans over this past year. In closing, we believe the coming quarters will be among our most productive. With each passing quarter, the combination of new loan originations, steady progress on watch list loans and the resolution of REO assets will drive the transformation of our portfolio and improve earnings. With that, I will now turn the call over to our President, Andy Witt. Andy? Andrew Witt: Thank you, Mike. I'll start by walking through the details of our net positive originations activity and then provide further updates on watch list loans and REO assets. During the third quarter, capital deployment consisted of $146 million of total commitments across 7 multifamily loans, as well as future fundings of $11 million, resulting in total deployment of $157 million. As for repayments, 2 loans paid off in full, 1 hospitality loan and 1 office loan for total proceeds of $88 million. Additionally, there were 5 partial paydowns during the quarter, totaling $9 million, resulting in $97 million in total repayments. For the second quarter in a row, we've achieved net positive loan originations, a trend we expect to continue with increasing momentum over the next several quarters. Currently, the loan portfolio stands at $2.4 billion across 85 loans, with an average loan balance of $28 million and a risk ranking of 3.1. Our average loan balance decreased year-over-year as a result of a deliberate strategy to reduce concentration risk and diversify the portfolio. During the quarter and subsequently, we continue to make progress on the watch list loans. The watch list portion of the loan portfolio currently stands at 8%, comprised of 5 loans for a total gross book value of $182 million. Reducing total watch list exposure remains a priority as we are working actively with the borrowers to effectuate resolutions. In a number of cases, the borrowers are in the process of actively marketing the underlying properties for sale. The reduction in watch list loan exposure quarter-over-quarter was driven by the removal of the Oregon office loan, which we took ownership of during the quarter. The property is currently in the market for sale. During the third quarter, one Austin, Texas multifamily loan was added to the watch list with a gross carrying value of $23 million. Performance at the property deteriorated primarily due to the insufficient funds to complete the property stabilization. As for our REO portfolio, it stands at $364 million of undepreciated gross book value across 8 properties. We completed the sale of the Phoenix, Arizona multifamily property in the third quarter, substantially in line with carrying value. Additionally, we are currently in the market with 2 office properties, including the Oregon office property previously mentioned. REO office exposure is comprised of 3 properties for a cumulative undepreciated book value of $81 million or 22% of the REO portfolio. We continue to make progress on our 4 multifamily properties within the REO portfolio. We are actively executing on value-add business plans with respect to 3 of the properties. These plans contemplate repositioning the properties, leasing them up and then taking them to market for sale. In each case, we are making progress toward that end and expect to be in the market with 2 of the 3 properties in Q1 2026, with the remaining property to follow in the summer of 2026. The fourth multifamily property is a predevelopment site in Santa Clara, California, which we intend to hold for the time being. As we've discussed before, the broader Bay Area is seeing a resurgence in demand, and we anticipate this property will benefit as a result of the favorable market tailwinds. Multifamily REO exposure stands at $147 million or 40% of the REO portfolio. Lastly, as Mike highlighted, we continue to make progress on the $137 million San Jose, California hotel, which comprises the remaining 38% of the REO exposure. In closing, we are encouraged by the momentum generated during the third quarter and look forward to sustaining and increasing that momentum on the originations and asset management front as we head into 2026. With that, I will turn the call over to Frank Saracino, our Chief Financial Officer. Frank? Frank Saracino: Thank you, Andy, and good morning, everyone. For the third quarter, we generated adjusted DE of $21.2 million or $0.16 per share. Third quarter DE was $3.3 million or $0.03 per share. DE includes specific reserves of approximately $18 million. Additionally, we reported total company GAAP net income of $1 million or $0.01 per share. First, a reminder regarding one of our legacy office equity investments. Earlier this year, we defaulted on the CMBS financing for our multi-tenanted office equity property located just outside Pittsburgh. During the third quarter, a receiver was appointed and as a result, we deconsolidated the assets and liabilities from the company's consolidated balance sheet. With that, we reported a GAAP impairment of $2.5 million related to the property. However, the impairment charge had no impact on our undepreciated book value as we had previously written the investment down to 0 over a year ago. Quarter-over-quarter, total company GAAP net book value decreased to $7.53 from $7.65 per share in the second quarter. We reported undepreciated book value of $8.68 versus $8.75 per share in the second quarter, slightly down quarter-over-quarter. Now I would like to quickly bridge the third quarter adjusted distributable earnings of $0.16 versus the $0.18 recorded in the second