Franklin BSP (FBRT) came out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.33%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.34 per share when it actually produced earnings of $0.30, delivering a surprise of -11.76%.Over the last four quar ...

Investor Relations Contact: Lindsey Crabbe l.crabbe@benefitstreetpartners.com (214) 874-2339 Franklin BSP Realty Trust, Inc. Announces First Quarter 2025 Results New York City, NY – April 28, 2025 – Franklin BSP Realty Trust, Inc. (NYSE: FBRT) ("FBRT" or the "Company") today announced financial results for the quarter ended March 31, 2025. Reported GAAP net income of $23.7 million for the three months ended March 31, 2025, compared to $30.2 million for the three months ended December 31, 2024. Reported dilu ...

PART I - Financial Information [Consolidated Financial Statements and Notes (Unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20and%20Notes%20(unaudited)) This section presents the unaudited consolidated financial statements for Q1 2025, including balance sheets, statements of operations, cash flows, and related notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $5.65 billion from $6.00 billion, while total liabilities decreased to $4.06 billion from $4.39 billion, primarily due to changes in commercial mortgage loans and CLOs Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $215,368 | $184,443 | | Commercial mortgage loans, held for investment, net | $4,739,876 | $4,908,667 | | Real estate securities, available for sale, net | $167,192 | $202,973 | | Real estate owned, net | $112,499 | $113,160 | | **Total Assets** | **$5,654,051** | **$6,002,386** | | **Liabilities & Equity** | | | | Collateralized loan obligations | $3,226,710 | $3,628,270 | | Repurchase agreements and revolving credit facilities | $635,478 | $566,419 | | **Total Liabilities** | **$4,058,992** | **$4,392,581** | | **Total Equity** | **$1,505,311** | **$1,520,057** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Net income for Q1 2025 decreased to $23.7 million from $35.8 million in Q1 2024, driven by lower net interest income and higher total expenses Consolidated Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Interest Income | $43,315 | $49,240 | | Total Income | $50,112 | $53,952 | | Total Expenses | $30,340 | $20,626 | | Net Income | $23,705 | $35,827 | | Net Income Applicable to Common Stock | $17,310 | $29,172 | | Basic Earnings Per Share | $0.20 | $0.35 | | Diluted Earnings Per Share | $0.20 | $0.35 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to $116.2 million, while investing activities provided $286.9 million, leading to an overall cash increase of $27.2 million Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $116,238 | $12,970 | | Net cash provided by/(used in) investing activities | $286,943 | $(139,334) | | Net cash (used in)/provided by financing activities | $(375,941) | $30,799 | | **Net change in cash, cash equivalents and restricted cash** | **$27,240** | **$(95,565)** | [Note 3 - Commercial Mortgage Loans](index=13&type=section&id=Note%203%20-%20Commercial%20Mortgage%20Loans) The commercial mortgage loan portfolio decreased to $4.74 billion, with improved risk ratings and reduced allowance for credit losses Commercial Mortgage Loans, Held for Investment (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gross Carrying Value | $4,786,480 | $4,986,750 | | Allowance for Credit Losses | ($46,604) | ($78,083) | | **Net Carrying Value** | **$4,739,876** | **$4,908,667** | - The loan portfolio's collateral is primarily composed of **Multifamily (71.3%)** and **Hospitality (14.9%)** properties[50](index=50&type=chunk) - The weighted average risk rating of the loan portfolio improved to **2.2** as of March 31, 2025, from 2.3 at the end of 2024, with **79.9%** of the portfolio rated '2 - Low Risk'[64](index=64&type=chunk)[67](index=67&type=chunk) - Non-performing loans had an amortized cost of **$94.0 million** as of Q1 2025, down from $133.2 million at year-end 2024[63](index=63&type=chunk) [Note 7 - Debt](index=22&type=section&id=Note%207%20-%20Debt) Total debt included $3.23 billion in CLOs and various repurchase agreements, with CLO principal outstanding decreasing and the Barclays Repo Facility maturity extended Debt Summary (in thousands) | Debt Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Collateralized loan obligations | $3,226,710 | $3,628,270 | | Repurchase agreements - commercial mortgage loans | $429,314 | $329,811 | | Repurchase agreements - real