Financial Performance - Interest income for Q3 2023 totaled $137.0 million, an increase of $42.9 million from $94.1 million in Q3 2022, primarily due to a 307 basis point increase in daily average SOFR rates [192]. - Interest expense for Q3 2023 was $78.0 million, up $31.8 million from $46.2 million in Q3 2022, driven by a similar increase in SOFR rates [195]. - Net interest income for Q3 2023 was $58.1 million, reflecting a spread of 3.1%, compared to $48.0 million and a spread of 2.6% in Q3 2022 [191]. - Interest income for the nine months ended September 30, 2023, was $420.5 million, an increase of $180.9 million compared to $239.6 million in 2022 [212]. - Interest expense for the nine months ended September 30, 2023, was $224.3 million, up $128.1 million from $96.3 million in 2022 [214]. - GAAP Net Income for Q3 2023 was $30,995,000, a decrease from $35,258,000 in Q3 2022 [291]. - Run-Rate Distributable Earnings for Q3 2023 increased to $46,672,000, up from $34,268,000 in Q3 2022, representing a 36.5% growth [291]. - Distributable Earnings for Q3 2023 were $41,988,000, compared to $34,423,000 in Q3 2022, reflecting a 21.5% increase [291]. Asset and Loan Portfolio - As of September 30, 2023, the total carrying value of commercial mortgage loans held for investment was $4,913.6 million, down from $5,228.9 million as of December 31, 2022, representing a decrease of approximately 6% [171]. - The weighted average coupon for commercial mortgage loans held for investment, excluding non-performing loans, was 9.1% as of September 30, 2023, up from 8.3% as of December 31, 2022 [174]. - The Company held 145 commercial mortgage loans for investment as of September 30, 2023, down from 166 loans in the previous year [192]. - The Company’s real estate owned, held for investment portfolio had a carrying value of $104.6 million as of September 30, 2023, down from $127.8 million as of December 31, 2022 [171]. - The Company’s total commercial mortgage loans held for sale had a fair value of $17.0 million as of September 30, 2023, compared to $15.6 million as of December 31, 2022 [171]. - The portfolio includes 50 senior debt loans, with a significant focus on multifamily properties, accounting for 40% of the total loans [182]. - The company has a significant focus on multifamily properties, with 75% of the senior debt allocated to this sector [183]. - The company has a significant focus on multifamily properties, with 70% of the loans categorized under this type, indicating a strong market presence in this sector [184]. Equity and Shareholder Information - The book value per share increased to $15.76 as of September 30, 2023, compared to $15.72 as of December 31, 2022, reflecting a growth of 0.25% [166]. - The total outstanding shares as of September 30, 2023, was 83,019,881, slightly up from 82,992,784 as of December 31, 2022 [166]. - The Company’s total stockholders' equity applicable to common stock was $1,308,172 thousand as of September 30, 2023, compared to $1,304,238 thousand as of December 31, 2022 [166]. - The Company declared a third quarter 2023 dividend of $0.355 per share on common stock, equivalent to $1.42 per annum [274]. - Total distributions paid in cash on common stock for the nine months ended September 30, 2023 amounted to $87.784 million, compared to $57.030 million in the same period of 2022 [275]. Debt Management - The net debt-to-equity ratio as of September 30, 2023, was 2.2x, down from 2.5x as of December 31, 2022 [255]. - The company is actively managing its debt portfolio, with adjustments based on the 1M SOFR Term rates [183]. - The company has extended maturities for most of its senior debt, with the majority maturing in 2026 [183]. - The company has extended maturities for several loans until 2028, indicating a long-term strategy for debt management [184]. - The Company has a share repurchase program authorized for $65.0 million, with $39.3 million remaining available as of September 30, 2023 [285]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2023 was $141.5 million, driven by net income of $114.5 million [276]. - Net cash provided by investing activities for the nine months ended September 30, 2023 was $554.8 million, primarily from the sale of real estate securities and principal repayments on commercial mortgage loans [277]. - Net cash used in financing activities for the nine months ended September 30, 2023 was $468.7 million, with significant repayments on real estate securities and unsecured debt [278]. - The total liquidity as of September 30, 2023, was $1.8 billion, compared to $1.0 billion as of December 31, 2022 [256]. - Unrestricted cash as of September 30, 2023, was $411 million, an increase from $179 million as of December 31, 2022 [256]. Market and Economic Risks - The company is exposed to credit risk, with default rates influenced by various factors including borrower financial condition and regional economics [292]. - The company faces capital market risk due to its requirement to distribute a significant portion of taxable income annually, impacting cash flow accumulation [293]. - Market uncertainty may lead to margin calls from lenders, affecting the company's ability to manage its financing obligations [294].

| --- | --- | --- | --- | |-------|---------------------------|-------|-------| | | | | | | | | | | | | Franklin BSP Realty Trust | | | | | Supplemental Information | | | | | Second Quarter 2023 | | | The information herein relates to the Company's business and financial information as of June 30, 2023 and does not reflect subsequent developments. 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 ...

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 June 30, 2023 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 ...

Franklin BSP Realty Trust, Inc. (NYSE:FBRT) Q1 2023 Earnings Conference Call May 4, 2023 9:30 AM ET Company Participants Lindsey Crabbe - Director, IR Richard Byrne - Chairman & CEO Jerome Baglien - CFO & COO Michael Comparato - President Conference Call Participants Matthew Erdner - JonesTrading Institutional Services Sarah Barcomb - BTIG Stephen Laws - Raymond James & Associates Steven Delaney - JMP Securities Matthew Howlett - B. Riley Securities Operator Good morning, and welcome to the Franklin BSP Rea ...

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, 2023 OR (State or Other Jurisdiction of Incorporation or Organization) 1345 Avenue of the Americas, Suite 32A New York, New York 10105 (Address of Principal Executive Office) (Zip Code) (212) 588-6770 (Registrant's Telephone Number, Including Area Code) ☐ TRANSITION REPORT PURSUANT TO SE ...

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, 2022 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 ...

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 ...