Earnings call transcript: BrightSpire Capital Q1 2025 misses EPS estimates

BrightSpire Capital Inc. reported its first-quarter 2025 earnings, revealing earnings per share (EPS) of $0.16, slightly below the forecasted $0.18. Revenue matched expectations at $63.66 million. Following the announcement, BrightSpire’s stock saw a decline of 1.88%, settling at $4.95 in after-hours trading. The company maintains an impressive 12.67% dividend yield and strong liquidity position, with current assets significantly exceeding short-term obligations. Despite the minor earnings miss, the company remains focused on maintaining its dividend and targeting significant portfolio growth. According to InvestingPro analysis, net income is expected to grow this year, with 7 additional key insights available to subscribers.

Key Takeaways

• BrightSpire Capital’s Q1 2025 EPS of $0.16 missed the forecast by $0.02.
• Revenue for the quarter was $63.66 million, aligning with predictions.
• The stock fell by 1.88% in after-hours trading following the earnings release.
• The company plans to maintain its dividend and target $1 billion in net portfolio growth.
• BrightSpire is trading at a 45% discount to its undepreciated book value.

Company Performance

BrightSpire Capital’s performance in the first quarter of 2025 highlights a challenging environment, with earnings slightly below expectations. The company reported a GAAP net income of $5.3 million or $0.04 per share, and distributable earnings of $11.4 million or $0.09 per share. With a current ratio of 10.38 and strong cash flow metrics, BrightSpire maintains a solid financial foundation despite recent challenges. InvestingPro data shows the company is currently trading below its Fair Value, suggesting potential upside opportunity. Detailed analysis and comprehensive metrics are available in the Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.

Financial Highlights

• Revenue: $63.66 million (in line with forecasts)
• Adjusted Distributable Earnings: $20.1 million ($0.16 per share)
• Current liquidity: $310 million
• Unrestricted cash: $145 million
• GAAP net book value: $7.92 per share

Earnings vs. Forecast

BrightSpire Capital’s EPS of $0.16 fell short of the $0.18 forecast, marking a miss of approximately 11%. This performance contrasts with the company’s previous quarters, where earnings generally met or exceeded expectations. The revenue matched forecasts, indicating stable top-line performance despite the earnings shortfall.

Market Reaction

Following the earnings release, BrightSpire’s stock price decreased by 1.88%, closing at $4.95 in after-hours trading. This movement reflects investor sentiment regarding the earnings miss. The stock remains within its 52-week range, with a high of $6.71 and a low of $4.16, indicating room for potential recovery. Analyst price targets range from $6.25 to $8.00, suggesting significant upside potential. The stock has shown notable volatility, with a beta of 1.61, while maintaining an 8.37% return over the past week.

Outlook & Guidance

Looking ahead, BrightSpire Capital plans to maintain its current dividend and target $1 billion in net portfolio growth. The company anticipates slower originations in the second quarter but aims for a return to $0.20 per share earnings. A CLO issuance is planned for the fourth quarter of 2025, which could support future growth initiatives.

Executive Commentary

CEO Mike Mazzie emphasized the company’s commitment to maintaining its dividend, stating, "We have no plans to cut the dividend." Mazzie also highlighted the company’s strategic focus, saying, "We’re always targeting a 12% return," underscoring BrightSpire’s growth ambitions despite market challenges.

Risks and Challenges

• Market volatility due to tariff discussions could impact future earnings.
• Spread widening in credit markets may affect borrowing costs.
• The commercial real estate debt market is still recovering from interest rate challenges.
• The company’s significant watch list loan exposure poses potential risks.
• Economic uncertainties could affect the company’s growth targets.

Q&A

During the earnings call, analysts inquired about the potential impact of interest rate cuts on borrowers and the company’s strategy for a large $70 million loan origination. CEO Mazzie confirmed ongoing efforts to resolve issues with a San Jose hotel loan and maintained an optimistic outlook despite market challenges.

Full transcript - Brightspire Capital Inc (BRSP) Q1 2025:

Conference Operator: Good day, and welcome to the BrightSpire Capital Inc. First Quarter twenty twenty five Earnings Call. All participants will be in a listen only mode. After today’s presentation, there will be an opportunity to ask questions. Please note that this event is being recorded.

I would now like to turn the conference over to David Palame, General Counsel. Please go ahead.

