Franklin Bsp Realty Trust, Inc. · NYSE:FBRT
Franklin Bsp Realty Trust — Q4 2023 Earnings Presentation
28 slides from Franklin Bsp Realty Trust's earnings presentation, Feb 15, 2024
Slide 1: Franklin BSP Realty Trust Supplemental Information Fourth Quarter 2023
Franklin BSP Realty Trust Supplemental Information Fourth Quarter 2023
Slide 2: Important Information
Important Information The information herein relates to the Company’s business and financial information as of December 31, 2023 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”
Slide 3: FBRT 4Q 2023 Financial Update
FBRT 4Q 2023 Financial Update 3
Slide 4: Fourth Quarter 2023 Highlights
FBRT 4Q 2023 Financial Update: Fourth Quarter 2023 Highlights Earnings ― GAAP Net Income of $30.0 million and $0.28 per diluted common share and $0.29 per fully converted share (1) ― Distributable Earnings (2) of $39.3 million and $0.39 per fully converted share (1) ― Declared a cash dividend of $0.
Slide 5: QTD Highlights
FBRT 4Q 2023 Financial Update: QTD Highlights Income Statement Balance Sheet - Assets (End of Quarter) Net interest income / other income $54.0 Total core portfolio $4,989.8 (1) Operating expenses (18.7) Total real estate securities $242.6 Provision for credit loss (5.4) Cash and restricted cash $34
Slide 6: Earnings and Distributions
FBRT 4Q 2023 Financial Update: Earnings and Distributions Distributable Earnings ($M) (1) GAAP Net Income (Loss) ($M) $63.5 Williamsburg Hotel Sale $15.0 (3) $44.8 $43.8 $42.0 $39.3 $39.6 $31.0 $30.0 1Q'23 2Q'23 3Q'23 4Q'23 1Q'23 2Q'23 3Q'23 4Q'23 $0.355 $0.355 $0.355 $0.355 Dividend per share Distr
Slide 7: Core Loan Originations
FBRT 4Q 2023 Financial Update: Core Loan Originations 4Q 2023 ($M) FY 2023 ($M) (1) (1) (2) (2) Note: All numbers in millions. Numbers in charts above represent principal balance. 1. As of December 31, 2023, future funding remaining on the loans outstanding was $288 million. 7 2. Includes full paydo
Slide 8: Capitalization Overview
FBRT 4Q 2023 Financial Update: Capitalization Overview Financing Sources (1) Net Leverage FBRT average debt cost including financing costs 2.50x 2.29x was 7.9% in 4Q23 vs. 7.7% last quarter Asset Specific Repo - Financings Unsecured 2.00x Securities 1% Debt 4% 2% Warehouse 7% 1.50x $4.2Bn 1.00x Tota
Slide 9: Financing Detail
FBRT 4Q 2023 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 $558 million Ended S + 1.43% Barclays (Warehouse) $500 million BSPRT 2021-FL7 $720 million 1/8/24 S + 1.64% Wells Fargo $400 mi
Slide 10: Liquidity
FBRT 4Q 2023 Financial Update: Liquidity Liquidity ($M) (1) Note: All numbers in millions. 10 1. Represents cash available we can invest at a market advance rate utilizing our available capacity on financing lines.
Slide 11: Portfolio
Portfolio 11
Slide 12: Core Loan Portfolio Composition
Portfolio: Core Loan Portfolio Composition Portfolio Overview Portfolio Summary Collateral Summary − $5.0 billion total portfolio Senior 99.6% Multifamily 77% − 138 senior loans; average size of ~$36 million − 6 mezzanine loans; average size of ~$3 million − Two non-performing loans Other 2% Mezzani
Slide 13: Core Originations in the Quarter
Portfolio: Core Originations in the Quarter Overview By Collateral − 7 loans; $231 million total commitment ($218 million of initial funding / $14 million of future funding) − 3.91% weighted average spread; 9.26% Hospitality 45% all-in coupon(1). 1.0% and 0.5% Multifamily weighted average originatio
Slide 14: Core Portfolio - Case Studies: Watch List Loans (Risk Rating 4&5)
Portfolio: Core Portfolio - Case Studies: Watch List Loans (Risk Rating 4&5) Two Property Suburban Office 352-Unit Apartment 471-Unit Apartment Portfolio Apartment Investment CBD Office Building Park Full Service Hotel Community Community Communities Floating Rate Senior Floating Rate Senior Floatin
Slide 15: Foreclosure Real Estate Owned (REO)
Portfolio: Foreclosure Real Estate Owned (“REO”) 16-Building Investment Single Tenant Retail Portfolio CBD Office Complex Apartment Complex Loan Investment Date Q2 2022 Q1 2020 Q1 2021 Foreclosure / Deed-In-Lieu Date Q4 2022 - Q2 2023 Q3 2023 Q4 2023 Collateral Type Retail Office Multifamily 23 Free
