Franklin Bsp Realty Trust, Inc. · NYSE:FBRT
Franklin Bsp Realty Trust — Q4 2024 Earnings Presentation
27 slides from Franklin Bsp Realty Trust's earnings presentation, Feb 14, 2025
Slide 1: Fourth Quarter 2024 Supplemental Information
Fourth 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 December 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”
Slide 3: FBRT 4Q 2024 Financial Update
FBRT 4Q 2024 Financial Update
Slide 4: Highlights
FBRT 4Q 2024 Financial Update Highlights Earnings • GAAP Net Income of $30.2 million and $0.29 per diluted common share and $0.29 per fully converted share (1) • Distributable Earnings (2) of $31.2 million and $0.30 per fully converted share (1) • Declared a cash dividend of $0.355 per share, repres
Slide 5: Financial Highlights
FBRT 4Q 2024 Financial Update Financial Highlights Income Statement Balance Sheet - Assets (End of Quarter) Net interest income $47.3 Total core portfolio $4,908.7 Operating expenses (1) (17.8) Total real estate securities 203.0 Provision for credit loss (0.9) Cash and restricted cash 196.9 Other in
Slide 6: Earnings & Distributions
FBRT 4Q 2024 Financial Update Earnings & Distributions Distributable Earnings ($M) (1) GAAP Net Income (Loss) ($M) $41.0 $35.8 $32.4 $31.2 $30.2 $30.2 -$4.0 -$3.8 1Q'24 2Q'24 3Q'24 4Q'24 1Q'24 2Q'24 3Q'24 4Q'24 1Q'24 2Q'24 3Q'24 4Q'24 $0.355 $0.355 $0.355 $0.355 Dividend per share $0.41 $0.31 ($0.10
Slide 7: Core Net Fundings
FBRT 4Q 2024 Financial Update Core Net Fundings 4Q 2024 ($M) FY 2024 ($M) $205 $1,704 $62 $415 $5,165 Total Commitment $5,000 of $441M ($641) ($1) ($1,642) $5,045 $5,000 Total Commitment ($312) of $2,034M (1 ) (1 ) 3Q24 Loans Fundings on Fundings on Repayments REO/ (2 ) 4Q24 Loans 4Q23 Loans Funding
Slide 8: Capitalization Overview
FBRT 4Q 2024 Financial Update Capitalization Overview Average debt cost including financing was 7.4% in 4Q24 vs. 7.9% in 3Q24 Financing Sources (1) Net Leverage (2) Warehouse 8% 3.00x Repo - Securities 5% 2.56x Asset Specific Financings 2.50x 1% Unsecured Debt 2% 2.00x 1.50x 1.00x 0.50x 0.30x Collat
Slide 9: Financing Detail
FBRT 4Q 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 $344 million Ended S + 1.64% Barclays (Warehouse) $500 million BSPRT 2021-FL7 $393 million Ended S + 1.90% Wells Fargo $400 millio
Slide 10: Liquidity
FBRT 4Q 2024 Financial Update Liquidity Liquidity ($M) $339 $535 $184 $12 Unrestricted CLO Reinvestment Financing Total Cash Available Available & Liquidity (1) In Progress 1. Represents cash available at 12/31/2024 that we can invest at a market advance rate utilizing our available capacity on fina
Slide 11: Portfolio
Portfolio O2
Slide 12: Core Loan Portfolio Composition
Portfolio Core Loan Portfolio Composition Portfolio Overview Portfolio Summary Rate Type • $5.0B total portfolio; 62.9% WA LTV (1) Senior Fixed 99% 7% • 145 senior loans; average UPB (2) of $34M • 10 mezzanine loans; average UPB (2) of $4M Mezzanine Floating • 3 non-performing loans (3) 1% 93% Colla
Slide 13: Core Originations in the Quarter
Portfolio Core Originations in the Quarter Overview By Collateral Hospitality 7% • 18 loans; $441 million total commitment ($415 million of Industrial initial funding / $26 million of future funding) 9% • 3.44% weighted average spread; 7.79% all-in coupon (1) Other 16% • 0.9% and 0.5% weighted avera
Slide 14: Core Portfolio - Watch List Loans (Risk Rating 4&5)
Portfolio Core Portfolio - Watch List Loans (Risk Rating 4&5) Investment Suburban Office Park CBD Office Building 376-Unit Apartment Community 307-Unit Student Housing Community Loan Type Floating Rate Senior Loan Floating Rate Senior Loan Floating Rate Senior Loan Floating Rate Senior Loan Investme
Slide 15: Foreclosure Real Estate Owned (REO)
