Franklin Bsp Realty Trust, Inc. · NYSE:FBRT
Franklin Bsp Realty Trust — Q2 2025 Earnings Presentation
33 slides from Franklin Bsp Realty Trust's earnings presentation, Jul 31, 2025
Slide 1: Franklin BSP Realty Trust Second Quarter 2025 Supplemental Information
Second Quarter 2025 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 June 30, 2025 and does not reflect subsequent developments. Risk Factors Investing in and owning our common stock involves a high degree of risk. For a discussion of these risks, see the se
Slide 3: FBRT 2Q 2025 Financial Update
FBRT 2Q 2025 Financial Update
Slide 4: Highlights
FBRT 2Q 2025 Financial Update Highlights Earnings • GAAP Net Income of $24.4 million and $0.19 per diluted common share and $0.21 per fully converted share (1) • Distributable Earnings (2) of $29.0 million and $0.27 per fully converted share (1) • Declared a cash dividend of $0.355 per share, repres
Slide 5: NewPoint Strategic Rationale
FBRT 2Q 2025 Financial Update NewPoint Strategic Rationale This Transaction Adds Capital-Light Businesses and Long-Term Assets to FBRT 1 2 Agency Licenses CRE Servicing Provides highly sought-after Agency Enhances income stability, predictability and licenses allowing FBRT to directly duration throu
Slide 6: Expanding FBRT's Multifamily Lending Capabilities with NewPoint
FBRT 2Q 2025 Financial Update Expanding FBRT’s Multifamily Lending Capabilities with NewPoint FBRT is a One Stop Shop Supporting the Entire Multifamily Lending Lifecycle FBRT Capabilities Loan Type Pre-Acquisition Post-Acquisition Originations Servicing Originations Servicing Construction Loans (2-3
Slide 7: Financial Highlights
FBRT 2Q 2025 Financial Update Financial Highlights Income Statement Balance Sheet - Assets (End of Quarter) Net interest income $41.0 Total core portfolio $4,482.2 (1) Operating expenses (18.1) Total real estate securities 83.4 (Provision) / Benefit for credit loss $1.5 Cash and restricted cash 422.
Slide 8: Path to Dividend Coverage
FBRT 2Q 2025 Financial Update Path to Dividend Coverage We have three key earnings opportunities that we expect to bring us back to full dividend coverage: 1. Calling older CLOs that are outside of their reinvestment period and investing the liquidity into new originations 2. Reinvestment of equity
Slide 9: Earnings & Distributions
FBRT 2Q 2025 Financial Update Earnings & Distributions Distributable $36.0 Earnings ($M) (1) GAAP Net Income (Loss) ($M) $31.7 (2) $32.5 (2) $31.2 $31.9 (2) $30.2 $30.2 $29.0 $25.1 (2) $23.7 $24.4 -$4.0 -$6.2 3Q'24 4Q'24 1Q'25 2Q'25 3Q'24 4Q'24 1Q'25 2Q'25 3Q'24 4Q'24 1Q'25 2Q'25 $0.355 $0.355 $0.35
Slide 10: Core Net Fundings
FBRT 2Q 2025 Financial Update Core Net Fundings 2Q 2025 ($M) YTD 2025 ($M) $94 $317 $5,000 $56 $35 $4,801 Total Commitment of $402M Total Commitment ($670) of $61M $4,538 $4,538 ($317) ($37) ($203) (1 ) (1 ) 1Q25 Loans Fundings on Fundings on Repayments REO/ (2 ) 2Q25 Loans 4Q24 Loans Fundings on Fu
Slide 11: Capitalization Overview
FBRT 2Q 2025 Financial Update Capitalization Overview Average debt cost including financing was 7.1% in 2Q25 vs. 6.9% in 1Q25 Financing Sources (1) Net Leverage (2) Warehouse 14% 2.50x Unsecured Debt 2.24x 5% Repo - Securities 3% 2.00x Asset Specific Financings 1% 1.50x 1.00x 0.50x 0.32x Collaterali
Slide 12: Financing Detail
FBRT 2Q 2025 Financial Update Financing Detail CLOs Warehouse/Revolver/Other Debt Reinvest Cost of CLO Name Amount(1) End Date Debt(2) Name Commitment (3) BSPRT 2021-FL6 $214 million Ended S + 1.96% Barclays (Warehouse) $500 million BSPRT 2021-FL7 $374 million Ended S + 1.93% Wells Fargo $400 millio
Slide 13: Liquidity
FBRT 2Q 2025 Financial Update Liquidity Liquidity ($M) $79 $345 $501 $414 $156 -$337 Unrestricted CLO Reinvestment NewPoint Proforma Cash/ Financing Total (1) Cash Available Transaction Reinvest Available & Liquidity (2) In Progress 1. On July 1, 2025, the Company completed the previously announced
Slide 14: NewPoint Disclosure
FBRT 2Q 2025 Financial Update NewPoint Disclosure NewPoint Guidelines 1H 2025 FY 2025 FY 2026 Agency/FHA Volume $1.9B $4.0B - $4.5B $5.0B - $6.0B GAAP Net Income $15M $23M - $27M $35M - $45M Distributable Earnings $10M $13M - $17M $22M - $28M Additional Guidelines • NewPoint’s earnings contribution
Slide 15: Portfolio
Portfolio O2
Slide 16: Core Loan Portfolio Composition
Portfolio Core Loan Portfolio Composition Portfolio Overview Portfolio Summary Rate Type • $4.5B total portfolio; 63.3% WA LTV (1) Senior Fixed 12% 99% • 135 senior loans; average UPB (2) of $33M • 10 mezzanine loans; average UPB (2) of $4M • 2 non-performing loans (3) Mezzanine Floating 1% 88% Coll
Slide 17: Core Originations in the Quarter