estate securities | $206,164 | $236,608 | | Unsecured debt | $81,420 | $81,395 | - The company extended the maturity date of the **$500 million Barclays Repo Facility** to March 14, 2028[91](index=91&type=chunk) - The total principal balance of collateralized mortgage assets in the CLOs was **$4.15 billion** as of March 31, 2025, down from $4.49 billion at the end of 2024[98](index=98&type=chunk)[100](index=100&type=chunk) [Note 10 - Commitments and Contingencies](index=30&type=section&id=Note%2010%20-%20Commitments%20and%20Contingencies) Unfunded loan commitments increased to $380.6 million, and the company entered an agreement to acquire NewPoint Holdings JV LLC for $318.8 million cash and equity units - Unfunded loan commitments to borrowers totaled **$380.6 million** as of March 31, 2025[116](index=116&type=chunk) - The company entered into a definitive agreement to acquire NewPoint Holdings JV LLC for **$318.8 million** in cash and the issuance of **8,385,951 Class A Units** of its operating partnership[118](index=118&type=chunk) [Note 15 - Segment Reporting](index=39&type=section&id=Note%2015%20-%20Segment%20Reporting) The Real Estate Debt segment generated the majority of Q1 2025 net income at $26.6 million, while the Real Estate Owned segment recorded a net loss - The company conducts its business through four segments: Real Estate Debt, Real Estate Securities, Commercial Real Estate Conduit (TRS), and Real Estate Owned[164](index=164&type=chunk) Net Income/(Loss) by Segment (in thousands) | Segment | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Real Estate Debt and Other | $26,571 | $28,214 | | Real Estate Securities | $267 | $1,684 | | TRS | $2,840 | $4,232 | | Real Estate Owned | $(5,973) | $1,697 | | **Total Net Income** | **$23,705** | **$35,827** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, highlighting decreased net interest income, portfolio composition, $913 million in near-term liquidity, and a negative Distributable Earnings [Portfolio Overview](index=44&type=section&id=Portfolio) The portfolio's carrying value was primarily $4.74 billion in commercial mortgage loans, with a decrease in non-performing loans and continued concentration in multifamily and hospitality properties Portfolio Composition (Carrying Value, in millions) | Asset Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commercial mortgage loans, held for investment, net | $4,739.9 | $4,908.7 | | Commercial mortgage loans, held for sale | $5.0 | $87.3 | | Real estate securities, available for sale | $167.2 | $203.0 | | Real estate owned, held for investment | $112.5 | $113.2 | | Real estate owned, held for sale | $243.4 | $222.9 | - As of March 31, 2025, there were **three non-performing loans** with a total amortized cost of **$94.0 million**, down from $133.2 million at the end of 2024[184](index=184&type=chunk)[63](index=63&type=chunk) [Results of Operations](index=53&type=section&id=Results%20of%20Operations) Net interest income decreased to $43.3 million due to lower SOFR rates and a smaller portfolio, while total operating expenses increased due to acquisition-related fees and REO costs - Net interest income decreased by **$5.9 million** YoY, primarily due to a **~99 basis point decrease** in average SOFR rates and a **$177.9 million decrease** in the average balance of real estate debt[204](index=204&type=chunk)[205](index=205&type=chunk) - Total expenses from operations increased by **$9.7 million** YoY, driven by higher professional fees for the NewPoint acquisition and increased other expenses for the REO portfolio[221](index=221&type=chunk)[222](index=222&type=chunk) - A benefit for credit losses of **$1.9 million** was recorded in Q1 2025, compared to a provision of $2.9 million in Q1 2024, mainly due to portfolio turnover and a partial paydown on a non-performing loan[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk) - A loss on other real estate investments of **$2.2 million** was recognized in Q1 2025, primarily from the onboarding and sale of REO properties[217](index=217&type=chunk) [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) Near-term liquidity significantly increased to $913 million, driven by higher unrestricted cash and available financing, while the net debt-to-equity ratio improved to 2.4x Near-Term Liquidity (in millions) | Source | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unrestricted cash | $215 | $184 | | CLO reinvestment available | $34 | $12 | | Financings available & in progress | $664 | $339 | | **Total** | **$913** | **$535** | Leverage Ratios | Ratio | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net debt-to-equity ratio | 2.4x | 2.6x | | Total leverage ratio | 2.5x | 2.7x | - The board of directors declared a Q1 2025 dividend of **$0.355 per common share**, **$106.216 per Series H preferred share**, and **$0.46875 per Series E preferred share**[259](index=259&type=chunk) [Non-GAAP Financial Measures](index=68&type=section&id=Non-GAAP%20Financial%20Measures) The company reported a Distributable Earnings loss of $6.2 million for Q1 2025, primarily due to a $38.2 million realized loss adjustment on loans and REO Reconciliation of GAAP Net Income to Distributable Earnings (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | GAAP Net Income (Loss) | $23,705 | $35,827 | | Adjustments (Net) | $8,241 | $5,217 | | Distributable Earnings before realized loss | $31,946 | $41,044 | | Realized gain/(loss) adjustment on loans and REO | $(38,180) | $— | | **Distributable Earnings** | **$(6,234)** | **$41,044** | | **Distributable Earnings to Common** | **$(11,073)** | **$36,019** | Per Share Metrics (Fully Converted) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | GAAP net income/(loss) per share | $0.22 | $0.35 | | Distributable earnings per share | $(0.12) | $0.41 | [Quantitative and Qualitative Disclosures about Market Risk](index=70&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces credit, capital market, interest rate, and real estate risks, with interest rate fluctuations being the primary market risk impacting net interest income - The company faces significant credit risk, capital market risk, interest rate risk, and real estate risk[281](index=281&type=chunk)[282](index=282&type=chunk)[284](index=284&type=chunk)[287](index=287&type=chunk) Interest Rate Sensitivity Analysis | Change in Interest Rates | Estimated % Change in Net Interest Income (Mar 31, 2025) | | :--- | :--- | | (+) 50 Basis Points | 2.06% | | (-) 50 Basis Points | (1.36)% | | (-) 100 Basis Points | (0.88)% | [Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[288](index=288&type=chunk) - No material changes were made to the internal control over financial reporting during the quarter ended March 31, 2025[289](index=289&type=chunk) PART II - Other Information [Legal Proceedings](index=72&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation, including a loan fraud lawsuit related to foreclosed Walgreens properties, but management expects no material financial impact - The company is pursuing civil remedies in a loan fraud lawsuit related to a portfolio of **24 properties** net-leased to Walgreens, on which it has foreclosed[293](index=293&type=chunk) - Management believes that ongoing legal proceedings, in aggregate, will not have a material impact on the company's financial condition, operating results, or cash flows[292](index=292&type=chunk) [Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported for the quarter ended March 31, 2025 - No material changes to risk factors were reported for the quarter[294](index=294&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=72&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No common stock was repurchased in Q1 2025, and the company plans to issue 8,385,951 unregistered Class A Units for the NewPoint acquisition - No shares were repurchased in Q1 2025. The company has **$31.1 million** remaining under its authorized share repurchase program, which runs until December 31, 2025[108](index=108&type=chunk)[295](index=295&type=chunk) - As part of the NewPoint acquisition, the company will issue **8,385,951 unregistered Class A Units** of FBRT OP LLC, which are redeemable for cash or common stock after 12 months[297](index=297&type=chunk) [Other Information](index=73&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the first quarter of 2025[300](index=300&type=chunk) [Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the NewPoint acquisition agreement, CEO/CFO certifications, and XBRL data files - Key exhibits filed include the Purchase and Sale Agreement for NewPoint Holdings JV LLC, CEO/CFO certifications (Sections 302 and 906), and XBRL interactive data files[303](index=303&type=chunk)

