Franklin Bsp Realty Trust, Inc. · NYSE:FBRT
Franklin Bsp Realty Trust — Q4 2021 Earnings Presentation
23 slides from Franklin Bsp Realty Trust's earnings presentation, Feb 24, 2022
Slide 1: Franklin BSP Realty Trust Supplemental Information
Franklin BSP Realty Trust Supplemental Information 2021, Fourth Quarter
Slide 2: Important Information
Important Information The information herein relates to the Company’s business and financial information as of December 31, 2021 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 2021 Financial Update
FBRT 4Q 2021 Financial Update 3
Slide 4: Fourth Quarter 2021 Highlights
FBRT 4Q 2021 Financial Update: Fourth Quarter 2021 Highlights Earnings ― GAAP Net Income of ($72.9) million or ($0.93) per fully converted share (1) ― Distributable Earnings(2) of $34.6 million or $0.36 per fully converted share (1), 8.2% ROE ― Declared a cash dividend of $0.355 per share, represent
Slide 5: QTD Highlights
FBRT 4Q 2021 Financial Update: QTD Highlights Income Statement Balance Sheet Net interest income / other income $55.1 Core loan total commitment in the quarter $1,555.7 Conduit GAAP net income (0.6) Total core portfolio - end of quarter $4,211.1 (1) Operating expenses (10.9) Provision for credit los
Slide 6: Earnings and Distributions
FBRT 4Q 2021 Financial Update: Earnings and Distributions Distributable Earnings ($M) (1) GAAP Net Income ($M) $38.5 $32.8 $30.1 $30.0 $40.0 $21.5 $34.6 $32.7 $31.3 $26.6 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 $13.1 ($72.9) 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 $0.275 $0.275 $0.275 $0.275 $0.355 $0.355 D
Slide 7: Core Loan Originations
FBRT 4Q 2021 Financial Update: Core Loan Originations 4Q 2021 FY 2021 $3,164 Total Total Commitment Commitment $1,556 $4,815 $4,815 Total Commitment $3,795 Total Commitment $3,006 +$1.0Bn +$1.8Bn Total Total Commitment Commitment (1) (1) Note: All numbers in millions. Numbers in charts above represe
Slide 8: Capitalization Overview
FBRT 4Q 2021 Financial Update: Capitalization Overview Net Leverage Financing Lines Commitment (1) 5.00x Warehouse/Revolver/Other 4.09x 4.00x JP Morgan $400 million 2.90x Wells Fargo $450 million 3.00x Credit Suisse $300 million 2.00x Barclays (Warehouse) $500 million 1.00x Barclays (Secured Revolve
Slide 9: Portfolio
Portfolio 9
Slide 10: Portfolio: ARMs Securities
Portfolio: ARMs Securities ARMs Portfolio Balances ($M) and Marks , 00 $8 Balance Marks .0 110 $7,134 $6,841 .0 109 $6,295 , 00 $7 .0 108 , 00 $6 .0 107 , 00 $5 $4,779 $4,567 .0 106 , 00 $4 .0 105 .0 104 , 00 $3 $104.1 $103.5 $103.6 .0 103 $103.2 , 00 $2 $103.0 .0 102 , 00 $1 .0 101 $0 .0 100 9/30/2
Slide 11: 1Q 2022 ARMs Update
Portfolio: 1Q 2022 ARMs Update As of February 18, 2022: ‒ Value of the ARMs portfolio was $2.4 billion ‒ The reduction in the value of the ARMs portfolio from January 1, 2022 to February 18, 2022 is due in part to: ▪ $1.8 billion of sales ▪ $265 million of principal payments ‒ From January 1, 2022 t
Slide 12: Core Loan Portfolio Composition
Portfolio: Core Loan Portfolio Composition Portfolio Overview Portfolio Summary Collateral Summary − Total core portfolio of Senior Multifamily 70% 99.5% $4.2 billion − 161 senior loans with average size of ~$26 million Office 11% − 4 mezzanine loans with Other average size of ~$6 Mezzanine 0.5% 1%
Slide 13: Core Originations in the Quarter
Portfolio: Core Originations in the Quarter Overview By Collateral Retail Other Industrial 2% 2% − Originated 38 loans for a total 3% commitment of $1.6 billion ($1.5 billion of initial funding and $93 million of future funding) − Weighted average spread of 3.4% with an all-in coupon of 3.5% Multifa
Slide 14: Appendix
Appendix 14
Slide 15: Core Portfolio - FBRT Portfolio Details – Top Loans
Appendix: Core Portfolio - FBRT Portfolio Details – Top 15 Loans Origination Total Principal Fully Extended (1) Loan Type Date Commitment Balance Carrying Value Spread All-in Yield Maturity State Collateral Type As-is LTV Loan 1 Senior Loan 10/8/21 $89 $89 $88 + 2.75% + 3.07% 10/9/26 District of Col
Slide 16: Core Portfolio - Risk Ratings
Appendix: Core Portfolio - Risk Ratings Our average risk rating was 2.1 for the quarter vs. 2.1 last quarter 92.0% 6.7% 0.0% 1.3% 0.0% 1 2 3 4 5 # of Loans 0 148 16 1 0 +/- vs 3Q’21 - +18 -3 - - Principal $- $3,903 $283 $57 $- Balance Non-Accrual - - - 1 - 16 Note: All numbers in millions.
