BrightSpire Capital, Inc. (NYSE:BRSP) Q1 2024 Earnings Call Transcript

Mike Mazzei: There’s willingness on all sides of the table to do that. And the willingness is really where it makes sense. There’s only so much and so far we can go. If a borrower is showing that they’re really focused on the asset, they’re the best operator for that asset and they’re putting some level of skin back in the game then there’s a willingness to absolutely work with those borrowers. We’re not here to pull the rug out from folks. We’re really committed to the assets and where we think they could do a better job at running them than we can or somebody else is just buying them and hitting a bid. So on both sides, there’s a willingness. If we think we’ve run out a rope and that’s really the watch list loans that got downgraded, we felt like that we’ve worked with those borrowers, the economic situation out there with the higher for longer environment is really weighing on those assets and we’re really questioning the ability to go forward with them.

And so that’s why we downgraded those loans.

Operator: Thank you. We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Michael Mazzei for closing remarks.

Mike Mazzei: Well, thank you for joining us today. And we look forward to seeing you in August. And before we go, we just want to give a shout out to Sarah Bacon, who was leading BTIG. She joined the sector just a short time ago, but in that short time, she made a big impact. We have a lot of respect to Sarah. We wish you luck in her new role. And again, thank you for joining us today, and we will see you in August.

Operator: Thank you. This does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.