Education
About Us
Working with TipRanks
Follow Us
BrightSpire Capital (BRSP)
NYSE:BRSP
Top Page
BrightSpire Capital
(NYSE:BRSP)
Select Model
Select Model
Rating:52Neutral
Price Target:
$5.50
▲(0.55% Upside)
BrightSpire Capital's overall stock score is driven by mixed financial performance and a challenging valuation, offset by positive earnings call sentiment. The company's strong loan origination activity and improved cash flow are positive factors, but profitability issues and technical indicators suggest caution. The high dividend yield offers some appeal to income investors.
Positive Factors
Loan Origination Growth
Consistent loan origination growth indicates robust demand for BrightSpire's financing solutions, enhancing revenue potential and market position.
Cash Flow Improvement
Improved cash flow strengthens BrightSpire's financial stability and flexibility, supporting future investments and operational resilience.
Risk Management
Effective risk management through watch list reduction enhances portfolio quality and reduces potential future losses, supporting long-term stability.
Negative Factors
Revenue Decline
A decline in revenue suggests challenges in market conditions or competitive positioning, potentially impacting long-term growth and profitability.
Profitability Challenges
Ongoing profitability challenges with negative net margins indicate operational inefficiencies, which may hinder sustainable growth and investor returns.
Book Value Decrease
A decrease in book value reflects potential asset devaluation or financial strain, which could affect investor confidence and capital raising ability.
BrightSpire Capital (BRSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$696.67M
Dividend Yield11.7%
Average Volume (3M)656.16K
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth-12.57%
EPS Growth70.50%
CountryUS
Employees48
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.16
Shares Outstanding129,732,930
10 Day Avg. Volume761,292
30 Day Avg. Volume656,159
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.69
Price to Sales (P/S)2.07
P/FCF Ratio6.95
Enterprise Value/Market Cap3.83
Enterprise Value/Revenue10.80
Enterprise Value/Gross Profit15.87
Enterprise Value/Ebitda18.97
Forecast
1Y Price Target
$5.25Price Target Upside-4.02% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)0.68
Revenue Forecast (FY)$330.85M
BrightSpire Capital Business Overview & Revenue Model
Company DescriptionBrightSpire 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 MoneyBrightSpire 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 Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook driven by strong loan origination activity, reduction in watch list exposure, and improvements in the commercial real estate market. However, there are slight setbacks in book value and challenges in the REO portfolio, particularly with the San Jose hotel. Despite these, the overall sentiment is optimistic due to the progress in loan originations and portfolio management.Q3-2025 Updates
Positive Updates
Positive Net Loan Originations
For the second consecutive quarter, BrightSpire achieved net positive loan originations, originating 10 loans totaling $224 million and having 7 loans in execution amounting to $242 million.
Reduction in Watch List Loans
The company's watch list has been reduced from $411 million at the start of 2025 to $182 million, showing significant progress in managing and reducing risk.
Stable Book Value
GAAP net book value remained relatively stable at $7.53 per share and undepreciated book value at $8.68 per share.
Improvement in Commercial Real Estate Markets
The company observed continued improvements in commercial real estate markets with tighter credit and lending spreads, and active CMBS and CLO markets with solid new issuance growth.
Progress in REO Portfolio Management
BrightSpire made substantial progress in managing its REO portfolio, including the sale of a Phoenix, Arizona multifamily property and plans to market additional REO properties early next year.
Negative Updates
Slight Decrease in Book Value
Quarter-over-quarter, total company GAAP net book value decreased slightly from $7.65 to $7.53 per share, and undepreciated book value from $8.75 to $8.68 per share.
Specific Reserves and Impairment
The company recorded a specific CECL reserve of approximately $18 million related to the Oregon office loan, and a GAAP impairment of $2.5 million for a multi-tenanted office equity property.
Challenges with San Jose Hotel
The NOI for the San Jose hotel remains below $10 million, with deferred maintenance and CapEx needs posing challenges for the property's financial contribution.
