BrightSpire Capital (BRSP) AI Stock Analysis

• Market Cap: $640.57M
• Dividend Yield: 12.88%
• Average Volume (3M): 627.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -14.92%
• EPS Growth: -3.27%
• Country: US
• Employees: 48
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 130,461,990
• 10 Day Avg. Volume: 688,474
• 30 Day Avg. Volume: 627,457
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.88
• Price Target Upside: 18.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 57 Neutral
• Price Target: $5.00 ▲(0.60%Upside)

The overall score reflects financial and operational challenges, with profitability issues being the most significant concern. Despite favorable cash flow and a strong dividend yield, high leverage and market volatility present substantial risks. The earnings call highlighted positive liquidity management but also underscored ongoing market challenges.

Positive Factors

Credit Quality

The watch list declined to 16% of the loan portfolio from 18%, indicating progress in credit quality.

Earnings

Adjusted distributable EPS covered the quarterly dividend with a coverage ratio of 113%.

Loan Portfolio

Management expects the loan portfolio to see net growth with a target size of at least $3.0B.

Negative Factors

CECL Reserve

The CECL reserve increased by $10.4M despite reducing its total watchlist size.

Loan Downgrades

BRSP saw two loans downgraded, including a Las Vegas multifamily asset loan and a Santa Clara land loan.

Realized Loss

The company took a ($9M) realized loss on an REO foreclosure.

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 makes money through various revenue streams primarily centered around its investment in commercial real estate debt and equity. The company generates income from interest earned on its loan portfolios, rental income from owned properties, and capital gains from the sale of assets. Additionally, BrightSpire Capital may engage in strategic partnerships or joint ventures with other real estate or financial entities to enhance its investment opportunities and diversify its income sources. The firm's careful selection of investment opportunities, along with its focus on maintaining a balanced and diversified portfolio, plays a significant role in its profitability.

BrightSpire Capital Financial Statement Overview

Summary

BrightSpire Capital's financial performance shows significant challenges with profitability, as indicated by negative net profit margins and ongoing net losses. While the cash flow is stable and positive, the high leverage poses financial risks.

Income Statement

BrightSpire Capital has shown volatility in its revenue and profitability metrics over the years. The TTM data reveals a negative net profit margin and a declining revenue trend compared to prior periods. The gross profit margin is relatively stable, but the negative net income indicates challenges in cost management or other operational inefficiencies. Despite a positive gross profit margin, the consistent net losses underscore significant profitability issues.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, reflecting significant leverage, which can be risky if not managed well. However, the equity ratio remains reasonably stable, indicating a consistent proportion of equity financing. The return on equity is negative due to net losses, highlighting profitability challenges. Overall, while the company maintains a stable equity base, high leverage poses potential financial risks.

Cash Flow

Cash flow metrics indicate a robust operating cash flow relative to net income, suggesting effective cash management despite net losses. The free cash flow remains positive, which is a strength, indicating the company's ability to generate liquidity from operations. However, fluctuations in cash flow components and significant financing activities reflect operational adjustments and potential financial instability.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

BrightSpire Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 4.97 is below the 20-day moving average (MA) of 5.04, below the 50-day MA of 5.03, and below the 200-day MA of 5.26, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 37.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRSP.

BrightSpire Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLP	74 Outperform	$500.56M	17.13	9.57%	7.89%	1.82%	-1.03%
GOOD	69 Neutral	$633.68M	47.03	7.51%	8.99%	3.01%	―
AHH	68 Neutral	$713.48M	123.51	3.05%	9.93%	-12.13%	-14.54%
CTO	61 Neutral	$581.30M	36.87	-1.05%	8.61%	17.48%	-172.41%
BRSP	57 Neutral	$640.57M	―	-6.29%	12.88%	-14.92%	-3.27%
PKST	56 Neutral	$507.10M	―	-6.09%	6.41%	-8.41%	88.62%
Sector *	54 Neutral	$1.24B	3.84	0.67%	6.03%	-2.39%	-129.28%

BrightSpire Capital Corporate Events

BrightSpire Capital Holds Annual Stockholders Meeting

On May 14, 2025, BrightSpire Capital held its annual meeting of stockholders, where several key decisions were made. The stockholders elected six directors to serve until the 2026 meeting, approved executive compensation for 2024, decided on an annual advisory vote on executive compensation, and ratified Deloitte & Touche LLP as the independent public accounting firm for 2025. These decisions reflect the company’s commitment to maintaining transparent governance and aligning executive pay with shareholder interests.

The most recent analyst rating on (BRSP) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on BrightSpire Capital stock, see the BRSP Stock Forecast page.