Financial Performance - GAAP Net Income (Loss) was $(3.8) million, or $(0.11) per diluted common share and $(0.08) per fully converted share[9] - Distributable Earnings were $32.4 million, or $0.31 per fully converted share[9] - 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] - GAAP and Distributable Earnings dividend coverage were (22%) and 87%, respectively[9] - Book value per share, fully converted, was $15.27, compared to $15.68 last quarter[9] Capitalization and Liquidity - Net debt to equity was 2.7x, while recourse net debt to equity was 0.6x[9] - 80% of financing sources are non-mark-to-market on the core book[9, 13] - Liquidity was $0.7 billion, including $95 million in cash and $31 million in CLO reinvestment available[9] Portfolio and Investment Activity - The core portfolio's principal balance increased by $195 million during the quarter[9] - $622 million of new loan commitments were closed, and $615 million of principal balance was funded, including future funding on existing loans[9] - Loan repayments of $240 million were received[9] - Year-to-date, $1.2 billion of new loan commitments were originated, and $1.0 billion of principal balance on new loans was funded[9] - The core portfolio consists of 153 CRE loans with a $5.4 billion principal balance, averaging $36 million in size, with 74% in multifamily properties[9]

Company Performance - Franklin BSP (FBRT) reported quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.41 per share, and down from $0.66 per share a year ago, representing an earnings surprise of -24.39% [1] - The company posted revenues of $50.89 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 8.32%, and down from $84.03 million year-over-year [2] - Over the last four quarters, Franklin BSP has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Market Comparison - Franklin BSP shares have increased approximately 3.7% since the beginning of the year, while the S&P 500 has gained 14% [3] - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $56 million, and for the current fiscal year, it is $1.66 on revenues of $221.8 million [7] Industry Outlook - The REIT and Equity Trust industry, to which Franklin BSP belongs, is currently in the top 33% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can significantly impact stock performance [5][8]

Financial Performance - The book value per share decreased to $15.18 as of June 30, 2024, down from $15.71 as of December 31, 2023[116]. - The fully-converted book value per share was $15.27 as of June 30, 2024, down from $15.77 as of December 31, 2023[117]. - Net interest income for Q2 2024 was $133.5 million, a decrease of $19.3 million from $152.9 million in Q2 2023, primarily due to an increase in non-accrual loans totaling $225.4 million[144]. - Interest income for the six months ended June 30, 2024 was $264.1 million, down from $283.4 million in 2023, a decrease of $19.3 million due to loans placed on non-accrual status[155]. - Distributable Earnings for the six months ended June 30, 2024, were $73,399 million, down from $108,259 million in 2023, representing a decrease of approximately 32.3%[199]. - The company reported a ROE of (2.0)% for GAAP Net Income/(Loss) in Q2 2024, compared to 9.8% in Q2 2023[199]. - Distributable Earnings Per Share, Fully Converted, was $0.31 for Q2 2024, down from $0.66 in Q2 2023, a decline of approximately 53%[199]. Loan Portfolio - As of June 30, 2024, the total carrying value of commercial mortgage loans held for investment was $5,347.4 million, an increase from $4,989.8 million as of December 31, 2023[122]. - The company had 153 commercial mortgage loans held for investment as of June 30, 2024, up from 144 as of December 31, 2023[122]. - The weighted average coupon for commercial mortgage loans held for investment was 9.0% as of June 30, 2024, compared to 9.2% as of December 31, 2023[122]. - The company had 25 properties classified as real estate owned, held for sale, with combined carrying values of $271.3 million as of June 30, 2024, compared to $103.7 million as of December 31, 2023[122]. - The company held 153 commercial mortgage loans for investment and four commercial mortgage loans held for sale as of June 30, 2024, compared to 156 and one, respectively, in the previous year[144]. - The total par value of loans is $5,438,885, with an amortized cost of $5,427,931[133]. - The effective yield across all loans is 9.00%[133]. - The average loan-to-value ratio is 63.4%[133]. - The majority of loans are in the multifamily sector, with significant amounts in Texas[133]. Debt and Financing - Senior Debt stands at 52 million with an interest rate of Adj. 1M SOFR Term + 2.88%[1]. - The company reported a total par value of $1.2 billion across various senior debt instruments, with an average interest rate of approximately 3.5%[132]. - The company has a senior debt ratio of 8.45% and a debt service coverage ratio of 73.3%[1]. - The adjusted debt service coverage ratio improved to 8.33% with a coverage ratio of 74.8%[1]. - The company has extended the maturity dates for several loans, with the latest maturity set for 2028, enhancing liquidity[132]. - The company reported a loan-to-value (LTV) ratio of 44.0% for its commercial mortgage loans as of June 30, 2024[135]. - The net debt-to-equity ratio increased to 2.7x as of June 30, 2024, up from 2.3x at the end of 2023[176]. - Total leverage ratio rose to 2.8x as of June 30, 2024, compared to 2.5x at the end of 2023[176]. Real Estate and Investments - The company had $215.3 million in real estate securities available for sale as of June 30, 2024, down from $242.6 million as of December 31, 2023[122]. - The total fair value of real estate owned, held for investment, was $155.8 million as of June 30, 2024, including net real estate owned of $114.5 million and intangible lease assets of $41.3 million[136]. - Revenue from real estate owned for Q2 2024 was $4.1 million, down from $6.4 million in Q2 2023, a decrease of $2.3 million attributed to a one-time revenue catch-up in 2023[147]. - Revenue from real estate owned for the six months ended June 30, 2024 was $8.8 million, down from $9.8 million in 2023, a decrease of $1.0 million due to reduced rental revenue[157]. Credit Losses and Provisions - Provision for credit losses increased to $32.2 million in Q2 2024 from $21.6 million in Q2 2023, with specific provision rising to $33.0 million from $11.9 million[147]. - The company experienced a provision for credit losses of $32,178 million in Q2 2024, compared to $21,624 million in Q2 2023, indicating an increase of approximately 48.5%[199]. - General provision for credit losses was $2.1 million in the first half of 2024, significantly lower than $13.3 million in the same period of 2023[157]. Market and Economic Conditions - The company is exposed to significant credit risk due to potential loan defaults, which are influenced by various economic factors[200]. - The company faces capital market risks that may affect its ability to finance operations through debt instruments[201]. - The company is actively managing its interest rate exposure, with most loans linked to the 1M SOFR Term rate[132]. Dividends and Shareholder Returns - The company declared a Q2 2024 dividend of $0.355 per share on common stock, equivalent to $1.42 per annum[186]. - During the six months ended June 30, 2024, the company paid $58.9 million in common stock distributions, compared to $58.3 million in the same period of 2023[186]. - The company has a quarterly cash dividend of $0.355 per share of common stock, with a share repurchase program authorized for $65 million, of which $31.1 million remained available as of June 30, 2024[193].