Company Guidance
During the BrightSpire Capital Third Quarter 2025 Earnings Conference Call, management provided extensive guidance on the company's financial performance and strategic objectives. The company reported a GAAP net income of $1 million or $0.01 per share, distributable earnings (DE) of $3.3 million or $0.03 per share, and adjusted distributable earnings of $21.2 million or $0.16 per share. Liquidity was strong at $280 million, with $87 million in unrestricted cash. The GAAP net book value per share was $7.53, and the undepreciated book value was $8.68 as of September 30, 2025. The company achieved net positive loan originations for the second consecutive quarter, originating 10 loans totaling $224 million and having 7 loans in execution for an additional $242 million, indicating a robust origination pipeline. The watch list of loans decreased from $411 million at the start of 2025 to $182 million, and the REO portfolio was at $364 million across 8 properties. BrightSpire is preparing for its next CLO securitization, aiming to reach a targeted loan portfolio of approximately $3.5 billion, supported by asset sales and continued reduction in office loan exposure. The management expressed confidence in their strategy, which they believe will drive portfolio transformation and improve earnings in the coming quarters.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.45
Neutral
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.50
Neutral
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 246.96M | 347.22M | 415.08M | 358.54M | 290.07M | 424.35M |
| Gross Profit | 168.12M | 159.42M | 317.37M | 193.07M | 153.52M | 212.37M |
| EBITDA | 140.63M | -66.81M | 35.91M | 112.52M | 101.03M | -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 | 3.97B | 4.12B |
| 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 | -58.27M | 103.41M | 137.62M | 125.28M | -21.27M | 96.36M |
| Operating Cash Flow | -58.27M | 103.41M | 137.62M | 125.28M | -21.27M | 96.36M |
| Investing Cash Flow | -263.13M | 313.08M | 384.16M | 89.34M | -555.79M | 1.00B |
| Financing Cash Flow | 68.72M | -327.95M | -558.60M | -161.45M | 384.36M | -754.06M |
BrightSpire Capital Technical Analysis
Positive
5.47
Price Trends
5.41
Positive
5.26
Positive
5.15
Positive
Market Momentum
0.01
Negative
60.76
Neutral
85.32
Negative
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 5.47 is above the 20-day moving average (MA) of 5.30, above the 50-day MA of 5.41, and above the 200-day MA of 5.15, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 85.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRSP.
BrightSpire Capital Risk Analysis
BrightSpire Capital disclosed 64 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 | $560.36M | ― | -5.80% | 8.64% | 23.84% | -312.04% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $434.81M | 15.57 | 10.91% | 8.70% | 7.71% | -5.37% | |
59 Neutral | $535.59M | 59.51 | 5.96% | 10.68% | 4.95% | -6.49% | |
56 Neutral | $510.58M | 47.12 | 4.09% | 9.72% | -39.94% | ― | |
56 Neutral | $550.02M | ― | -31.72% | 5.42% | -16.50% | -640.43% | |
52 Neutral | $696.67M | ― | -3.58% | 11.70% | -12.57% | 70.50% |
* Real Estate Sector Average
BRSP
BrightSpire Capital
5.47
-0.07
-1.26%
CTO
CTO Realty Growth
17.60
-0.78
-4.24%
GOOD
Gladstone Commercial
11.24
-4.54
-28.77%
OLP
One Liberty Properties
20.70
-5.64
-21.41%
AHH
Armada Hoffler Properties
6.43
-3.75
-36.84%
PKST
Peakstone Realty Trust
15.02
2.55
20.45%
BrightSpire Capital Corporate Events
BrightSpire Capital Reports Q3 2025 Financial Results
Oct 30, 2025
BrightSpire Capital, Inc. is a leading publicly traded commercial real estate credit REIT, specializing in originating, acquiring, financing, and managing a diversified portfolio of commercial real estate debt investments and net leased properties primarily in the United States.
BrightSpire Capital Reports Q2 2025 Financial Results
Jul 31, 2025
BrightSpire Capital, Inc. is a leading commercial real estate credit REIT, focusing on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments and net leased properties, primarily in the United States.
BrightSpire Capital’s Earnings Call: A Balanced Outlook
Jul 31, 2025
BrightSpire Capital Inc. recently held its earnings call, revealing a mix of positive and negative developments. The company showed progress in reducing watch list loans and maintaining liquidity, yet faced challenges with GAAP net losses and specific REO properties. The sentiment during the call was balanced, with cautious optimism for future growth.
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.