Franklin Bsp Realty Trust, Inc. · NYSE:FBRT
Franklin Bsp Realty Trust — Q2 2024 Earnings Presentation
27 slides from Franklin Bsp Realty Trust's earnings presentation, Aug 1, 2024
Slide 1: Franklin BSP Realty Trust Second Quarter 2024 Supplemental Information
Second Quarter 2024 Franklin BSP Realty Trust Supplemental Information
Slide 2: Important Information
Important Information The information herein relates to the Company’s business and financial information as of June 30, 2024 and does not reflect subsequent developments. Risk Factors Investing in and owning our common stock involves a high degree of risk. See the section entitled “Risk Factors” in
Slide 3: FBRT 2Q 2024 Financial Update
FBRT 2Q 2024 Financial Update
Slide 4: Highlights
FBRT 2Q 2024 Financial Update Highlights Earnings • GAAP Net Income (Loss) of ($3.8) million and ($0.11) per diluted common share and ($0.08) per fully converted share (1) • Distributable Earnings (2) of $32.4 million and $0.31 per fully converted share (1) • Declared a cash dividend of $0.355 per s
Slide 5: Financial Highlights
FBRT 2Q 2024 Financial Update Financial Highlights Income Statement Balance Sheet - Assets (End of Quarter) Net interest income / other income $49.9 Total core portfolio $5,347.4 (1) Operating expenses (15.1) Total real estate securities 215.3 Provision for credit loss (32.2) Cash and restricted cas
Slide 6: Earnings & Distributions
FBRT 2Q 2024 Financial Update Earnings & Distributions Distributable Earnings ($M) (1) GAAP Net Income (Loss) ($M) $42.0 $41.0 $39.3 $35.8 $32.4 $31.0 $30.0 -$3.8 3Q'23 4Q'23 1Q'24 2Q'24 3Q'23 4Q'23 1Q'24 2Q'24 3Q'23 4Q'23 1Q'24 2Q'24 $0.355 $0.355 $0.355 $0.355 Dividend per share $0.43 $0.39 $0.41
Slide 7: Core Net Fundings
FBRT 2Q 2024 Financial Update Core Net Fundings 2Q 2024 ($M) YTD 2024 ($M) Total Commitment of $622M Total Commitment of $1,213M (1 ) (1 (1)) Note: All numbers in millions. 1. Includes full paydowns, dispositions, partial paydowns and amortization BENEFIT STREET PARTNERS | ALCENTRA 7
Slide 8: Capitalization Overview
FBRT 2Q 2024 Financial Update Capitalization Overview Average debt cost including financing was 7.8% in 2Q24 vs. 7.9% in 1Q24 Financing Sources (1) Net Leverage (2) Asset Specific Financings 3.00x Unsecured Debt Repo - Securities 1% 2.72x 2% 5% 2.50x Warehouse 17% 2.00x 1.50x 1.00x 0.62x Collaterali
Slide 9: Financing Detail
FBRT 2Q 2024 Financial Update Financing Detail CLOs Warehouse/Revolver/Other Reinvest Cost of CLO Name Debt Amount(1) End Date Debt(2) Name Commitment (3) BSPRT 2021-FL6 $477 million Ended S + 1.49% Barclays (Warehouse) $500 million BSPRT 2021-FL7 $648 million Ended S + 1.67% Wells Fargo $400 millio
Slide 10: Liquidity
FBRT 2Q 2024 Financial Update Liquidity Liquidity ($M) (1) 1. Represents cash available at 6/30/2024 that we can invest at a market advance rate utilizing our available capacity on financing lines BENEFIT STREET PARTNERS | ALCENTRA 10
Slide 11: Portfolio
Portfolio O2
Slide 12: Core Loan Portfolio Composition
Portfolio Core Loan Portfolio Composition Portfolio Overview Portfolio Summary Rate Type • $5.4B total portfolio; 63.4% WA LTV (1) Senior 99% Fixed 3% • 147 senior loans; average UPB (2) of $37M • 6 mezzanine loans; average UPB (2) of $5M Floating Mezzanine 97% • 4 non-performing loans (3) 1% Collat
Slide 13: Core Originations in the Quarter
Portfolio Core Originations in the Quarter Overview By Collateral Hospitality 13% • 18 loans; $622 million total commitment ($576 million of initial funding / $46 million of future funding) • 3.18% weighted average spread; 8.52% all-in coupon (1) Industrial 22% • 0.9% and 0.1% weighted average origi
Slide 14: Core Portfolio - Watch List Loans (Risk Rating 4&5)
Portfolio Core Portfolio - Watch List Loans (Risk Rating 4&5) Multi Property 276-Unit Apartment 272-Unit Apartment 176-Unit Apartment Investment Suburban Office Park CBD Office Building Full Service Hotel Apartment Community Community Community Community Floating Rate Senior Floating Rate Senior Flo
Slide 15: Foreclosure Real Estate Owned (REO)
