Franklin Bsp Realty Trust, Inc. · NYSE:FBRT
Franklin Bsp Realty Trust — Q3 2024 Earnings Presentation
27 slides from Franklin Bsp Realty Trust's earnings presentation, Nov 5, 2024
Slide 1: Third Quarter 2024 Supplemental Information
Third 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 September 30, 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 3Q 2024 Financial Update
FBRT 3Q 2024 Financial Update
Slide 4: Highlights
FBRT 3Q 2024 Financial Update Highlights Earnings • GAAP Net Income of $30.2 million and $0.30 per diluted common share and $0.30 per fully converted share (1) • Distributable Earnings (2) of ($4.0) million or ($0.10) per fully converted share (1). Distributable Earnings includes $36.4 million of lo
Slide 5: Financial Highlights
FBRT 3Q 2024 Financial Update Financial Highlights Income Statement Balance Sheet - Assets (End of Quarter) Net interest income / other income $48.1 Total core portfolio $5,077.5 (1) Operating expenses (18.6) Total real estate securities 210.7 Provision for credit loss 0.3 Cash and restricted cash 3
Slide 6: Earnings & Distributions
FBRT 3Q 2024 Financial Update Earnings & Distributions Distributable Earnings ($M) (1) GAAP Net Income (Loss) ($M) $41.0 $39.3 $35.8 $32.4 $30.0 $30.2 -$4.0 -$3.8 4Q'23 1Q'24 2Q'24 3Q'24 4Q'23 1Q'24 2Q'24 3Q'24 4Q'23 1Q'24 2Q'24 3Q'24 $0.355 $0.355 $0.355 $0.355 Dividend per share $0.39 $0.41 $0.31
Slide 7: Core Net Fundings
FBRT 3Q 2024 Financial Update Core Net Fundings 3Q 2024 ($M) YTD 2024 ($M) 44 ,2 2 4 ,43 Total Commitment of $380M , 0 ,002 , ,04 3 Total Commitment of $1,593M 2 24 oans undin s on undin s on epayments (1 ) 3 24 oans 4 23 oans undin s on undin s on epayments (1 ) 3 24 oans utstandin e oans istin oan
Slide 8: Capitalization Overview
FBRT 3Q 2024 Financial Update Capitalization Overview Average debt cost including financing was 7.9% in 3Q24 vs. 7.8% in 2Q24 Financing Sources (1) Net Leverage (2) Warehouse 4% Repo - Securities 3.00x 5% 2.66x Asset Specific Financings 2.50x 1% Unsecured Debt 2% 2.00x 1.50x 1.00x 0.50x Collateraliz
Slide 9: Financing Detail
FBRT 3Q 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 $402 million Ended S + 1.56% Barclays (Warehouse) $500 million BSPRT 2021-FL7 $611 million Ended S + 1.69% Wells Fargo $400 millio
Slide 10: Liquidity
FBRT 3Q 2024 Financial Update Liquidity Liquidity ($M) 4 , 2 3 34 nrestricted C ein estment inancin Total Cash ailable ailable i uidity (1) n ro ress 1. Represents cash available at 9/30/2024 that we can invest at a market advance rate utilizing our available capacity on financing lines BENEFIT STRE
Slide 11: Portfolio
Portfolio O2
Slide 12: Core Loan Portfolio Composition
Portfolio Core Loan Portfolio Composition Portfolio Overview Portfolio Summary Rate Type • $5.2B total portfolio; 64.0% WA LTV (1) Senior Fixed 99% 5% • 148 senior loans; average UPB (2) of $35M • 9 mezzanine loans; average UPB (2) of $4M Floating Mezzanine • 3 non-performing loans (3) 1% 95% Collat
Slide 13: Core Originations in the Quarter
Portfolio Core Originations in the Quarter Overview By Collateral Industrial 6% • 16 loans; $380 million total commitment ($274 million of Hospitality 11% initial funding / $106 million of future funding) • 4.21% weighted average spread; 9.05% all-in coupon (1) Retail 16% • 0.8% and 0.4% weighted av
Slide 14: Core Portfolio - Watch List Loans (Risk Rating 4&5)
Portfolio Core Portfolio - Watch List Loans (Risk Rating 4&5) (1) Investment Suburban Office Park CBD Office Building 50-Unit Apartment Community Loan Type Floating Rate Senior Loan Floating Rate Senior Loan Floating Rate Senior Loan Investment Date Q4 2019 Q1 2021 Q2 2022 Default Date None None Q2
