BrightSpire Capital, Inc. (NYSE: BRSP) (“BrightSpire Capital” or
the “Company”) today announced its financial results for the second
quarter 2024 and certain updates. The Company reported second
quarter 2024 GAAP net loss attributable to common stockholders of
($67.9) million, or ($0.53) per share, Distributable Earnings of
$17.0 million, or $0.13 per share, and Adjusted Distributable
Earnings of $28.8 million, or $0.22 per share. The Company reported
GAAP net book value of $8.41 per share and undepreciated book value
of $9.08 per share as of June 30, 2024.
In addition, the Board of Directors of BrightSpire Capital
declared a dividend of $0.16 per share of Class A common stock with
respect to the third quarter of 2024. The dividend is payable on
October 15, 2024, to stockholders of record as of September 30,
2024.
Michael J. Mazzei, Chief Executive Officer, commented, “The
reduction in our book value this past quarter was largely driven by
legacy office equity investments. Our watchlist has been stable
quarter over quarter and we have gained enough visibility in
resolutions to commence lending activities. However, the loss of
cash earnings from these legacy equity investments is more near
term versus our future loan origination timeline. Therefore, in
planning for the long term, we are reducing the dividend through
this reinvestment period.”
Supplemental Financial
Report
A Second 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 Second Quarter 2024
Supplemental Financial Report and is available on our website at
www.brightspire.com.
Second Quarter 2024 Conference
Call
The Company will conduct a conference call to discuss the
results on Wednesday, July 31, 2024, at 10:00 a.m. ET / 7:00 a.m.
PT. To participate in the event by telephone, please dial (877)
407-0784 ten minutes prior to the start time (to allow time for
registration). International callers should dial (201) 689-8560.
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 31, 2024, at 12:00 p.m. ET / 9:00
a.m. PT, through August 7, 2024, at 11:59 p.m. ET / 8:59 p.m. PT.
To access the replay, dial (844) 512-2921 and use conference ID
code 13746975. International callers should dial (412) 317-6671 and
enter the same conference ID.
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; uncertainties regarding the ongoing impact of the novel
coronavirus (COVID-19) and its adverse impact on the real estate
market, the economy and the Company’s investments, financial
condition and business operation; 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; the fair value of the
Company's investments may be subject to uncertainties (including
impacts associated with accelerating inflationary trends, recent
and potential further interest rate increases, 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 ability to
simplify the portfolio, realize substantial efficiencies as well as
anticipated strategic and financial benefits, including, but not
limited to expected cost savings through the internalization or
expected returns on equity and/or yields on investments; 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; 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; 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
impact of the conflict between Russia and Ukraine, global trade
tensions, and the implementation and expansion of economic and
trade sanctions. 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. Moreover, each of the factors referenced above are
likely to also be impacted directly or indirectly by the ongoing
impact of COVID-19 and investors are cautioned to interpret
substantially all of such statements and risks as being heightened
as a result of the ongoing impact of the COVID-19.
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
BrightSpire Capital (NYSE:BRSP)
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