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BRSP BrightSpire Capital

Colony Credit Real Estate is one of the largest 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 the company expects to be the primary investment strategy. Colony Credit Real Estate is externally managed by a subsidiary of leading global digital real estate and investment management firm, Colony Capital, Inc. Colony Credit Real Estate is organized as a Maryland corporation and taxed as a REIT for U.S. federal income tax purposes.

Company profile

Ticker
BRSP
Exchange
CEO
Michael J. Mazzei
Employees
Incorporated
Location
Fiscal year end
Former names
Colony Credit Real Estate, Inc., Colony NorthStar Credit Real Estate, Inc.
SEC CIK
Subsidiaries
CLNC Waterfront, LLC • ColCredit Oceanside, LLC • Credit RE Operating Company, LLC • Credit RE Holdco, LLC • NorthStar Real Estate Income Trust Operating Partnership, LLC • NorthStar Real Estate Income Operating Partnership • NRFC DB Loan Member, LLC • NRFC DB Loan, LLC • NS Income DB Loan Member, LLC • NS Income DB Loan, LLC ...
IRS number
384046290

BRSP stock data

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Calendar

5 Aug 21
28 Oct 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 292.02M 292.02M 292.02M 292.02M 292.02M 292.02M
Cash burn (monthly) 65.44M 19.16M 7.92M 15.8M 43.42M 5.15M
Cash used (since last report) 258.47M 75.68M 31.27M 62.41M 171.51M 20.35M
Cash remaining 33.55M 216.34M 260.75M 229.61M 120.51M 271.67M
Runway (months of cash) 0.5 11.3 32.9 14.5 2.8 52.7

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
13 Oct 21 Kim S Diamond Class A Common Stock Grant Acquire A No No 0 5,690 0 5,690
18 Aug 21 Andrew Elmore Witt Class A Common Stock Buy Acquire P No No 9.43 10,000 94.3K 214,386
17 Aug 21 Mazzei Michael Class A Common Stock Buy Acquire P No No 9.26 25,000 231.5K 522,973
16 Aug 21 Mazzei Michael Class A Common Stock Buy Acquire P No No 9.478 75,000 710.85K 497,973

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

37.0% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 2 154 -98.7%
Opened positions 0 21 EXIT
Closed positions 152 23 +560.9%
Increased positions 1 49 -98.0%
Reduced positions 0 53 EXIT
13F shares
Current Prev Q Change
Total value 417.59M 760.58M -45.1%
Total shares 48.05M 89.56M -46.3%
Total puts 0 27.6K EXIT
Total calls 0 13.4K EXIT
Total put/call ratio 2.1
Largest owners
Shares Value Change
DBRG DigitalBridge 48.02M $417.26M +0.0%
Selective Wealth Management 39.07K $333K 0.0%
Largest transactions
Shares Bought/sold Change
BLK Blackrock 0 -8.36M EXIT
Vanguard 0 -7.48M EXIT
Nut Tree Capital Management 0 -6.09M EXIT
STT State Street 0 -1.73M EXIT
Geode Capital Management 0 -1.35M EXIT
PRU Prudential Financial 0 -1.02M EXIT
ATAC Neuberger Berman 0 -974.49K EXIT
NTRS Northern Trust 0 -899.55K EXIT
Hotchkis & Wiley Capital Management 0 -743.53K EXIT
FMR 0 -718.52K EXIT

