Financial Data and Key Metrics Changes - The company generated $0.37 in distributable earnings in Q4 2022, a 12% increase from the prior quarter, translating to a distributable earnings ROE of 9.2% [9][15] - The total commercial real estate portfolio ended the year at $5.3 billion in principal balance, with new loan commitments for the year totaling $2.3 billion at a weighted average spread of 462 basis points [4][16] - The company's cash and total liquidity stood at $179 million and $1 billion, respectively, providing a strong liquidity cushion [6][32] Business Line Data and Key Metrics Changes - The commercial real estate portfolio is predominantly multi-family, with 76% of loans allocated to this sector, which is expected to remain resilient [6][26] - The average risk rating of the portfolio increased slightly from 2.1 to 2.2, with two loans added to the watch list and three positions added to foreclosure REO [11][49] - The company executed $209 million in new loan commitments in Q4, with a total of $5.9 billion in total commitments by year-end, reflecting a 23% growth for the year [23] Market Data and Key Metrics Changes - The company noted a significant increase in deal flow for the first six weeks of the year compared to Q4, indicating a more favorable market environment [27] - The company has no international exposure and intends to maintain this stance, focusing on the Southeast and Southwest markets [48] Company Strategy and Development Direction - The company aims to take advantage of accretive new origination opportunities throughout the year, anticipating a more opportunistic origination environment as values adjust [13] - The company has a defensive posture entering 2023, with a focus on maintaining liquidity and being opportunistic in times of market dislocation [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the quality of the diversified portfolio and the ability to weather potential market storms due to high interest rates and a slowing economy [13] - The company is optimistic about the resolution of ongoing legal proceedings related to the Walgreens portfolio and the Brooklyn Hotel, which could provide positive outcomes in 2023 [28] Other Important Information - The company repurchased approximately $16.6 million of common stock in Q3 and Q4 2022, with over $48 million remaining on the buyback authorization [7][8] - The company has a conservative leverage position, with net leverage ending the quarter at 2.5x and recourse leverage at 0.68x [18] Q&A Session Summary Question: Will the portfolio remain static or grow in 2023? - Management indicated a potential for growth if the right credit and returns present themselves, while currently maintaining a defensive posture [29][37] Question: What is the impact of non-accrual loans on the portfolio? - Management noted that two loans on non-accrual total approximately $150 million, with potential upside as these positions are resolved [38][39] Question: What is the makeup of the forward pipeline? - The forward pipeline consists of a mix of repeat borrowers and new clients, reflecting a traditional middle market sponsorship structure [56] Question: How comfortable is the company with operating assets for an extended period? - Management stated they are comfortable operating assets for several years if necessary, depending on market conditions [58]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 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 O ...

FRANKLIN BSP REALTY TRUST | --- | --- | --- | --- | |-------|---------------------------|-------|-------| | | | | | | | | | | | | | | | | | Franklin BSP Realty Trust | | | | | | | | | | Supplemental Information | | | | | First Quarter 2022 | | | Important Information The information herein relates to the Company's business and financial information as of March 31, 2022 and does not reflect subsequent developments. Risk Factors Investing in and owning our common stock involves a high degree of risk. See the ...

