Workflow
Franklin BSP Realty Trust(FBRT) - 2024 Q3 - Quarterly Results
FBRTFranklin BSP Realty Trust(FBRT)2024-11-04 21:38

Financial Performance - Reported GAAP net income of 30.2millionforQ32024,comparedtoalossof30.2 million for Q3 2024, compared to a loss of (3.8) million in Q2 2024[2] - Diluted earnings per share (EPS) of 0.30forQ32024,upfrom0.30 for Q3 2024, up from (0.11) in Q2 2024[2] - Net income attributable to Franklin BSP Realty Trust, Inc. for the three months ended September 30, 2024, was 31,614thousand,slightlydownfrom31,614 thousand, slightly down from 31,767 thousand in the prior year[13] - GAAP net income for the three months ended September 30, 2024, was 30.173million,adecreasefrom30.173 million, a decrease from 30.995 million in the same period of 2023[15] - Distributable earnings for the nine months ended September 30, 2024, were 69.438million,downfrom69.438 million, down from 150.247 million in 2023[15] - Distributable earnings per share, fully converted, was (0.10)forthethreemonthsendedSeptember30,2024,comparedto(0.10) for the three months ended September 30, 2024, compared to 0.43 in 2023[15] - The GAAP net income return on equity (ROE) for the three months ended September 30, 2024, was 7.9%, slightly up from 7.7% in 2023[15] Portfolio and Assets - Core portfolio principal balance of 5.2billionasofSeptember30,2024,with995.2 billion as of September 30, 2024, with 99% in senior mortgage loans and 95% floating rate[4] - Total assets increased to 6,334,976 thousand as of September 30, 2024, up from 5,955,180thousandasofDecember31,2023,representingagrowthofapproximately6.355,955,180 thousand as of December 31, 2023, representing a growth of approximately 6.35%[12] - Total liabilities increased to 4,720,994 thousand as of September 30, 2024, compared to 4,279,223thousandasofDecember31,2023,reflectinganincreaseofapproximately10.34,279,223 thousand as of December 31, 2023, reflecting an increase of approximately 10.3%[12] - Total stockholders' equity decreased to 1,524,234 thousand as of September 30, 2024, down from 1,586,209thousandasofDecember31,2023[12]RevenueandIncome−TotalincomeforthethreemonthsendedSeptember30,2024,was1,586,209 thousand as of December 31, 2023[12] Revenue and Income - Total income for the three months ended September 30, 2024, was 49,670 thousand, down 20.4% from 62,386thousandinthesameperiodlastyear[13]−NetinterestincomeforthethreemonthsendedSeptember30,2024,was62,386 thousand in the same period last year[13] - Net interest income for the three months ended September 30, 2024, was 44,258 thousand, a decrease of 25.1% compared to 59,069thousandforthesameperiodin2023[13]−RevenuefromrealestateownedforthethreemonthsendedSeptember30,2024,was59,069 thousand for the same period in 2023[13] - Revenue from real estate owned for the three months ended September 30, 2024, was 5,412 thousand, an increase of 63.4% from 3,317thousandinthesameperiodlastyear[13]ExpensesandLosses−Interestexpenseroseto3,317 thousand in the same period last year[13] Expenses and Losses - Interest expense rose to 89,884 thousand for the three months ended September 30, 2024, compared to 77,973thousandinthesameperiodof2023,markinganincreaseof15.577,973 thousand in the same period of 2023, marking an increase of 15.5%[13] - The company reported a provision for credit losses of 268 thousand for the three months ended September 30, 2024, compared to a benefit of (2,379)thousandinthesameperiodlastyear[13]−Recognizedanetbenefitforcreditlossesof(2,379) thousand in the same period last year[13] - Recognized a net benefit for credit losses of 0.3 million during the quarter[5] - The company recorded a realized cash loss adjustment on REO of (40.113)millionfortheninemonthsendedSeptember30,2024[15]−Unrealizedlossesonfinancialinstrumentsamountedto(40.113) million for the nine months ended September 30, 2024[15] - Unrealized losses on financial instruments amounted to 8.435 million for the nine months ended September 30, 2024, compared to 7.208millionin2023[15]LiquidityandDividends−Totalliquidityof7.208 million in 2023[15] Liquidity and Dividends - Total liquidity of 1.1 billion, including 346millionincashandcashequivalents[4]−Declaredacashdividendof346 million in cash and cash equivalents[4] - Declared a cash dividend of 0.355 per common share for Q3 2024, representing an annualized yield of 9.3% on book value[4] Transactions and Commitments - Closed 380millioninnewloancommitmentsinQ32024,totaling380 million in new loan commitments in Q3 2024, totaling 1.6 billion for the first three quarters of 2024[4] - Closed a 1.024billionmanagedCommercialRealEstateCLO,resultinginfinancingof1.024 billion managed Commercial Real Estate CLO, resulting in financing of 886.2 million[4] - Sold 16 of 21 retail properties in the Walgreens Portfolio for 60.9millionduringQ32024[5]OtherAdjustments−Thecompanyhas60.9 million during Q3 2024[5] Other Adjustments - The company has 11.9 million of GAAP loss adjustments that would run through distributable earnings if cash losses are realized[14] - The company amortized CLO issuance costs over the expected lifetime of the CLOs starting Q1 2024, making previous adjustments unnecessary[14] - The company recovered $5.1 million of loan workout charges during the second quarter of 2023[14]