BrightSpire Capital (BRSP) AI Stock Analysis

• Market Cap: $764.13M
• Dividend Yield: 10.83%
• Average Volume (3M): 758.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -12.57%
• EPS Growth: 70.50%
• Country: US
• Employees: 48
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.16
• Shares Outstanding: 129,732,930
• 10 Day Avg. Volume: 916,222
• 30 Day Avg. Volume: 758,212
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 2.07
• P/FCF Ratio: 6.95
• Enterprise Value/Market Cap: 3.49
• Enterprise Value/Revenue: 8.16
• Enterprise Value/Gross Profit: 16.11
• Enterprise Value/Ebitda: 66.58
• 1Y Price Target: $5.25
• Price Target Upside: -10.71% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.64
• Revenue Forecast (FY): $328.41M

• Rating: 57 Neutral
• Price Target: $6.00 ▲(2.04% Upside)

BrightSpire Capital's overall stock score is driven by a combination of financial challenges and positive strategic developments. The company's financial performance is hindered by declining revenues and profitability issues, but operational improvements and leverage reduction offer some optimism. Technical analysis suggests a bullish trend, though caution is warranted due to overbought signals. Valuation metrics are mixed, with a negative P/E ratio but a high dividend yield. Positive earnings call sentiment and recent corporate events provide additional support, highlighting strategic progress and financial flexibility.

Positive Factors

Credit Facility Expansion

The expansion of key credit facilities enhances BrightSpire's financial flexibility, supporting its commercial real estate lending strategy and long-term growth.

Loan Origination Growth

Consistent loan origination growth indicates strong demand and effective portfolio management, contributing to future revenue stability and expansion.

Reduction in Watch List Loans

Significant reduction in watch list loans demonstrates improved risk management and asset quality, enhancing long-term financial stability.

Negative Factors

Declining Revenue

Ongoing revenue decline poses a challenge to growth, necessitating strategic adjustments to sustain profitability and market position.

Profitability Challenges

Persistent profitability issues, as evidenced by negative margins, can hinder reinvestment and growth, impacting long-term competitiveness.

Cash Flow Difficulties

Negative cash flow growth indicates challenges in converting income into cash, potentially affecting liquidity and investment capacity.

BrightSpire Capital Business Overview & Revenue Model

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.

How the Company Makes Money

BrightSpire Capital generates revenue primarily through the collection of rental income from its owned properties, which constitutes a significant portion of its earnings. Additionally, the company earns income from interest on loans it provides to real estate owners and operators, which is a key revenue stream. BrightSpire may also engage in property management and leasing services, further contributing to its revenue. The company's financial performance is bolstered by partnerships with institutional investors and real estate operators, which allow it to access a broader range of investment opportunities and enhance its capital structure. Furthermore, BrightSpire's focus on strategic acquisitions and asset management allows it to optimize property values and increase cash flow, driving profitability.

BrightSpire Capital Financial Statement Overview

Summary

BrightSpire Capital shows mixed financial performance. While there are strong gross profit margins and improved cash flow, challenges remain with declining revenue and negative net income, impacting profitability. The balance sheet reflects improved leverage but still shows profitability concerns with a negative return on equity.

Income Statement

BrightSpire Capital's income statement shows mixed performance. The gross profit margin is relatively strong at 57.13% TTM, indicating efficient cost management. However, the net profit margin is negative at -21.20% TTM, reflecting ongoing profitability challenges. Revenue has declined by 2.10% TTM, suggesting potential issues in revenue generation or market conditions. The EBIT and EBITDA margins are positive at 26.90% and 39.88% TTM, respectively, showing some operational efficiency, but the negative net income remains a concern.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved to 0.49 TTM from higher levels in previous years, indicating better leverage management. However, the return on equity is negative at -6.74% TTM, highlighting profitability issues. The equity ratio stands at 29.16% TTM, suggesting a reasonable level of equity financing relative to total assets, but the company needs to improve its return on equity to enhance shareholder value.