Group 1 - The article discusses the perspective of an amateur value investor focused on finding bargains in emerging markets, influenced by renowned investors like Li Lu and Peter Lynch [1] - The investor emphasizes the importance of maintaining an investment journal to track past successes and learn from failures, adopting an owner-mindset while largely ignoring macroeconomic noise [1] - The investor's economic thinking is heavily influenced by the works of Henry Hazlitt, Friedrich Hayek, and Ludwig Von Mises, with a recent appreciation for the book 'Economics in One Lesson' [1] Group 2 - The article does not contain any disclosures regarding stock positions or plans to initiate positions in the mentioned companies [2] - It clarifies that the opinions expressed are personal and not influenced by any business relationships with the companies mentioned [2] - The article also notes that past performance is not indicative of future results and does not provide specific investment recommendations [3]

Investment Strategy - The company primarily focuses on originating, acquiring, and managing a diversified portfolio of commercial real estate debt investments, including first mortgage loans, subordinated mortgage loans, mezzanine loans, and participations in such loans [29]. - The investment objective is to provide common shareholders with attractive, risk-adjusted returns through stable dividends and capital growth [30]. - The company has four primary investment strategies, with the first being the origination and management of commercial real estate debt secured by properties located within and outside the United States [31]. - The company intends to utilize additional debt financing to enhance cash available for investment and improve returns, with careful use of leverage to achieve diversification goals [49]. - The company expects to generate additional revenues from equity participations related to the appreciation in value of underlying assets securing loans [39]. - The company may also invest in real estate securities, such as CMBS, CMBS bonds, and CDO notes, to diversify its investment portfolio [40]. - The company primarily invests in transitional loans, which carry a greater risk of loss compared to conventional mortgage loans [76]. - The company’s ability to generate returns depends on originating investments that exceed borrowing costs, which is influenced by market conditions [61]. Financial Performance - Interest income for the year ended December 31, 2024, totaled $526.1 million, a decrease of $26.4 million from $552.5 million in 2023, primarily due to a non-recurring item of $20.4 million recognized in 2023 and an increase in non-performing loans averaging $190.9 million in 2024 [218]. - Interest expense increased to $338.5 million for the year ended December 31, 2024, up by $32.9 million from $305.6 million in 2023, driven by a $429.6 million increase in the average carrying value of collateralized loan obligations [219]. - Revenue from real estate owned increased to $22.8 million in 2024, up $5.8 million from $17.0 million in 2023, mainly due to rental income from additional multifamily properties [220]. - Provision for credit losses for 2024 was $35.7 million, compared to $33.7 million in 2023, indicating a slight increase in credit risk [221]. - General benefit for credit losses decreased significantly to $0.3 million in 2024 from $21.4 million in 2023, attributed to portfolio turnover and a more favorable macro-economic outlook [222]. - Specific reserve increased by $36.0 million in 2024, primarily related to two non-performing loans secured by office properties in Colorado and Georgia [223]. - The company did not realize any gain or loss on extinguishment of debt for the year ended December 31, 2024, compared to a realized gain of $2.2 million in 2023 [224]. - Average leverage increased to 80.4% in 2024 from 77.7% in 2023, reflecting a higher level of debt relative to equity [1]. Regulatory and Tax Compliance - The company has elected to be taxed as a REIT and intends to continue qualifying as such, distributing at least 90% of its REIT taxable income to avoid U.S. federal income tax [50]. - The company must distribute at least 90% of its REIT taxable income annually to maintain its REIT status, which could limit funds available for investments [130]. - The IRS may challenge the tax treatment of mezzanine loans, which could jeopardize the Company’s REIT qualification [128]. - The company must comply with REIT requirements, which may limit its ability to hedge effectively and could lead to tax liabilities [137]. - Liquidation of assets to repay obligations could jeopardize the company's REIT qualification and result in a 100% prohibited transaction tax on gains [138]. Risk Factors - The company faces significant