BrightSpire Swings to Profit in Third Quarter

The Tip Desk · November 10, 2026 · 3 min read

GAAP net income was $46.9 million, or $0.37 a share, after a $18.3 million loss in the second quarter.

BrightSpire Capital, Inc. (BRSP), an internally managed commercial real estate credit REIT, reported third-quarter 2026 GAAP net income attributable to common stockholders of $46.9 million, or $0.37 a share, reversing a second-quarter net loss of $18.3 million, or $0.15 a share.

The company sold its largest triple-net-lease industrial asset in the quarter at a $300 million gross price, with the purchaser assuming a $200 million mortgage note payable. NNN assets fell to $136 million, a 68% reduction from $429 million at June 30.

GAAP net book value rose to $7.08 a share from $6.81 a share, which the company attributed primarily to that industrial-sale gain and share repurchases, offset by higher CECL reserves and real estate impairments. Undepreciated book value declined to $7.87 a share from $8.10 a share. The company repurchased 2.1 million shares, or $9.9 million of Class A common stock, at a blended $4.81 a share.

Distributable Earnings were $10.3 million, or $0.08 a share. Adjusted Distributable Earnings were $17.8 million, or $0.14 a share. The board declared and paid a $0.16 quarterly dividend, unchanged from the prior quarter.

The loan portfolio stood at $3.1 billion across 111 loans, with $193 million of positive net deployment in the quarter. Committed capital closed was $272 million across seven new senior loans, versus $319 million in the second quarter. Repayment proceeds were $79 million across four loans. Multifamily represented 72% of the loan portfolio, and 65% of senior loans were financed with non-recourse, non-mark-to-market financing. Weighted-average unlevered all-in yield was 7.4%.

Credit quality moved the other way. Watch-list loans increased to $187 million, or 6% of the loan portfolio, from $136 million, or 5%, reversing the prior quarter’s net reduction in watch-list exposure. Weighted-average risk ranking rose to 3.1 from 3.0. Two office loans totaling $60 million were downgraded from risk rank 3 to risk rank 4; one risk-rank-4 office loan of $11 million was repaid. The total CECL reserve was $107 million, or $0.86 a share, with no specific CECL reserve on the balance sheet.

Other real estate stood at $301 million across five properties, including a $145 million hotel that accounted for 48% of REO. The company sold the Mesa, Arizona multifamily REO property for a $25 million gross price in the quarter.

Chief Executive Officer Michael J. Mazzei said the company executed its fifth CLO and second of 2026, putting CLO liabilities at nearly two-thirds of loan-portfolio financing. Subsequent to quarter-end, BrightSpire closed a $960 million CLO with an 88.0% advance rate and an S+1.54% cost of funds (pre-transaction costs), including $100 million of available ramp-up proceeds and a 2.5-year reinvestment period. President and Chief Operating Officer Andrew E. Witt said an additional $66 million of capital across two new senior loans had closed or was in execution after quarter-end.

Available liquidity was $181 million, comprising $106 million of unrestricted cash and $75 million of revolver capacity. Master repurchase facilities had $1.4 billion of availability on $2.35 billion of capacity. Unrestricted cash included expected net proceeds from the Fort Worth, Texas multifamily REO sale, which closed in October at a $32 million gross price. Debt-to-equity was 2.7x, and the weighted-average all-in cost of financing was 5.75%.