David Palame, General Counsel, BrightSpire Capital: Good morning, and welcome to BrightSpire Capital’s First Quarter twenty twenty five Earnings Conference Call. We will refer to Brightspire Capital as Brightspire, BRSP or the company throughout this call. Speaking on the call today are the company’s Chief Executive Officer, Mike Mazzie President and Chief Operating Officer, Andy Witt and Chief Financial Officer, Frank Saracino. Before I hand the call over, please note that on this call, certain information presented contains forward looking statements. These statements, which are based on management’s current expectations, are subject to risks, uncertainties and assumptions.

Potential risks and uncertainties could cause the company’s business and financial results to differ materially. For a discussion of risks that could affect results, please see the Risk Factors section of our most recent 10 ks and other risk factors and forward looking statements in the company’s current and periodic reports filed with the SEC from time to time. All information discussed on this call is as of today, 04/30/2025, and the company does not intend and undertakes no duty to update for future events or circumstances. In addition, certain financial information presented on this call represents non GAAP financial measures. The company’s earnings release and supplemental presentation, which was released yesterday afternoon and is available on the company’s website, presents reconciliations to the appropriate GAAP measures and an explanation of why the company believes such non GAAP financial measures are useful to investors.

Before I turn the call over to Mike, I’ll provide a brief recap on our results. The company reported first quarter GAAP net income attributable to common stockholders of $5,300,000 or $04 per share. Distributable earnings of $11,400,000 or zero nine dollars per share and adjusted distributable earnings of $20,100,000 or $0.16 per share. Current liquidity stands at $310,000,000 of which $145,000,000 is unrestricted cash. This is exclusive of approximately 56,000,000 of approved but undrawn borrowings available on our warehouse lines.

The company also reported GAAP net book value of $7.92 per share and undepreciated book value of $8.75 per share as of 03/31/2025. Finally, during this call, management may refer to distributable earnings as DE. With that, I would now like to turn the call over to Mike.

Mike Mazzie, Chief Executive Officer, BrightSpire Capital: Thanks, David, and welcome to our first quarter earnings call. Since our last call a couple of months ago, there’s been tremendous market volatility primarily due to ongoing tariff discussions. The credit markets experienced spread widening across the board. We have all witnessed the net breaking swings in both the equity and U. S.

Treasury markets. But at this very moment, given the headwinds commercial real estate has already been facing these past two plus years, we feel CRE lenders are much better positioned for this current environment. And while CRE credit spreads are wider, direct lenders and warehouse banks have not withdrawn from the market. So despite these post quarter uncertainties, we’re off to a productive start and our priorities and goals remain unchanged. Starting at the end of twenty twenty four and continuing into this year, we have seen a considerable increase in loan inquiries.

We are now actively evaluating and quoting new loans daily. However, the CRE debt markets are still falling out from the interest rate bubble where many owners are dealing with their current debt levels. Borrowers are frequently seeking transactions that are equity neutral to the existing financing, which poses some challenges for refinancing. On the acquisition financing side, we are seeing a pickup in investment sales. However, transaction volume remains substantially below historic levels.

That said, we remain optimistic as we continue to see more lenders encouraging borrowers to go to market to sell or refinance, thus steadily increasing pipeline volume across the board. After years of loan modifications and credit reserves, this is now increasingly becoming a lender driven transaction market. Shifting gears to portfolio management, we are very encouraged by the progress we have made thus far. For the first time since 2022, we have experienced year to date deployments outpacing repayments. Additionally, our CECL levels have remained stable quarter over quarter, and we reduced our watch list exposure on the margin.

Regarding REO assets, we are in the final stages of exiting our Phoenix multifamily property and anticipate selecting a buyer imminently. We are also experiencing an uptick in leasing inquiries for our Long Island City properties. The Manhattan leasing market continues to recover. On the supply side, ongoing office to residential conversions, combined with a decrease in sublet space, and along with the fact that many office owners lack the necessary capital to retain or compete for tenants, have all contributed to a tightening of available space. These factors, along with the return to work trends, are leading to an increase in marginal demand for Class B buildings both inside and outside of Manhattan, including Long Island City.

Finally, as I touched on earlier, we are currently navigating complex market dynamics. Since the April, the mortgage REIT sector has experienced a significant decline in valuation. At quarter end, we repurchased approximately 200,000 shares at an average price of $5.59 Specifically, BrightSpire is currently trading at a roughly 45% discount to its undepreciated book value. This equates to a discount of over $500,000,000 to a book value, which is already inclusive of a CECL reserve of $1.19 per share. Needless to say, at a 13% dividend yield, we find our stock price to be extremely compelling and we’ll express ourselves accordingly.

