BrightSpire Capital, Inc. Q4 FY2025 earnings call

2025 focused on rotating portfolio and increasing new loan originations. Fourth quarter saw loan portfolio increase to $2.7 billion, active in REO sales and watch list loan resolutions. Announced closing of fourth managed CLO. 2026 goal to grow loan book to ~$3.5 billion, resolve watch list and REO for new loan capital. Fourth quarter originations active, loan book grew, watch list and REO progress, reserve changes.

Fourth quarter GAAP net loss attributable to common stockholders was $14.4 million or $0.12 per share, distributable earnings loss was $35.5 million or $0.28 per share, and adjusted distributable earnings was $19.3 million or $0.15 per share. The loan portfolio increased by $315 million to $2.7 billion as of December 31, 2025, a 13% increase from the third quarter. 32 new loans totaling $941 million in commitments were closed during the year, with 13 loans of $416 million closed in the fourth quarter. Focus on resolving watch list loans and REO, aiming to cut watch list exposure to 2 loans ~$66 million and REO assets have exit plans.

Plan to cover dividend by midyear and achieve positive coverage by year-end. Anticipate loan book to expand to nearly $3 billion by midyear and ~$3.5 billion by year-end. Goal to cut watch list exposure to 2 loans ~$66 million, REO assets have exit plans, execute fifth CLO in second half.

Commercial real estate debt capital markets risks, competition in loan spreads, uncertainty in asset resolutions

Q: How do you think about the amount of leverageable capital and credit portfolio?

A: ~$200+ million latent capital tied up, optimistic about credit.

Q: Color on San Jose property and net lease?

A: San Jose hotel event went well, upgrading, expecting ~$9 million NOI, net lease portfolio not growing much.

Q: Pace of originations and foreclosure loss?

A: ~$300 - $400 million a quarter, foreclosure loss taken in fourth quarter.