Slide 17: Core Portfolio - Index Floors
Appendix: Core Portfolio - Index Floors − As of 12/31/2021, 113 floating rate loans out of 161(1) floating rate loans in our portfolio have index floors activated (all floating rate loans have either 1-month LIBOR or 1-month SOFR as reference index) − The weighted average index floor of our portfoli
Slide 18: Core Portfolio - Case Study: Watch List Loans (Risk Rating 4&5)
Appendix: Core Portfolio - Case Study: Watch List Loans (Risk Rating 4&5) Investment Brooklyn Hotel Loan Type Floating Rate Senior Loan Investment Date 12/1/2017 Default Date 6/9/2019 Collateral 147-Key Hotel Loan Purpose Refinance Location Brooklyn, New York Total Commitment $57 million Current Pri
Slide 19: Core Portfolio – Allowance For Loan Loss
Appendix: Core Portfolio – Allowance For Loan Loss Allowance for Loan Loss by Collateral Type $ millions Retail Industrial Other 2% 1% Allowance for Loan Loss Balance at 9/30/21 $15.8 1% Mixed Use Hospitality 1% Reversal of Provision for Credit Loss 0.3 17% Office 9% Allowance for Loan Loss Balance
Slide 20: GAAP Net Income to Distributable Earnings Reconciliation
Appendix: GAAP Net Income to Distributable Earnings Reconciliation 1Q'21 2Q'21 3Q'21 4Q'21 GAAP Net Income 30.1 30.0 38.5 (72.9) Adjustments: Impairment of Acquired Assets (1) - - - 88.3 CLO Amortization Acceleration/CLO Call (2) (0.7) (0.8) (0.9) 2.7 Unrealized (Gain)/Loss Reversal (3) (2.6) 2.5 (0
Slide 21: Book Value Per Share & Shares Outstanding
Appendix: Book Value Per Share & Shares Outstanding December 31, 2021 December 31, 2020 Stockholders' equity applicable to convertible common stock $ 1,543,550 $ 1,007,698 Shares Common stock 43,951,382 44,494,496 Restricted stock 14,546 15,555 Series A convertible preferred stock — 12,122,088 Serie
Slide 22: FBRT Income Statement
Appendix: FBRT Income Statement Year Ended December 31, 2021 2020 2019 Interest Income: Interest income $ 216,890 $ 179,872 $ 195,299 Less: Interest expense 60,835 66,556 90,418 Net interest income 156,055 113,316 104,881 Revenue from real estate owned 4,759 4,299 3,169 Total Income $ 160,814 $ 117,
Slide 23: FBRT Balance Sheet
Appendix: FBRT Balance Sheet December 31, 2021 December 31, 2020 ASSETS Cash and cash equivalents $ 154,929 $ 82,071 Restricted cash 13,270 10,070 Commercial mortgage loans, held for investment, net of allowance of $15,827 and $20,886 as of December 31, 2021 and December 31, 2020, respectively 4,211
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