We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Broadmark Realty Capital Inc | NYSE:BRMK | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 4.82 | 0 | 01:00:00 |
Broadmark Realty Capital Inc. (NYSE: BRMK) (the “Company”), an internally managed secured real estate finance company, today announced operating results for the quarter and year ended December 31, 2022.
Fourth Quarter 2022 Financial Highlights
Full Year 2022 Financial and Loan Portfolio Highlights
Loan Default and REO Updates
Balance Sheet Activity and Liquidity
At December 31, 2022, the Company had cash and cash equivalents of $55.0 million and a $135.0 million undrawn credit facility, or $190.0 million in total liquidity, with $452.7 million of unfunded loan commitments on balance sheet, of which $22.8 million relate to capital expenditures on loans in default which the Company is not contractually obligated to fund.
Dividend
On January 15, 2023, the Company’s Board of Directors declared a cash dividend of $0.035 per common share payable on February 15, 2023 to stockholders of record as of January 31, 2023, and on February 15, 2023, the Board of Directors declared a cash dividend of $0.035 per common share payable on March 15, 2023 to stockholders of record as of February 28, 2023.
Additional Information
The Company has posted supplemental financial information to provide additional disclosure on its website at www.broadmark.com. These materials can be found on the Investors section of the website under the “Financials” tab.
Conference Call and Webcast Information
The Company will not host a conference call or webcast due to today’s announcement regarding the pending merger with Ready Capital (NYSE: RC).
Forward Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Forward-looking statements reflect the Company’s current views with respect to, among other things, capital resources, portfolio performance and projected results of operations. In some cases, you can identify these forward-looking statements by the use of terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words or phrases. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their respective dates.
These forward-looking statements are based largely on the Company’s current beliefs, assumptions and expectations concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that it has anticipated. Factors that may cause actual results to vary from the Company’s forward-looking statements include, but are not limited to:
Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
The Company uses its website and social media channels as channels of distribution of Company information. The information that the Company posts through these channels may be deemed material. Accordingly, the Company encourages investors and others interested in the Company to routinely monitor these channels, in addition to following the Company’s press releases, Securities and Exchange Commission filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about the Company when you enroll your email address by visiting the “Email Alerts” section of the Company’s website at https://ir.broadmark.com/investor-resources/investor-email-alerts/default.aspx. The contents of the Company’s website and social media channels are not, however, incorporated by reference into this press release.
About Broadmark Realty Capital
Broadmark is a specialty real estate finance company, providing financing solutions generally in the $2 to $75 million range per transaction. The Company provides smart, reliable, rapid solutions across the entire debt capital stack, including senior, subordinate, and participation investments with fixed and floating rate structures available. Broadmark invests in a variety of new construction and existing properties across all asset classes throughout the United States, including hotel, industrial, medical, mixed-use, office, retail, self-storage, warehouse, multifamily, senior living, student housing, condos, larger scaled single-family, townhome, and multiplex. It has the competitive advantage of being an internally managed balance sheet lender, and the Company’s proactive approach delivers dedicated in-house underwriting, asset management, loan servicing, and draw administration.
BROADMARK REALTY CAPITAL INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
December 31, 2022
December 31, 2021
Assets
Cash and cash equivalents
$
54,964
$
132,889
Mortgage notes receivable, net
881,950
901,350
Interest and fees receivable, net
14,775
17,526
Investment in real property held for sale, net
24,516
52,531
Investment in real property held for use, net
63,382
15,536
Right-of-use assets
5,609
6,016
Goodwill
—
136,965
Other assets
6,311
8,342
Total assets
$
1,051,507
$
1,271,155
Liabilities and stockholders' equity
Senior unsecured notes, net
$
97,789
$
97,223
Dividends payable
4,654
9,291
Accounts payable and accrued liabilities
13,489
8,180
Lease liabilities
7,522
7,993
Total liabilities
123,454
122,687
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued and outstanding at December 31, 2022 and December 31, 2021
—
—
Common stock, $0.001 par value, 500,000,000 shares authorized, 131,645,145 and 132,716,338 issued and outstanding at December 31, 2022 and December 31, 2021, respectively
131
132
Additional paid in capital
1,215,229
1,216,957
Accumulated deficit
(287,307
)
(68,621
)
Total stockholders' equity
928,053
1,148,468
Total liabilities and stockholders' equity
$
1,051,507
$
1,271,155
BROADMARK REALTY CAPITAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
Three Months Ended
Year Ended
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Revenues:
Interest income
$
16,483
$
23,476
$
83,410
$
89,957
Fee income
4,078
7,823
22,668
30,587
Total interest and fee income
20,561
31,299
106,078
120,544
Real property revenue from operations
510
—
2,799
—
Total revenues
21,071
31,299
108,877
$
120,544
Expenses:
Compensation and employee benefits
3,965
4,177
16,935
15,093
General and administrative
3,468
3,197
13,300
11,518
Real property operating expenses and depreciation
1,451
—
6,365
108
Interest expense
2,161
1,601
8,638
3,320
Total expenses
11,045
8,975
45,238
$
30,039
Impairment:
Provision for credit losses, net
21,537
806
38,266
6,179
Goodwill impairment
136,965
—
136,965
—
Total impairment
158,502
806
175,231
$
6,179
Other (expense) income:
Change in fair value of warrant liabilities
1,220
652
1,813
(1,838
)
Gain on sale of real property
—
—
984
—
Impairment on real property
(5,765
)
—
(7,596
)
—
Total other (expense) income
(4,545
)
652
(4,799
)
$
(1,838
)
Income (loss) before provision for income taxes
(153,021
)
22,170
(116,391
)
82,488
Income tax provision
—
—
—
—
Net income (loss)
$
(153,021
)
$
22,170
$
(116,391
)
$
82,488
Earnings per common share:
Basic
$
(1.15
)
$
0.17
$
(0.88
)
$
0.62
Diluted
$
(1.15
)
$
0.17
$
(0.88
)
$
0.62
Weighted-average shares of common stock outstanding, basic and diluted:
Basic
132,625,008
132,698,177
132,841,196
132,579,289
Diluted
132,625,008
132,784,274
132,841,196
132,666,502
BROADMARK REALTY CAPITAL INC.