competition from various financial entities, which may impact investment volume and profit margins [52]. - Interest rate fluctuations could significantly influence the company's net income, with rising rates potentially decreasing net income and asset values [64]. - The company’s commercial real estate debt investments are subject to risks associated with ownership of commercial real estate, including potential defaults [71]. - Delays in liquidating defaulted commercial real estate debt investments could significantly reduce investment returns, with foreclosure processes potentially taking several years and incurring high costs [78]. - The company faces risks associated with subordinate commercial real estate debt, which may involve higher loss potential compared to first mortgage loans [80]. - Construction lending poses risks such as cost overruns and declining real estate values, which could lead to additional funding requirements and losses [81]. - Certain jurisdictions may limit the ability to foreclose on properties, impacting the company's ability to recover investments in case of borrower defaults [82]. - Insurance coverage may not be sufficient for catastrophic losses, potentially impairing the value of the company's assets [83]. - The company may face significant risks related to future funding obligations in its commercial real estate debt portfolio, including potential declines in property values and borrower cash flow issues [96]. Management and Operations - The advisor, Benefit Street Partners L.L.C., manages the company's affairs and is a credit-focused alternative asset management firm established in 2008 [28]. - The company has no employees as of December 31, 2024, relying on affiliates for essential services including asset acquisition and management [53]. - The Company has authorized a $65 million share repurchase program, with $31.1 million remaining available as of February 19, 2025 [184][185]. - The Company has engaged in regular internal and external security audits to mitigate cybersecurity risks [161]. - The Company maintains cybersecurity insurance to cover certain costs related to security failures and specified incidents [164]. - The Company has relationships with third-party service providers to assist with cybersecurity containment and remediation efforts [167]. - The Company has conducted mandatory cybersecurity training for new hires and current employees to enhance data privacy awareness [162]. Market Conditions - The company relies on collateralized debt and loan obligation securitization markets for long-term financing, which may not always be available [62]. - The company relies on the availability of attractive investment opportunities, with loans typically having a term of about 3 to 5 years, impacting operating results based on interest rates and market conditions [77]. - Public health crises, such as the COVID-19 pandemic, have adversely impacted the company's business and may continue to do so [143]. - Natural disasters and climate change could result in significant damage to properties securing the company's loans, adversely affecting its financial condition [151]. Shareholder Considerations - The Company’s charter restricts any person or entity from owning more than 7.9% of the outstanding shares, which may deter potential takeovers [119]. - Certain provisions of the Maryland General Corporation Law may inhibit third-party acquisition proposals, affecting stockholder opportunities for premium pricing [120]. - The Company has qualified as a REIT since the taxable year ended December 31, 2013, but there is no assurance it will maintain this status [126]. - Failure to qualify as a REIT could subject the Company to U.S. federal and state income tax at regular corporate rates, reducing net income available for distribution [127]. - The Advisor's fee structure may create incentives that do not align with optimizing returns for stockholders, potentially leading to riskier investment strategies [113].

The information herein relates to the Company's business and financial information as of December 31, 2024 and does not reflect subsequent developments. Risk Factors Franklin BSP Realty Trust Fourth Quarter 2024 Supplemental Information Important Information Investing in and owning our common stock involves a high degree of risk. See the section entitled "Risk Factors" in our Annual Report on Form 10-K filed with the SEC on February 26, 2024, and the risk disclosures in our subsequent periodic reports filed ...

