BrightSpire Capital, Inc. (BRSP) | Investment Case

1. Company Snapshot

1.a. Company Description

BrightSpire Capital, Inc.operates as a commercial real estate (CRE) credit real estate investment trust in the United States.It focuses on originating, acquiring, financing, and managing a portfolio of CRE senior mortgage loans, mezzanine loans, preferred equity, debt securities, and net leased properties.

The company qualifies as a real estate investment trust for federal income tax purposes.The company was formerly known as Colony Credit Real Estate, Inc.and changed its name to BrightSpire Capital, Inc.

in June 2021.BrightSpire Capital, Inc.was incorporated in 2017 and is headquartered in New York, New York.

Show Full description

1.b. Last Insights on BRSP

BrightSpire Capital's recent performance was negatively driven by a decline in earnings, as its Q4 2024 earnings of $0.18 per share missed the mark compared to its 5-year average. The company's 11% dividend yield, paid quarterly, may not be enough to offset concerns over its -15.28% 5-year dividend growth rate and a negative 5-year total return of -28.5%. The company's decision to ramp up its portfolio may not be enough to boost investor confidence, given its recent struggles.

1.c. Company Highlights

Last Price	5.74
Change Percentage	1.41%
Open	5.62
Previous Close	5.66
Market Cap ( Millions)	745
Volume	408209
Year High	6.45
Year Low	4.16
M A 50	5.38
M A 200	5.38

FCF Yield	-7.82%
Dividend Yield	11.15%
ROE	-3.60%
Debt / Equity	42.52%
Net Debt / EBIDTA	214.61%
Price To Book	0.75
Price Earnings Ratio	-19.94
Price To FCF	-12.78
Price To sales	3.02
EV / EBITDA	7.44

2. BrightSpire Capital's Q3 2025 Earnings: A Step in the Right Direction

BrightSpire Capital reported a GAAP net income attributable to common stockholders of $1 million or $0.01 per share, alongside distributable earnings of $3.3 million or $0.03 per share, and adjusted distributable earnings of $21.2 million or $0.16 per share, which met analysts' estimates. The company's adjusted distributable earnings continued to cover its dividend, a positive sign for investors. The current liquidity stands at $280 million, with $87 million being unrestricted cash, indicating a decent cushion for future investments.

Publication Date: Nov -30

                                    📋 Highlights
                                    Distributable Earnings Coverage::
                                                Adjusted distributable earnings of $21.2M ($0.16/share) fully covered the dividend, up from prior quarters.
Loan Origination Momentum::
                                                Net positive loan originations for the second consecutive quarter, with $224M originated and $242M in execution, totaling $741M since resuming originations.
Liquidity Position::
                                                $280M liquidity, including $87M unrestricted cash, to fund future originations via asset resolutions and equity repatriation.
Capital Deployment::
                                                $157M deployed in Q3 across 7 multifamily loans and future fundings, reflecting active portfolio growth.

                                

Loan Originations and Pipeline Growth

The company achieved net positive loan originations for the second consecutive quarter, with 10 loans totaling $224 million originated during the quarter, and an additional 7 loans in execution worth $242 million. This brings the total new closed and in execution commitments to $741 million since resuming loan originations late last year. As Mike Mazzei mentioned, "We've achieved net positive loan originations for the second quarter in a row, a trend we expect to continue with increasing momentum over the next several quarters." This growth in loan originations is a positive indicator for the company's future performance.

Capital Deployment and Liquidity

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. The company's liquidity is around $100 million in cash, with much of the future originations expected to come from the resolution of assets and equity repatriation. As Andrew Witt stated, "Liquidity is hovering around $100 million in cash... 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 or largely unencumbered today."

Valuation and Dividend Yield

With a P/B Ratio of 0.73 and a Dividend Yield of 11.43%, the stock appears to be attractively valued, especially considering the company's ability to cover its dividend. The ROE is negative at -3.6%, but this is expected to improve as the company continues to grow its loan book and resolve watch list loans and REO properties. Analysts estimate next year's revenue growth at -3.2%, but with the company's improving pipeline and increasing momentum in loan originations, there is potential for a positive surprise.

Outlook and Challenges

The company's San Jose hotel is expected to contribute towards distributable earnings as occupancy ramps up, with a packed event schedule in 2026. However, NOI is expected to remain sub-$10 million for next year, with significant events and deferred maintenance to be addressed. The company is also listing two office properties for sale, indicating a proactive approach to managing its assets. Overall, BrightSpire Capital's improving loan origination pipeline, decent liquidity, and attractive valuation make it a stock worth watching.

