BrightSpire Capital posts Q2 net loss

Overview

• US commercial real estate lender posted Q2 GAAP net loss

• Company executed its largest-ever quarterly share buyback in Q2

• Entered contract to sell triple net lease asset, shifting focus to first mortgage loans

Outlook

• Company expects to continue growing its loan portfolio

• BrightSpire Capital remains focused on resolving remaining REO properties and redeploying capital

Result Drivers

• LOAN ORIGINATIONS - Co reported strong loan originations with $319 mln of committed capital closed in Q2 and additional $295 mln closed or in-execution after quarter end

• CAPITAL ROTATION - Entered contract to sell triple net lease asset, moving capital out of real estate equity and into first mortgage loans

• WATCH LIST REDUCTION - Co reported net reduction in watch list exposure in Q2

Company press release: ID:nBw4pjrD9a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Brightspire Capital Inc is $6.50, about 24% above its July 28 closing price of $5.24

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 28 - Rithm Property Trust returns to profit in Q2 but distributable earnings stay negative

• July 28 - Redwood Trust Q2 net loss narrows sequentially, mortgage banking production doubles y/y

• July 28 - Franklin Street Properties Q2 revenue dips, net loss widens amid strategic review

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)