Franklin Bsp Realty Trust, Inc. · NYSE:FBRT
Franklin Bsp Realty Trust — Q3 2021 Earnings Presentation
31 slides from Franklin Bsp Realty Trust's earnings presentation, Nov 12, 2021
Slide 1: Franklin BSP Realty Trust Supplemental Information Third Quarter 2021
Franklin BSP Realty Trust Supplemental Information Third Quarter 2021
Slide 2: Important Information
Important Information The information herein relates to the Company’s business and financial information as of September 30 , 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 Fact
Slide 3: Highlights
Highlights 3
Slide 4: Third Quarter 2021 Highlights
Third Quarter 2021 Highlights 4 1. Assumes conversion of all FBRT preferred shares to common equity (does not include any Capstead equity). Please see appendix for details. 2. Please see appendix for GAAP net income to distributable earnings calculation and definition. 3. FBRT stand alone GAAP book
Slide 5: FBRT Merger with Capstead
FBRT Merger with Capstead 5
Slide 6: FBRT Merger with Capstead: Transaction Highlights
FBRT Merger with Capstead: Transaction Highlights 6 Compelling Business Combination ▪ Created the 4 th largest publicly - traded commercial mortgage REIT with nearly $2 billion in pro forma equity; new capital is additive to an existing and seasoned book of commercial mortgages focused on multifamil
Slide 7: FBRT Merger with Capstead: Strategic Combination with Significant Scale
$4.9 $ 4 . 3 $2.3 $ 1 . 9 $ 1 . 7 $ 1 . 5 $ 1 . 4 $ 1 . 3 $ 1 . 2 $ 1 . 1 $ 0 . 9 $ 0 . 7 Starwood Blackstone Apollo CRE Pro Forma BrightSpire Ladder TPG RE Ready KKR Real FBRT Granite Ares Property Mortgage Finance FBRT (1) Capital Capital Corp Finance Capital Estate Point Commercial Trust Trust Tr
Slide 8: FBRT Merger with Capstead: FBRT Key Differentiators
FBRT Merger with Capstead: FBRT Key Differentiators 8 Strong Team/Sponsorship Diversified Portfolio of Senior, Floating Rate Loans Differentiated Strategy is Intended to Produce Best Risk/Reward Attractive NIM Spread & Leverage Conservative and Flexible Balance Sheet Credit Focused Culture
Slide 9: 3Q2021 Financial Update Capstead
3Q2021 Financial Update Capstead 9
Slide 10: Capstead 3Q 2021 Financial Update: QTD Highlights
Capstead 3Q 2021 Financial Update: QTD Highlights 10 Income Statement Net interest income $ 15 . 1 Balance Sheet Total securities $ 7 , 134 . 1 Other (expense) / income ( 4 . 7 ) Total assets $ 7 , 464 . 0 GAAP net income $ 10 . 4 Debt GAAP net income per share $ 0 . 0 6 Secured Borrowings 6 , 464 .
Slide 11: 3Q2021 Financial Update Franklin BSP Realty Trust (excludes Capstead)
3Q2021 Financial Update Franklin BSP Realty Trust (excludes Capstead) 11
Slide 12: FBRT 3Q 2021 Financial Update: QTD Highlights
FBRT 3Q 2021 Financial Update: QTD Highlights 12 Note: All numbers in millions except per share and share data. 1. Does not include conduit operating expenses which are reported under conduit GAAP net income 2. Assumes conversion of all FBRT preferred shares to common equity (does not include any Ca
Slide 13: FBRT 3Q 2021 Financial Update: Core Loan Originations
FBRT 3Q 2021 Financial Update: Core Loan Originations 13 Note: All numbers in millions. Data is for FBRT only and does not include any CMO financials for 9/30/21. Numbers above based on principal balance. 1. Includes full paydowns, partial paydowns and amortization. 3Q 2021 2021 Year to Date Total C
Slide 14: FBRT 3Q 2021 Financial Update: Core Portfolio Growth
FBRT 3Q 2021 Financial Update: Core Portfolio Growth 14 Core Portfolio (Principal Balance) $3,27 3 $ 2 , 2 2 2 $ 2 , 7 7 1 $2,72 3 2018 2019 2020 3 Q ' 21 Note: All numbers in millions. Data is for FBRT only and does not include any CMO financials for 9/30/21.