Portfolio Foreclosure Real Estate Owned (“REO”) Single Tenant CBD 16-Building Two Property Portfolio 471-Unit Apartment 426-Unit Apartment Investment Retail Portfolio Office Complex Apartment Complex Apartment Communities Community Community Loan Investment Date Q2 2022 Q1 2020 Q1 2021 Q2 2022 Q2 20
Slide 16: Appendix
Appendix
Slide 17: Core Portfolio Details - Top 15 Loans
Appendix Core Portfolio – FBRT Portfolio Details – Top 15 Loans Current Total Principal Fully Extended (1) (2) Loan Loan Type Origination Date Commitment Balance Carrying Value Spread All-in Yield Maturity State Collateral Type As-is LTV Loan 1 Senior Loan 5/26/21 $155 $155 $155 + 2.75% 8.54% 6/9/26
Slide 18: Core Portfolio – Risk Ratings
Appendix Core Portfolio – Risk Ratings Average risk rating was 2.3 for the quarter (no change from prior quarter) Risk Ratings 74.8% 19.8% 4.1% 0.0% 1.3% Risk Rating 1 2 3 4 5 # of Loans - 119 27 5 2 Addition - 18 4 4 2 Reduction - 10 5 5 - +/- vs 1Q24 - 8 (1) (1) 2 Principal Balance - 4,072 1,076 2
Slide 19: Earnings Sensitivity
Appendix Earnings Sensitivity Positive earnings correlation to rising rates EPS Sensitivity on Index Rates As of 7/15/24: 1M SOFR: 5.33% As of 6/30/24: 1M SOFR: 5.34% $0.10 $0.05 $0.00 ($0.05) ($0.10) -1.00% -0.50% 6/30/2024 +0.50% +1.00% Change in Floating Base Rate Indices Note: Reflects earnings
Slide 20: Core Portfolio – Fully Extended Maturities
Appendix Core Portfolio – Fully Extended Maturities Fully Extended Maturity by Year $1,812 $1,789 $685 $628 $381 $143 2024 ROY 2025 2026 2027 2028 2029 Note: All numbers in millions. Excludes loans on non-accrual and loans in maturity default at 6/30/2024 BENEFIT STREET PARTNERS | ALCENTRA 20
Slide 21: Core Portfolio – Allowance For Loan Loss
Appendix Core Portfolio – Allowance For Loan Loss Total Allowance for Credit Loss by Collateral Type All Other 5% Hospitality 10% Multifamily 49% Office 36% CECL Reserve Summary As % of 1Q24 (+) Increase (-) Decrease 2Q24 UPB Total UPB General CECL Provision $50.4 - ($0.1) $50.3 $5,213.4 0.9% Specif
Slide 22: GAAP Net Income to Distributable Earnings Reconciliation
Appendix GAAP Net Income to Distributable Earnings Reconciliation 3Q'23 4Q'23 1Q'24 2Q'24 GAAP Net Income (Loss) 31.0 30.0 35.8 (3.8) Adjustments: CLO Amortization Acceleration (1) (1.3) (1.6) - - (2) 4.3 (0.0) (0.3) 6.3 Unrealized (Gain) / Loss (3) 1.6 2.6 (0.6) (2.2) Subordinated Performance Fee N
Slide 23: Book Value Per Share & Shares Outstanding
Appendix Book Value Per Share & Shares Outstanding June 30, 2024 December 31, 2023 Stockholders' equity applicable to convertible common stock $ 1,350,116 $ 1,390,120 Shares: Common stock 81,788,091 81,942,656 Restricted stock and restricted stock units 1,266,548 809,257 Series H convertible preferr
Slide 24: FBRT Income Statement
Appendix FBRT Income Statement Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Income Interest income $ 133,553 $ 152,892 $ 264,111 $ 283,428 Less: Interest expense 86,740 75,299 168,058 146,374 Net interest income 46,813 77,593 96,053 137,054 Revenue from real estate owned
Slide 25: FBRT Balance Sheet
Appendix FBRT Balance Sheet June 30, 2024 December 31, 2023 ASSETS Cash and cash equivalents $ 94,779 $ 337,595 Restricted cash 10,957 6,092 Commercial mortgage loans, held for investment, net of allowance for credit losses of $80,536 and $47,175 as of June 30, 2024 and 5,347,395 4,989,767 December
Slide 26: Definitions
Definitions Distributable Earnings and Distributable Earnings to Common Distributable Earnings is a non-GAAP measure, which the Company defines as GAAP net income (loss), adjusted for (i) non-cash CLO amortization acceleration and amortization over the expected useful life of the Company's CLOs, (ii
Slide 27: Office locations
New York New York London Boston West Palm Beach 9 West 57th Street 1345 Avenue of the Americas Cannon Place 399 Boylston Street 360 South Rosemary Avenue Suite 4920 Suite 32A 78 Cannon Street Suite 901 Suite 1510 New York New York London Boston West Palm Beach NY 10019 NY 10105 EC4N 6HL MA 02116 FL
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