Thank you everybody for joining us for the 9:30 A.M. session with BrightSpire Capital. My name is Gabriel Poggi. I'm the managing director at Raymond James. I cover the real estate finance sector. With me this morning, I've got BrightSpire CEO, Michael Mazzei, President and CEO, Andrew Witt, and Frank Saracino, CFO of BrightSpire. A quick background on BrightSpire, ticker is BRSP, trades on the New York Stock Exchange. Last quote was at $5.60. Market cap is $730 million. Average daily volume, about 770,000 shares. Stock trades to yield currently today, a little over 11%. Undepreciated book value was $8.25, rounding up $0.01 as of last quarter. The stock trades about $0.70 on the book value dollar. I'm going to hand it off to Mike and the management team to give a brief overview, history of BrightSpire, talk about where you guys traffic in the market, and we'll go from there. Great. I'll handle that. BrightSpire is the former mortgage REIT of Colony Capital. In early 2021, the company bought back the management contract, internalized the manager, rebranded as BrightSpire, and today we're predominantly focused on middle market transitional lending. The company has a balance sheet or loan assets of about $2.7 billion over 100 individual loans. We're really trafficking in that middle market space between, say, $20 million and $100 million in terms of loan balance. The platform itself is totally vertically integrated. We've got in-house asset management. We brought over a special servicer from the transition. We're really managing these loans from the onset at originations through closing. We're targeting a ROE of about 12%, and we're about 55 people. It trades, as was said earlier, under the BRSP ticker. All right. Thanks. We're going to start with the macro narrative because the macro is driving the bus these days, and then we'll go from there and then get into the BrightSpire portfolio, et cetera. Let's start with rate volatility. There's been a whole heck of a lot of it over the past few months. Can you guys talk about how benchmark rate vol has impacted the business? Has it impacted the business, pluses, minuses, as we think about different points on the curve, et cetera? Okay. Well, thank you for being here. You're welcome. Welcome back to research. Thank you. It's absolutely impacted the business. It's impacted every business as we all know and are reading about. The higher rate environment has increased cap costs, interest rate cap costs dramatically year-over-year. Another issue. Right now, our sector, CRE sector, you're seeing a lot of bridge-to-bridge. Owners cannot go fixed rate at this point. They can't lock in with the Treasury at 4.5% on the 10-year. A lot of their coupons already have four handles on them if they were done pre-COVID. A lot of bridge loans that are coming due can't get refinancing fixed rate. It's a very active bridge-to-bridge market in our sector. A lot of inquiry that we're getting, properties coming out of construction where the current lender, surprise, wants a big paydown on the loan. The borrowers don't want to do that paydown because the lender's not giving enough runway. They're only giving a one-year extension for a pretty big paydown on loans that may already be recourse. We're seeing a lot of inquiry coming to us that are construction to bridge, where the bank does not want to do the mini-perm, or bridge to bridge which normally you would not do bridge to bridge because something has failed in the business plan, but bridge to bridge simply because owners need more time. Owners have been faced with higher expenses, a ton of supply that's hit the market, longer-term lease-up timelines that they need. Getting through 2026 where we see no supply or very little supply, especially in multi-family in 2027, they need that bridge to get there, and that's where a lot of the activity is. Where it breaks down is even when we're doing a bridge to bridge, everybody wants a cash neutral deal. From a volatility's perspective, from Iran and all this other stuff, it has not affected our business. We're still seeing a ton of business. What you're seeing in the market is you're seeing $20 billion of CLO. That's all bridge paper. You're seeing SASB, large-scale industrial securitizations from big owners like the Blackstone of the world who probably represent the vast majority of the SASB CMBS market. What you're not seeing is fixed rate conduit loans. That market is the lag in the securitization market. You're seeing a huge amount of issuance in CLO for what I just said. Owners are coming to us saying, "Not ready for fixed. Rates are too high. Give me another bridge. Got it. That's benchmark vol. We've talked about there's a lot of concern about corporate credit. AI and software and SaaSpocalypse and things of that nature. You just talked about capital markets. CRE CLOs, CMBS market has been strong. Talk about capital markets for commercial real estate in conjunction with that fear, if you