Slide 15: FBRT 3Q 2021 Financial Update: Earnings and Distributions
FBRT 3Q 2021 Financial Update: Earnings and Distributions 15 Note: All numbers in millions except per share data. Data is for FBRT only and does not include any CMO results for the quarter ended 9/30/21. 1. Please see appendix for GAAP net income to distributable earnings calculation. 2. Assumes con
Slide 16: FBRT 3Q 2021 Financial Update: Capitalization Overview
Collateralized Loan Obligations 71% W a r eh o u s e 24% Asset Specific Financings 2% C o r p o ra te Revolver 2% FBRT 3Q 2021 Financial Update: Capitalization Overview 16 Note: Data is for FBRT only and does not include any CMO financials for 9/30/21. 1. Commitment for loans. Excludes bond repurcha
Slide 17: FBRT 3Q 2021 Financial Update: Core Loan Portfolio Composition
FBRT 3Q 2021 Financial Update: Core Loan Portfolio Composition 17 Note: Data is for FBRT only and does not include any CMO financials for 9/30/21. 1. Excludes the one non - accrual loan. Me z zanine 0.7% Senior 99 .3% New England 2% Mideast 13% Great La kes 4 % P lains 3% S o utheast 32% S o uthwes
Slide 18: Appendix
Appendix 18
Slide 19: Core Portfolio - FBRT Portfolio Details – Top Loans
Appendix: Core Portfolio - FBRT Portfolio Details – Top 15 Loans 19 Loan Type Origination Date Total Commitment Principal Balance Carrying Value Spread All - in Yield (1) Fully Extended Maturity State Collateral Type As - is LTV Loan 1 Senior Loan 9/30/20 $76 $76 $76 + 4.10% + 4.94% 10 / 9 / 2 5 Flo
Slide 20: Core Portfolio - Risk Ratings
Appendix: Core Portfolio - Risk Ratings 20 0 . 0 % Our average risk rating was 2.1 for the quarter vs. 2.2 last quarter 88.6% 9 .6 % 1 . 7 % 0 . 0 % 1 2 3 4 5 # of Loans 0 130 19 1 0 +/ - vs 2Q’21 - +5 - 3 - - Principal Balance $ - $2,901 $316 $57 $ - Non - Accrual - - - 1 - Note: All numbers in mil
Slide 21: Core Portfolio - LIBOR Floors
Appendix: Core Portfolio - LIBOR Floors 21 1. 143 floating rate loans represents only loans in the portfolio that have a floating rate and not the total core portfolio of loans. As of 9/30/2021, 124 floating rate loans out of 143 (1) floating rate loans in our portfolio have LIBOR floors activated
Slide 22: Core Portfolio - Case Study: Watch List Loans (Risk Rating 4&5)
Appendix: Core Portfolio - Case Study: Watch List Loans (Risk Rating 4&5) 22 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 Curren
Slide 23: Core Portfolio – Allowance For Loan Loss
Appendix: Core Portfolio – Allowance For Loan Loss 23 Allowance for Loan Loss by Collateral Type H o s p it a l it y 41% M u l ti F a m i l y 40% R e t a i l 2% Mixed Use 3% O ff i ce 10% Industrial 2% Ot he r 2% Note: All numbers in millions. Data is for FBRT only and does not include any CMO finan
Slide 24: 3Q 2021 Core Originations by Collateral Type
Appendix: 3Q 2021 Core Originations by Collateral Type 24 Note: All numbers in millions. Data is for FBRT only and does not include any CMO financials for 9/30/21. M u l t i f a m i l y 97% Collateral Type Originated (Total Commitment) Hospitality 3%
Slide 25: GAAP Net Income to Distributable Earnings Walk - 3Q21
Appendix: GAAP Net Income to Distributable Earnings Walk - 3Q21 25 Note: All numbers in millions. Data is for FBRT only and does not include any CMO financials for 9/30/21. 1. Adjusted for incentive fees. 2. Adjusted for reversal of provision for credit loss. 3. Adjusted for non - cash CLO amortizat
Slide 26: GAAP Net Income to Distributable Earnings Reconciliation
Appendix: GAAP Net Income to Distributable Earnings Reconciliation Note: All numbers in millions. Data is for FBRT only and does not include any CMO financials for 9/30/21. 1. Adjusted for non - cash CLO amortization acceleration to effectively amortize issuance costs of our CLOs over the expected l
Slide 27: FBRT ROE and Earnings Per Share Calculations – 3Q'21
Appendix: FBRT ROE and Earnings Per Share Calculations – 3Q’21 27 Note: All numbers in millions except per share and share data. 3Q'21 GAAP Net Income $ 38 . 5 Distributable Earnings 40 . 0 Average Equity During the Quarter Common 839 . 2 Preferred A 127 . 6 Preferred C 7 . 0 Preferred D 89 . 7 Tota
Slide 28: FBRT Income Statement
Appendix: FBRT Income Statement 28
Slide 29: FBRT Balance Sheet
Appendix: FBRT Balance Sheet 29
Slide 30: CMO Income Statement
Appendix: CMO Income Statement 30
Slide 31: CMO Balance Sheet
Appendix: CMO Balance Sheet 31
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