BrightSpire Capital, Inc. Announces Fourth Quarter & Full Year 2023 Financial Results
- BrightSpire Capital reported positive Distributable Earnings and Adjusted Distributable Earnings for Q4 and full year 2023.
- The company emphasized progress on watchlist assets and potential capital redeployment.
- A conference call is scheduled for February 21, 2024, to discuss the financial results.
- A quarterly cash dividend of $0.20 per share was declared for Q4 2023.
- None.
The reported financial results from BrightSpire Capital, Inc. indicate a mixed performance. A GAAP net loss for both the fourth quarter and the full year contrasts with positive Distributable Earnings and Adjusted Distributable Earnings. This discrepancy suggests that while the company may have incurred certain non-cash charges or one-time expenses impacting GAAP net loss, the core operations remain profitable, as evidenced by the positive Distributable Earnings.
Investors typically focus on Distributable Earnings as they tend to provide a clearer picture of the company's ability to generate cash flow that can be distributed to shareholders. The Adjusted Distributable Earnings, being higher than the basic Distributable Earnings, might include one-off items or non-recurring gains, which should be scrutinized for sustainability. The declaration of a consistent quarterly cash dividend signals confidence in the company's liquidity and financial health, potentially attracting income-focused investors.
The reported book values provide benchmarks for assessing the company's net worth per share, which can influence investor perception of the stock's intrinsic value. A higher undepreciated book value compared to GAAP net book value may imply significant depreciation expenses or other accounting treatments that reduce the GAAP figure.
The CEO's statement on maintaining liquidity and progress on watchlist assets is indicative of a strategic approach to asset management and risk mitigation. The ability to redeploy capital in future quarters could signal growth prospects and financial flexibility, which is often a positive indicator for investors evaluating the company's long-term potential.
Furthermore, the market's reaction to these results will depend on how they align with industry benchmarks and analyst expectations. If the reported earnings surpass industry norms or analyst projections, the stock might experience positive momentum. Conversely, if the results fall short or raise concerns about the sustainability of earnings, it could lead to bearish sentiments.
Investors may also pay attention to the conference call for insights into management's outlook and strategic initiatives. The tone and content of executive communication during such events can have a noticeable impact on market sentiment and stock performance in the short term.
It is important to note that BrightSpire Capital's utilization of non-GAAP financial measures such as Distributable Earnings and Adjusted Distributable Earnings requires careful communication to ensure compliance with regulatory standards. The reconciliation of these measures to GAAP net income/(loss) is crucial for transparency and allows investors to understand the adjustments made.
Regulatory bodies like the SEC closely monitor the presentation of non-GAAP measures to prevent misleading financial reporting. The company's adherence to these regulations by providing a detailed reconciliation in its supplemental financial report is a positive sign of its commitment to regulatory compliance and financial transparency.
Michael J. Mazzei, Chief Executive Officer, commented, “The Company produced strong quarterly and yearly results, all while continuing to maintain liquidity. We are making progress on watchlist assets and should see more results in the coming quarters. These efforts, if successful, should put us in a place where we can begin to redeploy capital.”
Supplemental Financial Report
A Fourth Quarter 2023 Supplemental Financial Report is available on the Shareholders – Events and Presentations section of the Company’s website at www.brightspire.com. This information will be furnished to the SEC in a Current Report on Form 8-K.
We refer to “Distributable Earnings” and “Adjusted Distributable Earnings”, which are non-GAAP financial measures, in this release. A reconciliation to net income/(loss) attributable to BrightSpire Capital common stockholders, the most directly comparable GAAP measure, is included in our full detailed Fourth Quarter 2023 Supplemental Financial Report and is available on our website at www.brightspire.com.
Fourth Quarter 2023 Conference Call
The Company will conduct a conference call to discuss the financial results on February 21, 2024 at 10:00 a.m. ET / 7:00 a.m. PT. To participate in the event by telephone, please dial (877) 407-0784 ten minutes prior to the start time (to allow time for registration). International callers should dial (201) 689-8560. The call will also be broadcast live over the Internet and can be accessed on the Shareholders section of the Company’s website at www.brightspire.com. A webcast of the call will be available for 90 days on the Company’s website.