will. The capital markets have been excellent. A robust supply of, as I said, CLO paper was very well-absorbed. Spreads generally tightened through that issuance process, which is good. We just had one deal back up five basis points, but I think it was mostly collateral driven. Spreads have been resilient. The banks have been wonderful in the sense that they have had zero loss experience in warehouse lending, and they have a very low risk-weighted capital against warehouse lines versus making loans directly. The banks have had a huge appetite for more warehouse lending with us. Those spreads have been coming in commensurately. At the end of the day, while you've seen some stuff going on in the corporate term loan market, you haven't seen that affect spreads in CRE capital markets or with banks. Banks now have more capital than they had previously because the Basel III is not being fully implemented. You're reading more about that. Banks are getting more favorable treatment toward real estate. Wells Fargo has now got their balance sheet cap lifted, and so they're back in the market. There's a sort of voracious appetite in the capital markets for CRE. I think generally we feel like we're kind of in this seventh inning, having started with the interest rate bubble lending that went on in 2021, 2022, a lot of it to syndicators, which we all regret. We're all working out of that right now. I think that 2026, you'll probably see us really at the very, very tail end of what we're experiencing in terms of reset and valuations, where in the corporate market, we feel like that game is just kind of beginning. To piggyback on those two, bank activity from a financing perspective for BrightSpire has remained robust, if not better- in conjunction, despite rate vol and what's happened in corporate, right? Correct. Yeah. You're seeing more push into it to be supportive for your lending efforts. Yes. That back leverage that folks talk about. Correct. Okay. Well, that's a good thing. Let's talk about the lending market, generally speaking. What are you seeing on the ground? How is the market today? We've been saying this for a year. It's a lenders driven market. You've got a construction loan with us. It's past time. It was a delay. It's 30% leased. We're not doing the mini so go get another loan or sell the property. Lenders are pushing borrowers. Just at BrightSpire this past quarter, we had four transactions that went off. We had two that were short sales, where we told the borrower, "Game's over. You're selling the property." And if we think they're operating the property well, and they can manage it through a sale, we let them do that. We had two short sales that occurred. We had two REO that we advertised that we're going to be selling this quarter. When I say lender driven, we have four transactions just on our balance sheet this quarter that were driven by us. When we take back a property, it's because we think that that borrower could actually create more devaluation of that asset in a very short period of time, especially with multifamily, and we just say, "Just hand back the keys. You're not paying your vendors. The grass is brown, the garbage is piling up. We're not going to do a short sale with you. We need to do some TLC on the property. We'll take it back, and we'll sell it." Either way, whether it's foreclosure or asset sales, the lenders are definitely behind the wheel. That is causing it to be a little bit of a slower market. We'll get inquiry for a loan. Five of our competitors and us will quote the loan, maybe 10. You don't hear back. What is that borrower doing? That borrower's checking with their existing lender saying, "Okay, I went to the market. You told me to go to the market. Here's what I got. What will you give me?" The lender will say, "We want a pay down, and we'll give you this much runway." That owner is balancing between what their current lender will give them and what the market will give them. That's taking 30 more, 45 more days to make a decision at the borrower level. Things are slow, but that has been building up for quite a while. I think through the course of 2026, you're going to see more stuff coming out as we're seeing it in Texas. Quite frankly, we've had situations where we're selling properties and we go for a second round of bids, and the second round sometimes could be lower. What does that tell you? It tells you that that buyer pool is seeing a lot of assets coming to market, and they're not worried if they miss this one because there are 10 more coming. We think a lot of supply, especially in multifamily, is coming, and that is, as I said, the phrase I would use, lender driven. You just gave some examples from a BRSP perspective, right? Obviously, other lenders are theoretically doing the same thing, which to kind of synthesize that then is also creating opportunities in a reset basis. Exactly. Right? For you guys on the opportunistic side, offensive side. Yes Has that