Financial report summary

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Risks
  • The novel coronavirus pandemic, measures intended to prevent its spread and government actions to mitigate its economic impact have had and may continue to have a material adverse effect on our business, results of operations and financial condition.
  • Our inability to access funding or the terms on which such funding is available could have a material adverse effect on our financial condition, particularly in light of ongoing market dislocations resulting from the COVID-19 pandemic.
  • In connection with the market disruptions resulting from the COVID-19 pandemic, we changed our interest rate hedging strategy and closed out of, or terminated a portion of our interest rate hedges, incurring realized losses. As a result, interest rate risk exposure that is associated with certain of our assets and liabilities is no longer being hedged in the manner that we previously used to address interest rate risk and our revised strategy to address interest rate risk may not be effective and could result in the incurrence of future realized losses.
  • We depend upon our Manager, Colony Capital and their key personnel for our success. The loss of or the inability to obtain key investment professionals at our Manager, Colony Capital or their affiliates, or limits on or the loss of Colony Capital’s support to us or our Manager, could delay or hinder implementation of our investment strategy.
  • If the management agreement is terminated, we may not be able to successfully internalize the management of the Company or find a suitable replacement for our Manager and our business, results of operations and financial condition could be adversely affected.
  • There are various conflicts of interest in our relationship with our Manager, Colony Capital and their affiliates, which could result in decisions which are not in the best interest of our stockholders.
  • Our Manager and its affiliates receive fees in connection with the management of our investments regardless of their quality or performance. As a result, our Manager may be incentivized to allocate investments that have a greater cost to increase the amount of fees payable to them.
  • Our ability to achieve our investment objectives and to pay distributions depends in substantial part upon the performance of our Manager and third-party servicers. Any adverse changes in our Manager and its affiliates’ financial health, the public perception of our Manager, or our relationship with our Manager or its affiliates could hinder our operating performance and the return on stockholders’ investment.
  • Our Manager may not be successful, or there may be delays, in locating or allocating suitable investments, which could limit our ability to make distributions and lower the overall return on stockholders’ investment.
  • Our Manager manages our portfolio pursuant to investment guidelines and is not required to seek the approval of our Board of Directors for each investment, financing, asset allocation or hedging decision made by it (subject to the net commitment thresholds set forth in our investment guidelines), which may result in riskier loans and investments and which could adversely affect our results of operations and financial condition.
  • The Management Agreement with our Manager was negotiated among related parties and may not be as favorable to us as if it had been negotiated with an unaffiliated third party and may be costly and difficult to terminate.
  • To the extent permitted by law, our Manager maintains a contractual as opposed to a fiduciary relationship with us. Our Manager’s liability is limited under the Management Agreement, and we have agreed to indemnify our Manager against certain liabilities.
  • We have not established a minimum distribution payment level, and we cannot assure you of our ability to pay distributions in the future.
  • Certain provisions of Maryland law may limit the ability of a third party to acquire control of us.
  • Ownership limitations may delay, defer or prevent a transaction or a change in our control that might involve a premium price for our common stock or otherwise be in the best interest of our stockholders.
  • Our charter contains provisions that make removal of our directors difficult, which makes it more difficult for our stockholders to effect changes to our management and may prevent a change in control of our Company that is otherwise in the best interests of our stockholders.
  • Our charter permits our Board of Directors to issue stock with terms that may subordinate the rights of our common stockholders or discourage a third party from acquiring us in a manner that could result in a premium price to stockholders.
  • Our umbrella partnership real estate investment trust, or UPREIT, structure may result in potential conflicts of interest with members of our operating company whose interests may not be aligned with those of stockholders.
  • Failure to obtain, maintain or renew required licenses and authorizations necessary to operate our mortgage-related activities may have a material adverse effect on us.
  • Failure to implement effective information and cyber security policies, procedures and capabilities could disrupt our business and harm our results of operations.
  • We do not own the Colony Capital name, but have entered into a license agreement with an affiliate of Colony Capital granting us the right to use the Colony Capital name. Use of the name by other parties or the termination of our license agreement may harm our business.
  • The B-Notes that we have acquired and may acquire in the future may be subject to additional risks related to the privately negotiated structure and terms of the transaction, which may result in significant operating losses to us and may limit our ability to make distributions to our stockholders.
  • The mezzanine loan assets that we have acquired and may acquire in the future will involve greater risks of loss than senior loans secured by income-producing properties.
  • Participating interests may not be available and, even if obtained, may not be realized.
  • Any distressed loans or investments we make, or loans and investments that later become distressed, may subject us to losses and other risks relating to bankruptcy proceedings.
  • Provisions for loan losses and impairment charges are difficult to estimate, particularly in a challenging economic environment and if they turn out to be incorrect, our results of operations and financial condition could be materially and adversely impacted.
  • We invest in preferred equity interests, which involve a greater risk than conventional senior, junior or mezzanine debt financing.
  • We invest in commercial properties subject to net leases, which could subject us to losses.
  • We invest in CRE securities, including CMBS and collateralized debt obligations (“CDOs”), which entail certain heightened risks and are subject to losses.
  • Adverse changes in general economic conditions could adversely impact our business, financial condition and results of operations.
  • We are subject to significant competition, and we may not be able to compete successfully for investments, which could have a material adverse effect on our business, financial condition and results of operations.
  • We may not have control over certain of our loans and investments.
  • Most of the commercial mortgage loans that we originate or acquire are non-recourse loans.
  • We may be subject to risks associated with future advance or capital expenditure obligations, such as declining real estate values and operating performance.
  • We may be unable to restructure our investments in a manner that we believe maximizes value, particularly if we are one of multiple creditors in a large capital structure.
  • We have invested in, and may continue to invest in, certain assets with lower credit quality, which will increase our risk of losses and may reduce distributions to stockholders and may adversely affect the value of our common stock.