Cash Flow

Cash flow analysis shows positive trends. The free cash flow has grown significantly by 151.52% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.47 TTM, and the free cash flow to net income ratio is 1.0 TTM, suggesting that the company is generating sufficient cash relative to its net income, despite the latter being negative. This strong cash flow performance provides some financial stability and flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	326.79M	347.22M	392.11M	358.54M	323.09M	424.35M
Gross Profit	165.56M	159.42M	192.16M	193.07M	191.86M	212.37M
EBITDA	40.06M	-66.81M	35.91M	112.52M	101.59M	-142.60M
Net Income	-36.53M	-131.98M	-15.55M	45.79M	-101.05M	-353.30M
Balance Sheet
Total Assets	3.30B	3.72B	4.20B	4.75B	5.64B	6.21B
Cash, Cash Equivalents and Short-Term Investments	113.38M	302.17M	257.51M	306.32M	259.72M	485.21M
Total Debt	415.18M	2.52B	3.66B	3.19B	4.87B	4.66B
Total Liabilities	2.34B	2.68B	2.92B	3.36B	4.15B	4.25B
Stockholders Equity	976.41M	1.05B	1.28B	1.39B	1.46B	1.67B
Cash Flow
Free Cash Flow	82.50M	103.41M	137.62M	125.28M	-21.27M	96.36M
Operating Cash Flow	82.50M	103.41M	137.62M	125.28M	-21.27M	96.36M
Investing Cash Flow	-10.65M	313.08M	384.16M	89.34M	-555.79M	1.00B
Financing Cash Flow	-289.09M	-327.95M	-558.60M	-161.45M	384.36M	-754.06M

BrightSpire Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRSP, the sentiment is Positive. The current price of 5.88 is above the 20-day moving average (MA) of 5.78, above the 50-day MA of 5.51, and above the 200-day MA of 5.18, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 63.94 is Neutral, neither overbought nor oversold. The STOCH value of 56.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRSP.

BrightSpire Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLP	71 Outperform	$450.44M	13.49	10.91%	8.93%	7.71%	-5.37%
CTO	69 Neutral	$584.97M	-13.75	-5.80%	8.58%	23.84%	-312.04%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AHH	61 Neutral	$541.04M	49.93	4.09%	9.43%	-39.94%	―
GOOD	60 Neutral	$527.30M	58.59	5.96%	11.20%	4.95%	-6.49%
BRSP	57 Neutral	$764.13M	-19.64	-3.58%	10.83%	-12.57%	70.50%
PKST	56 Neutral	$526.48M	-1.62	-31.72%	5.44%	-16.50%	-640.43%

BrightSpire Capital Corporate Events

BrightSpire Capital Expands Key Credit Facilities and Covenants

On December 16–17, 2025, BrightSpire Capital’s subsidiaries executed a new series of amendments across four major repurchase and guaranty facilities with Wells Fargo, Barclays, Citibank and Morgan Stanley, collectively expanding debt capacity, extending maturities and further easing guarantor net worth covenants. The Wells Fargo facility tied to BrightSpire Credit 8 was upsized from $400 million to $500 million, with potential to reach $600 million subject to lender approval, while the minimum consolidated tangible net worth covenant for the BrightSpire operating guarantor was cut to $900 million; prior amendments since 2018 had already extended its maturity to June 22, 2028, added SOFR-based lending, and increased overall facility size. With Barclays, BrightSpire Credit 7’s master repurchase agreement—originally a $500 million line launched in 2018 and now sized at $600 million with maturity out to April 25, 2028—was supplemented by a fourth guaranty amendment on December 16, 2025 that likewise reduced the guarantor’s minimum tangible net worth requirement to $900 million. On the Citibank platform, which provides up to $400 million of financing and has gradually been updated for benchmark transitions and narrowed foreign-asset eligibility, BrightSpire replaced the existing guaranty on December 16, 2025 with an amended and restated guaranty that also lowered the required minimum consolidated tangible net worth to $900 million. Separately, on December 17, 2025, Morgan Stanley agreed under an eleventh omnibus amendment to reduce the guarantor’s minimum tangible net worth threshold to $900 million on a repurchase facility that has historically provided up to $600 million in capacity and now runs through April 20, 2027, after a series of prior amendments that cut the facility size, restored it, shifted to SOFR and extended the term. Taken together, these coordinated covenant reductions and capacity enhancements across four key lending relationships give BrightSpire more balance sheet flexibility and long-dated, SOFR-based financing to support its commercial real estate lending strategy through a challenging property and capital markets cycle.

BrightSpire Capital Amends Credit Agreement with JPMorgan

On December 9, 2025, BrightSpire Capital Operating Company, LLC entered into an amendment to its existing credit agreement with JPMorgan Chase Bank, allowing for a revolving credit facility of up to $120 million, with the potential to increase to $180 million. This amendment provides BrightSpire with financial flexibility, as it includes options for borrowing in multiple currencies and is backed by a robust borrowing base valuation. The agreement outlines various financial covenants and guarantees, ensuring the company’s obligations are secured by its subsidiaries and assets, which could impact its operational strategy and stakeholder interests.