In closing, this quarter was steady and in line with our expectations. Our CECL and risk ratings remain stable, and we continue capital into new loans. Despite recent turbulence, we remain very optimistic about continuing to improve our balance sheet and maintaining our dividend while regrowing earnings. And with that, I will turn the call over to our President, Andy Witt. Andy?

Andy Witt, President and Chief Operating Officer, BrightSpire Capital: Thank you, Mike. Focusing on the first quarter, we received $133,000,000 in repayments across nine loans, including five full payoffs, of which two were office loans totaling 50,000,000 Additionally, we sold one REO office property for $5,000,000 resulting in aggregate repayments and resolution proceeds of $138,000,000 New loan commitments during the quarter and subsequent to quarter end totaled $182,000,000 across five new loan originations. In addition, we funded $8,000,000 of future fundings during the first quarter. As of quarter end, future funding obligations stand at $111,000,000 or 4% of outstanding commitments. The loan portfolio consists of 74 investments with an average loan balance of $33,000,000 During the quarter, we continued to make progress on the watch list loans and REO, although most of the tangible results of those efforts will flow through our reporting in subsequent quarters.

As it relates to the owned real estate investments, the Phoenix multifamily property sales process garnered significant interest by the investment community, evidencing robust demand for the property type. We believe the value add plan executed under BrightSpire’s ownership, stabilizing the asset of market occupancy, contributed meaningfully to the interest level received during this marketing process. At present, we are in the process of selecting a buyer and anticipate closing the transaction this summer. We anticipate the resolution of this investment will be substantially in line with our stated net asset value. We are using the successful execution of the Phoenix multifamily property value add plan as the blueprint for driving value as it relates to two remaining REO multifamily properties located in Arlington, Texas and Fort Worth, Texas, as well as another property in Mesa, Arizona.

In all cases, we have taken control of the property, inserted new property level leadership, and initiated value add business plans. The business plans, which are well underway, include rebranding, improving curb appeal, addressing deferred maintenance, and renovating units, all of which will drive increased occupancy and cash flow. We anticipate marketing the properties for sale upon stabilization in late twenty twenty five. On the office front, we are encouraged by the recent leasing momentum in Long Island City. We have signed one full floor lease and are in very early stage negotiations with a tenant for multiple floors.

The New York City office market is becoming increasingly tight, and this should trickle over to Long Island City. We continue to make steady progress toward enhancing the value of the properties, with the goal of ultimately disposing of our own real estate investments. Lastly, as it relates to the watch list, our San Jose hotel loan remains in default, although we have made substantive progress toward foreclosure. The borrower was successful in obtaining a TRO, which is expected to be resolved in short order. The total number of watch list loans for the quarter was unchanged at seven loans.

However, the composition of our watch list changed due to one resolution and one addition to the watch list. BrightSpire, in cooperation with the borrower, executed on the sale of the Denver, Colorado multifamily loan, in line with our CECL adjusted basis. And we added one Austin, Texas multifamily loan due to uncertainty around the borrower’s commitment to the property in the face of a pending interim maturity. As of quarter end, watch list loan exposure stands at $396,000,000 in aggregate or 16% of the loan portfolio, a reduction of $15,000,000 quarter over quarter. As a reminder, the San Jose Hotel loan accounts for approximately one third of the remaining aggregate watchlist loan balance.

With that, I will turn the call over to Frank Serracino, our Chief Financial Officer, to elaborate on the first quarter results. Frank?

Frank Saracino, Chief Financial Officer, BrightSpire Capital: Thank you, Andy, and good morning, everyone. For the first quarter, we generated adjusted DE of $20,100,000 or $0.16 per share. First quarter DE was $11,400,000 or $09 per share. DE includes a specific reserve on a senior loan of approximately $9,000,000 Additionally, we reported total company GAAP net income of $5,300,000 or $04 per share. Quarter over quarter, total company GAAP net book value decreased to $7.92 per share from $8.08 in the fourth quarter.

Undepreciated book value decreased to $8.75 per share from $8.89 The change is mainly attributable to equity granted as part of our annual compensation program and consistent with past practice. I would like to quickly bridge the first quarter adjusted distributable earnings of zero one six dollars versus the $0.18 recorded in the fourth quarter. The change is primarily driven by lower interest rates, repayments and placing our risk rank five Santa Clara California multifamily predevelopment land loan on non accrual, offset by lower borrowing costs and new originations. Looking at reserves, during the first quarter we recorded specific CECL reserves of approximately $9,000,000 related to the resolution of the Denver, Colorado multifamily loan Andy mentioned. As the loan was resolved, we charged off the reserves.

