Franklin BSP Realty Trust(US:FBRT)2024-11-04 21:38Financial Performance - Reported GAAP net income of $30.2 million for Q3 2024, compared to a loss of $(3.8) million in Q2 2024[2] - Diluted earnings per share (EPS) of $0.30 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 $31,614 thousand, slightly down from $31,767 thousand in the prior year[13] - GAAP net income for the three months ended September 30, 2024, was $30.173 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 $69.438 million, down from $150.247 million in 2023[15] - Distributable earnings per share, fully converted, was $(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 $5.2 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 $5,955,180 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 $4,279,223 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 $1,586,209 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 $62,386 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 $59,069 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 $3,317 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 $77,973 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) 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) 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 $7.208 million in 2023[15] Liquidity and Dividends - Total liquidity of $1.1 billion, including $346 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 $380 million in new loan commitments in Q3 2024, totaling $1.6 billion for the first three quarters of 2024[4] - Closed a $1.024 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 $60.9 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]