Financial Data and Key Metrics Changes - The company reported distributable earnings of $40.1 million or $0.39 per share, representing a 9.3% return on equity (ROE) [5][12] - The fully converted book value declined from $1,725 at the end of Q4 to $1,650, primarily due to trading losses in the agency ARM portfolio [12][13] - The net leverage decreased to 2.95 times, with recourse leverage at 1.3 times, while leverage on the core book remained at 2.5 times [13] Business Line Data and Key Metrics Changes - The total core portfolio ended the quarter at $4.6 billion, with a well-diversified book and only one loan on the watch list [7][8] - The company reduced its residential ARMs exposure by $2.6 billion during the quarter, ending with a principal balance of $1.9 billion [9][10] - The company closed $603 million in loan commitments during the quarter, with a net portfolio growth of $319 million [14][15] Market Data and Key Metrics Changes - The company experienced significant trading losses of $88.4 million related to the ARMs portfolio, with a hedging gain of $30 million, resulting in a net effect of $58 million [18] - The market value of the ARMs portfolio decreased from $4.6 billion at year-end to $1.9 billion by the end of Q1 [17][18] Company Strategy and Development Direction - The company is transitioning from residential ARMs to commercial loans, aiming for higher earnings potential and lower volatility [10][11] - The company plans to continue its active issuance in the CLO market, having closed its largest deal to date at $1.2 billion [8][15] - The focus remains on high-quality, newer vintage MultiFamily assets while exploring opportunities in non-MultiFamily sectors [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transition from ARMs to commercial real estate, expecting to liquidate the ARMs portfolio ahead of schedule [10][11] - The company noted a slowdown in transactional activity in the MultiFamily sector due to rising interest rates, leading to negative leverage [26][22] - Management highlighted a strong credit culture with no credit losses on loans originated over the past 22 quarters [23] Other Important Information - The manager, Benefit Street Partners, has been actively buying shares, spending approximately $21 million to purchase about 1.5 million shares [11] - The company plans to initiate a $65 million stock purchase program once the current program is completed, aimed at supporting the stock price [41] Q&A Session Summary Question: Market reception to higher rates and MultiFamily assets - Management noted a slowdown in transactional activity in the MultiFamily sector, with buyers experiencing negative leverage [26] Question: Drawdown schedule for outstanding commitments - The projected funding range for future commitments is between $45 million to $75 million, depending on project execution [28] Question: Collateral mix of origination activity - The company is looking to diversify into non-MultiFamily assets, including industrial and retail, while maintaining a focus on credit quality [30] Question: Impact of stock purchase plans on balance sheet - The company plans to support the stock as long as it trades below book value, focusing on maintaining shareholder value [41]

Financial Performance - The book value per share decreased to $15.24 as of March 31, 2022, down from $16.75 as of December 31, 2021, reflecting a decline of about 9.0%[179] - The Company’s total stockholders' equity applicable to common stock was $677.9 million as of March 31, 2022, compared to $736.5 million as of December 31, 2021[179] - Interest income for Q1 2022 totaled $75.3 million, an increase of $33.1 million from $42.2 million in Q1 2021, driven by higher average carrying values of real estate debt and securities[215] - Net interest income for Q1 2022 was $52.8 million, compared to $30.9 million in Q1 2021, reflecting a significant increase in interest-earning assets[213] - Net interest income for the three months ended March 31, 2022, was $52.8 million, a decrease from $53.1 million for the three months ended December 31, 2021, reflecting a spread of 2.5% compared to 2.8%[218] - Distributable Earnings for the three months ended March 31, 2022, were $12.1 million, down from $26.6 million in the prior year[262] - Run-Rate Distributable Earnings for Q1 2022 were $40.1 million, compared to $26.6 million in Q1 2021[262] - The company reported a GAAP net income of $(22.5) million compared to $30.1 million for the same period in 2021[262] - The company reported a GAAP Common ROE of (7.2)% for Q1 2022, down from 11.8% in Q1 2021[262] Asset and Loan Portfolio - As of March 31, 2022, the total carrying value of commercial mortgage loans held for investment was $4,530.5 million, an increase from $4,211.1 million as of December 31, 2021, representing a growth of approximately 7.6%[182] - The value of the residential ARM Agency Securities portfolio decreased to $1.9 billion as of March 31, 2022, down from $4.6 billion as of December 31, 2021, indicating a reduction of approximately 58.7%[182] - The Company’s real estate securities, trading, measured at fair value, were valued at $1,949.3 million as of March 31, 2022, down from $4,566.9 million as of December 31, 2021[182] - The company held 166 commercial mortgage loans for investment