Franklin Bsp Realty Trust, Inc. · NYSE:FBRT
Franklin Bsp Realty Trust — Benefit Street Partners Realty Trust — Shareholder Meeting (July 2017)
25 slides from Franklin Bsp Realty Trust's shareholder meeting presentation, Jul 12, 2017
Slide 1: Financing the Growth of Commercial Real Estate: 2017 Annual Meeting Presentation
Financing the Growth of Commercial Real Estate Note: This program does not own the properties pictured. The properties serve as the underlying collateral for mezzanine loan s h eld by BSP Realty Trust. Benefit Street Partners Realty Trust 2017 Annual Meeting Presentation
Slide 2: Important Information
2 IMPORTANT INFORMATION Risk Factors Investing in and owning our common stock involves a high degree of risk . See the section entitled “Risk Factors” in our Form 10 - K filed March 29 , 2017 for a discussion of these risks . Forward - Looking Statements Certain statements included in this presentat
Slide 3: Today's Speaker: Richard J. Byrne
3 Richard J. Byrne Chief Executive Officer and President of BSP Realty Trust TODAY’S SPEAKER Richard Byrne is president of Benefit Street Partners and is based in BSP’s New York office . Mr . Byrne is also Chairman and Chief Executive Officer of Business Development Corporation of America . Prior to
Slide 4: Table of Contents
4 TABLE OF CONTENTS Section I Fund Snapshot Section II Strategic Initiatives Section III Proxy Overview Section IV Voting Information
Slide 5: Executive Summary
5 EXECUTIVE SUMMARY ▪ For the quarter ending 3/31/2017 , Adjusted Net Income was $ 0.24 per share or $7.6 million, vs. $ 0.21 per share or $ 6.6 million for the quarter ending 12/31/2016 . ▪ Our dividend remained unchanged at $0.51 per share quarterly or $16.1 million. ▪ Book Value was $19.62 per sh
Slide 6: Section I – Fund Snapshot
6 Section I – Fund Snapshot
Slide 7: Loan Portfolio Snapshot
7 Section I – Fund Snapshot: Loan Portfolio Snapshot ▪ 67 Portfolio Loans ▪ $1.1 Billion in Outstanding Par Amount ▪ 11.9% Weighted Average Levered Yield ▪ 85.7% Senior Loans ▪ 92.6% Floating Rate Loan Type Fixed vs. Floating Source: SEC filings as of 05/12/17. Note: PAST PERFORMANCE IS NOT NECESSAR
Slide 8: Portfolio Diversification
8 Section I – Fund Snapshot : Portfolio Diversification Loan Portfolio by Collateral Type Loan Portfolio by Region Source: SEC filings as of 5/12/2017 12% 5% 4% 27% 34% 18% Hospitality Industrial Mixed Use Multifamily Office Retail 1% 19% 16% 7% 13% 15% 7% 12% 10% New England Mideast Great Lakes Pla
Slide 9: Portfolio Composition
9 Section I – Fund Snapshot: Portfolio Composition The BSPRT portfolio concentration in Senior Loans has increased, while Mezzanine Loans portfolio has declined. Portfolio Composition by Loan Type Source: SEC filings as of 05/12/17. Loan Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Senior 80% 81% 80% 84%
Slide 10: Financing Sources
10 Section I – Fund Snapshot: Financing Sources JP Morgan • $300mm Line • Libor + 225 to 250 • Avg. Spread of 230 • June 2017 Maturity • $257mm drawn Goldman Sachs • $250mm Line • Libor + 235 to 285 • Avg. Spread of 260 • December 2019 Maturity • $0.0mm drawn RFT FL1 – 2015 • $428mm Line • LIBOR + 1
Slide 11: Section II – Strategic Initiatives
11 Section II – Strategic Initiatives
Slide 12: Strategic Initiatives
12 Note: There can be no assurance that BSP Realty Trust will be able to implement its investment strategy and achieve its investment objectives. Views expressed are those of BSP . Deploy Capital ▪ Leverage breadth of BSP’s commercial real estate platform to originate n ew loans with attractive risk
Slide 13: 1Q2017 Origination Summary
13 Notes: As of May 30, 2017. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ANY INVESTMENT INVOLVES SIGNIFICANT RISK, INCLUDING LOSS O F T HE ENTIRE INVESTMENT. Views expressed are those of BSP . There can be no assurance that signed applications will close and fund. 1 Loan to Va