RECONCILIATION OF NET INCOME TO DISTRIBUTABLE EARNINGS
(in thousands, except for per share amounts)
Definition of Distributable Earnings
The Company has elected to present “distributable earnings” and “distributable earnings prior to realized loss on investments”, supplemental non-GAAP financial measures used by management to evaluate the Company’s operating performance. The Company defines distributable earnings as net income attributable to common stockholders adjusted for: (i) impairment recorded on the Company’s loans, investments in real property and goodwill; (ii) unrealized gains or losses on the Company’s investments (including provision for credit losses) and warrant liabilities; (iii) new public company transition expenses; (iv) non-capitalized transaction-related and other one-time expenses; (v) non-cash stock-based compensation; (vi) depreciation and amortization including amortization of the Company’s intangible assets; and (vii) deferred taxes, which are subject to variability and generally not indicative of future economic performance or representative of current operations.
During the years ended December 31, 2022 and 2021, provision for credit losses, net was $38.3 and $6.2 million, respectively, which has been excluded from distributable earnings consistent with other unrealized gains (losses) pursuant to the Company’s policy for reporting distributable earnings. The Company expects to recognize such potential credit losses in distributable earnings if and when such amounts are deemed nonrecoverable upon a realization event. This is generally upon charge-off of principal at the time of loan repayment or upon sale of real property owned by the Company and the amount of proceeds is less than the principal outstanding at the time of foreclosure.
Management believes that the adjustments to compute “distributable earnings” specified above allow investors and analysts to readily identify and track the operating performance of the Company’s assets, assist in comparing the operating results between periods, and enable investors to evaluate the Company’s current performance using the same measure that management uses to operate the business. Distributable earnings excludes certain recurring items, such as unrealized gains and losses (including provision for credit losses) and non-capitalized transaction-related expenses, because they are not considered by management to be part of the Company’s primary operations for the reasons described herein. However, management has elected to also present distributable earnings prior to realized loss on investments because it believes the Company’s investors use such measure to evaluate and compare the performance of the Company and its peers. As such, distributable earnings and distributable earnings prior to realized loss on investments are not intended to reflect all of the Company’s activity and should be considered as only one of the factors used by management in assessing the Company’s performance, along with GAAP net income which is inclusive of all of the Company’s activities.
As a REIT, the Company is required to distribute annually to its stockholders at least 90% of its "REIT taxable income" (determined without regard to the dividends-paid deduction and excluding net capital gains) and to pay tax at regular corporate rates to the extent that it annually distributes less than 100% of such taxable income. Given these requirements and its belief that dividends are generally one of the principal reasons that stockholders invest in its common stock, the Company generally intends to attempt to pay dividends to its stockholders in an amount equal to its net taxable income, if and to the extent authorized by the Company’s board of directors. Distributable earnings and distributable earnings prior to realized loss on investments are one of many factors considered by the Company’s board of directors in declaring dividends and, while not direct measures of taxable income, over time, the measures can be considered useful indicators of the Company’s dividends.
Distributable earnings and distributable earnings prior to realized loss on investments do not represent, and should not be considered as a substitute for, or superior to, net income or as a substitute for, or superior to, cash flows from operating activities, each as determined in accordance with GAAP, and the Company’s calculation of these measures may not be comparable to similarly entitled measures reported by other companies.
The table below is a reconciliation of distributable earnings to the most directly comparable GAAP financial measure:
Three Months Ended
Year Ended
(dollars in thousands, except share and per share data)
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Net (loss) income attributable to common stockholders
$
(153,021
)
$
22,170
$
(116,391
)
$
82,488
Adjustments for non-distributable earnings:
Stock-based compensation expense
516
903
3,779
3,455
New public company expenses(1)
—
—
—
953
Non-capitalized transaction and other transition expenses(2)
1,163
498
3,229
987
Change in fair value of warrant liabilities
(1,220
)
(652
)
(1,813
)
1,838
Depreciation and amortization
562
164
1,314
741
Impairment on real property
5,765
—
7,596
—
Provision for credit losses, net
21,537
806
38,266
6,179
Goodwill impairment
136,965
—
136,965
—
Distributable earnings prior to realized loss on investments:
$
12,267
$
23,889
$
72,945
$
96,641
Realized credit losses(3)
—
(576
)
(4,207
)
(2,672
)
Distributable earnings:
$
12,267
$
23,313
$
68,738
$
93,969
Distributable earnings per diluted share of common stock prior to realized loss on investments
$
0.09
$
0.18
$
0.55
$
0.73
Distributable earnings per diluted share of common stock
$
0.09
$
0.18
$
0.52
$
0.71
Weighted-average number of shares of common stock outstanding, basic and diluted
Basic
132,625,008
132,698,177
132,841,196
132,579,289
Diluted
132,625,008
132,784,274
132,841,196
132,666,502
View source version on businesswire.com: https://www.businesswire.com/news/home/20230227005330/en/
Investor Relations InvestorRelations@broadmark.com 206-623-7782
Media Relations media@broadmark.com
1 Year Broadmark Realty Capital Chart |
1 Month Broadmark Realty Capital Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions