Franklin Bsp Realty Trust, Inc. · NYSE:FBRT
Franklin Bsp Realty Trust — Benefit Street Partners Realty Trust — Q2 2017 Earnings Presentation
26 slides from Franklin Bsp Realty Trust's earnings presentation, Aug 24, 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 loans held by BSP Realty Trust. Second 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 Chairman and Chief Executive Officer 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 Off
Slide 4: Table of Contents
4 TABLE OF CONTENTS Section I Overview of Adviser Section II Overview of BSP Realty Trust Section III 2Q17 Financial Update Section IV Strategic Initiatives
Slide 5: Executive Summary
5 EXECUTIVE SUMMARY ▪ BSPRT made $303mm in new investments in Q2 2017. ▪ For the quarter ending 6/30/2017, Net Income was $0.20 per share or $6.28 million vs . $0.19 per share or $6.05 million for the quarter ending 3/31/2017. ▪ Book Value was $19.29 per share at 6/30/2017 vs. $19.62 per share at 3/
Slide 6: Section I – Overview of Adviser
6 Section I – Overview of Adviser — Benefit Street Partners L.L.C. (“BSP”)
Slide 7: Adviser: BSP Overview
7 Section I - Overview of Adviser: BSP Overview Assets / Committed Capital Under Management $22 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 $3.0+ billion of commercial mortgages since inception in 2014. ▪
Slide 10: Section II – Trust
10 Section II – Overview of BSP Realty Trust
Slide 11: Trust: 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: Trust: Loan Portfolio Snapshot
12 Section II - Overview of BSP Realty Trust: Loan Portfolio Snapshot ▪ 70 Portfolio Loans ▪ $1.3 Billion in Outstanding Par Amount ▪ 13.0 % Weighted Average Levered Yield 1 ▪ 93.4% Senior Loans ▪ 95.5% Floating Rate ▪ 72.8% Loan to Value 2 Loan Type Fixed vs. Floating Source: SEC filings as of 8/11
Slide 13: Trust: 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 8/11/17 33% 32% 18% 9% 4% 4% Multifamily Office Retail Hospitality Industrial Mixed Use 22% 18% 17% 14% 13% 8% 6% 1% Southeast Southwest Great
Slide 14: 2Q17 Financial Update: Credit Quality
14 14 Section III – 2Q17 Financial Update: Credit Quality Loans in non - accrual status Loans on watchlist None None Average Risk Rating 2.2 Investment Rating Summary Description 1 Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since t
Slide 15: Trust: Portfolio Composition
15 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 8/11/17. Note: PAST PERFORMANCE IS NOT NECESSARILY INDICATIV
Slide 16: Trust: 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 8/11/17. Note: PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ANY INVESTMENT INVOLVES SIGNIFICANT RISK, INCLUDING LOSS O F T HE ENTIRE INVESTMENT. 21.20 21.51
Slide 17: Trust: Financing Sources
17 Section II - Overview of BSP Realty Trust : Financing Sources Source: SEC filings as of 8/11/17. JPM • $300mm Line • Libor + 225 to 250 • June 2019 Maturity (+1 year extension option) • $116mm drawn Goldman Sachs • $250mm Line • Libor + 235 to 285 • December 2018 Maturity (+1 year extension optio
Slide 18: Trust: BSPRT CLO Issuance
18 Section II - Overview of BSP Realty Trust : BSPRT CLO Issuance Source: SEC filings as of 8/11/17. BSPRT 2017 - FL1 Capital Structure Class of Securities MDYS/KBRA/DBRS SPREAD SIZE Tranche A Aaa/ AAA/AAA L + 135 $223.6mm Tranche B Baa2/AA(high)/AA + L + 240 $48.0mm Tranche C NR/BBB(low)/BBB - L +
Slide 19: Trust: Experienced Board and Management Team
19 Richard J. Byrne Chief Executive Officer and President Jerome S. Baglien Chief Financial Officer and Treasurer Elizabeth K. Tuppeny Independent Director Peter J. McDonough Independent Director Richard J. Byrne Chairman BSP Realty Trust Board of Directors BSP Realty Trust Officers Jamie Handwerker
Slide 20: Section III – 2Q17 Financial Update
20 Section III – 2Q17 Financial Update
Slide 21: 2Q17 Financial Update: Financial Highlights
21 Section III – 2Q17 Financial Update: Financial Highlights ($’s in thousands, where applicable) Source: SEC filings as of 8/11/17 . Note: PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ANY INVESTMENT INVOLVES SIGNIFICANT RISK, INCLUDING LOSS O F T HE ENTIRE INVESTMENT. (1) Debt
Slide 22: 2Q17 Financial Update: Portfolio Activity
Financing the Growth of Commercial Real Estate 22 Section III – 2Q17 Financial Update: Portfolio Activity Source: SEC filings as of 8/11/17 . Note: PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ANY INVESTMENT INVOLVES SIGNIFICANT RISK, INCLUDING LOSS O F T HE ENTIRE INVESTMENT .
Slide 23: Section IV – Strategic Initiatives
23 Section IV – Strategic Initiatives
Slide 24: Strategic Initiatives
24 Source: SEC filings as of 8/11/17 . 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 origi
Slide 25: Risk Factors
25 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 26: 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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