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BrightSpire Capital
(NYSE:BRSP)
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Rating:51Neutral
Price Target:
$5.00
▼(-4.40% Downside)
Action:Reiterated
Date:07/30/26
The score is held back primarily by weak financial performance (shrinking revenue, still-inconsistent profitability, and meaningful leverage) and a bearish technical setup (trading below major moving averages). Offsetting factors are improving cash generation, a more constructive operational outlook from the earnings call (loan growth/CLO plans and improving watchlist), and a high dividend yield, though dividend coverage and legacy credit/REO execution remain key risks.
Positive Factors
Improving Cash Generation
Sustained positive operating and free cash flow (TTM) indicates the core mortgage lending model is converting earnings into cash despite GAAP losses. Improved cash generation supports dividend funding, debt servicing and capital redeployment into higher-yielding loans over the medium term.
Negative Factors
Elevated Leverage
Meaningful leverage limits balance sheet flexibility and raises refinancing and covenant risks if credit or funding conditions tighten. At sustained high leverage, incremental stress in CRE could amplify losses and constrain the company's ability to pursue opportunistic originations or cover distributions.
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Positive Factors
Negative Factors
Improving Cash Generation
Sustained positive operating and free cash flow (TTM) indicates the core mortgage lending model is converting earnings into cash despite GAAP losses. Improved cash generation supports dividend funding, debt servicing and capital redeployment into higher-yielding loans over the medium term.
Read all positive factors
BrightSpire Capital Key Performance Indicators (KPIs)
Any
Net Income by Segment
Shows after‑tax profit (including non‑operating gains, losses, and impairments) by segment, revealing the true bottom‑line contribution of each business line. Comparing net income to EBIT uncovers one‑time items, tax effects, and credit losses that can mask or amplify recurring performance and help gauge dividend safety and downside risk in credit cycles.
Shows after‑tax profit (including non‑operating gains, losses, and impairments) by segment, revealing the true bottom‑line contribution of each business line. Comparing net income to EBIT uncovers one‑time items, tax effects, and credit losses that can mask or amplify recurring performance and help gauge dividend safety and downside risk in credit cycles.
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The Fly
The FlyBrightSpire Capital (BRSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$631.36M
Dividend Yield12.77%
Average Volume (3M)1.86M
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth-0.14%
EPS Growth-10.71%
CountryUS
Employees47
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)-0.23
Shares Outstanding126,524,180
10 Day Avg. Volume1,223,504
30 Day Avg. Volume1,855,310
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)0.76
Price to Sales (P/S)2.14
P/FCF Ratio9.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$6.40Price Target Upside22.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.61
Revenue Forecast (FY)$255.08M
BrightSpire Capital Business Overview & Revenue Model
Company Description
BrightSpire Capital, Inc. (NYSE: BRSP) is a commercial real estate finance company that originates, acquires, finances, and manages a portfolio of commercial real estate (CRE) debt investments. The company’s core focus is on first-mortgage loans, ...
How the Company Makes Money
BrightSpire Capital primarily makes money by earning net interest income on its commercial real estate debt investments. The company originates or acquires loans (typically first-mortgage loans) and collects contractual interest payments from borr...
BrightSpire Capital Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented notable positive momentum: strong origination activity, a growing pipeline (top-of-funnel +50% YoY), clear targets to grow the loan book to $3.5B and execute a CLO, improving watchlist metrics, and adequate liquidity. Offsetting these positives are persistent legacy credit and REO items, a modest QoQ decline in book value driven by equity compensation, a $2.6M specific reserve/charge-off, regional headwinds in parts of the Sunbelt (notably Arizona), and a shortfall in dividend coverage this quarter (management expects to cover by year-end). On balance, the operational momentum and pipeline progress outweigh the remaining credit and timing risks, but execution on asset dispositions and CLO issuance will be key to realizing the positive outlook.Positive Updates
Loan Origination Momentum and Pipeline
Since reinitiating production closed 37 loans totaling $1.1B plus 9 loans in execution for $283M (combined > $1.4B). Loan book stands at $2.7B across 100 loans with an average loan size of ~$27M. Year-to-date closed or in execution: 17 loans for $594M (14 multifamily). Management expects to cross $3.0B midyear and target $3.5B by year-end.
Negative Updates
Book Value Decline
GAAP net book value decreased QoQ from $7.30 to $7.05 per share (a decline of ~3.4%). Undepreciated book value decreased from $8.44 to $8.24 per share (a decline of ~2.4%), primarily due to equity grants and first-quarter PSU vesting.
Read all updates
Q1-2026 Updates
Positive
Negative
Loan Origination Momentum and Pipeline
Since reinitiating production closed 37 loans totaling $1.1B plus 9 loans in execution for $283M (combined > $1.4B). Loan book stands at $2.7B across 100 loans with an average loan size of ~$27M. Year-to-date closed or in execution: 17 loans for $594M (14 multifamily). Management expects to cross $3.0B midyear and target $3.5B by year-end.