Additionally, we charge off reserves associated with the Mesa, Arizona loan, where we took control of the property through a preferred equity instrument and moved it to REL. Our general CECL provision stands at $156,000,000 or six zero eight basis points on total loan commitments. This is a decrease of approximately $10,000,000 from the prior quarter. As the CECL provision is flat quarter over quarter, the decrease is primarily driven by the charge offs. Our debt to assets ratio is 64% and our debt to equity ratio is two point zero times, a small decrease from 4Q.

We have no corporate debt or final facility maturities due until 2027. Our debt to equity ratio for our senior loan portfolio only is 2.8 times, a decrease from 3.5 times leverage we had in Q4. The decrease is mainly a result of delevering. Lastly, our liquidity as of today stands at approximately $310,000,000 This comprises $145,000,000 of current cash as well as $165,000,000 under our credit facility. This excludes approximately $56,000,000 of approved but undrawn borrowings available on our warehouse lines.

This concludes our prepared remarks. And with that, let’s open it up for questions. Operator?

Conference Operator: Thank you. We will now begin the question and answer session. If at any time your question has been addressed and you would like to withdraw your question, please press then 2. In the interest of time, please limit yourself to one question and one follow-up. We will now pause momentarily to assemble our roster.

And your first question today will come from Steve Delaney with Citizens JMP. Please go ahead.

Steve Delaney, Analyst, Citizens JMP: Good morning, everyone. Thanks for taking the question. Could you first, could you just let me know what the remaining buyback authorization was at March 31 or as of today? That’d be appreciated. Thanks.

: David, do you know the share repurchase

David Palame, General Counsel, BrightSpire Capital: program was repurchased at $50,000,000 reapproved at $50,000,000 for the upcoming year.

Andy Witt, President and Chief Operating Officer, BrightSpire Capital: That’s for all of 2025,

David Palame, General Counsel, BrightSpire Capital: right? Extending from now for a year from the end of this Oh, forward to today. Great.

Steve Delaney, Analyst, Citizens JMP: Correct. Yeah, that’s healthy. Thank you very much. And just big picture stepping back, I mean, Mike commented about the kind of macro stuff we’ve been watching the last two or three weeks and the tenures almost down 50 basis points over that period and it looks like it wants to go to four. Lower rates, you’re in the real estate business or you lend on real estate.

Can you just comment big picture, the impact of these lower rates on your portfolio, I guess more importantly on your borrowers, their demand for new loans and certainly in your DCS and all, the impact of this move and longer term rates on property values, especially if you’re trying to market your REO? Thanks.

Mike Mazzie, Chief Executive Officer, BrightSpire Capital: Okay, thank you. As we’ve said before, lowering the short end of the curve, which we think has to happen given where and I believe my friend Brian Harris made this comment on his call where the two year treasury is now 70 basis points lower than Fed funds. And that’s kind of a signal that we think the Fed is going to follow suit, if not May, certainly we think in July and with the GDP contraction number this morning and the employment number, which everyone has eyes on for Friday, which could be weak. We expect that the Fed will move in July and start easing more on the front end. With regard to the long end, the Secretary of Treasury has made comments that they want to help Main Street and get long rates down.

We think that there are headwinds against that with the amount of supply that has to come and the deficit that we still have. But with these recessionary wins out there and the behavior of consumers and corporate CEOs who are pausing on CapEx, We’re concerned that those, the workings of a recession are starting to go into place now where there’s a pullback. So you could start to see that we’d be reflected in rates. And all that is very good, unless we get into an employment situation where we’re seeing unemployment levels go up much higher and that will affect all of real estate. So as long as we don’t see any massive pop in unemployment, Generally coming back on these rates is going to help borrowers get refinancing.

Spreads may widen as rates come down, spreads tend to widen. But that’ll be great for borrowers unless there’s something underlying the economy that’s really showing weakness. And it’s better for the credit performance of our portfolio. The fact that our borrowers are short term borrowers at maturity date or extension dates where they can go out and purchase interest rate caps at much lower levels than they’re doing today. That’s all a super positive.

Steve Delaney, Analyst, Citizens JMP: Thanks, Mike. Appreciate everybody’s comments.

Conference Operator: And your next question today will come from Jason Weaver with Jones Trading. Please go ahead.

