0001717547-23-000064 | 10-Q | XBRL Viewer

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 313,520	$ 306,320
Restricted cash	80,023	92,508
Loans and preferred equity held for investment	3,494,895	3,574,989
Current expected credit loss reserve	(145,836)	(106,247)
Loans and preferred equity held for investment, net	3,349,059	3,468,742
Real estate, net	714,725	732,468
Receivables, net	42,980	40,698
Deferred leasing costs and intangible assets, net	51,130	53,980
Other assets ($2,790 and $3,035 at fair value, respectively)	52,576	55,673
Total assets	4,604,013	4,750,389
Liabilities
Securitization bonds payable, net	1,132,692	1,167,600
Mortgage and other notes payable, net	644,512	656,468
Credit facilities	1,292,176	1,339,993
Accrued and other liabilities	84,256	87,633
Intangible liabilities, net	4,494	4,839
Escrow deposits payable	65,323	79,055
Dividends payable	25,989	25,777
Total liabilities	3,249,442	3,361,365
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	0	0
Common stock	1,299	1,289
Additional paid-in capital	2,853,123	2,853,723
Accumulated deficit	(1,496,865)	(1,466,568)
Accumulated other comprehensive income (loss)	(4,139)	(676)
Total stockholders’ equity	1,353,418	1,387,768
Noncontrolling interests in investment entities	1,153	1,256
Total equity	1,354,571	1,389,024
Total liabilities and equity	4,604,013	4,750,389
Primary beneficiary
Assets
Cash and cash equivalents	5,199	5,163
Restricted cash	6,759	7,831
Loans and preferred equity held for investment, net	1,372,099	1,444,398
Real estate, net	166,179	167,821
Receivables, net	12,716	11,869
Deferred leasing costs and intangible assets, net	9,921	10,956
Other assets ($2,790 and $3,035 at fair value, respectively)	21,697	21,977
Total assets	1,594,570	1,670,015
Liabilities
Securitization bonds payable, net	1,132,692	1,167,600
Mortgage and other notes payable, net	173,265	173,960
Accrued and other liabilities	5,946	5,026
Intangible liabilities, net	4,494	4,839
Escrow deposits payable	220	2,366
Total liabilities	$ 1,316,617	$ 1,353,791

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation

The accompanying unaudited interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented. However, the results of operations for the interim period presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, or any other future period. These interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in, or presented as exhibits to, the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

The accompanying consolidated financial statements include the accounts of the Company and its controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated. The portions of equity, net income and other comprehensive income of consolidated subsidiaries that are not attributable to the parent are presented separately as amounts attributable to noncontrolling interests in the consolidated financial statements.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates and assumptions.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its controlled subsidiaries. The portions of the equity, net income and other comprehensive income of consolidated subsidiaries that are not attributable to the parent are presented separately as amounts attributable to noncontrolling interests in the consolidated financial statements.

The Company consolidates entities in which it has a controlling financial interest by first considering if an entity meets the definition of a variable interest entity (“VIE”) for which the Company is deemed to be the primary beneficiary, or if the Company has the power to control an entity through a majority of voting interest or through other arrangements.

Variable Interest Entities

Variable Interest Entities—A VIE is an entity that either (i) lacks sufficient equity to finance its activities without additional subordinated financial support from other parties; (ii) whose equity holders lack the characteristics of a controlling financial interest; or (iii) is established with non-substantive voting rights. A VIE is consolidated by its primary beneficiary, which is defined as the party who has a controlling financial interest in the VIE through (a) power to direct the activities of the VIE that most significantly affect the VIE’s economic performance, and (b) obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. The Company also considers interests held by its related parties, including de facto agents. The Company assesses whether it is a member of a related party group that collectively meets the power and benefits criteria and, if so, whether the Company is most closely associated with the VIE. In performing the related party analysis, the Company considers both qualitative and quantitative factors, including, but not limited to: the amount and characteristics of its investment relative to the related party; the Company’s and the related party’s ability to control or significantly influence key decisions of the VIE including consideration of involvement by de facto agents; the obligation or likelihood for the Company or the related party to fund operating losses of the VIE; and the similarity and significance of the VIE’s business activities to those of the Company and the related party. The determination of whether an entity is a VIE, and whether the Company is the primary beneficiary, may involve significant judgment, including the determination of which activities most significantly affect the entities’ performance, and estimates about the current and future fair values and performance of assets held by the VIE.

Voting Interest Entities—Unlike VIEs, voting interest entities have sufficient equity to finance their activities and equity investors exhibit the characteristics of a controlling financial interest through their voting rights. The Company consolidates such entities when it has the power to control these entities through ownership of a majority of the entities’ voting interests or through other arrangements.

At each reporting period, the Company reassesses whether changes in facts and circumstances cause a change in the status of an entity as a VIE or voting interest entity, and/or a change in the Company’s consolidation assessment.

Changes in consolidation status are applied prospectively. An entity may be consolidated as a result of this reassessment, in which case, the assets, liabilities and noncontrolling interest in the entity are recorded at fair value upon initial consolidation. Any existing equity interest held by the Company in the entity prior to the Company obtaining control will be remeasured at fair value, which may result in a gain or loss recognized upon initial consolidation. However, if the consolidation represents an asset acquisition of a voting interest entity, the Company’s existing interest in the acquired assets, if any, is not remeasured to fair value but continues to be carried at historical cost. The Company may also deconsolidate a subsidiary as a result of this reassessment, which may result in a gain or loss recognized upon deconsolidation depending on the carrying values of deconsolidated assets and liabilities compared to the fair value of any interests retained.

As of March 31, 2023 and December 31, 2022, the Company had identified certain consolidated VIEs. As of December 31, 2022, the Company had identified certain unconsolidated VIEs. Assets of each of the VIEs, other than the OP, may only be used to settle obligations of the respective VIE. Creditors of each of the VIEs have no recourse to the general credit of the Company.

Consolidated VIEs

Consolidated VIEs include the Investing VIEs (as defined and discussed below) and certain operating real estate properties that have noncontrolling interests. At March 31, 2023 and December 31, 2022, the noncontrolling interests in the operating real

estate properties represent third party joint venture partners with ownership ranging from 5.0% to 11.0%. These noncontrolling interests do not have substantive kick-out nor participating rights.

Investing VIEs

The Company’s previous investments in securitization financing entities (“Investing VIEs”) included subordinate first-loss tranches of securitization trusts, which represented interests in such VIEs. As of March 31, 2023, the Company did not hold any tranches of any securitization trusts. During the three months ended December 31, 2022, the Company sold its remaining subordinate tranches of a securitization trust in one Investing VIE for which it had determined it was the primary beneficiary because it had the power to direct the activities that most significantly impacted the economic performance of the securitization trust. The Company’s subordinate tranches of the securitization trust, which represented the retained interest and related interest income, were eliminated in consolidation. As a result, all of the assets, liabilities (obligations to the certificate holders of the securitization trust, less the Company’s retained interest from the subordinate tranches of the securitization trust), income and expenses of the Investing VIE were presented in the consolidated financial statements of the Company although the Company legally owned the subordinate tranches of the securitization trust only. Regardless of the presentation, the Company’s consolidated financial statements of operations ultimately reflect the net income attributable to its retained interest in the subordinate tranches of the securitization trust.

The Company elected the fair value option for the initial recognition of the assets and liabilities of its consolidated Investing VIE. Interest income and interest expense associated with the Investing VIE are presented separately on the consolidated statements of operations, and the assets and liabilities of the Investing VIE are separately presented as “Mortgage loans held in securitization trusts, at fair value” and “Mortgage obligations issued by securitization trusts, at fair value,” respectively, on the consolidated balance sheets. Refer to Note 13, “Fair Value” for further discussion.

The Company has adopted guidance issued by the Financial Accounting Standards Board (“FASB”), allowing the Company to measure both the financial assets and liabilities of a qualifying collateralized financing entity (“CFE”), such as its Investing VIE, using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable. A CFE is a VIE that holds financial assets, issues beneficial interests in those assets and has no more than nominal equity, and the beneficial interests have contractual recourse only to the related assets of the CFE. As the liabilities of the Company’s Investing VIE are marketable securities with observable trade data, their fair value is more observable and is referenced to determine fair value of the assets of its Investing VIE. Refer to Note 13, “Fair Value” for further discussion.

Unconsolidated VIEs

As of March 31, 2023, the Company did not hold, and had no remaining obligations to, any unconsolidated VIEs. As of December 31, 2022, the Company held one investment which had no carrying value in an unconsolidated VIE to which the Company did not provide financial support during the year ended December 31, 2022.

Noncontrolling Interests

Noncontrolling Interests in Investment Entities—This represents interests in consolidated investment entities held by third party joint venture partners.

Allocation of net income or loss is generally based upon relative ownership interests held by equity owners in each investment entity, or based upon contractual arrangements that may provide for disproportionate allocation of economic returns among equity interests, including using a hypothetical liquidation at book value (“HLBV”) basis, where applicable and substantive. HLBV uses a balance sheet approach, which measures each party’s capital account at the end of a period assuming that the subsidiary was liquidated or sold at book value. Each party’s share of the subsidiary’s earnings or loss is calculated by measuring the change in the party’s capital account from the beginning of the period in question to the end of period, adjusting for effects of distributions and new investments.

Noncontrolling Interests in the Operating Partnership—Prior to the May 2022 redemption of the noncontrolling interests in the OP held by third parties, noncontrolling interests in the OP were allocated a share of net income or loss in the OP based on their weighted average ownership interest in the OP during the period. Noncontrolling interests in the OP had the right to require the OP to redeem part or all of the membership units in the OP for cash based on the market value of an equivalent number of shares of Class A common stock at the time of redemption, or at the Company’s election as managing member of the OP, through the issuance of shares of Class A common stock on a one-for-one basis. At the end of each reporting period,

noncontrolling interests in the OP were adjusted to reflect their ownership percentage in the OP at the end of the period, through a reallocation between controlling and noncontrolling interests in the OP, as applicable.

There are no noncontrolling interests in the OP and the OP is owned by the Company directly, and indirectly through the Company’s subsidiary, BRSP-T Partner, LLC.

Comprehensive Income (Loss)

The Company reports consolidated comprehensive income (loss) in separate statements following the consolidated statements of operations. Comprehensive income (loss) is defined as the change in equity resulting from net income (loss) and other comprehensive income (“OCI”). The components of OCI include unrealized gain (loss) on CRE debt securities available for sale for which the fair value option was not elected, gain (loss) on derivative instruments used in the Company’s risk management activities used for economic hedging purposes (“designated hedges”), and gain (loss) on foreign currency translation.

Fair Value Measurement

Fair value is based on an exit price, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Where appropriate, the Company makes adjustments to estimated fair values to appropriately reflect counterparty credit risk as well as the Company’s own credit-worthiness.

The estimated fair value of financial assets and financial liabilities are categorized into a three-tier hierarchy, prioritized based on the level of transparency in inputs used in the valuation techniques, as follows:

Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in non-active markets, or valuation techniques utilizing inputs that are derived principally from or corroborated by observable data directly or indirectly for substantially the full term of the financial instrument.

Level 3—At least one assumption or input is unobservable and it is significant to the fair value measurement, requiring significant management judgment or estimate.

Where the inputs used to measure the fair value of a financial instrument fall into different levels of the fair value hierarchy, the financial instrument is categorized within the hierarchy based on the lowest level of input that is significant to its fair value measurement.

Fair Value Option

The fair value option provides an option to elect fair value as an alternative measurement for selected financial instruments. Gains and losses on items for which the fair value option has been elected are reported in earnings. The fair value option may be elected only upon the occurrence of certain specified events, including when the Company enters into an eligible firm commitment, at initial recognition of the financial instrument, as well as upon a business combination or consolidation of a subsidiary. The election is irrevocable unless a new election event occurs.

The Company has elected the fair value option for its indirect interests in real estate through real estate private equity funds (“PE Investments”). The Company has previously elected the fair value option to account for the eligible financial assets and liabilities of its consolidated Investing VIEs in order to mitigate potential accounting mismatches between the carrying value of the instruments and the related assets and liabilities to be consolidated. The Company has adopted the measurement alternative allowing the Company to measure both the financial assets and financial liabilities of a qualifying CFE it consolidates using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable.

Business Combinations

Definition of a Business—The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. If substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then the set of transferred assets and activities is not a business. If not, for an acquisition to be considered a business, it would have to include an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., there is a continuation of revenue before and after the transaction). A substantive process is not ancillary or minor, cannot be replaced without significant costs, effort or delay or is otherwise considered unique

or scarce. To qualify as a business without outputs, the acquired assets would require an organized workforce with the necessary skills, knowledge and experience that performs a substantive process.

Asset Acquisitions—For acquisitions that are not deemed to be businesses, the assets acquired are recognized based on their cost to the Company as the acquirer and no gain or loss is recognized. The cost of assets acquired in a group is allocated to individual assets within the group based on their relative fair values and does not give rise to goodwill. Transaction costs related to the acquisition of assets are included in the cost basis of the assets acquired. Such valuations require management to make significant estimates and assumptions.

Business Combinations—The Company accounts for acquisitions that qualify as business combinations by applying the acquisition method. Transaction costs related to the acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred. The identifiable assets acquired, liabilities assumed and noncontrolling interests in an acquired entity are recognized and measured at their estimated fair values. The excess of the fair value of consideration transferred over the fair values of identifiable assets acquired, liabilities assumed and noncontrolling interests in an acquired entity, net of fair value of any previously held interest in the acquired entity, is recorded as goodwill. Such valuations require management to make significant estimates and assumptions.

Cash and Cash Equivalents

Cash and Cash EquivalentsShort-term, highly liquid investments with original maturities of three months or less are considered to be cash equivalents. The Company did not have any cash equivalents at March 31, 2023 or December 31, 2022. The Company’s cash is held with major financial institutions and may at times exceed federally insured limits.

Restricted Cash

Restricted CashRestricted cash consists primarily of borrower escrow deposits, tenant escrow deposits and real estate capital expenditure reserves.

Loans and Preferred Equity Held for Investment

The Company originates and purchases loans and preferred equity held for investment. The accounting framework for loans and preferred equity held for investment depends on the Company’s strategy whether to hold or sell the loan, whether the loan was credit-impaired at the time of acquisition, or if the lending arrangement is an acquisition, development and construction loan.

Loans and Preferred Equity Held for Investment

Loans and preferred equity that the Company has the intent and ability to hold for the foreseeable future are classified as held for investment. Originated loans and preferred equity are recorded at amortized cost, or outstanding unpaid principal balance plus exit fees less net deferred loan fees. Net deferred loan fees include unamortized origination and other fees charged to the borrower less direct incremental loan origination costs incurred by the Company. Purchased loans and preferred equity are recorded at amortized cost, or unpaid principal balance plus purchase premium or less unamortized discount. Costs to purchase loans and preferred equity are expensed as incurred.

Interest Income—Interest income is recognized based upon contractual interest rate and unpaid principal balance of the loans and preferred equity investments. Net deferred loan fees on originated loans and preferred equity investments are deferred and amortized as adjustments to interest income over the expected life of the loans and preferred equity investments using the effective yield method. Premium or discount on purchased loans and preferred equity investments are amortized as adjustments to interest income over the expected life of the loans and preferred equity investments using the effective yield method. When a loan or preferred equity investment is prepaid, prepayment fees and any excess of proceeds over the carrying amount of the loan or preferred equity investment is recognized as additional interest income.

The Company has debt investments in its portfolio that contain a payment-in-kind (“PIK”) provision. Contractual PIK interest, which represents contractually deferred interest added to the loan balance that is due at the end of the loan term, is generally recorded on an accrual basis to the extent such amounts are expected to be collected. The Company will generally cease accruing PIK interest if there is insufficient value to support the accrual or management does not expect the borrower to be able to pay all principal and interest due.

Nonaccrual—Accrual of interest income is suspended on nonaccrual loans and preferred equity investments. Loans and preferred equity investments that are past due 90 days or more as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming and placed on nonaccrual status. Interest receivable is reversed against interest income when loans and preferred equity investments are placed on nonaccrual status. Interest collected is

recognized on a cash basis by crediting income when received; or if ultimate collectability of loan and preferred equity principal is uncertain, interest collected is recognized using a cost recovery method by applying interest collected as a reduction to loan and preferred equity carrying value. Loans and preferred equity investments may be restored to accrual status when all principal and interest are current and full repayment of the remaining contractual principal and interest are reasonably assured.

Loans Held for Sale

Loans that the Company intends to sell or liquidate in the foreseeable future are classified as held for sale. Loans held for sale are carried at the lower of amortized cost or fair value less disposal cost, with valuation changes recognized as impairment loss. Loans held for sale are not subject to Current Expected Credit Losses (“CECL”) reserves. Net deferred loan origination fees and loan purchase premiums or discounts are deferred and capitalized as part of the carrying value of the held for sale loan until the loan is sold, therefore included in the periodic valuation adjustments based on lower of cost or fair value less disposal cost.

At March 31, 2023 and December 31, 2022, the Company had no loans classified as held for sale.

Acquisition, Development and Construction (“ADC”) Arrangements

The Company provides loans to third party developers for the acquisition, development and construction of real estate. Under an ADC arrangement, the Company participates in the expected residual profits of the project through the sale, refinancing or other use of the property. The Company evaluates the characteristics of each ADC arrangement, including its risks and rewards, to determine whether they are more similar to those associated with a loan or an investment in real estate. ADC arrangements with characteristics implying loan classification are presented as loans held for investment and result in the recognition of interest income. ADC arrangements with characteristics implying real estate joint ventures are presented as investments in unconsolidated joint ventures and are accounted for using the equity method. The classification of each ADC arrangement as either loan receivable or real estate joint venture involves significant judgment and relies on various factors, including market conditions, amount and timing of expected residual profits, credit enhancements in the form of guaranties, estimated fair value of the collateral, and significance of borrower equity in the project, among others. The classification of ADC arrangements is performed at inception, and periodically reassessed when significant changes occur in the circumstances or conditions described above.

Operating Real Estate

Real Estate Acquisitions—Real estate acquired in acquisitions that are deemed to be business combinations is recorded at the fair values of the acquired components at the time of acquisition, allocated among land, buildings, improvements, equipment and lease-related tangible and identifiable intangible assets and liabilities, including forgone leasing costs, in-place lease values and above- or below-market lease values and assumed debt, if any. Real estate acquired in acquisitions that are deemed to be asset acquisitions is recorded at the total value of consideration transferred, including transaction costs, and allocated to the acquired components based upon relative fair value. The estimated fair value of acquired land is derived from recent comparable sales of land and listings within the same local region based on available market data. The estimated fair value of acquired buildings and building improvements is derived from comparable sales, discounted cash flow analysis using market-based assumptions, or replacement cost, as appropriate. The fair value of site and tenant improvements is estimated based upon current market replacement costs and other relevant market rate information.

Real Estate Held for Investment

Real estate held for investment is carried at cost less accumulated depreciation.

Costs Capitalized or Expensed—Expenditures for ordinary repairs and maintenance are expensed as incurred, while expenditures for significant renovations that improve or extend the useful life of the asset are capitalized and depreciated over their estimated useful lives.

Depreciation—Real estate held for investment, other than land, is depreciated on a straight-line basis over the estimated useful lives of the assets, as follows:


Real Estate Assets						Term
Building (fee interest)						33 to 47 years
Building leasehold interests						Lesser of remaining term of the lease or remaining life of the building
Building improvements						Lesser of the useful life or remaining life of the building
Land improvements						1 to 15 years
Tenant improvements						Lesser of the useful life or remaining term of the lease
Furniture, fixtures and equipment						2 to 8 years

Impairment—The Company evaluates its real estate held for investment for impairment periodically or whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company evaluates real estate for impairment generally on an individual property basis. If an impairment indicator exists, the Company evaluates the undiscounted future net cash flows that are expected to be generated by the property, including any estimated proceeds from the eventual disposition of the property. If multiple outcomes are under consideration, the Company may apply a probability-weighted approach to the impairment analysis. Based upon the analysis, if the carrying value of a property exceeds its undiscounted future net cash flows, an impairment loss is recognized for the excess of the carrying value of the property over the estimated fair value of the property. In evaluating and/or measuring impairment, the Company considers, among other things, current and estimated future cash flows associated with each property, market information for each sub-market, including, where applicable, competition levels, foreclosure levels, leasing trends, occupancy trends, lease or room rates, and the market prices of similar properties recently sold or currently being offered for sale, and other quantitative and qualitative factors. Another key consideration in this assessment is the Company’s assumptions about the highest and best use of its real estate investments and its intent and ability to hold them for a reasonable period that would allow for the recovery of their carrying values. If such assumptions change and the Company shortens its expected hold period, this may result in the recognition of impairment losses. See Note 5, “Real Estate, net and Real Estate Held for Sale” and Note 13, “Fair Value” for further detail.

Real Estate Held for Sale

Real estate is classified as held for sale in the period when (i) management approves a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, subject only to usual and customary terms, (iii) a program is initiated to locate a buyer and actively market the asset for sale at a reasonable price, and (iv) completion of the sale is probable within one year. Real estate held for sale is stated at the lower of its carrying amount or estimated fair value less disposal cost, with any write-down to fair value less disposal cost recorded as an impairment loss. For any increase in fair value less disposal cost subsequent to classification as held for sale, the impairment loss may be reversed, but only up to the amount of cumulative loss previously recognized. Depreciation is not recorded on assets classified as held for sale. At the time a sale is consummated, the excess, if any, of sale price less selling costs over carrying value of the real estate is recognized as a gain.

If circumstances arise that were previously considered unlikely and, as a result, the Company decides not to sell the real estate asset previously classified as held for sale, the real estate asset is reclassified as held for investment. Upon reclassification, the real estate asset is measured at the lower of (i) its carrying amount prior to classification as held for sale, adjusted for depreciation expense that would have been recognized had the real estate been continuously classified as held for investment, and (ii) its estimated fair value at the time the Company decides not to sell.

At March 31, 2023 and December 31, 2022, there were no properties held for sale.

Foreclosed Properties

The Company receives foreclosed properties in full or partial settlement of loans held for investment by taking legal title or physical possession of the properties. Foreclosed properties are generally recognized at the time the real estate is received at foreclosure sale or upon execution of a deed in lieu of foreclosure. Foreclosed properties are initially measured at fair value. If the fair value of the property is lower than the carrying value of the loan, the difference is recognized as current expected credit loss reserves and the cumulative reserve on the loan is charged off. The Company periodically evaluates foreclosed properties for subsequent decrease in fair value, which is recorded as an additional impairment loss. Fair value of foreclosed properties is generally based on third party appraisals, broker price opinions, comparable sales or a combination thereof.

Real Estate Securities

The Company classifies its CRE securities investments as available for sale on the acquisition date, which are carried at fair value. Unrealized gains (losses) are recorded as a component of accumulated OCI in the consolidated statements of equity. However, the Company has elected the fair value option for the assets and liabilities of its consolidated Investing VIEs, and as a result, any unrealized gains (losses) on the consolidated Investing VIEs are recorded in unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net in the consolidated statements of operations. During the year ended December 31, 2022, the Company sold its retained investments in the subordinate tranches of a securitization trust. In connection with the sale, the Company deconsolidated the securitization trust and recognized a realized gain. Refer to Note 4, “Real Estate Securities” for further discussion.

Impairment

CRE securities for which the fair value option is elected are not evaluated for impairment as any change in fair value is recorded in the consolidated statements of operations. Realized losses on such securities are reclassified to realized loss on mortgage loans and obligations held in securitization trust, net as losses occur.

CRE securities for which the fair value option is not elected are evaluated for impairment quarterly. Impairment of a security is considered when the fair value is below the amortized cost basis, which is then further analyzed when: (i) the holder has the intent to sell the impaired security; (ii) it is more likely than not the holder will be required to sell the security; or (iii) the holder does not expect to recover the entire amortized cost of the security. When a CRE security has been deemed impaired due to (i) or (ii) or (iii), the security is written down to its fair value and an impairment is recognized in the consolidated statements of operations. In all other situations, the unrealized loss is bifurcated into: (a) the amount related to expected credit losses; and (b) the amount related to other factors in excess of expected credit losses. The portion of impairment related to expected credit losses is recognized as an allowance for credit losses. The remaining impairment related to other factors is recognized as a component of accumulated OCI in the consolidated statements of equity. CRE securities which are not high-credit quality are considered to have an impairment if the security has an unrealized loss and there has been an adverse change in expected cash flow. The amount of impairment is then bifurcated as discussed above.

Investments in Unconsolidated Ventures

A noncontrolling, unconsolidated ownership interest in an entity may be accounted for using one of (i) equity method where applicable; (ii) fair value option if elected; (iii) fair value through earnings if fair value is readily determinable, including election of net asset value (“NAV”) practical expedient where applicable; or (iv) for equity investments without readily determinable fair values, the measurement alternative to measure at cost adjusted for any impairment and observable price changes, as applicable.

Fair value changes of equity method investments under the fair value option are recorded in earnings from investments in unconsolidated ventures. Fair value changes of other equity investments, including adjustments for observable price changes under the measurement alternative, are recorded in other gain (loss), net on the Company’s consolidated statements of operations.

Equity Method Investments

The Company accounts for investments under the equity method of accounting if it has the ability to exercise significant influence over the operating and financial policies of an entity, but does not have a controlling financial interest. The equity method investment is initially recorded at cost and adjusted each period for capital contributions, distributions and the Company’s share of the entity’s net income or loss as well as other comprehensive income or loss. The Company’s share of net income or loss may differ from the stated ownership percentage interest in an entity if the governing documents prescribe a substantive non-proportionate earnings allocation formula or a preferred return to certain investors. For certain equity method investments, the Company records its proportionate share of income on a one to three month lag. Distributions of operating profits from equity method investments are reported as operating activities, while distributions in excess of operating profits are reported as investing activities in the statement of cash flows under the cumulative earnings approach.

Impairment

Evaluation of impairment applies to equity method investments and equity investments under the measurement alternative. If indicators of impairment exist, the Company will first estimate the fair value of its investment. In assessing fair value, the Company generally considers, among others, the estimated fair value of the investee, which is based on significant assumptions

including the estimated timing and probabilities of the future cash flows of the unconsolidated joint venture, utilizing discount rates and capitalization rates.

For investments under the measurement alternative, if carrying value of the investment exceeds its fair value, an impairment is deemed to have occurred.

For equity method investments, further consideration is made if a decrease in value of the investment is other-than-temporary to determine if impairment loss should be recognized. Assessment of Other Than Temporary Impairment (“OTTI”) involves management judgment, including, but not limited to, consideration of the investee’s financial condition, operating results, business prospects and creditworthiness, the Company’s ability and intent to hold the investment until recovery of its carrying value. If management is unable to reasonably assert that an impairment is temporary or believes that the Company may not fully recover the carrying value of its investment, then the impairment is considered to be other-than-temporary.

Investments that are other-than-temporarily impaired are written down to their estimated fair value. Impairment loss is recorded in earnings from investments in unconsolidated ventures for equity method investments and in other gain (loss), net for investments under the measurement alternative.

Identified Intangibles

Identifiable Intangibles

In a business combination or asset acquisition, the Company may recognize identifiable intangibles that meet either or both the contractual-legal criterion or the separability criterion. Finite-lived intangibles are amortized over their useful life in a manner that reflects the pattern in which the intangible is being consumed if readily determinable, such as based upon expected cash flows; otherwise they are amortized on a straight line basis. The useful life of all identified intangibles will be periodically reassessed and if useful life changes, the carrying amount of the intangible will be amortized prospectively over the revised useful life.

Lease Intangibles—Identifiable intangibles recognized in acquisitions of operating real estate properties generally include in-place leases, above- or below-market leases and deferred leasing costs, all of which have finite lives. In-place leases generate value over and above the tangible real estate because a property that is occupied with leased space is typically worth more than a vacant building without an operating lease contract in place. The estimated fair value of acquired in-place leases is derived based on management’s assessment of costs avoided from having tenants in place, including lost rental income, rent concessions and tenant allowances or reimbursements, that hypothetically would be incurred to lease a vacant building to its actual existing occupancy level on the valuation date. The net amount recorded for acquired in-place leases is included in intangible assets and amortized on a straight-line basis as an increase to depreciation and amortization expense over the remaining term of the applicable leases. If an in-place lease is terminated, the unamortized portion is charged to depreciation and amortization expense.

