BrightSpire Capital, Inc. Announces Fourth Quarter & Full Year 2024 Financial Results

Rhea-AI Summary

BrightSpire Capital (NYSE: BRSP) reported its Q4 and full-year 2024 financial results. The company posted a Q4 GAAP net loss of ($19.7) million, or ($0.16) per share, with Distributable Earnings of $13.7 million ($0.11 per share) and Adjusted Distributable Earnings of $23.7 million ($0.18 per share).

For the full year 2024, BRSP recorded a GAAP net loss of ($132.0) million, or ($1.05) per share, Distributable Earnings of $71.2 million ($0.55 per share), and Adjusted Distributable Earnings of $109.2 million ($0.84 per share). The company reported a GAAP net book value of $8.08 per share and undepreciated book value of $8.89 per share as of December 31, 2024.

The Board declared a quarterly cash dividend of $0.16 per share for Q4 2024, paid on January 15, 2025.

Positive

• Maintained quarterly dividend payment of $0.16 per share
• Q4 Adjusted Distributable Earnings of $23.7 million ($0.18 per share)
• New loan originations and successful watchlist resolutions during the quarter

Negative

• Q4 GAAP net loss of $19.7 million ($0.16 per share)
• Full-year 2024 GAAP net loss of $132.0 million ($1.05 per share)
• Ongoing challenges with watchlist and REO assets requiring resolution

Insights

Financial Analyst

BrightSpire Capital's Q4 and FY2024 results paint a complex picture of a commercial real estate lender navigating challenging market conditions. The significant GAAP net loss of $132.0 million for 2024 reflects ongoing pressures in the commercial real estate sector, particularly in office and retail spaces. However, the company's ability to generate $71.2 million in Distributable Earnings demonstrates the underlying strength of its core lending operations.

The divergence between GAAP losses and Distributable Earnings is particularly noteworthy, suggesting potential mark-to-market adjustments and non-cash impairments rather than fundamental operational issues. The company's focus on watchlist resolution and new loan originations indicates a proactive approach to portfolio management, important in the current market environment where property valuations remain under pressure.

The maintenance of the $0.16 quarterly dividend, representing an annualized yield of approximately 10.7% based on current market price, suggests management's confidence in the company's liquidity position and cash flow generation capabilities. However, investors should note that the current trading price ($5.97) represents a significant discount to both GAAP book value ($8.08) and undepreciated book value ($8.89), reflecting market concerns about commercial real estate exposure and potential future asset quality deterioration.

The company's strategic focus on first mortgage loans as their primary investment strategy, combined with their internally managed structure, positions them to potentially benefit from market dislocations while maintaining cost efficiency. However, the success of this strategy will largely depend on their ability to execute on watchlist resolutions and maintain disciplined underwriting standards in new originations.

NEW YORK--(BUSINESS WIRE)-- BrightSpire Capital, Inc. (NYSE: BRSP) (“BrightSpire Capital” or the “Company”) today announced its financial results for the fourth quarter and full year ended December 31, 2024 and certain updates. The Company reported fourth quarter 2024 GAAP net loss attributable to common stockholders of ($19.7) million, or ($0.16) per share, Distributable Earnings of $13.7 million, or $0.11 per share, and Adjusted Distributable Earnings of $23.7 million, or $0.18 per share. For the full year 2024, the Company reported GAAP net loss attributable to common stockholders of ($132.0) million, or ($1.05) per share, Distributable Earnings of $71.2 million, or $0.55 per share, and Adjusted Distributable Earnings of $109.2 million, or $0.84 per share. The Company reported GAAP net book value of $8.08 per share and undepreciated book value of $8.89 per share as of December 31, 2024.

Michael J. Mazzei, Chief Executive Officer, commented, “The Company had a productive quarter and year highlighted by new loan originations and watchlist resolutions, all while continuing to maintain liquidity. Looking ahead, we expect to continue to resolve watchlist and REO assets and grow the portfolio and earnings through new loan originations.”

Supplemental Financial Report

A Fourth Quarter 2024 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 Fourth Quarter 2024 Supplemental Financial Report and is available on our website at www.brightspire.com.

Fourth Quarter 2024 Conference Call

The Company will conduct a conference call to discuss the results on Wednesday, February 19, 2025, at 10:00 a.m. ET / 7:00 a.m. PT. To participate in the event by telephone, please dial (877) 300-8521 ten minutes prior to the start time (to allow time for registration). International callers should dial (412) 317-6026. 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 February 19, 2025, at 12:00 p.m. ET / 9:00 a.m. PT, through February 26, 2025, at 11:59 p.m. ET / 8:59 p.m. PT. To access the replay, dial (844) 512-2921 and use conference ID code 10195090. International callers should dial (412) 317-6671 and enter the same conference ID.

Dividend Announcement

On December 16, 2024, 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 fourth quarter of 2024, which was paid on January 15, 2025, to common stockholders of record as of December 31, 2024.

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 and net leased properties 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, 2023, 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, credit spreads and the transition from LIBOR to SOFR, 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; 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, 2023, 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.

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Investor Relations

BrightSpire Capital, Inc.

Addo Investor Relations

Anne McGuinness

310-829-5400

brsp@addo.com

Source: BrightSpire Capital, Inc.

FAQ

What were BrightSpire Capital's (BRSP) Q4 2024 earnings per share?

BRSP reported a Q4 2024 GAAP net loss of $0.16 per share, Distributable Earnings of $0.11 per share, and Adjusted Distributable Earnings of $0.18 per share.

What is BRSP's dividend payment for Q4 2024?

BrightSpire Capital declared a quarterly cash dividend of $0.16 per share for Q4 2024, which was paid on January 15, 2025.

What was BrightSpire Capital's book value per share as of December 31, 2024?

BRSP reported a GAAP net book value of $8.08 per share and undepreciated book value of $8.89 per share as of December 31, 2024.

How did BRSP perform for the full year 2024?

For full year 2024, BRSP reported a GAAP net loss of $132.0 million ($1.05 per share), Distributable Earnings of $71.2 million ($0.55 per share), and Adjusted Distributable Earnings of $109.2 million ($0.84 per share).