Steve Delaney, Analyst, Citizens JMP: Hey, good morning, guys. Thanks for taking my question. First, you mentioned in your prepared remarks the sense of the healthy pipeline out there. But I’m curious if you’ve had any conversations or any sort of indications among borrowers in terms of hesitancy to take down loan demand with all the sort of macro uncertainty they’re saying?

Mike Mazzie, Chief Executive Officer, BrightSpire Capital: Borrowers need to get out from their existing debt today, period. And so there’s a need. There’s definitely a need for refinancing. As I said on the call, the issue is the inquiry is pretty massive. But in terms of actionable deals, we’re finding that borrowers really obviously want to get out without putting equity into the properties.

And that’s been the headwind right now. The question is, how much is an existing lender requiring from that borrower from a pay down versus what that borrower can get in the open market? Can the borrower get better terms than what an existing lender is asking for in terms of reduction in debt at a maturity date or reserves or things like that or equity in the deal. So we’re seeing a lot of inquiry. The amount did pause a little bit with the tariff issue that we had in April and certainly we had two weeks of a holiday.

So we are going to see a little bit of a dip on our side in originations for Q2. But by and large, the inquiry is there. It’s just a matter of finding the right deals where we feel like the borrowers either putting in equity or we feel that the aspirations for the property are positive enough where we can take them out of that current debt.

Steve Delaney, Analyst, Citizens JMP: Thank you. That’s very helpful actually. And then for the $182,000,000 you originated during the quarter, where would you ballpark just levered return there, the ROE?

Mike Mazzie, Chief Executive Officer, BrightSpire Capital: We’re always targeting a 12.

Steve Delaney, Analyst, Citizens JMP: Got it. Thank you very much.

Conference Operator: And your next question today will come from John Nicodemus with BTIG. Please go ahead.

John Nicodemus, Analyst, BTIG: Good morning, everyone. You mentioned on your last call that based on your repayment schedule at the time, you need to do about $1,000,000,000 in originations this year to sustain and hopefully grow your dividend. So, two questions. Is that still the case based on the current repayment schedule? And then if so, how is your origination pipeline trending to meet this goal?

Thanks.

Mike Mazzie, Chief Executive Officer, BrightSpire Capital: Thank you. It’s a little bit hard to forecast. As I said in the prepared remarks, the market is still flying out and this is becoming a very lender driven market. And the drivers behind that are much different than a typical market. So a little hard to forecast.

As I said, loan inquiry is up, but the number of actionable deals still remains a little bit on the challenge side as borrowers don’t want to put equity into the deal to recapitalize the properties. Let me make this a lot easier. What we need to do to get back to circa $0.20 a share is we need to get the portfolio back up to $3,500,000,000 So right now it stands at $2,400,000,000 So we need to keep abreast of payments and we have to have a net gain on the portfolio between now and let’s say a year from now of about $1,000,000,000 net gain to about $3,500,000,000 which would bring us up to about low 3 times leverage, 3.3 times leverage on the portfolio if we get there. Over the course of the year, we expect that there could be some leakage as the timing of all this in terms of originations, resolution on the watch list, resolution on the REO and repayments. We do expect that there will be some leakage.

We could obviously avoid that if we have a big pull forward on origination. But as I said, we think Q2 is going to be relatively quiet compared to Q1. So the business plan right now is maintain the dividend. We have no plans to cut the dividend, get the portfolio from 2,400,000,000.0 to $3,500,000,000 and get the leverage from roughly high 2s to low 3s, 3.3 times. And that should get us that coupled with resolution of a watch list scenario, that should get us back to something in the area of $0.20

John Nicodemus, Analyst, BTIG: Great. Thanks so much, Mike. That’s super helpful. And then my follow-up also has to do with originations going forward, specifically the $70,000,000 you committed subsequent to quarter end on one new loan. We noticed that this is now one of your largest loans and the first you’ve done of this size since early twenty twenty one.

Just be curious to hear about this deal, kind of how it came about and what compelled the team to pursue such a large loan for the first time in years? Thank you.

Mike Mazzie, Chief Executive Officer, BrightSpire Capital: Andy, do you want to take that?

Andy Witt, President and Chief Operating Officer, BrightSpire Capital: Sure, Mike. Related to this loan, this is a repeat sponsor on a stabilized property. And it really does fall within our loan size range. We’re usually targeting loans somewhere between 50,000,000 and $80,000,000 So I think it’s very consistent with what we’re doing. And it’s a stabilized property.

