Summary of Franklin BSP Realty Trust (FBRT) FY Conference Call Company Overview - **Company Name**: Franklin BSP Realty Trust (FBRT) - **Ticker Symbol**: FBRT - **Type**: Commercial Mortgage REIT - **Public Since**: 2021 via a reverse merger with Capstead Mortgage - **External Manager**: Benefit Street Partners, owned by Franklin Templeton - **Assets Under Management (AUM)**: $90 billion, with $13 billion in commercial real estate [2][3] Financial Performance - **Core Portfolio Size**: $4.4 billion, aiming for a target of around $5 billion [4] - **Net Leverage**: Approximately 2.5 times as of September 30 [4] - **Dividend Yield**: Currently at 14%, significantly high compared to the book value [5][15] - **Stock Price**: Trading at about 70% of book value [5] Portfolio Composition - **Asset Focus**: 75% of the portfolio is in multifamily assets, with the remainder in hospitality and industrial [4][5] - **Geographic Focus**: Primarily in the Southwest, Southeast, and Sunbelt areas, with significant exposure to Texas and the Carolinas [6] - **Office Assets**: Only about 2% of the portfolio is in office assets, with no new loans originated in this category since 2020 [7] Recent Developments - **CLO Issuance**: Issued a $1.1 billion CLO to recapitalize and free up cash for reinvestment into the core loan portfolio [9] - **Acquisition of NewPoint**: Closed on July 1, 2025, acquiring agency licenses and a bridge loan portfolio, which is expected to enhance origination capabilities [10][11] - **NewPoint's Performance**: Achieved record agency originations of $2.1 billion in the latest quarter [10] - **Mortgage Servicing Rights (MSRs)**: Integration of MSRs expected to contribute to book value growth over time [12] Future Outlook - **Dividend Coverage**: Management is focused on achieving dividend coverage by the second half of 2026, with a path outlined for improvement [15][19] - **Earnings Growth**: Expected contributions from CLO issuance, REO asset management, and NewPoint integration to enhance earnings per share [16][18] - **REO Management**: Strategy to stabilize and sell multifamily REO assets rather than liquidating immediately, with expectations of adding 8-12 cents to earnings per share [17][18] Key Risks and Considerations - **Market Conditions**: The company is navigating a challenging environment with legacy portfolio issues but has maintained a focus on multifamily assets to mitigate risks [7] - **Interest Rate Impact**: Portfolio is divided between loans originated before and after interest rate hikes, with 40% of the portfolio in pre-hike loans [6] Conclusion Franklin BSP Realty Trust is strategically positioned within the commercial mortgage REIT sector, focusing on multifamily assets and leveraging recent acquisitions to enhance growth and dividend coverage. The company is actively managing its portfolio and capital structure to navigate current market challenges and capitalize on future opportunities.

Earnings Conference Call Q3 2025 Q3 2025 EARNINGS November 6, 2025 Important Notice Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predi ...

Financial Data and Key Metrics Changes - TRTX reported GAAP net income of $18.4 million, or $0.23 per common share, and distributable earnings of $19.9 million, or $0.25 per common share, covering the quarterly dividend of $0.24 per common share [13] - Book value per common share increased from $11.20 to $11.25 due to the share repurchase program and solid operating results [13] - Year-over-year, the loan portfolio grew by $1.2 billion, or 12% net [10][16] Business Line Data and Key Metrics Changes - In Q3, TRTX originated four loans with total commitments of $279.2 million at a weighted average credit spread of 3.22% [14] - Loan repayments totaled $415.8 million, including six full loan repayments of $405.8 million, primarily from multifamily and hotel loans originated in 2021 and 2022 [14] - The company repurchased 3.2 million shares of common stock at a weighted average price of $7.89 per share, resulting in $0.13 per share of book value accretion [15] Market Data and Key Metrics Changes - The equity market reached multiple all-time highs, while the 10-year Treasury rallied nearly 40 basis points to hover near 4% [8] - The real estate equity market is healing, driven by reset valuations and reduced lending appetite from the banking sector [8] Company Strategy and Development Direction - TRTX's investment activity accelerated, closing $279 million of new investments in Q3 and expecting over $670 million of loans to close in Q4 [8][9] - The company continues to lend primarily on multifamily and industrial assets, which represent approximately 91% of the $1.1 billion of closed and in-process investments [9] - TRTX shares currently trade at a 20% discount to book value, which the company believes offers substantial value [11] Management's Comments on Operating Environment and Future Outlook - Management expects an increase in demand for their products as interest rates stabilize and potentially decrease [22][23] - The company anticipates a more balanced mix of acquisition and refinance activity in the coming year [23] - The current pipeline is predominantly refinance-focused, but management expects a shift towards more acquisition activity [23] Other Important Information - Bob Foley, the CFO, announced his retirement at year-end after over 12 years with TPG and 10 years as CFO of TRTX [3][4] - Brandon Fox has assumed the role of Interim CFO, and Ryan Roberto has taken on duties regarding capital markets and portfolio management [4] Q&A Session Summary Question: Organic portfolio growth potential with current capital base - Management believes there is potential for organic portfolio growth with the current capital base [19][20] Question: Demand for bridge loan products with potential rate cuts - Management is already seeing acceleration in investment activity and expects increased demand for bridge loans as interest rates stabilize [22] Question: Cadence of leverage increase with new CLO and origination volumes - Management indicated that leverage will likely increase as new investments close, but there may be a lag in earnings from new investment activity [28][29] Question: Unique opportunity in Nashville hotel loan despite reduced exposure - Management clarified that the Nashville hotel loan was a unique opportunity with a high-quality asset and borrower, despite a general reduction in hospitality exposure [30][31] Question: Enhancing ROE through REO portfolio management - Management stated that net balance sheet growth is the most important driver for enhancing ROE, rather than focusing on REO dispositions [35]