The estimated fair value of the above- or below-market component of acquired leases represents the present value of the difference between contractual rents of acquired leases and market rents at the time of the acquisition for the remaining lease term, discounted for tenant credit risks. Above- or below-market operating lease values are amortized on a straight-line basis as a decrease or increase to rental income, respectively, over the applicable lease terms. This includes fixed rate renewal options in acquired leases that are below-market, which are amortized to decrease rental income over the renewal period. Above- or below-market ground lease obligations are amortized on a straight-line basis as a decrease or increase to rent expense, respectively, over the applicable lease terms. If the above- or below-market operating lease values or above- or below-market ground lease obligations are terminated, the unamortized portion of the lease intangibles are recorded in rental income or rent expense, respectively.

Deferred leasing costs represent management’s estimate of the avoided leasing commissions and legal fees associated with an existing in-place lease. The net amount is included in intangible assets and amortized on a straight-line basis as an increase to depreciation and amortization expense over the remaining term of the applicable lease.

Transfers of Financial Assets

Sale accounting for transfers of financial assets requires the transfer of an entire financial asset, a group of financial assets in its entirety or if a component of the financial asset is transferred, that the component meets the definition of a participating interest with characteristics that mirror the original financial asset.

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. If the Company has any continuing involvement, rights or obligations with the transferred financial asset (outside of standard representations and warranties), sale accounting requires that the transfer meets the following sale conditions: (1) the transferred asset has been

legally isolated; (2) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred asset; and (3) the Company does not maintain effective control over the transferred asset through an agreement that provides for (a) both an entitlement and an obligation by the Company to repurchase or redeem the asset before its maturity, (b) the unilateral ability by the Company to reclaim the asset and a more than trivial benefit attributable to that ability, or (c) the transferee requiring the Company to repurchase the asset at a price so favorable to the transferee that it is probable the repurchase will occur.

If sale accounting is met, the transferred financial asset is removed from the balance sheet and a net gain or loss is recognized upon sale, taking into account any retained interests. Transfers of financial assets that do not meet the criteria for sale are accounted for as financing transactions, or secured borrowing, including the Company’s master repurchase facilities.

Derivative Instruments and Hedging Activities

The Company uses derivative instruments to manage its foreign currency risk and interest rate risk. The Company does not use derivative instruments for speculative or trading purposes. All derivative instruments are recorded at fair value and included in other assets or accrued and other liabilities on a gross basis on the Company’s consolidated balance sheet. The accounting for changes in fair value of derivatives depends upon whether or not the Company has elected to designate the derivative in a hedging relationship and the derivative qualifies for hedge accounting. The Company has economic hedges that have not been designated for hedge accounting.

Changes in fair value of derivatives not designated as accounting hedges are recorded in the consolidated statements of operations in other gain (loss), net.

For designated accounting hedges, the relationships between hedging instruments and hedged items, risk management objectives and strategies for undertaking the accounting hedges as well as the methods to assess the effectiveness of the derivative prospectively and retrospectively, are formally documented at inception. Hedge effectiveness relates to the amount by which the gain or loss on the designated derivative instrument exactly offsets the change in the hedged item attributable to the hedged risk. If it is determined that a derivative is not expected to be or has ceased to be highly effective at hedging the designated exposure, hedge accounting is discontinued.

Cash Flow Hedges—The Company uses interest rate caps and swaps to hedge its exposure to interest rate fluctuations in forecasted interest payments on floating rate debt. The effective portion of the change in fair value of the derivative is recorded in accumulated other comprehensive income, while hedge ineffectiveness is recorded in earnings. If the derivative in a cash flow hedge is terminated or the hedge designation is removed, related amounts in accumulated other comprehensive income (loss) are reclassified into earnings.

Net Investment Hedges—The Company uses foreign currency hedges to protect the value of its net investments in foreign subsidiaries or equity method investees whose functional currencies are not U.S. dollars. Changes in the fair value of derivatives used as hedges of net investment in foreign operations, to the extent effective, are recorded in the cumulative translation adjustment account within accumulated other comprehensive income (loss).

At the end of each quarter, the Company reassesses the effectiveness of its net investment hedges and as appropriate, designates the portion of the derivative notional amount that is in excess of the beginning balance of its net investments as undesignated hedges.

Release of accumulated other comprehensive income related to net investment hedges occurs upon losing a controlling financial interest in an investment or obtaining control over an equity method investment. Upon sale, complete or substantially complete liquidation of an investment in a foreign subsidiary, or partial sale of an equity method investment, the gain or loss on the related net investment hedge is reclassified from accumulated other comprehensive income to earnings. Refer to Note 14, “Derivatives” for further discussion on the Company’s derivative and hedging activity.

Financing Costs

Financing CostsFinancing costs primarily include debt discounts and premiums as well as deferred financing costs. Deferred financing costs represent commitment fees, legal and other third-party costs associated with obtaining financing. Costs related to revolving credit facilities are recorded in other assets and are amortized to interest expense using the straight-line basis over the term of the facility. Costs related to other borrowings are recorded net against the carrying value of such borrowings and are amortized to interest expense using the effective interest method. Unamortized deferred financing costs are expensed to other gain (loss), net when the associated facility is repaid before maturity. Costs incurred in seeking financing transactions, which do not close, are expensed in the period in which it is determined that the financing will not occur.

Revenue Recognition

Property Operating Income

Property operating income includes the following:

Rental Income—Rental income is recognized on a straight-line basis over the non-cancellable term of the related lease which includes the effects of minimum rent increases and rent abatements under the lease. Rents received in advance are deferred.

When it is determined that the Company is the owner of tenant improvements, the cost to construct the tenant improvements, including costs paid for or reimbursed by the tenants, is capitalized. For tenant improvements owned by the Company, the amount funded by or reimbursed by the tenants are recorded as deferred revenue, which is amortized on a straight-line basis as additional rental income over the term of the related lease. Rental income recognition commences when the leased space is substantially ready for its intended use and the tenant takes possession of the leased space.

When it is determined that the tenant is the owner of tenant improvements, the Company’s contribution towards those improvements is recorded as a lease incentive, included in deferred leasing costs and intangible assets on the balance sheet, and amortized as a reduction to rental income on a straight-line basis over the term of the lease. Rental income recognition commences when the tenant takes possession of the lease space.

Tenant Reimbursements—In net lease arrangements, the tenant is generally responsible for operating expenses related to the property, including real estate taxes, property insurance, maintenance, repairs and improvements. Costs reimbursable from tenants and other recoverable costs are recognized as revenue in the period the recoverable costs are incurred. When the Company is the primary obligor with respect to purchasing goods and services for property operations and has discretion in selecting the supplier and retains credit risk, tenant reimbursement revenue and property operating expenses are presented on a gross basis in the statements of operations. For certain triple net leases where the lessee self-manages the property, hires its own service providers and retains credit risk for routine maintenance contracts, no reimbursement revenue and expense are recognized.

Hotel Operating Income—Hotel operating income includes room revenue, food and beverage sales and other ancillary services. Revenue is recognized upon occupancy of rooms, consummation of sales and provision of services.

Real Estate Securities

Interest income is recognized using the effective interest method with any premium or discount amortized or accreted through earnings based on expected cash flow through the expected maturity date of the security. On a quarterly basis, the Company reviews, and if appropriate, adjusts its cash flow projections based on inputs and analyses received from external sources, internal models, and the Company’s judgment about prepayment rates, the timing and amount of credit losses and other factors. Changes in the amount or timing of cash flows from those originally projected, or from those estimated at the last evaluation date, are considered to be either favorable changes or adverse changes.

Adverse changes in the timing or amount of cash flows on CRE securities could result in the Company recording an increase in the allowance for credit losses. The allowance for credit losses is calculated using a discounted cash flow approach and is measured as the difference between the amortized cost of a CRE security and estimate of cash flows expected to be collected discounted at the effective interest rate used to accrete the CRE security. The allowance for credit losses is recorded as a contra-asset and a reduction in earnings. The allowance for credit losses will be limited to the amount of the unrealized losses on the CRE securities. Any allowance for credit losses in excess of the unrealized losses on the CRE securities are accounted for as a prospective reduction of the effective interest rate. No allowance is recorded for CRE securities in an unrealized gain position. Favorable changes in the discounted cash flow will result in a reduction in the allowance for credit losses, if any. Any reduction in allowance for credit losses is recorded in earnings. If the allowance for credit losses has been reduced to zero, the remaining favorable changes are reflected as a prospective increase to the effective interest rate.

Foreign Currency

Assets and liabilities denominated in a foreign currency for which the functional currency is a foreign currency are translated using the exchange rate in effect at the balance sheet date and the corresponding results of operations for such entities are translated using the average exchange rate in effect during the period. The resulting foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss in stockholders’ equity. Upon sale, complete or substantially complete liquidation of a foreign subsidiary, or upon partial sale of a foreign equity method investment, the

translation adjustment associated with the investment, or a proportionate share related to the portion of equity method investment sold, is reclassified from accumulated other comprehensive income or loss into earnings.

Assets and liabilities denominated in a foreign currency for which the functional currency is the U.S. dollar are remeasured using the exchange rate in effect at the balance sheet date and the corresponding results of operations for such entities are remeasured using the average exchange rate in effect during the period. The resulting foreign currency remeasurement adjustments are recorded in other gain (loss), net on the consolidated statements of operations.

Disclosures of non-U.S. dollar amounts to be recorded in the future are translated using exchange rates in effect at the date of the most recent balance sheet presented.

Equity Based Compensation

Equity-Based Compensation

Equity-classified stock awards granted to executive officers and independent directors are based on the closing price of the Class A common stock on the grant date and recognized on a straight-line basis over the requisite service period of the awards for restricted stock awards. For performance stock units (“PSUs”) the fair value is based on a Monte Carlo simulation as of the grant date and expense is recognized on a straight-line basis over the measurement period. See Note 10, “Equity-Based Compensation” for further discussion.

The compensation expense is adjusted for actual forfeitures upon occurrence. Equity-based compensation is classified within compensation and benefits in the consolidated statement of operations.

Earnings Per Share

Earnings Per ShareThe Company presents both basic and diluted earnings per share (“EPS”) using the two-class method. Basic EPS is calculated by dividing earnings allocated to common shareholders, as adjusted for unallocated earnings attributable to certain participating securities, if any, by the weighted-average number of common shares outstanding during the period. Diluted EPS is based on the weighted-average number of common shares and the effect of potentially dilutive common share equivalents outstanding during the period. The two-class method is an allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. The Company has certain share-based payment awards that contain nonforfeitable rights to dividends, which are considered participating securities for the purposes of computing EPS pursuant to the two-class method.

Income Taxes

For U.S. federal income tax purposes, the Company elected to be taxed as a REIT beginning with its taxable year ended December 31, 2018. To qualify as a REIT, the Company must continually satisfy tests concerning, among other things, the real estate qualification of sources of its income, the real estate composition and values of its assets, the amounts it distributes to stockholders and the diversity of ownership of its stock.

To the extent that the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax to the extent of its distributions to stockholders. The Company believes that all of the criteria to maintain the Company’s REIT qualification have been met for the applicable periods, but there can be no assurance that these criteria will continue to be met in subsequent periods. If the Company were to fail to meet these requirements, it would be subject to U.S. federal income tax and potential interest and penalties, which could have a material adverse impact on its results of operations and amounts available for distributions to its stockholders. The Company’s accounting policy with respect to interest and penalties is to classify these amounts as a component of income tax expense, where applicable.

The Company may also be subject to certain state, local and franchise taxes. Under certain circumstances, U.S. federal income and excise taxes may be due on its undistributed taxable income. The Company also holds an investment in Europe which is subject to tax in its local jurisdiction.

The Company made joint elections to treat certain subsidiaries as taxable REIT subsidiaries (“TRSs”) which may be subject to taxation by U.S. federal, state and local authorities. In general, a TRS of the Company may perform non-customary services for tenants, hold assets that the Company cannot hold directly and engage in most real estate or non-real estate-related business.

Certain subsidiaries of the Company are subject to taxation by U.S. federal, state and local authorities for the periods presented. Income taxes are accounted for by the asset/liability approach in accordance with GAAP. Deferred taxes, if any, represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. Such amounts arise from differences between the financial reporting and tax bases of assets and liabilities and are adjusted for changes in tax laws

and tax rates in the period during which such changes are enacted. A provision for income tax represents the total of income taxes paid or payable for the current period, plus the change in deferred taxes. Current and deferred taxes are recorded on the portion of earnings (losses) recognized by the Company with respect to its interest in TRSs. Deferred income tax assets and liabilities are calculated based on temporary differences between the Company’s GAAP consolidated financial statements and the U.S. federal, state and local tax basis of assets and liabilities as of the consolidated balance sheet date. The Company evaluates the realizability of its deferred tax assets (e.g., net operating loss and capital loss carryforwards) and recognizes a valuation allowance if, based on the available evidence, it is more likely than not that some portion or all of its deferred tax assets will not be realized. When evaluating the realizability of its deferred tax assets, the Company considers estimates of expected future taxable income, existing and projected book/tax differences, tax planning strategies available and the general and industry-specific economic outlook. This realizability analysis is inherently subjective, as it requires the Company to forecast its business and general economic environment in future periods. Changes in estimate of deferred tax asset realizability, if any, are included in income tax expense in the consolidated statements of operations.

Current Expected Credit Losses ("CECL") reserve

Current Expected Credit Losses (“CECL”) reserve

The CECL reserve for the Company’s financial instruments carried at amortized cost and off-balance sheet credit exposures, such as loans, loan commitments and trade receivables, represents a lifetime estimate of expected credit losses. Factors considered by the Company when determining the CECL reserve include loan-specific characteristics such as loan-to-value (“LTV”) ratio, vintage year, loan term, property type, occupancy and geographic location, financial performance of the borrower, expected payments of principal and interest, as well as internal or external information relating to past events, current conditions and reasonable and supportable forecasts.

The general CECL reserve is measured on a collective (pool) basis when similar risk characteristics exist for multiple financial instruments. If similar risk characteristics do not exist, the Company measures the specific CECL reserve on an individual instrument basis. The determination of whether a particular financial instrument should be included in a pool can change over time. If a financial asset’s risk characteristics change, the Company evaluates whether it is appropriate to continue to keep the financial instrument in its existing pool or evaluate it individually.

In measuring the general CECL reserve for financial instruments that share similar risk characteristics, the Company primarily applies a probability of default (“PD”)/loss given default (“LGD”) model for instruments that are collectively assessed, whereby the CECL reserve is calculated as the product of PD, LGD and exposure at default (“EAD”). The Company’s model principally utilizes historical loss rates derived from a commercial mortgage-backed securities database with historical losses from 1998 through March 2023 provided by a third party, Trepp LLC, forecasting the loss parameters using a scenario-based statistical approach over a reasonable and supportable forecast period of twelve months, followed by a straight-line reversion period of twelve-months back to average historical losses.

For determining a specific CECL reserve, financial instruments are assessed outside of the PD/LGD model on an individual basis. This occurs when it is probable that the Company will be unable to collect the full payment of principal and interest on the instrument. The Company may elect to use as a practical expedient to determine the fair value of the collateral at the reporting date when determining the specific CECL reserve. The Company applies a discounted cash flow (“DCF”) methodology for financial instruments where the borrower is experiencing financial difficulty based on the Company’s assessment at the reporting date, and the repayment is expected to be provided substantially through the operation or sale of the collateral.

In developing the CECL reserve for its loans held for investment, the Company considers the risk ranking of each loan and preferred equity as a key credit quality indicator. The risk rankings are based on a variety of factors, including, without limitation, underlying real estate performance and asset value, values of comparable properties, durability and quality of property cash flows, sponsor experience and financial wherewithal, and the existence of a risk-mitigating loan structure. Additional key considerations include loan-to-value ratios, debt service coverage ratios, loan structure, real estate and credit market dynamics, and risk of default or principal loss. Based on a five-point scale, the Company’s loans and preferred equity held for investment are rated “1” through “5,” from less risk to greater risk, and the ratings are updated quarterly. At the time of origination or purchase, loans and preferred equity held for investment are ranked as a “3” and will move accordingly going forward based on the ratings which are defined as follows:

1.Very Low Risk-The loan is performing as agreed. The underlying property performance has exceeded underwritten expectations with very strong net operating income (“NOI”), debt service coverage ratio, debt yield and

occupancy metrics. Sponsor is investment grade, very well capitalized, and employs a very experienced management team.

2.Low Risk-The loan is performing as agreed. The underlying property performance has met or exceeds underwritten expectations with high occupancy at market rents, resulting in consistent cash flow to service the debt. Strong sponsor that is well capitalized with an experienced management team.

3.Average Risk-The loan is performing as agreed. The underlying property performance is consistent with underwriting expectations. The property generates adequate cash flow to service the debt, and/or there is enough reserve or loan structure to provide time for sponsor to execute the business plan. Sponsor has routinely met its obligations and has experience owning/operating similar real estate.

4.High Risk/Delinquent/Potential for Loss-The loan is in excess of 30 days delinquent and/or has a risk of a principal loss. The underlying property performance is behind underwritten expectations. Loan covenants may require occasional waivers/modifications. Sponsor has been unable to execute its business plan and local market fundamentals have deteriorated. Operating cash flow is not sufficient to service the debt and debt service payments may be coming from sponsor equity/loan reserves.

5.Impaired/Defaulted/Loss Likely-The loan is in default or a default is imminent, and has a high risk of a principal loss, or has incurred a principal loss. The underlying property performance is significantly worse than underwritten expectation and sponsor has failed to execute its business plan. The property has significant vacancy and current cash flow does not support debt service. Local market fundamentals have significantly deteriorated resulting in depressed comparable property valuations versus underwriting.

The Company also considers qualitative and environmental factors, including, but not limited to, economic and business conditions, nature and volume of the loan portfolio, lending terms, volume and severity of past due loans, concentration of credit and changes in the level of such concentrations in its determination of the CECL reserve.

The Company has elected to not measure a CECL reserve for accrued interest receivable as it is reversed against interest income when a loan or preferred equity investment is placed on nonaccrual status. Loans and preferred equity investments are charged off when all or a portion of the principal amount is determined to be uncollectible.

Changes in the CECL reserve for the Company’s financial instruments are recorded in increase/decrease in current expected credit loss reserve on the consolidated statement of operations with a corresponding offset to the loans and preferred equity held for investment or as a component of other liabilities for future loan fundings recorded on the Company’s consolidated balance sheets. See Note 3, “Loans and Preferred Equity Held for Investment, net” for further detail.

Accounting Standards Adopted in 2021 and Accounting Standards to be adopted

Accounting Standards Adopted in 2022

Credit Losses—In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the Troubled Debt Restructuring (“TDR”) model for creditors that have adopted Topic 326, CECL. The general loan modification guidance in Subtopic 310-20 will apply to all loan modifications, including modifications for borrowers experiencing financial difficulty. ASU 2022-02 also requires entities within the scope of ASC 326 to provide vintage disclosures which show the gross writeoffs recorded in the current period by origination year. ASU No. 2022-02 is effective in reporting periods beginning after December 15, 2022. During the fourth quarter of 2022, the Company adopted the TDR enhancements and new vintage disclosures under ASU 2022-02, and the impact was not material. Refer to Note 3, “Loans and Preferred Equity Held for Investment, net.”

Equity-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Valuation Assumptions

Fair value of PSUs, including dividend equivalent rights, was determined using a Monte Carlo simulation, with the following assumptions:


	2023 Grant
Expected volatility(1)	74.4	%
Risk free rate(2)	4.6	%
Expected dividend yield(3)	—

_________________________________________

(1)Based upon the Company’s historical stock volatility.

(2)Based upon the continuously compounded zero-coupon U.S. Treasury yield for the term coinciding with the measurement period of the award as of valuation date.

(3)Based upon award holders being entitled to dividends paid during the measurement period on any shares earned.

Summary of Awards Granted or Vested

The table below summarizes the Company’s awards granted, forfeited or vested under the 2022 Plan during the three months ended March 31, 2023 and 2022:


	Number of Shares			Weighted Average Grant Date Fair Value
	Restricted Stock	PSUs	Total	Restricted Stock		PSUs
















Unvested shares at December 31, 2021	1,482,094	272,000	1,754,094	$	12.35	$	11.96
Vested	(500,462)	—	(500,462)	9.14		—
Unvested shares at March 31, 2022	981,632	272,000	1,253,632	11.54		11.96

Unvested shares at December 31, 2022	2,308,691	272,000	2,580,691	$	8.47	$	11.96
Granted	1,391,217	384,378	1,775,595	6.90		9.69
Vested	(888,834)	(136,000)	(1,024,834)	8.46		11.96
Forfeited	—	(136,000)	—	—		11.96
Unvested shares at March 31, 2023	2,811,074	384,378	3,331,452	7.65		9.69

Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) property	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) property
Variable Interest Entity [Line Items]
Number of properties held-for-sale (in properties) \| property	0		0
Conversion of stock, conversion ratio	1
Cash equivalents	$ 0		$ 0
Loans held for sale	0		$ 0
Income tax (benefit) expense	$ 390,000	$ 36,000
Unconsolidated VIEs \| Third Party Joint Venture Partners \| Minimum
Variable Interest Entity [Line Items]
Ownership percentage by noncontrolling owners (in percentage)	5.00%		5.00%
Unconsolidated VIEs \| Third Party Joint Venture Partners \| Maximum
Variable Interest Entity [Line Items]
Ownership percentage by noncontrolling owners (in percentage)	11.00%		11.00%

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The Company’s net income (loss) and weighted average shares outstanding for the three months ended March 31, 2023 and 2022 consist of the following (dollars in thousands, except per share data):


	Three Months Ended March 31,
	2023		2022
Net income (loss)	$	(4,202)	$	28,400
Net (income) loss attributable to noncontrolling interests:
Investment Entities	75		(22)
Operating Partnership	—		(654)
Net income (loss) attributable to BrightSpire Capital, Inc. common stockholders	$	(4,127)	$	27,724

Numerator:
Net (income) loss allocated to participating securities (non-vested shares)	$	—	$	(110)
Net income (loss) attributable to common stockholders	$	(4,127)	$	27,614

Denominator:
Weighted average shares outstanding - basic(1)	126,665		128,758
Weighted average shares outstanding - diluted(2)	126,665		129,745

Net income (loss) per common share - basic and diluted	$	(0.03)	$	0.21

_________________________________________

(1)The outstanding shares used to calculate the weighted average basic shares outstanding exclude 2,811,074 and 981,632 of restricted stock awards as of March 31, 2023 and March 31, 2022, net of forfeitures, respectively, as those shares were issued but were not vested and therefore, not considered outstanding for purposes of computing basic income (loss) per common share.

(2)The calculation of diluted earnings per share for the three months ended March 31, 2023 excludes the effect of weighted average unvested non-participating restricted shares of 2,537,125 as the effect would be antidilutive.

Equity-Based Compensation - Summary of Awards Granted or Vested (Details) - $ / shares				3 Months Ended
	Mar. 06, 2023	May 06, 2022	May 05, 2022	Mar. 31, 2023	Mar. 31, 2022
Number of Shares [Roll Forward]
Unvested Shares at beginning of period (in shares)				2,580,691	1,754,094
Granted (in shares)	1,391,217	62,190	1,456,366	1,775,595
Vested (in shares)				(1,024,834)	(500,462)
Forfeited (in shares)				0
Unvested shares at end of period (in shares)				3,331,452	1,253,632
Restricted Stock
Number of Shares [Roll Forward]
Unvested Shares at beginning of period (in shares)				2,308,691	1,482,094
Granted (in shares)				1,391,217
Vested (in shares)				(888,834)	(500,462)
Forfeited (in shares)				0
Unvested shares at end of period (in shares)				2,811,074	981,632
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested Shares at beginning of period, weighted average grant date fair value (in dollars per share)				$ 8.47	$ 12.35
Granted, weighted average grant date fair value (in dollars per share)				6.90
Vested, weighted average grant date fair value (in dollars per share)				8.46	9.14
Forfeited, weighted average grant date fair value (in dollars per share)				0
Unvested shares at end of period, weighted average grant date fair value (Unaudited) (in dollars per share)				$ 7.65	$ 11.54
PSUs
Number of Shares [Roll Forward]
Unvested Shares at beginning of period (in shares)				272,000	272,000
Granted (in shares)				384,378
Vested (in shares)				(136,000)	0
Forfeited (in shares)				(136,000)
Unvested shares at end of period (in shares)				384,378	272,000
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested Shares at beginning of period, weighted average grant date fair value (in dollars per share)				$ 11.96	$ 11.96
Granted, weighted average grant date fair value (in dollars per share)				9.69
Vested, weighted average grant date fair value (in dollars per share)				11.96	0
Forfeited, weighted average grant date fair value (in dollars per share)				11.96
Unvested shares at end of period, weighted average grant date fair value (Unaudited) (in dollars per share)				$ 9.69	$ 11.96

Commitments and Contingencies - Future Minimum Rental Payments - Office Lease 2022 (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Long-term Purchase Commitment [Line Items]
Operating lease liability	$ 24,997	$ 25,961
New York and Los Angeles Offices
Long-term Purchase Commitment [Line Items]
Remainder of 2023	961
2024	1,293
2025	1,308
2026	1,323
2027	1,339
2028 and thereafter	1,729
Total lease payments	7,953
Less: Present value discount	557
Operating lease liability	$ 7,396

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2023	May 02, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-38377
Entity Registrant Name	BRIGHTSPIRE CAPITAL, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	38-4046290
Entity Address, Address Line One	590 Madison Avenue
Entity Address, Address Line Two	33rd Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10022
City Area Code	212
Local Phone Number	547-2631
Title of 12(b) Security	Class A common stock, par value $0.01 per share
Trading Symbol	BRSP
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		129,946,184
Entity Central Index Key	0001717547
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net interest income
Interest income	$ 75,616	$ 44,570
Interest expense	(42,662)	(16,072)
Interest income on mortgage loans held in securitization trusts	0	9,375
Interest expense on mortgage obligations issued by securitization trusts	0	(8,488)
Net interest income	32,954	29,385
Property and other income
Property operating income	22,551	24,168
Other income	3,056	276
Total property and other income	25,607	24,444
Expenses
Property operating expense	5,852	6,724
Transaction, investment and servicing expense	835	1,124
Interest expense on real estate	5,509	7,556
Depreciation and amortization	7,996	8,594
Increase (decrease) of current expected credit loss reserve	39,613	(866)
Compensation and benefits (including $2,295 and $1,880 of equity-based compensation expense, respectively)	8,805	8,225
Operating expense	3,473	4,349
Total expenses	72,083	35,706
Other income
Other gain (loss), net	655	10,288
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(12,867)	28,411
Equity in earnings of unconsolidated ventures	9,055	25
Income tax expense	(390)	(36)
Net income (loss)	(4,202)	28,400
Net (income) loss attributable to noncontrolling interests:
Investment entities	75	(22)
Operating Partnership	0	(654)
Net income (loss) attributable to BrightSpire Capital, Inc. common stockholders	$ (4,127)	$ 27,724
Net income (loss) per common share - basic (in dollars per share)	$ (0.03)	$ 0.21
Net income (loss) per common share - diluted (in dollars per share)	$ (0.03)	$ 0.21
Weighted average shares of common stock outstanding - basic (in shares)	126,665,000	128,758,000
Weighted average shares of common stock outstanding - diluted (in shares)	126,665,000	129,745,000

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023	Apr. 30, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance (in shares)	1,000,000,000
Common stock, par value (in dollars per share)	$ 0.01		$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000		50,000,000
Preferred stock, shares issued (in shares)	0		0
Shares repurchased (in shares)	0
Amount available to repurchase under Stock Repurchase Plan	$ 81.7
Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, amount authorized for repurchase		$ 50.0
Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized (in shares)	950,000,000		950,000,000

Real Estate, net and Real Estate Held for Sale - Depreciation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Real Estate [Abstract]
Depreciation expense on real estate	$ 6.0	$ 6.1

