Franklin Bsp Realty Trust, Inc. · NYSE:FBRT
Franklin Bsp Realty Trust — Q1 2024 Earnings Presentation
28 slides from Franklin Bsp Realty Trust's earnings presentation, Apr 30, 2024
Slide 1: First Quarter 2024 Supplemental Information
First 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 March 31, 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 1Q 2024 Financial Update
FBRT 1Q 2024 Financial Update
Slide 4: Highlights
FBRT 1Q 2024 Financial Update Highlights • GAAP Net Income of $35.8 million and $0.35 per diluted common share and $0.35 per fully converted Earnings share (1) • Distributable Earnings (2) of $41.0 million and $0.41 per diluted common share on a fully converted basis (1) • Declared a cash dividend o
Slide 5: Financial Highlights
FBRT 1Q 2024 Financial Update Financial Highlights Income Statement Balance Sheet - Assets (End of Quarter) Net interest income / other income $52.2 Total core portfolio $5,184.2 (1) Operating expenses (17.9) Total real estate securities $217.9 Provision for credit loss (2.9) Cash and restricted cas
Slide 6: Earnings & Distributions
FBRT 1Q 2024 Financial Update Earnings & Distributions Distributable Earnings ($M) (1) GAAP Net Income (Loss) ($M) $63.5 Williamsburg Hotel Sale $15.0 (3) $39.6 $35.8 $42.0 $41.0 $39.3 $31.0 $30.0 2Q'23 3Q'23 4Q'23 1Q'24 2Q'23 3Q'23 4Q'23 1Q'24 2Q'23 3Q'23 4Q'23 1Q'24 $0.355 $0.355 $0.355 $0.355 Div
Slide 7: Core Net Fundings
FBRT 1Q 2024 Financial Update Core Net Fundings 1Q 2024 ($M) (1) (2) (3) Note: All numbers in millions. 1. Total commitment for 1Q 2024 totaled $591m 2. Includes full paydowns, dispositions, partial paydowns and amortization 3. In February 2024, the Company, through deed-in-lieu of foreclosure, acqu
Slide 8: Capitalization Overview
FBRT 1Q 2024 Financial Update Capitalization Overview Average debt cost including financing was 7.8% in 1Q24 vs. 7.9% last quarter Financing Sources (1) Net Leverage Asset Specific Financings 1% Unsecured Debt 3.00x Repo - Securities 2% 5% Warehouse 2.39x 10% 2.50x 2.00x 1.50x 1.00x 0.50x Collateral
Slide 9: Financing Detail
FBRT 1Q 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 $537 million Ended S + 1.44% Barclays (Warehouse) $500 million BSPRT 2021-FL7 $675 million Ended S + 1.66% Wells Fargo $400 millio
Slide 10: Liquidity
FBRT 1Q 2024 Financial Update Liquidity Liquidity ($M) (1) 1. Represents cash available at 3/31/2024 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 • $5.2B total portfolio; 64.3% WA LTV (1) Senior 99% Fixed 3% • 139 senior loans; average UPB (2) of $38M • 6 mezzanine loans; average UPB (2) of $5M Floating Mezzanine • 4 non-accrual loans (3) 1% 97% Collatera
Slide 13: Core Originations in the Quarter
Portfolio Core Originations in the Quarter Overview By Collateral Hospitality • 11 loans; $591 million total commitment ($439 million of 12% initial funding / $152 million of future funding) Office 13% • 4.64% weighted average spread; 9.97% all-in coupon (1) • 1.1% and 0.7% weighted average originat
Slide 14: Core Portfolio - Watch List Loans (Risk Rating 4&5)
Portfolio Core Portfolio - Watch List Loans (Risk Rating 4&5) 472-Unit Apartment Two Property Portfolio 426-Unit Apartment Investment Community Apartment Communities CBD Office Building Community Suburban Office Park Full Service Hotel Floating Rate Senior Floating Rate Senior Floating Rate Senior F
Slide 15: Foreclosure Real Estate Owned (REO)
Portfolio Foreclosure Real Estate Owned (“REO”) Single Tenant CBD 16-Building Investment Retail Portfolio 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 Frees
