BrightSpire Capital, Inc. (NYSE: BRSP) on Tuesday reported a GAAP net loss of $14.4 million, or $0.12 per share, for the fourth quarter of 2025, as the company moved to accelerate the resolution of troubled assets. Despite the net loss, the commercial real estate (CRE) credit REIT posted Adjusted Distributable Earnings of $19.3 million, or $0.15 per share, for the period.For the full year 2025, the company reported a GAAP net loss of $31.1 million, or $0.26 per share, while generating $83.6 million in Adjusted Distributable Earnings, or $0.64 per share. The company’s GAAP net book value stood at $7.30 per share as of December 31, 2025, down from $7.53 in the previous quarter.
Deployment Surge
BrightSpire committed $416 million across 13 new senior loans during the quarter, bringing its total 2025 deployment to $756 million. The reduction in our book value this past quarter was largely driven by the decision to accelerate REO (Real Estate Owned) and watchlist resolutions and redeploy the capital.
Portfolio Quality and Watchlist Reductions
The company’s loan portfolio stood at $2.7 billion at year-end, with multifamily assets comprising 67% of the total. BrightSpire is moving aggressively to clear its watchlist of stressed loans, which totaled $220 million, or 8% of the portfolio, as of December 31.
Subsequent to the quarter’s end, the company anticipates a nearly 70% decline in these watchlist loans due to recent repayments and foreclosures. Key post-quarter activities included:
Repayment of one risk-rank 5 office loan and one industrial loan totaling $42 million.
The expected sale of two multifamily loans totaling $67 million in early 2026.
Foreclosure on a $45 million multifamily loan, which will transition to the REO portfolio.
Liquidity and Capital Strength
BrightSpire maintained a total liquidity position of $168 million at year-end, including $98 million in unrestricted cash. The company also successfully executed a $955 million commercial real estate collateralized loan obligation (CRE CLO) shortly after the quarter closed, providing additional long-term financing at a cost of funds of 1.69%.
For the full year 2025, BrightSpire reported a GAAP net loss of $31.1 million, or $0.26 per share, while Adjusted Distributable Earnings of $0.64 per share fully covered the annual dividend. The company’s undepreciated book value ended the year at $8.44 per share.
2026 Outlook
Looking ahead to 2026, management indicated it would continue to focus on growing the portfolio and earnings through new originations while resolving the remaining REO and watchlist loans. As of year-end, watchlist loans totaled $220 million, though the company expects this to decline by approximately 70% following several post-quarter repayments and foreclosures.
