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BrightSpire Capital (BRSP)
NYSE:BRSP
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BrightSpire Capital
(NYSE:BRSP)
Rating:55Neutral
Price Target:
$5.50
▼(-0.72% Downside)
Positive Factors
Credit Quality
The watch list declined to 16% of the loan portfolio from 18%, indicating progress in credit quality.
Earnings
Analyst reiterates a Market Outperform rating on shares of BrightSpire Capital, Inc.
Negative Factors
Financial Performance
The company also had two loans downgraded, took a ($9M) realized loss on an REO foreclosure, and saw its CECL reserve increase by $10.4M despite reducing its total watchlist size.
BrightSpire Capital (BRSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$720.17M
Dividend Yield11.55%
Average Volume (3M)794.08K
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth-14.73%
EPS Growth79.63%
CountryUS
Employees48
SectorReal Estate
Sector Strength44
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.18
Shares Outstanding129,993,940
10 Day Avg. Volume706,613
30 Day Avg. Volume794,075
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap3.70
Enterprise Value/Revenue10.79
Enterprise Value/Gross Profit19.32
Enterprise Value/Ebitda199.27
Forecast
1Y Price Target
$5.67Price Target Upside2.35% Upside
Rating ConsensusHold
Number of Analyst Covering3
BrightSpire Capital Business Overview & Revenue Model
Company DescriptionBrightSpire Capital (BRSP) is a real estate investment trust (REIT) that focuses on originating, acquiring, financing, and managing a diversified portfolio of commercial real estate debt and net lease real estate investments across the United States. The company primarily deals in senior and mezzanine loans, preferred equity, and other commercial real estate-related debt instruments. BrightSpire Capital aims to deliver attractive risk-adjusted returns to its investors through its disciplined investment approach and robust risk management practices.
How the Company Makes MoneyBrightSpire 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 Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: 11.24%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in risk reduction and market improvements, with positive net loan growth and a strong liquidity position. However, these were balanced by challenges such as a notable GAAP net loss, low loan originations, and asset impairments. The management remains optimistic about future opportunities.Q2-2025 Updates
Positive Updates
Successful Reduction in Watch List Exposure
The company reduced its watch list exposure by 50%, with significant progress in derisking the portfolio. Key reductions included foreclosing on and taking ownership of the San Jose Hotel loan.
Positive Net Loan Growth
Despite a lull in new loan closings, the company experienced positive growth in its loan book, with a 3% increase or $70 million net growth in the portfolio.
Improved Market Conditions
Commercial real estate debt markets showed significant improvement and reduced volatility, with stable credit and lending spreads, increased loan inquiries, and a reactivated CMBS market.
Stock Repurchase Program
The company repurchased 561,000 shares at an average price of $5.19, believing its stock is significantly undervalued.
High Liquidity Position
The company reported liquidity of $325 million, including $106 million in unrestricted cash.
Negative Updates
GAAP Net Loss
The company reported a second quarter GAAP net loss attributable to common stockholders of $23.1 million or $0.19 per share.
Low Loan Originations
There was a lull in new loan closings during the second quarter, although future conditions are expected to improve.
Deconsolidation and Impairments
The company faced deconsolidation of assets due to maturity defaults and foreclosures, leading to GAAP impairments totaling approximately $51 million.
Company Guidance
In the second quarter of 2025, BrightSpire Capital reported a GAAP net loss of $23.1 million, equivalent to $0.19 per share, while achieving distributable earnings of $3.4 million or $0.03 per share and adjusted distributable earnings of $22.9 million or $0.18 per share. The company maintained a GAAP net book value of $7.65 per share and an undepreciated book value of $8.75 per share. Liquidity was strong at $325 million, including $106 million in unrestricted cash. BrightSpire made progress in reducing their watch list loans by 50% and enhancing their loan portfolio with net positive growth, closing or executing six new loans worth $114 million. Additionally, they repurchased 561,000 shares at an average price of $5.19. The management expressed optimism about the commercial real estate market, noting improvements in market conditions and stability in lending spreads.BrightSpire Capital Financial Statement Overview
Summary
BrightSpire Capital is facing profitability challenges, with negative net profit margins and high leverage risks. However, stable cash flow provides some confidence in liquidity management.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.45
Neutral
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.52
Neutral
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 246.67M | 347.22M | 392.11M | 358.54M | 290.07M | 424.35M |
| Gross Profit | 137.77M | 159.42M | 197.81M | 193.07M | 158.84M | 212.37M |
| EBITDA | 13.36M | -66.81M | 35.91M | 112.52M | 101.03M | -142.60M |
| Net Income | -70.17M | -131.98M | -15.55M | 45.79M | -101.05M | -353.30M |
Balance Sheet | ||||||
| Total Assets | 3.41B | 3.72B | 4.20B | 4.75B | 5.64B | 6.21B |
| Cash, Cash Equivalents and Short-Term Investments | 154.28M | 302.17M | 257.51M | 306.32M | 259.72M | 485.21M |
| Total Debt | 483.11M | 2.52B | 2.74B | 3.19B | 3.97B | 4.66B |
| Total Liabilities | 2.42B | 2.68B | 2.92B | 3.36B | 4.15B | 4.25B |
| Stockholders Equity | 994.36M | 1.05B | 1.28B | 1.39B | 1.46B | 1.67B |
Cash Flow | ||||||
| Free Cash Flow | 224.68M | 103.41M | 137.62M | 125.28M | -21.27M | 96.36M |
| Operating Cash Flow | 224.68M | 103.41M | 137.62M | 125.28M | -21.27M | 96.36M |
| Investing Cash Flow | 351.13M | 313.08M | 384.16M | 89.34M | -555.79M | 1.00B |
| Financing Cash Flow | -577.16M | -327.95M | -558.60M | -161.45M | 384.36M | -754.06M |
BrightSpire Capital Technical Analysis
Positive
5.54
Price Trends
5.14
Positive
5.01
Positive
5.29
Positive
Market Momentum
0.13
Negative
68.09
Neutral
86.81
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 5.54 is above the 20-day moving average (MA) of 5.25, above the 50-day MA of 5.14, and above the 200-day MA of 5.29, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 68.09 is Neutral, neither overbought nor oversold. The STOCH value of 86.81 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
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $491.18M | 17.59 | 9.16% | 7.92% | 5.57% | -14.50% | |
71 Outperform | $713.51M | 76.52 | 3.55% | 9.83% | -25.73% | ― | |
65 Neutral | $2.04B | 16.95 | 4.04% | 5.08% | 1.74% | -1.63% | |
63 Neutral | $543.50M | 36.87 | -5.66% | 9.26% | 22.26% | -328.46% | |
59 Neutral | $616.34M | 36.51 | 8.51% | 9.17% | 5.85% | ― | |
55 Neutral | $720.17M | ― | -2.41% | 11.55% | -14.73% | 79.63% | |
49 Neutral | $450.32M | ― | -35.52% | 7.21% | -6.69% | -118.66% |
* Real Estate Sector Average
Performance Comparison
BRSP
BrightSpire Capital
5.54
0.40
7.78%
CTO
CTO Realty Growth
16.42
-1.28
-7.23%
GOOD
Gladstone Commercial
13.08
-0.49
-3.61%
OLP
One Liberty Properties
22.52
-1.67
-6.90%
AHH
Armada Hoffler Properties
7.02
-3.91
-35.77%
PKST
Peakstone Realty Trust
12.49
0.62
5.22%
BrightSpire Capital Corporate Events
Executive/Board ChangesShareholder Meetings
BrightSpire Capital Holds Annual Stockholders Meeting
Neutral
May 14, 2025
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.
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.