Read all positive updates
Company Guidance
Management guided to grow the loan book to $3.5 billion by year‑end (crossing ~$3.0 billion roughly midyear) and to execute a fifth CLO in H2 to drive dividend coverage by year‑end, with a priority to redeploy capital from the watchlist and REO into new loans. At quarter end the loan book was $2.7 billion across 100 loans (avg. loan ~$27M, risk rank 3.1, office exposure just over 20%); since restarting production the company closed 37 loans totaling $1.1B with 9 more in execution for $283M (combined ≈$1.4B), and this year has 17 loans closed/in execution totaling $594M (14 multifamily) amid a $29B top‑of‑funnel (+50% YoY). Portfolio cleanup targets include reducing watchlist (recently $166M or 6% of portfolio; current 4 loans $134M) to about $67M after two expected Q2 sales, resolving REO of six positions ($336M gross carrying value; San Jose hotel $143M = 43% of REO), and continued office reductions; liquidity is ~$206M (cash $58M, $120M revolver availability, ~$28M undrawn warehouse), CECL general reserve ~$87M (306 bps on commitments) plus a ~$2.6M specific reserve, debt/assets 68%, debt/equity 2.4x, GAAP net income $4.8M ($0.03/sh), DE $15.6M ($0.12/sh), adjusted DE $18.2M ($0.14/sh), GAAP NBV $7.05 and undepreciated BV $8.24; management also noted multifamily pricing around the mid‑200s and CRE CLO AAA talk near 135bps.BrightSpire Capital Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
42
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 330.31M | 331.60M | 347.22M | 392.11M | 358.54M | 323.09M |
| Gross Profit | 142.82M | 164.60M | 159.42M | 192.16M | 193.07M | 191.86M |
| EBITDA | 76.13M | 111.97M | -66.81M | 35.91M | 112.52M | 101.59M |
| Net Income | -26.86M | -31.15M | -131.98M | -15.55M | 45.79M | -101.05M |
Balance Sheet | ||||||
| Total Assets | 3.75B | 3.56B | 3.72B | 4.20B | 4.75B | 5.64B |
| Cash, Cash Equivalents and Short-Term Investments | 169.72M | 66.79M | 302.17M | 257.51M | 306.32M | 259.72M |
| Total Debt | 2.76B | 2.49B | 2.52B | 3.66B | 3.19B | 4.87B |
| Total Liabilities | 2.90B | 2.64B | 2.68B | 2.92B | 3.36B | 4.15B |
| Stockholders Equity | 862.98M | 938.43M | 1.05B | 1.28B | 1.39B | 1.46B |
Cash Flow | ||||||
| Free Cash Flow | 85.44M | 73.03M | 103.41M | 137.62M | 125.28M | -21.27M |
| Operating Cash Flow | 85.44M | 73.03M | 103.41M | 137.62M | 125.28M | -21.27M |
| Investing Cash Flow | -599.08M | -419.93M | 313.08M | 384.16M | 89.34M | -555.79M |
| Financing Cash Flow | 430.38M | 68.93M | -327.95M | -558.60M | -161.45M | 384.36M |
BrightSpire Capital Risk Analysis
BrightSpire Capital disclosed 65 risk factors in its most recent earnings report. BrightSpire Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BrightSpire Capital Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $819.81M | 15.44 | 8.92% | 6.91% | 14.26% | ― | |
66 Neutral | $531.74M | 21.32 | 8.11% | 7.16% | 10.12% | -7.92% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $610.70M | 27.64 | 9.74% | 8.49% | 9.64% | -38.93% | |
51 Neutral | $631.36M | -21.58 | -2.91% | 12.24% | -0.14% | -10.71% |
* Real Estate Sector Average
BRSP
BrightSpire Capital
5.01
0.42
9.03%
CTO
CTO Realty Growth
21.97
6.82
45.05%
GOOD
Gladstone Commercial
12.50
0.74
6.26%
OLP
One Liberty Properties
24.31
3.91
19.20%
BrightSpire Capital Corporate Events
Business Operations and StrategyM&A Transactions
BrightSpire Capital Signs Deal to Sell Net-Lease Properties
Positive
Jun 16, 2026
On June 12, 2026, subsidiaries of BrightSpire Capital agreed to sell two net-lease industrial properties in Tolleson, Arizona and Tracy, California, known as the Net Lease 1 Investment, to buyers for $300 million, with a $6 million earnest money d...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
BrightSpire Capital Stockholders Approve Equity Plan Amendment
Positive
May 13, 2026
On May 13, 2026, BrightSpire Capital, Inc. held its 2026 annual meeting of stockholders, where investors approved a second amendment to the 2022 Equity Incentive Plan, adding authorization for 10,000,000 additional Class A common shares and imposi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.