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Ground Leases
Debt Instrument [Line Items]
Weighted average remaining lease term	13 years 8 months 12 days	13 years 8 months 12 days
Weighted average discount rate (as a percentage)	5.30%
New York and Los Angeles Offices
Debt Instrument [Line Items]
Weighted average remaining lease term	5 years 7 months 6 days
Weighted average discount rate (as a percentage)	2.36%
Senior loans
Debt Instrument [Line Items]
Future funding commitments	$ 248.8	$ 258.5
Mezzanine loans
Debt Instrument [Line Items]
Future funding commitments	$ 7.5	$ 4.9

Restricted Cash, Other Assets and Accrued and Other Liabilities - Investments under Fair Value Option (Details)	Mar. 31, 2023	Dec. 31, 2022
Minimum
Restricted Cash and Cash Equivalents Items [Line Items]
Investments fair value option, ownership percentage (in percentage)	1.00%
Maximum
Restricted Cash and Cash Equivalents Items [Line Items]
Investments fair value option, ownership percentage (in percentage)		15.60%

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Schedule of Operating Real Estate Estimated Useful Lives

Real estate held for investment, other than land, is depreciated on a straight-line basis over the estimated useful lives of the assets, as follows:


Real Estate Assets						Term
Building (fee interest)						33 to 47 years
Building leasehold interests						Lesser of remaining term of the lease or remaining life of the building
Building improvements						Lesser of the useful life or remaining life of the building
Land improvements						1 to 15 years
Tenant improvements						Lesser of the useful life or remaining term of the lease
Furniture, fixtures and equipment						2 to 8 years

Real Estate Securities - Activity Reported in Statement of Operations Related to Securitized Trust (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Variable Interest Entity [Line Items]
Interest income on mortgage loans held in securitization trusts	$ 0	$ 9,375
Interest expense on mortgage obligations issued by securitization trusts	0	(8,488)
Net income attributable to BrightSpire Capital, Inc. common stockholders	$ (4,127)	27,614
Primary beneficiary
Variable Interest Entity [Line Items]
Interest income on mortgage loans held in securitization trusts		9,375
Interest expense on mortgage obligations issued by securitization trusts		(8,488)
Net interest income		887
Operating expense		(97)
Net income attributable to BrightSpire Capital, Inc. common stockholders		$ 790

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

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+ Details

Derivatives (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Assets at Fair Value

As of March 31, 2023 and December 31, 2022, fair value of derivative assets and derivative liabilities were as follows (dollars in thousands):


	Non-Designated Hedges
	March 31, 2023		December 31, 2022
Derivative Assets
Foreign exchange contracts	$	2,148	$	1,599

Interest rate contracts	1		2
Included in other assets	$	2,149	$	1,601

Schedule of Derivative Liabilities at Fair Value

As of March 31, 2023 and December 31, 2022, fair value of derivative assets and derivative liabilities were as follows (dollars in thousands):


	Non-Designated Hedges
	March 31, 2023		December 31, 2022
Derivative Assets
Foreign exchange contracts	$	2,148	$	1,599

Interest rate contracts	1		2
Included in other assets	$	2,149	$	1,601

Schedule of Derivative Instruments

The following table summarizes the Company’s FX forwards and interest rate contracts as of March 31, 2023 and December 31, 2022:

Type of Derivatives

Notional Currency

Notional Amount (in thousands)

Range of Maturity Dates

Non-Designated

March 31, 2023

FX Forward

NOK

94,467

May 2023 - May 2024

Interest Rate Swap

USD

163

July 2023

December 31, 2022

FX Forward

NOK

99,733

February 2023 - May 2024

Interest Rate Swap

USD

285

July 2023

The table below represents the effect of the derivative financial instruments on the consolidated statements of operations for the three months ended March 31, 2023 and 2022 (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
Other gain (loss), net
Non-designated foreign exchange contracts	$	651	$	(221)
Non-designated interest rate contracts	(1)		8
	$	650	$	(213)

Offsetting Derivative Assets

The following table sets forth derivative positions where the Company has a right of offset under netting arrangements with the same counterparty as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	Gross Amounts of Assets (Liabilities) Included on Consolidated Balance Sheets		Net Amounts of Assets (Liabilities)

March 31, 2023
Derivative Assets
Foreign exchange contracts	$	2,148		$	2,148

Interest rate contracts	1			1
	$	2,149		$	2,149





December 31, 2022
Derivative Assets
Foreign exchange contracts	$	1,599		$	1,599
Interest rate contracts	2			2
	$	1,601		$	1,601

Offsetting Derivative Liabilities


	Gross Amounts of Assets (Liabilities) Included on Consolidated Balance Sheets		Net Amounts of Assets (Liabilities)

March 31, 2023
Derivative Assets
Foreign exchange contracts	$	2,148		$	2,148

Interest rate contracts	1			1
	$	2,149		$	2,149





December 31, 2022
Derivative Assets
Foreign exchange contracts	$	1,599		$	1,599
Interest rate contracts	2			2
	$	1,601		$	1,601

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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+ Details

Restricted Cash, Other Assets and Accrued and Other Liabilities - Summary of Deferred Costs and Other Assets, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other assets:
Right-of-use lease asset	$ 24,219	$ 25,237
Tax receivable and deferred tax assets	19,080	19,117
Deferred financing costs, net - credit facilities	3,086	4,630
Investments in unconsolidated ventures ($2,790 and $3,035 at fair value, respectively)	2,790	3,035
Derivative Asset	2,149	1,601
Prepaid expenses and other	1,252	2,053
Total	$ 52,576	$ 55,673
Right-of-use lease asset [Extensible List]	Total	Total

Stockholders' Equity - AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
Beginning balance	$ 1,389,024	$ 1,491,315
Total other comprehensive income (loss)	(3,463)	676
Ending balance	1,354,571	1,495,920
Investment Entities
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
Other comprehensive income before reclassification		0
Amounts reclassified from AOCI		(1,872)
Total other comprehensive income (loss)		(1,872)
Accumulated Other Comprehensive Income
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
Beginning balance	(676)	8,786
Total other comprehensive income (loss)	(3,463)	660
Ending balance	(4,139)	9,446
Unrealized gain on net investment hedges
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
Beginning balance	18,603	17,893
Total other comprehensive income (loss)	0	0
Ending balance	18,603	17,893
Foreign currency translation loss
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
Beginning balance	(19,279)	(9,107)
Total other comprehensive income (loss)	(3,463)	660
Ending balance	$ (22,742)	(8,447)
AOCI Attributable to Noncontrolling Interest \| OP
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
Beginning balance		(162)
Total other comprehensive income (loss)		16
Ending balance		(146)
AOCI Attributable to Noncontrolling Interest \| Investment Entities
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
Beginning balance		1,872
Ending balance		0
Unrealized gain on net investment hedges \| OP
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
Beginning balance		710
Total other comprehensive income (loss)		0
Ending balance		710
Foreign currency translation gain (loss) \| OP
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
Beginning balance		(872)
Total other comprehensive income (loss)		16
Ending balance		(856)
Foreign currency translation gain (loss) \| Investment Entities
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
Beginning balance		1,872
Ending balance		$ 0

Deferred Leasing Costs and Other Intangibles

3 Months Ended

Mar. 31, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Leasing Costs and Other Intangibles

The Company’s deferred leasing costs, other intangible assets and intangible liabilities, excluding those related to assets held for sale, at March 31, 2023 and December 31, 2022 are as follows (dollars in thousands):


	March 31, 2023
	Carrying Amount		Accumulated Amortization		Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	74,468	$	(36,692)	$	37,776
Deferred leasing costs	28,533		(16,457)		12,076
Above-market lease values	8,359		(7,081)		1,278
	$	111,360	$	(60,230)	$	51,130
Intangible Liabilities
Below-market lease values	$	16,075	$	(11,581)	$	4,494


	December 31, 2022
	Carrying Amount		Accumulated Amortization		Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	75,503	$	(35,805)	$	39,698
Deferred leasing costs	28,641		(15,843)		12,798
Above-market lease values	8,359		(6,875)		1,484
	$	112,503	$	(58,523)	$	53,980
Intangible Liabilities
Below-market lease values	$	16,074	$	(11,235)	$	4,839

The following table summarizes the amortization of deferred leasing costs, intangible assets and intangible liabilities for the three months ended March 31, 2023 and 2022 (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
Above-market lease values	$	(199)	$	(288)
Below-market lease values	339		330
Net increase to property operating income	$	140	$	42

In-place lease values	$	1,283	$	1,602
Deferred leasing costs	664		806

Amortization expense	$	1,947	$	2,408

The following table presents the amortization of deferred leasing costs, intangible assets and intangible liabilities, for each of the next five years and thereafter as of March 31, 2023 (dollars in thousands):



	2023		2024		2025		2026		2027		2028 and thereafter		Total
Above-market lease values	$	(431)	$	(448)	$	(270)	$	(91)	$	(38)	$	—	$	(1,278)
Below-market lease values	1,034		1,379		1,378		703		—		—		4,494
Net increase (decrease) to property operating income	$	603	$	931	$	1,108	$	612	$	(38)	$	—	$	3,216

In-place lease values	$	3,721	$	4,684	$	3,999	$	3,165	$	3,062	$	19,145	$	37,776
Deferred leasing costs	1,924		2,290		1,873		967		849		4,173		12,076
Amortization expense	$	5,645	$	6,974	$	5,872	$	4,132	$	3,911	$	23,318	$	49,852

Deferred Leasing Costs and Other Intangibles - Schedule of Deferred Leasing Costs and Intangibles (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deferred leasing costs
Carrying Amount	$ 28,533	$ 28,641
Accumulated Amortization	(16,457)	(15,843)
Total	12,076	12,798
Deferred Leasing Costs and Intangible Assets
Carrying Amount	111,360	112,503
Accumulated Amortization	(60,230)	(58,523)
Net Carrying Amount	51,130	53,980
Intangible Liabilities - Below-market lease values
Carrying Amount	16,075	16,074
Accumulated Amortization	(11,581)	(11,235)
Total	4,494	4,839
In-place lease values
Deferred Leasing Costs and Intangible Assets
Carrying Amount	74,468	75,503
Accumulated Amortization	(36,692)	(35,805)
Total	37,776	39,698
Above-market lease values
Deferred Leasing Costs and Intangible Assets
Carrying Amount	8,359	8,359
Accumulated Amortization	(7,081)	(6,875)
Total	$ 1,278	$ 1,484

Restricted Cash, Other Assets and Accrued and Other Liabilities - Summary of Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accrued and other liabilities:
Current and deferred tax liability	$ 24,637	$ 26,198
Operating lease liability	24,997	25,961
Accounts payable, accrued expenses and other liabilities	8,358	15,087
Interest payable	12,719	11,680
Prepaid rent and unearned revenue	12,251	7,688
Tenant security deposits	661	411
Unfunded CECL loan allowance	414	389
Other	219	219
Accrued and other liabilities	$ 84,256	$ 87,633
Operating lease liability [Extensible List]	Accrued and other liabilities	Accrued and other liabilities

Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Lending Commitments

The Company has lending commitments to borrowers pursuant to certain loan agreements in which the borrower may submit a request for funding contingent on achieving certain criteria, which must be approved by the Company as lender, such as leasing, performance of capital expenditures and construction in progress with an approved budget. At March 31, 2023, assuming the terms to qualify for future fundings, if any, had been met, total unfunded lending commitments for loans held for investment were $248.8 million for senior loans and $7.5 million for mezzanine loans. At December 31, 2022, total unfunded lending commitments for loans held for investment were $258.5 million for senior loans and $4.9 million for mezzanine loans.

Ground Lease Obligation

The Company’s operating leases include ground leases acquired with real estate.

At March 31, 2023 and December 31, 2022, the weighted average remaining lease term was 13.7 years and 13.7 years for ground leases, respectively.

The following table presents ground lease expense, included in property operating expense, for the three months ended March 31, 2023 and 2022 (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
Operating lease expense:
Minimum lease expense	$	777	$	768
Variable lease expense	—		—
	$	777	$	768

The operating lease liability for ground leases was determined using a weighted average discount rate of 5.3%. The following table presents future minimum rental payments, excluding contingent rents, on noncancellable ground leases on real estate as of March 31, 2023 (dollars in thousands):


Remainder of 2023	$	2,332
2024	2,213
2025	2,148
2026	2,073
2027	1,755
2028 and thereafter	15,499
Total lease payments	26,020
Less: Present value discount	8,419
Operating lease liability (Note 7)	$	17,601

For these ground leases, the Company has elected the practical expedient to combine lease and related nonlease components as a single lease component.

Office Lease

At March 31, 2023, the weighted average remaining lease term was 5.6 years for the office leases, which are located in New York, New York and Los Angeles, California.

For the three months ended March 31, 2023 and 2022, the following table summarizes lease expense, included in operating expense (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
Corporate Offices
Operating lease expense:
Fixed lease expense	$	315	$	200

	$	315	$	200

The operating lease liability for the office leases were determined using a weighted average discount rate of 2.36%. As of March 31, 2023, the Company’s future operating lease commitments for the corporate office leases were as follows (dollars in thousands):


	Corporate Offices(1)
Remainder of 2023	$	961
2024	1,293
2025	1,308
2026	1,323
2027	1,339
2028 and thereafter	1,729
Total lease payments	7,953
Less: Present value discount	557
Operating lease liability (Note 7)	$	7,396

__________________________________________

(1)The Company entered into a Los Angeles, California office lease in the first quarter of 2022, with rent payments beginning in 2023.

For these office leases, the Company has elected the practical expedient to combine lease and related nonlease components as a single lease component.

Litigation and Claims

The Company may be involved in litigation and claims in the ordinary course of the business. As of March 31, 2023, the Company was not involved in any legal proceedings that are expected to have a material adverse effect on the Company’s results of operations, financial position, or liquidity.

Fair Value - Fair Value - Summary of Assets Carried at Fair Value on a Nonrecurring Basis (Details) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) loan	Sep. 30, 2022 USD ($) loan	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Increase (decrease) of current expected credit loss reserve	$ 39,613		$ (866)
Loans and preferred equity held for investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Increase (decrease) of current expected credit loss reserve	$ 55,007	$ 57,200
Number of loans \| loan	2	2
Loans and preferred equity held for investment \| Washington, D.C.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Increase (decrease) of current expected credit loss reserve	$ 29,900
Number of loans \| loan	1
Loans and preferred equity held for investment \| Long Island City, New York
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Increase (decrease) of current expected credit loss reserve	$ 10,600
Number of loans \| loan	1
Development Mezzanine Loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Increase (decrease) of current expected credit loss reserve	$ 14,500
Expected time of asset resolution	3 years
Development Mezzanine Loan \| Milpitas, California
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Increase (decrease) of current expected credit loss reserve	$ 14,500
Number of loans \| loan	1
Rent per square foot \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input		25
Rent per square foot \| Minimum \| Loans and preferred equity held for investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input	25
Rent per square foot \| Minimum \| Development Mezzanine Loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input	42
Rent per square foot \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input		34
Rent per square foot \| Maximum \| Loans and preferred equity held for investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input	48
Rent per square foot \| Maximum \| Development Mezzanine Loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input	60
Capitalization Rate \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input		0.060
Capitalization Rate \| Minimum \| Loans and preferred equity held for investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input	0.060
Capitalization Rate \| Minimum \| Development Mezzanine Loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input	0.050
Capitalization Rate \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input		0.065
Capitalization Rate \| Maximum \| Loans and preferred equity held for investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input	0.075
Capitalization Rate \| Maximum \| Development Mezzanine Loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input	0.070
Discount Rate \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input		0.095
Discount Rate \| Minimum \| Loans and preferred equity held for investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input	0.090
Discount Rate \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input		0.122
Discount Rate \| Maximum \| Loans and preferred equity held for investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input	0.120
Fair value, measurements, nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets - PE Investments	$ 126,239			$ 79,596
Level 1 \| Fair value, measurements, nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets - PE Investments	0			0
Level 2 \| Fair value, measurements, nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets - PE Investments	0			0
Level 3 \| Fair value, measurements, nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets - PE Investments	$ 126,239			$ 79,596

Derivatives

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

The Company uses derivative instruments to manage the risk of changes in interest rates and foreign exchange rates, arising from both its business operations and economic conditions. Specifically, the Company enters into derivative instruments to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and cash payments, the values of which are driven by interest rates, principally relating to the Company’s investments. Additionally, the Company’s foreign operations expose the Company to fluctuations in foreign exchange rates. The Company enters into derivative instruments to protect the value or fix certain of these foreign-denominated amounts in terms of its functional currency, the U.S. dollar. Derivative instruments used in the Company’s risk management activities may be designated as qualifying hedge accounting relationships, designated hedges, or non-designated hedges.

As of March 31, 2023 and December 31, 2022, fair value of derivative assets and derivative liabilities were as follows (dollars in thousands):


	Non-Designated Hedges
	March 31, 2023		December 31, 2022
Derivative Assets
Foreign exchange contracts	$	2,148	$	1,599

Interest rate contracts	1		2
Included in other assets	$	2,149	$	1,601

As of March 31, 2023, the Company’s counterparties do not hold any cash collateral.

The following table summarizes the Company’s FX forwards and interest rate contracts as of March 31, 2023 and December 31, 2022:

Type of Derivatives

Notional Currency

Notional Amount (in thousands)

Range of Maturity Dates

Non-Designated

March 31, 2023

FX Forward

NOK

94,467

May 2023 - May 2024

Interest Rate Swap

USD

163

July 2023

December 31, 2022

FX Forward

NOK

99,733

February 2023 - May 2024

Interest Rate Swap

USD

285

July 2023

The table below represents the effect of the derivative financial instruments on the consolidated statements of operations for the three months ended March 31, 2023 and 2022 (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
Other gain (loss), net
Non-designated foreign exchange contracts	$	651	$	(221)
Non-designated interest rate contracts	(1)		8
	$	650	$	(213)

Offsetting Assets and Liabilities

The Company enters into agreements subject to enforceable netting arrangements with its derivative counterparties that allow the Company to offset the settlement of derivative assets and liabilities in the same currency by derivative instrument type or, in the event of default by the counterparty, to offset all derivative assets and liabilities with the same counterparty. The Company has elected not to net derivative asset and liability positions, notwithstanding the conditions for right of offset may have been met. The Company presents derivative assets and liabilities with the same counterparty on a gross basis on the consolidated balance sheets.


	Gross Amounts of Assets (Liabilities) Included on Consolidated Balance Sheets		Net Amounts of Assets (Liabilities)

March 31, 2023
Derivative Assets
Foreign exchange contracts	$	2,148		$	2,148

Interest rate contracts	1			1
	$	2,149		$	2,149





December 31, 2022
Derivative Assets
Foreign exchange contracts	$	1,599		$	1,599
Interest rate contracts	2			2
	$	1,601		$	1,601

The Company did not offset any of its derivatives positions as of March 31, 2023 and December 31, 2022.

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Summary of Segment Reporting

The following tables present segment reporting for the three months ended March 31, 2023 and 2022 (dollars in thousands):


	Senior and Mezzanine Loans and Preferred Equity		CRE Debt Securities		Net Leased and Other Real Estate		Corporate		Total
Three Months Ended March 31, 2023
Net interest income (expense)	$	33,243	$	—	$	—	$	(289)	$	32,954
Property and other income	—		—		22,551		3,056		25,607
Property operating expense	—		—		(5,852)		—		(5,852)
Transaction, investment and servicing expense	(501)		—		(24)		(310)		(835)
Interest expense on real estate	—		—		(5,509)		—		(5,509)
Depreciation and amortization	—		—		(7,938)		(58)		(7,996)
Increase of current expected credit loss reserve	(39,613)		—		—		—		(39,613)

Compensation and benefits	—		—		—		(8,805)		(8,805)
Operating expense	(4)		—		—		(3,469)		(3,473)


Other gain, net	—		—		655		—		655
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(6,875)		—		3,883		(9,875)		(12,867)
Equity in earnings of unconsolidated ventures	9,055		—		—		—		9,055
Income tax expense	(40)		(5)		(345)		—		(390)
Net income (loss)	$	2,140	$	(5)	$	3,538	$	(9,875)	$	(4,202)


	Senior and Mezzanine Loans and Preferred Equity		CRE Debt Securities		Net Leased and Other Real Estate		Corporate		Total
Three Months Ended March 31, 2022
Net interest income (expense)	$	29,365	$	886	$	—	$	(866)	$	29,385
Property and other income	121		133		24,168		22		24,444

Property operating expense	—		—		(6,724)		—		(6,724)
Transaction, investment and servicing expense	(1,051)		—		(100)		27		(1,124)
Interest expense on real estate	—		—		(7,556)		—		(7,556)
Depreciation and amortization	—		—		(8,551)		(43)		(8,594)
Decrease of current expected credit loss reserve	866		—		—		—		866

Compensation and benefits	—		—		—		(8,225)		(8,225)
Operating expense	(152)		(40)		(32)		(4,125)		(4,349)



Other gain (loss), net	(129)		—		10,369		48		10,288
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	29,020		979		11,574		(13,162)		28,411
Equity in earnings of unconsolidated ventures	25		—		—		—		25
Income tax benefit (expense)	63		—		(99)		—		(36)
Net income (loss)	$	29,108	$	979	$	11,475	$	(13,162)	$	28,400

Summary of Total Assets by Segment

The following table presents total assets by segment as of March 31, 2023 and December 31, 2022 (dollars in thousands):


Total Assets	Senior and Mezzanine Loans and Preferred Equity		CRE Debt Securities(1)		Net Leased and Other Real Estate		Corporate(2)		Total
March 31, 2023	$	3,445,340	$	15,415	$	842,203	$	301,055	$	4,604,013
December 31, 2022	3,580,912		15,459		864,856		289,162		4,750,389

_________________________________________

(1)Includes PE Investments totaling $2.8 million and $3.0 million as of March 31, 2023 and December 31, 2022, respectively.

(2)Includes cash, unallocated receivables and deferred costs and other assets, net.

Schedule of Revenue by Geographic Areas

Geography information on total income and long-lived assets are presented as follows (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
Total income by geography:
United States	$	105,556	$	73,445
Europe	4,722		4,969

Total(1)	$	110,278	$	78,414

Schedule of Long-lived Assets by Geographic Areas


	March 31, 2023		December 31, 2022
Long-lived assets by geography:
United States	$	528,266	$	532,380
Europe	237,589		254,068
Total(2)	$	765,855	$	786,448

_________________________________________

(1)Includes interest income, interest income on mortgage loans held in securitization trusts, property and other income and equity in earnings of unconsolidated ventures.

(2)Long-lived assets are comprised of real estate and real estate-related intangible assets, and excludes financial instruments and assets held for sale.

Real Estate, net and Real Estate Held for Sale - Minimum Future Rents (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Remainder of 2023	$ 57,208
2024	73,627
2025	67,305
2026	60,327
2027	57,209
2028 and thereafter	317,423
Total	$ 633,099

Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt

The following table presents debt as of March 31, 2023 and December 31, 2022 (dollars in thousands):


							March 31, 2023				December 31, 2022
	Capacity ($)		Recourse vs. Non-Recourse(1)	Final Maturity	Contractual Interest Rate		Principal Amount(2)		Carrying Value(2)		Principal Amount(2)		Carrying Value(2)

Securitization bonds payable, net
CLNC 2019-FL1(3)			Non-recourse	Aug-35	SOFR(4) + 1.87%		$	466,546	$	465,867	$	502,717	$	501,406
BRSP 2021-FL1(3)			Non-recourse	Aug-38	LIBOR + 1.49%		670,000		666,825		670,000		666,194
Subtotal securitization bonds payable, net							1,136,546		1,132,692		1,172,717		1,167,600

Mortgage and other notes payable, net
Net lease 1			Non-recourse	Sep-33	4.77%		200,000		198,801		200,000		198,778
Net lease 2(5)			Non-recourse	Jun-25	3.91%		153,280		154,085		162,449		164,752
Net lease 3			Non-recourse	Aug-26	4.08%		29,843		29,698		30,009		29,853
Net lease 4			Non-recourse	Oct-27	4.45%		22,412		22,412		22,559		22,559
Net lease 5(6)			Non-recourse	Nov-26	4.45%		17,385		17,117		17,486		17,200
Net lease 5(7)			Non-recourse	Mar-28	4.38%		11,462		11,025		11,526		11,089
Net lease 6			Non-recourse	Nov-26	4.45%		6,907		6,801		6,948		6,834
Net lease 7			Non-recourse	Jul-23	LIBOR + 2.15%		310		305		432		424
Net lease 8			Non-recourse	Nov-26	4.45%		3,202		3,152		3,220		3,168
















Other real estate 1			Non-recourse	Oct-24	4.47%		102,912		103,054		103,218		103,391
Other real estate 2			Non-recourse	Jan-25	4.30%		70,477		70,211		70,870		70,569

Loan 1(8)			Non-recourse	Jun-24	LIBOR + 3.00%		27,851		27,851		27,851		27,851
Subtotal mortgage and other notes payable, net							646,041		644,512		656,568		656,468

Bank credit facility
Bank credit facility	$	165,000	Recourse	Jan-27 (9)	SOFR + 2.25%		—		—		—		—
Subtotal bank credit facility							—		—		—		—

Master repurchase facilities


Bank 1	600,000		Limited Recourse(10)	April-27(11)	SOFR + 2.17%	(12)	522,677		522,677		415,892		415,892
Bank 2	600,000		Limited Recourse(10)	Apr-26(13)	LIBOR/SOFR + 1.88%	(12)	309,113		309,113		351,539		351,539
Bank 3	400,000		(14)	June-27(15)	SOFR + 1.74%	(12)	236,718		236,718		247,404		247,404
Bank 4	400,000		Limited Recourse(10)	July-27(16)	SOFR + 1.86%	(12)	223,668		223,668		220,054		220,054
Bank 5	250,000		Limited Recourse(10)	Jun-25(17)	LIBOR/SOFR + 1.86%	(12)	—		—		105,104		105,104

Subtotal master repurchase facilities	$	2,250,000					1,292,176		1,292,176		1,339,993		1,339,993











Subtotal credit facilities							1,292,176		1,292,176		1,339,993		1,339,993

Total							$	3,074,763	$	3,069,380	$	3,169,278	$	3,164,061

_________________________________________

(1)Subject to customary non-recourse carveouts.

(2)Difference between principal amount and carrying value of securitization bonds payable, net and mortgage and other notes payable, net is attributable to deferred financing costs, net and premium/discount on mortgage notes payable.

(3)The Company, through indirect Cayman subsidiaries, securitized commercial mortgage loans originated by the Company. Senior notes issued by the securitization trusts were generally sold to third parties and subordinated notes retained by the Company. These securitizations are accounted for as

secured financing with the underlying mortgage loans pledged as collateral. Principal payments from underlying collateral loans must be applied to repay the notes until fully paid off, irrespective of the contractual maturities on the notes. Underlying collateral loans have initial terms of two to three years.

(4)As of June 17, 2021, the benchmark index interest rate was converted from the one-month London Interbank Offered Rates (“LIBOR”) to Compounded Secured Overnight Financing Rate (“SOFR”), plus a benchmark adjustment of 11.448 basis points. As of February 19, 2022, the benchmark index interest rate was converted from Compounded SOFR to Term SOFR, plus a benchmark adjustment of 11.448 basis points, conforming with the indenture agreement.

(5)As of March 31, 2023, the outstanding principal of the mortgage payable was NOK 1.6 billion, which translated to $153.3 million.

(6)Payment terms are periodic payment of principal and interest for debt on two properties and periodic payment of interest only with principal at maturity (except for principal repayments to release collateral properties disposed) for debt on one property.

(7)Represents a mortgage note collateralized by three properties.

(8)The current maturity of the note payable is June 2023, with one one-year extension available at the Company’s option, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.

(9)On January 28, 2022, the Company, through its subsidiaries, including the OP, entered into an Amended and Restated Credit Agreement. Refer to “Bank Credit Facility” within this note for more details.

(10)Recourse solely with respect to 25.0% of the financed amount.

(11)The current maturity date is April 2025, with two one-year extension options, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents.

(12)Represents the weighted average spread as of March 31, 2023. The contractual interest rate depends upon asset type and characteristics and ranges from one-month LIBOR or SOFR plus 1.50% to 3.00%.