分组1 - Franklin BSP (FBRT) reported quarterly earnings of $0.30 per share, missing the Zacks Consensus Estimate of $0.34 per share, and down from $0.39 per share a year ago, representing an earnings surprise of -11.76% [1] - The company posted revenues of $55.95 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 13.54%, compared to year-ago revenues of $54.76 million [2] - Over the last four quarters, Franklin BSP has not surpassed consensus EPS estimates, topping revenue estimates only once [2] 分组2 - The stock has added about 2.5% since the beginning of the year, while the S&P 500 has gained 2.9% [3] - The current consensus EPS estimate for the coming quarter is $0.37 on revenues of $51.32 million, and for the current fiscal year, it is $1.52 on revenues of $209.42 million [7] - The Zacks Industry Rank indicates that the REIT and Equity Trust sector is currently in the bottom 46% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8]

Financial Performance - Reported GAAP net income of $30.2 million for Q4 2024, compared to $30.0 million for Q4 2023, and $92.4 million for the full year 2024, down from $144.5 million in 2023[2] - Distributable Earnings of $31.2 million for Q4 2024, down from $39.3 million in Q4 2023, and $100.7 million for the full year 2024, compared to $189.5 million in 2023[3] - Net income attributable to Franklin BSP Realty Trust, Inc. for 2024 was $95.9 million, a decline of 34% compared to $145.2 million in 2023[31] - Distributable earnings for 2024 were $100.7 million, down 47% from $189.5 million in 2023[32] - Basic earnings per share for 2024 were $0.82, a decrease of 42.3% from $1.42 in 2023[31] - Total income decreased to $210.5 million in 2024, down 20.2% from $264.0 million in 2023[31] Asset and Liability Management - As of December 31, 2024, total assets increased to $6,002.4 million from $5,955.2 million in 2023, representing a growth of 0.8%[29] - Total liabilities increased to $4,392.6 million in 2024 from $4,279.2 million in 2023, reflecting a rise of 2.6%[29] - Cash and cash equivalents decreased to $184.4 million in 2024 from $337.6 million in 2023, a decline of 45.5%[29] Loan Activity - Core portfolio principal balance as of December 31, 2024, was $5.0 billion, with 99% in senior mortgage loans and 93% floating rate[5] - Closed $441 million of new loan commitments in Q4 2024 at a weighted average spread of 344 basis points[5] - Originated $2.0 billion in new loan commitments in 2024, with 52% of the book originated post Fed's interest rate hikes[6] - Received over $1.6 billion in loan payoffs and sold $159.5 million in REO assets in 2024[6] Dividend and Shareholder Returns - Declared a Q4 common stock cash dividend of $0.355, representing an annualized yield of 9.3% on book value[5] - Repurchased 391,863 shares of common stock at an average price of $12.42 per share, increasing book value by $0.02 per share[5] - The company maintained a preferred stock dividend of $26.99 million for both 2024 and 2023[32] Income and Interest - Net interest income for the year ended December 31, 2024, was $187.6 million, a decrease of 24% from $246.9 million in 2023[31] - The company reported a provision for credit losses of $35.7 million in 2024, compared to $33.7 million in 2023[32]

Core Viewpoint - The analysis of Franklin BSP Realty Trust (NYSE: FBRT) indicates that the firm's GAAP net income may not accurately reflect its core profitability [1]. Group 1 - The initial assessment of Franklin BSP Realty Trust was conducted on August 28, highlighting concerns regarding the representation of its financial performance [1].

Financial Performance - GAAP Net Income was $30.2 million, or $0.30 per diluted common share and fully converted share[9, 10] - Distributable Earnings were ($4.0) million, or ($0.10) per fully converted share, including $36.4 million of losses realized within the quarter[9, 10] - A cash dividend of $0.355 per share was declared, representing an annualized yield of 9.3% on book value per share, fully converted[9, 10] - GAAP dividend coverage was 85% and Distributable Earnings dividend coverage was (28%)[9, 10] Capitalization and Liquidity - Book value per share, fully converted, is $15.24, slightly down from $15.27 last quarter[9, 10] - Net debt to equity is 2.7x, while recourse net debt to equity is 0.1x[9, 14] - 93% of financing sources are non-mark-to-market on the core book[9, 14] - Liquidity stands at $1.1 billion, including $346 million in cash and $138 million available for CLO reinvestment/ramp[9, 17] Portfolio and Investments - Core Portfolio principal balance decreased by $274 million during the quarter[9, 13] - $380 million of new loan commitments were closed, and $325 million of principal balance was funded, including future funding on existing loans[9, 13] - Loan repayments totaled $510 million[9, 13] - The Core Portfolio consists of 157 CRE loans with a $5.2 billion principal balance, averaging $33 million in size, with 74% in multifamily properties[9, 18, 20]