BrightSpire Capital, Inc.

Good day and welcome to the Brightspire Capital, Inc., third quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to David Palame, General Counsel. Please go ahead.

Good morning and welcome to Brightspire Capital's third quarter 2026 earnings conference call. We will refer to Brightspire Capital as Brightspire, BRSP, or the company throughout this call. Speaking on the call today are the company's Chief Executive Officer, Mike Mazzei, President and Chief Operating Officer, Andy Witt, and Chief Financial Officer, Frank Saracino. Before I hand the call over, please note that on this call, certain information presented contains forward-looking statements. These statements, which are based on management's current expectations, are subject to risks, uncertainties and assumptions. Potential risks and uncertainties could cause the company's business and financial results to differ materially. For a discussion of the 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 28, 2026, and the company does not intend and undertakes no duty to update for future events or circumstances. In addition, certain financial information presented on this call represents non-GAAP financial measures. The company's earnings release and supplemental presentation, which was released yesterday afternoon and is available on the company's website presents reconciliations to the appropriate GAAP measures and an explanation of why the company believes such non-GAAP financial measures are useful to investors. Before I turn the call over to Mike, I will provide a brief recap on our results. The company reported third quarter GAAP net income attributable to common stockholders of $46.9 million, or 37 cents per share, distributable earnings of $10.3 million, or 8 cents per share, and adjusted distributable earnings of $17.8 million, or 14 cents per share. The company also reported GAAP net book value of $7.08 per share, and undepreciated book value of $7.87 per share as of September 30th, 2026. Finally, during this call, management may refer to distributable earnings as DE. With that, I would now like to turn the call over to Mike.

Thanks, David. And welcome to our third quarter 2026 earnings call. We are pleased with our performance this quarter, especially given the tremendous volatility in the capital markets. Despite that backdrop, we continue to execute across multiple areas of the business. Before turning to our third quarter activity, I would like to spend time on the capital markets. During the quarter and through today, we experienced significant volatility in the rates market. Marked a 25-year high and represented nearly a 100 basis point move since June 30th. The volatility then reversed direction with yields falling sharply back below 5% following a one-day 20 basis point rally last Friday. At the same time, the bond vigilantes were joined in a revolt by the credit market investors as spreads widened across corporate bonds, term loans, and structured products. Also, it is less typical for credit spreads to widen alongside rising interest rates. That dynamic reflects heightened concerns around the endless financing requirements of the hyperscalers. In addition, there are growing doubts regarding the return on investment for the trillions being spent on AI build-out. As a result, there is greater focus on the most vulnerable credits in the AI ecosystem. especially given the codependent nature of these counterparties. This is most evident in the yield levels where certain AI-related debt is currently trading. These dynamics have caused capital market investors to take pause and lean toward a more wait and see, risk-off posture. We have seen some of this bleed into the commercial real estate markets where investment sales transactions have been repriced or simply pulled from the market. On the CRE debt side, CLO AAAs and bank warehouse repo spreads widened about 10 to 15 basis points, prompting lenders to briefly tap the brakes as well. With that as context, valuations across the public commercial mortgage REIT sector have come under considerable pressure over the past several months, with Brightspire, along with our public peers, trading at deep discounts to book value. We have repurchased stock over the past several quarters, including approximately 2.1 million shares during the third quarter. We, of course, recognize that our stock presents an even more compelling opportunity at these current price levels. However, with public mortgage rates are trading today, reinforces the importance of maintaining market and lender confidence in the strength and durability of our balance sheet. Periods like this Thank you for joining us. and, in turn, a delay in reaching positive dividend coverage. However, we believe in maintaining balance sheet strength and liquidity is the right near-term priority given the current environment. Now, turning to the third quarter, let me highlight a few key developments. First, we had another solid quarter of originations, totaling $272 million. We continue to positively reshape the portfolio with smaller average loan sizes, Thank you for joining us. This sale was agreed to when the 10-year Treasury was at 4.42%. Given the subsequent moving rates, it proved a substantially more favorable result for Brightspire than when it was first announced. Importantly, it removed a risk of material ROE dilution at refinancing and was sold at only 2% below underappreciated book value. Third, we completed our fifth CLO, which was our second issuance this year. As a result, approximately two-thirds of our loan book is now in the form of non-recourse, non-mark-to-market CLO liabilities. Completing two CLOs this year is an important validation of our origination and financing capabilities. This recent CLO includes a $100 million ramp and a 30-month reinvestment window. These features allow us to continue to actively originate new loans while also preserving near-term liquidity. Furthermore, as a reminder, Bright Spire has avoided employing additional leverage in our capital base. Specifically, we have no preferred stock and no term loan. Taken together, our third quarter activity builds on the progress we've made year-to-date and demonstrates our continued ability to recycle capital, identify attractive lending opportunities, and thus improve the loan portfolio and strengthen the balance sheet. In closing, we made meaningful progress this quarter, continuing to execute despite a more challenging market environment. Looking ahead, our focus is on opportunistically deploying our CLO ramp and reinvestment capacity while maintaining momentum on watch lists and REO assets. As we pursue these priorities, we will continue to take our cues from the market. While the treasury market appears to have calmed over the past week, Andy Witt. Andy?