Slide 16: Appendix
Appendix
Slide 17: Core Portfolio – FBRT Portfolio Details – Top 15 Loans
Appendix Core Portfolio – FBRT Portfolio Details – Top 15 Loans Current Total Principal Fully Extended Loan Loan Type Origination Date Commitment Balance Carrying Value Spread All-in Yield (1) Maturity State Collateral Type As-is LTV (2) Loan 1 Senior Loan 5/26/21 $155 $155 $155 + 4.35% 10.13% 6/9/2
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 73.5% 21.5% 5.0% 0.0% 0.0% Risk Rating 1 2 3 4 5 # of Loans - 111 28 6 - Addition - +13 +8 +1 - Reduction - -13 -7 -1 - +/- vs 4Q23 - - +1 - - Principal Balance $- $3,858 $1
Slide 19: Earnings Sensitivity
Appendix Earnings Sensitivity Positive earnings correlation to rising rates EPS Sensitivity on Index Rates As of 4/22/24: 1M SOFR: 5.32% As of 3/31/24: 1M SOFR: 5.33% $0.12 $0.06 $0.00 ($0.06) ($0.11) -1.00% -0.50% 3/31/2024 +0.50% +1.00% Change in Floating Base Rate Indices Note: Reflects distribut
Slide 20: Rate Caps Sensitivity
Appendix Rate Caps Sensitivity 87% of our loans have a rate cap (with average cap of 3.0%) and 79% were activated as of 3/31/2024 Percentage and Number of Loans with Activated Rate Caps All loans with rate caps that are not expired are activated at +1.00% indices and beyond 84%; 122 87%; 126 79%; 11
Slide 21: Core Portfolio – Fully Extended Maturities
Appendix Core Portfolio – Fully Extended Maturities Fully Extended Maturity by Year $2,009 $1,918 $451 $393 $295 $178 2024 2025 2026 2027 2028 2029 Note: All numbers in millions. Excludes loans on non-accrual and loans in maturity default at 3/31/2024 BENEFIT STREET PARTNERS | ALCENTRA 21
Slide 22: Core Portfolio – Allowance For Loan Loss
Appendix Core Portfolio – Allowance For Loan Loss Total Allowance for Credit Loss by Collateral Type Other 7% Office 5% Hospitality 14% Multifamily 74% CECL Reserve Summary As % of 12/31 Change 3/31 UPB UPB General CECL Provision $48.3 2.1 $50.4 $5,185.8 1.0% Specific CECL Provision $0.0 0.7 $0.7 $5
Slide 23: GAAP Net Income to Distributable Earnings Reconciliation
Appendix GAAP Net Income to Distributable Earnings Reconciliation 2Q'23 3Q'23 4Q'23 1Q'24 GAAP Net Income (Loss) 39.6 31.0 30.0 35.8 Adjustments: CLO Amortization Acceleration (1) (1.2) (1.3) (1.6) - (2) Unrealized (Gain) / Loss 2.7 4.3 (0.0) (0.3) Subordinated Performance Fee (3) 2.6 1.6 2.6 (0.6)
Slide 24: Book Value Per Share & Shares Outstanding
Appendix Book Value Per Share & Shares Outstanding March 31, 2024 December 31, 2023 Stockholders' equity applicable to convertible common stock $ 1,389,383 $ 1,390,120 Shares: Common stock 81,990,061 81,942,656 Restricted stock and restricted stock units 1,264,422 809,257 Series H convertible prefer
Slide 25: FBRT Income Statement
Appendix FBRT Income Statement Three Months Ended March 31, 2024 2023 Income Interest income $ 130,558 $ 130,536 Less: Interest expense 81,318 71,075 Net interest income 49,240 59,461 Revenue from real estate owned 4,712 3,312 Total income $ 53,952 $ 62,773 Expenses Asset management and subordinated
Slide 26: FBRT Balance Sheet
Appendix FBRT Balance Sheet March 31, 2024 December 31, 2023 ASSETS Cash and cash equivalents $ 240,030 $ 337,595 Restricted cash 8,092 6,092 Commercial mortgage loans, held for investment, net of allowance for credit losses of $49,215 and $47,175 as of March 31, 2024 and 5,184,205 4,989,767 Decembe
Slide 27: 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 28: 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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