Portfolio Core Originations in the Quarter Overview By Collateral • 5 loans; $61 million total commitment ($56 million of initial Industrial funding / $5 million of future funding) 11% • 3.84% weighted average spread; 8.16% all-in coupon (1) Office 6% • 0.2% and 0.4% weighted average origination and
Slide 18: Portfolio Vintage Detail
Portfolio Portfolio Vintage Detail Pre-Rate Hike Book Total Commitment Post-Rate Hike Book Total Commitment Collateral Type $ % Collateral Type $ % Multifamily 1,711 79% Multifamily 1,929 71% Hospitality 196 9% Hospitality 444 16% Industrial 76 4% Industrial 220 8% Office 137 6% Office - 0% Mixed Us
Slide 19: Office Portfolio
Portfolio Office Portfolio • Excluding our triple net leased office loan, our traditional multi-tenant office exposure is only 2.2% of our total portfolio Carrying/Book CV/BV Recorded Loan/Asset Location % Written Down Status Value PSF CECL Office Loan Triple Net Lease 1 (1) Acton, MA $59.7 $170 - —
Slide 20: Core Portfolio - Watch List Loans (Risk Rating 4&5)
Portfolio Core Portfolio - Watch List Loans (Risk Rating 4&5) Investment Loan Type Investment Date Default Date Non-Performing Collateral Loan Purpose Location Loan Risk Rating Floating Rate Suburban Office Park Q4 2019 None Yes Office Acquisition Alpharetta, GA 5 Senior Loan Floating Rate 307-Unit
Slide 21: Foreclosure Real Estate Owned (REO)
Portfolio Foreclosure Real Estate Owned (“REO”) • Over the past two years, we’ve taken 19 properties into REO. These REOs represented 13 investments and had $560M of unpaid principal balance at the time of transfer to REO • We’ve sold 10 of those properties for approximately $270M, including three t
Slide 22: Appendix
Appendix
Slide 23: Core Portfolio – FBRT Portfolio Details – Top 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% 6.82% 5/9/29 Connecticut Multifamily 50.7% Loan 2
Slide 24: Core Portfolio – Risk Ratings
Appendix Core Portfolio – Risk Ratings Average risk rating was 2.3 for the quarter vs. 2.2 in 1Q25 Risk Ratings 76.4% 18.3% 4.8% 0.0% 0.5% Risk Rating 1 2 3 4 5 Principal Balance - 3,467 829 220 23 Loan Count, 1Q25 - 126 20 5 1 (+) Addition - 4 7 3 - (-) Reduction - (16) (4) (1) - Loan Count, 2Q25 -
Slide 25: Earnings Sensitivity
Appendix Earnings Sensitivity Positive earnings correlation to falling rates due to rate floor activations EPS Sensitivity on Index Rates As of 7/14/25: 1M SOFR: 4.32% As of 6/30/25: $0.11 1M SOFR: 4.32% $0.03 $0.00 $0.00 $0.00 -1.50% -1.00% -0.50% 6/30/2025 +0.25% Change in Floating Base Rate Indic
Slide 26: Core Portfolio – Fully Extended Maturities
Appendix Core Portfolio – Fully Extended Maturities Fully Extended Maturity by Year $1,174 $1,154 $1,033 $798 $348 $30 2025 ROY 2026 2027 2028 2029 2030 Note: All numbers in millions. BENEFIT STREET PARTNERS | ALCENTRA 26
Slide 27: Core Portfolio – Allowance For Loan Loss
Appendix Core Portfolio – Allowance For Loan Loss Total Allowance for Credit Loss by Collateral Type All Other 4% Hospitality 13% Office 2% Multifamily 81% Provision/ As % of 1Q25 Write offs 2Q25 UPB (Benefit) Total UPB General CECL Provision $46.4 ($2.6) - $43.8 $4,515 1.0% Specific CECL Provision
Slide 28: GAAP Net Income to Distributable Earnings Reconciliation
Appendix GAAP Net Income to Distributable Earnings Reconciliation 2Q'25 1Q'25 4Q'24 3Q'24 GAAP Net Income (Loss) 24.4 23.7 30.2 30.2 Adjustments: Unrealized (Gain) / Loss (1) (2.5) 3.3 (1.5) 2.5 (2) (0.8) 0.3 (1.4) (3.4) Subordinated Performance Fee Non-Cash Compensation Expense 2.3 2.2 2.2 2.1 Depr
Slide 29: Book Value Per Share & Shares Outstanding
Appendix Book Value Per Share & Shares Outstanding June 30, 2025 December 31, 2024 Stockholders' equity applicable to convertible common stock $ 1,319,726 $ 1,343,568 Shares: Common stock 82,214,630 81,788,091 Restricted stock and restricted stock units 1,469,232 1,278,698 Series H convertible prefe
Slide 30: FBRT Income Statement
Appendix FBRT Income Statement Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Income Interest income $ 111,171 $ 133,553 $ 225,079 $ 264,111 Less: Interest expense 70,213 86,740 140,806 168,058 Net interest income 40,958 46,813 84,273 96,053 Revenue from real estate owned
Slide 31: FBRT Balance Sheet
Appendix FBRT Balance Sheet June 30, 2025 December 31, 2024 ASSETS Cash and cash equivalents $ 414,085 $ 184,443 Restricted cash 8,695 12,421 Commercial mortgage loans, held for investment, net of allowance for credit losses of $43,241 and $78,083 as of June 30, 2025 and 4,482,201 4,908,667 December
Slide 32: 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 33: New York London Boston West Palm Beach
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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