Key Highlights

  • BrightSpire Capital (BRSP) priced a $960 million CRE CLO backed by multifamily loans.
  • BRSP pays $0.16 per quarter, a Yield of about 15.65%; the next ex-dividend date is Sept. 30.
  • About $9.47 million traded versus a typical $5.72 million; the 14-day RSI is 25.7.

BrightSpire Capital (NYSE:BRSP) rose 1.0% to $4.09 after pricing a $960 million Commercial Real Estate collateralized Loan obligation backed by multifamily loans. The commercial Mortgage REIT yields about 15.6% and trades near its 52-week low with an RSI of 25.7, while Q2 losses and a BofA Underperform rating keep pressure on the dividend.

BrightSpire Capital's Dividend yield is about 15.6 percent. BrightSpire Capital makes commercial real estate loans, mostly to multifamily apartment owners. A CLO packages those loans into bonds sold to investors, giving BRSP long-term, non-mark-to-market funding at a time when banks are pulling back from commercial property lending.

The CLO market reopening for multifamily loans is a positive sign for the sector. BRSP's challenge is earnings: it posted a Q2 GAAP net loss of $18.3 million, even as it bought back the most stock in its history. BofA cut its target to $5.25 and rates it Underperform, while the broader consensus is Buy, with a 1.50 score and a target near $6.34.

BrightSpire Capital (BRSP) Bounces on the CLO News

BRSP traded between $3.98 and $4.09 and finished near the high. The $0.04 gain equaled about 0.3x the 14-day average true range of $0.12. The stock is down 28.5% year-to-date and 16.7% over the past month, and its 52-week range is $3.98 to $6.17. The market Capitalization is about $517 million.

BRSP Technical Levels

BRSP trades below its 20-day Moving Average of $4.46, its 50-day of $4.82 and its 200-day of $5.52.

The 14-day RSI is 25.7. RSI measures buying versus selling pressure on a 0 to 100 scale, and readings under 30 are oversold, often a point where declines slow.

MACD is -0.21, below its -0.19 signal line. MACD tracks momentum, and a reading below the signal line means sellers still have the edge.

ADX is 49.0. ADX measures trend strength, and readings near 50 signal a very strong downtrend.

Support is $3.98. Resistance is $4.40, then $4.57.

Debt and Revenue

BRSP carries $2.76 billion of reported Debt against $68.16 million of cash. Trailing-twelve-month Revenue was $336.00 million, down 0.1% year-over-year.