and nine for sale, measured at fair value as of March 31, 2022[215] - The company has diversified its portfolio across various property types, including hospitality, multifamily, and office spaces[201] - The company has maintained a diversified loan portfolio across various property types, including office, multifamily, and hospitality[203] - The company has a significant focus on multifamily properties, with 70% of the total par value allocated to this sector[203] - The company has a significant focus on multifamily properties, with 30 out of 40 senior debts categorized under this type[206] Debt and Financing - Senior Debt 1 has a par value of $4.849 billion with an interest rate of 1 month LIBOR + 4.00% and an effective yield of 5.0%[201] - Senior Debt 2 has a par value of $57.075 billion with an interest rate of 1 month LIBOR + 5.19% and an effective yield of 6.2%[201] - The loan-to-value ratio for Senior Debt 1 is 77.0%, indicating a relatively high leverage[201] - The effective yield for Senior Debt 36 is 6.5% with a loan-to-value ratio of 87.4%, suggesting strong asset backing[201] - The effective yield on senior debt ranges from 3.0% to 9.5%, with an average yield of approximately 5.3%[203] - The loan-to-value (LTV) ratios for the senior debt portfolio vary, with the highest at 84.2% and the lowest at 53.9%[203] - The company is actively managing its debt portfolio, with a notable number of loans having LTV ratios above 70%[203] - The company expects to operate at a leverage level of between one to three times the book value of equity, with plans to use additional debt and equity financing as a source of capital[226] - The Company incurred $0.2 million of interest expense on a term loan with Sterling National Bank for the three months ended March 31, 2022, with an outstanding participation balance of $37.9 million[233] - The average interest rate on junior subordinated notes as of March 31, 2022, was 5.29%, with total borrowings outstanding of $98.62 million[233] Market and Investment Strategy - The company does not intend to continue investing in ARM Agency Securities or RMBS, focusing instead on reinvesting cash and proceeds into other segments[212] - Future outlook indicates a cautious approach to new debt issuance, focusing on maintaining favorable LTV ratios and effective yields[203] - The company is exploring opportunities for market expansion, particularly in the multifamily sector, to enhance its debt portfolio performance[203] - Future strategies may include further market expansion and potential acquisitions in the multifamily sector[206] Operational Expenses and Cash Flow - Total expenses from operations for Q1 2022 were $20.1 million, an increase from $11.9 million in Q1 2021, attributed to the Capstead acquisition and increased professional fees[215] - Net cash used in operating activities for Q1 2022 was $32.3 million, driven by a net loss of $22.5 million and net outflows of $74.2 million related to commercial mortgage loans[248] - Net cash provided by investing activities for Q1 2022 was $2,262.9 million, primarily from the sale of real estate securities totaling $2,190.1 million[248] - Net cash used in financing activities for Q1 2022 was $2,269.2 million, mainly due to net repayments on CMBS MRAs of $2,464.2 million[248] Shareholder Returns and Capital Management - The company declared a quarterly cash dividend of $0.355 per share on common stock and Series F Preferred Stock for Q1 2022, equivalent to $1.42 per annum[245] - The company's Board of Directors authorized a $65.0 million share repurchase program, effective after the completion of a $35.0 million program related to a merger[253] - The company raised $1.2 billion of capital through the issuance of BSPRT 2022-FL8 Issuer, Ltd. during the three months ended March 31, 2022[228] Risk Management - The company is exposed to credit risk, with default rates influenced by various economic factors, and manages this risk through careful underwriting[263] - The company must distribute at least 90% of its taxable income to maintain its REIT status, avoiding U.S. federal income tax on distributed income[250]

Franklin BSP Realty Trust, Inc. (NYSE:FBRT) Q4 2021 Earnings Conference Call February 24, 2022 10:00 AM ET Company Participants Lindsey Crabbe – Vice President of Investor Relations Richard Byrne – Chairman and CEO Jerry Baglien – Chief Financial Officer and Chief Operating Officer Mike Comparato – Head of Commercial Real Estate Conference Call Participants Steve DeLaney – JMP Securities Jason Stewart – Jones Trading Operator Good morning, and welcome to the Franklin BSP Realty Trust Fourth Quarter 2021 Ear ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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: 000-55188 FRANKLIN BSP REALTY TRUST, INC. (Exact name of registrant as specified in its charter) | --- | --- | --- | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-55188 FRANKLIN BSP REALTY TRUST, INC. (Exact name of registrant as specified in its charter) Maryland 46-1406086 (State or Other Jurisdiction of Incorporation ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-55188 BENEFIT STREET PARTNERS REALTY TRUST, INC. (Exact name of registrant as specified in its charter) Maryland 46-1406086 (State or Other Jurisdiction of Incorpo ...