Slide 14: YTD 2017 Origination Update
14 Section II – Strategic Initiatives: YTD 2017 Origination Update $14mm $37mm $43mm $36mm $90mm $250mm $mm $25mm $50mm $75mm $100mm $125mm $150mm $175mm $200mm $225mm $250mm $275mm 1/1/2017 2/1/2017 3/1/2017 4/1/2017 5/1/2017 6/1/2017 BSPRT Origination Volume Closed Projected to Close
Slide 15: Section III – Proxy Overview
15 Section III – Proxy Overview
Slide 16: Proxy Details
16 Section III – Proxy Overview Proxy Details ▪ Benefit Street Partners Realty Trust, Inc. (“BSPRT”) Board of Director’s has fixed the close of business on March 27, 2017 as the record date for shareholders entitled to vote at the Annual Meeting . ▪ BSPRT filed the Proxy Statement on March 30, 2017
Slide 17: What Is Proposed in the Proxy?
17 Section III – Proxy Overview What is proposed in the proxy? Annual Meeting of Stockholders 2 1 3 Elect seven (5) directors for one - year terms expiring in 2018 and until their successors are duly elected and qualified. Ratify Company’s independent registered public accounting firm Amend the Char
Slide 18: Proposal Status and Adjournment
18 Section III – Proxy Overview Proposal 1 & 2 ▪ On May 31, 2017 the Benefit Street Partners Realty Trust Annual Meeting of Shareholders was held ▪ Proposal 1: The Board of Directors proposal passed, which elected the existing five directors to another one year term ▪ Proposal 2: The Company’s indep
Slide 19: Proposals – Description and Rationale
19 Section III – Proxy Overview Proposals 3 - 9 Description of Proposal and Rationale ▪ BSPRT is no longer conducting a 50 - state offering and we are no longer required to have certain charter provisions set forth in the Omnibus Guidelines published by NASAA. ▪ Management is recommending that BSPRT
Slide 20: Peers with Similar Charter Amendment Proposals
20 Section III – Proxy Overview Proposals 3 - 9 ▪ Many Non - Traded REIT’s and Non - Traded BDC’s included similar charter amendment proposals in their proxies including: – Corporate Capital Trust (KKR) – CNL Healthcare Properties – Smartstop Self Storage – American Realty Capital Healthcare Trust I
Slide 21: Proposals 3-9: Charter Amendment Summary
21 Section III – Proxy Overview Proposal 3 – 9: Charter Amendment Summary Proposal 3 Relating to certain aspects of stockholder meetings Proposal 4 Relating to certain s tockholder information rights Proposal 5 Relating to the c omposition of our Board Proposal 6 Relating to the conduct of our Board
Slide 22: Section IV – Voting Information
22 Section IV – Voting Information
Slide 23: Important Numbers/Website and Voting Options
23 Section IV – Voting Information Important Numbers/Website If you have questions about the proposals or would like additional copies of the proxy statement, please contact our proxy solicitor, Broadridge Investor Communication Solutions, Inc. (“ Broadridge ”) at (855) 601 - 2252 . VOTING OPTIONS M
Slide 24: Risk Factors
24 RISK FACTORS Our potential risks and uncertainties are presented in the section titled “Item 1A. Risk Factors” disclosed in our Annual Rep ort on Form 10 - K for the year ended December 31, 2016. The following are some of the risks and uncertainties, although not all risks and uncertainties, that
Slide 25: Financing the Growth of Commercial Real Estate
Financing the Growth of Commercial Real Estate www.bsprealtytrust.com ▪ Investor and Financial Advisors can call (844) 785 - 4393 for account information, balances and the status of submitted paperwork ▪ Financial Advisors may view client accounts, statements and tax forms at www.dstvision.com ▪ Sha
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