BrightSpire (BRSP) Q1 2026 Earnings Transcript

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DATE

Wednesday, April 29, 2026 astatine 10 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Michael Mazzei

• President — Andrew Witt

• Chief Financial Officer — Frank Saracino

Full Conference Call Transcript

Before I crook the telephone implicit to Mike, I volition supply a little recap connected our results. The institution reported archetypal 4th GAAP nett income attributable to communal stockholders of $4.8 cardinal oregon $0.03 per share, distributable net of $15.6 cardinal oregon $0.12 per stock and adjusted distributable net of $18.2 cardinal oregon $0.14 per share. Current liquidity stands astatine $206 million, of which $58 cardinal is unrestricted cash. The institution besides reported GAAP nett publication worth of $7.05 per stock and undepreciated publication worth of $8.24 per stock arsenic of March 31, 2026. Finally, during this call, absorption whitethorn notation to distributable net arsenic DE. With that, I would present similar to crook the telephone implicit to Mike.

Michael Mazzei: Thanks, David, and invited to our archetypal 4th 2026 net call. I volition support my prepared remarks brief. And arsenic always, Andy volition locomotion done the quarter's indebtedness originations and portfolio activity. Since reinitiating caller indebtedness production, we person closed 37 loans totaling $1.1 cardinal with an further 9 loans successful execution for $283 cardinal for a combined full of conscionable implicit $1.4 billion. While the process has been gradual, we person steadily accrued our indebtedness publication each quarter, and it present stands astatine $2.7 billion. Our strategy remains focused connected mediate marketplace lending with an mean indebtedness size of astir $27 million.

We person been focused connected expanding diversification and avoiding indebtedness size and concern concentrations that we deem excessively ample for our equity superior base. This, successful turn, volition besides let america to support somewhat little currency balances. Thus far, the overwhelming bulk of caller loans person been multifamily, contributing to a much favorable spot benignant exposure. During the quarter, our portfolio besides benefited from payoffs and resolutions of bureau loans. We expect a further simplification successful our bureau indebtedness vulnerability to hap this adjacent quarter. As an aside, we besides closed loans connected edifice and concern properties during the archetypal quarter.

However, overall, we expect multifamily loans to proceed to comprise the bulk of our enactment successful the mean term, with span indebtedness request being driven by valuation resets and expanding levels of income transactions. This reflects lenders incentivizing borrowers with greater frequence to merchantability oregon refinance 2021 and 2022 vintage span oregon operation loans. It is worthy noting that successful particular, the Sunbelt markets are seeing precise precocious request for multifamily span lending arsenic that portion works to sorb vacancies and rent concessions implicit the adjacent 12 to 18 months.