NEW YORK–(BUSINESS WIRE)–BrightSpire Capital, Inc. (NYSE: BRSP) today announced its financial results for the third quarter ended September 30, 2021 and certain updates. The Company reported third quarter 2021 GAAP net loss attributable to common stockholders of $(70.1) million, or $(0.54) per share, and Distributable Loss of $(68.4) million, or $(0.51) per share. Excluding realized losses and fair value adjustments, Adjusted Distributable Earnings of $35.0 million, or $0.26 per share. The Company reported GAAP net book value of $11.04 per share and undepreciated book value of $12.00 per share as of September 30, 2021.
Michael J. Mazzei, Chief Executive Officer and President, commented, “BrightSpire Capital reported another solid quarter with Adjusted Distributable Earnings of $0.26 per share, an increase from $0.20 per share in the second quarter. I am also pleased to announce a fourth quarter dividend of $0.18 per share, an increase from $0.16 per share in the third quarter, marking our third consecutive increase this year.”
Mr. Mazzei continued, “We deployed $519 million of capital into new loans during the quarter and since commencing originations in the fourth quarter of 2020, we have now closed on or committed to 69 loans totaling $2.1 billion. During the quarter, our largest non-accrual senior loan was reinstated to accrual status as the borrower is emerging from bankruptcy. However, increased risks surrounding our interests in the mezzanine loan for the L.A. Mixed-Use Project have resulted in a full write down of its remaining value of $98 million.”
Mr. Mazzei continued, “As we look towards the remainder of 2021 and into 2022, we expect to continue to deploy capital into new loan originations, complete the rotation of our portfolio and fine tune our liability structure.”
Supplemental Financial Report
A Third Quarter 2021 Supplemental Financial Report is available on the Shareholders – Events and Presentations section of the Company’s website at www.brightspire.com. This information will be furnished to the SEC in a Current Report on Form 8-K.
We refer to “Distributable Earnings” and “Adjusted Distributable Earnings”, which are non-GAAP financial measures, in this release. A reconciliation to net income/(loss) attributable to BrightSpire Capital, the most directly comparable GAAP measure, is included in our full detailed Third Quarter 2021 Supplemental Financial Report and is available on our website at www.brightspire.com.
Dividend Announcement
On November 3, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.18 per share to holders of Class A common stock for the fourth quarter of 2021, which will be paid on January 14, 2022, to common stockholders of record on December 31, 2021.
Previously, on August 4, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.16 per share to holders of Class A common stock for the third quarter of 2021, which was paid on October 15, 2021, to common stockholders of record on September 30, 2021.
Corporate Governance Updates
Effective October 29, 2021, the Company’s Board of Directors and Compensation Committee approved the adoption of (i) a Clawback Policy, providing for the recoupment of incentive compensation from executive officers and other senior employees responsible for financial reporting if the Company is required to prepare accounting restatements as a result of financial reporting misconduct by such person, and (ii) Stock Ownership Guidelines, setting significant Company stock ownership thresholds applicable to executive officers and directors of the Company. Pursuant to the Stock Ownership Guidelines, ownership thresholds shall include: chief executive officer (5x base salary), other executive officers (3x base salary) and directors (5x annual cash retainer), subject to a 5-year grace period and which thresholds shall not count unexercised options or unearned performance awards.
The Board of Directors believes that adopting these two policies advances a culture that emphasizes integrity and accountability at the Company and further aligns the long-term interests of the stockholders, executive officers and directors of the Company.
About BrightSpire Capital, Inc.
BrightSpire Capital, Inc. (NYSE: BRSP), formerly Colony Credit Real Estate, Inc. (NYSE: CLNC), is internally managed and one of the largest publicly traded commercial real estate (CRE) credit REITs, focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE debt investments and net leased properties predominantly in the United States. CRE debt investments primarily consist of first mortgage loans, which we expect to be the primary investment strategy. BrightSpire Capital is organized as a Maryland corporation and taxed as a REIT for U.S. federal income tax purposes. For additional information regarding the Company and its management and business, please refer to www.brightspire.com.