(13)The current maturity date is April 2025, with a one-year extension available at the option of the Company, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents.

(14)Recourse is either 25.0% or 50.0% depending on loan metrics.

(15)The current maturity date is June 2025, with two one-year extensions available at the option of the Company, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents.

(16)The current maturity date is July 2024, with three one-year extension options, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents.

(17)The current maturity date is June 2023, with a two-year extension available at the option of the Company, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing agreements.

Future Minimum Principal Payments

The following table summarizes future scheduled minimum principal payments at March 31, 2023 based on initial maturity dates or extended maturity dates to the extent criteria are met and the extension option is at the borrower’s discretion (dollars in thousands):


	Total		Securitization Bonds Payable, Net		Mortgage Notes Payable, Net		Credit Facilities
Remaining 2023	$	1,906	$	—	$	1,906	$	—
2024	132,982		—		132,982		—
2025	226,086		—		226,086		—
2026	363,684		—		54,571		309,113
2027	1,003,419		—		20,356		983,063
2028 and thereafter	1,346,686		1,136,546		210,140		—
Total	$	3,074,763	$	1,136,546	$	646,041	$	1,292,176

Bank Credit Facility

The Company uses bank credit facilities (including term loans and revolving facilities) to finance the business. These financings may be collateralized or non-collateralized and may involve one or more lenders. Credit facilities typically have maturities ranging from two to five years and may accrue interest at either fixed or floating rates.

On January 28, 2022, the OP (together with certain subsidiaries of the OP from time to time party thereto as borrowers, collectively, the “Borrowers”) entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”), and the several lenders from time to time party thereto (the “Lenders”), pursuant to which the Lenders agreed to provide a revolving credit facility in the aggregate principal amount of up to $165.0 million, of which up to $25.0 million is available as letters of credit. Loans under the Credit Agreement may be advanced in U.S. dollars and certain foreign currencies, including euros, pounds sterling and swiss francs. The Credit Agreement amended and restated the OP’s prior $300.0 million revolving credit facility that would have matured on February 1, 2022.

The Credit Agreement also includes an option for the Borrowers to increase the maximum available principal amount up to $300.0 million, subject to one or more new or existing Lenders agreeing to provide such additional loan commitments and satisfaction of other customary conditions.

Advances under the Credit Agreement accrue interest at a per annum rate equal to, at the applicable Borrower’s election, either (x) an adjusted SOFR rate plus a margin of 2.25%, or (y) a base rate equal to the highest of (i) the Wall Street Journal’s prime rate, (ii) the federal funds rate plus 0.50% and (iii) the adjusted SOFR rate plus 1.00%, plus a margin of 1.25%. An unused commitment fee at a rate of 0.25% or 0.35%, per annum, depending on the amount of facility utilization, applies to un-utilized borrowing capacity under the Credit Agreement. Amounts owed under the Credit Agreement may be prepaid at any time without premium or penalty, subject to customary breakage costs in the case of borrowings with respect to which a SOFR rate election is in effect.

The maximum amount available for borrowing at any time under the Credit Agreement is limited to a borrowing base valuation of certain investment assets, with the valuation of such investment assets generally determined according to a percentage of adjusted net book value. As of March 31, 2023, the borrowing base valuation is sufficient to permit borrowings of up to the entire $165.0 million. If any borrowing is outstanding for more than 180 days after its initial draw, the borrowing base valuation will be reduced by 50% until all outstanding borrowings are repaid in full. The ability to borrow new amounts under the Credit Agreement terminates on January 31, 2026, at which time the OP may, at its election and by written notice to the Administrative Agent, extend the termination date for two additional terms of six months each, subject to the terms and conditions in the Credit Agreement, resulting in a latest termination date of January 31, 2027.

The obligations of the Borrowers under the Credit Agreement are guaranteed pursuant to a Guarantee and Collateral Agreement by substantially all material wholly owned subsidiaries of the OP (the “Guarantors”) in favor of the Administrative Agent (the “Guarantee and Collateral Agreement”) and, subject to certain exceptions, secured by a pledge of substantially all equity interests owned by the Borrowers and the Guarantors, as well as by a security interest in deposit accounts of the Borrowers and the Guarantors in which the proceeds of investment asset distributions are maintained.

The Credit Agreement contains various affirmative and negative covenants, including, among other things, the obligation of the Company to maintain REIT status and be listed on the New York Stock Exchange, and limitations on debt, liens and restricted payments. In addition, the Credit Agreement includes the following financial covenants applicable to the OP and its consolidated subsidiaries: (a) minimum consolidated tangible net worth of the OP to be greater than or equal to the sum of (i) $1,112,000,000 and (ii) 70% of the net cash proceeds received by the OP from any offering of its common equity after September 30, 2021 and of the net cash proceeds from any offering by the Company of its common equity to the extent such proceeds are contributed to the OP, excluding any such proceeds that are contributed to the OP within ninety (90) days of receipt and applied to acquire capital stock of the OP; (b) the OP’s ratio of EBITDA plus lease expenses to fixed charges for any period of four (4) consecutive fiscal quarters to be not less than 1.50 to 1.00; (c) the OP’s minimum interest coverage ratio to be not less than 3.00 to 1.00; and (d) the OP’s ratio of consolidated total debt to consolidated total assets to be not more than 0.80 to 1.00. The Credit Agreement also includes customary events of default, including, among other things, failure to make payments when due, breach of covenants or representations, cross default to material indebtedness, material judgment defaults, bankruptcy matters involving any Borrower or any Guarantor and certain change of control events. The occurrence of an event of default will limit the ability of the OP and its subsidiaries to make distributions and may result in the termination of the credit facility, acceleration of repayment obligations and the exercise of remedies by the Lenders with respect to the collateral.

As of March 31, 2023, the Company was in compliance with all of its financial covenants under the Credit Agreement.

Securitization Financing Transactions

Securitization bonds payable, net represent debt issued by securitization vehicles consolidated by the Company. Senior notes issued by these securitization trusts were generally sold to third parties and subordinated notes retained by the Company. Payments from underlying collateral loans must be applied to repay the notes until fully paid off, irrespective of the contractual maturities of the loans.

CLNC 2019-FL1

In October 2019, the Company executed a securitization transaction, through wholly-owned subsidiaries, CLNC 2019-FL1, Ltd. and CLNC 2019-FL1, LLC (collectively, “CLNC 2019-FL1”), which resulted in the sale of $840.4 million of investment grade notes. As of March 31, 2023, the securitization reflects an advance rate of 73.75% at a weighted average cost of funds of Adjusted Term SOFR plus 1.87% (before transaction expenses) and is collateralized by a pool of 17 senior loan investments.

On March 5, 2021, the Financial Conduct Authority of the U.K. (the “FCA”) announced that LIBOR tenors relevant to CLNC 2019-FL1 would cease to be published or no longer be representative after June 30, 2023. The Alternative Reference Rates Committee (the “ARRC”) interpreted this announcement to constitute a benchmark transition event. As of June 17, 2021, the benchmark index interest rate was converted from LIBOR to compounded SOFR, plus a benchmark adjustment of 11.448 basis points with a lookback period equal to the number of calendar days in the applicable Interest Accrual Period plus two SOFR business days, conforming with the indenture agreement and recommendations from the ARRC. Compounded SOFR for any interest accrual period shall be the “30-Day Average SOFR” as published by the Federal Reserve Bank of New York on each benchmark determination date.

As of February 19, 2022, the benchmark index interest rate was converted from Compounded SOFR to Term SOFR, plus a benchmark adjustment of 11.448 basis points, conforming with the indenture agreement. Term SOFR for any interest accrual period shall be the one-month CME Term SOFR Reference Rate as published by the CME Group Benchmark Administration on each benchmark determination date.

As of March 31, 2023, less than half of the CLNC 2019-FL1 mortgage assets are indexed to LIBOR and the borrowings under CLNC 2019-FL1 are indexed to Term SOFR, creating an underlying benchmark index rate basis difference between a portion of the CLNC 2019-FL1 assets and liabilities, which is meant to be mitigated by the benchmark replacement adjustment described above. The Company has the right to transition the CLNC 2019-FL1 mortgage assets to SOFR, eliminating the basis difference between CLNC 2019-FL1 assets and liabilities, and will make the determination taking into account the loan portfolio as a whole. The transition to SOFR is not expected to have a material impact to CLNC 2019-FL1’s assets and liabilities and related interest expense.

CLNC 2019-FL1 included a two-year reinvestment feature that allowed the Company to contribute existing or newly originated loan investments in exchange for proceeds from repayments or repurchases of loans held in CLNC 2019-FL1, subject to the satisfaction of certain conditions set forth in the indenture. The reinvestment period for CLNC 2019-FL1 expired on October 19, 2021. During the first quarter of 2023, one loan held in CLNC 2019-FL1 was fully repaid and one loan was partially repaid totaling $36.2 million. At March 31, 2023, the Company had $632.6 million of unpaid principal balance of CRE debt investments financed with CLNC 2019-FL1.

Additionally, CLNC 2019-FL1 contains note protection tests that can be triggered as a result of contributed loan defaults, losses, and certain other events outlined in the indenture, beyond established thresholds. A note protection test failure that is not remedied can result in the redirection of interest proceeds from the below investment grade tranches to amortize the most senior outstanding tranche. While the Company continues to closely monitor all loan investments contributed to CLNC 2019-FL1, a deterioration in the performance of an underlying loan could negatively impact its liquidity position.

BRSP 2021-FL1

In July 2021, the Company executed a securitization transaction through wholly-owned subsidiaries, BRSP 2021-FL1, Ltd. and BRSP 2021-FL1, LLC (collectively, “BRSP 2021-FL1”), which resulted in the sale of $670.0 million of investment grade notes. The securitization reflects an advance rate of 83.75% at a weighted average cost of funds of LIBOR plus 1.49% (before transaction costs), and is collateralized by a pool of 28 senior loan investments.

BRSP 2021-FL1 includes a two-year reinvestment feature that allows the Company to contribute existing or newly originated loan investments in exchange for proceeds from repayments or repurchases of loans held in BRSP 2021-FL1, subject to the satisfaction of certain conditions set forth in the indenture. In addition to existing eligible loans available for reinvestment, the continued origination of securitization eligible loans is required to ensure that the Company reinvest the available proceeds within BRSP 2021-FL1. For the quarter ended March 31, 2023, two loans held in BRSP 2021-FL1 were fully repaid, totaling $48.0 million. The Company replaced the repaid loans by contributing existing loan investments of equal value. At March 31, 2023, the Company had $800.0 million of unpaid principal balance of CRE debt investments financed with BRSP 2021-FL1.

Additionally, BRSP 2021-FL1 contains note protection tests that can be triggered as a result of contributed loan defaults, losses, and certain other events outlined in the indenture, beyond established thresholds. A note protection test failure that is not remedied can result in the redirection of interest proceeds from the below investment grade tranches to amortize the most senior outstanding tranche. The Company will continue to closely monitor all loan investments contributed to BRSP 2021-FL1, a deterioration in the performance of an underlying loan could negatively impact its liquidity position.

As of March 31, 2023, the Company had $1.4 billion carrying value of CRE debt investments and other assets financed with $1.1 billion of securitization bonds payable, net. As of December 31, 2022, the Company had $1.5 billion carrying value of CRE debt investments financed with $1.2 billion of securitization bonds payable, net.

Master Repurchase Facilities

As of March 31, 2023, the Company, through subsidiaries, had entered into repurchase agreements with multiple global financial institutions to provide an aggregate principal amount of up to $2.3 billion to finance the origination of first mortgage loans and senior loan participations secured by CRE debt investments (“Master Repurchase Facilities”). The Company agreed to guarantee certain obligations under the Master Repurchase Facilities, which contain representations, warranties, covenants, conditions precedent to funding, events of default and indemnities that are customary for agreements of this type. The Master Repurchase Facilities act as revolving loan facilities that can be paid down as assets are repaid or sold and re-drawn upon for new investments. As of March 31, 2023, the Company was in compliance with all of its financial covenants under the Master Repurchase Facilities.

As of March 31, 2023, the Company had $1.8 billion carrying value of CRE debt investments financed with $1.3 billion under the Master Repurchase Facilities. As of December 31, 2022, the Company had $1.8 billion carrying value of CRE debt investments financed with $1.3 billion under the Master Repurchase Facilities.

As of March 31, 2023, the Company had one counterparty which held collateral that exceeded amounts borrowed by more than 10% of its total equity. The Company’s net exposure to Bank 1 was $211.8 million. As of December 31, 2022, the Company did not hold any Master Repurchase Facilities where the collateral exceeded the amounts borrowed by more than 10% of its total equity.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Restricted Cash, Other Assets and Accrued and Other Liabilities

3 Months Ended

Mar. 31, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Restricted Cash, Other Assets and Accrued and Other Liabilities

The following table presents a summary of restricted cash as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023		December 31, 2022
Restricted cash:
Borrower escrow deposits	$	65,323	$	79,055
Capital expenditure reserves	9,030		8,623
Real estate escrow reserves	2,623		1,583
Working capital and other reserves	2,186		2,145
Tenant lockboxes	861		1,102

Total	$	80,023	$	92,508

The following table presents a summary of other assets as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023		December 31, 2022
Other assets:
Right-of-use lease asset	$	24,219	$	25,237
Tax receivable and deferred tax assets	19,080		19,117
Deferred financing costs, net - credit facilities	3,086		4,630
Investments in unconsolidated ventures ($2,790 and $3,035 at fair value, respectively)	2,790		3,035

Derivative assets	2,149		1,601
Prepaid expenses and other	1,252		2,053
Total	$	52,576	$	55,673

The following table presents a summary of accrued and other liabilities as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023		December 31, 2022
Accrued and other liabilities:
Operating lease liability	$	24,997	$	25,961
Current and deferred tax liability	24,637		26,198
Interest payable	12,719		11,680
Prepaid rent and unearned revenue	12,251		7,688
Accounts payable, accrued expenses and other liabilities	8,358		15,087
Tenant security deposits	661		411
Unfunded CECL loan allowance	414		389
Other	219		219
Total	$	84,256	$	87,633

Investments under Fair Value Option

Private Funds

The Company elected to account for its limited partnership interests in PE Investments under the fair value option, which interests ranged from 1.0% to 15.6% as of March 31, 2023 and December 31, 2022. The Company records equity in earnings for these investments based on a change in fair value of its share of projected future cash flows.

Investments in Unconsolidated Ventures

The Company realized a one-time gain from its ratable share of dispute resolution proceeds of approximately $9.0 million from the senior mezzanine lender at the Company’s prior Los Angeles, California mixed-use project construction mezzanine loan and retained B-participation investment, which is recorded in equity in earnings of unconsolidated ventures on the Company’s consolidated statements of operations. In connection with the settlement, effective January 26, 2023, the Company has no further interest in the loan or investment.

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Total Company’s Stockholders’ Equity	Common Stock Class A	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income	Noncontrolling Interests in Investment Entities	Noncontrolling Interests in the Operating Partnership
Beginning balance (in shares) at Dec. 31, 2021			129,769
Beginning balance at Dec. 31, 2021	$ 1,491,315	$ 1,455,288	$ 1,298	$ 2,855,766	$ (1,410,562)	$ 8,786	$ 1,472	$ 34,555
Increase (Decrease) in Stockholders' Equity
Distributions	(110)						(110)
Issuance and amortization of equity-based compensation	1,880	1,880		1,880
Other comprehensive income (loss)	676	660				660		16
Dividends and distributions declared	(25,241)	(24,657)			(24,657)			(584)
Shares canceled for tax withholding on vested stock awards (in shares)			(136)
Shares canceled for tax withholding on vested stock awards	(1,000)	(1,000)	$ (2)	(998)
Reallocation of equity	0	(13)		(13)				13
Net income (loss)	28,400	27,724			27,724		22	654
Ending balance (in shares) at Mar. 31, 2022			129,633
Ending balance at Mar. 31, 2022	$ 1,495,920	1,459,882	$ 1,296	2,856,635	(1,407,495)	9,446	1,384	34,654
Increase (Decrease) in Stockholders' Equity
Dividends and distributions declared per share of common stock (in dollars per share)	$ 0.19
Beginning balance (in shares) at Dec. 31, 2022			128,872
Beginning balance at Dec. 31, 2022	$ 1,389,024	1,387,768	$ 1,289	2,853,723	(1,466,568)	(676)	1,256	0
Increase (Decrease) in Stockholders' Equity
Distributions	(28)						(28)
Issuance and amortization of equity-based compensation (in shares)			1,527
Issuance and amortization of equity-based compensation	2,295	2,295	$ 15	2,280
Other comprehensive income (loss)	(3,463)	(3,463)				(3,463)
Dividends and distributions declared	(26,170)	(26,170)			(26,170)
Shares canceled for tax withholding on vested stock awards (in shares)			(453)
Shares canceled for tax withholding on vested stock awards	(2,885)	(2,885)	$ (5)	(2,880)
Net income (loss)	(4,202)	(4,127)			(4,127)		(75)
Ending balance (in shares) at Mar. 31, 2023			129,946
Ending balance at Mar. 31, 2023	$ 1,354,571	$ 1,353,418	$ 1,299	$ 2,853,123	$ (1,496,865)	$ (4,139)	$ 1,153	$ 0
Increase (Decrease) in Stockholders' Equity
Dividends and distributions declared per share of common stock (in dollars per share)	$ 0.20

Loans and Preferred Equity Held for Investment, net (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Loans and Preferred Equity Held for Investment, net

The following table provides a summary of the Company’s loans and preferred equity held for investment, net (dollars in thousands):


	March 31, 2023							December 31, 2022
	Unpaid Principal Balance		Carrying Value		Weighted Average Coupon(1)		Weighted Average Maturity in Years	Unpaid Principal Balance		Carrying Value		Weighted Average Coupon(1)		Weighted Average Maturity in Years





Variable rate
Senior loans	$	1,932,096	$	1,925,969	8.3	%	3.3	$	1,981,973	$	1,972,952	7.9	%	3.5
Securitized loans(2)	1,432,619		1,430,720		8.0	%	2.5	1,468,790		1,466,754		7.8	%	2.7
Mezzanine loans	12,330		12,450		15.8	%	0.7	12,000		12,120		15.4	%	0.0

	3,377,045		3,369,139					3,462,763		3,451,826
Fixed rate
Mezzanine loans	103,121		103,033		12.2	%	2.4	100,765		100,666		12.2	%	2.6
Preferred equity interests	22,941		22,723		12.0	%	9.7	22,720		22,497		12.0	%	9.9
	126,062		125,756					123,485		123,163
Loans held for investment	3,503,107		3,494,895					3,586,248		3,574,989

CECL reserve	—		(145,836)					—		(106,247)
Loans and preferred equity held for investment, net	$	3,503,107	$	3,349,059				$	3,586,248	$	3,468,742

_________________________________________

(1)Calculated based on contractual interest rate.

(2)Represents loans transferred into securitization trusts that are consolidated by the Company.

Schedule of Mortgage Loans on Real Estate

Activity relating to the Company’s loans and preferred equity held for investment, net was as follows (dollars in thousands):


	Carrying Value
	Three Months Ended March 31,
	2023		2022
Balance at January 1	$	3,468,742	$	3,449,009
Acquisitions/originations/additional funding	16,388		498,195
Loan maturities/principal repayments	(101,368)		(227,897)

Discount accretion/premium amortization	3,038		2,999
Capitalized interest	1,848		969
(Increase) decrease of CECL reserve(1)	(39,589)		1,343
Charge-off	—		1,251


Balance at March 31	$	3,349,059	$	3,725,869

_________________________________________

(1)Provision for loan losses excludes a de minimis amount for the three months ended March 31, 2023 and $0.5 million for the three months ended March 31, 2022 as determined by the Company’s PD/LGD model for unfunded commitments reported on the consolidated statement of operations, with a corresponding offset to accrued and other liabilities recorded on the Company’s consolidated balance sheets.

Aging Summary of Loans

The following table provides an aging summary of loans and preferred equity held for investment at carrying values before CECL reserve (dollars in thousands):


	Current or Less Than 30 Days Past Due		30-59 Days Past Due		60-89 Days Past Due(1)		90 Days or More Past Due(2)(3)		Total Loans and Preferred Equity
March 31, 2023	$	3,369,528	$	—	$	56,935	$	68,432	$	3,494,895
December 31, 2022	3,494,437		68,432		—		12,120		3,574,989

_________________________________________

(1)Represents the Washington, D.C. office senior loan which is in maturity default and was placed on nonaccrual status on February 9, 2023.

(2)At March 31, 2023 represents the Long Island City, New York office senior loan which is in interest payment default and was placed on a nonaccrual status on September 9, 2022. Included in 30-59 Days Past Due at December 31, 2022.

(3)At December 31, 2022 represents the New York, New York Hotel mezzanine loan which was in maturity default as of March 2022. In January 2023, the New York, New York Hotel mezzanine loan was extended to December 2023.

Allowance for Loan Losses

The following table provides details on the changes in CECL reserves (dollars in thousands):


CECL reserve at December 31, 2022	$	106,247
Increase (decrease) in general CECL reserve(1)	(15,418)
Increase in specific CECL reserve(2)	55,007

CECL reserve at March 31, 2023	$	145,836

CECL reserve at December 31, 2021	$	36,598
Increase (decrease) in general CECL reserve(1)	(1,343)

Charge-offs of CECL reserve(3)	(1,251)
CECL reserve at March 31, 2022	$	34,004

_________________________________________

(1)Excludes the increase (decrease) in CECL reserves related to unfunded commitments reported on the consolidated statement of operations: a de minimis amount for the three months ended March 31, 2023 and $0.5 million for the three months ended March 31, 2022.

(2)During the first quarter of 2023, the Company recorded specific CECL reserves of $29.9 million related to one Washington, D.C. office senior loan, $14.5 million related to one development mezzanine loan located in Milpitas, California (the “Development Mezzanine Loan”) and $10.6 million related to one Long Island City, New York office senior loan. The specific CECL reserves for the two office senior loans were based on the estimated fair value of the collateral using a discounted cash flow model, which included inputs based on the location, type and nature of the property, current and prospective leasing data and anticipated market conditions. The specific CECL reserve for the Development Mezzanine Loan was recorded in connection with the restructuring and modification of the loan in April 2023, which is collateralized by multifamily with a retail component. The specific CECL reserve was based on the estimated proceeds the Company expects to receive upon the resolution of the asset. Refer to Note 13, “Fair Value” for information on valuation inputs.

(3)During the first quarter of 2022, the Company received a $36.5 million repayment on one senior loan collateralized by a student housing property, which was $1.3 million less than the unpaid principal balance. As such, during the fourth quarter of 2021, the Company had recorded a $1.3 million specific CECL reserve on the loan, as the loss was probable at that point in time and was subsequently charged off in the first quarter of 2022.

Summary of Loans and Preferred Equity Held for Investment by Year of Origination and Credit Quality Risk Ranking

The following tables provide a summary by carrying values before any CECL reserves of the Company’s loans and preferred equity held for investment by year of origination and credit quality risk ranking (dollars in thousands) as of March 31, 2023 and December 31, 2022, respectively. Refer to Note 2, “Summary of Significant Accounting Policies” for loan risk ranking definitions.


	March 31, 2023
	Year of Origination
Risk Rankings	2023		2022		2021		2020		2019 and earlier		Total
Senior loans

2	$	—	$	—	$	93,778	$	—	$	25,929	$	119,707
3	—		852,187		1,174,409		96,178		486,498		2,609,272
4	—		—		108,422		—		325,591		434,013
5	—		—		—		—		193,697		193,697
Total Senior loans	—		852,187		1,376,609		96,178		1,031,715		3,356,689

Mezzanine loans



3	—		24,799		—		—		32,489		57,288
4	1,028		—		—		—		12,450		13,478
5	—		—		—		—		44,717		44,717
Total Mezzanine loans	1,028		24,799		—		—		89,656		115,483

Preferred equity interests



3	—		22,723		—		—		—		22,723


Total Preferred equity interests	—		22,723		—		—		—		22,723

Total Loans and preferred equity held for investment	$	1,028	$	899,709	$	1,376,609	$	96,178	$	1,121,371	$	3,494,895

As of March 31, 2023, the weighted average risk ranking for loans and preferred equity held for investment was 3.2.


	December 31, 2022
	Year of Origination
Risk Rankings	2022		2021		2020		2019		2018 and Earlier		Total
Senior loans

2	$	—	$	141,457	$	42,710	$	25,904	$	—	$	210,071
3	845,097		1,267,092		53,386		112,689		291,996		2,570,260
4	—		24,871		—		192,920		304,822		522,613
5	—		—		—		68,330		68,432		136,762
Total Senior loans	845,097		1,433,420		96,096		399,843		665,250		3,439,706

Mezzanine loans



3	24,056		—		—		—		4,459		28,515
4	—		—		—		72,151		—		72,151
5	—		—		—		—		12,120		12,120
Total Mezzanine loans	24,056		—		—		72,151		16,579		112,786

Preferred equity interests



3	22,497		—		—		—		—		22,497


Total Preferred equity interests	22,497		—		—		—		—		22,497

Total Loans and Preferred Equity held for investment	$	891,650	$	1,433,420	$	96,096	$	471,994	$	681,829	$	3,574,989

As of December 31, 2022, the weighted average risk ranking for loans and preferred equity held for investment was 3.2.