Slide 16: Appendix
Appendix 16
Slide 17: Core Portfolio Details - Top 15 Loans
Appendix: Core Portfolio - FBRT Portfolio Details – Top 15 Loans Origination Current Total Principal Fully Extended (1) (2) Loan Type Date Commitment Balance Carrying Value Spread All-in Yield Maturity State Collateral Type As-is LTV Loan 1 Senior Loan 5/26/21 $155 $152 $152 + 4.55% 10.36% 6/9/26 Fl
Slide 18: Core Portfolio - Risk Ratings
Appendix: Core Portfolio - Risk Ratings Average risk rating was 2.3 for the quarter vs. 2.2 last quarter 77.3% 17.4% 5.4% 0.0% 0.0% Risk Rating 1 2 3 4 5 # of Loans - 111 27 6 - + vs 3Q23 - +8 +6 +4 - - vs 3Q23 - -12 -6 -1 - +/- vs 3Q23 - -4 - +3 - Principal $- $3,898 $875 $272 $- Balance Non-Accrua
Slide 19: Earnings Sensitivity
Appendix: Earnings Sensitivity Positive earnings correlation to rising rates Sensitivity on Index Rates As of 2/9/24: (Annual EPS Impact) 1M SOFR: 5.32% As of 12/31/23 1M SOFR = 5.35% $0.11 $0.06 $0.00 ($0.06) ($0.11) -1.00% -0.50% 12/31/2023 +0.50% +1.00% Change in Floating Base Rate Indices 19 Not
Slide 20: Rate Cap Sensitivity
Appendix: Rate Cap Sensitivity 88% of our loans have a rate cap (average of 2.8% rate cap) and 81% were activated as of 12/31/23 Percentage and Number of Loans with Rate Caps Activated All loans with rate caps are activated at +1.00% and above 88%; 126 loans 81%; 117 loans 84%; 121 loans Current +0.
Slide 21: Core Portfolio - Fully Extended Maturities
Appendix: Core Portfolio – Fully Extended Maturities Fully Extended Maturity by Year $1 ,943 $1 ,857 $450 $380 $21 6 2024 2025 2026 2027 2028 21 Note: All numbers in millions. Excludes loans on non-accrual and loans in maturity default at 12/31/23.
Slide 22: Core Portfolio - Allowance For Loan Loss
Appendix: Core Portfolio – Allowance For Loan Loss Allowance for Loan Loss by Collateral Type $ millions Office Other 2% 1% Allowance for Loan Loss Balance at 9/30/23 - General $42.9 Hospitality Reserve 13% Provision for Credit Loss - General Reserve 5.4 Allowance for Loan Loss Balance at 12/31/23 -
Slide 23: Segment Reporting Summary
Appendix: Segment Reporting Summary Weighted Average Shares Earnings Daily Average Nominal Outstanding, Fully Per Share, Fully Common Equity Return on (3) (3) ($000s) Converted Converted ($000s) Common Equity GAAP Net Income (Loss) $30,031 88,182,810 $0.29 $1,394,883 7.2% (1) $39,263 88,182,810 $0.3
Slide 24: GAAP Net Income to Distributable Earnings Reconciliation
Appendix: GAAP Net Income to Distributable Earnings Reconciliation 1Q'23 2Q'23 3Q'23 4Q'23 GAAP Net Income (Loss) 43.8 39.6 31.0 30.0 Adjustments: CLO Amortization Acceleration (1) (1.5) (1.2) (1.3) (1.6) Unrealized (Gain) / Loss (2) 0.6 2.7 4.3 (0.0) (3) (0.6) 2.6 1.6 2.6 Subordinated Performance F
Slide 25: Book Value Per Share & Shares Outstanding
Appendix: Book Value Per Share & Shares Outstanding December 31, 2023 December 31, 2022 Stockholders' equity applicable to convertible common stock $ 1,390,120 $ 1,398,986 Shares: Common stock 81,942,656 82,479,743 Restricted stock and restricted stock units 809,257 513,041 Series H convertible pref
Slide 26: FBRT Income Statement
Appendix: FBRT Income Statement Year Ended December 31, 2023 2022 2021 Income Interest income $ 552,506 $ 357,705 $ 216,890 Less: Interest expense 305,577 160,526 56,193 Net interest income 246,929 197,179 160,697 Revenue from real estate owned 17,021 9,655 4,759 Total income $ 263,950 $ 206,834 $ 1
Slide 27: FBRT Balance Sheet
Appendix: FBRT Balance Sheet December 31, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 337,595 $ 179,314 Restricted cash 6,092 11,173 Commercial mortgage loans, held for investment, net of allowance for credit losses of $47,175 and 40,848 as of December 31, 2023 and 4,989,767 5,228,928
Slide 28: Definitions
Definitions Distributable Earnings and Run-Rate Distributable Earnings 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)
Franklin BSP Realty Trust — Q4 2023 Earnings Presentation on 6ix