accelerated recently? Is it just kind of a constant churn in the context of what you're seeing from out of a pipeline opportunistic perspective? Yeah, I would say to highlight what Mike was saying, when you look at our portfolio and our pipeline specifically, during the course of 2025, we saw about $86 billion worth of product across 2,000 transactions. Here in early 2026, first quarter, we saw about $30 billion worth of product across 650 transactions. I would say that you are seeing an increase in the flow of the product, and what you're seeing within that pipeline is a lot of refinance. If you look at just our last quarter statistics, 78% of the market was refinance. You are definitely seeing that lender-driven dynamic. W e're seeing a lot of multifamily. As we look at our pipeline, you're seeing about 60% of the opportunity set is multifamily, and then you're seeing a rather even split between office, hospitality, and industrial at about 10%, and then you've got other and retail in there. This is certainly a market phenomenon. If there are any questions from the audience, just raise your hand to interrupt. Go ahead. 60% of your financing activity is multi, but are you seeing anything in the marketplace overall that suggests markets turning around or green shoots, there's growth ahead in 2027? I think as multifamily investors, we've been waiting patiently for some indication that the market is going to turn around attractively, or are we going to be in this dead money phase forever? It was supposed to be survive in 2025, right? Now it's like, I don't know what it is now, but you got to get to 2027. Go ahead. I'm sorry, Andy. No, not at all. When I said we're seeing about 60%, that's on the pipeline side of what we're doing. We've done about $1.5 billion since coming back into the market in late 2024. About 95% of that has been multifamily, and about a little over 50% of that has been acquisition financing. Generally speaking, our view is the fundamentals are setting up pretty well for multifamily. We still have a period here where we need to absorb a lot of supply, record supply in markets like Phoenix, Dallas, Austin. You saw a fair bit of supply in Las Vegas as well. We really need to work through that supply. What we're seeing right now is the operators really operating for occupancy, trying to keep their underlying tenants, really trying to skew towards quality. As absorption picks up, we expect to see rents to start to grow again. Obviously, we've seen negative rent growth in the markets I just highlighted. I think the setup is pretty attractive from the standpoint that there's not a lot of new supply coming into the market after this year, really. Now we'll see how that pipeline picks back up. In terms of what's scheduled, there's relatively little there, so we should start to see some upward rent pressure and better occupancies, a reduction in concessions, and that should move forward. You've got a lot of people right now who can't get into the home market because interest rates remain high, cost of building is high, so people are, for lack of a better term, they're sheltering in place. They're not moving the way you would see in a normalized market, locked in by historically low interest rates that they got during the post-COVID era. We think the demand for rental property is there and will continue to be there. One follow-up. Sure. Are the demand factors strong enough so that when the supply gets absorbed by the end of 2026 or early 2027, there will be a flood of new prospective renters or users? I think that's a market-by-market analysis. The markets that we've tried to focus on are high growth markets where there are clear demand drivers. What we're seeing in markets like Phoenix and Dallas is in-migration and real businesses moving in and bringing real and high-paying jobs. It really needs to be looked at from a market-to-market perspective. In other markets, you're seeing policies that are not favorable, increases in taxes driving folks out of particular cities or states, and it remains to be seen whether that demand will be there in those areas. I think the other concern we have is people are leaving the country. Those people, they live somewhere. That's affecting workforce housing. You speak to a leasing agent at a property, and they say, "Here are our income verification tests." At the end of the day, they're trying to get this place full, and if you had a syndicator running that property, that leasing agent is doing their best to get bodies in the units. They took a lot of chances. You saw bad debt escalate dramatically at workforce housing, 1980s type construction stuff in the Southwest. That stuff had a lot of bad debt associated with almost every property. That's being turned over right now. On the demand side, it's yet to be determined how that workforce housing gets affected. Right now, workforce housing, let me just say '80s type construction, multifamily Texas is trading on a per