Slide 15: Foreclosure Real Estate Owned (REO)
Portfolio Foreclosure Real Estate Owned (“REO”) Multi Property Loan Two Property CBD 16-Building Portfolio 471-Unit 426-Unit 224-Unit 397-Unit 76-Unit 80-Unit 128-Unit 122-Unit Single Tenant Office Apartment Apartment Apartment Apartment Apartment Apartment Apartment Apartment Apartment Apartment In
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 Loan Loan Type Origination Date Par Value Amortized Cost Spread Yield (1) Maturity State Collateral Type As-is LTV (2) Loan 1 Senior Loan 4/5/24 124 123 + 3.15% 8.00% 4/9/28 Various Industrial 63.8% Loan 2 Senio
Slide 18: Core Portfolio – Risk Ratings
Appendix Core Portfolio – Risk Ratings Average risk rating was 2.2 for the quarter vs. 2.3 in 2Q24 Risk Ratings 79.1% 19.6% 0.0% 0.0% 1.3% Risk Rating 1 2 3 4 5 # of Loans - 127 27 1 2 Addition - 18 5 - - Reduction - 10 5 4 - +/- vs 2Q24 - 8 - (4) - Principal Balance - 4,083 1,013 1 68 Non-Performin
Slide 19: Earnings Sensitivity
Appendix Earnings Sensitivity Negative earnings correlation to falling rates EPS Sensitivity on Index Rates As of 10/15/24: 1M SOFR: 4.78% As of 9/30/24: 1M SOFR: 4.85% $0.01 $0.00 ($0.02) -1.50% -1.00% -0.50% 9/30/2024 +0.25% ($0.03) ($0.01) Change in Floating Base Rate Indices Note: Reflects earni
Slide 20: Core Portfolio – Fully Extended Maturities
Appendix Core Portfolio – Fully Extended Maturities Fully Extended Maturity by Year $1,668 $1,600 $834 $660 $333 $69 2024 ROY 2025 2026 2027 2028 2029 Note: All numbers in millions. Excludes loans on non-accrual and loans in maturity default at 9/30/2024 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 7% Hospitality 13% Multifamily 45% Office 35% Provision / As % of 2Q24 Write offs 3Q24 UPB (Benefit) Total UPB General CECL Provision $50.3 ($0.7) - $49.6 $5,097 1.0% Specific CECL Provisio
Slide 22: GAAP Net Income to Distributable Earnings Reconciliation
Appendix GAAP Net Income to Distributable Earnings Reconciliation 3Q'24 2Q'24 1Q'24 4Q'23 GAAP Net Income (Loss) 30.2 (3.8) 35.8 30.0 Adjustments: CLO Amortization Acceleration (1) - - - (1.6) (2) 2.5 6.3 (0.3) (0.0) Unrealized (Gain) / Loss (3) (3.4) (2.2) (0.6) 2.6 Subordinated Performance Fee Non
Slide 23: Book Value Per Share & Shares Outstanding
Appendix Book Value Per Share & Shares Outstanding September 30, 2024 December 31, 2023 Stockholders' equity applicable to convertible common stock $ 1,347,455 $ 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 pr
Slide 24: FBRT Income Statement
Appendix FBRT Income Statement Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Income Interest income $ 134,142 $ 137,042 $ 398,253 $ 420,470 Less: Interest expense 89,884 77,973 257,942 224,347 Net interest income 44,258 59,069 140,311 196,123 Revenue from real
Slide 25: FBRT Balance Sheet
Appendix FBRT Balance Sheet September 30, 2024 December 31, 2023 ASSETS Cash and cash equivalents $ 346,153 $ 337,595 Restricted cash 7,720 6,092 Commercial mortgage loans, held for investment, net of allowance for credit losses of $76,640 and $47,175 as of September 30, 5,077,476 4,989,767 2024 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 New York London Boston West Palm Beach 9 West 57th Street 1345 Avenue of the Americas Cannon Place 399 Boylston Street 360 South Rosemary Avenue Suite 4920 Suite 32A 78 Cannon Street Suite 901 Suite 1510 New York New York London Boston West Palm Beach NY 10019 NY 10105 EC4N 6HL MA 02116 FL
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