Deferred Leasing Costs and Other Intangibles - Summary of the Amortization of Deferred Leasing Costs and Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Below-market lease values	$ 339	$ 330
Net increase to property operating income	140	42
Deferred leasing costs	664	806
Amortization expense	1,947	2,408
Above-market lease values
Finite-Lived Intangible Assets [Line Items]
Amortization of above-market values	199	288
In-place lease values
Finite-Lived Intangible Assets [Line Items]
Amortization of above-market values	$ 1,283	$ 1,602

Deferred Leasing Costs and Other Intangibles (Tables)

3 Months Ended

Mar. 31, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets


	March 31, 2023
	Carrying Amount		Accumulated Amortization		Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	74,468	$	(36,692)	$	37,776
Deferred leasing costs	28,533		(16,457)		12,076
Above-market lease values	8,359		(7,081)		1,278
	$	111,360	$	(60,230)	$	51,130
Intangible Liabilities
Below-market lease values	$	16,075	$	(11,581)	$	4,494


	December 31, 2022
	Carrying Amount		Accumulated Amortization		Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	75,503	$	(35,805)	$	39,698
Deferred leasing costs	28,641		(15,843)		12,798
Above-market lease values	8,359		(6,875)		1,484
	$	112,503	$	(58,523)	$	53,980
Intangible Liabilities
Below-market lease values	$	16,074	$	(11,235)	$	4,839

Schedule of Deferred Leasing Costs


	March 31, 2023
	Carrying Amount		Accumulated Amortization		Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	74,468	$	(36,692)	$	37,776
Deferred leasing costs	28,533		(16,457)		12,076
Above-market lease values	8,359		(7,081)		1,278
	$	111,360	$	(60,230)	$	51,130
Intangible Liabilities
Below-market lease values	$	16,075	$	(11,581)	$	4,494


	December 31, 2022
	Carrying Amount		Accumulated Amortization		Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	75,503	$	(35,805)	$	39,698
Deferred leasing costs	28,641		(15,843)		12,798
Above-market lease values	8,359		(6,875)		1,484
	$	112,503	$	(58,523)	$	53,980
Intangible Liabilities
Below-market lease values	$	16,074	$	(11,235)	$	4,839

Schedule of Deferred Costs and Other Intangible Assets and Liabilities

The following table summarizes the amortization of deferred leasing costs, intangible assets and intangible liabilities for the three months ended March 31, 2023 and 2022 (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
Above-market lease values	$	(199)	$	(288)
Below-market lease values	339		330
Net increase to property operating income	$	140	$	42

In-place lease values	$	1,283	$	1,602
Deferred leasing costs	664		806

Amortization expense	$	1,947	$	2,408

Schedule of Future Amortization Expense



	2023		2024		2025		2026		2027		2028 and thereafter		Total
Above-market lease values	$	(431)	$	(448)	$	(270)	$	(91)	$	(38)	$	—	$	(1,278)
Below-market lease values	1,034		1,379		1,378		703		—		—		4,494
Net increase (decrease) to property operating income	$	603	$	931	$	1,108	$	612	$	(38)	$	—	$	3,216

In-place lease values	$	3,721	$	4,684	$	3,999	$	3,165	$	3,062	$	19,145	$	37,776
Deferred leasing costs	1,924		2,290		1,873		967		849		4,173		12,076
Amortization expense	$	5,645	$	6,974	$	5,872	$	4,132	$	3,911	$	23,318	$	49,852

Restricted Cash, Other Assets and Accrued and Other Liabilities - Investments in Unconsolidated Ventures (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Mixed-use project \| Core \| Senior Mezzanine Lender
Schedule of Equity Method Investments [Line Items]
Realized gain	$ 9.0

Debt - Schedule of Debt (Details) kr in Billions	3 Months Ended
Debt - Schedule of Debt (Details) kr in Billions	Mar. 31, 2023 USD ($) property forwardSwap extension	Mar. 31, 2023 NOK (kr) property forwardSwap	Dec. 31, 2022 USD ($)	Feb. 19, 2022	Jun. 17, 2021
Debt Instrument [Line Items]
Principal amount	$ 3,074,763,000		$ 3,169,278,000
Carrying value	3,069,380,000		3,164,061,000
Mortgage and other notes payable, net	644,512,000		656,468,000
Securitization bonds payable, net
Debt Instrument [Line Items]
Principal amount	1,136,546,000		1,172,717,000
Carrying value	1,132,692,000		1,167,600,000
Mortgage and other notes payable, net
Debt Instrument [Line Items]
Principal amount	646,041,000		656,568,000
Carrying value	$ 644,512,000		656,468,000
Mortgage and other notes payable, net \| Net lease 1
Debt Instrument [Line Items]
Contractual interest rate	4.77%	4.77%
Principal amount	$ 200,000,000		200,000,000
Carrying value	$ 198,801,000		198,778,000
Mortgage and other notes payable, net \| Net lease 2
Debt Instrument [Line Items]
Contractual interest rate	3.91%	3.91%
Principal amount	$ 153,280,000		162,449,000
Carrying value	$ 154,085,000		164,752,000
Number of properties (in properties) \| property	3	3
Mortgage and other notes payable, net \| Net lease 3
Debt Instrument [Line Items]
Contractual interest rate	4.08%	4.08%
Principal amount	$ 29,843,000		30,009,000
Carrying value	$ 29,698,000		29,853,000
Mortgage and other notes payable, net \| Net lease 4
Debt Instrument [Line Items]
Contractual interest rate	4.45%	4.45%
Principal amount	$ 22,412,000		22,559,000
Carrying value	$ 22,412,000		22,559,000
Mortgage and other notes payable, net \| Net lease 5
Debt Instrument [Line Items]
Contractual interest rate	4.45%	4.45%
Principal amount	$ 17,385,000		17,486,000
Carrying value	17,117,000		17,200,000
Mortgage and other notes payable, net	$ 153,300,000	kr 1.6
Mortgage and other notes payable, net \| Net lease 5
Debt Instrument [Line Items]
Contractual interest rate	4.38%	4.38%
Principal amount	$ 11,462,000		11,526,000
Carrying value	$ 11,025,000		11,089,000
Number of properties (in properties) \| property	2	2
Number of properties with interest only payments (in properties) \| forwardSwap	1	1
Mortgage and other notes payable, net \| Net lease 6
Debt Instrument [Line Items]
Contractual interest rate	4.45%	4.45%
Principal amount	$ 6,907,000		6,948,000
Carrying value	6,801,000		6,834,000
Mortgage and other notes payable, net \| Net lease 7
Debt Instrument [Line Items]
Principal amount	310,000		432,000
Carrying value	$ 305,000		424,000
Mortgage and other notes payable, net \| Net lease 7 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	2.15%
Mortgage and other notes payable, net \| Net lease 8
Debt Instrument [Line Items]
Contractual interest rate	4.45%	4.45%
Principal amount	$ 3,202,000		3,220,000
Carrying value	$ 3,152,000		3,168,000
Mortgage and other notes payable, net \| Other real estate 1
Debt Instrument [Line Items]
Contractual interest rate	4.47%	4.47%
Principal amount	$ 102,912,000		103,218,000
Carrying value	$ 103,054,000		103,391,000
Mortgage and other notes payable, net \| Other real estate 2
Debt Instrument [Line Items]
Contractual interest rate	4.30%	4.30%
Principal amount	$ 70,477,000		70,870,000
Carrying value	70,211,000		70,569,000
Mortgage and other notes payable, net \| Loan 1
Debt Instrument [Line Items]
Principal amount	27,851,000		27,851,000
Carrying value	$ 27,851,000		27,851,000
Number of optional extensions to initial maturity date \| extension	1
Debt term extension available (in years)	1 year
Mortgage and other notes payable, net \| Loan 1 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	3.00%
Credit facilities
Debt Instrument [Line Items]
Principal amount	$ 1,292,176,000		1,339,993,000
Carrying value	$ 1,292,176,000		1,339,993,000
Credit facilities \| Minimum
Debt Instrument [Line Items]
Initial debt term (in years)	2 years
Credit facilities \| Maximum
Debt Instrument [Line Items]
Initial debt term (in years)	5 years
Credit facilities \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 2,250,000,000
Principal amount	1,292,176,000		1,339,993,000
Carrying value	1,292,176,000		1,339,993,000
Credit facilities \| Bank credit facility \| Bank credit facility
Debt Instrument [Line Items]
Capacity	165,000,000
Principal amount	0		0
Carrying value	$ 0		0
Credit facilities \| Bank credit facility \| Bank credit facility \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Interest rate margin (in percentage)	2.25%
Credit facilities \| Bank 1 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 600,000,000
Principal amount	522,677,000		415,892,000
Carrying value	$ 522,677,000		415,892,000
Number of optional extensions to initial maturity date \| forwardSwap	2
Debt term extension available (in years)	1 year
Percent of recourse of the financed amount	25.00%	25.00%
Credit facilities \| Bank 1 \| Master repurchase facilities \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Interest rate margin (in percentage)	2.17%
Credit facilities \| Bank 2 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 600,000,000
Principal amount	309,113,000		351,539,000
Carrying value	$ 309,113,000		351,539,000
Debt term extension available (in years)	1 year
Credit facilities \| Bank 2 \| Master repurchase facilities \| LIBOR and SOFR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	1.88%
Credit facilities \| Bank 2 \| Master repurchase facilities \| LIBOR and SOFR \| Minimum
Debt Instrument [Line Items]
Interest rate margin (in percentage)	1.50%
Credit facilities \| Bank 2 \| Master repurchase facilities \| LIBOR and SOFR \| Maximum
Debt Instrument [Line Items]
Interest rate margin (in percentage)	3.00%
Credit facilities \| Bank 3 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 400,000,000
Principal amount	236,718,000		247,404,000
Carrying value	$ 236,718,000		247,404,000
Number of optional extensions to initial maturity date \| forwardSwap	2
Debt term extension available (in years)	1 year
Credit facilities \| Bank 3 \| Master repurchase facilities \| Minimum
Debt Instrument [Line Items]
Percent of recourse of the financed amount	25.00%	25.00%
Credit facilities \| Bank 3 \| Master repurchase facilities \| Maximum
Debt Instrument [Line Items]
Percent of recourse of the financed amount	50.00%	50.00%
Credit facilities \| Bank 3 \| Master repurchase facilities \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Interest rate margin (in percentage)	1.74%
Credit facilities \| Bank 4
Debt Instrument [Line Items]
Number of optional extensions to initial maturity date \| extension	3
Credit facilities \| Bank 4 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 400,000,000
Principal amount	223,668,000		220,054,000
Carrying value	$ 223,668,000		220,054,000
Debt term extension available (in years)	1 year
Credit facilities \| Bank 4 \| Master repurchase facilities \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Interest rate margin (in percentage)	1.86%
Credit facilities \| Bank 5 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 250,000,000
Principal amount	0		105,104,000
Carrying value	$ 0		105,104,000
Debt term extension available (in years)	2 years
Credit facilities \| Bank 5 \| Master repurchase facilities \| LIBOR and SOFR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	1.86%
CLNC 2019-FL1 \| Investment grade notes \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Benchmark adjustment				0.11448%	0.11448%
CLNC 2019-FL1 \| Securitization bonds payable, net \| Investment grade notes
Debt Instrument [Line Items]
Principal amount	$ 466,546,000		502,717,000
Carrying value	$ 465,867,000		501,406,000
CLNC 2019-FL1 \| Securitization bonds payable, net \| Investment grade notes \| Minimum
Debt Instrument [Line Items]
Initial debt term (in years)	2 years
CLNC 2019-FL1 \| Securitization bonds payable, net \| Investment grade notes \| Maximum
Debt Instrument [Line Items]
Initial debt term (in years)	3 years
CLNC 2019-FL1 \| Securitization bonds payable, net \| Investment grade notes \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Interest rate margin (in percentage)	1.87%
BRSP 2021-FL 1 \| Securitization bonds payable, net \| Investment grade notes
Debt Instrument [Line Items]
Principal amount	$ 670,000,000		670,000,000
Carrying value	$ 666,825,000		$ 666,194,000
BRSP 2021-FL 1 \| Securitization bonds payable, net \| Investment grade notes \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	1.49%

Debt (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Summary of Debt

The following table presents debt as of March 31, 2023 and December 31, 2022 (dollars in thousands):


							March 31, 2023				December 31, 2022
	Capacity ($)		Recourse vs. Non-Recourse(1)	Final Maturity	Contractual Interest Rate		Principal Amount(2)		Carrying Value(2)		Principal Amount(2)		Carrying Value(2)

Securitization bonds payable, net
CLNC 2019-FL1(3)			Non-recourse	Aug-35	SOFR(4) + 1.87%		$	466,546	$	465,867	$	502,717	$	501,406
BRSP 2021-FL1(3)			Non-recourse	Aug-38	LIBOR + 1.49%		670,000		666,825		670,000		666,194
Subtotal securitization bonds payable, net							1,136,546		1,132,692		1,172,717		1,167,600

Mortgage and other notes payable, net
Net lease 1			Non-recourse	Sep-33	4.77%		200,000		198,801		200,000		198,778
Net lease 2(5)			Non-recourse	Jun-25	3.91%		153,280		154,085		162,449		164,752
Net lease 3			Non-recourse	Aug-26	4.08%		29,843		29,698		30,009		29,853
Net lease 4			Non-recourse	Oct-27	4.45%		22,412		22,412		22,559		22,559
Net lease 5(6)			Non-recourse	Nov-26	4.45%		17,385		17,117		17,486		17,200
Net lease 5(7)			Non-recourse	Mar-28	4.38%		11,462		11,025		11,526		11,089
Net lease 6			Non-recourse	Nov-26	4.45%		6,907		6,801		6,948		6,834
Net lease 7			Non-recourse	Jul-23	LIBOR + 2.15%		310		305		432		424
Net lease 8			Non-recourse	Nov-26	4.45%		3,202		3,152		3,220		3,168
















Other real estate 1			Non-recourse	Oct-24	4.47%		102,912		103,054		103,218		103,391
Other real estate 2			Non-recourse	Jan-25	4.30%		70,477		70,211		70,870		70,569

Loan 1(8)			Non-recourse	Jun-24	LIBOR + 3.00%		27,851		27,851		27,851		27,851
Subtotal mortgage and other notes payable, net							646,041		644,512		656,568		656,468

Bank credit facility
Bank credit facility	$	165,000	Recourse	Jan-27 (9)	SOFR + 2.25%		—		—		—		—
Subtotal bank credit facility							—		—		—		—

Master repurchase facilities


Bank 1	600,000		Limited Recourse(10)	April-27(11)	SOFR + 2.17%	(12)	522,677		522,677		415,892		415,892
Bank 2	600,000		Limited Recourse(10)	Apr-26(13)	LIBOR/SOFR + 1.88%	(12)	309,113		309,113		351,539		351,539
Bank 3	400,000		(14)	June-27(15)	SOFR + 1.74%	(12)	236,718		236,718		247,404		247,404
Bank 4	400,000		Limited Recourse(10)	July-27(16)	SOFR + 1.86%	(12)	223,668		223,668		220,054		220,054
Bank 5	250,000		Limited Recourse(10)	Jun-25(17)	LIBOR/SOFR + 1.86%	(12)	—		—		105,104		105,104

Subtotal master repurchase facilities	$	2,250,000					1,292,176		1,292,176		1,339,993		1,339,993











Subtotal credit facilities							1,292,176		1,292,176		1,339,993		1,339,993

Total							$	3,074,763	$	3,069,380	$	3,169,278	$	3,164,061

_________________________________________

(1)Subject to customary non-recourse carveouts.

(5)As of March 31, 2023, the outstanding principal of the mortgage payable was NOK 1.6 billion, which translated to $153.3 million.

(7)Represents a mortgage note collateralized by three properties.

(10)Recourse solely with respect to 25.0% of the financed amount.

(11)The current maturity date is April 2025, with two one-year extension options, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents.

(12)Represents the weighted average spread as of March 31, 2023. The contractual interest rate depends upon asset type and characteristics and ranges from one-month LIBOR or SOFR plus 1.50% to 3.00%.

(14)Recourse is either 25.0% or 50.0% depending on loan metrics.

(16)The current maturity date is July 2024, with three one-year extension options, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents.

Schedule of Scheduled Principal on Debt


	Total		Securitization Bonds Payable, Net		Mortgage Notes Payable, Net		Credit Facilities
Remaining 2023	$	1,906	$	—	$	1,906	$	—
2024	132,982		—		132,982		—
2025	226,086		—		226,086		—
2026	363,684		—		54,571		309,113
2027	1,003,419		—		20,356		983,063
2028 and thereafter	1,346,686		1,136,546		210,140		—
Total	$	3,074,763	$	1,136,546	$	646,041	$	1,292,176

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Paragraph 1
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-SubTopic 10
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-Subparagraph (SX 210.12-04(a))
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Business and Organization	3 Months Ended
Business and Organization	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Organization	Business and Organization BrightSpire Capital, Inc. (the “Company”) is a commercial real estate (“CRE”) credit real estate investment trust (“REIT”) 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 its primary investment strategy. Additionally, the Company may selectively originate mezzanine loans and make preferred equity investments, which may include profit participations. The mezzanine loans and preferred equity investments may be in conjunction with the Company’s origination of corresponding first mortgages on the same properties. Net leased properties consist of CRE properties with long-term leases to tenants on a net-lease basis, where such tenants generally will be responsible for property operating expenses such as insurance, utilities, maintenance capital expenditures and real estate taxes. The Company will continue to target net leased equity investments on a selective basis. The Company was organized in the state of Maryland on August 23, 2017 and maintains key offices in New York, New York and Los Angeles, California. The Company elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, beginning with the taxable year ended December 31, 2018. The Company conducts all activities and holds substantially all assets and liabilities through the Company’s operating subsidiary, BrightSpire Capital Operating Company, LLC (the “OP”). Trends Affecting the Business The global markets are currently characterized by volatility, driven by a tightening of monetary policy and geopolitical uncertainty, coupled with the ongoing impacts of COVID-19. In response to heightened inflation, the Federal Reserve continues to raise interest rates, which has tempered the loan financing market and created further uncertainty for the economy and for the Company’s borrowers and tenants. To the extent certain borrowers are experiencing significant financial dislocation as a result of economic conditions or the ongoing effects of COVID-19, the Company 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. Additionally, the market for office properties was particularly negatively impacted by the COVID-19 pandemic and remains distressed, with high overall vacancy rates due to the normalization of work from home and the hybrid attendance models. As a result of fewer employees commuting to their offices, businesses are re-evaluating their need for physical office space. These current macroeconomic conditions may continue or intensify and could cause the United States economy or other global economies to experience an economic slowdown or recession. While the Company monitors macroeconomic conditions closely, there are too many uncertainties to predict and quantify the full impact that these factors may have on its business.

Derivatives - Summary of Derivative Effects (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Non-designated foreign exchange contracts	$ 651	$ (221)
Non-designated interest rate contracts	(1)	8
Adjustments to fair value	$ 650	$ (213)

Loans and Preferred Equity Held for Investment, net - Changes in Allowance for Loan Losses (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) loan	Sep. 30, 2022 USD ($) loan	Mar. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($)	Dec. 31, 2022 USD ($)
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses at beginning of period	$ 106,247		$ 36,598
Increase (decrease) in general CECL reserve	(15,418)		(1,343)
Increase in specific CECL reserve	39,613		(866)
Charge-offs of CECL reserve			(1,251)
Allowance for loan losses at end of period	145,836		34,004	$ 36,598
Loan carrying value	3,494,895				$ 3,574,989
Senior loans
Allowance for Loan and Lease Losses [Roll Forward]
Loan carrying value	3,356,689				$ 3,439,706
Senior loans \| Collateralized Senior Loan Repaid In 2022
Allowance for Loan and Lease Losses [Roll Forward]
Increase in specific CECL reserve				$ 1,300
Proceeds from sale of receivables			$ 36,500
Senior loan (in loans) \| loan			1
Loan carrying value			$ 1,300
Loans and preferred equity held for investment
Allowance for Loan and Lease Losses [Roll Forward]
Increase in specific CECL reserve	$ 55,007	$ 57,200
Number of loans \| loan	2	2
Loans and preferred equity held for investment \| Washington, D.C.
Allowance for Loan and Lease Losses [Roll Forward]
Increase in specific CECL reserve	$ 29,900
Number of loans \| loan	1
Loans and preferred equity held for investment \| Long Island City, New York
Allowance for Loan and Lease Losses [Roll Forward]
Increase in specific CECL reserve	$ 10,600
Number of loans \| loan	1
Development Mezzanine Loan
Allowance for Loan and Lease Losses [Roll Forward]
Increase in specific CECL reserve	$ 14,500
Development Mezzanine Loan \| Milpitas, California
Allowance for Loan and Lease Losses [Roll Forward]
Increase in specific CECL reserve	$ 14,500
Number of loans \| loan	1
PD/LGD model
Allowance for Loan and Lease Losses [Roll Forward]
Unfunded commitments	$ 0		$ 500

Real Estate, net and Real Estate Held for Sale - Property Operating Income (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2020
Real Estate [Line Items]
Minimum lease revenue	$ 19,388	$ 19,734
Variable lease revenue	3,023	2,826
Total lease revenues	22,411	22,560
Hotel operating income	0	1,566
Property operating income	22,411	24,126
Below-market lease values	339	330
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]			Property operating income
Above-market lease values
Real Estate [Line Items]
Amortization of above-market values	$ (199)	$ (288)

Loans and Preferred Equity Held for Investment, net - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) investment	Mar. 31, 2022 USD ($) investment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of debt instruments depending upon the asset type (in years)	3 years	3 years 2 months 12 days
Interest receivable	$ 17,100		$ 16,400
Loans and preferred equity held for investment, net	3,349,059	$ 3,725,869	3,468,742	$ 3,449,009
Loan carrying value	$ 3,494,895		$ 3,574,989
Number of CRE debt investments contributed to more than 10% of interest income (in investments) \| investment	0	0
Percent of interest income contributed by investment	10.00%	10.00%
Average risk rating	3.2		3.2
Financing Receivable, Accrued Interest, After Allowance For Credit Loss, Statement Of Financial Position, Extensible List, Not Disclosed, Flag	Receivables, net		Receivables, net
Senior loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan carrying value	$ 3,356,689		$ 3,439,706
PD/LGD model
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unfunded commitments	0	$ 500
Allowance for lending commitments	400		400
Commercial mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan carrying value	3,494,895		3,574,989
Future funding commitments	$ 256,300		$ 263,400

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Share-based compensation expense	$ 2,295	$ 1,880

Noncontrolling Interests	3 Months Ended
Noncontrolling Interests	Mar. 31, 2023
Noncontrolling Interest [Abstract]
Noncontrolling Interests	Noncontrolling Interests Operating Partnership Net income (loss) attributable to the noncontrolling interests was based on such members ownership percentage of the OP. For the three months ended March 31, 2023, there were no noncontrolling interests in the OP and the OP is owned by the Company directly, and indirectly through the Company’s subsidiary, BRSP-T Partner, LLC. Net income attributable to the noncontrolling interests of the OP was $0.7 million for the three months ended March 31, 2022. Investment Entities Noncontrolling interests in investment entities represent third-party equity interests in ventures that are consolidated with the Company’s financial statements. Net loss attributable to noncontrolling interests in the investment entities was $0.1 million for the three months ended March 31, 2023 and net income attributable to noncontrolling interests was de minimis for the three months ended March 31, 2022.

Real Estate Securities

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Real Estate Securities

Investments in Investing VIEs

As of March 31, 2023 and December 31, 2022, the Company did not hold any assets or liabilities attributable to securitization trusts.

The Company did not generate net income attributable to investments in the subordinate tranches of securitization trusts for the three months ended March 31, 2023.

The below table presents net income attributable to the Company’s common stockholders for the three months ended March 31, 2022 generated from the Company’s investments in the subordinate tranches of securitization trusts (dollars in thousands):


	Three Months Ended March 31,
	2022
Statement of Operations

Interest income on mortgage loans held in securitization trusts	$	9,375
Interest expense on mortgage obligations issued by securitization trusts	(8,488)
Net interest income	887
Operating expense	(97)


Net income attributable to BrightSpire Capital, Inc. common stockholders	$	790

Segment Reporting

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

The Company presents its business within the following business segments:

•Senior and Mezzanine Loans and Preferred Equity—CRE debt investments including senior loans, mezzanine loans, and preferred equity interests as well as participations in such loans.

•Net Leased and Other Real Estate—direct investments in CRE with long-term leases to tenants on a net lease basis, where such tenants generally will be responsible for property operating expenses such as insurance, utilities, maintenance, capital expenditures and real estate taxes. It also includes other real estate, currently consisting of two investments with direct ownership in commercial real estate with an emphasis on properties with stable cash flow.

•CRE Debt Securities—investments previously consisted of BBB and some BB rated CMBS (including Non-Investment Grade “B-pieces” of a CMBS securitization pool). It currently includes a sub-portfolio of private equity funds.

•Corporate—includes corporate-level asset management and other fees including operating expenses, compensation and benefits and restructuring charges.

The Company primarily generates revenue from net interest income on the loan and preferred equity portfolio and rental and other income from its net leased and multi-tenant office assets. The Company’s income is primarily derived through the

difference between revenue and the cost at which the Company is able to finance its investments. The Company may also acquire investments which generate attractive returns without any leverage.

The following tables present segment reporting for the three months ended March 31, 2023 and 2022 (dollars in thousands):


	Senior and Mezzanine Loans and Preferred Equity		CRE Debt Securities		Net Leased and Other Real Estate		Corporate		Total
Three Months Ended March 31, 2023
Net interest income (expense)	$	33,243	$	—	$	—	$	(289)	$	32,954
Property and other income	—		—		22,551		3,056		25,607
Property operating expense	—		—		(5,852)		—		(5,852)
Transaction, investment and servicing expense	(501)		—		(24)		(310)		(835)
Interest expense on real estate	—		—		(5,509)		—		(5,509)
Depreciation and amortization	—		—		(7,938)		(58)		(7,996)
Increase of current expected credit loss reserve	(39,613)		—		—		—		(39,613)

Compensation and benefits	—		—		—		(8,805)		(8,805)
Operating expense	(4)		—		—		(3,469)		(3,473)


Other gain, net	—		—		655		—		655
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(6,875)		—		3,883		(9,875)		(12,867)
Equity in earnings of unconsolidated ventures	9,055		—		—		—		9,055
Income tax expense	(40)		(5)		(345)		—		(390)
Net income (loss)	$	2,140	$	(5)	$	3,538	$	(9,875)	$	(4,202)


	Senior and Mezzanine Loans and Preferred Equity		CRE Debt Securities		Net Leased and Other Real Estate		Corporate		Total
Three Months Ended March 31, 2022
Net interest income (expense)	$	29,365	$	886	$	—	$	(866)	$	29,385
Property and other income	121		133		24,168		22		24,444

Property operating expense	—		—		(6,724)		—		(6,724)
Transaction, investment and servicing expense	(1,051)		—		(100)		27		(1,124)
Interest expense on real estate	—		—		(7,556)		—		(7,556)
Depreciation and amortization	—		—		(8,551)		(43)		(8,594)
Decrease of current expected credit loss reserve	866		—		—		—		866

Compensation and benefits	—		—		—		(8,225)		(8,225)
Operating expense	(152)		(40)		(32)		(4,125)		(4,349)



Other gain (loss), net	(129)		—		10,369		48		10,288
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	29,020		979		11,574		(13,162)		28,411
Equity in earnings of unconsolidated ventures	25		—		—		—		25
Income tax benefit (expense)	63		—		(99)		—		(36)
Net income (loss)	$	29,108	$	979	$	11,475	$	(13,162)	$	28,400

The following table presents total assets by segment as of March 31, 2023 and December 31, 2022 (dollars in thousands):


Total Assets	Senior and Mezzanine Loans and Preferred Equity		CRE Debt Securities(1)		Net Leased and Other Real Estate		Corporate(2)		Total
March 31, 2023	$	3,445,340	$	15,415	$	842,203	$	301,055	$	4,604,013
December 31, 2022	3,580,912		15,459		864,856		289,162		4,750,389

_________________________________________

(1)Includes PE Investments totaling $2.8 million and $3.0 million as of March 31, 2023 and December 31, 2022, respectively.

(2)Includes cash, unallocated receivables and deferred costs and other assets, net.

Geography

Geography is generally defined as the location in which the income producing assets reside or the location in which income generating services are performed. Geography information on total income includes equity in earnings of unconsolidated ventures. Geography information on total income and long-lived assets are presented as follows (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
Total income by geography:
United States	$	105,556	$	73,445
Europe	4,722		4,969

Total(1)	$	110,278	$	78,414


	March 31, 2023		December 31, 2022
Long-lived assets by geography:
United States	$	528,266	$	532,380
Europe	237,589		254,068
Total(2)	$	765,855	$	786,448

_________________________________________

(1)Includes interest income, interest income on mortgage loans held in securitization trusts, property and other income and equity in earnings of unconsolidated ventures.

(2)Long-lived assets are comprised of real estate and real estate-related intangible assets, and excludes financial instruments and assets held for sale.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Derivatives - Summary Of Interest Rate Contracts (Details) - Non-Designated kr in Thousands, $ in Thousands	Mar. 31, 2023 USD ($)	Mar. 31, 2023 NOK (kr)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 NOK (kr)
FX Forward
Derivative [Line Items]
Notional amount \| kr		kr 94,467		kr 99,733
Interest Rate Swap
Derivative [Line Items]
Notional amount \| $	$ 163		$ 285

Derivatives - Narrative (Details)	Mar. 31, 2023 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash collateral for the derivative contracts	$ 0

Fair Value - Financial Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets:
Other assets - derivative assets	$ 2,149	$ 1,601
Recurring basis
Assets:
Other assets - PE Investments	2,790	3,035
Other assets - derivative assets	2,149	1,601
Recurring basis \| Level 1
Assets:
Other assets - PE Investments	0	0
Other assets - derivative assets	0	0
Recurring basis \| Level 2
Assets:
Other assets - PE Investments	0	0
Other assets - derivative assets	2,149	1,601
Recurring basis \| Level 3
Assets:
Other assets - PE Investments	2,790	3,035
Other assets - derivative assets	$ 0	$ 0

Loans and Preferred Equity Held for Investment, net - Activity in Loans Held for Investment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Beginning balance	$ 3,468,742	$ 3,449,009
Acquisitions/originations/additional funding	16,388	498,195
Loan maturities/principal repayments	(101,368)	(227,897)
Discount accretion/premium amortization	3,038	2,999
Capitalized interest	1,848	969
(Increase) decrease of CECL reserve	(39,589)	1,343
Charge-off	0	1,251
Ending balance	3,349,059	3,725,869
PD/LGD model
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Unfunded commitments	$ 0	$ 500

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Subsequent Event [Line Items]
Loan carrying value		$ 3,494,895		$ 3,574,989
Increase (decrease) of current expected credit loss reserve		39,613	$ (866)
Development Mezzanine Loan
Subsequent Event [Line Items]
Increase (decrease) of current expected credit loss reserve		$ 14,500
Subsequent event
Subsequent Event [Line Items]
Quarterly cash dividend (in dollars per share)	$ 0.20
Stock repurchase program, amount authorized for repurchase	$ 50,000
Subsequent event \| Variable rate \| Development Mezzanine Loan \| Mezzanine A Note
Subsequent Event [Line Items]
Loan carrying value	30,200
Subsequent event \| Variable rate \| Development Mezzanine Loan \| Mezzanine B Note
Subsequent Event [Line Items]
Loan carrying value	$ 14,500
Length of extension option	1 year

Derivatives - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Derivative Assets
Gross amounts of assets included on consolidated balance sheets	$ 2,149	$ 1,601
Net amounts of assets	2,149	1,601
Foreign exchange contracts
Derivative Assets
Gross amounts of assets included on consolidated balance sheets	2,148	1,599
Net amounts of assets	2,148	1,599
Interest rate contracts
Derivative Assets
Gross amounts of assets included on consolidated balance sheets	1	2
Net amounts of assets	$ 1	$ 2

Segment Reporting - Reportable Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Property operating expense	$ (5,852)	$ (6,724)
Transaction, investment and servicing expense	(835)	(1,124)
Interest expense on real estate	(5,509)	(7,556)
Depreciation and amortization	(7,996)	(8,594)
Increase (decrease) of current expected credit loss reserve	(39,613)	866
Compensation and benefits	(8,805)	(8,225)
Operating expense	(3,473)	(4,349)
Other gain (loss), net	655	10,288
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(12,867)	28,411
Equity in earnings of unconsolidated ventures	9,055	25
Income tax benefit (expense)	(390)	(36)
Net income (loss)	(4,202)	28,400
Total Assets	4,604,013		$ 4,750,389
Core
Segment Reporting Information [Line Items]
Net interest income (expense)	32,954	29,385
Property and other income	25,607	24,444
Property operating expense	(5,852)	(6,724)
Transaction, investment and servicing expense	(835)	(1,124)
Interest expense on real estate	(5,509)	(7,556)
Depreciation and amortization	(7,996)	(8,594)
Increase (decrease) of current expected credit loss reserve	(39,613)	866
Compensation and benefits	(8,805)	(8,225)
Operating expense	(3,473)	(4,349)
Other gain (loss), net	655	10,288
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(12,867)	28,411
Equity in earnings of unconsolidated ventures	9,055	25
Income tax benefit (expense)	(390)	(36)
Net income (loss)	(4,202)	28,400
Total Assets	4,604,013		4,750,389
Core \| Senior and Mezzanine Loans and Preferred Equity
Segment Reporting Information [Line Items]
Net interest income (expense)	33,243	29,365
Property and other income	0	121
Property operating expense	0	0
Transaction, investment and servicing expense	(501)	(1,051)
Interest expense on real estate	0	0
Depreciation and amortization	0	0
Increase (decrease) of current expected credit loss reserve	(39,613)	866
Compensation and benefits	0	0
Operating expense	(4)	(152)
Other gain (loss), net	0	(129)
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(6,875)	29,020
Equity in earnings of unconsolidated ventures	9,055	25
Income tax benefit (expense)	(40)	63
Net income (loss)	2,140	29,108
Total Assets	3,445,340		3,580,912
Core \| CRE Debt Securities
Segment Reporting Information [Line Items]
Net interest income (expense)	0	886
Property and other income	0	133
Property operating expense	0	0
Transaction, investment and servicing expense	0	0
Interest expense on real estate	0	0
Depreciation and amortization	0	0
Increase (decrease) of current expected credit loss reserve	0	0
Compensation and benefits	0	0
Operating expense	0	(40)
Other gain (loss), net	0	0
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	0	979
Equity in earnings of unconsolidated ventures	0	0
Income tax benefit (expense)	(5)	0
Net income (loss)	(5)	979
Total Assets	15,415		15,459
Core \| Net Leased and Other Real Estate
Segment Reporting Information [Line Items]
Net interest income (expense)	0	0
Property and other income	22,551	24,168
Property operating expense	(5,852)	(6,724)
Transaction, investment and servicing expense	(24)	(100)
Interest expense on real estate	(5,509)	(7,556)
Depreciation and amortization	(7,938)	(8,551)
Increase (decrease) of current expected credit loss reserve	0	0
Compensation and benefits	0	0
Operating expense	0	(32)
Other gain (loss), net	655	10,369
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	3,883	11,574
Equity in earnings of unconsolidated ventures	0	0
Income tax benefit (expense)	(345)	(99)
Net income (loss)	3,538	11,475
Total Assets	842,203		864,856
Core \| Corporate
Segment Reporting Information [Line Items]
Net interest income (expense)	(289)	(866)
Property and other income	3,056	22
Property operating expense	0	0
Transaction, investment and servicing expense	(310)	27
Interest expense on real estate	0	0
Depreciation and amortization	(58)	(43)
Increase (decrease) of current expected credit loss reserve	0	0
Compensation and benefits	(8,805)	(8,225)
Operating expense	(3,469)	(4,125)
Other gain (loss), net	0	48
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(9,875)	(13,162)
Equity in earnings of unconsolidated ventures	0	0
Income tax benefit (expense)	0	0
Net income (loss)	(9,875)	$ (13,162)
Total Assets	$ 301,055		$ 289,162

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net income (loss)	$ (4,202)	$ 28,400
Other comprehensive income (loss)
Foreign currency translation gain (loss)	(3,463)	676
Total other comprehensive income (loss)	(3,463)	676
Comprehensive income (loss)	(7,665)	29,076
Comprehensive (income) loss attributable to noncontrolling interests:
Comprehensive income (loss) attributable to common stockholders	(7,590)	28,384
Investment entities
Net income (loss)	(75)	22
Comprehensive (income) loss attributable to noncontrolling interests:
Comprehensive (income) loss attributable to noncontrolling interests:	75	(22)
Operating Partnership
Net income (loss)		654
Other comprehensive income (loss)
Total other comprehensive income (loss)		16
Comprehensive (income) loss attributable to noncontrolling interests:
Comprehensive (income) loss attributable to noncontrolling interests:	$ 0	$ (670)

Loans and Preferred Equity Held for Investment, net - Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Loan carrying value	$ 3,494,895	$ 3,574,989
Commercial mortgage
Financing Receivable, Past Due [Line Items]
Loan carrying value	3,494,895	3,574,989
Commercial mortgage \| Current or Less Than 30 Days Past Due
Financing Receivable, Past Due [Line Items]
Loan carrying value	3,369,528	3,494,437
Commercial mortgage \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loan carrying value	0	68,432
Commercial mortgage \| 60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loan carrying value	56,935	0
Commercial mortgage \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loan carrying value	$ 68,432	$ 12,120

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares			3 Months Ended
	Mar. 16, 2023	Mar. 15, 2022	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Dividends and distributions declared per share of common stock (in dollars per share)	$ 0.20	$ 0.19	$ 0.20	$ 0.19

Real Estate, net and Real Estate Held for Sale

3 Months Ended

Mar. 31, 2023

Real Estate [Abstract]

Real Estate, net and Real Estate Held for Sale

The following table presents the Company’s net lease portfolio, net, as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023		December 31, 2022
Land and improvements	$	125,797	$	128,608
Buildings, building leaseholds, and improvements	493,020		505,297
Tenant improvements	18,989		17,851

Subtotal	$	637,806	$	651,756
Less: Accumulated depreciation	(89,604)		(87,109)

Net lease portfolio, net	$	548,202	$	564,647

The following table presents the Company’s portfolio of other real estate as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023		December 31, 2022
Land and improvements	$	29,790	$	29,582
Buildings, building leaseholds, and improvements	152,748		152,186
Tenant improvements	20,370		18,757
Furniture, fixtures and equipment	269		135
Construction-in-progress	864		3,011
Subtotal	$	204,041	$	203,671
Less: Accumulated depreciation	(37,518)		(35,850)

Other portfolio, net	$	166,523	$	167,821

Depreciation Expense

Depreciation expense on real estate was $6.0 million and $6.1 million for the three months ended March 31, 2023 and 2022, respectively.

Property Operating Income

For the three months ended March 31, 2023 and 2022 the components of property operating income were as follows (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
Lease revenues(1)
Minimum lease revenue	$	19,388	$	19,734
Variable lease revenue	3,023		2,826
	$	22,411	$	22,560
Hotel operating income	—		1,566
	$	22,411	$	24,126

_________________________________________

(1)Excludes amortization expense related to above and below-market leases of $0.2 million and income of $0.3 million for the three months ended March 31, 2023, respectively. Excludes amortization expense related to above and below-market leases of $0.3 million and income of $0.3 million for the three months ended March 31, 2022, respectively.

For the three months ended March 31, 2023 and 2022, the Company had no single property with property operating income equal to or greater than 10.0% of total revenue of the Company.

Minimum Future Rents

Minimum rental amounts due under leases are generally either subject to scheduled fixed increases or adjustments. The following table presents approximate future minimum rental income under noncancellable operating leases, excluding variable lease revenue of tenant reimbursements, to be received over the next five years and thereafter as of March 31, 2023 (dollars in thousands):


Remainder of 2023	$	57,208
2024	73,627
2025	67,305
2026	60,327
2027	57,209
2028 and thereafter	317,423
Total	$	633,099

The rental properties owned at March 31, 2023 are leased under noncancellable operating leases with current expirations ranging from 2023 to 2038, with certain tenant renewal rights. For certain properties, the tenants pay the Company, in addition to the contractual base rent, their pro rata share of real estate taxes and operating expenses. Certain lease agreements provide for periodic rental increases and others provide for increases based on the consumer price index.

Commitments and Contractual Obligations

Ground Lease Obligation

In connection with real estate acquisitions, the Company assumed certain noncancellable operating ground leases as lessee or sublessee with expiration dates through 2050. Rents on certain ground leases are paid directly by the tenants. Ground rent expense for the three months ended March 31, 2023 and 2022 was $0.8 million and $0.8 million, respectively.

Refer to Note 15, “Commitments and Contingencies” for the details of future minimum rental payments on noncancellable ground lease on real estate as of March 31, 2023.

Real Estate Sales

There were no sales during the three months ended March 31, 2023. During the three months ended March 31, 2022, the Company completed the sale of one net lease property for a gross sales price of $19.6 million which resulted in a $7.6 million gain on sale and one hotel property for a gross sales price of $36.0 million which resulted in a $2.4 million gain on sale. The gains on sale are included in other gain (loss), net on the consolidated statement of operations.

Equity-Based Compensation - Narrative (Details) - USD ($) $ in Thousands				1 Months Ended	3 Months Ended
	Mar. 06, 2023	May 06, 2022	May 05, 2022	Mar. 31, 2023	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	1,391,217	62,190	1,456,366		1,775,595
Share-based compensation expense					$ 2,295	$ 1,880
Fair value at vesting date					5,400	3,200
Compensation cost not yet recognized				$ 23,700	$ 23,700	$ 7,000
Compensation cost not yet recognized, period for recognition					2 years 4 months 24 days	1 year 9 months 18 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)					1,391,217
Vesting period					3 years
Service period					3 years
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)					384,378
PSUs \| 2021 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Measurement period					2 years
PSUs \| 2023 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Measurement period					3 years
PSUs \| Minimum \| 2021 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of PSUs granted and eligible to vest					0.00%
PSUs \| Maximum \| 2021 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of PSUs granted and eligible to vest					200.00%
Management
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense					$ 2,300	$ 1,900
Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized (in shares)			10,000,000
Stock issued (in shares)				136,000
Class A \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					1 year

Restricted Cash, Other Assets and Accrued and Other Liabilities - Summary of Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 80,023	$ 92,508	$ 84,492	$ 86,841
Borrower escrow deposits
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	65,323	79,055
Capital expenditure reserves
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	9,030	8,623
Working capital and other reserves
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	2,186	2,145
Real estate escrow reserves
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	2,623	1,583
Tenant lockboxes
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 861	$ 1,102

Related Party Arrangements	3 Months Ended
Related Party Arrangements	Mar. 31, 2023
Related Party Transactions [Abstract]
Related Party Arrangements	Related Party ArrangementsThe Company had no related party transactions for the three months ended March 31, 2023 and 2022.

Debt - Narrative (Details)		1 Months Ended		3 Months Ended
Debt - Narrative (Details)	Jan. 28, 2022 USD ($) term	Jul. 31, 2021 USD ($) loan	Oct. 31, 2019 USD ($)	Mar. 31, 2023 USD ($) loan counterparty	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Feb. 19, 2022	Jan. 27, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 17, 2021
Debt Instrument [Line Items]
Unpaid principal balance				$ 3,074,763,000
Carrying value of CRE debt investments				145,836,000	$ 106,247,000	$ 34,004,000			$ 36,598,000
Principal amount				$ 3,074,763,000	3,169,278,000
Investment grade notes \| CLNC 2019-FL1
Debt Instrument [Line Items]
Sale of notes			$ 840,400,000
Advance rate				73.75%
Number of loans (in loans) \| loan				17
Reinvestment period			2 years
Number of loan investments removed (in loans) \| loan				1
Number of loan investments removed, partially repiad (in loans) \| loan				1
Debt repaid				$ 36,200,000
Unpaid principal balance				$ 632,600,000
Number of counterparties holding collateral that exceeds amounts borrowed by more than 10% \| counterparty				1
Investment grade notes \| BRSP 2021-FL 1
Debt Instrument [Line Items]
Sale of notes		$ 670,000,000
Advance rate		83.75%
Number of loans (in loans) \| loan		28
Reinvestment period		2 years
Number of loan investments removed (in loans) \| loan				2
Debt repaid				$ 48,000,000
Unpaid principal balance				$ 800,000,000
Investment grade notes \| LIBOR \| BRSP 2021-FL 1
Debt Instrument [Line Items]
Weighted average cost of funds percentage		1.49%
Investment grade notes \| Secured Overnight Financing Rate (SOFR) \| CLNC 2019-FL1
Debt Instrument [Line Items]
Benchmark adjustment							0.11448%			0.11448%
Additional lookback period				2 days
Master repurchase facilities
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 2,300,000,000
Master repurchase facilities
Debt Instrument [Line Items]
Unpaid principal balance				1,292,176,000
Principal amount				$ 1,292,176,000	1,339,993,000
Master repurchase facilities \| Minimum
Debt Instrument [Line Items]
Initial debt term (in years)				2 years
Master repurchase facilities \| Maximum
Debt Instrument [Line Items]
Initial debt term (in years)				5 years
Master repurchase facilities \| Bank 1
Debt Instrument [Line Items]
Unpaid principal balance				$ 211,800,000
Master repurchase facilities \| Revolving credit facility \| Credit agreement
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 165,000,000							$ 300,000,000
Borrowing capacity, increase to maximum available principal amount								$ 300,000,000
Maximum amount that can be drawn				$ 165,000,000
Maximum amount of base value available for borrowing				50.00%
Number of additional terms (in terms) \| term	2
Length of potential extension terms	6 months
Tangible net worth				$ 1,112,000,000
Percentage of net cash proceeds from offering				0.70
EBITDA plus lease expenses to fixed charges				1.50
Minimum interest coverage ratio				3.00
Maximum leverage ratio				0.80
Master repurchase facilities \| Revolving credit facility \| Credit agreement \| Minimum
Debt Instrument [Line Items]
Unused amount, commitment fee percentage				0.25%
Master repurchase facilities \| Revolving credit facility \| Credit agreement \| Maximum
Debt Instrument [Line Items]
Unused amount, commitment fee percentage				0.35%
Master repurchase facilities \| Revolving credit facility \| Credit agreement \| Federal funds rate \| Option two
Debt Instrument [Line Items]
Interest rate margin (in percentage)				0.50%
Master repurchase facilities \| Revolving credit facility \| Credit agreement \| Secured Overnight Financing Rate (SOFR) \| Option one
Debt Instrument [Line Items]
Interest rate margin (in percentage)				2.25%
Master repurchase facilities \| Revolving credit facility \| Credit agreement \| Secured Overnight Financing Rate (SOFR) \| Option two
Debt Instrument [Line Items]
Interest rate margin (in percentage)				1.00%
Margin on basis spread on variable rate				0.0125
Master repurchase facilities \| Master repurchase facilities
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 2,250,000,000
Unpaid principal balance				1,300,000,000	1,300,000,000
Principal amount				1,292,176,000	1,339,993,000
Master repurchase facilities \| Master repurchase facilities \| Asset Pledged as Collateral
Debt Instrument [Line Items]
Carrying value of CRE debt investments				1,800,000,000	1,800,000,000
Master repurchase facilities \| Master repurchase facilities \| Bank 1
Debt Instrument [Line Items]
Maximum borrowing capacity				600,000,000
Principal amount				$ 522,677,000	415,892,000
Master repurchase facilities \| Master repurchase facilities \| Bank 1 \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Interest rate margin (in percentage)				2.17%
Master repurchase facilities \| Master repurchase facilities \| Bank 3
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 400,000,000
Principal amount				$ 236,718,000	247,404,000
Master repurchase facilities \| Master repurchase facilities \| Bank 3 \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Interest rate margin (in percentage)				1.74%
Securitization bonds payable, net
Debt Instrument [Line Items]
Unpaid principal balance				$ 1,136,546,000
Principal amount				1,136,546,000	1,172,717,000
Securitization bonds payable, net \| Asset Pledged as Collateral
Debt Instrument [Line Items]
Carrying value of CRE debt investments				1,400,000,000	1,500,000,000
Securitization bonds payable, net \| Investment grade notes \| CLNC 2019-FL1
Debt Instrument [Line Items]
Principal amount				466,546,000	502,717,000
Securitization bonds payable, net \| Investment grade notes \| BRSP 2021-FL 1
Debt Instrument [Line Items]
Principal amount				$ 670,000,000	$ 670,000,000
Securitization bonds payable, net \| Investment grade notes \| Minimum \| CLNC 2019-FL1
Debt Instrument [Line Items]
Initial debt term (in years)				2 years
Securitization bonds payable, net \| Investment grade notes \| Maximum \| CLNC 2019-FL1
Debt Instrument [Line Items]
Initial debt term (in years)				3 years
Securitization bonds payable, net \| Investment grade notes \| LIBOR \| BRSP 2021-FL 1
Debt Instrument [Line Items]
Interest rate margin (in percentage)				1.49%
Securitization bonds payable, net \| Investment grade notes \| Secured Overnight Financing Rate (SOFR) \| CLNC 2019-FL1
Debt Instrument [Line Items]
Interest rate margin (in percentage)				1.87%
Letters of Credit \| Revolving credit facility \| Credit agreement
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 25,000,000

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other assets, at fair value	$ 2,790	$ 3,035
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Class A
Common stock, shares authorized (in shares)	950,000,000	950,000,000
Common stock, shares issued (in shares)	129,946,184	128,872,471
Common stock, shares outstanding (in shares)	129,946,184	128,872,471

Real Estate, net and Real Estate Held for Sale (Tables)

3 Months Ended

Mar. 31, 2023

Real Estate [Abstract]

Schedule of Operating Real Estate Properties

The following table presents the Company’s net lease portfolio, net, as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023		December 31, 2022
Land and improvements	$	125,797	$	128,608
Buildings, building leaseholds, and improvements	493,020		505,297
Tenant improvements	18,989		17,851

Subtotal	$	637,806	$	651,756
Less: Accumulated depreciation	(89,604)		(87,109)

Net lease portfolio, net	$	548,202	$	564,647

The following table presents the Company’s portfolio of other real estate as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023		December 31, 2022
Land and improvements	$	29,790	$	29,582
Buildings, building leaseholds, and improvements	152,748		152,186
Tenant improvements	20,370		18,757
Furniture, fixtures and equipment	269		135
Construction-in-progress	864		3,011
Subtotal	$	204,041	$	203,671
Less: Accumulated depreciation	(37,518)		(35,850)

Other portfolio, net	$	166,523	$	167,821

Property Operating Income

For the three months ended March 31, 2023 and 2022 the components of property operating income were as follows (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
Lease revenues(1)
Minimum lease revenue	$	19,388	$	19,734
Variable lease revenue	3,023		2,826
	$	22,411	$	22,560
Hotel operating income	—		1,566
	$	22,411	$	24,126

_________________________________________

Schedule of Future Minimum Rental Income under Non-cancellable Operating Leases

The following table presents approximate future minimum rental income under noncancellable operating leases, excluding variable lease revenue of tenant reimbursements, to be received over the next five years and thereafter as of March 31, 2023 (dollars in thousands):


Remainder of 2023	$	57,208
2024	73,627
2025	67,305
2026	60,327
2027	57,209
2028 and thereafter	317,423
Total	$	633,099

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Summary of Lease Expense

The following table presents ground lease expense, included in property operating expense, for the three months ended March 31, 2023 and 2022 (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
Operating lease expense:
Minimum lease expense	$	777	$	768
Variable lease expense	—		—
	$	777	$	768

For the three months ended March 31, 2023 and 2022, the following table summarizes lease expense, included in operating expense (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
Corporate Offices
Operating lease expense:
Fixed lease expense	$	315	$	200

	$	315	$	200

Schedule of Future Minimum Rental Payments

The following table presents future minimum rental payments, excluding contingent rents, on noncancellable ground leases on real estate as of March 31, 2023 (dollars in thousands):


Remainder of 2023	$	2,332
2024	2,213
2025	2,148
2026	2,073
2027	1,755
2028 and thereafter	15,499
Total lease payments	26,020
Less: Present value discount	8,419
Operating lease liability (Note 7)	$	17,601

For these ground leases, the Company has elected the practical expedient to combine lease and related nonlease components as a single lease component.

As of March 31, 2023, the Company’s future operating lease commitments for the corporate office leases were as follows (dollars in thousands):


	Corporate Offices(1)
Remainder of 2023	$	961
2024	1,293
2025	1,308
2026	1,323
2027	1,339
2028 and thereafter	1,729
Total lease payments	7,953
Less: Present value discount	557
Operating lease liability (Note 7)	$	7,396

__________________________________________(1)The Company entered into a Los Angeles, California office lease in the first quarter of 2022, with rent payments beginning in 2023.

Summary of Significant Accounting Policies - Operating Real Estate Estimated Useful Lives (Details)	3 Months Ended
	Mar. 31, 2023
Building (fee interest) \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	33 years
Building (fee interest) \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	47 years
Land improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	1 year
Land improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	15 years
Furniture, fixtures and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	2 years
Furniture, fixtures and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	8 years

Fair Value - Principal Amount, Carrying Value and Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial assets:
Principal amount, financial assets	$ 3,503,107	$ 3,586,248
Financial liabilities:
Principal amount, financial liabilities	3,074,763	3,169,278
Commercial mortgage
Financial assets:
Principal amount, financial assets	3,503,107	3,586,248
Financial liabilities:
Future funding commitments	256,300	263,400
Carrying Value
Financial assets:
Loans held for investment, net	3,349,059	3,468,472
Fair Value
Financial assets:
Loans held for investment, net	3,357,271	3,480,001
Securitization bonds payable, net
Financial liabilities:
Principal amount, financial liabilities	1,136,546	1,172,717
Securitization bonds payable, net \| Carrying Value
Financial liabilities:
Financial liabilities	1,132,692	1,167,600
Securitization bonds payable, net \| Fair Value
Financial liabilities:
Financial liabilities	1,136,546	1,172,717
Mortgage and other notes payable, net
Financial liabilities:
Principal amount, financial liabilities	646,041	656,568
Mortgage and other notes payable, net \| Carrying Value
Financial liabilities:
Financial liabilities	644,512	656,468
Mortgage and other notes payable, net \| Fair Value
Financial liabilities:
Financial liabilities	624,574	656,568
Master repurchase facilities
Financial liabilities:
Principal amount, financial liabilities	1,292,176	1,339,993
Master repurchase facilities \| Carrying Value
Financial liabilities:
Financial liabilities	1,292,176	1,339,993
Master repurchase facilities \| Fair Value
Financial liabilities:
Financial liabilities	$ 1,292,176	$ 1,339,993

Segment Reporting - Total Income and Long-lived Assets by Geography (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total income by geography	$ 110,278	$ 78,414
Long-lived assets by geography	765,855		$ 786,448
United States
Segment Reporting Information [Line Items]
Total income by geography	105,556	73,445
Long-lived assets by geography	528,266		532,380
Europe
Segment Reporting Information [Line Items]
Total income by geography	4,722	$ 4,969
Long-lived assets by geography	$ 237,589		$ 254,068

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 42
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 942
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-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
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-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
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Reference 22: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Paragraph 1A
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

+ Details

Stockholders' Equity - Dividends (Details) - $ / shares			3 Months Ended
Stockholders' Equity - Dividends (Details) - $ / shares	Mar. 16, 2023	Mar. 15, 2022	Mar. 31, 2023	Mar. 31, 2022
Equity [Abstract]
Dividends and distributions declared per share of common stock (in dollars per share)	$ 0.20	$ 0.19	$ 0.20	$ 0.19

Earnings Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

The Company’s net income (loss) and weighted average shares outstanding for the three months ended March 31, 2023 and 2022 consist of the following (dollars in thousands, except per share data):


	Three Months Ended March 31,
	2023		2022
Net income (loss)	$	(4,202)	$	28,400
Net (income) loss attributable to noncontrolling interests:
Investment Entities	75		(22)
Operating Partnership	—		(654)
Net income (loss) attributable to BrightSpire Capital, Inc. common stockholders	$	(4,127)	$	27,724

Numerator:
Net (income) loss allocated to participating securities (non-vested shares)	$	—	$	(110)
Net income (loss) attributable to common stockholders	$	(4,127)	$	27,614

Denominator:
Weighted average shares outstanding - basic(1)	126,665		128,758
Weighted average shares outstanding - diluted(2)	126,665		129,745

Net income (loss) per common share - basic and diluted	$	(0.03)	$	0.21

_________________________________________

Real Estate, net and Real Estate Held for Sale - Real Estate Sales (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) property	Mar. 31, 2022 USD ($) property
Real Estate [Line Items]
Number of real estate properties sold (in properties) \| property	0
Gain (loss) on sale of properties	$ 0	$ 10,632
Net Leased and Other Real Estate
Real Estate [Line Items]
Number of real estate properties sold (in properties) \| property		1
Proceeds from sale of real estate		$ 19,600
Gain (loss) on sale of properties		$ 7,600
Hotel
Real Estate [Line Items]
Number of real estate properties sold (in properties) \| property		1
Proceeds from sale of real estate		$ 36,000
Gain (loss) on sale of properties		$ 2,400

- Definition

The net gain (loss) resulting from sales and other disposals of real estate owned for investment purposes.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126954810&loc=d3e3602-108585

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(b)(9)(a))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 360
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=123605587&loc=d3e23528-158515

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(b)(7)(c))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(14)(d))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 360
-Section 45
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=123605564&loc=d3e23439-158514

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(3)(a))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 360
-Section 45
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=123605564&loc=d3e23415-158514

+ Details

Derivatives - Schedule of Derivatives Assets and Liabilities (Details) - Other assets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Derivative Assets
Non-designated hedges included in other assets	$ 2,149	$ 1,601
Foreign exchange contracts
Derivative Assets
Non-designated hedges included in other assets	2,148	1,599
Interest rate contracts
Derivative Assets
Non-designated hedges included in other assets	$ 1	$ 2

Fair Value - Changes in Fair Value of Financial Assets Measured on a Recurring Basis (Details) - Level 3 - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Mortgage loans held in securitization trusts
Additional information about financial assets
Unrealized loss in earnings		$ (45,400)
Unrealized gain (loss) in earnings		45,400
Recurring basis \| Other assets - PE Investments
Additional information about financial assets
Beginning balance	$ 3,035	4,406
Distributions/paydowns	(245)	0
Unrealized loss in earnings	0	0
Ending balance	$ 2,790	4,406
Recurring basis \| Mortgage loans held in securitization trusts
Additional information about financial assets
Beginning balance		813,310
Distributions/paydowns		(13,300)
Unrealized loss in earnings		(45,431)
Ending balance		$ 754,579

Equity-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Equity-Based Compensation

On February 15, 2022, the Company’s Board of Directors adopted, and at the annual meeting of stockholders held on May 5, 2022, the stockholders approved, the 2022 Equity Incentive Plan (the “2022 Plan”), which was effective as of May 5, 2022 and amends and restates the Company’s 2018 Equity Incentive Plan (the “2018 Plan”) to increase the total number of shares of the Class A common stock issuable by 10.0 million shares (subject to adjustment pursuant to the terms of the 2022 Plan) and extending the termination date to May 4, 2032. Awards may be granted under the 2022 Plan to (x) any employee, officer, director, consultant or advisor (who is a natural person) providing services to the Company, or its affiliates and (y) any other individual whose participation in the 2022 Plan is determined to be in the best interests of the Company. The following types of awards may be made under the 2022 Plan, subject to the limitations set forth in the plan: (i) stock options (which may be either incentive stock options or non-qualified stock options); (ii) stock appreciation rights; (iii) restricted stock awards; (iv) stock units; (v) unrestricted stock awards; (vi) dividend equivalent rights; (vii) performance awards; (viii) annual cash incentive awards; (ix) long-term incentive units; and (x) other equity-based awards.