unit basis. It's not trading on a cap rate. It's trading between $75,000 and $95,000 a unit. Well, the income is this, and the occupancy went from here to here, and you know what? It's $85,000 a unit. That's it. Don't tell me a story. We're coming at a certain replacement cost valuation, and that's where that market is beginning to trade. There is some concern about the underbelly of demand dissipating a little bit because 3 million people have left the country. Jade class A outperforming class B and C or not? I think generally you'll start to see that flight to quality. We think that the '80s vintage multi-family really was driven. It became a bubble unto itself. In hindsight, if you look at it was really driven by a lot of fast money, a lot of syndication money, and this underlying dynamic where millions of people were coming into the country, and you saw rent growth of double digits sometimes back to back during COVID. That's not coming back. Those assets are going to take a little bit longer to lease up versus A quality assets. We are doing more, to address your question, Jade, our focus has been more 2010 and better in terms of age versus sub-2000. We have done some stuff '80s, '90s, and recently. We did some stuff with some syndicators who actually were very good during the cycle. Generally, we're trying to stick to newer properties, and you're seeing that with the stuff that's coming out of construction. Those are typically class B+, A type assets that we're getting that are new vintage and in lease-up. We like those because of the dynamic that Andy stated. People are loan-locked up in their homes. People can't afford new homes. Some of the stuff that is built to rent, horizontal multi-family, we like that a lot because it's an alternative for housing. It's a three-bedroom with a small backyard. I could park my car in front, and that we think that's a great product for this market. There's been overbuilding in that, especially in Arizona, but that's a market that we like right now a lot. Can you talk about, so Andy, you said the loan book's about $2.7 today. You have a goal of $3.5, I think, by the end of 2026, right? Just piggybacking on the dialogue right now is why don't you outline where you guys are making loan terms, average loan terms, sizing. I know things are subject to change, and you can do bigger loans, et cetera, but where your attachment points are, et cetera, as you're looking to grow the loan book from today through the course of the year into 2027. I think that would be helpful just in the dynamic of framing the dynamic market that is multi-family right now. Sure. I think from our perspective, obviously, we're trying to grow our loan book on a net basis. I think what you're going to see is more of the same in terms of what we're doing. We've been focused in the middle market. Our average loan balance has been in that $30 million range, on the small side $20 million, on the larger side $70 million. Right now, the multi-family market is really centered around 250 basis points over, so that moves with market, asset quality, sponsorship. We also would love to get more exposure to industrial. That's something we've always had a view towards doing. It's a challenging market in the transitional space because there's not much of that product that fits for our particular strategy, and you run up against a fair bit of binary risk where major tenants are moving out. That's something that we've tried to avoid. We're really focused on continuing to do what we're doing, continuing to build the book. Anything else you wanted to? No. I was thinking average LTVs, things of that nature, attachment points. Sure. In terms of LTVs, we're really playing a little bit north of the banks in that 70% LTV type area, and that's where our capital is the most competitive. We're not trying to take proceeds up to the max. We're trying to find a sweet spot in that 70%-75% LTV range, and that's generally where we've been more focused. Our view is we'd probably rather take a few less basis points than push leverage levels. Got it. We've got about seven minutes, so let's talk about the current book. We've been talking about the growth aspect. BrightSpire began playing offense again seven quarters ago. give or take. In conjunction with that, made a more accelerated push to resolve any issues that you saw in the book, whether it was a watchlist loan, REO, et cetera. Can you guys talk about the decision to make that accelerated push, where we are in that process? I think it's important to talk about because as you're able to resolve these assets, you get capital back to make new loans, push return on equity, things of that nature. I think it's important to talk about. You guys have great disclosure around it. For anybody in the room, check out their quarterly decks. This market doesn't reward you to hold on to REO. It wants you to repatriate capital and do what you're supposed to do. We own two assets here in Long Island