The business plan is to hold the asset, do some things at the margin and then ultimately sell.

Mike Mazzie, Chief Executive Officer, BrightSpire Capital: This was a transaction that was done at a slightly tighter spread than what we were seeing in the market. But regarding tight spreads, we agree that spreads have gotten very tight and we were skeptical about transacting at these levels. But the bank warehouse lenders have really kept abreast of the market. And so we were able to get financing on this asset that kept the ROE targets in line with our goals.

John Nicodemus, Analyst, BTIG: Great. Thank you so much, Mike and Andy. Appreciate the color.

Conference Operator: And your next question today will come from Randy Binner with B. Riley. Please go ahead.

Randy Binner, Analyst, B. Riley: Hey, good morning. Thanks. Just looking at page 13 of the deck in the San Jose hotel property, we’ve seen some reports in

: the media

Randy Binner, Analyst, B. Riley: that there could be some progress happening for refinancing there. And so just wondering if we can get an update on that particular property just because it is a relatively large size of the overall watch list.

Mike Mazzie, Chief Executive Officer, BrightSpire Capital: Yes, thank you. It is one third of the watch list. That is an asset where we actually delevered the asset and paid off the financing on that, which is one of the bigger uses of cash this quarter. So that asset is unlevered. And so that’s why we’re anxious to repatriate that capital.

I really don’t want to comment too much because it wouldn’t be commercial to do so given the fact that we have a foreclosure process going on with the asset. As Andy said in the prepared remarks, there was a TRO that was granted. We expect that to get resolved very soon. I’m not going to comment on what the borrower is trying to do. We applaud efforts there, but I really think it’s not commercial for me to go any deeper than that.

We do think though this has been going on for a while and we think the resolution and I know we sound like a broken record because we’ve been talking about this for quarters, but we really are at we think at the end of the rope here in terms of a resolution of the asset.

Randy Binner, Analyst, B. Riley: Okay, thank you. And then on just one on the model, the property operating expense in the quarter was a little bit elevated relative to our expectation and kind of as a percentage of just overall NII. There anything kind of unusual? I mean, maybe it’s a million bucks, but was there anything unusual this quarter that would not be non trendable?

Frank Saracino, Chief Financial Officer, BrightSpire Capital: Not really. Mean, remember, we foreclosed on a property in the fourth quarter, so you’d have some of that. And then there is the one that we took ownership of or took control of during the quarter, that added operating expense as well. So two kind of new items that you only had part of in the fourth quarter and a new one in the first quarter.

Randy Binner, Analyst, B. Riley: Okay, that’s helpful. Thank you.

Conference Operator: And your next question today will come from Gaurav Mehta with Alliance Global Partners. Please go ahead.

: Yeah. Thank you. Good morning. I I wanted to follow-up on your comments around leverage. I think on the last earnings call, you talked about expectations of a new CLO issuance, maybe in the second half of twenty twenty five.

Just wanted to get an update on CLO market and if it’s still your expectation to have a CLO issuance this year?

Mike Mazzie, Chief Executive Officer, BrightSpire Capital: That’s still the goal. We do think that we’ll get more done in the second half of the year on originations. And it’s always a plan to clean out the warehouse lines where we can and execute on a CLO. And I think executing on a CLO in the fourth quarter of the year is all part of getting the portfolio levered to the point where we can get back to that $0.20 a share in earnings. So the expectations are that we’ll continue to do that.

We do recognize that the CLO market widened during the month of April, but that is slowly started to tighten over the course of the end of the month and into today. So expectations are that we will plan to do a CLO in the fourth quarter.

: Okay. And then second question I wanted to ask on the earnings. I don’t know if I missed in your prepared remarks, but what was the earnings from cash flow this quarter?

Frank Saracino, Chief Financial Officer, BrightSpire Capital: I’m sorry? Earnings from cash flow this quarter $0.11

Mike Mazzie, Chief Executive Officer, BrightSpire Capital: Okay. All

: right. Thank you. That’s all I had.

Conference Operator: This concludes our question and answer session. I would like to turn the conference back over to Michael Mazze for any closing remarks.

Mike Mazzie, Chief Executive Officer, BrightSpire Capital: Well, thank you for joining us. We want to post you that we will be at NAREIT on June. For those that are here in the city, would like to schedule a meeting or a virtual meeting, please don’t hesitate to reach out. Otherwise, we will see you again in July. Thank you.

Conference Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.

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