3. NewsRoom

BrightSpire Capital (NYSE:BRSP) versus Orchid Island Capital (NYSE:ORC) Head-To-Head Analysis

Dec -04

Source: defenseworld.net

Shopoff Realty Investments Secures $17.815 Million Refinance for Cierra Apartments in Whittier, CA

Dec -02

Source: prnewswire.com

Geode Capital Management LLC Buys 25,841 Shares of BrightSpire Capital, Inc. $BRSP

Dec -02

Source: defenseworld.net

Winners And Losers Of REIT Earnings Season

Nov -14

Source: seekingalpha.com

Back In The Saddle: Buy These 2 REITs Before Aggressive Growth Starts

Nov -07

Source: seekingalpha.com

BrightSpire Capital, Inc. $BRSP Position Boosted by State of New Jersey Common Pension Fund D

Nov -02

Source: defenseworld.net

Focus Partners Advisor Solutions LLC Buys Shares of 15,980 BrightSpire Capital, Inc. $BRSP

Nov -02

Source: defenseworld.net

BrightSpire Capital, Inc. (BRSP) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.98%)

6. Segments

Senior and Mezzanine Loans and Preferred Equity

Expected Growth: 7.85%

BrightSpire Capital's 7.85% growth is driven by increasing demand for senior and mezzanine loans, fueled by a strong economy and low interest rates. Preferred equity investments also contribute to growth, as investors seek higher yields. The company's diversified portfolio, strong credit underwriting, and efficient capital structure further support its growth momentum.

Net Leased and Other Real Estate

Expected Growth: 8.85%

BrightSpire Capital's Net Leased and Other Real Estate segment growth of 8.85% is driven by increasing demand for industrial and logistics properties, expansion of e-commerce, and rising investor appetite for stable income-generating assets. Additionally, strategic acquisitions, strong property management, and favorable interest rates contribute to the segment's growth.

Corporate and Other Segment

Expected Growth: 4.65%

BrightSpire Capital's Corporate and Other Segment growth of 4.65% is driven by increasing investment management fees, expansion of its commercial real estate debt platform, and growing demand for its mortgage loan products. Additionally, the company's strategic acquisitions and partnerships have contributed to its growth, along with a favorable interest rate environment and a strong balance sheet.

7. Detailed Products

Commercial Mortgage Loans

BrightSpire Capital, Inc. offers commercial mortgage loans to investors, providing financing solutions for commercial properties, including office buildings, apartments, and retail centers.

Bridge Loans

BrightSpire Capital, Inc. offers bridge loans to investors, providing short-term financing solutions for commercial properties, including acquisition, renovation, and stabilization.

Construction Loans

BrightSpire Capital, Inc. offers construction loans to investors, providing financing solutions for ground-up construction, renovation, and redevelopment projects.

Mezzanine Debt

BrightSpire Capital, Inc. offers mezzanine debt to investors, providing financing solutions for commercial properties, including subordinate debt and equity investments.

Preferred Equity

BrightSpire Capital, Inc. offers preferred equity to investors, providing financing solutions for commercial properties, including subordinate equity investments.

8. BrightSpire Capital, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for BrightSpire Capital, Inc. is medium due to the presence of alternative investment options for clients.

Bargaining Power Of Customers

The bargaining power of customers is low for BrightSpire Capital, Inc. as clients have limited negotiating power due to the company's specialized investment services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for BrightSpire Capital, Inc. as the company relies on a diverse range of suppliers for its operations.

Threat Of New Entrants

The threat of new entrants is high for BrightSpire Capital, Inc. due to the relatively low barriers to entry in the investment management industry.

Intensity Of Rivalry

The intensity of rivalry is high for BrightSpire Capital, Inc. due to the highly competitive nature of the investment management industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	72.63%
Debt Cost	3.95%
Equity Weight	27.37%
Equity Cost	13.60%
WACC	6.59%
Leverage	265.33%

11. Quality Control: BrightSpire Capital, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Modiv

A-Score: 7.1/10

Value: 6.6

Growth: 7.8

Quality: 4.7

Yield: 10.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

Gladstone Commercial

A-Score: 6.4/10

Value: 5.3

Growth: 4.7

Quality: 6.9

Yield: 10.0

Momentum: 2.0

Volatility: 9.7

1-Year Total Return ->

BrightSpire Capital

A-Score: 6.3/10

Value: 6.8

Growth: 4.6

Quality: 3.9

Yield: 10.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

Urban Edge

A-Score: 6.1/10

Value: 4.9

Growth: 3.1

Quality: 7.8

Yield: 8.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

Armada Hoffler Properties

A-Score: 6.0/10

Value: 6.5

Growth: 5.7

Quality: 4.7

Yield: 10.0

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

Presidio Property Trust

A-Score: 2.8/10

Value: 5.6

Growth: 0.8

Quality: 2.6

Yield: 5.0

Momentum: 3.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-6.00%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.59%

BrightSpire Capital, Inc. - US10949T1097

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BRSP

1.c. Company Highlights

Average Yield

Average Quality

Fairly Valued

Earnings Miss

Revenues Beats

Earnings Beats

Weak Momentum

Stable Momentum

Cheaper

Medium Volatility

Lower Quality

Revenues Miss

2. BrightSpire Capital's Q3 2025 Earnings: A Step in the Right Direction

Loan Originations and Pipeline Growth

Capital Deployment and Liquidity

Valuation and Dividend Yield

Outlook and Challenges

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.98%)

6. Segments

Senior and Mezzanine Loans and Preferred Equity

Expected Growth: 7.85%

Net Leased and Other Real Estate

Expected Growth: 8.85%

Corporate and Other Segment

Expected Growth: 4.65%

7. Detailed Products

Commercial Mortgage Loans

Bridge Loans

Construction Loans

Mezzanine Debt

Preferred Equity

8. BrightSpire Capital, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: BrightSpire Capital, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.74$

Current Price

5.74$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA