BrightSpire Capital, Inc.

Greetings and welcome to the Bryce Fire Capital Inc. Third Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce David Palame, General Counsel. Thank you, David. You may begin.

Good morning, and welcome to Brightspire Capital's third quarter 2023 earnings conference call. We will refer to Brightspire Capital as Brightspire, the RSP, or the company throughout this call. Speaking on the call today are the company's Chief Executive Officer, Mike Mazzei, President and Chief Operating Officer, Andy Witt, and Chief Financial Officer, Frank Saraceno. Before I hand the call over, please note that on this call, certain information presented contains forward-looking statements. These statements, which are based on management's current expectations, are subject to risks, uncertainties, and assumptions. Potential risks and uncertainties could cause the company's business and financial results to differ materially. For a discussion of risks that could affect results, please see the risk factors section of our most recent 10-K. and other risk factors and forward-looking statements in the company's current and periodic reports filed with the SEC from time to time. All information discussed on this call is as of today, October 31st, 2023, and the company does not intend and undertakes no duty to update for future events or circumstances. In addition, certain financial information presented on this call represents non-GAAP financial measures. The company's earnings release and supplemental presentation, which was released yesterday and is available on the company's website, presents reconciliations to the appropriate GAAP measures and an explanation of why the company believes such non-GAAP financial measures are useful to investors. Finally, during the call, management may refer to distributable earnings as DE. With that, I would now like to turn the call over to Mike.

Thank you, David. Welcome to our third quarter earnings call, and thank you for joining us this morning. I'll start by making some brief comments about the third quarter and then turn the call over to Andy. Everyone is well aware of the current geopolitical and economic issues. Therefore, I'll keep my macro remarks brief. Let's first turn to BRSP's results. For the third quarter, we reported gap debt income of $12.4 million, or $0.09 per share. Distributable earnings of $31 million or $0.24 per share and adjusted distributable earnings of $35.8 million or $0.28 per share. Our dividend coverage for the third quarter was 1.4 times. Our liquidity as of today stands at approximately $348 million. This is comprised of $183 million of current cash and $165 million under our credit facilities. During the quarter, our overall leverage stood at 1.9 times flat with the second quarter. Quarter over quarter, our underappreciated book value increased by 2 cents to $11.55, largely driven by the 1.4 times dividend coverage this quarter. Turning briefly to the financial markets, many believe the Fed is most likely done increasing the Fed funds rate. However, interest rates are becoming less anchored to the Fed's tightening policy and increasingly tied to U.S. fiscal policy. If you look at the term premiums associated with longer-dated Treasury yields, they are starting to become unhinged from the Fed's monetary policies. The U.S. Treasury market is now becoming more preoccupied with Washington's out-of-control deficit spending. This has led to the federal debt increasing by $600 billion in one month, bringing it to nearly $34 trillion. This deficit spending is another reason why inflation has been very difficult to tame. With the old long bond trading below a dollar price of 50, this will mark the first time that the U.S. Treasuries have had three consecutive years of losses. Today's Treasury bond issuance calendar is now larger than ever. Therefore, it makes sense that interest rates have been very volatile. The 10-year treasury yield has had intraday moves as much as 15 basis points and hit 5% just two weeks ago. Should that yield stick above 5%, that could be the threshold for a risk-off environment. Set against this context, BRSP will continue to proactively manage our loan portfolio and look to maintain our cash liquidity as we navigate through these circumstances. With that, I would now like to turn the call over to our president, Andy Witt. Andy?