Liquidity ($M) $1,038 $787 $11 $240 Unrestricted Total CLO Reinvestment Financing Liquidity Cash Available Available & In Progress(1) • 6 mezzanine loans; average UPB (2) of $5M Overview 426-Unit Apartment Core Portfolio – Risk Ratings B E N E F I T S T R E E T P A R T N E R S | A L C E N T R A 20 Appendix Appendix FBRT 1Q 2024 Financial Update Portfolio Overview Collateral by Region By State B E N E F I T S T R E E T P A R T N E R S | A L C E N T R A 15 B E N E F I T S T R E E T P A R T N E R S | A L C E N ...

Franklin BSP (FBRT) came out with quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.38%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.42 per share when it actually produced earnings of $0.39, delivering a surprise of -7.14%.Over the last four quar ...

Reported GAAP net income of $35.8 million for the three months ended March 31, 2024, compared to $30.0 million for the three months ended December 31, 2023. Reported diluted earnings per share ("EPS") to common stockholders of $0.35 for the three months ended March 31, 2024, compared to $0.28 for the three months ended December 31, 2023. Reported Distributable Earnings (a non-GAAP financial measure) of $41.0 million, or $0.41 per diluted common share on a fully converted basis , for the three months ended M ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-40923 FRANKLIN BSP REALTY TRUST, INC. (Exact name of registrant as specified in its charter) Maryland 46-1406086 (State or Other Jurisdiction of Incorporation or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to __________ Commission file number: 001-40923 FRANKLIN BSP REALTY TRUST, INC. (Exact name of registrant as specified in its charter) | Maryland | 46-14 ...

peeterv/iStock via Getty Images Franklin BSP Realty (NYSE:FBRT) like other mortgage REITs has been fighting the Fed for the last two years with a $5 billion commercial real estate loan portfolio spread across 144 loans as of the end of its recently reported fiscal 2023 fourth quarter. This portfolio is heavy on multifamily loans with a 77% allocation but is diversified across office, hospitality, and industrial properties amongst other property collateral. CRE angst describes deep market fears around a ...

Franklin BSP (FBRT) came out with quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.14%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.42 per share when it actually produced earnings of $0.43, delivering a surprise of 2.38%.Over the last four quart ...