Shares subject to an award granted under the 2022 Plan will be counted against the maximum number of shares of Class A common stock available for issuance thereunder as one share of Class A common stock for every one share of Class A common stock subject to such an award. Shares subject to an award granted under the 2022 Plan will again become available for issuance under the 2022 Plan if the award terminates by expiration, forfeiture, cancellation, or otherwise without the issuance of such shares (except as set forth in the following sentence). The number of shares of Class A common stock available for issuance under the 2022 Plan will not be increased by (i) any shares tendered or withheld in connection with the purchase of shares upon exercise of a stock option, (ii) any shares deducted or delivered in connection with the Company’s tax withholding obligations, or (iii) any shares purchased by the Company with proceeds from stock option exercises. Shares granted to non-independent directors, officers and employees, if applicable, generally vest ratably in three annual installments following the grant date.

On May 5, 2022, the Company granted 1,456,366 shares of Class A common stock to certain of its employees, including executive officers. Remaining one-third increments of such share grant will vest on March 15, 2024 and March 15, 2025. On March 6, 2023, the Company granted 1,391,217 shares of Class A common stock to certain of its employees, including executive officers. The shares vest in one-third increments on March 15, 2024, March 15, 2025 and March 15, 2026.

On May 6, 2022, the Company granted 62,190 shares of Class A common stock to the independent directors of the Company which vest on May 6, 2023.

Equity-Based Compensation Expense

In connection with the share grants, the Company recognized share-based compensation expense of $2.3 million and $1.9 million within compensation and benefits in the consolidated statement of operations for the three months ended March 31, 2023 and March 31, 2022, respectively.

Restricted Stock—Restricted stock awards relating to the Company’s Class A common stock are granted to independent directors of the Company and generally vest within one year. Restricted stock awards are granted to certain employees of the Company, with a service condition only and are generally subject to annual time-based vesting in equal tranches over a three-year period. Restricted stock is entitled to dividends declared and paid on the Company’s Class A common stock and such dividends are not forfeitable prior to vesting of the award. Restricted stock awards are valued based on the Company’s Class A common stock price on grant date and equity-based compensation expense is recognized on a straight-line basis over the requisite three-year service period.

Performance Stock Units (“PSU”)—PSUs are granted to certain employees of the Company and are subject to both a service condition and a performance condition. Following the end of the measurement period for the PSUs, the recipients of PSUs may be eligible to vest in all or a portion of PSUs granted, and be issued a number of shares of the Company’s Class A common stock, ranging from 0% to 200% of the number of PSUs granted and eligible to vest, to be determined based upon the performance of the Company’s Class A common stock relative to the Company’s GAAP book value at the end of a two-year measurement period for the 2021 PSU grant (the “2021 Grant”) or the Company’s total shareholder return relative to certain peer group companies at the end of a three-year measurement period for the 2023 PSU grant (the “2023 Grant”). PSUs also contain dividend equivalent rights which entitle the recipients to a payment equal to the amount of dividends that would have been paid on the shares that are ultimately issued at the end of the measurement period.

Fair value of PSUs, including dividend equivalent rights, was determined using a Monte Carlo simulation, with the following assumptions:


	2023 Grant
Expected volatility(1)	74.4	%
Risk free rate(2)	4.6	%
Expected dividend yield(3)	—

_________________________________________

(1)Based upon the Company’s historical stock volatility.

(2)Based upon the continuously compounded zero-coupon U.S. Treasury yield for the term coinciding with the measurement period of the award as of valuation date.

(3)Based upon award holders being entitled to dividends paid during the measurement period on any shares earned.

Fair value of PSU awards, excluding dividend equivalent rights, is recognized on a straight-line basis over their measurement period as compensation expense. Following the completion of the measurement period for the 2021 Grant, the Company issued 136,000 shares of Class A common stock to certain of its employees in March 2023.

The table below summarizes the Company’s awards granted, forfeited or vested under the 2022 Plan during the three months ended March 31, 2023 and 2022:


	Number of Shares			Weighted Average Grant Date Fair Value
	Restricted Stock	PSUs	Total	Restricted Stock		PSUs
















Unvested shares at December 31, 2021	1,482,094	272,000	1,754,094	$	12.35	$	11.96
Vested	(500,462)	—	(500,462)	9.14		—
Unvested shares at March 31, 2022	981,632	272,000	1,253,632	11.54		11.96

Unvested shares at December 31, 2022	2,308,691	272,000	2,580,691	$	8.47	$	11.96
Granted	1,391,217	384,378	1,775,595	6.90		9.69
Vested	(888,834)	(136,000)	(1,024,834)	8.46		11.96
Forfeited	—	(136,000)	—	—		11.96
Unvested shares at March 31, 2023	2,811,074	384,378	3,331,452	7.65		9.69

Fair value of equity awards that vested during the three months ended March 31, 2023 and March 31, 2022, determined based on their respective fair values at vesting date, was $5.4 million and $3.2 million, respectively. Fair value of granted awards is determined based on the closing price of the Class A common stock on the date of grant of the awards. Equity-based compensation is classified within compensation and benefits in the consolidated statement of operations.

At March 31, 2023, aggregate unrecognized compensation cost for all unvested equity awards was $23.7 million, which is expected to be recognized over a weighted-average period of 2.4 years. At March 31, 2022, aggregate unrecognized compensation cost for all unvested equity awards was $7.0 million, which is expected to be recognized over a weighted-average period of 1.8 years.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

The significant accounting policies of the Company are described below. The accounting policies of the Company’s unconsolidated ventures are substantially similar to those of the Company.

Basis of Presentation

Use of Estimates

Principles of Consolidation

Variable Interest Entities

Consolidated VIEs

estate properties represent third party joint venture partners with ownership ranging from 5.0% to 11.0%. These noncontrolling interests do not have substantive kick-out nor participating rights.

Investing VIEs

Unconsolidated VIEs

The maximum exposure to loss of investments in unconsolidated ventures was determined as the carrying value plus any future funding commitments.

Noncontrolling Interests

Noncontrolling Interests in Investment Entities—This represents interests in consolidated investment entities held by third party joint venture partners.

There are no noncontrolling interests in the OP and the OP is owned by the Company directly, and indirectly through the Company’s subsidiary, BRSP-T Partner, LLC.

Comprehensive Income (Loss)

Fair Value Measurement

Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 3—At least one assumption or input is unobservable and it is significant to the fair value measurement, requiring significant management judgment or estimate.

Fair Value Option

Business Combinations

or scarce. To qualify as a business without outputs, the acquired assets would require an organized workforce with the necessary skills, knowledge and experience that performs a substantive process.

Cash and Cash Equivalents

Short-term, highly liquid investments with original maturities of three months or less are considered to be cash equivalents. The Company did not have any cash equivalents at March 31, 2023 or December 31, 2022. The Company’s cash is held with major financial institutions and may at times exceed federally insured limits.

Restricted Cash

Restricted cash consists primarily of borrower escrow deposits, tenant escrow deposits and real estate capital expenditure reserves.

Loans and Preferred Equity Held for Investment

Loans Held for Sale

At March 31, 2023 and December 31, 2022, the Company had no loans classified as held for sale.

Acquisition, Development and Construction (“ADC”) Arrangements

At March 31, 2023 and December 31, 2022, the Company had no ADC arrangements.

Operating Real Estate

Real Estate Held for Investment

Real estate held for investment is carried at cost less accumulated depreciation.

Depreciation—Real estate held for investment, other than land, is depreciated on a straight-line basis over the estimated useful lives of the assets, as follows:


Real Estate Assets						Term
Building (fee interest)						33 to 47 years
Building leasehold interests						Lesser of remaining term of the lease or remaining life of the building
Building improvements						Lesser of the useful life or remaining life of the building
Land improvements						1 to 15 years
Tenant improvements						Lesser of the useful life or remaining term of the lease
Furniture, fixtures and equipment						2 to 8 years

Real Estate Held for Sale

At March 31, 2023 and December 31, 2022, there were no properties held for sale.

Foreclosed Properties

Real Estate Securities

Impairment

Investments in Unconsolidated Ventures

Equity Method Investments

Impairment

including the estimated timing and probabilities of the future cash flows of the unconsolidated joint venture, utilizing discount rates and capitalization rates.

For investments under the measurement alternative, if carrying value of the investment exceeds its fair value, an impairment is deemed to have occurred.

Identifiable Intangibles

Transfers of Financial Assets

Derivative Instruments and Hedging Activities

Changes in fair value of derivatives not designated as accounting hedges are recorded in the consolidated statements of operations in other gain (loss), net.

Financing Costs

Financing costs primarily include debt discounts and premiums as well as deferred financing costs. Deferred financing costs represent commitment fees, legal and other third-party costs associated with obtaining financing. Costs related to revolving credit facilities are recorded in other assets and are amortized to interest expense using the straight-line basis over the term of the facility. Costs related to other borrowings are recorded net against the carrying value of such borrowings and are amortized to interest expense using the effective interest method. Unamortized deferred financing costs are expensed to other gain (loss), net when the associated facility is repaid before maturity. Costs incurred in seeking financing transactions, which do not close, are expensed in the period in which it is determined that the financing will not occur.

Revenue Recognition

Property Operating Income

Property operating income includes the following:

Real Estate Securities

Foreign Currency

Disclosures of non-U.S. dollar amounts to be recorded in the future are translated using exchange rates in effect at the date of the most recent balance sheet presented.

Equity-Based Compensation

The compensation expense is adjusted for actual forfeitures upon occurrence. Equity-based compensation is classified within compensation and benefits in the consolidated statement of operations.

Earnings Per Share

The Company presents both basic and diluted earnings per share (“EPS”) using the two-class method. Basic EPS is calculated by dividing earnings allocated to common shareholders, as adjusted for unallocated earnings attributable to certain participating securities, if any, by the weighted-average number of common shares outstanding during the period. Diluted EPS is based on the weighted-average number of common shares and the effect of potentially dilutive common share equivalents outstanding during the period. The two-class method is an allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. The Company has certain share-based payment awards that contain nonforfeitable rights to dividends, which are considered participating securities for the purposes of computing EPS pursuant to the two-class method.

Income Taxes

For the three months ended March 31, 2023 and 2022, the Company recorded income tax expense of $0.4 million and a de minimis income expense, respectively.

Current Expected Credit Losses (“CECL”) reserve

occupancy metrics. Sponsor is investment grade, very well capitalized, and employs a very experienced management team.

Accounting Standards Adopted in 2022

Real Estate, net and Real Estate Held for Sale - Commitments and Contractual Obligations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2021
Real Estate [Abstract]
Ground rent expense	$ 0.8	$ 0.8

Fair Value

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value

Determination of Fair Value

The following is a description of the valuation techniques used to measure fair value of assets accounted for at fair value on a recurring basis and the general classification of these instruments pursuant to the fair value hierarchy.

PE Investments

The Company accounts for PE Investments at fair value which is determined based on either a valuation model using assumptions for the timing and amount of expected future cash flow for income and realization events for the underlying assets in the funds and discount rate, or pending sales prices, if applicable. This fair value measurement is generally based on unobservable inputs and, as such, is classified as Level 3 of the fair value hierarchy, unless the PE Investments are valued based on pending sales prices, which are classified as Level 2 of the fair value hierarchy. The Company considers cash flow and NAV information provided by general partners of the underlying funds (“GP NAV”) and the implied yields of those funds in valuing its PE Investments. The Company also considers the values derived from the valuation model as a percentage of GP NAV, and compares the resulting percentage of GP NAV to precedent transactions, independent research, industry reports as well as pricing from executed purchase and sale agreements related to the disposition of its PE Investments. The Company may, as a result of that comparison, apply a mark-to-market adjustment. The Company has not elected the practical expedient to measure the fair value of its PE Investments using the NAV of the underlying funds.

Real Estate Securities

CRE securities are generally valued using a third-party pricing service or broker quotations. These quotations are not adjusted and are based on observable inputs that can be validated, and as such, are classified as Level 2 of the fair value hierarchy. Certain CRE securities may be valued based on a single broker quote, dealer bid or an internal price. Situations where management applies adjustments based on or using unobservable inputs would be classified as Level 3 of the fair value hierarchy. Management determines the prices are representative of fair value through a review of available data, including observable inputs, recent transactions as well as its knowledge of and experience in the market.

Investing VIEs

The Company has elected the fair value option for the financial assets and liabilities of the consolidated Investing VIEs. The Investing VIEs are “static,” that is no reinvestment is permitted and there is very limited active management of the underlying assets. The Company is required to determine whether the fair value of the financial assets or the fair value of the financial liabilities of the Investing VIEs are more observable, but in either case, the methodology results in the fair value of the assets of the securitization trust being equal to the fair value of their liabilities. The Company has determined that the fair value of the liabilities of the securitization trust is more observable, since market prices for the liabilities are available from a third-party pricing service or are based on quoted prices provided by dealers who make markets in similar financial instruments. The financial assets of the securitization trust are not readily marketable and their fair value measurement requires information that may be limited in availability.

In determining the fair value of the trust’s financial liabilities, the dealers will consider contractual cash payments and yields expected by market participants. Dealers also incorporate common market pricing methods, including a spread measurement to the treasury curve or interest rate swap curve as well as underlying characteristics of the particular security including coupon, periodic and life caps, collateral type, rate reset period and seasoning or age of the security. The Company’s collateralized mortgage obligations are classified as Level 2 of the fair value hierarchy, where a third-party pricing service or broker quotations are available and are based on observable valuation inputs, and as Level 3 of the fair value hierarchy, where internal price is utilized based on or using unobservable inputs. In accordance with ASC 810, Consolidation, the assets of the securitization trust are an aggregate value derived from the fair value of the trust’s liabilities, and the Company has determined that the valuation of the trust’s assets in their entirety including its retained interests from the securitizations (eliminated in consolidation in accordance with GAAP) should be classified as Level 3 of the fair value hierarchy.

Derivatives

Derivative instruments consist of interest rate contracts and foreign exchange contracts that are generally traded over-the-counter, and are valued using a third-party service provider. Quotations on over-the counter derivatives are not adjusted and are

generally valued using observable inputs such as contractual cash flows, yield curve, foreign currency rates and credit spreads, and are classified as Level 2 of the fair value hierarchy. Although credit valuation adjustments, such as the risk of default, rely on Level 3 inputs, these inputs are not significant to the overall valuation of its derivatives. As a result, derivative valuations in their entirety are classified as Level 2 of the fair value hierarchy.

Fair Value Hierarchy

Financial assets recorded at fair value on a recurring basis are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table presents financial assets that were accounted for at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 by level within the fair value hierarchy (dollars in thousands):


	March 31, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Other assets - PE Investments	$	—	$	—	$	2,790	$	2,790	$	—	$	—	$	3,035	$	3,035


Other assets - derivative assets	—		2,149		—		2,149		—		1,601		—		1,601

The following table presents the changes in fair value of financial assets which are measured at fair value on a recurring basis using Level 3 inputs to determine fair value for the three months ended March 31, 2023 and 2022 (dollars in thousands):


	Three Months Ended March 31,
	2023		2022
	Other assets - PE Investments		Other assets - PE Investments		Mortgage loans held in securitization trusts(1)
Beginning balance	$	3,035	$	4,406	$	813,310

Distributions/paydowns	(245)		—		(13,300)





Unrealized loss in earnings	—		—		(45,431)

Ending balance	$	2,790	$	4,406	$	754,579

_________________________________________

(1)For the three months ended March 31, 2022, the Company recorded an unrealized loss of $45.4 million related to mortgage loans held in securitization trusts, at fair value and an unrealized gain of $45.4 million related to mortgage obligations held in securitization trusts, at fair value.

As of March 31, 2023 and December 31, 2022, the Company utilized a discounted cash flow model, comparable precedent transactions and other market information to quantify Level 3 fair value measurements on a recurring basis. As of March 31, 2023 and December 31, 2022, the key unobservable inputs used in the analysis of PE Investments included discount rates with a range of 11.0% to 12.0% and timing and amount of expected future cash flows. Significant increases or decreases in any one of the inputs described above in isolation may result in significantly different fair value of the financial assets and liabilities using such Level 3 inputs.

Fair Value Option

The Company may elect to apply the fair value option of accounting for certain of its financial assets or liabilities due to the nature of the instrument at the time of the initial recognition of the investment. The Company elected the fair value option for PE Investments and eligible financial assets and liabilities of its consolidated Investing VIEs because management believes it is a more useful presentation for such investments. The Company determined recording the PE Investments based on the change in fair value of projected future cash flow from one period to another better represents the underlying economics of the respective investment. As of March 31, 2023 and December 31, 2022, the Company has elected not to apply the fair value option for any other eligible financial assets or liabilities.

Fair Value of Financial Instruments

In addition to the above disclosures regarding financial assets or liabilities which are recorded at fair value, GAAP requires disclosure of fair value about all financial instruments. The following disclosure of estimated fair value of financial instruments was determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are

not necessarily indicative of the amounts the Company could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair value.

The following table presents the principal amount, carrying value and fair value of certain financial assets and liabilities as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023						December 31, 2022
	Principal Amount		Carrying Value		Fair Value		Principal Amount		Carrying Value		Fair Value
Financial assets:(1)
Loans held for investment, net(2)	$	3,503,107	$	3,349,059	$	3,357,271	$	3,586,248	$	3,468,472	$	3,480,001
Financial liabilities:(1)
Securitization bonds payable, net	$	1,136,546	$	1,132,692	$	1,136,546	$	1,172,717	$	1,167,600	$	1,172,717
Mortgage and other notes payable, net	646,041		644,512		624,574		656,568		656,468		656,568
Master repurchase facilities	1,292,176		1,292,176		1,292,176		1,339,993		1,339,993		1,339,993

_________________________________________

(1)The fair value of other financial instruments not included in this table is estimated to approximate their carrying value.

(2)Excludes future funding commitments of $256.3 million and $263.4 million as of March 31, 2023 and December 31, 2022, respectively.

Disclosure about fair value of financial instruments is based on pertinent information available to management as of March 31, 2023. Although management is not aware of any factors that would significantly affect fair value, such amounts have not been comprehensively revalued for purposes of these consolidated financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.

Loans Held for Investment, Net

For loans held for investment, net, fair values were determined: (i) by comparing the current yield to the estimated yield for newly originated loans with similar credit risk or the market yield at which a third party might expect to purchase such investment; or (ii) based on discounted cash flow projections of principal and interest expected to be collected, which includes consideration of the financial standing of the borrower or sponsor as well as operating results of the underlying collateral. These fair value measurements of CRE debt are generally based on unobservable inputs and, as such, are classified as Level 3 of the fair value hierarchy. Carrying values of loans held for investment are presented net of allowance for loan losses, where applicable.

Securitization Bonds Payable, Net

The Company’s securitization bonds payable, net bear floating rates of interest. As of March 31, 2023, the Company believes the unpaid principal balance approximates fair value. These fair value measurements are based on observable inputs, and as such, are classified as Level 2 of the fair value hierarchy.

Mortgage and Other Notes Payable, Net

For mortgage and other notes payable, net, the Company primarily uses rates currently available with similar terms and remaining maturities to estimate fair value. These measurements are determined using comparable U.S. Treasury rates as of the end of the reporting period. These fair value measurements are based on observable inputs, and as such, are classified as Level 2 of the fair value hierarchy.

Master Repurchase Facilities

The Company has amounts outstanding under Master Repurchase Facilities. The Master Repurchase Facilities bear floating rates of interest. As of March 31, 2023, the Company believes the carrying value approximates fair value. These fair value measurements are based on observable inputs, and as such, are classified as Level 2 of the fair value hierarchy.

Other

The carrying values of cash and cash equivalents, restricted cash, receivables, and accrued and other liabilities approximate fair value due to their short term nature and credit risk, if any, are negligible.

Nonrecurring Fair Values

The Company measures fair value of certain assets on a nonrecurring basis when events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Adjustments to fair value generally result from the application of lower of amortized cost or fair value accounting for assets held for sale or write-down of asset values due to impairment.

The following tables summarize assets carried at fair value on a nonrecurring basis as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023
	Level 1		Level 2		Level 3		Total
Loans held for investment, net(1)	$	—	$	—	$	126,239	$	126,239


	December 31, 2022
	Level 1		Level 2		Level 3		Total
Loans held for investment, net(2)	$	—	$	—	$	79,596	$	79,596

_________________________________________

(1)During the first quarter of 2023, the Company recorded $55.0 million of specific CECL reserves. The Company recorded specific CECL reserves of $29.9 million related to one Washington, D.C. office senior loan, $14.5 million related to the Development Mezzanine Loan and $10.6 million related to one Long Island City, New York office senior loan. The Company elected to use a practical expedient in accordance with the CECL standard to determine the estimated fair value of the collateral. The specific CECL reserves for the two office senior loans were based on the estimated fair value of the collateral using a discounted cash flow model and Level 3 inputs which included assuming a rent per square foot ranging from $25 to $48, a capitalization rate ranging from 6.0% to 7.5% and a discount rate ranging from 9.0% to 12.0%. These inputs are based on the location, type and nature of the property, current and prospective leasing data and anticipated market conditions. The specific CECL reserve for the Development Mezzanine Loan was recorded in connection with the amendment and restructuring of the loan in April 2023, which is collateralized by multifamily with a retail component. The specific CECL reserve for the Development Mezzanine Loan was based on the estimated proceeds the Company expects to receive upon the resolution of the asset in three years, using Level 3 inputs which included assuming a rent per square foot ranging from $42 to $60 and a capitalization rate ranging from 5.0% to 7.0%. These inputs are based on the location, type and nature of the property, current and prospective leasing data and anticipated market conditions.

(2)During the third quarter of 2022, the Company recorded $57.2 million of specific CECL reserves related to two Long Island City, New York office senior loans. The Company elected to use a practical expedient in accordance with the CECL standard to determine the estimated fair value of the collateral. The estimated fair value of the collateral was determined by using a discounted cash flow model and Level 3 inputs, which included assuming a rent per square foot ranging from $25 to $34, a capitalization rate ranging from 6.0% to 6.5% and a discount rate ranging from 9.5% to 12.2%. These inputs are based on the location, type and nature of the property, current and prospective leasing data and anticipated market conditions.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Real Estate Securities (Tables)

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Classification, Carrying Value and Maximum Exposure of VIEs


	Three Months Ended March 31,
	2022
Statement of Operations

Interest income on mortgage loans held in securitization trusts	$	9,375
Interest expense on mortgage obligations issued by securitization trusts	(8,488)
Net interest income	887
Operating expense	(97)


Net income attributable to BrightSpire Capital, Inc. common stockholders	$	790

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Restricted Cash, Other Assets and Accrued and Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Summary of Restricted Cash

The following table presents a summary of restricted cash as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023		December 31, 2022
Restricted cash:
Borrower escrow deposits	$	65,323	$	79,055
Capital expenditure reserves	9,030		8,623
Real estate escrow reserves	2,623		1,583
Working capital and other reserves	2,186		2,145
Tenant lockboxes	861		1,102

Total	$	80,023	$	92,508

Summary of Other Assets

The following table presents a summary of other assets as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023		December 31, 2022
Other assets:
Right-of-use lease asset	$	24,219	$	25,237
Tax receivable and deferred tax assets	19,080		19,117
Deferred financing costs, net - credit facilities	3,086		4,630
Investments in unconsolidated ventures ($2,790 and $3,035 at fair value, respectively)	2,790		3,035

Derivative assets	2,149		1,601
Prepaid expenses and other	1,252		2,053
Total	$	52,576	$	55,673

Summary of Other Liabilities

The following table presents a summary of accrued and other liabilities as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023		December 31, 2022
Accrued and other liabilities:
Operating lease liability	$	24,997	$	25,961
Current and deferred tax liability	24,637		26,198
Interest payable	12,719		11,680
Prepaid rent and unearned revenue	12,251		7,688
Accounts payable, accrued expenses and other liabilities	8,358		15,087
Tenant security deposits	661		411
Unfunded CECL loan allowance	414		389
Other	219		219
Total	$	84,256	$	87,633

Commitments and Contingencies - Summary of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Ground Leases
Long-term Purchase Commitment [Line Items]
Minimum lease expense	$ 777	$ 768
Variable lease expense	0	0
Total operating lease expense	777	768
New York and Los Angeles Offices
Long-term Purchase Commitment [Line Items]
Minimum lease expense	315	200
Total operating lease expense	$ 315	$ 200

Loans and Preferred Equity Held for Investment, net - Summary of Loans and Preferred Equity Held for Investment by Year of Origination and Credit Quality Risk Ranking (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	$ 1,028	$ 891,650
One year before current fiscal year	899,709	1,433,420
Two years before current fiscal year	1,376,609	96,096
Three years before current fiscal year	96,178	471,994
Four years before current fiscal year	1,121,371	681,829
Total	3,494,895	3,574,989
Senior loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	845,097
One year before current fiscal year	852,187	1,433,420
Two years before current fiscal year	1,376,609	96,096
Three years before current fiscal year	96,178	399,843
Four years before current fiscal year	1,031,715	665,250
Total	3,356,689	3,439,706
Senior loans \| Risk Ranking 2
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	141,457
Two years before current fiscal year	93,778	42,710
Three years before current fiscal year	0	25,904
Four years before current fiscal year	25,929	0
Total	119,707	210,071
Senior loans \| Risk Ranking 3
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	845,097
One year before current fiscal year	852,187	1,267,092
Two years before current fiscal year	1,174,409	53,386
Three years before current fiscal year	96,178	112,689
Four years before current fiscal year	486,498	291,996
Total	2,609,272	2,570,260
Senior loans \| Risk Ranking 4
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	24,871
Two years before current fiscal year	108,422	0
Three years before current fiscal year	0	192,920
Four years before current fiscal year	325,591	304,822
Total	434,013	522,613
Senior loans \| Risk Ranking 5
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	68,330
Four years before current fiscal year	193,697	68,432
Total	193,697	136,762
Mezzanine loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	1,028	24,056
One year before current fiscal year	24,799	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	72,151
Four years before current fiscal year	89,656	16,579
Total	115,483	112,786
Mezzanine loans \| Risk Ranking 3
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	24,056
One year before current fiscal year	24,799	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	32,489	4,459
Total	57,288	28,515
Mezzanine loans \| Risk Ranking 4
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	1,028	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	72,151
Four years before current fiscal year	12,450	0
Total	13,478	72,151
Mezzanine loans \| Risk Ranking 5
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	44,717	12,120
Total	44,717	12,120
Preferred equity interests
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	22,497
One year before current fiscal year	22,723	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Total	22,723	22,497
Preferred equity interests \| Risk Ranking 3
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	22,497
One year before current fiscal year	22,723	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Total	$ 22,723	$ 22,497

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Summary of Distributions Declared

During the three months ended March 31, 2023 and 2022, the Company declared the following dividends on its common stock:

Declaration Date

Record Date

Payment Date

Per Share

March 16, 2023

March 31, 2023

April 17, 2023

$0.20

March 15, 2022

March 31, 2022

April 15, 2022

$0.19

Reclassification out of Accumulated Other Comprehensive Income

The following tables present the changes in each component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) attributable to stockholders and noncontrolling interests in the OP, net of immaterial tax effect.