quarter. The change was primarily driven by the lender foreclosure of the Equinor Norway net lease asset, which occurred in 2Q, and the deconsolidation of the multi-tenanted office equity property previously highlighted. This was partially offset by positive net loan originations. Looking at reserves. During 3Q, we recorded a specific CECL reserve of approximately $18 million related to taking ownership of the property associated with the Oregon office loan, which Andy discussed earlier. As the loan was resolved during the quarter, we charged off the reserves. Our general CECL provision decreased to $127 million or 517 basis points on total loan commitments versus $137 million or 549 basis points reported in the second quarter. Our debt-to-assets ratio is 63% and our debt-to-equity ratio is 1.9x. Lastly, our liquidity as of today stands at approximately $280 million. This comprises $87 million of current cash, $165 million under our credit facility, and approximately $28 million of approved but undrawn borrowings available on our warehouse lines. This concludes our prepared remarks. And with that, let's open it up for questions. Operator? Operator: [Operator Instructions] And the first question will be from Jason Weaver from JonesTrading. Jason Weaver: Congrats on the quarter. First, I wonder if you could give me some update on your liquidity position, post quarter-to-date originations and those what you expect to -- the ones that are in execution that you expect to close? And if you're placing those recent loans into the 2024 CLO or holding those online? Andrew Witt: Those are being held on balance sheet. Liquidity is hovering around $100 million in cash. And as we said in the prepared remarks, much of the future originations that we're doing will come out of the resolution of assets, and the equity repatriation for assets that are either largely unencumbered -- totally unencumbered or largely unencumbered today. So from a liquidity standpoint, we plan on a lot of the fundings coming out of REO resolutions. Jason Weaver: Then just help me think about the pace of 4Q originations through the next couple of months. I know you put up the $320 million number, and I guess that's about $308 million net. But for November and December, do you expect that to be more muted or similarly active, just due to the sort of dovish posture and the progress we've seen on rate? Andrew Witt: Similarly active, because the pipeline has been gaining some momentum, if you will, and it's been increasing over time. I don't want to jinx this, but it's a pretty good environment. We're seeing a lot more loan inquiry quarter-over-quarter. And so to kind of go to the end result here, what we need to do for 2026, and I've said this on the previous earnings call, we need to get to a loan book of about $3.5 billion. And net-net, between now and the end of next year, we need to do well over $1 billion in originations. Gross, we need to do about $1 billion -- close to $1.5 billion in originations gross to offset any payments that we have. So you're looking at something that is probably like $300 million a quarter to really keep abreast of that. Jason Weaver: I think you're on your way. Operator: Our next question will be from Chris Muller from Citizens Capital Markets. Christopher Muller: Congrats on a solid quarter. So I want to start and ask about your net lease portfolio. We just saw Blackstone and Starwood jump into that space. So I wanted to ask how you guys are thinking about that space? And is this an area that there could be some growth for BrightSpire? Or are you happy with the assets you have there already? Michael Mazzei: I'd say we're happy with the assets we have right now. We have not explored going into the triple net market. I don't think we have a necessarily competitive advantage in that market. So I think from a net lease standpoint, we'll deal with the assets we have now. If we can get an interesting bid on some of these assets, we might consider selling them. But right now, no change in plan. Christopher Muller: Then I guess on overall sentiment in the market, do you expect to see a boost in demand if we get another cut from the Fed today? Or does that more just help continue to close that gap between buyers and sellers? Michael Mazzei: It's absolutely improving. The commentary we had yesterday, some of our originators were very pleased to see the price of caps going down in their discussions with borrowers. It is a pretty solid environment. You've got a dovish Fed. The long end seems to be coming down because of maybe the employment numbers. So you have a sub-4% 10-year treasury. I think you've also -- you've got some lenders that are getting exhausted. And I think they've gone on several years with loan modifications, us included. And we're encouraging borrowers to either refinance or sell the properties, which is why you saw the commentary around some of the borrowers on our watch list now have those properties up for sale. And you're seeing that across the board. So it's a pretty Goldilocks environment right now. You've got still a low level of construction lending, which will hopefully help absorption late 2026, early 2027. Interest rates lower. The negative carry on these assets because the cap rates are still 5% for multifamily, in some cases, even a little less. So that negative carry environment is becoming less. So it's making transaction sales volume increase. So we're starting to see a big uptick in that, and we're starting to see an uptick in acquisition