Portfolio Foreclosure Real Estate Owned (“REO”) Multi Property Loan 16-Building 144-Unit 471-Unit 426-Unit 224-Unit 397-Unit 76-Unit 122-Unit 50-Unit Single Tenant CBD Apartment Apartment Apartment Apartment Apartment Apartment Apartment Apartment Apartment Investment Retail Portfolio Office Complex
Slide 16: Appendix
Appendix
Slide 17: Core Portfolio – FBRT Portfolio Details – Top 15 Loans
Appendix Core Portfolio – FBRT Portfolio Details – Top 15 Loans Effective Fully Extended (1) (2) Loan Loan Type Origination Date Par Value Amortized Cost Spread Yield Maturity State Collateral Type As-is LTV Loan 1 Senior Loan 5/10/24 117 116 + 2.50% 6.83% 5/9/29 Connecticut Multifamily 50.7% Loan 2
Slide 18: Core Portfolio – Risk Ratings
Appendix Core Portfolio – Risk Ratings Average risk rating was 2.3 for the quarter vs. 2.2 in 3Q24 Risk Ratings 76.1% 20.1% 1.1% 2.7% 0.0% Risk Rating 1 2 3 4 5 Principal Balance - 3,804 1,004 57 135 Loan Count, 3Q24 - 127 27 1 2 (+) Addition - 18 4 1 1 (-) Reduction - (21) (4) (1) - Loan Count, 4Q2
Slide 19: Earnings Sensitivity
Appendix Earnings Sensitivity Positive earnings correlation to falling rates due to rate floor activations EPS Sensitivity on Index Rates As of 1/22/25: 1M SOFR: 4.30% As of 12/31/24: $0.07 1M SOFR: 4.33% $0.00 $0.01 $0.01 ($0.01) -1.50% -1.00% -0.50% 12/31/2024 +0.25% Change in Floating Base Rate I
Slide 20: Core Portfolio – Fully Extended Maturities
Appendix Core Portfolio – Fully Extended Maturities Fully Extended Maturity by Year $1,574 $1,259 $894 $843 $413 $17 2025 2026 2027 2028 2029 2030 Note: All numbers in millions. Excludes loans on non-accrual and loans in maturity default at 12/31/2024 BENEFIT STREET PARTNERS | ALCENTRA 20
Slide 21: Core Portfolio – Allowance For Loan Loss
Appendix Core Portfolio – Allowance For Loan Loss Total Allowance for Credit Loss by Collateral Type All Other 5% Hospitality 12% Multifamily 47% Office 36% As % of 3Q24 Change 4Q24 UPB Total UPB General CECL Provision $49.6 ($1.6) $48.0 $4,865 1.0% Specific CECL Provision 28.7 2.5 31.2 $135 0.6% To
Slide 22: GAAP Net Income to Distributable Earnings Reconciliation
Appendix GAAP Net Income to Distributable Earnings Reconciliation 4Q'24 3Q'24 2Q'24 1Q'24 GAAP Net Income (Loss) 30.2 30.2 (3.8) 35.8 Adjustments: Unrealized (Gain) / Loss (1) (1.5) 2.5 6.3 (0.3) Subordinated Performance Fee (2) (1.4) (3.4) (2.2) (0.6) Non-Cash Compensation Expense 2.2 2.1 2.1 1.8 D
Slide 23: Book Value Per Share & Shares Outstanding
Appendix Book Value Per Share & Shares Outstanding December 31, 2024 December 31, 2023 Stockholders' equity applicable to convertible common stock $ 1,343,568 $ 1,390,120 Shares: Common stock 81,788,091 81,942,656 Restricted stock and restricted stock units 1,278,698 809,257 Series H convertible pre
Slide 24: FBRT Income Statement
Appendix FBRT Income Statement Year Ended December 31, 2024 2023 2022 Income Interest income $ 526,076 $ 552,506 $ 357,705 Less: Interest expense 338,471 305,577 160,526 Net interest income 187,605 246,929 197,179 Revenue from real estate owned 22,849 17,021 9,655 Total income $ 210,454 $ 263,950 $
Slide 25: FBRT Balance Sheet
Appendix FBRT Balance Sheet December 31, 2024 December 31, 2023 ASSETS Cash and cash equivalents $ 184,443 $ 337,595 Restricted cash 12,421 6,092 Commercial mortgage loans, held for investment, net of allowance for credit losses of $78,083 and $47,175 as of December 31, 2024 4,908,667 4,989,767 and
Slide 26: 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 27: Office Locations
New York London Boston West Palm Beach One Madison Avenue Cannon Place 100 Federal Street 360 South Rosemary Avenue Suite 1600 78 Cannon Street 22nd Floor Suite 1510 New York London Boston West Palm Beach NY 10010 EC4N 6HL MA 02110 FL 33401 USA UK USA USA www.benefitstreetpartners.com www.alcentra.c
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