Franklin Bsp Realty Trust, Inc. · NYSE:FBRT
Franklin Bsp Realty Trust — Benefit Street Partners Realty Trust — Q1 2017 Earnings Presentation
28 slides from Franklin Bsp Realty Trust's earnings presentation, Jun 5, 2017
Slide 1: Financing the Growth of Commercial Real Estate
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. First Quarter 2017 Investor 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 Speakers
3 Richard J. Byrne Chief Executive Officer and President of BSP Realty Trust Jerome S. Baglien Chief Financial Officer of BSP Realty Trust TODAY’S SPEAKERS 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 Of
Slide 4: Table of Contents
4 TABLE OF CONTENTS Section I Overview of Adviser Section II Overview of BSP Realty Trust Section III 1Q17 Financial Update Section IV Strategic Initiatives
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 – Overview of Adviser
6 Section I – Overview of Adviser — Benefit Street Partners L.L.C. (“BSP” or the “Adviser”)
Slide 7: Adviser: BSP Overview
7 Section I - Overview of Adviser: BSP Overview Assets / Committed Capital Under Management $20 billion 1 Investment Record 8 years 2 Dedicated Investment Professionals 90+ investment professionals Offices New York, Charlotte, Houston, Providence Investment Strategies Private Debt /Opportunistic Cre
Slide 8: Adviser: BSP Platform
8 Section I - Overview of Adviser: BSP Platform Established , high - quality institutional infrastructure to support all credit activities Extensive networks and expertise across numerous sectors; Direct origination and research capabilities Seek to achieve downside protection through lien protectio
Slide 9: Adviser: BSP Commercial Real Estate Overview
9 Section I - Overview of Adviser: BSP Commercial Real Estate Overview ▪ BSP’s extensive network of brokers and borrowers helps drive proprietary deal flow and can generate numerous high return opportunities. ▪ BSP team has originated $2.5+ billion of commercial mortgages since inception. ▪ Leverage
Slide 10: Section II – Trust
10 Section II – Overview of BSP Realty Trust
Slide 11: Investment Strategy
11 We are focused on originating commercial real estate debt investments with attractive risk adjusted returns Primary investment objectives: ▪ To pay attractive and stable cash distributions to stockholders; and ▪ To preserve and return stockholders’ invested capital . Note: There can be no assuran
Slide 12: Loan Portfolio Snapshot
12 Section II - Overview of BSP Realty Trust : 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 PERFORMAN
Slide 13: Portfolio Diversification
13 Section II - Overview of BSP Realty Trust : 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 Mideas
Slide 14: Portfolio Composition
14 Section II - Overview of BSP Realty Trust: 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 Senio
Slide 15: Distribution History
15 Since inception, BSP Realty Trust has paid out an aggregate of $7.92 per share of regular distributions in cash and DRIP. Section II - Overview of BSP Realty Trust : Distribution History 2.06 2.06 2.06 2.06 2.06 2.06 2.06 2.06 2.06 2.06 2.06 2.06 2.06 2.06 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 4Q13
Slide 16: Book Value Per Share History
16 Section II - Overview of BSP Realty Trust : Book Value Per Share History Book Value Per Share Source: SEC filings as of 5/12/17. Note: PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ANY INVESTMENT INVOLVES SIGNIFICANT RISK, INCLUDING LOSS O F T HE ENTIRE INVESTMENT. 20.71 21.20
Slide 17: Financing Sources
17 Section II - Overview of BSP Realty Trust : 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 • $428mm
Slide 18: Experienced Board and Management Team
18 Richard J. Byrne Chief Executive Officer and President Jerome S. Baglien Chief Financial Officer and Treasurer Elizabeth K. Tuppeny Independent Director Peter J. McDonough Independent Director Richard J. Byrne Chairman BSP Realty Trust Board of Directors BSP Realty Trust Officers Legacy New Jamie
Slide 19: Section III – 1Q17 Financial Update
19 Section III – 1Q17 Financial Update
Slide 20: Financial Highlights
20 Section III – 1Q17 Financial Update: Financial Highlights ($’s in thousands, where applicable) Source: SEC filings as of 5/12/17 . Note: PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ANY INVESTMENT INVOLVES SIGNIFICANT RISK, INCLUDING LOSS O F T HE ENTIRE INVESTMENT. (1) Adjus
Slide 21: Credit Quality
21 21 Section III – 1Q17 Financial Update: Credit Quality Loans in non - accrual status Loans on watchlist None Riverwalk Average Risk Rating 2.2 Investment Rating Summary Description 1 Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors si
Slide 22: Section IV – Strategic Initiatives
22 Section IV – Strategic Initiatives
Slide 23: Strategic Initiatives
23 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 24: 1Q 2017 Origination Update
24 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 25: YTD 2017 Origination Update
25 Section IV – 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 26: Financing Sources
26 Section IV – Strategic Initiatives: 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 •
Slide 27: Risk Factors
27 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 28: 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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