BrightSpire Capital, Inc. (BRSP), a Maryland-based commercial real estate (CRE) credit REIT, reported a GAAP net loss of $132.0 million, or $(1.05) per share, for the year ended December 31, 2024. However, the company also reported Distributable Earnings of $71.2 million ($0.55 per share) and Adjusted Distributable Earnings of $109.2 million ($0.84 per share), both non-GAAP measures. The company's portfolio, valued at approximately $3.3 billion, consisted of 93 investments, including 76 senior and mezzanine loans and 16 net leased and other real estate properties. As of December 31, 2024, the company had 48 full-time and one part-time employee.
Compared to the previous year, interest income decreased by $53.9 million due to loan repayments and loans placed on non-accrual status, partially offset by higher interest rates and loan originations. Interest expense decreased by $19.4 million primarily due to repayments, while property operating income increased by $9.0 million due to property acquisitions. The company recorded total CECL reserves of $135.8 million, including $97.8 million in general reserves and $38.0 million in specific reserves, reflecting macroeconomic conditions and specific loan assessments. The company also recorded a GAAP impairment of $53.3 million on four office properties and a non-GAAP impairment of $134.6 million on nine properties.
During 2024, BrightSpire completed a $675.0 million securitization transaction (BRSP 2024-FL2), and redeemed outstanding securities under CLNC 2019-FL1. The company originated six new senior mortgage loans totaling $128.3 million and received loan repayment proceeds of $517.6 million. Additionally, the company acquired one multifamily property through foreclosure and consolidated another, while selling two office properties. The company also repurchased 1.2 million shares of its Class A common stock at a weighted average price of $5.52.
The company's liquidity position as of February 18, 2025, included approximately $418.0 million in cash and available credit. BrightSpire's financing strategy utilizes a secured revolving credit facility, secured repurchase facilities, and securitization financing. The company's debt-to-equity ratio was 2.1x as of December 31, 2024. The company's outlook is contingent upon various factors, including macroeconomic conditions, interest rate fluctuations, and the performance of its borrowers and tenants, as detailed in the filing's extensive risk factors section. The company's ability to pay future distributions is not guaranteed.
BrightSpire's financial performance is significantly influenced by interest rate changes, prepayment rates, and credit risk. The company actively manages its portfolio through a rigorous underwriting process and asset management strategies, including loan workouts and restructuring. The company also highlighted its commitment to ESG standards and practices in its investment and portfolio management processes. The 10-K filing includes extensive disclosures regarding REIT qualification requirements and associated tax implications.
About BrightSpire Capital, Inc.
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