financing versus in the first half of the year, first quarter, substantially refi. So we're seeing a lot more requests for acquisition financing than we have earlier in the year. Christopher Muller: Congrats again on a solid quarter and some great progress. Operator: The next question is from Tom Catherwood from BTIG. William Catherwood: So just wanted to pivot back to the answer on originations. Andy, obviously, you had mentioned out originating your repayments, and that's been the second quarter in a row you've done it. But because of REO, the loan portfolio has contracted over the last 2 quarters. With that $320 million of loans that you've talked about closed or in closing in 4Q, are we at the point where you think we can grow the loan book going forward? Or with other potential REOs in the pipeline, could it be 2 steps forward, 1 step back? What are your thoughts as far as getting beyond the takeback period so that the portfolio can get up to $3.5 billion that you're targeting? Michael Mazzei: Andy, do you want to jump on that? Andrew Witt: Yes. So, I think we're really at that point right now. So we've been increasing the momentum of our loan originations. The pipeline is growing, and we are pushing things through REO sale. And so that will be a little bit of a headwind. But it's really that capital that is the fuel for building the loan book. So I think you will see the loan book increase. It's increased kind of quarter-over-quarter for the last couple of quarters when you're just looking at the loan book. And so what you'll see in the future quarters is increased rate of growth, moving towards that $3.5 billion number. William Catherwood: Andy, then in terms of your San Jose hotel, I was in the market there in September and walked the property. It looked great. It had a tech conference going on, so it was crowded. The question I have for you, though, is kind of with that packed event schedule that you mentioned for 2026 in San Jose, what could the asset contribute towards distributable earnings as occupancy ramps up? I mean this is a high operating leverage business. To us, it seems like there could be a material contribution. What are you underwriting for 2026? Michael Mazzei: The NOI, it's still about -- it's still going to be a sub-$10 million NOI. For this year, we're coming in below that. So next year, as we said, we have some significant events occurring in the first half of the year. We also have, as we said in the prepared remarks, some deferred maintenance elevators, lobby work that needed to be done and some CapEx that needs to go into the hotel. So that dovetails well into that timeline. We have to put these in place, because if we sold the asset, any buyer would look at those and say, elevators need to be redone, and we're taking that off the purchase price. So we need to get that done. Those have been needing to be done for quite a while. But yes, our hope is that we continue to see uplift in that Bay Area. You just saw the hotels in San Francisco, 2 large 3,000 collective rooms in these 2 hotels traded. We are seeing a lot of interest in the -- generally in the Bay Area and in San Francisco. The one caution I would have is that there is a concern that if San Francisco really is coming back the way people are saying, that there may be some latent group demand to go to San Francisco. So we really need to observe that. But in terms of contribution, I would say roughly a $10 million number for NOI would get you within a stone’s throw where we think we might end up for 2026. We haven't gotten a budget yet for that year. We're running slightly behind that for 2025. Operator: [Operator Instructions] The next question is from Gaurav Mehta Alliance Global Partners. Gaurav Mehta: I think in your prepared remarks, you talked about preparing for a new CLO issuance. Can you provide some details on the size and timing of the expected issuance? Michael Mazzei: Thank you for the question. Actually, because it is so close, we actually can't comment on it. It would be inappropriate. But I would say it would be within the context of what you're seeing in the CLO market. Gaurav Mehta: As a follow-up, I think in your prepared remarks, you talked about 2 office properties listed for sale. I think one of them was Oregon. Can you provide some detail on which is the second office property you're looking to sell? Michael Mazzei: It is one of the Long Island City properties, and we are in the process of soliciting offers for that as we speak. Operator: Ladies and gentlemen, this concludes today's question-and-answer session. I would like to turn the conference back to Mike Mazzei for any closing remarks. Michael Mazzei: Thank you. Well, in summary, we covered our dividend. We had positive net loan originations for the second quarter in a row. Our pipeline is improving. As we mentioned, we are in the process of embarking on a new CLO. And we anticipate, as we said in the prepared remarks, substantial progress on our watch list and REO in the coming 2 quarters. So we look forward to that. With that, I would like to thank you for joining us on the call today, and we will see you in February. Operator: Thank you, sir. The conference has concluded. Thank you for joining today's presentation. You may now disconnect. Before you buy stock in BrightSpire Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BrightSpire Capital wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. BrightSpire (BRSP) Q3 2025 Earnings Transcript was originally published by The Motley Fool