BrightSpire Swings to $0.37 GAAP EPS as Loan Book Grows 30%
BRSP is trading near its 52-week low of $3.56 (5.6% above the low) on elevated volume (2.9× avg).
Summary
BrightSpire flipped to Q3 GAAP net income of $46.9M, or $0.37 a share, from a $0.15 loss last quarter that was driven by a $13.5M credit reserve build and $9.3M of impairments. Cash-like earnings are thinner: Distributable Earnings came in at $0.08 a share and Adjusted Distributable Earnings at $0.14, the figure that matters for dividend coverage. Book value stands at $7.08 a share GAAP and $7.87 undepreciated, both well above the $3.76 stock price, so the shares still trade at a steep discount to NAV. The loan book has grown to roughly $3.1B, up about 30% year over year, and follows the $898.8M CRE CLO closed October 21 that locked in long-term non-recourse debt. The GAAP-to-ADE gap is the thing to dig into: $0.37 of GAAP EPS against $0.14 adjusted is a wide spread, and traders will want the composition of the marks before treating the headline number as recurring earnings power.
At the time of this announcement, BRSP was trading at $3.76 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $470.7M. The 52-week trading range was $3.56 to $6.17. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Wiseek News.