Changes in Components of AOCI - Stockholders


(dollars in thousands)	Unrealized gain on net investment hedges		Foreign currency translation loss		Total


















AOCI at December 31, 2022	$	18,603	$	(19,279)	$	(676)
Other comprehensive income (loss)	—		(3,463)		(3,463)
AOCI at March 31, 2023	$	18,603	$	(22,742)	$	(4,139)


(in thousands)	Unrealized gain on net investment hedges		Foreign currency translation gain (loss)		Total














AOCI at December 31, 2021	$	17,893	$	(9,107)	$	8,786
Other comprehensive income	—		660		660


AOCI at March 31, 2022	$	17,893	$	(8,447)	$	9,446

Changes in Components of AOCI - Noncontrolling Interests in the OP


(in thousands)	Unrealized gain on net investment hedges		Foreign currency translation gain (loss)		Total














AOCI at December 31, 2021	$	710	$	(872)	$	(162)
Other comprehensive income	—		16		16


AOCI at March 31, 2022	$	710	$	(856)	$	(146)

Changes in Components of AOCI - Noncontrolling Interests in investment entities


(in thousands)	Foreign currency translation gain (loss)		Total










AOCI at December 31, 2021	$	1,872	$	1,872
Other comprehensive income before reclassification	—		—
Amounts reclassified from AOCI	(1,872)		(1,872)
Net current period OCI	(1,872)		(1,872)
AOCI at March 31, 2022	$	—	$	—

Equity-Based Compensation - Fair Value Assumptions (Details) - 2023 Grant	3 Months Ended
	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	74.40%
Risk free rate	4.60%
Expected dividend yield	0.00%

Loans and Preferred Equity Held for Investment, net

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Loans and Preferred Equity Held for Investment, net

The following table provides a summary of the Company’s loans and preferred equity held for investment, net (dollars in thousands):


	March 31, 2023							December 31, 2022
	Unpaid Principal Balance		Carrying Value		Weighted Average Coupon(1)		Weighted Average Maturity in Years	Unpaid Principal Balance		Carrying Value		Weighted Average Coupon(1)		Weighted Average Maturity in Years





Variable rate
Senior loans	$	1,932,096	$	1,925,969	8.3	%	3.3	$	1,981,973	$	1,972,952	7.9	%	3.5
Securitized loans(2)	1,432,619		1,430,720		8.0	%	2.5	1,468,790		1,466,754		7.8	%	2.7
Mezzanine loans	12,330		12,450		15.8	%	0.7	12,000		12,120		15.4	%	0.0

	3,377,045		3,369,139					3,462,763		3,451,826
Fixed rate
Mezzanine loans	103,121		103,033		12.2	%	2.4	100,765		100,666		12.2	%	2.6
Preferred equity interests	22,941		22,723		12.0	%	9.7	22,720		22,497		12.0	%	9.9
	126,062		125,756					123,485		123,163
Loans held for investment	3,503,107		3,494,895					3,586,248		3,574,989

CECL reserve	—		(145,836)					—		(106,247)
Loans and preferred equity held for investment, net	$	3,503,107	$	3,349,059				$	3,586,248	$	3,468,742

_________________________________________

(1)Calculated based on contractual interest rate.

(2)Represents loans transferred into securitization trusts that are consolidated by the Company.

The weighted average maturity, including extensions, of loans and preferred equity was 3.0 years at March 31, 2023. At December 31, 2022, the weighted average maturity, including extensions, of loans was 3.2 years.

The Company had $17.1 million and $16.4 million of interest receivable related to its loans and preferred equity held for investment, net as of March 31, 2023 and December 31, 2022, respectively. This is included in receivables, net on the Company’s consolidated balance sheets.

Activity relating to the Company’s loans and preferred equity held for investment, net was as follows (dollars in thousands):


	Carrying Value
	Three Months Ended March 31,
	2023		2022
Balance at January 1	$	3,468,742	$	3,449,009
Acquisitions/originations/additional funding	16,388		498,195
Loan maturities/principal repayments	(101,368)		(227,897)

Discount accretion/premium amortization	3,038		2,999
Capitalized interest	1,848		969
(Increase) decrease of CECL reserve(1)	(39,589)		1,343
Charge-off	—		1,251


Balance at March 31	$	3,349,059	$	3,725,869

_________________________________________

Nonaccrual and Past Due Loans and Preferred Equity

Loans and preferred equity that are 90 days or more past due as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming and placed on nonaccrual status.

The following table provides an aging summary of loans and preferred equity held for investment at carrying values before CECL reserve (dollars in thousands):


	Current or Less Than 30 Days Past Due		30-59 Days Past Due		60-89 Days Past Due(1)		90 Days or More Past Due(2)(3)		Total Loans and Preferred Equity
March 31, 2023	$	3,369,528	$	—	$	56,935	$	68,432	$	3,494,895
December 31, 2022	3,494,437		68,432		—		12,120		3,574,989

_________________________________________

(1)Represents the Washington, D.C. office senior loan which is in maturity default and was placed on nonaccrual status on February 9, 2023.

Current Expected Credit Loss Reserve

The following table provides details on the changes in CECL reserves (dollars in thousands):


CECL reserve at December 31, 2022	$	106,247
Increase (decrease) in general CECL reserve(1)	(15,418)
Increase in specific CECL reserve(2)	55,007

CECL reserve at March 31, 2023	$	145,836

CECL reserve at December 31, 2021	$	36,598
Increase (decrease) in general CECL reserve(1)	(1,343)

Charge-offs of CECL reserve(3)	(1,251)
CECL reserve at March 31, 2022	$	34,004

_________________________________________

Credit Quality Monitoring

Loans are typically secured by direct senior priority liens on real estate properties or by interests in entities that directly own real estate properties, which serve as the primary source of cash for the payment of principal and interest. The Company evaluates its loans at least quarterly and differentiates the relative credit quality principally based on: (i) whether the borrower is currently paying contractual debt service in accordance with its contractual terms; and (ii) whether the Company believes the borrower will be able to perform under its contractual terms in the future, as well as the Company’s expectations as to the ultimate recovery of principal at maturity.

As of March 31, 2023, all loans and preferred equity were performing in accordance with the contractual terms of their governing documents and were categorized as performing loans, except for the Long Island City, New York Office senior loan and the Washington D.C. office senior loan, as noted in “Nonaccrual and Past Due Loans and Preferred Equity” above. As of December 31, 2022, all loans and preferred equity were performing in accordance with the contractual terms of their governing documents and were categorized as performing loans, except for the New York, New York Hotel mezzanine loan and the Long

Island City, New York Office senior loan, as noted in “Nonaccrual and Past Due Loans and Preferred Equity” above. For the three months ended March 31, 2023 and March 31, 2022, no debt investment contributed more than 10.0% of interest income.


	March 31, 2023
	Year of Origination
Risk Rankings	2023		2022		2021		2020		2019 and earlier		Total
Senior loans

2	$	—	$	—	$	93,778	$	—	$	25,929	$	119,707
3	—		852,187		1,174,409		96,178		486,498		2,609,272
4	—		—		108,422		—		325,591		434,013
5	—		—		—		—		193,697		193,697
Total Senior loans	—		852,187		1,376,609		96,178		1,031,715		3,356,689

Mezzanine loans



3	—		24,799		—		—		32,489		57,288
4	1,028		—		—		—		12,450		13,478
5	—		—		—		—		44,717		44,717
Total Mezzanine loans	1,028		24,799		—		—		89,656		115,483

Preferred equity interests



3	—		22,723		—		—		—		22,723


Total Preferred equity interests	—		22,723		—		—		—		22,723

Total Loans and preferred equity held for investment	$	1,028	$	899,709	$	1,376,609	$	96,178	$	1,121,371	$	3,494,895

As of March 31, 2023, the weighted average risk ranking for loans and preferred equity held for investment was 3.2.


	December 31, 2022
	Year of Origination
Risk Rankings	2022		2021		2020		2019		2018 and Earlier		Total
Senior loans

2	$	—	$	141,457	$	42,710	$	25,904	$	—	$	210,071
3	845,097		1,267,092		53,386		112,689		291,996		2,570,260
4	—		24,871		—		192,920		304,822		522,613
5	—		—		—		68,330		68,432		136,762
Total Senior loans	845,097		1,433,420		96,096		399,843		665,250		3,439,706

Mezzanine loans



3	24,056		—		—		—		4,459		28,515
4	—		—		—		72,151		—		72,151
5	—		—		—		—		12,120		12,120
Total Mezzanine loans	24,056		—		—		72,151		16,579		112,786

Preferred equity interests



3	22,497		—		—		—		—		22,497


Total Preferred equity interests	22,497		—		—		—		—		22,497

Total Loans and Preferred Equity held for investment	$	891,650	$	1,433,420	$	96,096	$	471,994	$	681,829	$	3,574,989

As of December 31, 2022, the weighted average risk ranking for loans and preferred equity held for investment was 3.2.

Lending Commitments

The Company has lending commitments to borrowers pursuant to certain loan agreements in which the borrower may submit a request for funding contingent on achieving certain criteria, which must be approved by the Company as lender, such as leasing, performance of capital expenditures and construction in progress with an approved budget. Assuming the terms to qualify for future advances, if any, had been met, total gross unfunded lending commitments were $256.3 million and $263.4 million at March 31, 2023 and December 31, 2022, respectively. Refer to Note 15, “Commitments and Contingencies” for further details. The Company recorded $0.4 million and $0.4 million for allowance for lending commitments in accrued and other liabilities on its consolidated balance sheets in accordance with CECL at March 31, 2023 and December 31, 2022, respectively. See Note 2, “Summary of Significant Accounting Policies” for further details.

Fair Value (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis

The following table presents financial assets that were accounted for at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 by level within the fair value hierarchy (dollars in thousands):


	March 31, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Other assets - PE Investments	$	—	$	—	$	2,790	$	2,790	$	—	$	—	$	3,035	$	3,035


Other assets - derivative assets	—		2,149		—		2,149		—		1,601		—		1,601

Schedule of Changes in Level 3


	Three Months Ended March 31,
	2023		2022
	Other assets - PE Investments		Other assets - PE Investments		Mortgage loans held in securitization trusts(1)
Beginning balance	$	3,035	$	4,406	$	813,310

Distributions/paydowns	(245)		—		(13,300)





Unrealized loss in earnings	—		—		(45,431)

Ending balance	$	2,790	$	4,406	$	754,579

_________________________________________

Summary of Principal Amount, Carrying Value and Fair Value of Financial Assets and Liabilities

The following table presents the principal amount, carrying value and fair value of certain financial assets and liabilities as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023						December 31, 2022
	Principal Amount		Carrying Value		Fair Value		Principal Amount		Carrying Value		Fair Value
Financial assets:(1)
Loans held for investment, net(2)	$	3,503,107	$	3,349,059	$	3,357,271	$	3,586,248	$	3,468,472	$	3,480,001
Financial liabilities:(1)
Securitization bonds payable, net	$	1,136,546	$	1,132,692	$	1,136,546	$	1,172,717	$	1,167,600	$	1,172,717
Mortgage and other notes payable, net	646,041		644,512		624,574		656,568		656,468		656,568
Master repurchase facilities	1,292,176		1,292,176		1,292,176		1,339,993		1,339,993		1,339,993

_________________________________________

(1)The fair value of other financial instruments not included in this table is estimated to approximate their carrying value.

(2)Excludes future funding commitments of $256.3 million and $263.4 million as of March 31, 2023 and December 31, 2022, respectively.

Fair Value Measurements, Nonrecurring

The following tables summarize assets carried at fair value on a nonrecurring basis as of March 31, 2023 and December 31, 2022 (dollars in thousands):


	March 31, 2023
	Level 1		Level 2		Level 3		Total
Loans held for investment, net(1)	$	—	$	—	$	126,239	$	126,239


	December 31, 2022
	Level 1		Level 2		Level 3		Total
Loans held for investment, net(2)	$	—	$	—	$	79,596	$	79,596

_________________________________________

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share [Abstract]
Net income (loss)	$ (4,202)	$ 28,400
Net (income) loss attributable to noncontrolling interests:
Investment Entities	75	(22)
Operating Partnership	0	(654)
Net income (loss) attributable to BrightSpire Capital, Inc. common stockholders	(4,127)	27,724
Numerator:
Net (income) loss allocated to participating securities (non-vested shares)	0	(110)
Net income attributable to BrightSpire Capital, Inc. common stockholders	$ (4,127)	$ 27,614
Denominator:
Weighted average shares of common stock outstanding - basic (in shares)	126,665,000	128,758,000
Weighted average shares of common stock outstanding - diluted (in shares)	126,665,000	129,745,000
Net income (loss) per common share - basic (in dollars per share)	$ (0.03)	$ 0.21
Net income (loss) per common share - diluted (in dollars per share)	$ (0.03)	$ 0.21
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding (in shares)	3,331,452	1,253,632	2,580,691	1,754,094
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding (in shares)	2,811,074	981,632	2,308,691	1,482,094
Antidilutive securities excluded from computation of earnings per share (in shares)	2,537,125

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2022
Cash flows from operating activities:
Net income (loss)	$ (4,202)	$ 28,400
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity in (earnings) losses of unconsolidated ventures	0	(25)
Depreciation and amortization	7,996	8,594
Straight-line rental income	(467)	(391)
Amortization of above/below market lease values, net	(140)	(42)
Amortization of premium/accretion of discount and fees on investments and borrowings, net	(3,038)	(2,999)
Amortization of deferred financing costs	2,957	2,327
Amortization of right-of-use lease assets and operating lease liabilities	53	99
Paid-in-kind interest added to loan principal, net of interest received	(1,848)	2,719
Realized gain on sale of real estate	0	(10,632)
Increase (decrease) of current expected credit loss reserve	39,613	(866)
Amortization of equity-based compensation	2,295	1,880
Mortgage notes above/below market value amortization	(1,324)	53
Deferred income tax (benefit) expense	159	(500)
Other (gain) loss, net	(547)	269
Changes in assets and liabilities:
Receivables, net	(1,835)	2,010
Deferred costs and other assets	770	472
Other liabilities	(769)	989
Net cash provided by operating activities	39,673	32,357
Cash flows from investing activities:
Acquisition, origination and funding of loans held for investment, net	(16,388)	(498,195)
Repayment on loans held for investment	101,368	215,305
Proceeds from sale of real estate	0	55,600
Acquisition of and additions to real estate, related intangibles and leasing commissions	(1,870)	(1,468)
Distributions in excess of cumulative earnings from unconsolidated ventures	245
Distributions in excess of cumulative earnings from unconsolidated ventures		(4)
Repayment of principal in mortgage loans held in securitization trusts	0	13,300
Change in escrow deposits payable	(13,733)	(3,340)
Net cash provided by (used in) investing activities	69,622	(218,802)
Cash flows from financing activities:
Distributions paid on common stock	(25,963)	(23,934)
Shares canceled for tax withholding on vested stock awards	(2,885)	(998)
Repayment of mortgage notes	(1,358)	(43,303)
Borrowings from credit facilities	110,324	383,334
Repayment of credit facilities	(158,216)	(88,667)
Repayment of securitization bonds	(36,171)	(40,736)
Repayment of mortgage obligations issued by securitization trusts	0	(13,300)
Payment of deferred financing costs	(126)	(2,338)
Distributions to noncontrolling interests	(28)	(110)
Issuance of common stock	15	0
Net cash provided by (used in) financing activities	(114,408)	169,948
Effect of exchange rates on cash, cash equivalents and restricted cash	(172)	496
Net decrease in cash, cash equivalents and restricted cash	(5,285)	(16,001)
Cash, cash equivalents and restricted cash - beginning of period	398,828	346,563
Cash, cash equivalents and restricted cash - end of period	393,543	330,562	$ 346,563
Reconciliation of cash, cash equivalents, and restricted cash to consolidated balance sheets
Cash and cash equivalents	313,520	246,070	259,722	$ 306,320
Restricted cash	80,023	84,492	86,841	92,508
Total cash, cash equivalents and restricted cash	393,543	330,562	$ 346,563	$ 398,828
Supplemental disclosure of non-cash investing and financing activities:
Accrual of distribution payable	25,989	25,525
Right-of-use lease assets and operating lease liabilities	$ 0	$ 3,271

Fair Value - Narrative (Details) - Discount Rate	Mar. 31, 2023 measurement_input	Dec. 31, 2022 measurement_input	Sep. 30, 2022
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input			0.095
Minimum \| Other assets - PE Investments \| Level 3 \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input	0.110	0.110
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input			0.122
Maximum \| Other assets - PE Investments \| Level 3 \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input	0.120	0.120

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Dividends In April 2023, the Company paid a quarterly cash dividend of $0.20 per share of its Class A common stock for the quarter ended March 31, 2023, to stockholders of record on March 31, 2023. Development Mezzanine Loan In April 2023, the Company amended the Development Mezzanine Loan, bifurcating it into a $30.2 million Mezzanine A note (the “Mezzanine A Note”) and a $14.5 million Mezzanine B note (the “Mezzanine B Note”) to facilitate a new equity contribution from the borrower behind the Mezzanine A Note and ahead of the Mezzanine B Note. As part of the restructuring, the Company extended the terms of both the Mezzanine A Note and Mezzanine B Note to be conterminous with the senior loan which was extended to March 2025, with an additional one-year extension option to March 2026. In connection with this amendment and restructuring of the loan in April 2023, during the first quarter of 2023, the Company recorded a specific CECL reserve of $14.5 million based on the estimated proceeds the Company expects to receive upon the resolution of the asset. Additionally, the Company placed the Mezzanine B Note on nonaccrual status in April 2023. Share Repurchase Program In April 2023, the Company’s board of directors authorized the Stock Repurchase Program under which the Company may repurchase up to $50.0 million of its outstanding Class A common stock until April 30, 2024. The Stock Repurchase Program replaces the prior repurchase program authorization which expired on April 30, 2023.

Loans and Preferred Equity Held for Investment, net - Summary of Loans Held for Investment, Net (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Impaired [Line Items]
Principal amount, financial assets	$ 3,503,107	$ 3,586,248
Loan carrying value	3,494,895	3,574,989
CECL reserve	(145,836)	(106,247)	$ (34,004)	$ (36,598)
Loans and preferred equity held for investment, net	3,349,059	3,468,742	$ 3,725,869	$ 3,449,009
Variable rate
Financing Receivable, Impaired [Line Items]
Principal amount, financial assets	3,377,045	3,462,763
Fixed rate
Financing Receivable, Impaired [Line Items]
Principal amount, financial assets	126,062	123,485
Commercial mortgage
Financing Receivable, Impaired [Line Items]
Principal amount, financial assets	3,503,107	3,586,248
Loan carrying value	3,494,895	3,574,989
Loans and preferred equity held for investment \| Variable rate
Financing Receivable, Impaired [Line Items]
Loan carrying value	3,369,139	3,451,826
Loans and preferred equity held for investment \| Fixed rate
Financing Receivable, Impaired [Line Items]
Loan carrying value	125,756	123,163
Loans and preferred equity held for investment \| Commercial mortgage
Financing Receivable, Impaired [Line Items]
Loan carrying value	3,494,895	3,574,989
Senior loans \| Variable rate
Financing Receivable, Impaired [Line Items]
Principal amount, financial assets	$ 1,932,096	$ 1,981,973
Weighted average coupon (in percentage)	8.30%	7.90%
Weighted average maturity in years	3 years 3 months 18 days	3 years 6 months
Senior loans \| Loans and preferred equity held for investment \| Variable rate
Financing Receivable, Impaired [Line Items]
Loan carrying value	$ 1,925,969	$ 1,972,952
Securitized loans \| Variable rate
Financing Receivable, Impaired [Line Items]
Principal amount, financial assets	$ 1,432,619	$ 1,468,790
Weighted average coupon (in percentage)	8.00%	7.80%
Weighted average maturity in years	2 years 6 months	2 years 8 months 12 days
Securitized loans \| Loans and preferred equity held for investment \| Variable rate
Financing Receivable, Impaired [Line Items]
Loan carrying value	$ 1,430,720	$ 1,466,754
Mezzanine loans \| Variable rate
Financing Receivable, Impaired [Line Items]
Principal amount, financial assets	$ 12,330	$ 12,000
Weighted average coupon (in percentage)	15.80%	15.40%
Weighted average maturity in years	8 months 12 days	0 years
Mezzanine loans \| Fixed rate
Financing Receivable, Impaired [Line Items]
Principal amount, financial assets	$ 103,121	$ 100,765
Weighted average coupon (in percentage)	12.20%	12.20%
Weighted average maturity in years	2 years 4 months 24 days	2 years 7 months 6 days
Mezzanine loans \| Loans and preferred equity held for investment \| Variable rate
Financing Receivable, Impaired [Line Items]
Loan carrying value	$ 12,450	$ 12,120
Mezzanine loans \| Loans and preferred equity held for investment \| Fixed rate
Financing Receivable, Impaired [Line Items]
Loan carrying value	103,033	100,666
Preferred equity interests \| Fixed rate
Financing Receivable, Impaired [Line Items]
Principal amount, financial assets	$ 22,941	$ 22,720
Weighted average coupon (in percentage)	12.00%	12.00%
Weighted average maturity in years	9 years 8 months 12 days	9 years 10 months 24 days
Preferred equity interests \| Loans and preferred equity held for investment \| Fixed rate
Financing Receivable, Impaired [Line Items]
Loan carrying value	$ 22,723	$ 22,497

Debt - Future Minimum Principal Payments (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Future Scheduled Minimum Principal Payments
Remaining 2023	$ 1,906
2024	132,982
2025	226,086
2026	363,684
2027	1,003,419
2028 and thereafter	1,346,686
Total	3,074,763
Securitization Bonds Payable, Net
Future Scheduled Minimum Principal Payments
Remaining 2023	0
2024	0
2025	0
2026	0
2027	0
2028 and thereafter	1,136,546
Total	1,136,546
Mortgage Notes Payable, Net
Future Scheduled Minimum Principal Payments
Remaining 2023	1,906
2024	132,982
2025	226,086
2026	54,571
2027	20,356
2028 and thereafter	210,140
Total	646,041
Credit Facilities
Future Scheduled Minimum Principal Payments
Remaining 2023	0
2024	0
2025	0
2026	309,113
2027	983,063
2028 and thereafter	0
Total	$ 1,292,176

Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Authorized Capital

As of March 31, 2023, the Company had the authority to issue up to 1.0 billion shares of stock, at $0.01 par value per share, consisting of 950.0 million shares of Class A common stock and 50.0 million shares of preferred stock.

The Company had no shares of preferred stock issued and outstanding as of March 31, 2023.

Dividends

During the three months ended March 31, 2023 and 2022, the Company declared the following dividends on its common stock:

Declaration Date

Record Date

Payment Date

Per Share

March 16, 2023

March 31, 2023

April 17, 2023

$0.20

March 15, 2022

March 31, 2022

April 15, 2022

$0.19

Share Repurchases

In April 2023, the Company’s board of directors authorized a stock repurchase program (“Stock Repurchase Program”) under which the Company may repurchase up to $50.0 million of its outstanding Class A common stock until April 30, 2024. The Stock Repurchase Program replaces the prior repurchase program authorization which expired on April 30, 2023. Under the Stock Repurchase Program, the Company may repurchase shares in open market purchases, in privately negotiated transactions or otherwise. The Company has a written trading plan as part of the Share Repurchase Program that provides for share repurchases in open market transactions that is intended to comply with Rule 10b-18 under the Exchange Act. The Stock Repurchase Program will be utilized at management’s discretion and in accordance with the requirements of the SEC. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate requirements and other conditions.

The Company did not repurchase any shares of its Class A common stock during the three months ended March 31, 2023. As of March 31, 2023, there was $81.7 million remaining available to make repurchases under the prior stock repurchase plan.

Accumulated Other Comprehensive Income (Loss)

Changes in Components of AOCI - Stockholders


(dollars in thousands)	Unrealized gain on net investment hedges		Foreign currency translation loss		Total


















AOCI at December 31, 2022	$	18,603	$	(19,279)	$	(676)
Other comprehensive income (loss)	—		(3,463)		(3,463)
AOCI at March 31, 2023	$	18,603	$	(22,742)	$	(4,139)


(in thousands)	Unrealized gain on net investment hedges		Foreign currency translation gain (loss)		Total














AOCI at December 31, 2021	$	17,893	$	(9,107)	$	8,786
Other comprehensive income	—		660		660


AOCI at March 31, 2022	$	17,893	$	(8,447)	$	9,446

Changes in Components of AOCI - Noncontrolling Interests in the OP


(in thousands)	Unrealized gain on net investment hedges		Foreign currency translation gain (loss)		Total














AOCI at December 31, 2021	$	710	$	(872)	$	(162)
Other comprehensive income	—		16		16


AOCI at March 31, 2022	$	710	$	(856)	$	(146)

Changes in Components of AOCI - Noncontrolling Interests in investment entities


(in thousands)	Foreign currency translation gain (loss)		Total










AOCI at December 31, 2021	$	1,872	$	1,872
Other comprehensive income before reclassification	—		—
Amounts reclassified from AOCI	(1,872)		(1,872)
Net current period OCI	(1,872)		(1,872)
AOCI at March 31, 2022	$	—	$	—

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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+ Details

Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended
Noncontrolling Interests (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Noncontrolling Interest [Abstract]
Net income (loss) attributable to noncontrolling interests	$ 0	$ 654
Net income (loss) attributable to noncontrolling interests, investment entities	$ (75)	$ 22

Deferred Leasing Costs and Other Intangibles - Schedule of Amortization of Deferred Leasing Costs, Intangible Assets and Intangible Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Below-market lease values
2023	$ 1,034
2024	1,379
2025	1,378
2026	703
2027	0
2028 and thereafter	0
Total	4,494	$ 4,839
Deferred leasing costs
2023	1,924
2024	2,290
2025	1,873
2026	967
2027	849
2028 and thereafter	4,173
Total	12,076	12,798
Net increase (decrease) to property operating income
Intangible assets (liabilities) and deferred leasing costs, amortization expense (income):
2022	603
2024	931
2025	1,108
2026	612
2027	(38)
2028 and thereafter	0
Total	3,216
Amortization expense
Intangible assets (liabilities) and deferred leasing costs, amortization expense (income):
2022	5,645
2024	6,974
2025	5,872
2026	4,132
2027	3,911
2028 and thereafter	23,318
Total	49,852
Above-market lease values
Above-market and In-place lease values
2023	(431)
2024	(448)
2025	(270)
2026	(91)
2027	(38)
2028 and thereafter	0
Total	(1,278)	(1,484)
In-place lease values
Above-market and In-place lease values
2023	(3,721)
2024	(4,684)
2025	(3,999)
2026	(3,165)
2027	(3,062)
2028 and thereafter	(19,145)
Total	$ (37,776)	$ (39,698)

Commitments and Contingencies - Future Minimum Rental Payments, Ground Leases 2022 (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Long-term Purchase Commitment [Line Items]
Operating lease liability	$ 24,997	$ 25,961
Ground Leases
Long-term Purchase Commitment [Line Items]
Remainder of 2023	2,332
2024	2,213
2025	2,148
2026	2,073
2027	1,755
2028 and thereafter	15,499
Total lease payments	26,020
Less: Present value discount	8,419
Operating lease liability	$ 17,601

Real Estate, net and Real Estate Held for Sale - Real Estate Portfolios (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Real Estate [Line Items]
Net lease portfolio, net	$ 714,725	$ 732,468
Net lease portfolio, net
Real Estate [Line Items]
Land and improvements	125,797	128,608
Buildings, building leaseholds, and improvements	493,020	505,297
Tenant improvements	18,989	17,851
Subtotal	637,806	651,756
Less: Accumulated depreciation	(89,604)	(87,109)
Net lease portfolio, net	548,202	564,647
Other portfolio, net
Real Estate [Line Items]
Land and improvements	29,790	29,582
Buildings, building leaseholds, and improvements	152,748	152,186
Tenant improvements	20,370	18,757
Furniture, fixtures and equipment	269	135
Construction-in-progress	864	3,011
Subtotal	204,041	203,671
Less: Accumulated depreciation	(37,518)	(35,850)
Net lease portfolio, net	$ 166,523	$ 167,821