For those unable to participate during the live call, a replay will be available starting February 21, 2024 at 1:00 p.m. ET / 10:00 a.m. PT, through February 28, 2024, at 11:59 p.m. ET / 8:59 p.m. PT. To access the replay, dial (844) 512-2921 and use conference ID code 13743250. International callers should dial (412) 317-6671 and enter the same conference ID.
Dividend Announcement
On December 14, 2023, the Company’s Board of Directors declared a quarterly cash dividend of
Previously, on September 14, 2023, the Company’s Board of Directors declared a quarterly cash dividend of
About BrightSpire Capital, Inc.
BrightSpire Capital, Inc. (NYSE: BRSP) is internally managed and one of the largest publicly traded commercial real estate (CRE) credit REITs, focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE debt investments and net leased properties predominantly in
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ significantly from those expressed in any forward-looking statement. Among others, the following uncertainties and other factors could cause actual results to differ from those set forth in the forward-looking statements: operating costs and business disruption may be greater than expected; uncertainties regarding the ongoing impact of the novel coronavirus (COVID-19) and its adverse impact on the real estate market, the economy and the Company’s investments, financial condition and business operation; the Company's operating results may differ materially from the information presented in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as well as in the Company’s other filings with the Securities and Exchange Commission; the fair value of the Company's investments may be subject to uncertainties (including impacts associated with accelerating inflationary trends, recent and potential further interest rate increases, the volatility of interest rates, credit spreads and the transition from LIBOR to SOFR, increased market volatility affecting commercial real estate businesses and public securities); the Company's use of leverage and interest rate mismatches between the Company’s assets and borrowings could hinder its ability to make distributions and may significantly impact its liquidity position; the ability to simplify the portfolio, realize substantial efficiencies as well as anticipated strategic and financial benefits, including, but not limited to expected cost savings through the internalization or expected returns on equity and/or yields on investments; the timing of and ability to generate additional liquidity and deploy available liquidity, including in senior mortgage loans; whether the Company will achieve its anticipated Distributable Earnings per share (as adjusted), or maintain or produce higher Distributable Earnings per share (as adjusted) in the near term or ever; the Company’s ability to maintain or grow the dividend at all in the future; defaults by borrowers in paying debt service on outstanding indebtedness; borrowers’ abilities to manage and stabilize properties; deterioration in the performance of the properties securing our investments (including the impact of higher interest expense, depletion of interest and other reserves or payment-in-kind concessions in lieu of current interest payment obligations, population shifts and migration, reduced demand for office, multifamily, hospitality or retail space) that may cause deterioration in the performance of our investments and, potentially, principal losses to us; adverse impacts on the Company's corporate revolver, including covenant compliance and borrowing base capacity; adverse impacts on the Company's liquidity, including available capacity under and margin calls on master repurchase facilities; lease payment defaults or deferrals, demands for protective advances and capital expenditures; the ability of the Company to refinance certain mortgage debt on similar terms to those currently existing or at all; the ability to execute CRE CLO’s on a go forward basis, including at a reduced cost of capital; the impact of legislative, regulatory, tax and competitive changes, regime changes and the actions of government authorities and in particular those affecting the commercial real estate finance and mortgage industry or our business; and the impact of the conflict between
We caution investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this press release. BrightSpire Capital is under no duty to update any of these forward-looking statements after the date of this press release, nor to conform prior statements to actual results or revised expectations, and BrightSpire Capital does not intend to do so.
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Investor Relations
BrightSpire Capital, Inc.
Addo Investor Relations
Anne McGuinness
310-829-5400
brsp@addo.com
Source: BrightSpire Capital, Inc.
FAQ
What were BrightSpire Capital's financial results for Q4 and full year 2023?
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