  • Insurance may not cover all potential losses on CRE investments, which may impair the value of our assets.
  • We depend on borrowers and tenants for a substantial portion of our revenue and, accordingly, our revenue and our ability to make distributions to stockholders will be dependent upon the success and economic viability of such borrowers and tenants.
  • The leases at the properties underlying CRE debt investments or the properties held by us may not be relet or renewed on favorable terms, or at all, which may result in a reduction in our net income, and as a result we may be required to reduce or eliminate cash distributions to stockholders.
  • Because real estate investments are relatively illiquid, we may not be able to vary our portfolio in response to changes in economic and other conditions, which may result in losses to us.
  • Our joint venture partners could take actions that decrease the value of an investment to us and lower our overall return.
  • Our investments that are not denominated in U.S. dollars subject us to currency rate exposure and may adversely impact our status as a REIT.
  • Our operations in Europe and elsewhere expose our business to risks inherent in conducting business in foreign markets.
  • Inflation in foreign countries, along with government measures to curb inflation, may have an adverse effect on our investments.
  • Our indebtedness may subject us to increased risk of loss and could adversely affect our results of operations and financial condition.
  • Our master repurchase agreements impose, and additional lending facilities may impose, restrictive covenants, which would restrict our flexibility to determine our operating policies and investment strategy and to conduct our business.
  • Interest rate fluctuations could reduce our ability to generate income on our investments and may cause losses.
  • Hedging against interest rate and currency exposure may adversely affect our earnings, limit our gains or result in losses, which could adversely affect cash available for distribution to our stockholders.
  • We use short-term borrowings to finance our investments, and we may need to use such borrowings for extended periods of time to the extent we are unable to access long-term financing. This may expose us to increased risks associated with decreases in the fair value of the underlying collateral, which could have an adverse impact on our results of operations.
  • We are subject to risks associated with obtaining mortgage financing on our real estate, which could materially adversely affect our business, financial condition and results of operations and our ability to make distributions to stockholders.
  • Any warehouse facilities that we may obtain in the future may limit our ability to acquire assets, and we may incur losses if the collateral is liquidated.
  • The loss of our Investment Company Act exclusion could require us to register as an investment company or substantially change the way we conduct our business, either of which may have an adverse effect on us and the value of our common stock.
  • Our Manager is subject to extensive regulation, including as an investment adviser in the United States, which could adversely affect its ability to manage our business.
  • We may pay taxable dividends in our common stock and cash, in which case stockholders may sell shares of our common stock to pay tax on such dividends, placing downward pressure on the market price of our common stock.
  • Our qualification as a REIT involves complying with highly technical and complex provisions of the Code.
  • We may incur adverse tax consequences if NorthStar I or NorthStar II were to have failed to qualify as a REIT for U.S. federal income tax purposes prior to the Mergers.
  • Dividends payable by REITs do not qualify for the preferential tax rates available for some dividends.
  • REIT distribution requirements could adversely affect our ability to execute our business plan.
  • Even if we continue to qualify as a REIT, we may face other tax liabilities that reduce our cash available for distribution to stockholders.
  • Complying with REIT requirements may force us to forgo and/or liquidate otherwise attractive investment opportunities.
  • The “taxable mortgage pool” rules may increase the taxes that we or our stockholders may incur, and may limit the manner in which we effect future securitizations.
  • Complying with REIT requirements may limit our ability to hedge effectively and may cause us to incur tax liabilities.
  • There is a risk of changes in the tax law applicable to REITs.
  • Our ownership of assets and conduct of operations through our TRSs is limited and involves certain risks for us.
  • Stockholders have limited control over changes in our policies and operations, which increases the uncertainty and risks they face as stockholders.
  • If we are unable to implement and maintain effective internal controls over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock could be negatively affected.
  • New accounting standards may result in a significant change to our recognition of credit losses.
  • Environmental compliance costs and other potential environmental liabilities associated with our current or former properties or our CRE debt or real estate-related investments could materially impair the value of our investments and expose us to material liability.
  • Laws, regulations or other issues related to climate change could have a material adverse effect on us.
  • There can be no assurance that our existing floating rate debt and hedging arrangements will continue to use LIBOR as a reference rate, that LIBOR will continue as a viable or appropriate reference rate and in the event that LIBOR is discontinued, which replacement rate will be used and whether such a rate will be adopted in the same way in the loan and hedge markets and perform in the same way as LIBOR would have at any time.
  • Changes in laws or regulations governing our operations, changes in the interpretation thereof or newly enacted laws or regulations and any failure by us to comply with these laws or regulations, could require changes to certain of our business practices, negatively impact our operations, cash flow or financial condition, impose additional costs on us, subject us to increased competition or otherwise adversely affect our business.
  • The market price of our common stock may fluctuate significantly.
  • Future offerings of debt or equity securities, which would rank senior to our common stock, may adversely affect the market price of our common stock.
  • We may issue additional equity securities, which may dilute your interest in us.
Management Discussion
  • •Generated U.S. GAAP net loss of $19.7 million, or $(0.15) per share and Distributable Earnings (Loss) of $27.1 million, or $(0.20) per share during the three months ended June 30, 2021.
  • Considerable uncertainty still surrounds COVID-19 and its potential effects, and the extent of and effectiveness of any responses taken on a national and local level. Accordingly, the COVID-19 pandemic has negatively impacted CRE credit REITs across the industry, as well as other companies that own and operate commercial real estate investments, including our company. As we manage the impact and uncertainties of the COVID-19 pandemic, cash preservation, liquidity and investment and portfolio management remain key priorities.
  • We continue to work closely with our borrowers and tenants to address the impact of COVID-19 on their business. To the extent that certain borrowers are experiencing significant financial dislocation we have and may continue to consider the use of interest and other reserves and/or replenishment obligations of the borrower and/or guarantors to meet current interest payment obligations, for a limited period. Similarly, we have and may in the future evaluate converting certain current interest payment obligations to payment-in-kind as a potential bridge period solution. We have in limited cases allowed some portions of current interest to convert to payment-in-kind.
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