Franklin BSP Realty Trust(FBRT) - 2025 Q3 - Quarterly Results

Financial Performance - Reported GAAP net income of $17.6 million for Q3 2025, down from $24.4 million in Q2 2025, representing a decrease of 28.8%[2] - Distributable Earnings of $26.7 million, or $0.22 per diluted common share, compared to $29.0 million, or $0.27 per diluted common share in Q2 2025, reflecting a decrease of 7.9%[3] - Net income attributable to Franklin BSP Realty Trust, Inc. for the three months ended September 30, 2025, was $17,314, down from $31,614 in 2024, reflecting a decline of 45%[32] - Basic earnings per share for the three months ended September 30, 2025, was $0.12, compared to $0.30 for the same period in 2024, a decrease of 60%[32] - GAAP net income for Q3 2025 was $17,616,000, a decrease of 41.5% compared to $30,173,000 in Q3 2024[34] - The company reported a GAAP net income per share, diluted, of $0.12 for Q3 2025, down from $0.30 in Q3 2024[34] - Distributable Earnings for Q3 2025 were $26,701,000, compared to a loss of $3,959,000 in Q3 2024[34] - Distributable Earnings to Common for the nine months ended September 30, 2025, was $34,049,000, down from $54,681,000 in the same period of 2024[34] - The Distributable Earnings per share, fully converted, was $0.22 for Q3 2025, compared to $(0.10) in Q3 2024[34] - The company experienced a 6.1% return on equity (ROE) for Distributable Earnings in Q3 2025, compared to (2.6)% in Q3 2024[34] Revenue and Income Sources - Total income for the nine months ended September 30, 2025, was $193,924, an increase of 16.6% from $166,372 in the same period of 2024[32] - Net interest income for the three months ended September 30, 2025, was $29,675, a decrease of 33% compared to $44,258 for the same period in 2024[32] - The company reported a net interest expense of $76,492 for the three months ended September 30, 2025, down from $89,884 in 2024, a decrease of 15%[32] - Mortgage servicing rights generated revenue of $19,745 for the three months ended September 30, 2025, with no revenue reported in the same period of 2024[32] Assets and Liabilities - Total assets increased to $6,218,475, up from $6,002,386 as of December 31, 2024, representing a growth of approximately 3.6%[28] - Total liabilities increased to $4,562,706 as of September 30, 2025, from $4,392,581 as of December 31, 2024, marking a rise of approximately 3.9%[28] - Total stockholders' equity decreased to $1,472,184 as of September 30, 2025, down from $1,512,562 as of December 31, 2024, a decline of approximately 2.7%[28] Loan Commitments and Transactions - Closed $304.2 million of new loan commitments with a weighted average spread of 511 basis points during Q3 2025[6] - Originated $2.2 billion of new loan commitments under programs with Fannie Mae, Freddie Mac, and HUD, with a servicing portfolio of $47.3 billion as of September 30, 2025[5] - Closed an approximately $1.1 billion commercial real estate mortgage securitization transaction on October 15, 2025[11] Other Financial Metrics - Declared a common stock cash dividend of $0.355, representing an annualized yield of 10.0% on book value[6] - Acquired NewPoint Holdings for $425 million, with integration progressing well[4] - Recognized a benefit for credit losses of $0.6 million, including a $1.5 million general allowance benefit[9] - The allowance for loss sharing increased to $22,555 as of September 30, 2025, compared to no allowance as of December 31, 2024[28] - Unrealized losses on financial instruments amounted to $1,888,000 in Q3 2025, compared to $2,486,000 in Q3 2024[34] - Non-cash compensation expense increased to $5,185,000 in Q3 2025 from $2,134,000 in Q3 2024[34] - The average common stock and common stock equivalents were 1,385,374 shares in Q3 2025, compared to 1,349,076 shares in Q3 2024[34] - The company recorded a realized loss adjustment on loans and REO of $(1,656,000) in Q3 2025, compared to $(36,433,000) in Q3 2024[34]