Financial Performance - Net income was $42.9 million, or $0.45 per share[11] - Economic return was 3.3% for the quarter (non-annualized)[11] - Adjusted Distributable Earnings were $45.0 million, or $0.47 per share[11] - The company declared total dividends of $0.39 for the quarter, resulting in a book value per common share of $13.49[11] Portfolio Composition and Strategy - The adjusted long credit portfolio increased by 1% to $3.32 billion as of June 30, 2025, compared to $3.30 billion as of March 31, 2025[11, 18] - The long Agency portfolio increased by 5% to $268.5 million, driven by net purchases[11, 26] - The Longbridge portfolio decreased by 1% to $545.6 million, as a securitization slightly exceeded new originations[11, 29] - 87% of deployed capital was allocated to credit, 2% to agency, and 11% to Longbridge[12] Leverage and Capital Structure - Recourse debt-to-equity ratio was 1.7:1[11] - Total debt-to-equity ratio was 8.7:1, including non-recourse borrowings[11] - Total stockholders' equity was $1.67 billion, including $1.33 billion of common equity and $332 million of preferred equity[11]

Financial Performance - Q2 GAAP basic income per share was $0.04, Distributable Earnings per share was $0.19, and Distributable EPS prior to charge-offs was $0.45[6] - Paid a Q2 dividend of $0.47 per share, equating to a 9.7% annualized dividend yield[6] - Book value per share was $21.04, incorporating $4.39 per share of CECL reserves[6] Portfolio Activity - Originated $2.2 billion and collected $1.6 billion of repayments in Q2, resulting in a quarter-end portfolio of $18.4 billion across 144 loans[6] - Acquired a $0.4 billion share of a performing senior loan portfolio from a US regional bank at a discount to par[6] - The portfolio is well-diversified, with 27% in multifamily, 20% in US office, and 18% in industrial properties[12] - Office exposure has decreased by 29% over the past year and now comprises 28% of the portfolio[13] Credit Quality - Resolved $0.2 billion of impaired assets in Q2 above aggregate carrying value, with total resolutions of $1.7 billion since Q3 2024, reducing the impaired loan balance by 55% from its peak[6] - CECL reserves remained stable QoQ at $755 million, representing 3.8% of the principal balance[6] - The performing loan portfolio stands at 94%[18] Capitalization and Liquidity - Maintained strong liquidity of $1.1 billion to support portfolio turnover into new investments[6] - Repriced $1.0 billion of Term Loan B, reducing the spread by 65bps and extending the maturity to 2030[6]

Financial Performance - Ellington Financial reported net income of $31649 million, or $035 per share[11] - Adjusted Distributable Earnings were $35493 million, or $039 per share[11] - The economic return for the quarter was 23%, non-annualized[11] Portfolio Composition and Strategy - The adjusted long credit portfolio decreased by 4% to $330 billion[11, 18] - The long Agency portfolio decreased by 14% to $2561 million[11, 26] - The Longbridge portfolio increased by 31% to $5490 million, driven by proprietary reverse mortgage loan originations[11, 29] Leverage and Capital Structure - The recourse debt-to-equity ratio was 17:1[11] - The total debt-to-equity ratio, including non-recourse borrowings, was 87:1[11] - Total stockholders' equity was $161 billion, including $128 billion of common equity and $332 million of preferred equity[11]