Broadmark Realty Capital: Immediate Upside As Temporary Market Inefficiency Dissipates

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About: Broadmark Realty Capital Inc. (BRMK)
by: Prescience Point
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Summary

Market participants have overlooked BRMK, resulting in a meaningful discount to peers, despite having a higher-quality loan portfolio, stronger balance sheet, more robust growth prospects, and using no leverage.

Discount is unwarranted and primarily due to unfamiliarity with BRMK's business, minimal historical data available from financial data service providers, limited sell-side coverage, and misperception about its dividend yield.

The mispricing is rapidly disappearing but remains significant: Shares have +20% immediate upside with near double-digit dividend yield.

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Broadmark Realty Capital, Inc. (BRMK) offers immediate upside as a temporary market inefficiency dissipates. Market participants have