BrightSpire Capital Q2 2025 Financial Results: Net Loss of $23.1mln, Distributable Earnings of $3.4mln

BrightSpire Capital reported a Q2 2025 GAAP net loss of $23.1 million, or $0.19 per share. However, it achieved Distributable Earnings of $3.4 million, or $0.03 per share, and Adjusted Distributable Earnings of $22.9 million, or $0.18 per share. The company reduced its watch list by 50%, significantly de-risking its portfolio, and remains focused on resolving its remaining REO properties and actively managing its portfolio for stability and potential growth.

BrightSpire Capital, Inc. (NYSE: BRSP) reported its Q2 2025 earnings on July 30, 2025, highlighting a net loss of $23.1 million, or $0.19 per share, under GAAP. However, the company achieved Distributable Earnings (DE) of $3.4 million, or $0.03 per share, and Adjusted Distributable Earnings of $22.9 million, or $0.18 per share. Current liquidity stands at $325 million, with $106 million in unrestricted cash.

The company reduced its watch list by 50%, significantly de-risking its portfolio. This reduction was primarily driven by the foreclosure of the San Jose Hotel loan, which is now owned free and clear. The hotel, which experienced deferred maintenance, is expected to undergo physical and operational improvements ahead of significant events in the Bay Area, including the Super Bowl and the World Cup. The company plans to sell the asset in 2026.

BrightSpire Capital's balance sheet showed positive growth in the loan book, with net loan originations remaining positive. The company also reported a stable book value and an unchanged undepreciated book value of $8.75 per share. The company repurchased 561,000 shares at an average price of $5.19, with the stock trading at a roughly 40% discount to its undepreciated book value.

The company's REO (Real Estate Owned) portfolio grew commensurately with the reduction in watch list exposure. Currently, the REO portfolio comprises 8 properties with an aggregate undepreciated gross book value of $379 million. The company is focused on leasing up and resolving its REO properties, with a particular focus on the multifamily sector.

BrightSpire Capital's Q2 2025 earnings call underscored the company's commitment to managing its portfolio for stability and potential growth. The company's reduced watch list and stable book value position it well to capitalize on opportunities in the second half of the year.

References:
[1] https://www.insidermonkey.com/blog/brightspire-capital-inc-nysebrsp-q2-2025-earnings-call-transcript-1580355/