City that we foreclosed on that were manufacturing turned into creative office space during COVID. Which is a great idea during COVID, right? Actually, before COVID, it was done. They were done in 2018, 2019. We foreclosed on them, held onto them for two years, it was crickets. We pretty much sold them at the same price that we could have gotten two years ago. I think that's an example of you're really taking a lot of chances on the balance sheet. You really have to look at your cost of capital, what that capital could do elsewhere, and that's the decision that we made. That holding onto these properties because you feel like you're selling something at $100 a foot, right? That's really painful. The profile of the buyer that we sold to both of our assets in Long Island City, these were quintessential Long Island City real estate dudes who that's where they wake up every morning for 30 years, and they focused on 30 blocks all their life, and they just sat there and waited with their catcher's mitts on to say, "You're going to sell to me eventually. Yeah. It's killing you to let go of an asset at $100 a foot, especially one of them where the conversion was done incredibly well to office. You have to just bite the bullet and say, "This is not what we do. This person who's been doing this for 30 years in that market, that's what they do. If they lease that building up and they have a tenant in their pocket, that's what they do. We're not finding that." I think we decided to really pivot, and I'll give credit where it's due. One of our brethren in the market, TRTX, did a very good job at saying, "Let's get out early, let's take some heat, and let's turn the boat around." They're probably about a year ahead of us, I'd say. Maybe nine months, a year. We looked at that and said that by example, we need to do that, and that's what we started. We have a lot of capital tied up in REO right now, which will give us the earnings power to get to $3.5 billion by the end of the year, and maybe in excess of $4 billion, $4.25 billion by mid-year next year. To that point, can you talk about kind of obviously market dynamic, things of that nature, but from a leverage perspective, balance sheet perspective, what you have today, the ability to kind of get to that $4 billion-ish level as that capital turns? Yeah. Just when you go through the REO we have right now, which a lot of it is under-leveraged. We own one large hotel asset in San Jose that we've been talking about for way too long. I'm exhausting shareholders with this one. It's a market that's turning around. It's in a trough. We've got very little leverage against that. Mid $20 million leveraging against an NAV asset that's $140 million or $255,000 a key for a newly FF&E'd hotel in San Jose. We have assets that are completely unencumbered. Really all that earnings power is in the watch list and in the REO assets that we need to turn around to get us to that additional call it billion and a quarter of loan book. To be clear, some of that is in process now. Yes. At least per disclosure from. Yes one Q, right? Yes. Yeah. Any comment or just-? We also have some triple net. Everyone knows we own $300 million of Albertsons triple net equity. It's an equity book. It's got $200 million of leverage on it. That debt comes due in 2028. That debt has a 477 coupon on it, which is like, I don't know, 25 basis points over the 10-year Treasury. I don't think we're going to get that spread again today. That's something that we may look at to say, "Okay, we have a refinancing." We basically have a long duration asset, and we're hedged for two years until 2028. We may do something with that that's $100 million of equity. That earns an 11%, but it's something that we may look at doing something with. Opportunistically. Got it. Any other questions from the audience while we've got a minute or two? Okay. That was the end of my question list. Do you guys have any kind of final comments you want to wrap up with the last minute or so? You're looking at a management team that's long a lot of equity. We get paid in a lot of equity. Stock price is at in the $5.60s. Book whatever you want to call it, book set in the got an $8 handle. You can do your own math on a mark to market and figure out on the back of the envelope what you think, but there's a pretty big gap between that and I think whatever math you come up with. We think the stock is undervalued, and we're looking to try to cover that dividend. We've been saying that on every earnings call. We're shy just a couple of cents of the $0.16 a quarter that we're looking to cover. Other guys who've cut their dividend were off by 40%, and had big cuts. We saw that with some of our brethren, KKR, Franklin BSP Realty Trust did it after acquiring NewPoint. We're just a couple of cents away, and we're going to slug it out and turn over the REO and turn over the watch list until we get to the $0.16 and better. Got it. Thank you, guys. Thank you. Thank you.