The Adjusted DE beat consensus by ~8% and the watch list reduction is encouraging, but the dividend shortfall and declining book value keep the stock under pressure. Watch for Q2 2026 loan originations and watch list resolution progress; the buyback may provide a floor but coverage must improve to sustain sentiment.
Price Chart
Executive Summary
BRSP reported Q1 2026 Adjusted Distributable Earnings of $0.14/share, beating the $0.13 consensus by 7.7%, while GAAP net income declined to $4.8M ($0.03/share) from $5.3M a year ago. The company announced a $50M stock repurchase program and reduced watch list loans by ~39% year-to-date, but the $0.16 dividend remains uncovered by Adjusted DE. Book value per share fell to $7.05 (GAAP) and $8.24 (undepreciated) from $8.44 at year-end 2025.
Key Financial Metrics
Key Facts
- Q1 2026 Adjusted Distributable Earnings of $18.2M, or $0.14 per share, vs consensus $0.13 (beat by ~7.7%)
- GAAP net income attributable to common stockholders of $4.8M, or $0.03 per share, vs $5.3M in Q1 2025
- GAAP net book value per share declined to $7.05 from $7.30 at Dec 31, 2025; undepreciated book value per share fell to $8.24 from $8.44
- Quarterly dividend maintained at $0.16 per share, implying a 10.6% annualized yield; adjusted DE of $0.14 did not cover the dividend
- Board authorized a new $50M stock repurchase program through April 30, 2027
- Watch list loans reduced to $166M (6% of portfolio) from $220M (8%) at Q4 2025; CECL reserve stable at $87M ($0.67/share)
- Loan portfolio of $2.7B, 97% floating rate, W.A. unlevered yield 7.2%; REO assets increased to $336M from $315M due to foreclosure
- Total liquidity of $206M including $58M cash and undrawn $120M revolver; debt-to-equity ratio 2.4x
Financial Impact
Adjusted DE miss vs consensus would be bearish, but beat is slightly positive; dividend coverage remains a concern; book value erosion continues.
Risk Factors
- Dividend not covered by Adjusted DE ($0.14 vs $0.16) — may be cut if trend continues
- GAAP net income declining YoY and book value erosion (undepreciated BV down $0.20/sh)
- Elevated REO assets ($336M) and ongoing foreclosure/loan resolution uncertainty
- Interest rate sensitivity: SOFR decline reduces floating-rate loan income; net interest income could compress
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001717547-26-000038 |
| Document: brsp-20260428.htm | 0001717547-26-000038 |
| Document: brspq126earningsrelease0.htm | 0001717547-26-000038 |
| Document: 0001717547-26-000038-index-headers.html | 0001717547-26-000038 |
| Document: 0001717547-26-000038-index.html | 0001717547-26-000038 |
| Document: 0001717547-26-000038.txt | 0001717547-26-000038 |
| 8-K Data (Synthetic) | 0001717547-26-000038 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $3.65 | awaiting T+60 | — | $3.68 (+0.82%) |
Jul 28, 2026 12w ago | 8-K | $5.00 $3.65 | ▲ +27.00% | ▲ +31.73% | $3.68 (+26.40%) |
Jun 16, 2026 18w ago | 8-K | $5.45 $4.45 | ▼ −18.35% | ▼ −21.50% | $3.68 (−32.48%) |
May 20, 2026 22w ago | 8-K | $5.70 $4.86 | ▼ −14.74% | ▼ −19.04% | $3.68 (−35.44%) |
Apr 28, 2026 25w ago | 8-K | $5.80 $5.23 | ▼ −9.83% | ▼ −13.94% | $3.68 (−36.55%) |
Apr 1, 2026 29w ago | DEFA14A | $5.56 $5.48 | ▼ −1.44% | ▼ −14.82% | $3.68 (−33.81%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers